PROJECT: STRENGTHENING CLIMATE RESILIENCE IN THE … · 2019-08-21 · particular, Zambia’s Electricity Supply Corporation (ZESCO) plans a major investment on the Kafue Gorge Lower

Language: English

Original: English

PROJECT: STRENGTHENING CLIMATE RESILIENCE

IN THE KAFUE BASIN

COUNTRY: ZAMBIA

Project Appraisal Report

Technical Annexes Vol. II of II

August 2013

Appraisal Team

Team Leader: Kisa Mfalila, Environmental Specialist, OSAN.4

Team Members: Léandre Gbéli, Agriculture Economist, OSAN.4

Lawrence Kiggundu, Infrastrucure Specialist, OITC.2

Lewis Bangwe, Agriculture Expert, ZMFO

Natan Jere, Procurement Specialist, SARC

Owusu Agyei, Finan. Mgt Specialist, SARC/ORPF.2

Sector Director: Beileh Abdirahaman

Regional Director: Chiji Ojukwu

Peer Reviewers

Peter Akari, Chief Water Policy Officer, AWF

Walter Odhiambo, Chief Development Policy Economist, ORPC1

Jean-Louis Kromer, Principal Nat. Resources Mngt Officer, OSAN4

Mam Tut Wadda-Senghore, Senior Transport Engineer, OITC.2

Yappy Silungwe, Senior Irrigation Engineer, OSAN.3

Cesar Tique, Agriculture and Rural Development Expert, MZFO

Paxina Chileshe-Toe, Climate Change Specialist, IFAD

2

- 3 -

A. ZAMBIA’S DEVELOPMENT AGENDA AND SECTOR BRIEF

Zambia’s Development Agenda and Donor Support

Low levels of economic diversification

High cost of Financial services

Fiscal deficits

Unemployment

Poorly developed markets and linkages

Poor infrastructure

Limited access to Land

Challenges and Constraints

SNDP

Pillars

Zambia Development

Agenda

Donor’s Support

By Sector By Aid Modality

Macroeconomics

and Governance

(40%)

Infrastructure

(30%)

DBS + SBS

(61%)

Project Support

(39%)

Policy-Institutional Reforms

Public sector

Financial sector

Governance

Private sector

Decentralisation

Public Investments

Infrastructure and ICT

Energy, Transport, Agriculture

Manufacturing, Mining

Tourism

Human Capital

Health and Education and Skills

HIV/AIDS and Gender

Water and Sanitation

Donor Support = 17.4% of Budget (According to 2013 budget and MTEF 2013-2015)

Eco

nom

ic Dev

elop

men

t

Govern

an

ce

Hu

ma

n C

ap

ital

Delivering Inclusive Development

and Social Justice

Sustained Economic Growth and Poverty

Reduction

Broad-based Pro-poor Growth,

Employment Creation Infrastructure and Human Development

Short-Medium

Term

High Cost of Doing Business

High levels of corruption

Low competitiveness

Weak institutional Capacity

Inefficiencies in Public Expenditure Management

Prevalence of Aids

Low quality of human capital

Human Capital

(30%)

- 4 -

ANNEX A : COUNTRY’S DEVELOPMENT AGENDA, SECTOR

BRIEF AND DONOR’S SUPPORT

1. Agriculture: The agriculture sector in Zambia is highly vulnerable to climate change

and variability due to a high reliance on farming for livelihoods, which is predominantly

small-scale and rainfed. The main crops are maize (a staple for Zambian diet), cassava,

sorghum, wheat, rice, groundnuts and high-valued crops such as cotton, sugarcane and

tobacco. Zambia’s recurrent droughts and floods have caused widespread crop failure in the

past, in high rainfall years due to water logging and erosion, and in dry years by delaying the

onset and length of the growing season. During the 2004/05 drought for example, nearly two

thirds of the country received little or no rainfall, affecting even large-scale cotton and

tobacco production. Significant rainfall deficits and/or flash floods during critical periods of

crop growth have also frequently led to decline agriculture productivity, with consequent

impact on food security and nutrition. The rising temperatures are expected to further

increase the outbreak of plant and livestock diseases. Findings from a study carried out by the

University of Zambia and the Center for Environmental Economics and Policy in Africa

suggested that an increase in mean temperatures during November-December and a reduction

in mean precipitation during January-February would impact negatively on the net farm

revenues.

2. Infrastructure: Zambia has a relatively low degree of infrastructure development,

only 19 percent of the population has access to electricity, 78 percent of the roads are

unpaved, and less than 10 percent of the population has access to telecommunication. The

current level of infrastructure development makes it difficult for this land-locked country to

compete with its neighboring countries, and therefore the Government of Zambia has

assigned a high priority to infrastructure and telecommunication development on its Sixth

National Development Plan. Yet both existing as well as planned infrastructure are at risk

from climate change: past floods have caused significant damage: the 2007 floods, for

example, destroyed roads and bridges, forcing the Government to invest US$39 million to

buy earthmoving equipment to clear blocked roads. Extreme weather events such as

rainstorms make travelling dangerous and are likely to do so and also add to road damage.

Rising temperatures are also likely to lead to warping of the country’s important railway

lines. In general, the safety standards under which the infrastructure assets were originally

built no longer conform to expected extremes in weather conditions, and therefore will need

to be revised. It is critical to invest in incentives to strengthen operation and maintenance

(O&M), a major cause of transport infrastructure collapse. Zambia has had good recent

experience with performance based contracts, where payments for road rehabilitation are

deferred for a number of years and paid upon solid evidence of O&M.

3. Natural Resources: Natural resources in Zambia - including wildlife, forests and

fisheries–are already being affected by climate variability combined with unsustainable

practices, which lead to land degradation, loss of soil fertility and wildfires. Drought

conditions and reduced soil moisture stress wildlife populations, forcing them to migrate to

areas where they are more vulnerable to poaching and predation. Conversely, high rainfall

events can flood the preferred habitat of wetland animals such as waterbucks, puku and

lechwe. Changes in rainfall intensity also modify the nutrient levels of rivers and lakes,

critical fisheries habitats on which much of the Zambezi floodplain population depends. The

NAPA reports that under a scenario of low rainfall (500 mm), high temperature (20 o C) and

- 5 -

fewer(50) rainy days, the unique Miombo habitat cover may decrease by 50%. Adaptation

strategies should therefore aim at reducing the rate of deforestation, introduce conservation

farming and provide alternative sources of household energy.

3. Water and Energy: Zambia has a highly diverse and extensive river system along

with water bodies covering as much as 6 percent of its land area. Even though water

availability so far exceeds consumptive use - even during drought years – conditions vary

significantly across the country and some areas (particularly agro-ecological region I)

experience water deficits during dry periods. Secondary impacts from reduced water

availability include Secretariatnutrition and water-borne diseases. During drought events,

tourism can also be affected due to wildlife mortality and reduced water flows to Victoria

Falls. Zambia’s energy strategy envisages a significant new investment in hydropower, to

complement investments made in the 1970s in the Kafue River Basin, such as Ithezi-tezhi

dam (capacity 120 Megawatt) and Kafue Gorge Upper Dam complex (990 MW capacity). In

particular, Zambia’s Electricity Supply Corporation (ZESCO) plans a major investment on

the Kafue Gorge Lower dam (750 MW planned capacity). Climate change modeling

completed under the IFC study (IFC, 2011) indicate that reductions in water supply by early

to mid-century could reduce power generation in the Kafue Basin by 2-22 percent. By end-

century, however, given expected higher river flows, the impact could become positive under

an A2 ECHAM scenario (+11.7%) or continue to be negative under a B1 scenario (-8.8

percent). Overall, the combination of climate change and continued demands on water supply

could reduce the investment’s financial feasibility on Kafue Gorge Lower to levels below 20

percent, the benchmark generally required by investors. Of particular concern are the

financial risks to ZESCO associated with droughts – about US$2.6-5.8 million USD/year, or

0.3-0.7% of the expected total ZESCO revenue for the Kafue Gorge system. Given the

interdependency of water availability to ZESCO and future demand (namely for agriculture

and consumption), the IFC study proposed four key adaptation strategies: (a) implement

agriculture adaptation strategies; (b) support a comprehensive study of water management

and use throughout the Kafue Basin; (c) maintain active partnerships with water users; and

(d) promote public education and outreach on efficient irrigation methods.

4. The Zambian economy is predominantly dependent on exploitation of its natural

resources particularly mining and increasingly forestry. Agriculture is predominantly rainfed

and over half of the areas in south-east are cultivated. Despite favourable economic

development trends, poverty levels in Zambia did not decrease significantly. Overall poverty

levels reduced from 73 percent in 1998 to 61 percent in 2012. The improvement occurred

mainly in urban areas, while rural poverty levels remained around 77%. This underlines the

fact that improvement in macro-economic performance has not yet translated into significant

gains in social and human development indicators. Recent data from the World Food

Program reveals that poor agricultural diversification and market distortions led to an

increase of the undernourished population by 131% since 1990, afflicting now 47.4 percent

of the population. Furthermore, the trend of inequalities in incomes is on the rise. The Gini

coefficient rose from 0.60 in 2006 to 0.65 in 2010. Unemployment levels, especially among

the youth, deteriorated from 22 percent in 2005 to 28 percent in 2010. Over 95 percent of

those employed in 2010 were in low productive inforSecretariat sector.

5. Indicators of Vulnerability: Table 1 highlights some of the vulnerability indicators

of the target districts, compared to the national average. The total population of the target

districts is 1,772,000 (295,000 households), according to the 2010 census. Four of the target

districts – Mumbwa, Itezhi Tezhi, Kafue and Kalomo have growth rates above national

- 6 -

average. The population density of Namwala, Choma, Kafue, Monze, Mazabuka and

Chibombo is also above national average. This puts pressure on natural and economic

resources in these districts. Six of the districts have per capita income below national average.

Between 2006 and 2008, 444,624 households in 21 districts in Zambia were seriously

affected by floods that disrupted livelihood systems. Eight of these districts are in the Kafue

basin and targeted under the project. These contributed 230,223 households (52%) of the total

affected households.

Table 1: Indicators of Vulnerability of Target Districts

Indicator Nam

wala

Mu

mb

wa

Itezhitezh

i

Ch

om

a

Kafu

e

Mo

nze

Mazab

uka

Ch

ibo

mb

o

Kalo

mo

Zam

bia

Population (000) 98.8 210.8 63.0 238.3 219.0 183.8 221.9 290.5 246.2

Growth rate 2.2 3.6 4.8 1.9 4.2 1.6 1.3 2.3 4.4 2.8

Population density 23.3 10.7 4.3 34.0 24.2 39.5 37.0 22.6 17.2 17.4

HDI (2007) 0.519 0.509 0.503 0.502 0.485 0.485 0.479 0.435 0.409 0.491

Income index 0.177 0.202 0.177 0.247 0.215 0.199 0.198 0.137 0.138 0.208

Per capita income (USD)

288.6 334.9 288.6 438.8 362.6 330.3 328.1 227.7 228.0 347.4

HIV Prevalence 7.5 11.6 7.5 19.2 22.4 19.2 22.5 11.6 18.6 14.4

Stunting rate for under 5 children

30.4 8.1 31.9 50.4 39.8 41.0 55.4 5.7 17.5 49.8

Flood affected population (2008)

28,813 - 14,504 36,170 27,934 31,627 39,009 18,802 33,364 444,624

Sources: Zambia 2007 Human Development Report, Zambia 2010 Census of Population and Housing, and Flood Recovery Action

Plan, 2008

6. Sectoral policies: Agriculture constitutes about 19 percent of Zambia’s Gross

Domestic Product (GDP), and provides approximately 65 percent of employment. Zambia

has approximately 233,850 square kilometres of agricultural land, or 31.5 percent of the total

land area. Of that, 4.5 percent is classified as arable land. The country has over 105 billion

cubic meters of renewable water resources available, of which 2 percent is withdrawn

annually. Of the total water withdrawn each year, around 76 percent is used in the

agricultural sector. Although the agriculture sector is heavily supported by government

through maize subsidies, critical areas of investment have been neglected for several years.

Without effective extension services and access to inputs such as fertilizers and seed stock,

sSecretariatl-scale farmers have fallen back onto subsistence farming, often struggling to

meet their food needs. Investments in irrigation, livestock, marketing, processing, research

and extension have lagged behind. This neglect led to the spread of cattle diseases and a

decline in crop diversification. This has put pressure on natural resources as people have

resorted to unsustainable methods of harvesting forests and wildlife to supplement their

failing food systems. Given this scenario, the Government’s overarching goal, as indicated in

Vision 2030, is to become a “prosperous middle-income country by the year 2030”, with a

competitive and outward oriented economy, where hunger is eradicated and poverty is

reduced to minimal levels (GRZ, 2006). Towards this vision, the Fifth National Development

Plan (FNDP) was implemented between 2006 and 2010. It generated macroeconomic

stability, economic growth, infrastructure development, maternal and infant mortality rates

- 7 -

reduction and increased education enrolment. The Sixth National Development Plan (SNDP:

2011 to 2015) is aimed at consolidating the FNDP gains. SNDP (2011-2015) seeks to sustain

economic growth, poverty reduction, creation of employment, policies, strategies and

programmes to generate broad-based pro-poor growth, employment and human development.

SNDP’s objective is to “accelerate infrastructure development, economic growth and

diversification, promote rural investments, accelerate poverty reduction and enhance human

development”. It identifies agriculture (crops, livestock, forestry and fisheries), mining,

tourism, manufacturing and commerce and trade as priority growth sectors.

7. SNDP (2011-2015) prioritizes agriculture as the key sector in achieving sustainable

economic growth and in reducing poverty in Zambia due to the country’s rich endowment in

natural resources (especially arable land) and dependency of 70 percent of the rural

population on agricultural related activities and livelihoods. The National Agriculture

Investment Plan (NAIP) under the SNDP (2011-2015) has been developed to, (i) diversify

and attain national and household food security, (ii) promote soil management for sustainable

agricultural production and growth, (iii) promote the development of competitive, efficient

and transparent public and private sector driven marketing system for agriculture

commodities and inputs, (iv) increase quality livestock numbers, (v) expand both domestic

and international market access for livestock, (vi) promote fish trade and marketing, and (vii)

promote sustainable exploitation of fisheries resources and increase fish production.

8. Natural Resources sector: Forest cover in Zambia is approximately 50 million

hectares, consisting primarily of miombo woodland (approximately 60% of the land), and

mopane woodlands, evergreen and deciduous forests, some of which provide habitat to

wildlife. Deforestation, already occurring at estimated annual rates of 250,000 – 300,000

hectares, is attributable to i) charcoal and wood fuel use; ii) timber production; and iii)

unsustainable agricultural methods and other land use practices, particularly shifting

cultivation. Climate change will affect the growth, composition and regeneration capacity of

forests, thereby resulting in reduced biodiversity and ability to deliver important forest goods

and services. Vegetation types and species composition will also be affected with the

emergence of invasive species.

9. Wildlife resources play a very important role in the national economy as it supports

tourism which, in 2008 contributed 3% to the country’s GDP and is considered as a major

potential growth engine for years to come. The open and closed grasslands and forests

constitute the natural habitats of endemic species and other large wild animals including

lions, buffaloes and elephants. Water animals like hippo and crocodile and a variety of bird

species also inhabit the rivers, lakes and other wetland ecosystems. Climate change will

reduce soil moisture content, which in turn will affect fodder productivity and consequently

affect wildlife, leading to migration and wildlife-human conflicts. Excessive rainfall will lead

to inundation of swamps and other wetlands, thus affecting the habitat of important wetland

species such as the puku, lechwe, waterbuck, etc.

10. Climate Change: Interventions in the environment sector are articulated in the

National Policy on Environment (NPE) and underpinned by other Multilateral Environment

Agreements (MEAs) such as the Convention on Biological Diversity (CBD), the Convention

to Combat Desertification and the Ramsar Convention. In all sectors, policies are guided both

by domestic development priorities and by Zambia’s obligations to international and regional

agreements. Zambia ratified the UNFCCC in 1993, and under this convention is obliged to

provide national communications. The first such communication was produced in 2004 while

- 8 -

the second is not yet in the public domain, but has been underway since 2008 (through a

UNDP/GEF funded project). As a then least developed country (LDC), Zambia also

submitted a National Adaptation Plan of Action (NAPA) to the UNFCCC in 2007. The

NAPA prioritised 10 adaptation projects, of which one is being funded and implemented (see

Section 4.3; GRZ, 2007). Zambia has also ratified the Convention on Biodiversity, the

Convention to Combat Desertification and the Non-Legally Binding Instrument on all types

of forest, conventions that have synergies with efforts to address climate change. It is also

part of the Common Market for Eastern and Southern Africa (COMESA) and the Southern

African Development Community (SADC), and participation in these regional institutions

includes commitments to sustainable utilisation of natural resources and protection of the

environment, including with reference to climate change. A National Adaptation Programme

of Action was formulated in 2007 to guide interventions.

11. Zambia’s climate is highly variable and over the last few decades has experienced

series of climatic extremes, e.g. droughts, seasonal floods and flash floods, extreme

temperatures and dry spells, many of these with increased frequency, intensity and

magnitude. Their impacts on the country are evident in climate-induced changes to physical

and biological systems which increasingly exert considerable stress on the country’s

vulnerable sectors, especially agriculture. The adverse impact climate change on food and

water security, water quality, energy and the sustainable livelihoods of rural communities

coupled with poverty also limit economic development.

12. In 2012, Zambia developed a National Climate Change Response Strategy (NCCRS)

that recognizes the negative impacts of climate change on water resources, agriculture,

livestock, forestry and fisheries, tourism and wildlife resources. It also affects infrastructure

and housing, provision of energy and on the health status of citizens. A 2011 study on the

economic impacts of climate change in Zambia estimated GDP loss through loss of

agricultural productivity and its associated effects on poverty levels, the potential impact of

an energy crisis related to power generation, the higher costs of treating climate related

diseases such as Secretariataria and Secretariatnutrition, and the loss of natural environments

which provide critical services to urban, peri-urban, and rural communities. Basically, GDP

loss over a 10-year period was estimated at about USD 5 Billion, with the agricultural sector

shouldering about half of this loss. Natural resources, energy and health are also expected to

be severely hit. A 2009 Water Sector study funded by the World Bank concluded that

extreme weather events such as floods, droughts and heavy rainfall have cost Zambia some

0.4% of annual economic growth. Without action, rainfall variability alone could lead to

losses of 0.9% of GDP growth over the next decade, keeping an additional 300,000 Zambians

below the poverty line.

13. The Vision of the NCCRS is a climate-resilient, low emission prosperous economy

by 2030 that will have significantly increased living standards of the population and

reduced its vulnerability to the impacts of climate change and variability. The Vision

specifically recognizes the fact that only rapid and sustained development, focusing on

poverty alleviation, can generate the required financial, technological and human resources to

deal with climate change effectively. It is consistent with Zambia’s current development

policies and strategies, including the Sixth National Development Plan (SNDP) and the

National Long Term Vision 2030 (NLTV) which aims to make Zambia “a prosperous

middle-income country by the year 2030”.

- 9 -

14. Zambia is also working with UNEP, UNDP and FAO to develop a national program

to reduce GHG emissions through forest activities. A national plan for REDD+ in Zambia has

been under development since 2010 and is expected to be publically released later in 2013. In

this context, progress has been made on technical issues such as monitoring, reporting and

verification of emission reductions within the Department of Forestry. REDD+ activities

build on and support the Zambian National Forest Monitoring System which aims to be a

decentralised system with ten provincial forest monitoring laboratories with appropriate

technology and technical expertise. Training efforts engaged Brazil’s National Institute for

Space Research (INPE) to facilitate the development of a land cover classification system

that learns from that of the Terra Amazon Platform. A country-wide Integrated Land Use

Assessment is in its second phase with more than 4000 sampling sites and the UN-REDD

activities operate in close collaboration with this FAO and Finland supported initiative (UN-

REDD, 2012).

15. The Ministry of Lands, Natural Resources and Environmental Protection (MLNREP)

is the lead technical focal point on natural resources, environment and climate change work.

The MLNREP also provides a secretariat for the Designated National Authority for the Clean

Development Mechanism (CDM) and is responsible for Zambia’s National Communications

to the UNFCCC, although ZEMA is conducting the analysis. In addition to the MLNREP, the

Ministry of Finance (MoF), and the Disaster Management Mitigation Unit (DMMU) in the

Office of the Vice President, have assumed central roles in Zambia’s climate change

response. Notably, the Pilot Programme for Climate Resilience (PPCR) is managed within

the MoFNP and not in the MTENR.

16. The DMMU reports to a committee of permanent secretaries and passes on

recommendations to cabinet for approval. It also has structures at provincial level, but at

district level works through existing district councils. There is clear recognition of the link

between DRR and adaptation to climate change. The Disaster Management Act of 2010 also

has key links with Zambia’s climate change response (GRZ, 2010c). The Act creates the

Disaster Management and Mitigation Unit (DMMU) within the Office of the Vice President.

It seeks to address all disasters, including those relating to climate change. The Act also lays

out Disaster Management Plans. Zambia’s medium term goal is to mainstream climate

change in most vulnerable sectors of the economy by 2015 and into all by 2030

17. Country Dialogue and Donor Support: GRZ engages in dialogue with Cooperating

Partners (CPs) under the guidance of the aid effectiveness principles embodied in the Paris

Declaration (PD) and Accra Agenda for Action (AAA) as well as Millennium Development

Goal 8, “Develop a Global Partnership for Development.” All the efforts pertaining to donor

coordination ultimately aim to enhance the GRZ’s leadership and ownership of donor funds

with the end goal of improving overall service delivery.. To facilitate this dialogue, the CPs

have signed a Joint Assistance Strategy for Zambia (JASZ II) that outlines the necessary

actions needed to improve on mutual accountability and the aid effectiveness agenda. The

JASZ II emphasizes managing and monitoring Official Development Aid in ways that focus

on desired results rather than just outputs. In recognition of the significance of non-traditional

donors, the GRZ has continued to strengthen its cooperation with non-OECD donors such as

Brazil, China, Egypt, India, Russia, Saudi Arabia and Turkey. JASZ was signed by 10 major

donors, founded on the principles of strengthening local ownership of the development

process and enhancing aid effectiveness and mutual accountability in the spirit of

international agreements - Monterrey Consensus on Financing for Development (2002), the

Rome Declaration on Aid Harmonization (2003), the Marrakesh Agreement on Managing

- 10 -

Results for Development (2004), and the Paris Declaration on Aid Effectiveness (2005).

JASZ is a unique document in the history of aid cooperation in Zambia and represents DPs

collective response to the country’s Vision 2030, the National Development Plans and NAPS,

which constitute the national framework for reducing poverty and promoting sustainable

development. The Bank has remained an active participant in the Cooperating Partners

Group, Agriculture, Transport, Water and Sanitation, Governance, Social sector and

Environment and Natural Resources.

