PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB7521 Project Name Southern Sudan Emergency Food Crisis Response Project (AF IV) Region AFRICA Country South Sudan Sector Crops (30%); Other social services (60%); General agriculture/fisheries/forestry (10%) Theme Global food crisis response (100%) Lending Instrument IPF Project ID P149700 Borrower Ministry of Finance, Commerce, Investment and Economic Planning, Republic of South Sudan Implementing Agency Ministry of Agriculture, Forestry, Tourism, Animal Resources, Cooperatives and Rural Development Ministry Complex Kololo Road Juba South Sudan Tel: +211 956-335352 paitemg@hotmail.com Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared/Updated February 11, 2014 Date of Appraisal February 18, 2014 Authorization Date of Board Approval March 13, 2014 I. Country and Sector Background 1. South Sudan has faced long-running and continuing food insecurity- mainly an artifact of the breakdown of agricultural support services, institutions and infrastructure and a legacy of the prolonged civil conflict. In the last nine years since becoming semi-autonomous and subsequently independent, the country has only posted two years (2006 and 2009) with a positive food balance. From monitoring data, it is now clear that the country has experienced an overall decline in food production since it gained independence with a corresponding increase in reliance on imports to cover the food deficits. Overall contraction of the economy as a result of the government’s austerity program over the last two years together with the depreciation of the local currency already constrict the amount of food that households can access through the market. Indeed, earlier projections for the 2013 consumption year indicated that about 4.1 million people would face food insecurity, of which over 1 million would be severely food insecure. 2. Complicating further these ongoing challenges in food security, violence erupted in South Sudan in December, 2013. The hostilities and unrest have led to massive displacement of people (both because of the fighting itself as well as fear of the violence). Available statistics indicate that over 740,000 people are now internally displaced including over 79,000 civilians who have sought protection in the United Nations (UN) protection sites across the country. Many more have lost their livelihood assets, especially food stocks to the contending forces thus exposing them to food insecurity. The violence has also destabilized food markets mainly because of restrictions to movement especially in commodity supply corridors, destruction of infrastructure, and fleeing of foreign traders. These developments have increased the number of people suffering from food deprivation thus escalating the already serious food security situation in the country. The UN now estimates that up to 7 million people - nearly two thirds of the total population - are at risk of some level of food insecurity, with 3.7 million already facing acute food insecurity. 3. A ceasefire agreement was signed on January 23, 2013, and talks are continuing, though violence continues in the worst affected states. Even if the current cessation of hostilities is implemented, the displaced and those who suspended agricultural production due to the uncertainty created by the violence have already missed the current cropping season and this will have knock-on effects on food production and availability in the country not only in 2014 but also into 2015. The country is therefore in dire need of food security assistance to meet the basic needs of the most vulnerable. 4. This project is designed to help respond to this emerging food crisis and will provide resources to eligible beneficiaries to improve crop productivity, increase food production and to better manage food upon harvest. In addition, it will provide cash or food to vulnerable but able- bodied people in exchange for their participation in public works as well as direct food support to persons who are unable to work due to area insecurity or other incapacities. This support would: (i) help eligible beneficiaries to protect their socioeconomic assets by preventing negative coping strategies, such as selling productive assets and incurring debt, which would undermine future production and productivity, and (ii) allow for more rapid re-engagement of beneficiaries in production and rebuilding of their livelihoods when security improves. II. Project Development Objectives 5. To support the adoption of improved technologies for food production and storage, and provide cash or food to eligible beneficiaries in South Sudan. III. Rationale for Bank Involvement 6. Even before the current tensions, South Sudan was experiencing significant challenges to its economy and recovery effort but had registered some gains in food security. The current crisis has now already rolled back some of this progress and increased the number of people suffering from deprivation and malnutrition. Because of the current crisis, the government is back into austerity mode and faces challenges and significant tradeoffs in allocating its limited