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REPUBLIC OF MOZAMBIQUE
MINISTRY OF AGRICULTURE
Centre for the Promotion of Agriculture
(CEPAGRI)
PRO-POOR VALUE CHAIN DEVELOPMENT PROJECT IN THE MAPUTO AND
LIMPOPO CORRIDORS
(PROSUL)
FINANCIER:
IFAD LOAN NO. I-878-MZ
IFAD GRANT NO. I-C-1391-MZ
TRUST LOAN NO. E-15-MZ
ASAP GRANT NO. C-ASP-1-MZ
PROSUL Semi - Annual Report 2014
August 2014
i
Acronyms
ASAP Adaptation for Smallholder Agriculture Programme
AWPB Annual Work Plan and Budget
BAGC Beira Agriculture Growth Corridor
BOM Bank of Mozambique
CEPAGRI Centre for the Promotion of Agriculture
CUT Conta Única de Tesouro
DA Designated Account
DE Directorate of Economics
DNEA National Directorate of Agriculture Extension
DNSA National Directorate of Agrarian Services
DNSV National Directorate of Veterinary Services
DNTF National Directorate of Lands and Forests
DPA Provincial Directorate of Agriculture
e-SISTAFE State Financial Administration System
FA Financing Agreement
GC Gestão de Conhecimento (Knowledge Management)
GoM Government of Mozambique
IDPPE Instituto Nacional de Desenvolvimento da Pesca de Pequena Escala
IFAD International Fund for Agriculture Development
IIAM Instituto de Investigação Agrária de Moçambique
INAM National Institute of Meteorology
INIR National Institute of Irrigation
LSP Lead Service Provider
LTB Letter to the Borrower
LTSP Land Tenure Service Provider
KM Knowledge Management
MFIs Micro Financial Institutions
MINAG Ministry of Agriculture
MoU Memorandum of Understanding
MTOs Meat Trade Organisations
NO No Objection
PDR Project Design Report/Document
PME Planning, Monitoring & Evaluation
PIM Project Implementation Manual
PMT Project Management Team
PP Procurement Plan
ii
PRA Participatory Rapid Appraisal
PROPESCA Artisanal Fisheries Promotion Project (Projecto de Promoção da
Pesca Artesanal)
PROSUL Pro-Poor Value Chain Development Project in the Maputo and
Limpopo Corridors
RBL Regadio do Baixo Limpopo
RIMS Results and Impact Management System
SC Steering Committee
SDAE District Service of Economic Activities
STF Spanish Trust Fund
TA Technical Assistance
TOMPRO Financial Management System
TOR Terms of Reference
UNCDF United Nations Capital Development Fund
USD American dollar
WA Withdrawal Application
VC Value Chain
VC DAP Value Chain Development Action Plan
iii
MAP OF PROSUL PROJECT AREAS
iv
Content
Acronyms ....................................................................................................................................................... i
MAP OF PROSUL PROJECT AREAS ................................................................................................... iii
1. INTRODUCTION ................................................................................................................................ 1
1.1 PROJECT OUTLINE ................................................................................................................... 2
1.2 Functional Institutional Arrangements & Coordination ............................................................... 3
1.3 ABOUT THIS SEMI - ANNUAL REPORT (JANUARY TO JUNE 2014) ................................ 4
2 DETAILED IMPLEMENTATION PROGRESS BY COMPONENT ................................................. 5
2.1 Component 1 – Horticulture ............................................................................................................... 6
2.2 Component 2- Cassava ....................................................................................................................... 8
2.3 Component 3- Red Meat ..................................................................................................................... 9
2.4 Component 4- Financial Services ....................................................................................................... 9
2.5 Component 5- Institutional Support and Project Management ......................................................... 10
3 FINANCIAL PERFORMANCE ..................................................................................................... 14
4 IMPLEMENTATION SUPPORT AND SUPERVISION MISSIONS .............................................. 15
5 KEY CONSTRAINTS AND ACTION REQUIRED ......................................................................... 16
Annexes ...................................................................................................................................................... 17
Annex 1: PROSUL Key Partners and Project Staff ................................................................................ 18
Annex 2: 31 March to 11 April 2014 Agreed Action ............................................................................. 20
1
1. INTRODUCTION
1. The Pro-Poor Value Chain Development Project in the Maputo and Limpopo Corridors
(PROSUL) involves pro-poor improvement in three value chains: irrigated horticulture,
cassava and red meat. It will work in the trade corridors of the southern Provinces of Gaza,
Inhambane and Maputo. It aims to reach 20 350 beneficiaries, mostly economically active
poor who are already involved in value chain production in 19 districts of Maputo, Gaza and
Inhambane provinces.
2. The project goal is to establish improved and climate-smart livelihoods of small farmers in
selected districts of the Maputo and Limpopo corridors. Its development objective is to
achieve sustainable increased returns to smallholder farmers from increased production
volumes and quality in the targeted value chains, improved market linkages, efficient farmer
organisations and higher farmers’ share over the final added value.
3. The Project is under the auspices of the Ministry of Agriculture, with CEPAGRI designated
as Lead Project Agency. Thus, CEPAGRI has the overall responsibility and coordination for
the implementation of the Project with the support of a Project Management Team (PMT)
based at the CEPAGRI Delegation in Xai-Xai, Gaza province. The project entered into force
on 3rd October 2012 and the Project Management Team is now in place. PROSUL was
officially launched on 17 April 2013 in Xai-Xai.
4. All key positions for the PMT are partly fulfilled, except for the Financial Service Expert,
Climate Adaptation Expert and Agri-business Specialist. The recruitment of the Financial
Service Expert was suspended due to the ongoing process aimed at revising Component 4 –
Financial Services. The position regarding Climate Adaptation Expert was re-advertised
following the poor response at the first round but even in the second round there we not
qualified candidates. Following this, CEPAGRI and IFAD agreed on the need of financing
two CEPAGRI staff to attend post graduation studies on climate adaptation at the University
of Cape Town in South Africa. In relation to the Agri-business Specialist it is worth
mentioning though he was recruited his contract with CEPAGRI was terminated in March
2014, because of his inability to present academic certificates which is an indispensable
condition for the contract registration at the Administrative Court (AT). Thus, it was agreed
with the last supervision mission to re-launch the tender for the position of Agri-business
specialist.