18. The Bank’s development assistance to Zambia is within the framework of its 2011 -

2015 Country Strategy Paper (CSP), approved by the Board of Directors in December 2010.

In 2012, the Bank undertook Mid-Term Review (MTR) of this strategy. This allowed the

alignment of the priority areas of the Bank’s strategy with the priorities of the new Zambian

Government and to incorporate issues of inclusive and green growth to ensure that the Bank’s

collaboration with the GRZ follows the new Long Term Strategy (LTS) of the Bank. This

also enabled the Bank to harmonize the CSP with key Government policy and development

frameworks such National Vision 2030, the Sixth National Development Plan (SNDP) 2011-

2015 and Medium Term Expenditure Frameworks (MTEF). The CSP (2011-2015) spans

through two ADF cycles – ADF-12 and 13. Under ADF-12, the Performance-Based

Allocation (PBA) for the two initial years (2011 and 2012) was UA 70.07 million. Zambia’s

ADF-12 allocation for 2013 is UA 37.95 million, bringing total allocation of ADF 12th

replenishment cycle for Zambia to UA 108.02 million. This represents a net decrease of UA

10.88 million compared to the UA 118.9 million of ADF-11. This trend reflects the country’s

continuous positive GDP growth, which partly has a decreasing effect on the PBA formula,

and offsets the positive contributions to the formula of the improved portfolio performance

and Country Policy and Institutional Assessment (CPIA). The Bank’s Country Office used

this meager ADF allocation to leverage other resources. During the first CSP implementation

period, the total committed resources amounted to UA 128 million, of which UA 62 million

were from ADF-12, and UA 66.4 million from other internal sources, achieving a leverage

rate of 107%.

- 11 -

B. BACKUP OF THE KEY ARGUMENTS OF THE REPORT

- 12 -

ANNEX B1 : LESSONS LEARNED

Project Date &

Amount

Intervention

Areas Rating1 Lessons Learned2

Zambia

Agriculture

Sector

Investment

Program

(ASIP)

April 1999 to

June 2008

Amount:

UA 24,2

million

Agricultural

development ***

The PCR of ASIP informed provided several conclusions and lessons:

i) infrastructure development remains very relevant to Zambia’s development;

ii) the role of communities in programme identification, monitoring and implementation should be built in the

programme design to ensure ownership;

iii) Agriculture projects should be fully prepared to detailed design before approval to ensure their readiness for

implementation;

iv) in a programme like ASIP, clear roles, inter-relationship and accountabilities of all institution involved hould be

established;

v) local contractors should be thoroughly scrutinized for their financial and technical capability to ensure their ability

to adequately complete contracted work in a timely manner;

vi) a strong Monitoring and Evaluation (M&E) system coupled with quality baseline data is imperative for better

monitoring of programme implementation, better performance evaluation and impact assessment;

vii) the inability to develop and implement a business management plan for various revolving funds established and

Livestock Market Centers which will limit the sustainability of outcomes;

viii) the risk that the level of activities and interaction between extension staff and farmers declines if there is no

increase in public resource flows to the districts;

ix) operating and maintenance cost is required for equipment and civil works established;

x) training in the development and implementation of Business Plans for Revolving Funds at Livestock Market

Livestock

development

***

Infrastructure

development

**

Overall ***

1 **** (75-100% Benchmarks Met); *** (50-75 % Benchmarks Met); ** (25-50% Benchmarks Met); * (0-25% Benchmarks Met) from PCR or other available rating.

2 Conclusions from the Project Completion Report (PCR).

- 13 -

Project Date &

Amount

Intervention

Areas Rating1 Lessons Learned2

Centers and Artificial Insemination Centre is required.

xi) beneficiaries should be encouraged to contribute to the maintenance of civil works facilities through maintenance

committees;

xii) Proper implementation arrangements are important for timely execution of project activities - the implementation

of the project improved only after a PMU was set up, but even then, the Programme Manager did not have adequate

technical support.

Most of the issues raised above were approached during the preparation and appraisal approach and are reflected in

the design of SCRIKA. Additional fine tuning in the design and description of the operation is expected to be

provided through the PPF to be conducted prior to the onset of the intervention.

SADC

REGION:

Strengthening

Institutions for

risk

management

of

Trans

boundary

animal

diseases

(TADs)3

UA 13.71

million

Networking and

Information

Sharing

***

The Multinational SADC “Strengthening Institutions for the Risk Management of Trans-boundary Animal Diseases

(TADs) in the SADC region is an ongoing intervention with the objective of enhancing livestock as a tradable

commodity through assured animal health. The project covers five countries of the SADC region, namely: Angola,

Secretariatawi, Mozambique, Tanzania and Zambia. The project has made so far great contributions in terms of

strengthening the capacity of public institutions in charge of animal health in coping with the management of livestock

trans-boundary diseases in the five participating countries. These contributions were made through large investments in

the development of physical and human capacities in the laboratories, field staff and the surveillance and diagnostics

capacity of the public health services. It also contributed to advancing the knowledge on TADs and their management.

The main lesson learned from the ongoing implementation are:

i) Collaboration among participating countries is key to successful delivery of outputs and outcome and to

amplifying the effects of the project;

ii) care should be taken to ensure that all countries are implementing the project at the a similar speed as countries may

have different capacities for implementation. If one country lags behind it impedes project overall performance;

iii) Implementation Units must be empowered to fully play its role and not be hindered by bureaucratic processes.

Capacity

Building and

Institutional

Strengthening at

the regional and

national levels

in the area of

laboratories,

epidemiological

and

socioeconomic

domains

***

Overall ***

3 Ratings and lessons learned are derived from last supervision and the project is still ongoing until December 2013.

- 14 -

ANNEX B2 : DETAILED PROJECT COSTS

TABLE 1. CHOMA: INTEGRATED COMMUNITY-BASED ADAPATION

DESIGNATION Unit Unit Cost

(ZMW '000)

Totals Including Contingencies (US$ '000)

2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES

1. CONTRACTUAL SERVICES

a. FARM-LEVEL SYSTEMS SUPPORT

Conservation Agricultural Training lumpsum 1.027,099 3,36 3,50 3,64 3,80 3,95 18,25

Conservation Agricultural Inputs lumpsum 1.027,099 3,36 3,50 3,64 3,80 3,95 18,25

Soil Moinsture & Fertility Management lumpsum 1.027,099 3,36 3,50 3,64 3,80 3,95 18,25

Seeds for Drought Resistant Crops lumpsum 1.027,099 2,80 2,92 3,04 3,17 3,30 15,22

Seeds for Flood Resistant Crops lumpsum 1.027,099 2,80 2,92 3,04 3,17 3,30 15,22

Seedlings for Fruit Orchards lumpsum 1.027,099 2,80 2,92 3,04 3,17 3,30 15,22

Livestock for Diversifatcion Farming lumpsum 1.027,099 4,20 4,37 4,56 4,75 4,94 22,82

Fisheries for Diversifatcion Farming lumpsum 1.027,099 4,20 4,37 4,56 4,75 4,94 22,82

Erosion Control Activities lumpsum 1.027,099 3,36 3,50 3,64 3,80 3,95 18,25

Improved Grazing Activities lumpsum 1.027,099 3,36 3,50 3,64 3,80 3,95 18,25

Value Chain Investments lumpsum 1.027,099 6,72 6,99 7,29 7,60 7,91 36,51

Subtotal

40,34 41,97 43,73 45,57 47,45 219,05

b. MANAGEMENT OF MATCHING GRANT

Funds Manager - Matching Grants

lumpsum/y 3.929,399 12,55 12,55 12,55 12,55 12,55 62,73

Subtotal

52,89 54,51 56,27 58,12 59,99 281,78

B. MISCELLANEOUS

1. MICRO-PROJECTS

a. COMMUNITY-LEVEL INFRASTRUCTURE

Floods Control & Diversion Structures lumpsum 4.108,395 30,86 30,86 30,86 30,86 30,86 154,31

SSecretariatl-Scale Irrigation Schemes lumpsum 4.108,395 30,86 30,86 30,86 30,86 30,86 154,31

Water Reservoirs & SSecretariatl Dams lumpsum 4.108,395 30,86 30,86 30,86 30,86 30,86 154,31

De-silting & Restocking of Ponds & Water Bodies lumpsum 4.108,395 15,43 15,43 15,43 15,43 15,43 77,16

Improved Wells & Boreholes lumpsum 4.108,395 15,43 15,43 15,43 15,43 15,43 77,16

Community Forest Plantations /a lumpsum 4.108,395 15,43 15,43 15,43 15,43 15,43 77,16

Wildlife Estates & Communal Game Ranches lumpsum 4.108,395 15,43 15,43 15,43 15,43 15,43 77,16

Subtotal

154,31 154,31 154,31 154,31 154,31 771,57

2. MATCHING GRANTS

a. CLIMATE CHANGE ADAPTATION INVESTMENTS

Processing Plants for Crops lumpsum 2.532,979 19,03 19,03 19,03 19,03 19,03 95,14

Livestock Production lumpsum 2.532,979 12,68 12,68 12,68 12,68 12,68 63,41

Fisheries lumpsum 2.532,979 12,68 12,68 12,68 12,68 12,68 63,41

Forest Products lumpsum 2.532,979 12,68 12,68 12,68 12,68 12,68 63,41

Outgrower Scheme (Crops & Livestock) lumpsum 2.532,979 12,68 12,68 12,68 12,68 12,68 63,41

Game Ranches lumpsum 2.532,979 12,68 12,68 12,68 12,68 12,68 63,41

Wildlife Estates lumpsum 2.532,979 12,68 12,68 12,68 12,68 12,68 63,41

Subtotal

95,12 95,12 95,12 95,12 95,12 475,60

Subtotal

249,43 249,43 249,43 249,43 249,43 1 247,17

Total

302,32 303,95 305,71 307,55 309,43 1 528,95

\a Forest Plantations & Reforestation

TABLE 2. CHOMA: SUPPORT TO PARTICIPATORY ADAPTATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES


a. SUPPORT TO LOCAL COMMUNITIES

Mobilization, Training & Facilitation lumpsum 1.823,796 23,87 24,83 25,88 26,97 28,08 129,63

Risk & Vulnerability Assessment lumpsum 1.823,796 23,87 24,83 25,88 26,97 28,08 129,63

- 15 -


(ZMW '000)


2014 2015 2016 2017 2018 Total

Integration of Climate Risk Mgt in Local Planning

lumpsum 1.823,796 23,87 24,83 25,88 26,97 28,08 129,63

Total

71,62 74,50 77,63 80,91 84,23 388,89

TABLE 3. CHOMA: PROJECT COORDINATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. GOODS

1. VEHICLES

Double-Cabin Vehicle 4x4 for Province unit 270 52,67 - - - - 52,67

Motorcycles (02) unit 40 15,63 - - - - 15,63

Subtotal

68,31 - - - - 68,31

2. EQUIPMENT

Desktop PC at the Choma Province unit 3,45 0,67 - - - - 0,67

Desktop PC at the Choma District unit 3,45 0,67 - - - - 0,67

Multi-Function Printers unit 2 0,78 - - - - 0,78

Subtotal

2,13 - - - - 2,13

Total Investment Costs

70,44 - - - - 70,44

II. Recurrent Costs

A. DAILY SUBSISTENCE ALLOWANCES

Chief Planner at Choma Province pers/day 0,8 3,13 3,27 3,42 3,57 3,73 17,12

District Planner at Choma District pers/day 0,8 3,13 3,27 3,42 3,57 3,73 17,12

Drivers pers/day 0,3 1,17 1,23 1,28 1,34 1,40 6,42

Subtotal

7,44 7,76 8,11 8,49 8,86 40,66

B. OPERATION & MAINTENANCE

1. VEHICLES

Double-Cabine Vehicle at Province km 0,003 12,90 15,97 16,50 17,05 17,61 80,02

Motorcycles (02) 2 km 0,001/km 3,61 5,58 5,77 5,96 6,15 27,07

Subtotal

16,50 21,55 22,27 23,01 23,76 107,09

C. GENERAL OPERATING CHARGES

Office Supplies lumps/y 2,1 0,41 0,43 0,45 0,47 0,48 2,24

Total Recurrent Costs

24,35 29,74 30,83 31,96 33,11 149,99

Total

94,79 29,74 30,83 31,96 33,11 220,42

TABLE 4. KALOMO: INTEGRATED COMMUNITY-BASED ADAPATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES














Subtotal

40,34 41,97 43,73 45,57 47,45 219,05


- 16 -


(ZMW '000)


2014 2015 2016 2017 2018 Total

Funds Manager - Matching Grants lumps/y 3.929,399 12,55 12,55 12,55 12,55 12,55 62,73

Subtotal

52,89 54,51 56,27 58,12 59,99 281,78

B. MISCELLANEOUS

1. MICRO-PROJECTS









Subtotal

154,31 154,31 154,31

154,31 154,31 771,57

2. MATCHING GRANTS









Subtotal

95,12 95,12 95,12 95,12 95,12 475,60

Subtotal

249,4 249,43 249,43 249,4 249,43 1 247,17

Total

302,3 303,95 305,71 307,6 309,43 1 528,95


TABLE 5. KALOMO: SUPPORT TO PARTICIPATORY ADAPTATIO


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES





Integration of Climate Risk Mgt in Local Planning lumpsum 1.823,796 23,87 24,83 25,88 26,97 28,08 129,63

Total

71,62 74,50 77,63 80,91 84,23 388,89

TABLE 6. KALOMO: CLIMATE PROOFING OF ROADS INFRASTRUCTURE


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. WORKS

1. FARM TO MARKET ACCESS ROADS

Kalomo to Dundumwezi km 301,868 - 1 730,16 3 545,42 - - 5 275,57

Total

- 1 730,16 3 545,42 - - 5 275,57

- 17 -

TABLE 7. KALOMO: PROJECT COORDINATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. GOODS

1. VEHICLES


2. EQUIPMENT

Desktop PC at the Kalomo District unit 3,45 0,67 - - - - 0,67


Subtotal

1,06 - - - - 1,06


16,70 - - - - 16,70

II. Recurrent Costs




1. VEHICLES



Office Supplies lumps/y 2,1 0,41 0,43 0,45 0,47 0,48 2,24 Total Recurrent Costs

7,15 9,28 9,63 10,00 10,37 46,43

Total

23,85 9,28 9,63 10,00 10,37 63,12

TABLE 8. NAMWALA: INTEGRATED COMMUNITY-BASED ADAPATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES














Subtotal

40,34 41,97 43,73 45,57 47,45 219,05



Subtotal

52,89 54,51 56,27 58,12 59,99 281,78

B. MISCELLANEOUS

1. MICRO-PROJECTS









Subtotal

154,31 154,31

154,31

154,31

154,31 771,57

2. MATCHING GRANTS







- 18 -


(ZMW '000) Totals Including Contingencies (US$ '000)

2014 2015 2016 2017 2018 Total



Subtotal

95,12 95,12 95,12 95,12 95,12 475,60

Subtotal

249,4 249,43 249,4 249,4 249,4 1 247,17

Total

302,3 303,95 305,7 307,6 309,4 1 528,95


TABLE 9. NAMWALA: SUPPORT TO PARTICIPATORY ADAPTATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES





Integration of Climate Risk Mgt in Local Planning lumpsum 1.823,796 23,87 24,83 25,88 26,97 28,08 129,63

Total

71,62 74,50 77,63 80,91 84,23 388,89

TABLE 10. NAMWALA: CLIMATE PROOFING OF ROADS INFRASTRUCTURE



2014 2015 2016 2017 2018 Total

I. Investment Costs

A. WORKS


Namwala to Itezhi-Tezhi D-180 km 301,868 - 2 055,63 - - - 2 055,63

Total

- 2 055,63 - - - 2 055,63

TABLE 11. NAMWALA: PROJECT COORDINATION



2014 2015 2016 2017 2018 Total

I. Investment Costs

A. GOODS

1. VEHICLES

Double-Cabin Vehicle 4x4 for the District unit 270 52,67 - - - - 52,67


Subtotal

68,31 - - - - 68,31

2. EQUIPMENT

Desktop PC at the Namwala District unit 3,45 0,67 - - - - 0,67


Subtotal

1,06 - - - - 1,06


69,37 - - - - 69,37 II. Recurrent Costs



Driver pers/day 0,3 1,17 1,23 1,28 1,34 1,40 6,42

Subtotal

4,31 4,49 4,70 4,91 5,13 23,54


1. VEHICLES



Subtotal

16,50 21,55 22,27 23,01 23,76 107,09


Office Supplies lumpsum/y 2,1 0,41 0,43 0,45 0,47 0,48 2,24


21,22 26,48 27,41 28,38 29,37 132,87

Total

90,59 26,48 27,41 28,38 29,37 202,24

- 19 -

TABLE 12. MONZE: INTEGRATED COMMUNITY-BASED ADAPATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES














Subtotal

40,34 41,97 43,73 45,57 47,45 219,05



Subtotal

52,89 54,51 56,27 58,12 59,99 281,78

B. MISCELLANEOUS

1. MICRO-PROJECTS









Subtotal

154,31 154,31

154,31

154,31 154,31 771,57

2. MATCHING GRANTS









Subtotal

95,12 95,12 95,12 95,12 95,12 475,60

Subtotal

249,43 249,43 249,4 249,4 249,43 1 247,17

Total

302,32 303,95 305,7 307,6 309,43 1 528,95


TABLE 13. MONZE: SUPPORT TO PARTICIPATORY ADAPTATION



2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES





Integration of CRMin Local Planning lumpsum 1.823,796 23,87 24,83 25,88 26,97 28,08 129,63

Total

71,62 74,50 77,63 80,91 84,23 388,89

- 20 -

TABLE 14. MONZE: PROJECT COORDINATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. GOODS

1. VEHICLES

Double-Cabin Vehicle 4x4 for the District unit 270 52,67 - - - - 52,67


Subtotal

68,31 - - - - 68,31

2. EQUIPMENT

Desktop PC at Monze District unit 3,45 0,67 - - - - 0,67


Subtotal

1,06 - - - - 1,06


69,37 - - - - 69,37

II. Recurrent Costs


District Planner at Monze District pers/d 0,8 3,13 3,27 3,42 3,57 3,73 17,12

Driver pers/d 0,3 1,17 1,23 1,28 1,34 1,40 6,42

Subtotal

4,31 4,49 4,70 4,91 5,13 23,54


1. VEHICLES



Subtotal

16,50 21,55 22,27 23,01 23,76 107,09



21,22 26,48 27,41 28,38 29,37 132,87

Total

90,59 26,48 27,41 28,38 29,37 202,24

TABLE 15. MAZABUKA: INTEGRATED COMMUNITY-BASED ADAPATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES














Subtotal

40,34 41,97 43,73 45,57 47,45 219,05



lumpsum/y 3.929,399 12,55 12,55 12,55 12,55 12,55 62,73

Subtotal

52,89 54,51 56,27 58,12 59,99 281,78

B. MISCELLANEOUS

1. MICRO-PROJECTS









Subtotal

154,31 154,31

154,31

154,31

154,31 771,57

2. MATCHING GRANTS

- 21 -



2014 2015 2016 2017 2018 Total









Subtotal

95,12 95,12 95,12 95,12 95,12 475,60

Subtotal

249,43 249,43 249,4 249,4 249,4 1 247,17

Total

302,32 303,95 305,7 307,6 309,4 1 528,95


TABLE 16. MAZABUKA: MAZABUKA: SUPPORT TO PARTICIPATORY ADAPTATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES





Integration of CRM in Local Planning lumpsum 1.823,796 23,87 24,83 25,88 26,97 28,08 129,63

Total

71,62 74,50 77,63 80,91 84,23 388,89

TABLE 17. MAZABUKA: PROJECT COORDINATION



2014 2015 2016 2017 2018 Total

I. Investment Costs

A. GOODS

1. VEHICLES /a


2. EQUIPMENT

Desktop PC at the Mazabuka District unit 3,45 0,67 - - - - 0,67


Subtotal

1,06 - - - - 1,06




District Planner at Mazabuka District pers/day 0,8 3,13 3,27 3,42 3,57 3,73 17,12


1. VEHICLES



Office Supplies lumps/y 2,1 0,41 0,43 0,45 0,47 0,48 2,24


7,15 9,28 9,63 10,00 10,37 46,43

Total

23,85 9,28 9,63 10,00 10,37 63,12

\a Will share a vehicle with Monze District

TABLE 18. ITEZHI-TEZHI: INTEGRATED COMMUNITY-BASED ADAPATION



2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES






- 22 -



2014 2015 2016 2017 2018 Total









Subtotal

40,34 41,97 43,73 45,57 47,45 219,05



lumpsum/y 3.929,399 12,55 12,55 12,55 12,55 12,55 62,73

Subtotal

52,89 54,51 56,27 58,12 59,99 281,78

B. MISCELLANEOUS

1. MICRO-PROJECTS









Subtotal

154,31 154,31

154,31

154,31

154,31 771,57

2. MATCHING GRANTS









Subtotal

95,12 95,12 95,12 95,12 95,12 475,60

Subtotal

249,43 249,43 249,4 249,4 249,4 1 247,17

Total

302,32 303,95 305,7 307,6 309,4 1 528,95


TABLE 19. ITEZHI-TEZHI: SUPPORT TO PARTICIPATORY ADAPTATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES






Total

71,62 74,50 77,63 80,91 84,23 388,89

TABLE 20. ITEZHI-TEZHI: CLIMATE PROOFING OF ROADS INFRASTRUCTURE


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. WORKS


Namwala to Itezhi-Tezhi D-180 km 301,868 - 1 507,46 - - - 1 507,46

Itezhi-Tezhi to Dundumwezi thru Ngoma & Nashila km 301,868 - 3 768,66 4 892,67 - - 8 661,33

Total

- 5 276,12 4 892,67 - - 10 168,80

- 23 -

TABLE 21. ITEZHI-TEZHI: PROJECT COORDINATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. GOODS

1. VEHICLES

Double-Cabin Vehicle 4x4 for District unit 270 52,67 - - - - 52,67


Subtotal

68,31 - - - - 68,31

2. EQUIPMENT

Desktop PC at the Itezhi-Tezhi District /a unit 3,45 0,67 - - - - 0,67


Subtotal

1,46 - - - - 1,46


69,76 - - - - 69,76

II. Recurrent Costs


District Planner at Itezhi-Tezhi District pers/day 0,8 3,13 3,27 3,42 3,57 3,73 17,12

Driver pers/day 0,3 1,17 1,23 1,28 1,34 1,40 6,42

Subtotal

4,31 4,49 4,70 4,91 5,13 23,54


1. VEHICLES

Double-Cabine Vehicle at District km 0,003 12,90 15,97 16,50 17,05 17,61 80,02


Subtotal

16,50 21,55 22,27 23,01 23,76 107,09


Office Supplies lumpsum/y 2,1 0,41 0,43 0,45 0,47 0,48 2,24 Total Recurrent Costs