resources towards alleviating the food crisis amidst other urgent needs. The government has placed requests and appeals to several donors – including the World Bank- for assistance especially as oil revenues have declined mainly because of a shutdown of production in one of the oil producing States as a result of insecurity. However, most donors are still assessing their potential support in light of the fluid country conditions. The continued food insecurity amidst limited ability of government to fully respond to the crisis therefore provides a rationale for Bank involvement to help secure the livelihoods of the vulnerable. IV. Description 6. The project is formulated in the context of the global food crisis and is designed to scale up ongoing activities in productivity enhancement and safety nets. The project has three components: i). Support to Agricultural Productivity (US$ 3.0 million): This component seeks to increase farmers’ own production and to improve postharvest handling and management of food crops. This component would support provision of inputs (seeds and tools), technical advice on production and postharvest management, and construction of low- cost food banks and granaries at household and community levels. ii). Strengthening Community Safety Nets (US$5.5 million): This component provides support for a safety net program that targets food insecure households. The program will be based on a flexible and differentiated targeting approach where in some areas, beneficiaries will be required to participate in high priority public works in exchange for food or cash, while in others (depending on the need and prevailing circumstances), beneficiaries, identified based on predetermined criteria through a facilitated process, will be provided direct food support. iii). Support to Project Implementation (US$ 0.5 million): This component finances administrative costs of the Project Coordination Unit, including, procurement, monitoring, reporting and evaluation of activities under the project. V. Financing 7. Total cost for the proposed project is US$ 9.0 million in IDA Grant. Source: (US$m.) IDA 9.00 Borrower 0.00 Total 9.00 VI. Implementation 8. The project will be implemented by a Project Implementation Unit (PIU) at the Ministry of Agriculture, Forestry, Tourism, Animal Resources, Fisheries, Cooperatives and Rural Development. The PIU will be responsible for overall fiduciary safeguard aspects while on-the- ground execution will be contracted to NGOs and agencies (including UN Agencies). Procurement arrangements will follow the “Guidelines for Procurement under IBRD Loans and Credits – May 2004� and Guidelines for Selection and Employment of Consultants by World Bank Borrowers –May 2004�and revised in October 2006. The “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants� dated October 15, 2006 and revised in January 2011 will apply. VII. Sustainability 9. Funding under this operation is primarily meant to address emergency food needs for the beneficiary communities. Even then, major activities under the project (e.g. support for improved production through provision of advisory services) are inherently oriented towards sustainability and would lay the foundation for improved food security in South Sudan. VIII. Lessons Learned from Past Operations in the Country/Sector 10. This operation would be the fourth additional financing for the Southern Sudan Emergency Food Crisis Response Project and draws from lessons learnt from the implementation of the parent project, the three subsequent additional financing tranches as well as another Bank supported operation in the agriculture sector in South Sudan. Key among these lessons are the need to: (i) empower local governments to oversee implementation by contracted NGOs so as to promote accountability; (ii) ensure that some expertize and capacity remains in program areas to continue assisting beneficiary communities as extension workers under typical projects in South Sudan are temporary recruits of NGOs, and they usually leave the project areas after the closure of the project, leaving the farmers to their destiny; and (iii) provide a critical threshold of support (combination of inputs, storage facilities, access roads) to beneficiary communities so as to guarantee that they become self-sustaining. IX. Safeguard Policies (including public consultation) Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X X. List of Factual Technical Documents None XI. Contact point World Bank Abel Lufafa Title: Senior Agricultural Specialist Tel: 2024735748 Email: alufafa@worldbank.org Location: Washington DC, USA (IBRD) Borrower Contact: Ministry of Finance, Commerce, Investment and Economic Planning Name: Moses Mabior Deu Title: Director of Aid Coordination Tel: +211955239239 Email: Implementing agency Prof. Udo Mathew Contact: Ministry of Agriculture, Forestry, Tourism, Animal Resources, Fisheries, Cooperatives and Rural Development Title: Undersecretary Tel: +211 956 335352 Email: paitemg@hotmail.com XII. For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-4500 Fax: (202) 522-1500 Web: http://www.worldbank.org/infoshop