5. The Project implementation approach is through Lead Services Providers in each of the
three targeted value chains, the land tenure security services provider and the GIS service
provider. The LSPs for red meat and cassava have signed the contract and they are preparing
to start conducting the Participatory Rapid Appraisal (PRA) and their establishment in the
target area. The tendering process for procurement of the three Lead Service Providers
(LSPs) for the Value Chain is almost being finalised with the Horticulture. The tenders for
LTSP and GIS SP are expected to be finalized until November 2014.
2
6. Assumptions. In any planning process there have to be assumptions as the future is
unknown. Therefore, it is important to note that PROSUL had during the process of
planning and together with the supervision made all assumptions for smooth
implementation. The goal of our assumptions was to minimize the discrepancy between
assumptions used in the plan and what actually occurs. As a result, our assumptions have
been based on that the funds will be available on time. Moreover, the recruitment of the
LSPs were deemed crucial for a successful implementation of planned activities.
7. In this sense, the assumptions above need to be taken into consideration when evaluating the
status of implementation or progress. It is important to understand that there was a time lag
on process of disbursement of funds which were exogenous to the project by itself. In
addition, the recruitment of the LSPs has been a challenging task as well.
1.1 PROJECT OUTLINE
8. The Pro-Poor Value Chain Development Project in the Maputo and Limpopo Corridors
(PROSUL) in Mozambique was declared effective on 3 October 2012 for a period of 7 years
(2012-2019) and the Project was numbered in the Financing Agreement as follows: IFAD
LOAN NO. I-878-MZ; IFAD GRANT NO. I-C-1391-MZ; TRUST LOAN NO. E-15-MZ
and ASAP GRANT NO. C-ASP-1-MZ.
9. The total budget for PROSUL is estimated at 44.95 million. This budget can be split
according to the sources of funds as follows: IFAD Loan (US$ 16.3 million); IFAD Grant
(US$ 1.52 million); Spanish Trust Fund Loan (STF) (US$ 16.3 million); Adaptation for
Smallholder Agriculture Program (ASAP) (US$ 4.91 million); United Nations Capital
Development Fund (UNCDF) (US$ 0.14 million); Private Investors (US$ 1.9 million);
Beneficiaries (US$ 1.4 million); and the Government of Mozambique (GoM) (US$ 2.49
million)
10. PROSUL is organized into five components:
i) Componenent 1: Horticulture
ii) Component 2: Cassava
iii) Component 3: Red meat
iv) Component 4: Financial Services
v) Component 5: Institutional Support and Project Management
11. Component 1: Horticulture – The component aims at increasing the income of smallholders
growing vegetables in selected irrigated perimeters, by assisting them in intensifying
vegetable production, accessing support services to raise productivity and quality, and
developing remunerative market linkages both with modern and traditional markets. The
component has an estimated budget of US$ 12.75 million;
12. Component 2: Cassava - The component aims at shifting cassava from a subsistence crop to
a cash crop by developing a set of business models whereby smallholders would produce
3
increased volumes of good quality cassava and would have access to new types of markets
for cassava products. The component has estimated budget of US$ 3.92 million;
13. Component 3: Red Meat - The component aims at enabling livestock producers to take
advantage of market opportunities by promoting improved rangeland, higher production and
enhanced linkages between value chain stakeholders. This component has an estimated
budget of US$ 5.40 million;
14. Component 4: Financial Services1 - The objective of Component 4 is to ensure the access
of value chain stakeholders (including smallholders as well as other players down the value
chain such as commercial farmers, Livestock Vet Stores, Meat Trade Organisations (MTOs)
and cassava processors to adequate financial services provided at an affordable cost by
sustainable Micro Financial Institutions (MFIs) using innovative delivery mechanisms to
increase their outreach. This component has an estimated budget of US$ 14.5 million; and
15. Component 5: Institutional Support and Project Management - The objective of
Component 5 is to strengthen CEPAGRI, the government agency responsible for project
implementation. The component has an estimated budget of US$ 6.72 million.
16. Project area. PROSUL is being implemented across the Limpopo and Maputo corridors,
with a focus on priority production areas in 19 districts of the provinces of Gaza, Inhambane
and Maputo. The selected districts per province and component are:
Horticulture (9 districts): Maputo province (Boane, Moamba, Namaacha and
Marracuene) and Gaza province (Chibuto, Chókwè, Guijá, Manjacaze and Xai-
Xai);
Cassava (6 districts): Inhambane province of namely: (Inharrime, Jangamo,
Massinga, Morrumbene, Zavala) and Gaza province (Manjacaze); and
Red Meat component (7districts): Maputo province (Manhiça and Magude) and
Gaza province (Chokwe, Guijá, Massingir, Mabalane and Chicualacuala).
1.2 Functional Institutional Arrangements & Coordination
17. The Project implementation is coordinated by CEPAGRI, through a Project Management
Team (PMT) based at CEPAGRI Delegation in Xai-Xai. Other Government institutions
involved in the Project Implementation include: National Irrigation Institute (INIR –
Instituto Nacional de Irrigação); Agriculture Research Institute of Mozambique (IIAM –
Instituto de Investigação Agrária de Moçambique); National Directorate of Agrarian
Services (DNSA – Direcção Nacional de Serviços Agrários); National Directorate of
Veterinary Services (DNSV – Direcção Nacional de Serviços Veterinários); National
Directorate of Extension (DNEA – Direcção Nacional de Extensão Agrária); Directorate of
Economics (DE); National Directorate of Land and Forests (DNTF); National
1 However it has been agreed upon that the financial service component will be re-structured in the three following
sub-components: (i) Innovation and Outreach Facility; (ii) Financial Sector Deepening Fund; and (iii) Loan
Guarantee Fund, so as to address the bottleneck of lack of adequate collateral. Hence, the process of recruiting
consultants is underway.
4
Meteorological Institute (INAM), National Administration of Roads (ANE); Provincial
Directorates of Agriculture of the three Southern Provinces (DPAs) and District Services of
Economic Activities (SDAEs) of the 19 targeted districts.
18. The project is guided by the Steering Committee (PSC), chaired by the Permanent Secretary
of the Ministry of Agriculture or his/her designee, and composed of the MINAG National
Directors of DNSA, DNSV, IIAM, INIR, CEPAGRI, DNEA, DE, DNTF, Agriculture
Provincial Directors of Maputo, Inhambane and Gaza provinces, Representatives of Farmer
Group Organizations at local and national level, private sector, Lead Service Providers
(LSPs), Representatives of the Financial Intermediary Institution and Financial Service
Providers (FSPs). The PSC will ensure overall performance oversight and provide strategic
and policy guidance.