21,22 26,48 27,41 28,38 29,37 132,87

Total

90,98 26,48 27,41 28,38 29,37 202,63

\a A remote project area with poor roads infrastructure

TABLE 22. CHIBOMBO: INTEGRATED COMMUNITY-BASED ADAPATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES














Subtotal

40,34 41,97 43,73 45,57 47,45 219,05



Subtotal

52,89 54,51 56,27 58,12 59,99 281,78

B. MISCELLANEOUS

1. MICRO-PROJECTS









- 24 -



2014 2015 2016 2017 2018 Total

Subtotal

154,31 154,31 154,3 154,3 154,31 771,57

2. MATCHING GRANTS

a. CC ADAPTATION INVESTMENTS





Outgrower Scheme (Crops & Livstk) lumpsum 2.532,979 12,68 12,68 12,68 12,68 12,68 63,41



Subtotal

95,12 95,12 95,12 95,12 95,12 475,60

Subtotal

249,43 249,43 249,4 249,4 249,43 1 247,17

Total

302,32 303,95 305,7 307,6 309,43 1 528,95


TABLE 23. CHIBOMBO: SUPPORT TO PARTICIPATORY ADAPTATION



2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES






TOTAL

71,62 74,50 77,63 80,91 84,23 388,89

TABLE 24. CHIBOMBO: PROJECT COORDINATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. GOODS

1. VEHICLES

Double-Cabin Vehicle 4x4 for Kabwe Province unit 270 52,67 - - - - 52,67

Motorcycles at Chibombo District (02) unit 40 15,63 - - - - 15,63

Subtotal

68,31 - - - - 68,31

2. EQUIPMENT

Desktop PC at Kabwe Province /a unit 3,45 0,67 - - - - 0,67

Desktop PC at the Chibombo District unit 3,45 0,67 - - - - 0,67


Subtotal

2,13 - - - - 2,13




Chief Planner at Kabwe Province pers/day 0,8 3,13 3,27 3,42 3,57 3,73 17,12

District Planner at Chibombo District pers/day 0,8 3,13 3,27 3,42 3,57 3,73 17,12

Driver pers/day 0,3 1,17 1,23 1,28 1,34 1,40 6,42

Subtotal

7,44 7,76 8,11 8,49 8,86 40,66


1. VEHICLES

Double-Cabine Vehicle at Kabwe Prov. km 0,003 12,90 15,97 16,50 17,05 17,61 80,02

Motorcycles at Chibombo District (02) 2 km 0,001/km 3,61 5,58 5,77 5,96 6,15 27,07

Subtotal

16,50 21,55 22,27 23,01 23,76 107,09


Office Supplies lumpsum/y 2,1 0,41 0,43 0,45 0,47 0,48 2,24 Total Recurrent Costs

24,35 29,74 30,83 31,96 33,11 149,99

TOTAL

94,79 29,74 30,83 31,96 33,11 220,42

\a A remote project area with poor roads infrastructure

- 25 -

TABLE 25. MUMBWA: INTEGRATED COMMUNITY-BASED ADAPATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES














Subtotal

40,34 41,97 43,73 45,57 47,45 219,05



Subtotal

52,89 54,51 56,27 58,12 59,99 281,78

B. MISCELLANEOUS

1. MICRO-PROJECTS









Subtotal

154,31 154,31 154,3 154,3 154,3 771,57

2. MATCHING GRANTS









Subtotal

95,12 95,12 95,12 95,12 95,12 475,60

Subtotal

249,43 249,43 249,4 249,4 249,4 1 247,17

Total

302,32 303,95 305,7 307,6 309,4 1 528,95


TABLE 26. MUMBWA: SUPPORT TO PARTICIPATORY ADAPTATION



2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES






Total

71,62 74,50 77,63 80,91 84,23 388,89

- 26 -

TABLE 27. MUMBWA: PROJECT COORDINATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. GOODS

1. VEHICLES /a

Motorcycles at Mubwa District (02) unit 40 15,63 - - - - 15,63

2. EQUIPMENT

Desktop PC at Mumbwa District unit 3,45 0,67 - - - - 0,67

Multi-Function Printer unit 2 0,39 - - - - 0,39

Subtotal

1,06 - - - - 1,06


16,70 - - - - 16,70

II. Recurrent Costs


District Planner at Mumbwa District pers/day 0,8 3,13 3,27 3,42 3,57 3,73 17,12


1. VEHICLES



Office Supplies lumpsum/y 2,1 0,41 0,43 0,45 0,47 0,48 2,24


7,15 9,28 9,63 10,00 10,37 46,43

Total

23,85 9,28 9,63 10,00 10,37 63,12

TABLE 28. KAFUE: INTEGRATED COMMUNITY-BASED ADAPATION



2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES














Subtotal

40,34 41,97 43,73 45,57 47,45 219,05


Funds Manager - Matching Grants lumpsum/y 3.929,399 12,55 12,55 12,55 12,55 12,55 62,73

Subtotal

52,89 54,51 56,27 58,12 59,99 281,78

B. MISCELLANEOUS

1. MICRO-PROJECTS

a. COMMUNITY-LEVEL INFRASTRUCT








Subtotal

154,31 154,31 154,31 154,3 154,31 771,57

2. MATCHING GRANTS


- 27 -



2014 2015 2016 2017 2018 Total








Subtotal

95,12 95,12 95,12 95,12 95,12 475,60

Subtotal

249,43 249,43 249,43 249,4 249,43 1 247,17

Total

302,32 303,95 305,71 307,6 309,43 1 528,95


TABLE 29. KAFUE: SUPPORT TO PARTICIPATORY ADAPTATION



2014 2015 2016 2017 2018 Total

I. Investment Costs

A. SERVICES






Total

71,62 74,50 77,63 80,91 84,23 388,89

TABLE 30. KAFUE: KAFUE: PROJECT COORDINATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. GOODS

1. VEHICLES

Double-Cab. Vehicle 4x4- Lusaka Prov. unit 270 52,67 - - - - 52,67


Subtotal

68,31 - - - - 68,31

2. EQUIPMENT

Desktop PC at Lusaka Province unit 3,45 0,67 - - - - 0,67

Desktop PC at the Kafue District unit 3,45 0,67 - - - - 0,67


Subtotal

2,13 - - - - 2,13




Chief Planner at Lusaka Province pers/day 0,8 3,13 3,27 3,42 3,57 3,73 17,12

District Planner at Kafue District pers/day 0,8 3,13 3,27 3,42 3,57 3,73 17,12

Drivers pers/day 0,3 1,17 1,23 1,28 1,34 1,40 6,42

Subtotal

7,44 7,76 8,11 8,49 8,86 40,66


1. VEHICLES



Subtotal

16,50 21,55 22,27 23,01 23,76 107,09



24,35 29,74 30,83 31,96 33,11 149,99

Total

94,79 29,74 30,83 31,96 33,11 220,42

- 28 -

TABLE 31. PROJECT MANGEMENT AND COORDINATION


(ZMW '000)


2014 2015 2016 2017 2018 Total

I. Investment Costs

A. WORKS

1. CONSTRUCTION & REHAB.

Additional Office Space m2 4,093 538,41 - - - - 538,41

B. GOODS

1. VEHICULES

Vehicle 4x4 Double-Cabin unit 270 105,35 - - - - 105,35

2. EQUIPMENT

a. IT EQUIPMENT

Desktops unit 3,45 2,70 - - - - 2,70

Laptop Computers unit 4 1,56 - - - - 1,56

Printers unit 3,2 1,25 - - - - 1,25

Deskjet Printers unit 1,6 0,63 - - - - 0,63

Scanners unit 1,8 0,35 0,36 - - - 0,71

UPS unit 1,5 1,47 - - - - 1,47

Projector Multimedia unit 2,5 0,49 - - - - 0,49

Mobile Projection Screen unit 2 0,39 - - - - 0,39

Numeric Camera unit 3 0,59 - - - - 0,59

Subtotal

9,42 0,36 - - - 9,78

b. OFFICE EQUIPMENT

Photocopier unit 25 4,89 - - - - 4,89

Flip-Chart Boards unit 0,95 0,37 - - - - 0,37

Subtotal

5,26 - - - - 5,26

c. FURNITURE

Executive Set unit 11,21 2,19 - - - - 2,19

Profesionnal Sets unit 7,5 5,86 - - - - 5,86

Secretarial Set unit 4 0,78 - - - - 0,78

Meeting Room Set unit 35 6,84 - - - - 6,84

Subtotal

15,67 - - - - 15,67

Subtotal

30,35 0,36 - - - 30,71

Subtotal

135,70 0,36 - - - 136,06

C. SERVICES

1. TRAINING, WORKSHOPS, SEM.

Project Launching sessions/y 150 30,12 - - - - 30,12

Inception at AfDB HQ pers/year 30 12,05 - - - - 12,05

Training in Procrement pers/day 30 12,05 12,50 - - - 24,54

Training in Disbursement sessions/y 30 12,05 12,50 - - - 24,54

Training in Climate Change Adaptation sessions/y 30 12,05 12,50 - - - 24,54

Subtotal

78,32 37,49 - - - 115,81

2. TECHNICAL ASSISTANCE & CONSULT

Setup of the Proecjt's Accounting System Unit 250 48,46 - - - - 48,46


a. PROJECT CONTRACTUAL STAFF

Project Manager pers/m 20 45,07 45,07 45,07 45,07 45,07 225,36

M&E Specialist pers/m 8 18,03 18,03 18,03 18,03 18,03 90,15

Procurement Officer pers/m 8 18,03 18,03 18,03 18,03 18,03 90,15

Accountant pers/m 14 31,55 31,55 31,55 31,55 31,55 157,75

CC Adaptation Specialist pers/m 18 40,57 40,57 40,57 40,57 40,57 202,83

Drivers pers/m 5 11,27 11,27 11,27 11,27 11,27 56,34

Secretary pers/m 9 20,28 20,28 20,28 20,28 20,28 101,41

Office Orderly pers/m 3,5 7,89 7,89 7,89 7,89 7,89 39,44

Subtotal

192,69 192,69 192,69 192,7 192,7 963,43

b. STAFF MISSION ALLOWANCES

Project Manager pers/day 0,8 4,51 4,51 4,51 4,51 4,51 22,54

Project Financial Manager pers/day 0,8 3,00 3,00 3,00 3,00 3,00 15,02

M&E Specialist pers/day 0,65 9,16 9,16 9,16 9,16 9,16 45,78

Procurement Officer pers/day 0,65 3,66 3,66 3,66 3,66 3,66 18,31

Accountant pers/day 0,7 1,31 1,31 1,31 1,31 1,31 6,57

CC Adaptation Specialist pers/day 0,65 6,71 6,71 6,71 6,71 6,71 33,57

Drivers pers/day 0,3 4,23 4,23 4,23 4,23 4,23 21,13

Subtotal

32,58 32,58 32,58 32,58 32,58 162,92

c. STEERING COMMITTEE

Meeting of the Steering lumps/y 60 22,54 22,54 22,54 22,54 22,54 112,68

- 29 -


(ZMW '000)


2014 2015 2016 2017 2018 Total

Committee

Subtotal

247,81 247,81 247,81 247,81 247,81

1 239,03

4. AUDIT

Annual External Audit Unit 134,1 25,18 25,18 25,18 25,18 25,18 125,92

Subtotal

399,77 310,48 272,99 272,99 272,99

1 529,21


1 073,88 310,84 272,99 272,99 272,99 2

203,68 II. Recurrent Costs

A. OPERATION AND MAINTENANCE

1. VEHICLES

4x4 Double-Cabin Pick-ups 2 km 0,003/km 20,63 29,81 30,80 31,82 32,86 145,93

2. EQUIPMENT

IT Equipment lumpsum

- 0,51 0,53 0,55 0,57 2,15

Office Equipment liters

- 0,82 0,85 0,88 0,92 3,48

Subtotal

- 1,33 1,38 1,43 1,49 5,63

Subtotal

20,63 31,14 32,18 33,26 34,35 151,56

B. GENERAL OPERATING CHARGES

Communication & Postage lumps/m 3,2 7,54 7,84 8,17 8,52 8,87 40,94

Office Rental lumps/m 8,5 20,03 20,84 - - - 40,86

Stationaries & Office Supplies lumps/m 2,1 4,95 5,15 5,36 5,59 5,82 26,87

Public Utility Bills lumps/m 1 2,36 2,45 2,55 2,66 2,77 12,80

Security of Office lumps/m 1,85 4,36 4,53 4,73 4,92 5,13 23,67

Subtotal

39,23 40,81 20,82 21,70 22,59 145,14


59,87 71,96 52,99 54,95 56,94 296,71

Total

1 133,74 382,79 325,98 327,9 329,9 2

500,39

- 19 -

ANNEX B3 : IMPLEMENTATION ARRANGEMENTS

19. The Project will be implemented over a period of five years (60 months). The

approach of the project is to involve existing groups of farmers and the local communities in

climate risk planning, implementation and evaluation of Project interventions so as to

strengthen the capacity, enhance adoption of new technologies and practices that reduce

climate vulnerability, and increase the sustainability of project outcomes. Farm and

community level activities will be technically guided and backstopped primarily by two

sources: (i) line departments of the government at the District level, and (ii) local NGOs who

will be contracted by the project to facilitate, and mobilize communities as well as supporting

community preparedness and capacity building.

20. At the national level, the interim Inter-Ministerial Climate Change Secretariat under

the Ministry of Finance (MoF) will have the overall lead responsibility for Project execution

(including fiduciary responsibilities), while working closely with all the line Ministries and

Cooperating Partners currently supporting climate change activities in Zambia (as they have

been doing already under the PPCR Phase I). Phase I supported the establishment of the

Secretariat (in the quest to helping overcome some of the current capacity constraints). The

Project will support the establishment of a Project Management Team to be housed within the

Secretariat charged with the responsibility of implementing the AfDB administered project.

At the community level, the Ward/Area Development Committee (ADC) comprising field

staff from the Government and community leaders will work closely with non-governmental

organizations in mobilising the communities, sensitizing and facilitating participatory climate

risk planning. Participatory planning process will be used to identify and implement pilot

concrete adaptation measures focusing on water, crops, fisheries, forestry, wildlife and

livestock management to promote climate resilience. Degraded agro-ecosystems will be

improved through sustainable land management measures. At the District level, the

implementation of the Project will build on existing government structures and will

specifically use a Planning Sub-committee of the District Development Coordination

Committee (DDCC) as the focal point.

21. The National Climate Change Secretariat, under the Ministry of Finance (MoF) will

take overall responsibility for project execution, and oversee and coordinate project

implementation. The Secretariat – already operational - was established by a committee of

Permanent Secretaries in March 2012, and endorsed by directive of the Secretary to the

Cabinet on 16 October 2012. The Secretariat has the mandate to coordinate all climate

change activities across sectors and projects in Zambia. It is also responsible for facilitating

stakeholder consensus and development of Zambia’s Climate Resilient and Low Emissions

Development Program, and facilitate Zambia’s role at international negotiations (namely in

UNFCC, and Green Climate Fund). The Secretariat has been coordinating Phase I of the

PPCR, and is overseen by a Technical Committee with representation from key line

Ministries, civil society and the private sector. Under the long-term arrangements currently

under discussion by the government, the Secretariat will be managed by a multi-stakeholder

Board (the National Climate Change and Development Council). The Secretariat is currently

staffed with eight (8) technical experts, seconded by line Ministries. This core team is

complemented by an attached procurement expert, and contracted staff in the areas of

financial management, communications, monitoring and evaluation, participatory adaptation,

and administration and logistics (procured under Phase 1 of the PPCR). The Project will

- 20 -

support the establishment of a Project Management Team comprising of a Project Manager,

Participatory Adaptation expert to be housed within the Secretariat charged with the

responsibility of implementing the AfDB administered project

22. At the District level, the implementation of the Project will build on existing

government structures and will specifically use a Planning Sub-committee (PSC) of the

District Development Coordination Committee (DDCC) as the focal point. The Planning

Sub-committee oversee the planning, provide specialized technical support, and carry out

fiduciary, safeguards and monitoring oversight of the Community based Participatory

Adaptation Component. The PSC will be headed by the District and report to the Project

Manager at the Secretariat level. The PSC PIU will be supported by the Provincial Planning

Sub-Committee, which will be responsible for selection of the sub-grants and technical

oversight. The Planning Sub-Committee is expected to be reinforced by the inclusion of and

civil society partners. This will ensure that the project is integrated in existing institutional

structures and mandates. The procedures for the Participatory Adaptation component will

follow the Implementation Manual.

23. As part of Component 1.2 Support to integrated community based adaptation, the

Secretariat will contract experienced NGOs and/or other development experts that have on-

going, relevant programs in the target districts. These NGOs, working in close collaboration

with local chiefs will facilitate ward and community-level climate risk planning. They will

also assist target beneficiaries to prepare and submit sub-project proposals in accordance with

the agreed eligibility criteria, and thereafter assist them in implementation. At the ward level,

the project will work directly with existing Ward Development Committees, whilst at the

community level the project will target established Village Area Groups, farmers groups, and

women’s groups.

24. The sub-projects under Component 1.1 will be first screened by the district Planning

Advisory Committee for compliance with the standards, and then reviewed and approved by

the District level Planning Sub-Committee with the presence of Provincial Chief Planner.

The Secretariat would be represented at the first meetings of the District Committee to ensure

compliance with the eligibility criteria. Once approved, lump-sum agreements will be signed

directly with the beneficiaries, and funds will be disbursed directly to their bank accounts in

several tranches, according to the progress of the agreed sub-projects.

25. The road works will be implemented by the Roads Development Authority (RDA).

- 21 -

ANNEX B4 : FINANCIAL MANAGEMENT AND DISBURSEMENT

ARRANGEMENTS

26. Introduction: A financial management assessment of the National Climate Change

Secretariat (NCCS) under the Ministry of Finance (MoF) and responsible for overall project

execution and coordination in accordance with the Bank’s Guidelines for the Financial

Management and Financial Analysis of Projects (2007) and ORPF FMS Tool Kit

(Provisional, June 2010).

27. The objective of the assessment was to determine whether the NCCS, has acceptable

financial management arrangements, which will ensure that: (a) project funds are used only

for the intended purposes, in an efficient and economical way; (b) the project's financial

reports will be prepared in an accurate, reliable, and timely manner; (c) internal controls exist

which allow early detection of errors, unusual practices as a deterrent to fraud and corruption;

(d) project assets are safeguarded; and (e) the project is subject to external audit oversight.

The results of the assessment and the agreed financial management, disbursement and

auditing arrangements for the proposed Strengthening Climate Resilience in the Kafue Basin

Project (SCRIKA) are documented below. The FM assessment was done during the month of

May 2013 as part of the project appraisal. The overall financial management residual risk for

the project is assessed as Moderate.

27. Country Issues: The recently (April 2013) undertook a Fiduciary Risk Assessment of

the Government of the Republic of Zambia’s (GRZ’s) PFM environment as part of the

Proposed Governance Reform Support Program, to assess the level of fiduciary risk

associated with the country’s Public Financial Management (PFM) Systems. The analysis

was based on the four main risk pillars: (1) Budgeting, (2) Audit and reporting, (3)

Procurement and (4) Corruption. The assessment took a look at the recent diagnostic reviews

as well as existing laws in Zambia such as the 2008 and 2012 PEFA (draft) assessments, the

PEMFA Secretariat Report (April 2012), Public Finance Act (PFA) 2004 and Financial

Regulations (PR) - 2006, Public Audit Act (Cap 378), Public Procurement Act (PPA) 2008

and Public Procurement Regulations (PPR) 2011, and Anti-Corruption Bill 2012. Interviews

were also held with key public finance management institutions (Ministry of Finance and

National Planning (MoFNP)), the Accountant General (AG), the Office of the Auditor

General (OAG), Zambian Public Procurement Authority (ZPPA) and the Anti-Corruption

Commission (ACC) and other cooperating partners including the World Bank and the

European Union. The overall country fiduciary risk is deemed substantial, but with a positive

trajectory for change.

28. Reviews of the on-going reforms including the PEMFA report (April 2012) as well as

draft PEFA (2012) report have all revealed progress has been made in a number of areas,

including improvements in legal and regulatory framework for PFM, development and

operationalization of the Debt Management Policy and Strategy (2009), enactment of the

Zambia Public Procurement Act (ZPPA) 2008 replacing the Zambia National Tender Board

Act, the piloting of Integrated Financial Management Information System (IFMIS) in

MoFNP and roll out to 28 more sites. Both Internal and External as well as parliamentary

scrutiny have seen some improvement resulting in increased audit coverage (both internal and

external).

- 22 -

29. In spite of this progress however, major areas of weaknesses have still been identified

that needed to be addressed particularly, in accounting and reporting, internal audit,

procurement, external audit and scrutiny, which GRZ needs to address to further improve

Zambia’s PFM environment. The GRZ has prepared a new PFM Reform Strategy (2011-

2015) which sets out a framework for continuing PFM reforms to help address the

weaknesses identified.

30. Bank fully subscribes to the Paris Declaration (2005) and Accra Agenda for Action

(2008) regarding the use of country systems to the maximum extent possible.

Notwithstanding the weaknesses identified, the Bank will use various aspects of the Country

financial management systems for managing the project. The following aspects of the PFM

system or part thereof will be used: Budgeting – reflecting the project in the National Budget;

Accounting and Financial Reporting - accounting for and reflecting project transactions

within the existing Government’s IFMIS; Treasury Management/Funds Flow – disbursing

project resources through using the GRZ’s banking arrangements and treasury procedures;

Internal Controls and Internal Audit - using the existing national rules and financial control

procedures when implementing the project; and External Audit oversight - using the

Country’s supreme audit institution, the OAG to audit or guide the project financial

statements auditing process as per their mandate.

31. Consequently, a number of risk mitigation measures have been considered which will be

recommended for implementation as part of the financial management improvement plan.

These measures will include: (i) A tailor-made financial management procedures manual that

will provide guidance to staff on all aspects including expenditures that are ineligible under

the project; (ii) Using the MoF Internal Audit to undertake pre-audit of project transactions;

and (iii) Procurement of an Off-the-Shelf accounting software (currently underway) to record

and process transactions and interface it with IFMIS to facilitate timely project financial

reporting given the operational challenges with IFMIS (iv) Assigning a dedicated accounting

staff with adequate qualifications and experience, reporting to the Financial Management

Specialist NCCS, with overall responsibility for the accounting functions of the project; and

(v) Enforcing a system of submitting interim quarterly progress report (IQPR) not later than

30 days after end of each quarter, in addition to annual audited financial statements as per the

requirements of the financing agreement.

32. The financial management and disbursement arrangements for proposed SCRIKA project

satisfy the Bank’s minimum requirements when the above measures are fully implemented.

33. Risk Assessment and Mitigation: The FM risk is assessed in order to ensure that

appropriate risk mitigating measures are incorporated into design of the operation. The Table

XX summarizes the risk identified, the risk rating, and mitigation measures if any.

Table XX: Detailed FM Risk Assessment

Risk Type

Rating

Risk

Risk Mitigation Measures Incorporated

into the Project Design

Risk after

Mitigation

Condition

ality(Yes/

No)

Inherent Risk

Country Level

Weak accountability, lack of

follow up and

implementation of audit

S There is on-going PFM reform

supported by cooperating partners.

