PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB7211 Project Name Emergency Agriculture Support Project Region EUROPE AND CENTRAL ASIA Sector Crops (100%) Project ID P143202 Borrower(s) REPUBLIC OF MOLDOVA Implementing Agency Ministry of Agriculture Environment Category [ ] A [ ] B [X] C [ ] FI [ ] TBD (to be determined) Date PID Prepared December 14, 2012 Estimated Date of February 6, 2013 Appraisal Authorization Estimated Date of Board March 19, 2013 Approval 1. Key development issues and rationale for Bank involvement. The proposed credit would help finance the costs associated with the alleviation of the emergency situation caused by the 2012 drought in the country’s agriculture sector. The drought caused severe stress to the field crops sub-sector, i.e. wheat, sunflower, but particularly corn (60 percent losses in corn production), which led to scarcity of animal feed. If now emergency measures are taken and the animal feed scarcity persists it will put a significant stress on the livestock sub-sector, leading to destocking and loss of capital, with long term negative consequences. The proposed project would help to mitigate the risk of destocking by helping in the maintenance of the productive capability of affected farmers. To achieve the above objective, the project will provide area cash payments and technical assistance (extension services) to the farmers in those districts that have been affected the most by the 2012 drought, so as to maintain their ability to plant winter and spring crops, and wheat and. Corn is an especially important crop because pastures are scarce in Moldova, and corn is the main animal feed, both in the form of grain and green mass. Corn consumption is also important for human nutrition, as it plays an important role in the local rural diet 2. Proposed objective The Project Development Objective (PDO) is to mitigate the negative effects of the 2012 drought by helping restore corn and wheat production and prevent livestock destocking in the most affected districts 3. Preliminary description The project will support the Government strategy to address the emergency situation, reduce the risk of escalation, and facilitate recovery from the drought. The short term emergency objective of the proposed project complements longer term objectives of existing operations that are supporting adaptation to climate change in agriculture and disaster preparedness. The project would include the following three components: (i) Cash Transfers to Affected Farmers, (ii) Training and Awareness, and (iii) Project Management. Component 1: Cash Transfers to Affected Farmers. This component will have the following two objectives: (i) to compensate a share of the losses that farmers suffered during the 2012 season, and (ii) to provide an incentive for planting winter wheat and corn during the 2013 campaign so as to reduce the risk of animal destocking. To achieve these objectives, the component will distribute cash to targeted farmers. The targeting will be based on the following two criteria: (i) only farmers from the most affected districts will receive cash payments; and (ii) farmers in those districts will be compensated on the basis of the area they will actually plant in and according to the average losses of the district. Farmers will be reimbursed ex-post, i.e. after they already planted crops. Component 2: Training and Awareness. This component has two objectives: (i) to generate awareness about the cash transfer program so as to limit elite capture and allow for the mechanism to create sufficient incentives for affected farmers to plant during the 2013 campaign, and (i) to increase the application of improve animal feed practices. Component 3: Project Management. The component would support costs associated with project implementation, including operational and consulting costs for fiduciary, component coordination, monitoring and evaluation support to the Ministry of Agriculture and Food Industry and its Agency for Interventions and Payments in Agriculture. This component will also cover the costs associated with procurement support provided by an existing project management unit – the Consolidated Agriculture Project Management Unit. 4. Safeguard policies The project’s activities are not expected to have a significant environmental impact. The potential minor adverse environmental impacts associated with crops cultivations can be easily mitigated by complying with the best agricultural and environmental practices. Based on this, the project will not trigger any WB environmental safeguard policies and its environmental category is therefore C. The project will also not trigger any other social safeguards. 5. Financing Source: ($m.) BORROWER/RECIPIENT 0 International Development Association (IDA) 10.0 Total 10.0 6. Contact point Contact: Anatol Gobjila Title: Senior Operations Officer Tel: 5254+259 Fax: (3732)223-7053 Email: agobjila@worldbank.org Location: Chisinau, Moldova (IBRD) 7. Borrower/Client/Recipient Name: Ministry of Finance Tel: (373-22) 226-629 Email: anticamera@minfin.md Location: Chisinau, Cosmonautilor 7 Str, Moldova, MD2005 8. Implementing Agency Name: Ministry of Agriculture Contact: Viorel Gutu Title: Deputy Minister Tel: (373-22) 233-536 Location: Chisinau, Stefan cel Mare 162, Moldova, MD2012 9. 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