1.3 ABOUT THIS SEMI - ANNUAL REPORT (JANUARY TO JUNE 2014)
19. This report provides an insight on the project implementation progress for the period of
January – June 2014. In addition, this semi - annual implementation progress report takes
into account the recommendations done by the last supervision mission. Of course, the main
objective of the report is to highlight the project progress against the annual work plan and
budget (AWPB) for 2014.
20. In this context, the report is organized in the same way that AWPB and the data base of the
Planning, Monitoring & Evaluation have been structured. An introduction, project outline,
functional institutional arrangements & coordination about the progress report are
highlighted here as well.
21. The information contained in this report being the first semi - annual progress report was
gathered using the information from M&E System in place. Therefore, an attempt is made to
use it and above all to share the outcomes, though it is still earlier as the LSPs have just
come on board now for the two value chains, namely: Red Meat and Cassava. Although a
significant progress has been made on process of recruiting the LSP for Horticulture but not
yet on board.
22. However, it is worth mentioning the implementation during the period under review was
significantly affected by the delay in the disbursement of funds coupled with slow move in
getting the key project staff (namely the Financial Manager, Agro-business specialist) as
well as the long way in recruiting the LSPs. In addition, the process of training staff for e-
SISTAFE and its operationalization combined with decentralisation of the project to the
provincial level. Consequently, all these had adverse impact on activity implementation.
5
2 DETAILED IMPLEMENTATION PROGRESS BY COMPONENT
23. The project implementation during the period under review placed greater emphasis on the
set-up of e-SISTAFE system and decentralization of the Project from National to the
Provincial level; recruitment of the LSPs as well as on the remaining key project staff (the
PMT), preparation and supporting supervision mission among other activities carried out
across the project components and subcomponents. Table 1 and figure below summarises
the proportionate count of activities that were planned to be implemented and the physical
progress status.
Table 1: Number of Activities Implementation by Component during January - July 2014
Components
Planned Activities Accomplished Activities
Accomplished
(B/A) %
A B C
1 Horticulture 16 4 25%
2 Cassava 16 4 25%
3 Red Meat 15 3 20%
4 Financial Services 3 1 33%
5 Institutional Support and
Programme Management 29 16 55%
Total 79 28 35%
6
24. As it can be depicted from the figure above, a total number of 79 activities were planned for
the year 2014. However 3 out of 79 are considered as problematic activities. These 3
activities with problems are related to component 4 (Financial Services) which requires
reformulation.
25. Overall, the performance summary by the end of June 2014, shows that 31 activities are not
yet due, 20 are ongoing implementation and on schedule, 15 are ongoing but behind
schedule, 6 are due but not started (these are mostly activities related to the horticulture
component), 5 have been completed, 1 postponed and completed and 1 cancelled and not
completed.
2.1 Component 1 – Horticulture
26. Although, under the Horticulture component the recruitment of the LSP is still ongoing
process, some activities have been implemented during the period under review. These
include launching the tender for conducting irrigation technical studies for the rehabilitation
and improvement of irrigation perimeters. The evaluation has been carried out but the bid
was cancelled due to high amount presented by the bidder compared to the planned budget
and average rates for conducting irrigation studies as per INIR;
27. The Physical Progress of planned activities under this component are presented below
starting with subcomponent 1.1 and followed by subcomponent 1.2. Under the latter (1.2)
the process of renovation of the meteorological station at Chókwè research station is
ongoing process for the procurement of equipment as it can be depicted in progress register
from the system.
7
Physical Progress of Planned Activity by Component
and subcomponentUnit
1st Q 2nd Q 3rd Q 4th Q
Component 1 - Horticulture
Sub-component 1.1. Rehabilitation and Expansion of
existing irrigated perimeters
1.1.1
Technical assistance to the Water User Associations
(WUAs) members on organizational and management
matters
number 500INIR/CEPAGRI
(SDAE's, DPA's)xxx 0
Not yet due. This implementation of this is
subject to the recruitment of the LSP for
Horticulture
1.1.2
Conducting irrigation technical studies for the
prrehabilitation and improvement of irrigation
perimeters
number 1INIR/CEPAGRI/(DP
A's e SDAE's)xxx xxx 100%
Ongoing but behind schedule. The tender was
launched and the evaluation of this tender
carried out. However, the tender has been
canceled because the proposed budget is by
far higher than what is planned for.
1.1.3
Launching of tender for hiring of contractors for the
rehabilitation and improvement of irrigation
perimeters
number 1 INIR/CEPAGRI xxx xxx 0Ongoing and on schedule. It was pending
upon the above activity (1.1.2)
1.1.4Civil works for rehabilitation and improvement of
irrigation schemesnumber 9
INIR/CEPAGRI/(RBL
, DPA's e SDAE's)xxx xxx 0
Ongoing and on schedule. It was pending
upon the above activity (1.1.2)
1.1.5Conducting operation & maintenance works at
Regadio do Baixo Limpopo (RBL)number 1
INIR/CEPAGRI/(RBL
, DPA's e SDAE's)xxx xxx 100%
Ongoing and on schedule. No Objection has
been granted by IFAD and RBL has advanced
on the process of recruiting the company that
will be responsible for this activity.