IFMIS has been rolled out to most

government ministries (including

S No

- 23 -

Risk Type

Rating

Risk



Risk after

Mitigation

Condition

ality(Yes/

No)

findings, poor enforcement

and compliance with existing

regulations and procedures

etc.

Reporting challenges with

IFMIS following the rebasing

of the Kwacha could affect

timely submission of required

financial reports to the Bank.

SECRETARIAT), and when fully

operational will improve the

accountability and control environment

in government

On-going efforts by Government to

reconfigure IFMIS following rebasing

of the Kwacha to enhance reporting

capabilities within MPSAs.

Entity Level

Possibility of co-mingling

project funds with other GRZ

funds within the MoF

Inadequate FM staffing

within MoF to carry out FM

function under the project

S Separate SA will be opened for the

project and use of project funds will be

closely monitored by the Bank through

quarterly Interim Financial Progress

Report and FM supervisions and

reviews.

The NCCS has recruited a qualified

Financial Management Specialist

specifically for the project and the

process to recruit two more Project

Accountants are on-going.

M No

Project Level Inadequate staffing at NCCS

to handle project transactions.

Weak FM capacity at the

decentralized levels.

S

The project will have a dedicated

Accounts Officer with the requisite

qualification and experience recruited

through competitive process.

The Provincial and District accounts

officers will benefit from the support

and guidance of the accounting staff at

the NCCS due to the proximity of the

beneficiary province and districts to

Lusaka.

Periodic training of dedicated FM staffs

will be undertaken during project

launching, through Fiduciary Clinics

and Supervision missions.

M

Yes

Overall Inherent Risk S S

Control Risk

Budgeting

Weak budget preparation

might result in inadequate

resources for project.

M Budget will be prepared based on

approved Annual Work Plans and by

the Steering Committee and the Bank.

The NCCS which will be responsible

for overall financial management has

prior experience in Budgeting from on-

going Phase I of the project being

financed by the World Bank.

The Financial budgets will be linked to

physical outputs through an operating

plan. The IQPRs will be used to

monitor variance analysis with budget

in accordance with funding

requirements, and all variations in

budget will require prior approval by

the Bank.

L No

Accounting

Inadequate staffing within S The NCCS has recruited a qualified

FMS and there is on-going competitive M No

- 24 -

Risk Type

Rating

Risk



Risk after

Mitigation

Condition

ality(Yes/

No)

NCCS to handle project

transactions.

The use of Excel in recording

and process transaction,

coupled with reporting

problems associated with

smooth functioning of IFMIS

could affect timely project

transaction processing.

Untimely accountability of

Funds transferred to fund

Provincial/District Level

project activities could delay

timely reporting.

process to recruit two additional project

Accountants.

Provincial and district accountants will

provide the necessary back-stopping at

the decentralized levels, where

necessary.

An accounting software will be

procured (currently on-going) to help

process project transaction to ensure

timely preparation of financial

statements in readiness for audit; and to

also interface to IFMIS for central

government’s own accounts.

Subsequent request for advances to the

decentralized levels will only be

approved and made upon full

accounting for previous advances.

Internal Control

Weak control environment as

a result of weak enforcement

of existing financial

regulations and ineffective

internal audit function.

H The Project Implementation Manual to

be developed will provide guidance to

project staff.

The project would be covered by the

work program developed by the MoF

Internal Audit Unit; and there are plans

to attach an Internal Auditor to NCCS

to facilitate pre-audit of transactions.

Bank’s FM Supervision and SOE

reviews would also highlight

weaknesses and make appropriate

recommendations for addressing them.

S

Funds Flow

Delays in the preparation of

payment request to the Bank

could affect timely project

implementation.

Activities at decentralised

levels could be delayed due

to delay in funds flowing

from NCCS.

Delays in counterpart

contribution could affect

project implementation.

S The Bank will provide disbursement

training and guidance to project team in

completing withdrawal applications;

and most of the contracts would be

made through direct payment method.

Personnel within NCCS has are

familiar with replenishment and

payment request under the on-going

Phase I funded by World Bank.

Local Operating Account will be

opened at Commercial in Lusaka with

network Branches in all project-

affected Province and Districts.

Proof of full deposit of beneficiaries’

cash counterpart contributions into the

Group Bank accounts in a commercial

bank will be a pre-requisite for

approving all matching grant sub-

projects.

The bulk of GRZ counterpart

contribution will be in-kind in a form

of office space, counterpart staff

salaries, office supplies etc.

M No

Reporting and Monitoring

Poor quality and delays in

submitting IQPRs and other

reports due to non-existing of

robust accounting system

S Format for IQPR will be agreed with

NCCS during negotiation to ensure

timely submissions to the Bank and

other stakeholders.

The NCCS is currently implementing

M No

- 25 -

Risk Type

Rating

Risk



Risk after

Mitigation

Condition

ality(Yes/

No)

coupled with challenges

associated with IFMIS

operation.

Phase I of the project and the project

will benefit from experience acquired.

Procurement of accounting software is

underway to enhance transaction

processing and progress reporting.

Refusal to replenish future advance

request will also motivate timely

reports submission.

External Audit and Public

Oversight

Delays in auditor recruitment

could affect submission of

annual audit reports.

S The Auditor General will audit the

project and where necessary, appoint a

private external auditor based on

acceptable terms of reference

acceptable to the Bank. NCCS will

ensure that OAG include the project in

their annual audit program.

M No

Overall Control Risk S M

Overall Project Risk Rating S M

H – High S - Substantial M – Moderate L – Low

34. Strengths: The main strengths includes, building on the existing financial

management systems within the NCCS being used in implementing Phase I of the project

being funded by the World Bank, the recruitment of a Financial Management Specialist

(FMS) with prior experience in implementing donor-funded projects to provide oversight, the

use of existing financial management regulations and procedures within the Provincial and

District Councils, and the commitment so far demonstrated by the OAG in undertaking

timely auditing of all on-going project.

35. Weaknesses: The weaknesses identified are: (i) inadequate qualified accounting staff

to take on the additional volume of work the proposed projects will bring, (ii) non-existence

of accounting software coupled with non-fully functional IFMIS, even though the system has

been rolled out to the NCCS; and (iii) delays in getting clearance for payment processing

procedures within the MoF.

36. FM Action Plan: To further strengthen the FM systems within the

PCT/SECRETARIAT and mitigate the identified risks, the following actions were discussed

and agreed with SECRETARIAT to be undertaken.

# Required Actions By Whom By When Comment

1 Submit a financial management

procedures manual as part of the

Project Implementation Manual

(PIM)

FMS - NCCS Effectiveness

The adoption of the PIM is an

effectiveness condition

2 Recruit a dedicated accountant for

the project whose qualification and

experienced is acceptable to the

Bank.

Project

Coordinator/F

MS - NCCS

Effectiveness FMS should prepare the ToR and

submit for Bank review and

clearance as soon as possible.

3 Procurement of accounting

Software to help process project

transactions to facilitate financial

reporting.

FMS - NCCS Effectiveness Procurement process on-going;

and being funded under the on-

going Phase I.

- 26 -

# Required Actions By Whom By When Comment

4 Provide training in the Bank’s

financial management and

disbursement procedures to the

dedicated project accountant and

NCCS accounting staff.

Financial

Management

Specialist,

AfDB

Within 3 months

after

effectiveness.

The first training will be done as

part of project launching, and

further on-the-job coaching will

be provided during Bank FM

Supervisions.

5 Facilitate the attachment of an

Internal Auditor to facilitate

transaction processing and enhance

control environment at NCCS

Project

Coordinator/F

MS - NCCS

Effectiveness Process to get Internal Audit

personnel to be attached to NCCS

is on-going.

6 Ensure that project is covered by

the OAG annual audit work

program; or Private external auditor

recruited with OAG’s involvement

using the Bank’s audit terms of

reference (TOR) where necessary.

NCCS/ OAG Within 6 months

after

project

effectiveness

The OAG is the currently the

external auditor for the on-going

Phase I.

- 27 -

37. Implementing Entity: The project’s financial management will be managed by NCCS

using the existing set-up under Phase I. The NCCS is currently headed by a Project

Coordinator. There is a Financial Management Specialist who was competitively recruited as

the head of the accounting department. Plans are underway to recruit two additional

accountants (1 each for the AfDB and World Bank components respectively). An assessment

of NCCS’s financial management capacity for the implementation of the project indicates

that they satisfy Bank minimum requirements to handle and coordinate the financial

management aspect under the project, with the full implementation of the FM recommended

actions above.

38. Planning and Budgeting: The budgeting system within NCCS is quite comprehensive

and in line with GRZ’s budgeting procedures. Consequently, the operation will follow the

existing principles for budgeting as issued by Ministry of Finance. The NCCS will prepare an

annual work plan and budget for implementing project activities taking into account the

specific project components of this project, and link it to the IFMIS Chart of Accounts with

the project separately identified for financial reporting purposes. These plans and budgets

will be submitted to the Project Steering Committee for approval and thereafter to the Bank.

39. Accounting Policies, Procedures and Information Systems: All project transactions will

be processed using the accounting software (currently being procured); and interface it into

the government’s integrated IFMIS system for government accounting and reporting

purposes. The IFMIS is currently being upgraded following the re-basing of the Kwacha, as

well as addressing some identified system reporting deficiencies, and expected to be fully

operational before project effectiveness. All accounting and supporting documentation will

be retained within the NCCS for auditing purposes. The format for IQPR will be agreed

during negotiations and copies made available to the project team during project launching to

enable them configure the reporting systems within the accounting software.

40. Internal Control and Audit. The project would be covered by the existing internal control

rules and regulations under the existing Finance Act (2004) and Financial Regulations

(2006). The Project Implementation Manual which will include accounting and

administrative procedural manual to be produced by the NCCS and approved by the Bank

would guide day to day implementation of the project with clearly defined roles and

responsibilities allowing for segregation of duties. The procedures manual as well as detailed

project costing table would also highlight expenditures eligible for financing under the

project. Plans are also underway to attach an Internal Auditor to the NCCS to help facilitate

transaction processing and further enhance the project control environment.

- 28 -

41. Funds Flow and Disbursements Arrangements: The project would make use of the

Bank’s various disbursement methods including (i) Direct Payment, (ii) Special Account

(SA) and (iii) Reimbursement methods in accordance with Bank rules and procedures as laid

out in the Disbursement Handbook (that can be accessed from the Bank’s website) as

applicable. Two separate Special Accounts in foreign currency (one each for the Loan and

Grant respectively) will be opened at the Bank of Zambia (BoZ). The MoF on behalf of the

project will transfer funds from the respective SA through the Treasury Control 99 to the

respective project Kwacha sub-accounts held at BoZ and managed by the Secretariat. To

facilitate payment of eligible operating costs two separate Mirror Accounts(one each for the

Loan and Grant) with zero balance linked to the sub-accounts at BoZ, will be opened at local

Commercial Banks in Lusaka with wider network branches especially in the project-affected

districts and acceptable to the Bank. All transfers to be made into the respective sub-accounts

(including payments to matching grant beneficiaries Group accounts) would be based on

quarterly approved eligible operational expenditure cash flow projections prepared from the

project’s approved annual work programme and budget. Consequently, the FMS will ensure

that no excessive or idle funds remain in the mirror accounts at the commercial banks; but

will effectively manage the cash flow cycle to ensure availability of funds at all times to

facilitate project implementation. Releases of funds to finance activities under the sub-

projects and the Matching Grants, will be based on the requirements in respective sub-

projects financing agreement to be signed with grant beneficiaries based on the eligibility

criteria outlined in the Project Implementation Manual (PIM). Preparation of documentation

for all direct payments, special accounts replenishments as well as justification of advances

into the special accounts would be under the overall responsibility of the FMS who would be

assisted by the dedicated Project Accountant. The project use the direct payment method for

all contracts and payments that meet the minimum thresholds as specified in the project

appraisal report. The GRZ through the MoF will be required to submit to the Bank, details of

all Bank Accounts as well as specimen signatures of authorized signatories for signing

withdrawal applications and direct payments. The fund flow arrangement is depicted in the

diagram below.

45. Counterpart contribution: In addition to the in-kind counterpart contribution (office

space, utilities, counterpart staff time etc.) to be provided by GRZ under the project, there is

an agreement for beneficiaries to make cash contributions under the Matching Grant

component under the Integrated Community-Based Adaptation sub-component. Proof of full

deposit of beneficiaries’ cash counterpart contributions into the beneficiary Group Bank accounts in a

commercial bank, will be a pre-requisite for disbursement of all matching grants.

- 29 -

Funds Flow Diagram (SCF Resources)

SCF

Loan

Special Foreign Currency

(USD$) Holding Account

(SFCHA) in BoZ for SCF

Loan

Mirror Loan Account for

NSSC in Kwacha at

Commercial Bank in

Lusaka

Special Foreign

Currency (USD$)

Holding Account

(Kwacha) in BoZ for

SCF Grant

Matching Grant sub-

component: Beneficiaries Group

Accounts in local

Commercial Banks

Civil Work, Contractors,

Suppliers, Consultants, etc.

Mirror Grant Account

for NSSC in Kwacha at

Commercial Bank in

Lusaka

Eligible project eligible

expenses at

NCCS/Provinces/Districts;

Civil Work, Contractors,

Suppliers, Consultants.

SCF

Grant Loan

Transfers

Treasury Control 99 at BoZ

in Zambian Kwacha

Transfers Treasury Control 99 at BoZ

in Zambian Kwacha

Transfers Sub-account at BoZ

for NCCS in Zambian

Kwacha

Transfers Sub-account at BoZ

for NCCS in Zambian

Kwacha

- 30 -

46. Financial Reporting: The overall responsibility for financial reporting will rest with

the FMS, as the head of NCCS’s finance department, and supported by two dedicated

accounting staff with adequate qualifications and experience accepted to the Bank. Provincial

and District Accountants will provide the necessary backstopping at the local levels (where

necessary). All project transactions will be accounted for by NCCS and reported on using a

stand-alone accounting software to be procured (procurement process on-going) and installed

by the project, to ensure timely submission of financial reports. The accounting software to

be installed will be interfaced into the IFMIS (where possible) to facilitate capturing the

project activities in GRZ’s annual national financial accounts. In addition, the project will be

required to prepare and submit to the Bank, Interim Quarterly Progress report (IQPR) not

later than 30 days after the end of each calendar quarter. Format for IQPR would be provided

by the Bank and agreed upon during negotiations. Where funds are transferred to the

provincial levels to finance project local activities, the provincial and district accountants

would coordinate the accounting functions at the decentralized levels in line with government

existing systems and submit copies of all appropriate documents and reports to the NCCS for

reporting purposes. To reduce the burden of financial reporting on the NCCS, the Bank’s

reporting requirements will be aligned to that of other co-financiers of the project.

47. External Audit: In accordance with the Bank’s requirements, a separate annual audit

report will be prepared for the project with the involvement of the OAG, Zambia as per their

mandate. The annual audited financial statements including the auditor’s opinion and

management letter will be submitted to the Bank not later than six months after the end of

each fiscal year. The audit of the project can be subcontracted as may be necessary to a firm

of private auditors to be procured through short-lists (with the involvement of OAG) using

the Bank’s rules and procedures for procurement and the cost of audit will be financed from

the loan if carried out by a private firm. In addition to the financial audit, two technical and

performance audits (including procurement reviews) will be undertaken during project mid-

term and at completion respectively, to be based on technical audit terms of reference agreed

between the Bank and GRZ. Emphasis will be placed on assessment of proper use and

accountability of funds, procurement, physical implementation of the civil works, and social

and environmental monitoring. The technical audit would be conducted by an independent

firm having expertise in similar work. NCCS should therefore inform the OAG of project

effectiveness to enable them plan for the audit accordingly.

48. FM Supervision: The project would be implemented in a “Moderate” risk environment.

Despite the “Moderate” risk rating, there would be two supervision missions in the first year

to ensure adequate start-up of project activities. Financial Management (FM) training as well

as the required reporting templates would be provided to the FM staff as part of capacity

strengthening by the Bank FM team. Other supervision activities would be desk reviews of

the IQPRs, annual audit reports, and management letters for follow-up actions. The outcome

of these reviews would inform the intensity of subsequent FM supervisions.

- 31 -

ANNEX B5 : PROCUREMENT – GOODS, WORKS AND

CONSULTANCY SERVICES

B.5.1 National Procedures and Regulations - Use of Country Procurement Systems

49. The Bank has undertaken an assessment of the country’s National Public Procurement

Procedures in a report dated June 2011 and the identified areas of weakness are being

addressed by the government. The country’s NCB procedures cannot be used until the

concerns identified in the report are addressed to the Bank’s satisfaction. The Bank has been

engaging in dialogue with the Government on the identified deviations as outlined in the

Global Action Plan (GAP) (included in this Annex), which affect the basic principles

underlying the Bank’s fiduciary obligations. The deviations relating to the Bank’s “fiduciary

obligations” have constituted the basis for the dialogue between the CPs and the Government.

The CPs have engaged the relevant government bodies and pointed out provisions of the

national procurement law which the country needs to amend in order to meet the required

standards under international procurement practices. The ZPPA is currently developing a

Strategic Plan which will among other things focus on reforms that will address these issues.

B.5.2 Procurement Arrangements

50. All procurement of goods, works and acquisition of consulting services financed by

the Bank will be in accordance with the Bank’s Rules and Procedures: “Rules and Procedures

for Procurement of Goods and Works”, dated May 2008, revised July 2012; and “Rules and

Procedures for the Use of Consultants”, dated May 2008, revised July 2012, using the

relevant Bank Standard Bidding Documents, and the provisions stipulated in the Financing

Agreement.

51. The Multi-sectorial National Climate Change Secretariat (Executing Agency) under

the Ministry of Finance will be the Executing Agency. This unit will carry out procurements

in collaboration with Procurement and Supplies Unit while the Road Development Agency

(RDA) will provide procurement support for the civil works involving roads rehabilitation.

The responsibility for the management of the procurement processes and accountability for

implementation of all components will rest with the secretariat under the Ministry of Finance.

The Secretariat will ensure oversight of all the procurement carried out during project

implementation including the demand driven interventions at community level. The activities

under the Community Demand Driven Participatory Adaptation component which will

finance community led infrastructure sub-projects and farm level support systems will be

procured at the community level using modalities for procurement under Community–Driven

Development procedures. The details for procurement processes under this component will

be articulated in the Participatory Adaptation Implementation Manual, which is being

developed. This manual will also define the roles and responsibilities for various parties,

internal and external controls, and approval and accountability systems. The manual will be

developed based on the Bank Guidelines for Procurement Under Community-Based

Investment Projects

- 32 -

52. The Provincial Planning Unit under the Provincial Permanent Secretary will carry out

a monitoring and coordination function of all activities in the province while the District

Planning Office (planning sub-committee of the DDCC) under the District Council will be

the focal point for implementation at district level. Appropriate training in sub-project

management and procurement under community driven development will be undertaken for

district staff and beneficiary community groups to ensure efficiency, transparency and

accountability.

53. The various items under different expenditure categories and related procurement

arrangements are summarized in Table B.5.1a and B.5.1b. Each contract to be financed by

the Bank, the different procurement methods, estimated costs, prior-review requirements, and

time frame are agreed between the Borrower and the Bank project team and are provided in

the Procurement Plan (see Table B.5.2).

Table B.5.1a: Procurement Arrangements

No Project Categories (UA Million)

ICB

NCB Shortlist * Other**

Non-Bank

Funded Total

1 Civil Works

1.1 Office Rehabilitation for

Secretariat

0.36

0.36

1.2 Roads Rehabilitation 11.8

(11.8)

11.8

1.3 Road Maintenance costs 8.32 8.32

Sub-total (11.8)

8.68 (11.8)

20.46

2 Goods

2.1 Motor Vehicles

0.28

(0.28)

0.28

(0.28

2.2 Motor Cycles

0.09

(0.09)

0.09

(0.09)

2.3 Office Equipment

0.02 (0.02)

0.02

(0.02)

2.4 Furniture

0.01

(0.01)

0.01

(0.01)

Sub-total (0.28)

(0.12)

(0.40)

3 Services

3.1 Consultancy Services :

Civil Works Supervision 0.534 0.534

Fund Manager –Marching

Grants

0.38

(0.38)

0.38

(0.38)

Farm Level Support System

1.32

(1.32)

1.32

(1.32)

Support to Local Communities 2.34

(2.34)

2.34

(2.34)

Consultancy -Support to

Secretariat

0.71

(0.71)

0.71

(0.71)

Technical Assistance

0.03

(0.03)

0.03 (0.03)

Financial Audit

0.08

(0.08)

0.08

(0.08)

3.2 Training / workshops

0.08

(0.08)

0.08

(0.08)

Sub-total

(0.38) (4.56) 0.534 5.47

(4.94)

4 Miscellaneous

- 33 -

No Project Categories (UA Million)

ICB

NCB Shortlist * Other**

Non-Bank

Funded Total

4.1

Micro – Projects for

Community –Level Infrastructure

4.63

(4.63)

4.63

(4.63)

4.2 Marching Grants

2.86

(2.86)

2.86

(2.86)

Sub-total (7.49) (7.49)

5 Operating Costs

0.86

(0.86)

0.86

(0.86)

5.1 Civil Service Staff Costs

Attached to the Project

0.12 0.12

Sub-Total

(0.86) 0.98

(0.86)

Total (11.68) (0.28)

(2.72) (10.69) 9.33 34.68

(25.35)

* Applies to shortlist procedures in compliance with clause 2.6 of the Bank Rules (QCBS).

** Applies to the use of “other” procurement methods for Goods, Works and Services as outlined in table B 5.1b below.

Table B.5.1b: Other Methods of Procurement (UA million)

Item Amount

(In UA ‘000) Method

Goods and Works

Office Rehabilitation for Secretariat 0.36

Shopping

Motor Cycles 0.09

(0.09) Shopping

Office Equipment 0.02

(0.02) Shopping

Furniture 0.01

(0.01) Shopping

Services

Farm Level Support System 1.32

(1.32)

Single Sourcing – Bank Approved

Public Institution / Agency

Consultancy- Support to Secretariat 0.71

(0.71) Individual Consultants

Technical Assistance 0.03

(0.03) Individual Consultant

Financial Audit 0.08

(0.08) Least Cost Selection (LCS)

Training and Workshops 0.08

(0.08)

Based on Bank Approved Training

Programme, Work Plan and Budget

Miscellaneous

Micro–Projects for Community Level Infrastructure 4.63

(4.63)

Community Participation in

Procurement

Matching Grants 2.86

(2.86)

Community Participation in

Procurement

Operating Costs 0.86

(0.86)

Internal Operational Systems of

Executing Agency

Attached Civil Service Staff costs 0.12 Internal Operational Systems of

Executing Agency

- 34 -

54. Civil Works: Contracts of works valued equal to or greater than UA 3 million will be

carried out under International Competitive Bidding (ICB) procedures using the standard

Bidding Documents. These works will comprise centrally procured road rehabilitation works

which will be packaged in two (2) lots and these will be rural roads linking farmers to

markets as well as to the Kafue National Park covering a total of 156 km whose contracts are

estimated at an aggregate value of UA 11.8 million (comprising (i) Kalomo to Dundumwezi

(75km), estimated at UA 5.5 million (ii) Ngoma to Itezhi-tezhi to Namwala (81 km),

estimated at UA 6.3 million. Works below the value of UA 3 million will be undertaken using

the NCB procedures.