1.1.6Supervision of rehabilitation and improvement civil
works of irrigation schemesnumber 1
INIR/CEPAGRI/(RBL
, DPA's e SDAE's)xxx 0
Not yet due. The supervision is expected to
start in first quarter
NrPhysic
Target
Implementing
Agenciy/
Institutions
Implementation Schedule by
QuarterAchievement
Results (% )Progress Status and Comments
Physical Progress of Planned Activity by Component
and subcomponentUnit
1st Q 2nd Q 3rd Q 4th Q
1.2.1Renovation of the metereological station at Chókwe
Reseach Stationnumber 1 INAM, CEPAGRI xxx xxx 50%
Ongoing and on schedule. No Objection was
granted by IFAD for the procurement of
equipment
1.2.2Technical training on meteorological station
equipment operattion at Chókwe Reseach Stationnumber 4 INAM,IIAM,DCAP xxx 0
Ongoing and on schedule. Subject to the
procurement of above equipment
1.2.3Conducting feasibility studies and on legal aspects
for Horticulture Service Hubsnumber 2
PLS, CEPAGRI, INIR,
DE, DPA's e SDAE'sxxx 0 Not yet due
1.2.4Conducting Participatory Rapid Appraisal (PRA) for
horticulture VCnumber 1
PLS, CEPAGRI, INIR,
DE, DPA's e SDAE'sxxx xxx 0
Ongoing but behind schedule. Waiting for the
finalization on the recruitment of LSP for
Horticulture
1.2.5Elaboration of the Value Chain Action Development
Plan for horticulture and AWPB for 2015number 2 PLS xxx 0 Not yet due
1.2.6Effective implementation of contract with the
Horticulture Lead Service Providernumber 1
CEPAGRI, INIR,
DNSA, DNEA,
DPA's, SDAE's
xxx xxx xxx 50%
Ongoing but behind schedule. The process of
recruiting the LSP for Horticulture is at its
advanced stage. The Technical Evaluation has
been finalised and No Objection granted by
FIDA to go ahead with negotiations
1.2.7Conduct Scopping study on Horticultural Value
Chainnumber 1 xxx 0 Not yet due
1.2.8Training on Farmer Fiel Schools (FFSs) methodology
for potential facilitators (horticulture)number 15 xxx xxx 0 Not yet due
1.2.9 Establishment and monitoring of FFSs (horticulture) number 6DNEA, CEPAGRI,
SDAEs, DPAs, PLSxxx 0 Not yet due
1.2.10Provision of KIT's to facilitators of FFSs and
producersnumber 300
INIR,
CEPAGRI,DPAs,
SDAEs
xxx xxx 0 Not yet due
NrPhysic
Target
Implementing
Agenciy/
Institutions
Implementation Schedule by
QuarterAchievement
Results (% )Progress Status and Comments
8
2.2 Component 2- Cassava
28. Under this component, the main activities that were carried out include the effective
implementation of contract with the cassava LSP, the elaborations of the ToRs for the
feasibility studies, the preparation of cassava multiplication plan and the starting of PRA as
depicted by the physical progress register below.
Physical Progress of Planned Activity by Component
and subcomponentUnit
1st Q 2nd Q 3rd Q 4th Q
Sub-component 2.1. Strengthening linkages between
Value chain stakeholders
2.1.1Renovation of metereological station at Nhacoongo
Agronomic Postnumber 1 INAM, CEPAGRI xxx 0 Not yet due
2.1.2Technical training on meteorological station equipment
operattion for Nhacoongo Agronomic Post staffnumber 4 INAM,IIAM,DCAP xxx 0 Not yet due
2.1.3Training on Farmer Fiel Schools (FFSs) methodology for
potential facilitators (cassava)number 15
PLS, DNEA,DPA
Gaza e I'banexxx 0 Not yet due
2.1.4 Provision of KIT's to facilitators of FFSs and producers number 300DPA's, SDAE's, PLS
e CEPAGRIxxx 0 Not yet due
2.1.5Installation of sprinkler system for the multiplication of
cassava cuttings at Nhacoongo Agronomic Postnumber 1
IIAM, DPA,
CEPAGRIxxx 0 Not yet due
2.1.6 Establishment of cassava multiplication cuttings sites ha 4 IIAM, PLS,SDAE's xxx xxx 50%
Ongoing and on schedule. The preparation is
underway and it has been agreed to plan or
establish 35 ha of cassava multiplication in 2014
2.1.7 Establishment of germination Chamber number 1 IIAM xxx xxx 25%Ongoing and on schedule. Mater plan has been
prepared
2.1.8 Establishment and monitoring of FFSs (Cassava) number 6PLS, CEPAGRIDPA
's e SDAE''sxxx xxx 0% Ongoing but behind schedule
2.1.9Conducting feasibility studies and on legal aspects for
the Cassava service hubsnumber 2
CEPAGRI, DNSA,
DNEA, DE, FDA,
PLS, DPA's
xxx xxx xxx 0 Ongoing but behind schedule
2.1.10Preparation of bid documents for the acquisition of
cassava processing equipmentnumber 1
CEPAGRI, PLS,
DPA'sxxx xxx 0 Ongoing but behind schedule
2.1.11Technical assistance to farmers organisations on
organizational and management mattersnumber 300
SDAE's, DPA's e
PLSxxx xxx 0 Ongoing but behind schedule
2.1.12
Training in agro-processing, management, business plan
and markets matters for the potential emergent
enterprises
number 30SDAE's, DPA's e
PLSxxx 0 Not yet due
2.1.13 Conducting Scopping study on Cassava Value Chain number 1PLS, CEPAGRI,
DNSA, IIAM, DE, xxx xxx 0 Ongoing but behind schedule
2.1.14Conducting Participatory Rapid Appraisal (PRA) for
cassava VCnumber 1
CEPAGRI,PLS,
SDAEs, DPAsxxx xxx xxx 50%
Ongoing but behind schedule. The contract has
been signed with the LSP and the PRA due to
start in August 2014
Sub-component 2.2. Value chain environment
2.2.1Elaboration of the Value Chain Action Development Plan
for horticulture and AWPB for 2015number 2 PLS xxx 0 Not yet due
2.2.2Effective implementation of contract with Cassva Lead
Service Providernumber 1
CEPAGRI, IIAM,
DNSA, DNEA,
DPA's, SDAE's
xxx xxx xxx 100%The implementation of contract has started with
LSP (SNV/Malhahle)
NrPhysic
Target
Implementing
Agenciy/
Institutions
Implementation Schedule by
QuarterAchievement
Results (% )Progress Status and Comments
9
2.3 Component 3- Red Meat
29. Under this component it is important to highlight the starting of effective implementation of
contract with the Lead Service Provider for Red Meat (SNV/ILRI). Thus, the following
actions have been fulfilled and underway, namely: the presentation of the LSP to the
Districts and Provincial Directorate of Agriculture (PDAs); commencement of Participatory
Rapid Appraisal (PRA); preliminary discussion with SDAEs regarding the identification of
strategic locations for the water points for livestock and to be confirmed by the ongoing
PPA; the definition of start-up kits for the animal health agents and livestock producers; the
preparation for launching the tender for the feasibility study for the construction of the
slaughterhouse as depicted by the activity progress register below.