55. In addition, at community level a number of undetermined works or community

infrastructure valued in aggregate at (UA 4.63 million) will be carried out based on a demand

driven development model by community groups. Such civil works with estimated values

between UA 100,000 and UA 50,000 will be procured following the Local Competitive

Bidding (LCB) procedures (modified NCB at local level). For values less than UA 50,000

Local Shopping by soliciting competitive bids from a minimum of three qualified contractors

shall be used. Considering that the works of values below UA 50,000 will be scattered and

shall be carried out in remote rural settings, direct contracting may be used in place of local

shopping with acceptable justification subject to prior Bank approval.

56. The use of ICB for the centrally procured road rehabilitation works is justified

considering the monetary value, the scope. The use of Local Competitive Bidding and

shopping for the majority of the demand driven procurements is justified as the works are

scattered over a wide area and the size of the works involved are sSecretariatl in financial

value and scope and are unlikely to attract bids from other parts of the country or outside

Zambia. In addition, there are many local contractors sufficiently qualified to ensure

competitive bidding through LCB and shopping. Additionally the country has adequate

capacity at local level to carry out such sSecretariatl value works.

57. Goods: At the Central level, Contracts for goods grouped to an aggregate value equal

and exceeding UA 300,000, ICB will be used and if the estimated value of contracts is

between UA 300,000 and UA 100,000 National Competitive Bidding (NCB) will be used

which include Motor vehicles (UA 280,000), while goods below the value of UA 100,000

will be procured using the shopping method and will include motorcycles (UA 90,000),

office equipment (UA 20,000) and furniture (UA 10,000).

58. At the community level, shopping procedures will be used for values less than UA

50,000. Such goods will include unspecified procurements under the demand driven

component. Shopping procedure shall consist of the soliciting of price quotations from at

least three qualified suppliers. Such eligible goods shall be specified in the Participatory

Adaptation Implementation Manual. Direct contracting using unit prices prevailing in the

area for comparison may be allowed when there are insufficient suppliers available.

59. The shopping method has been selected for central level procurements for the goods

with value up to UA 100,000 because most of the established suppliers have strong

representatives in Zambia and such low value procurements are not likely to attract

international suppliers.

60. Consulting Services: Procurement of consulting services valued above UA 200,000

will be procured using the Quality and Cost Based Selection method. Consulting services

- 35 -

valued in total at UA 5.47 million will include the recruitment of civil works supervision

consultants (UA 534,000), Fund Manager for the Marching Grants (UA 380,000) and the

three (3) NGOs (contracts valued in total at UA 2.34 million) with demonstrated experience

in facilitating climate resilience in the target districts to provide support to the Districts and

the communities in participatory adaptation. These services will be procured competitively

through the Quality and Cost Based Selection (QCBS) method. In case of local NGOs hired

to support community activities, where acceptable justification is provided, shall be single

sourced. The Financial Audit (UA 80,000) will be procured using the Least Cost Selection

(LCS) method. Short Term Technical Assistance (UA 30,000) and long term consultancy

support to the secretariat (contracts for project individual consultants valued in total at UA

710,000) will be recruited competitively in accordance with the Bank rules for recruitment of

Individual Consultants. All the services other than those demanded under sub-project

activities by community groups will be procured at the central level. Farm level support (UA

1.32 million) will be procured through the appointment of Bank approved agency well

established in this activity. Services for community based training, seminars and workshops

will be provided by NGOs and consultants including national educational institutions. Such

training and workshops amounting to UA 80,000 will be carried out on the basis of approved

annual training programmes and work plans and budgets that will specify the training needs,

nature of activities and the cost. The training programmes and work plans will be prior

reviewed and approved by the Bank. When the amount of the contract is less than UA

200,000, the Borrower may limit the publication of a Specific Procurement Notice (SPN)

requesting for expressions of interest to national or regional newspapers. However, any

eligible consultant, being regional or not, may express his desire to be short-listed.

61. Operation Costs: At central level operating expenses amounting to UA 860,000 will

be undertaken using the existing Executing Agency operational systems to cover

incremental allowances, designing and printing of promotional materials and other project

documentation, maintenance of equipment and motor vehicles as well as other approved

administrative and miscellaneous expenses. At community level sub-projects’ operational

activities and incremental expenses including the accountability requirements will be in

accordance with the guidelines to be outlined in the Participatory Adaptation Implementation

Manual.

62 Assessment of the Executing Agency: The Secretariat under the Ministry of Finance

which shall be the Executing Agency will be responsible for the procurement of goods,

works, and services. An assessment of the capacity of the Executing Agency to implement

procurement actions for the project has been carried out by the Bank. The objectives of the

assessment are to (a) evaluate the capability of the implementing agency and the adequacy of

procurement and related systems in place; (b) assess the institutional and procedural risks that

may negatively affect the ability of the agency to carry out the procurement process; (c)

develop and incorporate mitigation measures to address the identified deficiencies and

minimize the risks identified. The assessment reviewed the organizational structure for

implementing the project and the interaction between the project’s staff responsible for

procurement activities and the Executing Agency’s relevant support for administration and

finance. The resources, capacity, expertise and experience of the Secretariat are inadequate

and therefore shall require additional support with project specific staff to carry out the day to

day management of the project including procurement activities.

63. The procurement capacity assessment of the Ministry of Finance revealed that there is

inadequate staff both in terms of numbers and relevant experience in Bank procurement

- 36 -

procedures. To address these weaknesses, one procurement staff from another ministry has

been placed at the secretariat. The project will also support an extra procurement specialist

with experience in Bank procurement procedures and procurement under community based

investment projects (CBIP) while the specialized procurements (civil works –roads) in the

Kafue basin will be supported by the RDA at the Ministry of Transport, Works, Supply and

Communications. The project will also benefit from the consultancy assignment being

carried out by ASCO Consulting Firm who are carrying out studies for the civil works

component (under the supervision of the secretariat and supported by RDA). The consultant

will develop the Detailed Designs, an Environmental and Social Management Plan as well as

Tender Documents for the rehabilitation of the roads under the project.

64. The internal control of procurement processing is considerably effective; however,

there is need for termination of the dual responsibilities of the Zambia Public Procurement

Authority and establishing an independent review panel (mechanism). The ZPPA is

mandated to oversee public procurement to ensure Procuring Entities (PEs) comply with the

Act. Procurement activities are subject to regular auditing by the office of the Auditor

General. Furthermore, Zambia has recently put in place a new anti-corruption policy and the

institutional arrangement for investigations of corruption cases. Under the Act, suppliers,

contractors, and consultants are suspended or barred from participating in procurement for

any fraudulent and corrupt activities. Sections 72-74 of the Act provide for code of conduct

by public officials, bidders and suppliers (including contractors and consultants). The ZPPA

has also recently drafted a code of conduct for the public officers involved in public

procurement. Essentially, therefore, the necessary institutions and mechanisms are in place

for internal controls of the public procurement environment.

65. The Ministry of Finance practices adequate procurement and financial record keeping

and has been handling similar projects in an acceptable manner. The Ministry has adequate

control mechanism in procurement processing. The relevant project staff shall prepare all

procurement requisitions which shall be approved by superiors at the secretariat in

conformity with project requirements. The Specific procurement notices shall be approved

and advertised where necessary while under shopping a minimum of three quotations shall be

obtained for the approval of one supplier or service provider and this also goes for where

internal systems shall apply based on prior approved work plans. All tenders are evaluated by

an appointed evaluation committee whose recommendations are submitted to the Ministry’s

Tender Committee for approval before contract award. While the country’s Office of the

Auditor General carries out audits all government institutions, internal audit arrangements are

also in place. Essentially, therefore, the necessary institutions, mechanisms and measures are

in place for internal efficiency and controls.

66. The other mitigation measures taken are to ensure that the implementation

arrangements are such that procurement processing and decision making are not only

accountable but also efficient to enhance timely implementation. Procurement procedures for

the demand driven component will be incorporated in a Participatory Adaptation

Implementation Manual.

67. General Procurement Notice: The GPN text will be discussed and agreed with the

GRZ at negotiations and this will be issued for publication in the “United Nations

Development Business Journal” upon approval of the Financing by the Bank’s Board of

Directors.

- 37 -

68. Procurement Plan: The Borrower has developed a Procurement Plan for project

implementation for an initial period of 18 Months which provides the basis for the

procurement packages and methods. This Procurement Plan will be updated by the

Borrower’s Project Team quarterly or as required to reflect the actual project implementation

needs and improvements in institutional capacity. Any revisions proposed to the Procurement

Plan shall be submitted to the Bank for no objection. The Borrower shall implement the

Procurement Plan in the manner in which it has been agreed with the Bank.

- 38 -

- 39 -

69. Review Procedures: For all activities requiring Prior Review, the following

documents are subject to review and approval by the Bank before promulgation (except

where post-procurement rules apply): Specific Procurement Notices; Tender

documents/Requests for Proposals; Tender Evaluations/Evaluation of Proposals' reports,

including recommendations for contract award; and Draft Contracts, if these have been

amended from drafts included in tender documents.

70. Review Thresholds - Procurement of Goods, Works and Services: Procurement

Decisions subject to Prior Review by the Bank as stated in Appendix 1 to the Bank Rules and

Procedures for Procurement of Goods, Works and Services will be as follows:

Table B.5.3: Prior-Review Thresholds – Goods and Works

N° Procurement Method Prior-Review Thresholds UA

1 ICB (Works) All contracts

2 NCB (Works) Above 500,000

- 40 -

3 NCB (Goods) Above 100,000

4 Shopping (Goods) Above 50,000

5 Direct Contracting (Goods and Works) All Contracts Regardless of Value

Table B.5.4: Prior-Review Thresholds – Consultants

No Selection Method Prior-Review Thresholds (UA)

1. Competitive Methods (Firms/NGOs) Above 200,000

2. Competitive Method (Individual) Above 20,000

3. Single Source (Firms/Individual) All Contracts Regardless of Value

Shortlist comprising entirely of national consultants: Short list of consultants for

services, estimated to cost less than UA 200,000 equivalent per contract, may comprise

entirely of national consultants in accordance with the provisions of paragraph 2.7 of

the Rules and Procedures for the Use of Consultants.

71. Frequency of Procurement Post Review Missions: In addition to the prior review

supervision missions, bi-annual procurement post review missions will be conducted by the

Bank. The Executing Agency will maintain all relevant procurement records in accordance

with Bank requirements for all procurements subject to post review. Post Review is

recommended where the works, goods and services involved are of sSecretariatl values

(Below UA 100,000; to be procured through Local Competitive Bidding and Local

Shopping). For this reason all Community Level procurements will be subject to post review

and training for this level will be done supported by simplified procurement guidelines which

will be included in the Participatory Adaptation Implementation Manual to be used by sub-

projects. The Executing Agency and community groups shall keep a record of all relevant

procurement documents (Procurement Notices, Solicitation Documents, Evaluation Reports,

Contracts etc.) in compliance with the Bank’s Prior Review requirements (Appendix 1 of the

Bank Rules) and for audit purposes.

72. Global Action Plan for improvement to National Procurement Procedures: The

following discrepancies with the Bank’s Rules and Procedures have been identified in the

national procurement law for Zambia (ZPPA ACT) and regulations and hence the National

Procurement Procedures shall not be used for procurement activities financed by the Bank.

The table below shows the issues and required actions as outlined in the National

Procurement Procedures assessment report conducted by the Bank in June 2011.

Table B.5.5: Global Action Plan for Improvement of National Procurement Procedures

Issues Raises in the NPP Assessment Report for

Zambia Required Changes

Discrepancies identified in the National Procurement Act and its Regulations – Zambia

Principle of Eligibility: Eligibility of foreign bidders Revise the Act to include provisions for Eligibility of

foreign bidders (Bank Rules Clauses 1.6)

Principle of Fairness: Independent Complaints Review

and Appeals Mechanisms: No independent complaint

and appeals review mechanism

Revise the Act to include provisions independent

complaint and appeals review mechanism (Rules Clause

1.2).

- 41 -

Issues Raises in the NPP Assessment Report for

Zambia Required Changes

Principle of Fairness: Application of margin of

domestic preference: Unclear margin of domestic

preference

Revise the Act to include provision margin of domestic

preference (Bank Rules Clause 2.55),

Principle of Fairness: Dual role of ZPPA in

procurement decisions and oversight.

Revise the Act to remove provision on the dual role of

ZPPA in procurement decisions and oversight (Bank Rules

Clause 1.2).

Discrepancies identified in the National Standard Bidding Documents

The SBDs for Goods and Works do not meet Bank

requirements due various deviations reflected in the

Act and regulations.

Revise the Act and subsequently the SBDs for Goods

and Works taking into account all Bank’s Rules and/or

based on Bank’s SBDs and issue them for use by

Procuring entities.

ANNEX B6 : FINANCIAL AND ECONOMIC ANALYSIS

73. The financial and economic assessment is based on the assumptions that: (i) the

project will be fully implemented and in a timely manner; (ii) The project is expected to

generate direct benefits for about 800,000 people, 300,000 of which were expected to live

below current poverty line; (iii) the number of possible farm households is 160,000, on the

basis of 5 family members; (iv) the size of the potential farmland is 240,000 ha, on the basis

of an average farm size of 1.5 ha, of which 96,000 ha or 40% of the potential farmland can be

cropped; (v) only 45% of the cropland or 43,200 ha are considered for cropping and 52,800

ha are the natural tree cover for the ecological balance, in line with good farming practices;

(vi) the period of the analysis is 20 years, in accordance with the cropping cycle patterns and

the duration of the farm investment; (vii) The average opportunity cost of capital estimated at

11.5 % was used for discounting, as the project resources are fungible and can be used for

other alternative uses, including in sectors other than the climate resilience; and (vii) the

assessment of the project’s worth was carried with respect to the overall project cost, as

opposed to a component-by-component approach analysis, as components are not

implemented on a stand-alone basis.

74. On the basis of the above-captured assumptions, the project is expected generate the

following benefits: (i) improved production of non-timber forest products from the 52,800-ha

natural tree cover, such as, honey, mushrooms, medicinal plants, edible fruits, grains and

plants, products from game ranching; (ii) Improved crop production from 43,200 ha,

including, sugarcane, cotton, maize, cassava, vegetables, and legumes; (iii) improved

livestock products, such as, chicken, goats, sheep, and pigs; (iv) improved fish production

from the restocking of ponds and water bodies. (v) indirect benefits, such as: (a) project

worth resulting from carbon sequestration, (b) reduction of post-harvest losses (PHL), as

result of establishment of access roads connecting farms to markets, (c) improved welfare

resulting from access to social services, with the reduction of the medical bill, and

(d) reduction of women household chores (whc); thereby increasing the productivity in

cropping requiring women labor. These benefits that were captured in the analysis can be

summarized as follows:

Summary of Project Benefits N° Non-timber forest

products Crops Production Livestock

Production Fisheries Production

Indirect Benefits

- 42 -

1 Honey Sugarcane Poultry Fresh water fish Reduction in PHL

2 Mushrooms Cotton SSecretariatl ruminants

Aquaculture fish Carbon sequestration

3 Medicinal plants Maize Pigs Population welfare

4 Edible fruits & grains Cassava Reduction in WHC

5 Game ranching Vegetables

6 Legumes

75. Financial Performance: the financial analysis was carried with Farmod approach

based on: (i) crop and activity models using prevailing 2013 market prices of productions and

inputs (investment and operating inputs, including, planting materials, fertilizers, irrigation,

sSecretariatl equipment, and labor); (ii) area/family household models or farm models; and

(iii) farm distribution. In this condition, the analysis generated NPV, IRR and B/C ratio equal

to 356.22 million, 15.12 % and 1.61, respectively, as captured below:

SUMMARY OF THE FINANCIAL ANALYSIS

(MZW million)

ITEMS

Situation without project

Situation with project

1 to 20 1 2 3 4 5 6 to 20

PRODUCTION 900,70 900,70 1 600,70 3 498,23 5 465,11 6 017,10 8 921,28

Sugarcane 132,00 132,00 132,00 667,01 900,46 1 215,63 1 641,09

Cotton 108,70 108,70 108,70 501,22 676,65 913,47 1 233,19

Food Crops (Maize & Rice Income) 336,60 336,60 693,60 1 188,30 1 982,88 1 982,88 3 083,97

Vegetables (Potatoes, Beans & Tomatoes Income)

115,5 115,5 238 407,75 680,4 680,4 1 058,23

Fisheries Income 56,1 56,1 115,6 198,05 330,48 330,48 514,00

Livestock (SSecretariatl Ruminants & Pigs Income)

151,8 151,8 312,8 535,9 894,24 894,24 1 390,81

PRODUCTION COSTS

Sugarcane Production Investment 0,00 9 988,51 8 172,41 0,00 0,00 0,00 0,00

Sugarcane Inputs Costs 93,85 93,85 147,47 252,81 421,36 421,36 655,56

Sugarcane Operating Costs 250,26 250,26 393,27 674,17 1123,62 1123,62 1748,17

Sugarcane Hired Labor Costs 156,41 156,41 245,79 421,36 702,26 702,26 1092,61

Sugarcane Production Taxes 130,82 130,82 205,57 352,41 587,35 587,35 913,82

Food Crops Investment Equipment 105,52 105,52 217,44 372,53 621,63 621,63 966,82

Food Crops Inputs & Operating Costs

57,56 57,56 118,61 203,20 339,07 339,07 527,36

Food Crops Production Labor 47,97 47,97 98,84 169,33 282,56 282,56 439,47

Vegetables Investment Equipment 34,94 34,94 72,00 123,34 205,82 205,82 320,11

Vegetables Inputs & Operaing Costs

19,06 19,06 39,27 67,28 112,27 112,27 174,61

Vegetables Production Labor 15,88 15,88 32,73 56,07 93,56 93,56 145,51

Fisheries Production Investment 15,74 15,74 32,43 55,55 92,70 92,70 144,18

Fisheries Operating Costs 8,01 8,01 16,51 28,28 47,19 47,19 73,40

Fisheries Production Labor 5,72 5,72 11,79 20,20 33,71 33,71 52,43

Fisheries Production Taxes 2,00 2,00 4,13 7,07 11,80 11,80 18,35

Livestock Production Investment 39,24 39,24 80,86 138,53 231,16 231,16 359,52

Livestock Operating Costs 21,40 21,40 44,10 75,56 126,09 126,09 196,10

Livestock Production Labor 17,84 17,84 36,75 62,97 105,07 105,07 163,42

PROJECT COSTS (Revised) 0,00 1 150,54 928,64 550,00 97,02 213,35 0,00

Discounted Factor @11,5% OCC

NPV = 356.005.765,22; B/C Ratio = 1,61; IRR=15,12%

SENSITIVITY ANALYSIS

Decrease in commodity Prices Corresponding IRR Value

- 43 -

-5% 15,12%

-10% 14,75%

-15% 14,02%

-20% 13,37%

-25% 12,91%

Switching Value

-34.01% 11.50% (*)

76. Economic Performance: The economic analysis was conducted with the same

approach on the basis of shadow prices (prices in conditions of efficient market operation) of

tradable crops (maize, cotton, and sugar cane) or parity prices at farm gate (farm gate prices).

Although maize is not exported, it was treated in the analysis, as import substitute. In

addition, other benefits were included, such as, the carbon sequestration, farm to market

access road benefits (increase volume and frequency of marketable crops), access to social

services benefits (reduction in the medical bill) and the reduction of women’s households’

chores (increased productivity). However, these additional benefits which were computed

using dose responses, captured benefits only partially. In these conditions, the economic

analysis yielded an NPV, ERR and B/C ratio equal to 489.11 million, 16.89% and 2.02,

respectively, as captured hereafter:

SUMMARY OF THE ECONOMIC ANALYSIS

(MZW million)

ITEMS Situation without project Situation with project

1 to 20 1 2 3 4 5 6 to 20

PRODUCTION 2 230,30 2 230,30 3 580,32 5 827,16 9 579,56 9 784,04 15 057,95

Sugarcane 1 137,55 1 137,55 1 787,57 3 064,41 5 107,35 5 107,35 7 946,22

Cotton 432,75 432,75 432,75 432,75 584,21 788,69 1 064,73

Food Crops (Maize & Rice Income) 336,60 336,60 693,60 1 188,30 1 982,88 1 982,88 3 083,97

Vegetables (Potatoes, Beans & Tomatoes Income) 115,5 115,5 238 407,75 680,40 680,40 1 058,23

Fisheries Income 56,1 56,1 115,6 198,05 330,48 330,48 514,00

Livestock (SSecretariatl Ruminants & Pigs Income) 151,8 151,8 312,8 535,9 894,24 894,24 1 390,81

Credit from Carbon sequestration 0 0 0 98,77 113,59 130,62 150,22

Savings in Medical Bill 0 0 0 59,55 65,51 72,06 79,26

Gains from Reduction of PHL 0 0 0 135,33 155,63 178,97 205,82

9.00%

10.00%

11.00%

12.00%

13.00%

14.00%

15.00%

16.00%

0% 5% 10% 15% 20% 25% 30%

I

R

R

Decrease in Commodities Prices

- 44 -

ITEMS Situation without project Situation with project

1 to 20 1 2 3 4 5 6 to 20

Increased Productivity of Women 0 0 0 27,24 32,69 39,23 47,07

PRODUCTION COSTS

Sugarcane Production Investment 0,00 9 596,70 8 005,55 0,00 0,00 0,00 0,00

Sugarcane Inputs Costs 93,85 93,85 147,47 252,81 421,36 421,36 655,56

Sugarcane Operating Costs 250,26 250,26 393,27 674,17 1123,62 1123,62 1748,17

Sugarcane Hired Labor Costs 156,41 156,41 245,79 421,36 702,26 702,26 1092,61

Sugarcane Production Taxes 130,82 130,82 205,57 352,41 587,35 587,35 913,82

Food Crops Investment Equipment 105,52 105,52 217,44 372,53 621,63 621,63 966,82

Food Crops Inputs & Operating Costs 57,56 57,56 118,61 203,20 339,07 339,07 527,36

Food Crops Production Labor 47,97 47,97 98,84 169,33 282,56 282,56 439,47

Vegetables Investment Equipment 34,94 34,94 72,00 123,34 205,82 205,82 320,11

Vegetables Inputs & Operaing Costs 19,06 19,06 39,27 67,28 112,27 112,27 174,61

Vegetables Production Labor 15,88 15,88 32,73 56,07 93,56 93,56 145,51

Fisheries Production Investment 15,74 15,74 32,43 55,55 92,70 92,70 144,18

Fisheries Operating Costs 8,01 8,01 16,51 28,28 47,19 47,19 73,40

Fisheries Production Labor 5,72 5,72 11,79 20,20 33,71 33,71 52,43

Livestock Production Investment 39,24 39,24 80,86 138,53 231,16 231,16 359,52

Livestock Operating Costs 21,40 21,40 44,10 75,56 126,09 126,09 196,10

Livestock Production Labor 17,84 17,84 36,75 62,97 105,07 105,07 163,42

PROJECT COSTS 0,00 950,54 928,64 550,00 97,02 213,35 0,00

Discounted Factor @10% OCC 1,00 0,8969 0,8044 0,7214 0,6470 0,5803

NPV = 489.108.285,35; B/C Ratio = 2,02; ERR=16,89%

SENSITIVITY ANALYSIS

Decrease in commodity Prices Corresponding ERR Value

-5% 16,89%

-10% 16,05%

-15% 15,71%

-20% 15,11%

-25% 14,68%

Switching Value

-41.22% 11.50% (*)

(*) OCC: opportunity Cost of Capital

9.00%

10.00%

11.00%

12.00%

13.00%

14.00%

15.00%

16.00%

17.00%

18.00%

0% 5% 10% 15% 20% 25% 30%

E

R

R

Decrease in Commodities Prices

- 45 -

- 46 -

ANNEX B7: ENVIRONMENTAL AND SOCIAL ANALYSIS

77. The National Conservation Strategy (NCS) was adopted as a policy document by the

Government of the Republic of Zambia in 1985 which led to the establishment of

environmental legislation and institutional set up in the country. The Environmental Impact

Assessment (EIA) process in Zambia is governed by the provisions of the Environmental

Protection and Pollution Control Act (EPPCA) No. 12 of 1990, Statutory Instrument No. 28

of 1997–the Environmental Impact Assessment Regulations. Under EPPCA, it is mandatory

that all development plans, policies and projects undergo a process of environmental impact

assessment and an administrative clearance by the Zambia Environmental Management

Agency (ZEMA) in conformity with the provision of the Act. ZEMA is a statutory body

created under the EPPC Act in 1992 with the mandate of environmental protection, pollution

control, and monitoring implementation of mitigation measures highlighted in environmental

and social management plans. SCRIKA is covered by a Strategic Environmental and Social

Assessment (SESA) which was prepared by the NCCS in accordance with the Zambia

environmental regulations and the AfDB’s Environmental and Social Assessment Procedures

(ESAP:2001).