Physical Progress of Planned Activity by Component
and subcomponentUnit
1st Q 2nd Q 3rd Q 4th Q
Sub-component 3.1. Value Chain Environment
3.1.1Conducting Participatory Rapid Appraisal (PRA) for Red
Meat VCnumber 1
PLS, CEPAGRI,
DNSV, IIAM, DE,
DPA e SDAE's
xxx xxx 75%
Ongoing but behind schedule. This activity is
ongoing and it is expected to be finalised by
September 2014.
3.1.2Elaboration of the Value Chain Action Development Plan
for horticulture and AWPB for 2015number 2 PLS xxx 0 Not yet due
3.1.3 Conducting Scopping study on Red Meat Value Chain number 1DNSV,PLS,CEPAGRI
, SDAEs, DPAsxxx 0
Postponed and not completed. This has been
cancelled completely because the PRA and the
feasibility study for the slaughter house will
cover most aspects
Sub-component 3.2. Production Improvement
3.2.1
Carry out survey for identification of strategic locations
for construction/rehabilitation/upgrading of drinking
water points for livestock
number 3
PLS,
CEPAGRIDNSV,
DPAs e SDAE's
xxx xxx 25%Ongoing but behind schedule. A meeting with
SDAEs was held and proposal advanced
3.2.2Launching of tender for hiring of contractors for the
construction of drinking water pointsnumber 1
PLS, CEPAGRI,
DPA'sxxx 0 Not yet due
3.2.3Provision of start-up KITs to the livestock Animal Health
Agents and Livestock Producersnumber 500
DPA's, SDAE's, PLS
e CEPAGRIxxx 0 Not yet due
3.2.4Carry out an assessment for the identification of fodder
banks planned to be establishednumber 1
DNSV, IIAM,
SDAE's, PLSxxx xxx 0 Not yet due
3.2.5
Trainingn on the preparation of business plans and
management to the potential business owners of
veterinary pharmacies
number 30PLS, DNSV, DPA's e
SDAE'sxxx 0 Not yet due
3.2.6Technical assistance to the livestock producers on
organizational and management mattersnumber 400
SDAEs,PLS,
CEPAGRIxxx xxx 0 Not yet due
3.2.7Training in Animal Health and Management matters for
Animal Health Agentsnumber 100
CEPAGRI,DPAs,DN
SV,SDAEs, PLSxxx 0 Not yet due
3.2.8Carry out civil works for rehabilitation/improvement of
water points (3 holes and 3 dams)number 6
DNSV,PLS,
CEPAGRI, SDAEsxxx xxx 0 Not yet due
Sub-component 3.3. Market linkages
3.3.1Effective implementation of contract with Red meat Lead
Service Provider number 1
CEPAGRI, IIAM,
DNSV, DNEA,
DPA's, SDAE's
xxx xxx xxx 100%
Ongoing but behind schedule. Effective
implementation of contract through LSP
(SNV/ILRI) is ongoing.
3.3.2Technical assistance for Meat Traders on organizational
and management mattersnumber 80
DPAs,
SDAEs,DNSV, PLSxxx 0 Not yet due
3.3.3Carry out feasibility study for the construction of the
slaughterhousenumber 1
CEPAGRI, DNSV,
DPAs, PLSxxx xxx 0
Ongoing and on schedule. The ToR have been
elaborated and the tender is expected to be
launched in August 2014.
3.3.4Carry out survey for the identification of strategic
locations for cattle fairsnumber 3
PLS,DNSV,DPAs,SD
AEsxxx xxx Not yet due
NrPhysic
Target
Implementing
Agenciy/
Institutions
Implementation Schedule by
Quarter Achievement
Results (% )Progress Status and Comments
2.4 Component 4- Financial Services
30. Under this component no substantial activities have been implemented during this period.
However, there have been two IFAD missions that agreed with a reformulation and the
10
process is ongoing in recruiting international and national consultants fine-tune the design of
the financial services component.
Physical Progress of Planned Activity by Component
and subcomponentUnit
1st Q 2nd Q 3rd Q 4th Q
Sub-component 4.1. Financial services
4.1.1Participation in the process of redesigning the Financial
Services Componentstudy 1 CEPAGRI xxx xxx 25%
Ongoing and on schedule. The recruitment of
international and national consultants fine-tune
the design of the financial services component is
expected to be completed by August or
September 2014.
4.1.2Participation in the selection of financial institutions (IF
's) to be involved in the implementation of C4number 3 CEPAGRI, IFI xxx 0 Not yet due
Sub- component 4.2. Capacity Building
4.2.1
Contracting international technical assistance for
providing support on the evaluation of the potential
MFIs
number 1 CEPAGRI xxx 0 Not yet due
NrPhysic
Target
Implementing
Agenciy/
Institutions
Implementation Schedule by
QuarterAchievement
Results (% )Progress Status and Comments
2.5 Component 5- Institutional Support and Project Management
31. Under this component a considerable progress was achieved in the activities implementation
during the 1st semester. However, it is worth mentioning that the bulk of these implemented
activities were not from AWPB for 2014 as such but very important. For example, the
negotiation process for LSP for the Red Meat and Cassava Value Chains, the recruitment of
Financial Manager, Procurement Officer, drafting of various ToRs, holding meetings with
various institutions, the evaluations process, just to mention few of them.