78. The Project is classified as Environment Category 2. It is expected to generate both

positive social-economic and environmental impacts that will outweigh the likely negative

impacts. The infrastructure to be developed/rehabilitated will be small-scale in nature

(community level infrastructure) and hence will not induce any potential, significant or

irreversible environmental and social impacts. In addition, the project will not involve land

acquisition or resettlement. The negative impacts will include: (a) increase in soil erosion

related to construction and rehabilitation activities particularly in degraded lands with loose

soils, (b) Increased turbidity in water sources from effluent or runoff containing high content

of suspended solids from construction sites. In addition, accidental spillage of fuel, lubricants

and other chemicals used in the construction process and wastewater from workers’ camp

would likely be a source of water contamination, (c) Limited clearance of vegetation covers

during the construction phase may occur at the construction sites, and at borrow pits.

Removal of vegetation cover would increase erosion potentials and dusts generation into the

air. The level of impacts depends on: land area to be cleared and density of existing

vegetation cover, which is associated with the amount of waste to be generated and physical

characteristics of the soil, (d) Increased localized noise levels and vibration due to

earthmoving equipment and machinery, construction plants and construction activities such

as piling, excavation or installation of equipment, loading of construction materials, concrete

pouring, drilling. Increased localized noise levels usually occur in short term. The scope of

impacts would depend on (i) number, frequency and working durations of noise sources, and

(ii) time of the day (night time), (e) Reduced localized air quality due to dust from

construction sites and surrounding areas, include the areas along materials transportation

route affect localized air quality. Increased dust level along the road used for transportation of

as granular construction materials drop, dust from temporary loading of granular construction

materials such as sand or stockpile from excavation works, dusts from construction waste

dumping sites. The impacts usually last in a relative short time, are of low magnitude but can

causes nuisances to local people, and disturb local daily life. The scope of impacts depends

on, (i) the number and frequency of vehicles in use, (ii) the quantity of granular materials to

be temporarily loaded at a time, (iii) the size of the granular materials, and (iv) weather

conditions, and dust emissions, (f) During the operational phase the likely impacts would

include solid waste and effluent from the agro-processing.

- 47 -

79. Positive impacts on the environment are likely to result from the community-driven

adaptation activities which promote the use of sustainable land and water management

practices incorporated into the main agricultural production systems. The adaptation activities

will include micro-projects for flood control and diversion structures, small-scale irrigation

schemes, improved wells and boreholes, reforestation of small-scale community forestry,

conservation agriculture, livestock and fisheries for diversification of farming systems, etc.

Positive environmental impact will likely include reduced soil and water erosion, increased

soil fertility through moisture retention, safeguards/buffers against floods (increased

resilience against climate variability in the form of floods), and potential in reducing

greenhouse gas emissions through the use of approaches such as conservation agriculture.

Potential positive impacts include improved moisture retention and soil composition from

agriculture diversification, control of soil erosion, increased agro-biodiversity, reduced water

stress, control of disease vectors, and enhanced community skills for better land use planning

and management.

80. Positive socio-economic impacts will be generated from increased agricultural

productivity which in turn will generate multiplier effects on the targeted communities

through increased income and creation of job opportunities especially to the thirty percent of

targeted women. Rehabilitation works on the existing rural roads will entail upgrading of

drainage systems to climate proofed design standards, dredging and erosion control measures

(embankment stabilization with earthworks and vegetative approaches). The infrastructure

works will enhance the climate resilience of against floods. The road works will be limited to

existing road alignment and right of way.

81. Climate Change: The Project area is experiencing increased frequency and intensity

of droughts, as well as periods of floods. The project activities will promote climate change

adaptation and foster livelihoods diversification which will ultimately enhance the climate

change adaptive capacity of the communities and natural resources production systems. The

Project will support sustainable land and water management technologies, water storage

infrastructure, conservation agriculture, etc. in building the adaptive capacity of the farmers

and the agricultural production systems, and climate proof farm-to-market rural roads to

enable them to withstand period of floods. Over the last four decades, the Kafue basin has

experienced an increased mean annual temperature of 1.3 degrees C, and decreased mean

rainfall of 1.9mm/month, whereas rainfall seasons have become less predictable and shorter,

with rainfall occurring in fewer but more intense events. From 2000 to 2007, the intensity and

frequency of droughts and floods and the number of people affected has also changed, with a

net trend towards more floods and, over a longer time-period, droughts. Moreover, the area

affected by floods and droughts appears to have expanded. The 2006/07 floods affected 41

districts in nine provinces, and the 2004/05 drought left nearly two thirds of Zambia with

little or no rainfall. Both average annual temperature and rainfall are projected to increase by

3.6 degrees C and 3% respectively by 2100. The predominant coping strategies adopted by

the communities, include, reducing meal quantities, numbers and composition (shifting to a

vegetable only diet and relying on less preferred wild foods. The Project activities will

promote climate change adaptation and foster diversification of livelihoods which will

ultimately enhance the climate change adaptive capacity farmers and natural ecosystems. The

project will significantly support the adoption of sustainable management of land and water

resources, strengthen adaptive capacity of communities through training and develop skills

and demonstration sites for conservation during the dry seasons, restoration of degraded lands

and increased vegetation cover with different drought perennials.

- 48 -

82. Instittutional Arrangements: The Project will strengthen the capacity of the Secretariat

in undertaking safeguard issues by supporting the procurement of a safeguard specialist.

ZEMA as a regulatory agency is professionally staffed with demonstrated effective

enforcement of environmental regulations. ZEMA works closely with the Environmental

Officers at the line Ministries who are responsible for site level environmental management

of project activities. The Secretariat as the executing agency will be required to prepare site-

specific design stage ESIA studies during implementation of the Project in compliance with

the Zambia EIA Law and the Bank’s Environmental and Social Assessment Procedures.

Annual Audits on the implementation of ESMPs will be prepared by the Secretariat and

submitted to ZEMA. The Secretariat bears the full responsibility of preparing the studies.

During project implementation, supervision and monitoring will be very crucial to ensure that

the proposed mitigation measures are implemented. The Secretariat together with ZEMA will

responsible for monitoring of the environmental and social aspects of the Project. Indicators

for monitoring changes in the physical, biological and socio-economic environments should

be developed during the preparation of the design stage site specific ESIA and ESMPs, and

the monitoring component fully elaborated as part of the detailed site specific assessments.

- 49 -

Table 1: Summary of Environmental and Social Management Plan

SUBPROJECT ENVIRONMENTAL IMPACTS MITIGATION/ENHANCEMENT MEASURE(S) RESPONSIBILITY CAPACITY BUILDING

Agriculture and Livestock

Practices

Land Husbandry

Introducing/scaling-up

conservation tillage and

soil moisture retention -

improved management

of soil moisture through

use of mulch/organic

matter and conservation

of soil organic matter;

Increased pressure on land as

demand is likely to be triggered by

improved incomes from good soil

management and moisture retention

Intensives use of land may lead to

unsustainable land use practices such

as increased/inappropriate use of

pesticides and fertilisers

Increased land clearing that may

result in deforestation, land

degradation and soil erosion

“Composting” of animal manure, grass and plant

material for application to fields – for increased

soil moisture retention and improved soil texture

in sandy areas such as those the Barotse Sub-

basin

Use of mulch/organic material to reduce loss of

soil moisture through evapotranspiration

Sensitisation and capacity building on land

planning use management

Promotion of good land use planning and

practices such as terracing on steep slopes

Promotion of agroforestry as part of erosion

control measures

Promote erosion control along areas adjacent to

the canals

SPIU

MOF district

extension staff

DTOs

NGOs/CBOs

Sensitisation campaigns on

land management in the

context of climate change

Training in environmental

and land husbandry practices

Training in conflict resolution

Strengthening of extension

skills and mentoring support

provided by both government

and NGO facilitators

Crop Husbandry

Diversifying

agricultural

practices such as

crops/varieties

grown including

those that can be

drought tolerant or

grown under water

logged conditions

or staggering time

of plantings;

Changing times for

applying

agriculture inputs

to take advantage

of available

moisture and

rainfall;

All year round crop production is

likely to increase demand for water

leading to construction of weirs and

small dams which may affect water

flows downstream,

Diversification to climate resilient

crops may introduce some invasive

species

Use of chemical fertilizers likely

impact the environment and affect

the quality of water in the rivers and

streams

Increased crop production will likely

increase the use of

herbicides/pesticides which will

affect the environment and the

quality of water

Increased crop production likely

increase demand for improvement of

market centres and access (feeder)

roads and farm-to-market road

network which will impact the

environment (see section on rural

Introduce good practices for water resources

sharing and management that reduce/eliminate

water conflicts

Utilise furrows and drainage canals to drain

excess water from fields to allow early planting

Utilise water conservation technologies and

strategies to reduce demand for ground and

surface water

Introduce good crop husbandry planning and

farming best practices that include ideal timing

for planting and application of soil nutrients

Promotion of organic farming alongside

conservation agriculture

Introduce management plans for appropriate use

of fertilisers

Develop a pesticide management plan (PMP)

that adheres to WB and AfDB safeguard policies

and ZEMA regulations

Promote use of integrated pest management and

only use herbicides/pesticides as a last resort

particularly near rivers, streams, canals and small

dams

Use pesticides/agro-chemicals with short residual

SPIU

MOF district

extension staff

DTOs

NGOs/CBOs


crop and horticultural

production in the context of

climate resilience

Training in climate resilient

agricultural practices

Training in good fertiliser and

pest/pesticide management in

environmentally sensitive

environments

Training in post-harvest

technologies, value addition

and marketing

Sensitisation in basic

requirements of

environmental safeguard

policies and local legislation

- 50 -

roads below) period

Avoid introducing alien plant species or crop

varieties that may be invasive

Animal Husbandry

Diversifying livestock

production (small

livestock raised) and

when appropriate

culturally or land-use

wise use /or integration

of crops and livestock

(e.g. goats, sheep,

chickens) in a mixed

farming system

Improved management

of pastures/ grazing land

Livestock production

(increase proportion of

climate resilient

livestock or increased

livestock variety)

Clearing of land to create grazing

fields

Increased numbers of climate

resilient livestock may result in over

exploitation of natural resources that

include water and pasture land

Contamination of water bodies at

livestock watering points/crossing

points

Unsustainable use of wetlands for

grazing and watering animals during

dry periods of the year may disrupt

wetland ecological processes

introduce mixed farming approaches by

integrating crop and livestock production systems

avoid overgrazing due to overstocking through

effective control of livestock numbers staying

within carrying capacity of the land

Put in place effective soil erosion control

measures for managing pastures and reduces

contamination of water at livestock watering

points

Where feasible and culturally acceptable,

consider introduction of rotational grazing and

zero-grazing supported by production of fodder

crops

Mix different livestock species (goats, sheep,

cattle, donkeys) to fully exploit vegetation

resources

Where feasible, consider reforestation and

replanting of climate tolerant grass varieties

Community sensitization on good pasture

management and use of communal feedlots and

introduction of fodder crops

SPIU

MOF district

extension staff

DTOs

NGOs/CBOs


livestock diversification and

pasture management

Training in good livestock

production, including

breeding


requirements of



Small-Scale Aquaculture-

Construction/rehabilitation of

fish ponds in order to ensure

supply of fish throughout the

year

Restocking of fish ponds

Poor aquaculture management may

disturb the bio-diversity of the

ecosystem

Aquaculture may result in the

introduction of alien fish species

some of which may be invasive

Select locations which do not have other

important land uses e.g. use of existing

depressions, hollows and ditches.

Avoid siting points adjacent to areas with high

biodiversity values

Construct ponds in a manner that ensures good

drainage and erosion control

Plant vegetation (trees and grasses) on the edges

and between ponds

Good aquaculture management should be

promoted to ensure that there are no direct threats

to the ecosystem and to the indigenous fish

species.

SPIU

MOF district

extension staff

Fisheries Dept.

DTOs

NGOs/CBOs

Specialised training in

aquaculture management

through short courses and/or

exchange visits

Training in biodiversity

management and

conservation of fragile

ecosystems through short

courses and/or exchange

visits

Community level water

Infrastructure(boreholes ,

wells small dams, reservoirs,

weirs, small scale Irrigation

Schemes)

Inadequate access to water may lead

to inappropriate use or over

exploitation of existing resources

such as wetlands

flooding likely to lead to loss of

Rehabilitate boreholes/wells that provide water in

all seasons

Construction of small-scale water regulation

structures (flood gates, canals, weirs and small

dams)

SPIU

MOF district

extension staff

Water Affairs

Dept.

Basic training in integrated

water resources management

and conservation of natural

habitats through short courses

and/or exchange visits

- 51 -

To provide access to water

during prolonged droughts

Prevent waterlogging and

manage water flows during

prolonged flooding

Water aquaculture

production

flood control, erosion

control

recreation facility for local

tourism

-

natural habitat and altered aquatic

life

Disruption of water flow

downstream

Disruption of fish migration

Disruption of flow of sediments with

a high nutrient value

Siltation in the absence of good

erosion control

Water logging

Soil erosion and degradation

Clearing of vegetation to increase

irrigated area

Increased use of agrochemicals and

fertilizers due to increase agricultural

production under irrigation scheme

Construction of ponds/canals for water retention,

storage and drainage

Avoid construction of small water structures near

or adjacent to protected areas or natural habitats

e.g. wetlands

Planting of trees and grasses to protect dam walls

as soil erosion prevention measure

Promote appropriate use of fertilizers and agro

chemicals in the area near or adjacent to the small

dam or reservoir or canals

Siting of small irrigation schemes in less climate

sensitive terrain such steep slopes

Promote cultivation of crops that require less

water

Ensure full community involvement in the

control and distribution of water

DTOs

NGOs/CBOs

Basic training in water use

and resource management in

relation to smallholder under

irrigation through short

courses and/or exchange

visits

Wildlife Sanctuaries,

communal game ranching

In areas near national parks and

game management areas,

infrastructural sub-projects may lead

to destruction of natural habitat that

result in the

- displacement of wildlife;

- blocking of wildlife

migration routes

- competition for pasture

between domestic and wild

animals

Fencing off of protected wildlife habitats

(national parks and game management areas)

Consider the possibility of establishing wildlife

sanctuaries or wild life estates linked to income

generation through tourism

Establish communal game ranching to ensure

conservation of wildlife/natural resources

supported by income generation through tourism

and controlled game hunting

SPIU

MOF district

extension staff

DTOs

NGOs/CBOs

Specialised training in

wildlife management and

game ranching

Training in biodiversity

management and

conservation of fragile

ecosystems

Training Business

management and

entrepreneurial skills through

short courses and/or

exchange visits

Community forests,

reforestation

Effective benefit-sharing

ensures sustainable

management of community

forests

Increased pressure on land due to

increased farming activities may

result in unsustainable utilisation of

natural resources such as

deforestation, encroachment on

watershed areas and dambos, soil

erosion etc.

Illegal logging of timber may lead to

large scale deforestation and

destruction of natural habitats

Introduction of invasive tree species

(e.g. black wattle) may threaten the

ecosystem

Establishment of forests managed by the

community drawing on local culture, traditions

and indigenous knowledge

Avoid locating forests near or adjacent to

protected areas such as wetlands, watershed and

areas with high biodiversity value e.g. the Kafue

Flats and Barotse Plains

Establishment of tree nurseries including fruit-

tree seedlings

Tree planting of fast growing indigenous tree

species using local labour

Ensure well-planned harvesting of trees e.g.

unconnected blocks

SPIU

MOF district

extension staff

DTOs

NGOs/CBOs

Basic training in

management and forests and

conservation of natural

habitats through short courses

and/or exchange visits

Training in business

management and

entrepreneurial skills through

short courses and/or

exchange visits

- 52 -

Promote the use of non-timber forestry products

(NTFPs – e.g. wild fruits, honey, mushrooms,

caterpillars)

Roads

Upgrading and

maintenance of

community feeder roads

in the Kafue Sub-basin

Rehabilitation of

community road

infrastructure (farm-to-

homestead) to climate

resilience standards

Increased pressure on natural

resources (land, water, forests) as a

result of influx of population due to

voluntary settlement along the

improved roads

Loss of natural vegetation near

roads/important habitats

Air pollution (increased dust) during

construction/ rehabilitation of roads

extraction of road construction

materials e.g. gravel from borrow-

pits

Disruption of water flow /blocked

drainage at culverts and bridges

Contamination through accidental

spillage of lubricants and fuels

Promote controlled settlement along improved

roads with assistance of traditional and local

authorities

Minimise clearing of vegetation

Institute erosion control measures especially at

culverts/bridges

Design roadside drainage control

(culverts/bridges that can handle anticipated

water flows

Ensuring culverts and bridges of correct size and

are installed at strategic points along the road

Ensure adequate and timely maintenance of

culverts and bridges

Put in place measures to prevent spilling of oils

and fuels and where feasible, recycle used oils.

SPIU

MOF district

extension staff

MTWSC

DTOs

NGOs/CBOs


and natural resources

management in relation to

road construction


requirements of



Training in conflict resolution

Protection of local

infrastructure and assets

Climate proofing of local

community

infrastructure such as

community service

centres (markets, clinics,

schools etc)

No major environmental impacts are

anticipated from the sub projects

Strengthening of local planning processes,

participatory land use planning, development

planning, community planning of protected area

planning

Siting and construction of new buildings in areas

which are shielded from floods, storms and

strong wind

Construction of drainage/storm drains protect

fields from floods

Construction of gabions and other

stabilization/erosion prevention structures to

protect fields

Siting and construction of construction of ponds,

channels for water retention, storage and

directing running off

Dredging, ditching, construction of cut-off

channels direct water flow

SPIU

MOF district

extension staff

MTWSC

DTOs

NGOs/CBOs


environmental and natural

resources management


protection and ecosystems

planning and management


requirements of



Enhanced Local capacities for

coping with Climate Change

Support to community

level climate adaptation

No major environmental impacts are

anticipated from the subprojects

Develop mechanisms’ for Climate vulnerability

and hazard mapping

Strengthening the level of community

organisations e.g. water users associations,

traditional structures

Development of climate information management

SPIU

MOF district

extension staff

ZMD

DTOs

NGOs/CBOs

Sensitisation and training in

climate information systems

change adaptation including

vulnerability and hazard

mapping


- 53 -

systems that tap into both modern and tradition

weather warning systems

Strengthening of local climate resilience

structures such as Satellite Disaster Management

Committees, Community, Water User

Associations, Village Development Committees,

Marketing Associations, Women Development

Groups, Youth Organizations

Strengthening of community level organisation

and governance

Strengthening of traditional institutions in climate

resilience

requirements of



- 54 -

Table 2: Environmental and Social Monitoring Plan

ISSUE METHOD OF MONITORING AREAS OF CONCERN POSITIVE INDICATOR FREQUENCY RESPONSIBLE

AUTHORITIES

Soils The Developer should make a daily inspection of earth works, and ensure that slopes are suitably graded. Once earthworks are complete the PCU should monitor the restoration measures implemented by the Contractor, such as re-vegetation

Soil erosion

Conservation activities

Rangelands management

an absence of rills, gullies or other erosion features occurs

Regularly and on-going as project is implemented

Department of Forestry

Vegetation The farmers must clear area to be used and site works only.

Clearing of the project site and disturbance of animals.

flora and fauna

No unnecessary vegetation cleared

Regularly and ongoing as project is implemented

Department of Forestry

Zambia Environmental Management Agency (ZEMA).

Animals

(Game corridors)

The farmers and the Environment Department staff should carry out regular inspections of the area and check that usual animal access routes are maintained.

Game corridors

Usual animal access routes are maintained /not disrupted. Reduced, human, animal conflict.

Regularly and on-going as project is implemented


Zambia Wildlife Authority

Birds Interference with nesting sites Nesting sites

Migratory routes

Reproductive patterns of birds undisturbed




Small mammal habitat loss

Ensure that no unnecessary habitat loss occurs. Animal habitats No Mammal are displaced from their habitats.




Poaching Monitoring is the responsibility of the Zambia Wildlife Authority and the Police Departments.

Poaching Number of poaching incidences reduced or eliminated.




Police department

Crime The PCU should Liaise with police department if crime/theft becomes a problem.

Criminal activities in the area

Crime theft kept to a minimum. Incidences of stock theft and house breaking minimized.



Police department

District Administrator

Noise Noise monitoring should be carried out on an ad-hoc basis by the Environmental Monitor or the PCU to establish noise levels in the work areas.

Noise Levels Noise levels at the nearest sensitive receiver would be kept to a minimum.

Regularly and ongoing as project is implemented.

Ministry Of Health


Health The PCU must ensure that education and awareness campaigns are implemented. The Ministry of Health, local authority should carry out awareness campaigns on animal related diseases, water-borne diseases and carry out vector control methods such as regular spraying of potential breeding sites (ponds)

Public health

Ensure that stagnant water is sprayed to destroy mosquito larvae.

Waste management at Sub-project sites.

Disease outbreak due to concentration of people at the Sub-project sites.

Disease outbreak due to dust and water pollution.

Control and management of various animal

Reduction in number of cases of such diseases as Avian flu, foot and mouth, AIDS/STD related diseases recorded at hospital and medical clinic

Reduction in number of diseases such as cholera


Health ministry

Project PCU

SECRETARIAT

- 55 -

diseases

Archaeology Provision should be made to allow archaeologists to be present on site during the excavation periods if they so wish. The PCU should inspect all excavations, and where archaeological remains are found work must stop until the PCU has given the all clear to proceed. The PCU should contact the Museums Authorities in the event of a significant archaeological find.

Archaeological Findings

Archaeological remains not excavated, disturbed or destroyed.


Room for chance finds

National Heritage Conservation Commission

Energy The Developer must inspect the provisions made by the Contractor to supply energy to the workforce, and ensure that fuel wood is not being collected. The Environmental Department should enforce legislation which prohibits cutting down of trees. The Environmental Department, PCU and local leadership (cultural and political) should sensitize the workers against cutting down of trees.

Types of energy sources used in the project

Energy supplied by electric generator or other suitable source. Deforestation and resultant erosion controlled and reduced

Regularly Department of Forestry.


Air Pollution Observations should be made on the level of dust generated during the Agricultural Activity implementation by the Environmental Monitor or PCU. Dampening should be carried out if levels are unacceptable.

Levels of dust emissions

Deposition of dust on surfaces should decrease with increased dampening

Regularly Health ministry

Project PCU

SECRETARIAT

Water resources Water resources should be managed well

The Ministry of Health should test borehole water quality in the area to ascertain the suitability for human consumption.

Watercourses and impoundments.

Surface water quality

Ground Water Quality

Recommended distances from watercourses.

Possible dam construction sites.

Water made available for environmental concerns.

Pollution of water resources monitored/detected early and remedial measures taken on time

Tests for water pollution to be done regularly

Health ministry

Project PCU

SECRETARIAT

Department of Water Development, (DWD)


Landscape The PCU should make visual inspection of earth works to ensure that excessive excavation is not being carried out. Temporary screening may be appropriate in some cases.

Visual intrusions

Aesthetics

Landscape alteration reduced to a minimum

Monthly National Heritage Conservation Commission


Complaints The PCU should inspect the record of complaints made by local residents, to be kept by the farmers, and should check that action is taken quickly and that the number of complaints do not rise significantly.

Complaints Number of complaints decreases.

Regularly Project PCU

SECRETARIAT


Local governance MLGC to ensure the following

compliancy to designs

Employment opportunities and recruitment are transparent.

Allocation of land is overboard

Cultural values are respected.

Land management

Land allocations

Socio cultural issues

Local governance

Social Aspects,

Land rights

Disputes over land reduced

Cooperation of local leadership is secured

Locals employed in the projects

Regularly Ministry of Local Government

District Councils

Project PCU

SECRETARIAT

Agricultural Activities

Ensure that Agricultural Activities follow designs and recommendations given for proper agricultural practices.

Ensure overall management of the Programme.

Appropriate land use downstream is done and no pollution of crops from contaminated water from spillages occur.

Siting of works, plan Land degradation curbed

Program running smoothly

Regularly PCU

SECRETARIAT

- 56 -

Table 3: Total Cost for the ESMP (in U.S. dollars) and disbursement schedule

Year 1 Year 2 Year 3 Year 4 Year 5 Total

1. Training and Workshops 14,400 14,400 14,400 43,200

2. Site-specific ESMPs 30,000 30,000 60,000

3. Mitigation measures 42,000 42,000 42,000 42,000 42,000 210,000

4. Monitoring 10,000 23,793.75 23,793.75 23,793.75 23,793.75 105,175

5. Annual Audit 10,000 10,000 10,000 30,000

6. End-of Project Audit 10,000 10,000

Total 458,375

- 57 -

83. Social Analysis: Poverty rates have remained high in Zambia and recent statistics

indicate that about 60% of the population is still living below the poverty datum line. Other

social challenges include high levels of unemployment especially among the youth and rural

areas are characterised by high illiteracy rates, high incidence of HIV/AIDS, limited access to

infrastructure and services. In the education sector, rural\urban and feSecretariate\Secretariate

gaps in literacy continue to remain wide. Poor school infrastructure in rural areas affects

enrolment and completion rates. Unemployment especially among the youth has increased

from 22% in 2008 to 28% in 20104. The prevalence and incidence of HIV/AIDS is estimated

at 16% among adult ages 15 – 49. Although the epidemic is showing signs of stabilization in

urban areas, the rates continue to rise in some rural areas. The risk posed by HIV/AIDS

pandemic will be mitigated by awareness campaigns and incorporation of HIV/AIDS

messages in training. The project will use Secretariat’s HIV/AIDS extension tools in

disseminating HIV/AIDS prevention, treatment and care information for staff and farmers.

The project will also improve the nutritional status of affected rural households and

communities through consumption of meat and milk products which are rich in proteins.

84. The broader stakeholder participation and partnerships in project activities will

enhance social coherence and stability which are key ingredients for inclusive growth and

development. This will be achieved through improved access to employment opportunities

and decreasing social exclusion of certain groups (women and youth). The project will offer

opportunities for transfer of skills (value addition training and training of artisans) which

directly lead to a greater accumulation of human capital. The project will also contribute to

poverty reduction through the provision of income and better livelihoods to participating

communities.

85. Involuntary resettlement: There is no involuntary resettlement or land acquisition

envisioned within the implementation of the Project activities. The livestock service centres

will be constructed on sites identified by communities in agreement with the government.

4 Combined 2011-2015 Zambia Strategy Paper and Country Portfolio Performance Review, Afdb, January 2013.

- 58 -

86. Gender Analysis: Women in Zambia account for 51% of the total population. Women

are mainly involved in agriculture and micro-enterprise as well as household tasks while men

dominate the mining sector and small/medium/large enterprises. At least 78% of the women

are engaged in agriculture. Although agriculture remains the main opportunity for

employment and income for rural women, they continue to have limited access to credit,

extension services and markets. They are also affected by various factors such as high

incidence of HIV/AIDS, discrimination and marginalisation, poverty and gender inequality.

In the Project area, female headed households account for 78.4% while female headed

households account for 21.6% of agricultural households. Men own more livestock than

women. Over 80 percent of the rural population in Zambia depend on agriculture related

activities for their livelihood5. Agriculture is the main source of income and employment

especially for rural women. Rural women participate in both production and post-production

activities and constitute more than 50% of the total rural workforce6. The livestock subsector

is economically important in Zambia accounting for about 35% of total agricultural

production7

. The subsector generates employment and incomes for rural people and

contributes to crop production by supplying manure and draught power. In the project area,

men own more livestock than women. Cattle are predominantly owned by men and women

own small livestock (chicken, goats). Generally all household members are involved in

livestock production in one way or another. Livestock rearing (especially cattle) is the

domain for men and boys. Livestock meant for fattening at home are taken care of by women

and girls. Thus, the responsibility of labour for activities such as feeding, milking, health

care, processing and marketing differs between men and women.

88. Taking into account the gender differences between men and women in the project

area and the specific constraints that women face in the livestock sector, the gender

mainstreaming strategy in SCRIKA will focus on increasing access to project activities for

women as well as increasing their participation in project implementation, community

representation and decision making. The project will have the following specific

interventions.

89. Access to training and knowledge transfer: The project will offer training in climate

change adaptation technologies for both male and female farmers. The training will be based

on a thorough needs assessment to be conducted at the start of the project. Training will be

oriented towards the specific needs of both men and women depending on the different roles

they play in relation to climate change adaptation. SCRIKA will support gender sensitization

and awareness training of farmers and local community leaders. The training will assist to

increase gender awareness and develop capacities of women and men to address gender

inequality issues in livestock. Women will have at least 50% participation in mixed training

sessions.

5 Central Statistics Office (2006). Living Conditions Survey

6 Census, 2010.

7 Cited in SNV (2012). Feasibility Study on Domestic Biogas Programme in Zambia

- 59 -

90. SCRIKA will also encourage farmers’ cooperatives to include a larger quota for

women in decision making positions. The Project will support at least 50% involvement of

women in management of livestock infrastructures. The Project will support a youth and

women empowerment programme aimed at training women and youth in value addition skills

(such as skins/hides processing) and skills training to run Income Generating Activities

(IGAs). Women will comprise at least 50% of the envisaged beneficiaries of the programme.

The GRZ is implementing the Performance Enhancement Programme (PEP) aimed at

strengthening the capacity for gender mainstreaming within line Ministries. The Secretariat

and Provincial Gender Officers will support the Project activities.

91. Access to community based Infrastructure: To ensure that the community based

infrastructure will also be accessible to women, the project activities will be constructed on

sites identified by both men and women in agreement with GRZ officials. The infrastructure,

for example market centres and training facilities will be constructed to cater for both men

and women’s needs. The project will also support at least 30% involvement of women in the

management of infrastructure.

92. Women and Youth Empowerment: The project will support a youth and women

empowerment programme aimed at training women and youth in value addition skills (such

as leather processing) and skills training to run Income Generating Activities (IGAs). Women

will comprise at least 50% of the envisaged beneficiaries of the programme. The component

has significant potential in reducing poverty among women by increasing their access to new

employment opportunities and developing women as contributors to economic growth.

93. Project Impact Monitoring: The socio–economic impact of the project components on

women are increased household incomes, food security and well-being. The project will put

in place a monitoring and results tracking system to track the impact of the project on

women. Key indicators will include (i) availability of food for female headed households; (ii)

income for female headed households; (iii) number of women in group and community based

decision making bodies; (iv) changes in household and community perception of women and

their capabilities.

94. Alignment with National Development Plan: In the short term, the expected outcome

of the project is improved and equal access by both men and women to modern livestock

production and management techniques and to livestock infrastructure. The project outcome

is aligned with the gender specific agenda outlined in Zambia’s Sixth National Development

Plan (2011 – 2015). The Sixth National Development Plan (SNDP) entrenches gender as one

of the cross – cutting issues and prioritizes the need to mainstream gender in the development

process. The main objectives of the SNDP (as far as gender is concerned) are to develop

gender responsive policies and legal framework, to enhance capacity of women to participate

in national development and to strengthen institutional capacities for effective gender

mainstreaming. Specific gender mainstreaming activities include capacity building, gender

audit, gender analysis and legislative and policy reviews.

- 60 -

95. Key gender issues in Zambia: Key gender issues in Zambia relate to the feminization

of poverty, culture and tradition, the legal framework, participation in decision making and

HIV/AIDS. Poverty remains high in Zambia (affecting more than 60% of the population).

Women continue to be more vulnerable to severe consequences of poverty. Statistics show

that of the 68% of the population who are poor, 80% of these are women and children8.

Cultural and traditional practices systematically subject women to male domination and make

them dependent on men. Other factors that lead to gender inequality are lower education and

literacy level, patriarchal structures and stereotypes. The resulting gender disparities have

economic implications in that they lead to inequalities in access, ownership and control of

productive resources and of time and labour.

96. The legal framework is biased against women. Freedoms provided under the

constitution are undermined by customary and cultural factors. The dual legal system limits

women’s rights of access and control over productive resources. Women also continue to be

marginally represented at all levels of decision making. Low participation in decision making

has implications for women’s empowerment and poverty reduction. The incidence and

prevalence of HIV/AIDS continues to affect women more than men. There are gender

differences in impact where women shoulder the burden of caring for the sick, but both men

and women suffer the social and economic effects of the disease. Gender based violence has

continued to increase and it is both fuelled by and fuels the spread of HIV/AIDS9.

97. Policy and Institutional Framework for Gender Mainstreaming: The national Gender

Policy was launched in 2000. The policy recognizes the need for equal and full participation

of women and men at all levels of national development. The national gender policy outlines

priority areas for the agriculture sector and these include (i.) facilitating the strengthening of

the provision of agricultural services (credit, extension, research) to small holders particularly

women farmers, (ii) construction of rural infrastructure to assist small holder farmers

especially women to acquire inputs and market their produce on time, (iii) facilitating and

promoting research and dissemination of information on agriculture targeted at women, (iv)

facilitating the formation of women farmer groups so that they can benefit from agricultural

programmes, and (v) encouraging the development of agro-industries in rural areas where

most rural women live.

98. The Ministry of Gender and Child Development which was upgraded in 2012 from

the Gender in Development Division (GIID), is the lead national gender machinery. The

ministry is responsible for implementing, coordinating and evaluating the national gender

policy with a mandate to achieve gender responsive development. It works with Gender focal

points (GFPs) in line ministries in promoting gender issues in sectoral policies and

programme interventions. Within the NGO sector the Non-Governmental Organisation

Coordinating Council (NGOCC) plays a “watchdog” role in the ratification, implementation

of national, regional and international instruments on gender in the country10.

8 Cited in Paper on Gender Equality in Zambia presented by NGOCC during the Civil Society/Patriotic Front

Dialogue on 12 – 13 April, 2012 at Crest Golf View Hotel, Lusaka, Zambia. 9 World Bank 2004, Zambia Strategic Gender Assessment. 10

African Development Bank, 2006. Zambia multi-sector gender profile.

- 61 -

99. Gender Mainstreaming in SCRIKA: A document review of on-going and closed

projects implemented by Secretariat with regard to gender impact was carried out. The

project design has benefitted from the lessons learnt and these include; (i) a detailed

engendered log frame with a robust set of gender sensitive indicators is critical for monitoring

gender impact (ii) the need to promote gender friendly technologies in particular labour

saving technologies; (iii) empowerment programmes directed at women and youth for

example access to resources (e.g. credit, land, livestock, good quality seed) improve their

economic status. The lessons have been incorporated into the project design by (i) reviewing

and updating the SCRIKA log frame objectives performance indicators to accommodate

gender issues; (ii) promoting labour saving technologies for example biogas digesters and

also draught power which have the benefit of reducing workload for women; (iii)

incorporating a youth and women empowerment programme aimed at training women and

youth in value addition skills and skills training to run Income Generating Activities (IGAs).

100. Entry Points for Mainstreaming Gender in SCRIKA: The project will support gender

capacity building activities for SCRIKA stakeholders as shown in the table below.

Target Group Type of Training

Farmers & Community Leaders Gender awareness & sensitization.

Field & extension staff Gender awareness & sensitization. Gender mainstreaming.

SECRETARIAT technical staff & programming staff

Gender awareness & sensitization. Gender mainstreaming. Gender analysis tools and techniques.

SCRIKA Project staff & Implementing partners

Gender awareness & sensitization. Gender mainstreaming. Gender analysis tools and techniques. Gender based Monitoring, Evaluation and Reporting. Learning on the job with support from Gender Specialist.

101. Gender Audit Study: A gender audit study will be carried out (during the third year)

to assess the status and progress made in achieving gender equality within the project. The

study will identify achievements made, gender gaps, challenges and constraints in

mainstreaming gender in the project and also make recommendations of how the project can

improve on delivery during the remaining period.

102. Documentation and Dissemination of Gender Information: The project will work

closely with gender related organisations (NGOs, national institutions, donors) for purposes

of sharing information on gender and women’s empowerment in relation to livestock

development. The project will document and share learning material on women’s

empowerment and gender equality with all the relevant stakeholders at district and national

level. A stakeholder workshop will also be held to share lessons learnt and disseminate

information on gender. A budget for the proposed gender activities is shown in table below.

- 62 -

103. Women and Youth Empowerment: The Project will support a youth and women

empowerment programme aimed at training women and youth in value addition skills (skin

and hides processing). The Project will train 27 women and youth groups in hides and skin

tanning. This would involve soaking, de-haring, liming, fleshing (mechanical scrapping off

the excessive organic material) and splitting. The hides and skins are then pickled and tanned.

The tanned hides and skins are tradable as intermediate products (wet blue leather) or can be

further processed into leather which is used to manufacture consumer products (shoes, hand

bags e.tc). The women and youth groups will be able to sell tanned leather to footwear,

upholstery and garment manufacturers. The component has significant potential in reducing

poverty among women by increasing their access to new employment opportunities and

developing women as contributors to economic growth.

104. Project Gender Impact Monitoring: The project will put in place a monitoring and

results tracking system to track the impact of the project on women. Key indicators that will

be monitored and suggested data analysis and collection methods are shown in the Table

B.8.3.

Table B.8.3: Key Indicators to Track the Gender Impact of the Project

Indicator Data Collection Methods

Availability of food for female headed households Household Surveys

Change in income for female headed households Household Surveys

Number of women accessing livestock infrastructure and information Household Surveys Group Interviews

Number of women in group and community based decision making bodies;

Group and Community Interviews

Changes in household and community perception of women and their capabilities.

Perception and Attitude Surveys

105. Social Impact: The social impact of the project is expected to be positive. The project

will provide income and better livelihoods to participating communities. It is expected that

average annual income of farmers will increase overtime (by 2025 the average annual income

is projected to have increased by 97%). The project will help communities in the project area

to diversify agricultural output. Other positive effects will include an improvement in the

nutritional status of the population through consumption of meat and milk products rich in

proteins and supply of draught power for crop production.

106. Rehabilitated feeder roads leading to markets will facilitate sale of livestock and

related agro-products which will generally improve trade in the targeted provinces and

increased economic activity will significantly boost local development. Value addition

training will improve skills and give employment to women and youth. Other employment

opportunities will be created through the operation of the livestock service centres. The

anticipated economic well-being resulting from higher family incomes will generate positive

multiplier effects on social stability. The project will help curb rural exodus by retaining the

population especially the youth in the project target areas.

- 63 -

ANNEX C1 : DETAILED PROJECT DESCRIPTION

107. The development objective of the Strengthening Climate Resilience in the Kafue

Basin (SCRIKA) project is to strengthen the adaptive capacity of rural communities to better

respond to eh current climate variability and long-term consequence of climate change in eh

Kafue sub-basin. This will be achieved by piloting adaptive mechanisms in the agricultural

and natural resources management practices, as well as in rural infrastructure.

108. The Project introduces a new innovative approach to finance community based

adaptation interventions in selected climate-vulnerable areas by focusing on three areas of

intervention: (i) production systems emphasizing diversification and intensification in

agriculture and natural resources technological innovations at the community level; (2)

infrastructure development with a focus on applying design parameters and codes that

strengthen rural roads to withstand floods, and (3) institutional support and capacity building

focusing on institutional strengthening at both the national and local levels. The proposed

project consists of three components: (i) Community-Driven Participatory Adaptation, (ii)

Construction and Rehabilitation of Climate Resilient Roads, and (iii) Project Management

and Coordination. Since most adaptation interventions to date at the community level have

been very scattered and uncoordinated, the project will adopt a framework approach for

identifying scalable community sub-projects, using transparent criteria, to meet the objectives

of the Project

Component 1: Community-Driven Participatory Adaptation (US$ 18.5million grant)

109. The objective of this component is to strengthen the adaptive capacity of poor rural

communities and natural resources based production systems that are vulnerable to floods and

droughts in the Kafue sub-basin. It would support community based adaptation initiatives

which will be selected by communities through a demand-driven process facilitated by

qualified non-governmental organisations (NGOs) working in partnership with the local

government at the Ward, District and Provincial levels. Component 1 comprises two (2) sub-

components.

110. Sub-component 1.1: Integrated Community-Based Adaptation (US$ 16 million

grant) will support three (3) areas of intervention:

1.1.1 Community-level Infrastructure Projects. This sub-component will support the

upgrading of community-owned infrastructure to withstand severe floods or droughts, while

opening up opportunities that will stimulate entrepreneurship and bolster income generating

activities for the beneficiary communities. Such activities will include micro-projects for

flood control and diversion structures, small-scale irrigation schemes, small-scale water

reservoirs, small-scale dams, feeder roads and culverts, de-silting and restocking ponds and

water bodies, improved wells and boreholes, reforestation and afforestation of community

forest plantations, wildlife estates and communal game ranches. The civil works for the

micro-projects will be financed either through contractors or through labour provided by

communities. A typical cost of a community-level infrastructure project will be

approximately US$100,000.

1.1.2 Farm-Level Support Systems: This sub-component will support farm level initiatives.

Beneficiaries of the support will be identified through a system of wealth ranking that will

target the most poor, vulnerable farmers, majority of whom will be youth and women.

- 64 -

Activities under this sub-component will include training farmers on conservation

agriculture, management of soil moisture and fertility, inputs such as seeds for drought and

flood resistant crop varieties for crop diversification, seedlings for fruit orchards, livestock

and fisheries for diversification of farming systems, erosion control and improved grazing

and pastures as well as value addition investments. The participating NGOs together with

communities will produce plans that itemise the quantities of each of the support systems and

the number of beneficiaries required. An Input Voucher valued at US$ 400 - 500 will be

provided to selected farmers.

1.1.3 Matching Grant for Climate Change Adaptation Investments: The Project will support

medium to large-scale investments in activities that are considered to add value to primary

products supplied by local producers, and which will increase climate change resilience along

the value chain of agri-business. Entrepreneurs who have a viable business plan and secure

equity finance, loans or grants from government or financing institutions for climate change

related adaptation investments will be eligible for a matching grant of up to 25 percent of the

investment or a ceiling value of US$30,000 per investment. Such investments will target

communities that would benefit from value addition activities focusing on agro-processing,

game ranching, aquaculture fingerling production, eco-tourism, honey processing, biogas

plants, and wildlife management.

111. Sub-component 1.2: Support to Integrated Community Based Adaptation (US$ 2.5

million grant). This sub-component will support the local government and community

groups in each district to incorporate climate risk management principals into local area

development planning (sub-component 1.1) and in selecting adaptation initiatives that will

build climate resilience at the community level. Support will be provided to local non-

governmental organizations to mobilise, train and facilitate communities in risk and

vulnerability assessment at the district in integrating climate risk management principals in

local area planning. The sub-component will also support the work of Area Development

Committees in mobilising and creating awareness among local communities and in

supervising or backstopping the implementation of the micro-projects.

112. This component will be aimed at climate proofing Local Area and District

Development Plans in the nine (9) districts. The activities to be included in the Plans for

project support will be based on addressing additional stresses caused by climate change and

variability, such as floods and droughts. Support will be provided to local government,

community groups and farmers in each district to identify and thereafter incorporate climate

vulnerability and risks into local area development plans and to ensure that community-level

and farm-level projects are climate resilient. This will be done through a systematic

livelihood vulnerability and risk assessment, undertaken at community level, in which each

social group will have its specific input. Climate related risks to livelihoods, production

systems and to natural resources will be identified. Response options will be developed and

designed for each group and for each production line. The relevance of plans and investments

to climate risks will be ensured through this process. For this purpose, support will be

provided to mobilize, facilitate and train communities and local government officials in

undertaking vulnerability and risk assessments and in integrating climate risks into

development plans as well as into the design of community and farm level investments. In

order to benefit from the latest knowledge and experience in climate change adaptation, the

project will be able to call upon expertise from civil society, academia and research

organizations.

- 65 -

113. Building capacity of government staff at district and community levels in participatory

diagnosis, planning and implementation of adaptation projects at community level will be

critical. Two measures will be undertaken: Establish a five member Project Implementation

Team (PIT) drawing on members of the District Development Coordinating Committee

(DDCC) and whose team leader will be the District Planner in each of the nine (9) districts.