32. In terms of planned activities for the semester, the following were accomplished;
The finalisation and the establishment of the PM&E system with the support of the
consultant. Thus, the system has been set up and operational as depicted by the
progress register being presented along this report;
The finalisation of Annual Work Plan and Budget for 2014 and elaboration of 2013
Annual Progress Report;
The preparation and carrying out in March 2014, the first planned Steering
Committee meeting for 2014, with main objective to approve the 2013 Annual report
and 2014 AWPB. However, the PSC is still not yet fully staffed as representatives of
LSPs have not yet been appointed;
The preparation and accompanying the IFAD supervision mission that took place
from 31 March to 11April 2014;
The re-launching and finalisation of the recruitment of Horticulture LSP. Following
IFAD No objection provided on 31 January 2014, the re-launching of tender was
carried out and deadline for submitting technical and financial proposals was 25
March 2014. The evaluation has been carried out as well. Four proposals were
received as follow: 1) SOFRECO/Agro-Serviços, 2) GAPI/Novedades, 3)
OIKOS/LUPA and 4) IEPA. However, only GAPI/Novedades Consortium with
11
77.21 points followed by OIKOS/LUPA with 73.13 points have reached the
minimum required score. Thus, GAPI/Novedades has been selected and negotiations
is ongoing process;
The preparation and participation on climate change adaption capacity training
carried out by Dr. Luís Artur, from Eduardo Mondhlane University, whereby 35
staff have participated (19 district extension agents, 3 provincial focal points, 4 PMT
staff, 3 CEPAGRI staff, 4 MINAG staff and 2 Meteorological station staff);
The contracting process of recruitment of Land Tenure Security Service Provider
(LTSSP) is at a very early stage. No Objection from IFAD has been granted for the 5
shortlisted bidders that have expressed their expression of interest. The next steps for
the coming months will be the RFP for Technical and Financial;
12
Physical Progress of Planned Activity by Component
and subcomponentUnit
1st Q 2nd Q 3rd Q 4th Q
Sub-component 5.1 Institutional Support
5.1.1 MSc on adaptation to climate change number 1 CEPAGRI xxx xxx xxx 25%
Ongoing and on schedule. The two CEPAGRI
staff have been selected to attend tis course. In
August they will starting with English course in
South Africa before the actual course in Climate
Change.
5.1.2
Short term training courses on: M&E and KM, value
chain, GALS Methodology, English, climate change,
financial management and land tenure security
number 15 CEPAGRI xxx xxx xxx xxx 50%Ongoing and on schedule. Training on M&E and
Financial Management have been carried out.
5.1.3Training in climate change for CEPAGRI/PMT, focal
points and LSPs number 1 CEPAGRI xxx xxx 100%
Ongoing and on schedule. Backstopping to the
project was provided for
5.1.4 Recruitment of horticulture LSP number 1
CEPAGRI, INIR,
IIAM, DNSA e
DPA's
xxx xxx xxx xxx 50%
Ongoing but behind schedule. Following IFAD
No objection provided on 31 January 2014, the re-
launching of tender was carried out. The
evaluation has been carried out as well. Four
proposals were received and only
GAPI/Novedades Consortium with 77.21 points
followed by OIKOS/LUPA with 73.13 points have
reached the required score.
5.1.5Finalization of the recruitment process of the Cassava
LSPnumber 1 CEPAGRI,DPAs xxx xxx xxx xxx 100%
Ongoing but behind schedule. The process of
recruiting the LSP for cassava has been finalised
and SNV/Mahlahle are now working
5.1.6Finalization of the recruitment process of the Red meat
LSPnumber 1 CEPAGRI,DPAs xxx xxx xxx xxx 100%
Ongoing but behind schedule. The process of
recruiting the LSP for Red Meat has been
finalised and SNV/IlRI are now working
5.1.7
Development of the institutional development plan,
communication strategy, and capacity building plan for
Agribusiness education institutions
number 3 CEPAGRI xxx xxx 0 No yet due
5.1.8 Elaboration of the PROSUL gender strategy number 1CEPAGRI,DNEA,DE,
DPAs,PLSxxx xxx xxx xxx 25% Ongoing but behind schedule.
5.1.9 Conducting quantitative baseline survey number 1CEPAGRI,DE,DPAs,
SDAEsxxx xxx xxx xxx 75%
Ongoing but behind schedule. The data
collection has been finalised. Currently the
process of data analysis is underway and the
report is expected in August 2014
5.1.10
Development of Project communication and image
activities (Maps, Banners, brochures, logo, Tv, radio,
etc)
number 1 CEPAGRI xxx xxx xxx xxx 50%
Ongoing and on schedule. Some banners and
brochures were made for the Training on Climate
Change and Gender.
5.1.11
Technical Assistance for the backstopping to the
Financial Management on the Tompro installed at
CEPAGRI Delegation
number 1 CEPAGRI xxx xxx xxx xxx 100%Ongoing and on schedule. Training on Climate
Change and Gender has been carried out.
Sub-component 5.2 Land Tenure Security
5.2.1 Recruitment of Land Tenure Security Sevice Provider number 1CEPAGRI,DNTF,DP
ASxxx xxx xxx xxx 50%
Ongoing and on schedule. No Objection from
IFAD has been granted for the 5 shortlisted
bidders that have expressed their expression of
interest. The next steps for the coming months
will be the RFP for Technical and Financial
5.2.2 Recruitment of the Land Tenure Advisor number 1 CEPAGRI, DNTF xxx 25%Ongoing but behind schedule. The ToR
elaborated and the tender launched
5.2.3 Recruitment of GIS service provider number 1 CEPAGRI xxx xxx xxx 25%Ongoing but behind schedule. The ToR
elaborated and the tender launched
5.2.4 Participatory appraisal on land tenure security situation number 1
PSPT,DNTF,
CEPAGRI,DPAs,
SDAEs
xxx xxx 0 Ongoing and on schedule.
NrPhysic
Target
Implementing
Agenciy/
Institutions
Implementation Schedule by
QuarterAchievement
Results (% )Progress Status and Comments
13
Physical Progress of Planned Activity by Component
and subcomponentUnit
1st Q 2nd Q 3rd Q 4th Q
5.3.1 Training on GALS approach for LSP for extension agents number 25 CEPAGRI,DE, DNEA xxx xxx 25%
Ongoing and on schedule. The preparation for
the training on GALS approach is at its advanced
stage. This training is expected to take place in
September 2014.
5.3.2 Participation in national and international events number 4 CEPAGRI xxx xxx xxx xxx 0 No yet due
5.3.3Exchange visits and experiences with other similar
projects within the regionnumber 2 CEPAGRI xxx 0 No yet due
5.3.4 External audit to PROSUL number 1 CEPAGRI xxx 0 No yet due
5.3.5Preparation and coordination of Project follow-up
Missions (e.g: supervision, support)number 4 CEPAGRI, FIDA xxx xxx xxx xxx 25% Ongoing and on schedule.
5.3.6Joint monitoring with Key MINAG institutions and other
SC membersnumber 2
CEPAGRI, DNs,
DPAs, SDAEsxxx No yet due
5.3.7
General operating activities and execution of related
expenses (e.g: Salaries, allowances for staff of PMT, focal
points, counterparties, health insurance etc.)
lumpsu
mCEPAGRI xxx xxx xxx xxx 50% Ongoing and on schedule.