Membership shall include line ministries responsible for agriculture and natural resources

management. The PIT is designed for long term sustainability and to ensure that the project

activities are integrated and mainstreamed within public sector plans and finances. The PIT

will be supported with training in climate change adaptation skills, and equipped with basic

facilities such as motorbikes, computers, and operational funds. The PIT will primarily

ensure that community plans are financed and that public sector plans (Local Area

Development Plans) incorporate community adaptation plans. They will receive, evaluate and

recommend climate adaptation activities from communities for top-up financing through the

project. The PIT will also participate in the participatory community mobilization, training

and planning activities (which will be carried out by the qualified NGOs. They will monitor

the project by receiving reports from the participating NGO on project activities.

114. Engaging a participating NGO in each district to mobilize, train and facilitate

communities in risk and vulnerability assessment, developing community plans and applying

for financing from the district and project development funds will be supported by the

Project. The NGO will work with the PIT at each district in the selected vulnerable wards

and communities in mobilizing and in selecting adaptation measures for inclusion in the

Local Area Development Plans (LADP). The NGO will further support the detailed design,

costing and implementation of the LADPs at all times in close cooperation with community

level government staff. The NGO will facilitate identification of beneficiary households to

benefit from the various services of the project. The NGO will establish a team of staff

comprising at the minimum of a Team Leader, a Community Development Specialist,

Agriculturalist, and Natural Resources Management Specialist. These shall be well versed

and exposed to climate change adaptation and shall be trained in submitting lessons learnt

and M&E reports to the PIT. These reports shall be tabled at each meeting of the DDCC,

consolidated by the PIT and submitted to the Climate Change Secretariat through the M&E

officer.

115. Vulnerability and Risk Assessment (VRA): This entails identifying vulnerable groups

and high priority adaption measures best suited to overcoming limiting factors in terms of

improving livelihoods and protecting the natural resource base. The PIT shall identify the 3

most vulnerable wards and communities and participatory tools shall be applied to conduct a

vulnerability and risk assessments in each targeted district, wards and communities. The

studies will provide detailed information on climate related vulnerabilities and risks and their

impact on livelihoods for all social groups in communities, and in order of priority for each

group to enable adaptation measures to be targeted for maximum impact. The studies will

help developing the LADPs provide will underpin the selection of adaptation initiatives. It

will be important to distinguish between climate related risks and risks related to other causes

in order to ensure that investment funds are disbursed as per the development objective of the

project. In order to facilitate this task, a Technical Assistant (TA) consultant on VRA will be

engaged for a period of three months during the first year to help each district PIT and NGO

staff.

116. Monitoring and Evaluation – Knowledge generation, Up-scaling ad Sustainability: A

Monitoring and Evaluation expert shall be placed in the Climate Change Secretariat. The

- 66 -

M&E expert will work closely with each district PIT with the District Planner as focal point

to design an M&E and lessons learnt compilation system. The information collected from the

NGO implementation team shall form the primary basis for the M&E system. The M&E

system will monitor the process and outcome indicators, baselines and targets set for each

component of the project based on the Logframe developed. In order to track progress of

adaptation initiatives, the monitoring tools shall be defined and embedded in the planning and

project application protocol (form) specifying the objective, inputs, outputs and expected

outcomes. The M&E protocols will be used to undertake structured discussions with those

involved with the initiatives to spot unforeseen problems and agree on remedial actions. The

information from the monitoring protocol shall form the basis for quarterly and annual

reports. A mid-term evaluation will be undertaken halfway during the life of the project and

at completion of the project.

117. This being a pilot project, it is vital that learning is documented and that sharing of

experiences is a continuous process during implementation. The communities, NGO and PIT

staff shall be supported with exchange and exposure visits to successful projects to learn from

peers’ new ways of doing things. The project shall also call in knowledgeable experts from

other NGOs, private companies, research organizations, academia and the CGIAR system. A

key condition for sustainability and up-scaling is that the new adaptation initiatives are

economically and technically viable for their intended target groups. As part of building a

package of sustainable and scalable adaptation measures, successful initiatives will be

documented and made available to other actors engaged in climate change adaptation in

Zambia and beyond. The conditions for access will be made clear such as, for example access

to markets for new produce. The NGO, in cooperation with the PIU and government staff

will be responsible for this knowledge product. An amount will be allocated to be able to

engage experienced writers and media people for this purpose.

118. Eligibility Criteria: In order to ensure that project funds will be used for initiatives

related exclusively to climate change adaptation, building resilience and disaster risk

reduction, screening will be undertaken against the following criteria. An initiative will be

eligible to the extent that it:

reduces the risk, exposure or sensitivity of human or natural systems to climate

variability and change,

increases the potential or capacity of a system to adapt to effects and impact of

climate stimuli,

builds problem solving capacity to develop responses to climate variability and

change,

incorporates climate hazard risk information into decision-making, and/or

addresses impacts exclusively linked to climate variability and change,

The proposed adaptation sub-projects should demonstrate clear adaptation co-

benefits11

and not contribute potentially to mal-adaptation (e.g. have short-term

benefits, but increase vulnerability over the long-term).

The activity should have been identified as a priority in the process of participatory

planning (at the community/group level), or Local Area/Integrated Development

11

By (a) directly diminishing impacts of climate change and variability on the beneficiaries and their assets, (b) building the beneficiaries’

capacity for response to climate change (resilience), (c) incorporate climate risk information into decision-making, or (d)

reinforcing/enhancing the capacity of an ecosystem to adapt to the impacts of climate change.

- 67 -

Planning process at the district level). Sub-grants to support climate resilient planning

(planning that takes into consideration climate risks such as drought and floods).

The proposed sub-projects must be screened for potential social and environmental

impacts (and must not require a full-scale Environmental and Social Impact

Assessment (i.e. sub-projects of Category “1” would be ineligible).

A minimum beneficiary contribution of 10 percent (for soft adaptation) or 15 percent

(for structural adaptation) is required. The contribution could be in-kind (this would

apply to group grants only)

The participatory plans should follow the process specified in the Operational

Manual, and should identify the most vulnerable groups or households

Community/group level sub-grant should be earmarked for women-headed

households, or female-headed households meeting the criteria of highly vulnerable to

extremely vulnerable groups or households.

The proposing institution – District Councils, Local Area Committee, or community

groups – should meet the minimum fiduciary criteria (as specified in the Operational

Manual)

District and ward-level adaptation should be geared at reducing the vulnerability of

existing assets. Financing of new social or productive infrastructure would be

ineligible unless designed to specifically reduce exposure or vulnerability of an

existing asset (e.g. elevation and/or displacement of structure to higher grounds)

Typology of Indicative Sub-Projects

Type of grant Likely exposure and climate impact Sub-projects

Community/group soft adaptation Increased incidence of floods, more intense floods, erratic rainfall, increases temperature, reduced soil moisture and/or seasonal droughts

Projected changes in climate – mean increased temperature, decreased precipitation and extreme (along the lines above) impacting agricultural production and livelihoods

Agriculture and livestock practices:

Introducing/scaling up conservation tillage and soil moisture retention – improved management of soil moisture through the use of mulch/organic matter and conservation of soil organic matter

Diversifying agricultural practice such as crops/varieties grown including drought tolerant or grown under water-logged conditions or staggering time of planting

Changing times for applying agriculture inputs to take advantage of available moisture and rainfall

Diversifying livestock production (animals raised0 and agro-forestry and/or integration of crops and livestock (e.g. goats, sheep) in a mixed farming system

Diversifying livelihoods opportunities into sustainable activities that are not climate sensitive, and/or moving them to less climate sensitive locations (such as bee-keeping, crafts using local, non-timber material, agro-processing, and aquaculture

Accessing improved weather (flood, drought, frost) early warning system

Access to agricultural insurance system using measurements of local rainfall/flood measures for pay-off at appropriate area level and monetary

Community preparedness support

Community/group small-scale infrastructure

Change in mean and extremes both in frequency and duration

Infrastructure initiatives for water management to reduce effects of flooding

Construction/rehabilitation of wells and boreholes for water access during unseasonal droughts

Rehabilitate and/or manage canals to improve drainage and/or store water to overcome shorter

- 68 -

growing seasons and allow early planting and full maturation

Strengthen or raise mounds/paths/bridges used to cross flood plains around the community areas during unusually long floods

Floating platforms for evacuation of people/livestock

District/ward Changes in mean and extremes both in frequency and duration

Meeting places or field days to support knowledge on diversification of agriculture and livestock-based livelihoods

Facilitate links with micro-finance institutions/tools to support livelihoods and livestock diversification

Facilitate/equip local livestock para-vet centers for vaccination and disease control

Component 2: Construction and Rehabilitation of Climate Resilient Roads (US$

17.5million loan)

119. The objective of this component is to strengthen the climate resilience of rural roads

that link farmers to markets as well as to the Kafue National Park for a total of 251.25km in

the Kafue sub-basin to be able to withstand floods. The roads include, (i) Kalomo to

Dundumwezi (75.25km); and (ii) Itezhi-Tezhi to Namwala (52km). The project roads are

minor arterial roads, connecting local centres of population. The majority of the vehicles will

be passenger, tourist and ZAWA vehicles, and the horizontal alignment of the road is such

that a perceived safe driving speed of 60-70 km/h can be adopted. It is therefore

recommended that a Type III cross-section be employed comprising 2x2.75m carriageway

and 2x0.5 m shoulders.

120. The design standards comprise; (i) provision of cement stabilized fill of approach

gravel wearing course and over drainage structures shaped to provide good flow

characteristics in invents of overtopping; (ii) erosion protection of side slopes of approach

fills and pavement layers; and (iii) tree planting of selected areas in the catchment basin; (iv)

5percent camber to ensure that rain-water is drained speedily to avoid saturating the wearing

gravel layer; provision of side drains on either side of the carriageway in cut conditions;

cement stabilized against scour where gradients dictate; and (v) limiting side slopes to a

minimum of 1:5 reduce runoff velocities.

121. Introduction: The component is meant to strengthen the capability of the roads to

withstand extreme climate events, mainly floods in the Kafue basin of a total of 127km of

farm-to-market access roads in the Kafue Basin. The project roads comprise, (i) Kalomo to

Dundumwezi (75km); and (ii) Ngoma-Itezhi-Tezhi-Namwala (81km). The roads traverse the

southern and central parts of Zambia. Kalomo is located in Southern Province along the T1,

approximately 126km from Livingstone. The D344 starts at Kalomo and follows a

northwesterly route to the junction of the D714. This stretch is within Kalomo district and is

18.2km in length. The D714 starts at the junction with the D344 and continues its

northwesterly and westerly route to Dundumwezi, which is the southern entrance to the

Kafue National Park (KNP). The length of this section to Dundumwezi is 55.4km. KNP

covers portions of Southern, Central and Northwestern provinces, with a total area of

22,400km². The alignment connects Dundumwezi with Ngoma, some 95km to the north.

From Ngoma, the U1 connects to Itezhi-tezhi a distance of just over 20km. Between Itezhi-

tezhi and Kacheleko, the D769 extends some 108.2km in length, through the Itezhi-tezhi and

Mumbwa districts. The project roads are within the Kafue River Basin and are subjected to

wash-aways and flooding during the rainy season.

- 69 -

Kalomo – Dundumwezi Road

122. Alignments: That starts at Kalomo and branches off into 714. The total length is

18.2km, traversing rolling terrain with gentle gradients. Within Kalomo a 250m section is

surfaced with a carriageway width of 6.1m and an approximate formation width of 9m.

Thereafter the road is partially in a sunken state, with a carriageway width varying from 5.5m

to 7m, with literally no gravel on it as it seemingly has been eroded over time.

123. The length of D714 is 57.05km. The existing carriageway width varies between 4.5m

and 6m. The formation width varies between 8m and 9m. The riding quality for both

D344/D714 was observed to range from poor to very poor. The comfortable riding speed

averages no more than 20km/h due to the worsening conditions during the rainy season.

Information obtained is that the road was re-gravelled approximately 10 years ago and

consequently because of the climatic action and traffic the gravel has completely been

completely lost. The poor condition of the riding surface leads the traffic to avoid the middle

of the road and to drive on the verges and side drains. As such side drains have been lost due

to traffic riding on the verges and drains with the exception of approaches to drifts/culverts.

124. Drainage and Construction Materials: There are 25 existing drainage structures and 2

bridges on D344. The two bridges, at Sichikwenkwe River and Kalomo River, are in the first

9.5km stretch. The Sichikwenkwe Bridge at km 1+750 is a single lane three-span steel

trussed bridge supported on concrete piers and abutments. Some of the truss members have

been damaged and the deck and its approaches were in a deplorable condition. Some

maintenance of the trusses will be required as is the cleaning of expansion joints and the

reconstruction of the deck. The Kalomo Bridge at km 7+590 is a 7-span concrete beam and

slab structure, with no handrails. Erection of the handrails and some maintenance of the joints

and clearing of debris will be necessary.

125. There are approximately 80 existing drainage structures on D714, three of which are

vented pipe drifts at km 44 and km 67. The majority of drainage structures are 600 and

900mm diameter pipes. It was difficult to measure the structure at approximately km 44.1 as

it was submerged and, hence, posing a risk to the travelling public. The three drifts are in

unsound condition and will require appropriate interventions. One drift has bad approaches

and a partially eroded deck, threatening to collapse, and the other has an unsound deck with

one-half badly eroded. There are noticeable inadequacies in the condition of most of the

existing culverts such that some measure of interventions will need to be carried out.

Associated works, such as rechanneling and cleaning the channels will also be necessary.

126. Approximately 10 possible borrow areas for construction materials were noted along

the link. It would be appropriate to investigate the areas in the vicinity of old borrow areas

that were used, and later reinstated, a decade ago during the improvement of this link. As one

gets further away from Kalomo and the two rivers in the first 9.5km stretch, water for road

works will pose a challenge during the dry season, as most streams are seasonal. It will be

necessary to consider construction of a few dams at strategic stream locations.

Itezhi Tezhi – Namwala (RD367)

127. Alignment: The start point of the road is after the ZESCO control barrier running to

Namwala, a distance of 56km. There was an Output and Performance-Based Road Contract

(OPRC) on this road up to approximately km35 (from 2006 to 2010). The 26km distance had

- 70 -

received full gravel and the remaining length to km 35 being earth formed only. The

geometry on this stretch is very good.

128. The road traverses the flat terrain of the Kafue River flood plain with alluvial silty

sandy soils. The carriageway width approximates 5.5m on a slightly raised formation

constructed to Class II standard. Side drains, where available, are shallow such that running

water fills up and cuts overtops the road. For the first 6km the gravel layer has been eroded in

places. Between km6 and km20, there are sections still with full layers of gravel. Between

Km20 and km26 is badly eroded. The next 9km up to km35 features some gravel loss due to

rain. From km35 the road follows a waterlogged track towards the river.

129. Drainage and Construction Materials: There are 24 concrete pipe culverts and one

box culvert believed to have been constructed under the OPRC contract. With an exception of

a few of the structures, most appear to be efficiently discharging the storm-water. The

defective ones will need rehabilitation works. From km35 to the river, a series of culverts will

need to be constructed to cater for the flooding of the flat plain. In addition to constructing a

series of culverts through the flood plain, consideration should be given to provide raised

embankments to some sections of the road from Km0 to Km35 and most of the road from

km35 onwards if this road is to be in service throughout the year.

130. There is scarcity of construction materials as one gets further away from the gravel

sources within Itezhi-tezhi, and the resultant haul distance should be noted. Proper side drains

and outfalls will be required for the road. Even though the road traverses the flood plain,

water for the road-works will be a challenge.

Design Standards:

131. Geometric Standards: Functionally, the project roads are minor arterial roads,

connecting local centres of population. The majority of the vehicles will be passenger, tourist

and ZAWA vehicles, and the horizontal alignment of the road is such that a perceived safe

driving speed of 60-70 km/h can be adopted. It is therefore recommended that a Type III

cross-section be employed comprising 2x2.75m carriageway with no shoulders. A cross fall

of 5% will be utilized.

132. Hydraulic Standards: Precipitation variation in the project area is expected to range

between -3% to +3% by 2100 resulting in increases in flow in the Kafue River area by 11%

according to the IFC study. The storm-water capacities of the drainage structures have

therefore been increased by 15%. Additional measures to enhance the resilience of the roads

is to; (i) provide cement stabilized fill for the approach gravel wearing course and over

drainage structures shaped to provide good flow characteristics in invents of overtopping; (ii)

erosion protect the side slopes of approach fills and pavement layers; (iii) tree planting in

selected areas of the catchment basins; (iv) provide 5% camber to ensure that rain-water is

drained speedily to avoid saturating the wearing gravel course; (v) provide side drains will on

either side of the carriageway in cut conditions; cement stabilized for protection against scour

where gradients dictate; (vi) limit in fill conditions side slopes to a maximum of 1:5 reduce

runoff velocities.

133. The implementation for roads will comprise two parts; (i) civil works entirely financed

by the Bank; and (ii) a five (5) year maintenance period based on an Output and

Performance-Based Road Contract (OPRC) entirely financed by Government.

- 71 -

134. Executing Agency: The Road Development Agency (RDA) will be the executing

agency for the road-works and consulting services for supervision. The entity is currently

implementing two transport sector projects and therefore has the requisite expertise to

implement the project. The entity will assign a roads coordinator (RC) for close follow up

and timely response to correspondence forwarded from the consultant and contractor. The RC

for the works and services will be a civil engineer with a minimum of47 years’ experience in

road project management. The RC will prepare and forward quarterly reports to the Bank.

The PC will attend all site meetings, follow day to day operations including disbursement

requests and participate in the preparation of the joint Project Completion Report within six

(6) months after 98% disbursement rate. The RDA has assigned an RC with the requisite

qualifications and experience whose Curriculum Vitae (CV) has been reviewed and found

acceptable for the task. The civil works and day to day activities on site will be supervised

and monitored by an experienced consulting firm. The supervision consultant in conjunction

with RDA Environmental Safety Section will supervise and monitor implementation of the

environment and social management plans.

135. Sustainability: In 2002 the government created three road sector Agencies by Acts of

Parliament namely; (i) the National Road Fund Agency (NRFA) Act 13 of 2002; (ii) the

Road Development Agency (RDA) Act No. 12 of 2002; and (iii) the Road Transport and

Safety Agency (RTSA) Act No. 11 of 2002. The reforms in the roads sub-sector have given

the Road Development Agency (RDA) the a mandate to manage the core road network and

the National Road Fund Agency (NRFA) to raise, manage and disburse funds for the

management of the network. The Road Transport and Safety Agency (RTSA), oversees road

safety issues. The road sections referred to herein are part of the designated road network and

therefore fall within the responsibility of RDA for maintenance. Their sustainability therefore

will depend primarily on the ability of RDA and the NRFA to plan, program, finance and

implement timely maintenance of the road sections. ROADSIP II being reviewed to cover the

next five years includes planning, programming, and implementation of road maintenance in

Zambia. A Road Fund (RF) has been established and ring-fenced financing to secure a stable

flow of funds for road maintenance. Revenues collected are being fully remitted to the sector

for maintenance purposes.

136. The establishment of the Road Fund has been complimented by gradually increasing

the role of the private sector in routine road maintenance that will ensure sustainability of the

core road network. The private sector is currently involved in routine maintenance activities

through Performance Based Maintenance (PBM) contracts. Presently, 4500km is covered by

PBM contracts. Besides sustainability the PBM contracts are contributing to the development

of a strong domestic contracting industry over time.

137. Total domestic resources made available for the road sector increased from USD154.6

million in 2006 to USD420.60 million in 2012. Over the same period, Road Fund receipts

increased from USD43.20 million to USD121.40 million. The Road Fund can sufficiently

cover the cost of routine maintenance of the core road network. The availability of

maintenance financing, the design standards used for climate resilience will minimize effects

of flood waters and therefore reduce the costs associated with emergency interventions. The

Output Performance Based Contract for maintenance over a five year period will ensure that

the roads are passable thought the year. It is estimated that the annual maintenance cost per

km will be reduced by 50% through use of a performance based contract. The resilience

design and the performance-based maintenance contract adopted will therefore offer

- 72 -

significant advantages with regards to cost and ensuring all year round access by the

communities within the zone of influence.

138. Monitoring: The RDA has assigned a project coordinator with the requisite

qualifications and experience that will monitor the implementation of the works. The day to

day activities of the civil works including oversight of the implementation of the mitigation

measures to mitigate the environmental negative effects will be monitored by a supervision

consulting team. Monthly and quarterly reports will be submitted to the Bank and will

include physical, financial, social and environmental indicators that the project has achieved.

The reports will provide updated information on project implementation highlighting key

issues and problem areas and recommended measures for resolving identified bottlenecks. At

least two field missions will be undertaken annually to the sites to monitor progress. At 85%

completion of the project components or 95% disbursement of the loan funds, the Bank and

the Executing Agency will prepare a joint Project Completion Report.

Risk Management

139. Sustainability: There is a risk that there is insufficient financing to adequately cover

routine and periodic maintenance of the two road sections herein. The risk is mitigated by the

utilization of an Output and Performance Based Contract (ORPC) for maintenance with

funding from a Road Fund dedicated to road maintenance.

Cost Estimates for Roads

135. The project cost estimates has been sub-divided into two parts, namely the cost for;

(ii) the rehabilitation and upgrading works; and (ii) the maintenance under the Output and

Performance-Based Contract (ORPC). The cost for rehabilitation and upgrading of the two

road sections measuring 156km amounts to ZMW102.1 billion or USD19.19 million. The

maintenance costs over a five-year performance-based contract amounts to ZMW66.44

billion or USD12.49 million. The total cost of the project is ZMW168.54 billion or

USD31.68 million.

Table 1: Road Works (Part I)

Description Lot A: Kalomo to Dundumwezi (75km)

Lot B: Ngoma to Itezhi-tezhi to Namwala (81km)

ZMW billion USD million ZMW billion USD million

Consulting Services

Supervision 1.88 0.35 2.03 0.38

Preliminary and General Items

8.10 1.51 8.75 1.64

Drainage 25.20 4.74 27.22 5.12

Earthworks (including gravelling)

9.00 1.69 9.72 1.83

Road Furniture 0.45 0.08 0.49 0.09

Total Works 44.63 8.38 48.12 9.06

Contingency 10% 4.46 0.84 4.81 0.91

GRAND TOTAL 49.09 9.22 53.02 9.97

- 73 -

Table 2: Five Year Maintenance (Part II)

Description Lot A: Kalomo to Dundumwezi (75km

Lot B: Ngoma to Itezhi-tezhi to Namwala (81km)

ZMW billion USD million ZMW billion USD million

Consulting Services

Supervision 0.13 0.03 0.14 0.03

ORPC Maintenance Contract

4.28 0.80 4.61 0.87

Total Maintenance 4.41 0.83 4.75 0.90

Contingency 10% 0.44 0.08 0.48 0.09

GRAND TOTAL 4.85 0.91 5.23 0.99

1UA=1.50396USD=8.00274ZMW

Component 3: Project Management and Coordination (US$ 2 million grant)

136. This component will support project coordination function of the Secretariat to

oversee project implementation.