5.3.8
General operating activities and execution of related
expenses (Office supplies, communications, maintenance
of means, insurance)
lumpsu
mCEPAGRI xxx xxx xxx xxx 50% Ongoing and on schedule.
5.3.9General operating activities and execution of related
expenses (Monitoring of general activities)
lumpsu
mCEPAGRI xxx xxx xxx xxx 50% Ongoing and on schedule.
5.3.10 Oganize Project Steering Committee (PSC) meeting number 2 CEPAGRI xxx xxx 50% Ongoing and on schedule.
5.3.11Thematic meetings with institutions of MINAG, DPAs,
SDAEs and platformsnumber 3
CEPAGRI,DNs,DPA
s, PLSxxx xxx xxx xxx 0 No yet due
5.3.12 Planning retreat number 1 CEPAGRI xxx 0Not yet due. It is expected to be carried out
September/October
5.3.13 Finalize the estblisment of the M&E System number 1 CEPAGRI xxx xxx xxx 100%
Completed. The Sytem has been installed at PMT
and is being used. Shortly is expected to be
installed for the LSP sellected
5.3.14Development of Performance Assessment guidelines for
PMT number 1 CEPAGRI xxx xxx
NrPhysic
Target
Implementing
Agenciy/
Institutions
Implementation Schedule by
QuarterAchievement
Results (% )Progress Status and Comments
14
3 FINANCIAL PERFORMANCE
33. The planned budget for 2014 is 169,985,575.00 MZN (about 5.7 million USD). Actual
disbursement for the period under review was 52,253,362.21 MZN (1,7million USD),
which corresponds to 31% of the total planned budget.
34. An analysis of expenditure by Component is provided in Table 1. Compared to budget,
expenditure performance for the components accounted as follows: 14% for Institutional
Support and Project Management. For the rest of components it has been registered very
insignificant execution well below 0.5%. Overall, the total expenditure for the period under
review was 6,588,443.00 MZN equivalent to 219,615.00 USD, which represents only 3%
over the planned budget of 169,985,575.00 MZN (about 5.7 million USD).
35. However, it is important to stress that this low level of expenditure is attributed to the
factors highlighted in this progress report, namely; the delays in the operationalization of E-
SISTAFE and Project decentralization, the lengthy process of recruiting the LSPs and
replacing the previous financial manager coupled with a delay in the disbursement of funds.
The funds were received only in June 2014. Consequently, apart from very few expenditure
categories like salaries and allowance that were paid retroactively but in June, meaning that
in real terms the expenditure registered is for June. Nevertheless, this situation is expected to
improve in coming months.
Table 2: Expenditure by Component January - June 2014
Code COMPONENT
Planned budget Vs Executed (MZN) %
Planned Budget Actual Expenditure
C1 Horticulture 82.194.685 163.587 0,20%
C2 Cassava 15.246.717 3.423 0,02%
C3 Red Meat 27.825.469 50.763 0,18%
C4 Financial Services 1.798.800 0 0,0%
C5 Institutional Support
and Project
Management 42.919.904 6.370.670 14,0%
Total 169.985.575 6.588.443 3,00% Source: Financial and Administration Unit as at 30th June 2014.
15
4 IMPLEMENTATION SUPPORT AND SUPERVISION MISSIONS
36. During the period under review, the project had one supervision mission that took place
between 31 March - 11 April 2014, in which the main objective was to review the
implementation status of PROSUL, provide support for an effective implementation of
project activities, identify constraints and to agree on solutions.
37. The mission composition was as follows: Espen Berg (Team Leader – IFAD), Antonio Rota
(Livestock Expert – IFAD), Michael Hamp (Rural Finance Expert – IFAD), Stephen
Twomlow (Climate Adoption Expert – IFAD), Elizabeth Ssendiwala (Gender and Youth
Expert – IFAD), Elisa Distefano (M&E and KM Expert – IFAD), Steven Jonckheere (Land
Tenure Expert – IFAD), Ana Zandamela (Financial Management and Procurement Support
– IFAD), Jelle Tas (Value Chain Expert – Consultant), Alaudio Chingotuane (Financial
Management and Procurement Expert – Consultant).
38. At the end of mission an Aide-Memoire representing the findings and recommendations of
the Mission was discussed and agreed at a wrap-up meeting held on 11 April 2014 chaired
by CEPAGRI Director Mr. Abdul Cesar Mussuale. Furthermore, a matrix of agreed action
was produced. For the status of its implementation refer to annex 2.
16
5 KEY CONSTRAINTS AND ACTION REQUIRED
39. During the period under review the project confronted with some constraints and challenges
while implementing activities. The most critical one was related to the lack of funds due to
some delays on 2nd disbursement as it was anticipated in the Letter to the Borrower, that
“projects using CUT and e-SISTAFE, the amount of the initial advance to the Designated
Account will be based on the subsequent two quarters’ worth of cash-flow requirements, in
line with the approved AWPB. Consequently, thereafter, from the second withdrawal
application, replenishment of financing proceeds for each advance as applicable will be
based on the succeeding quarterly cash flow requirements, minus the project accounts’ cash
balance (both designated account and advance accounts) at the previous quarter end, plus
the advance” but to flow or channeled through functioning e-SISTAFE.
40. Furthermore, the delay in the 2nd disbursement of funds was exacerbated by the need to
fulfill the position of the Financial Manager. This position was only accomplished in
May/June.
41. Clearly, external factors that influenced project implementation during the period under
review include:- number of activities that were not implemented as scheduled due to the late
availability of funds but also as a result of complexity in the recruitment of Lead Service
Providers for the Value Chains.
42. However, since the process of getting the LSPs on board are almost finalized, the PMT is
determined to move forward and expedites the implementation of activities planned for.
Thus, in the remaining months until December 2014, the PMT plans to concentrate on the
key activities that are ongoing but behind schedule as well as activities that are due but not
started.
17
Annexes
18
Annex 1: PROSUL Key Partners and Project Staff
Project Steering Committee (PSC)
The PSC is the steering committee that provides policy support and overall guidance to the
project. It is expected to meet at least twice in a year (during the first quarter and last
quarter).The composition of its members is as follows:
1. The Permanent Secretary of the Ministry of Agriculture (Chairman)
2. MINAG National Directors of DNSA, DNSV, IIAM, INIR, CEPAGRI, DNEA, DE;
3. National Director of INAM and the Southern Regional Delegate
4. Agriculture Provincial Directors of Maputo, Inhambane and Gaza provinces,
5. Representatives of Farmer Group Organizations at local and national level,
6. Private sector,
7. Lead Service Providers (LSP),
8. Representatives of the Financial Intermediary Institution and Micro (Financial)
institutions
Project Management Team (PMT)
The PMT has overall responsibility for the project administration and management, thereby
ensuring that the project is implemented in accordance with the Grant and Loan Agreements and
that it is consistent with the Government of Mozambique policies and regulations. In addition,
the CEPAGRI/PMT supervises and advises all implementing agencies and Lead Service
Providers for the three value chain (Horticulture, Cassava and Red Meat) in the project.
The PMT is not yet completed the recruitment of all key project staff. Thus, the PMT is currently
consisting by the following members:
Nr Position Title/Name
1 Project Coordinator Mr. Daniel Ozias Mate
2 Gender Specialist Mr. Francisco António de Lisboa
3 Agribusiness Specialist Mr. Joel Inácio Cossa2
4 Financial Manager Mrs. Natércia Cossa3
5 Planning, M&E and KM Officer Mr. Rufino Joaquim Duvane
6 Financial Assistant Mr. Júlio Marcelino Macaco
7 Procurement Officer Mrs. Beatriz Júlio Muchate4
8 Project Assistant/ Secretary Mrs. Rachida Jafar Abdul
2 His contract with CEPAGRI was terminated in March 2014 and the announcement for his replacement has been launched recently 3 She has joined the project in June 2014, replacing Mr. Paulino Bernardo 4 She has been recruited recently (July 2014)
19
CEPAGRI Counterpart Staff
Nr Position Title/Name
1 Horticulture/ M&E and KM Mr. Egídio Mutimba5
2 Cassava Value Chain Mrs. Pureza Baptista Monjane
3 Red Meat Value Chain Mr. Manuel António Langa
4 Financial Management Dep. Mrs Teresa Mangue
Mr Salomão Budula and
Mrs Vanda Mucavele
Nr Position Name
1 Cassava Value Chain SNV/ Malhalhe
2 Red Meat Value Chain SNV/ IRLI
3 Horticulture Value Chain Not recruited yet
4 Land Tenure Service Provider Not recruited yet
5 GIS Service Provider Not recruited yet
5 He has been award sponsorship by the project to attend a master degree on Climate Change
20
Annex 2: 31 March to 11 April 2014 Agreed Action
Supervision Mission Recommendation Actions
# Agreed action Responsibility Agreed date Status as at 30th June
1 Activate execution of funds
in e-SISTAFE at PROSUL
CEPAGRI /
MINFIN
Apr 2014 Completed and in use
2 Finalize Horticulture LSP
selection and negotiations
PMT July, 2014 Almost finalised
3 Irrigation tender evaluation PMT June, 2014 Finalised. The tender was
cancelled. It was agreed with
IFAD that CEPAGRI and
INIR would explore the
possibility of engaging
Academic Institutions
4 Irrigation study PMT Aug. 2014 Not started
5 Contracting Irrigation Civil
works
PMT Nov. 2014 No objection provided to
contract a company to
undertake maintence works at
the Regadio do Baixo
Limpopo
6 Master plan approved and
endorsed
MINAG April, 2014 Almost finalized Submitted to
MINAG National Directorates
7 Launch tender for Scoping
Study
PMT July, 2014 Not started.
8 Finalize Cassava LSP
negotiation
PMT May, 2014 Completed
9 Explore support for new
processing platform
PMT May, 2014 Ongoing
10 Sign contract between
CEPAGRI and SNV/ILRI
Consortium
CEPAGRI,
SNV/ILRI
April 2014 Completed
11 Finalize TORs for PRA
(including HIV, Climate
Change and Gender
appraisal)
CEPAGRI,
SNV/ILRI
April 2014 Finalised
12 Undertake PRA activities
for the RMVC component
SNV/ILRI April 2014 Almost completed
14 Finalize TORs for the
feasibility study on
slaughtering facilities
(including alternative
business options)
CEPAGRI May 2014 Finalised
15 Undertake the feasibility
study for establishing a new
Consultant July 2014 Ongoing
21
# Agreed action Responsibility Agreed date Status as at 30th June
slaughterhouse
16 Start RMVC activities
according to the SNV/ILRI
work plan
SNV/ILRI July 2014 Ongoing
17 Explore potential
partnership with
DANIDA/GAPI on the
Agro-Investe LGF
PMT / IFAD May, 2014
18 Explore potential
partnership with the multi-
donor Financial Sector
Deepening Trust Fund
PMT / IFAD May, 2014
19 Hire consultant to develop
the details of the Innovation
and outreach facility
PMT June, 2014 Ongoing
20 Finalise the recruitment of
the Financial Manager
PMT April , 2014 Finalised
21 Finalise the recruitment of
the Financial Service
Expert, Procurement officer
and Agribusiness specialist
PMT July, 2014 Procurement officer recruited,
Agro-business specialist
ongoing process
22 Recruit the Agribusiness
and Implementation support
consultant
PMT April, 2014
23 Develop a performance
assessment system
PMT July, 2014 It will be done together with
the Update of PIM
24 Clear TOMPRO backlog PMT June , 2014 Ongoing
25 Improve CMFs PMT June, 2014 Ongoing
26 Insure PMT staff PMT June, 2014 Ongoing
27 Transfer procurement
documentation to Xai-Xai
PMT June, 2014 Finalized
28 Prepare Financial reports for
2013
PMT May, 2014 Finalised and submitted
29 Submit WA2 (pending
hiring of Financial
Manager)
PMT May, 2014 Finalised and submitted
30 Identify staff member for
post-graduation training in
climate change adaption
CEPAGRI June, 2014 Identified and ongoing
process
31 Carry out climate change
adaption capacity training
for LSPS
PMT and
consultant
June, 2014 Carried out
32 Complete rehabilitation of
two meteorological stations
PMT and
NDMA
July, 2014 Ongoing
22
# Agreed action Responsibility Agreed date Status as at 30th June
33 Update MINAG gender
strategy
PMT Oct. 2014 Ongoing
34 Develop PROSUL gender
strategy
PMT July, 2014 Ongoing
35 Develop gender module
GALS training
PMT/Consultant July, 2014 Ongoing