THIRD NATIONAL FADAMA DEVELOPMENT PROJECT (FADAMA III ADDITIONAL FINANCING)

1. THIRD NATIONAL FADAMA DEVELOPMENT PROJECT (FADAMA III ADDITIONAL FINANCING) PRESENTATION ON SMALL SCALE COMMUNITY OWNED INFRASTRUCTURE AND ASSETS AT THE PROJECT STAFF RETREAT/ORIENTATION WORKSHOP JULY, 2014

2. OUTLINE • Background • Objective • Categories of intervention • Implementation strategy • List of eligible activities for funding

3. BACKGROUND • The component is to provide limited infrastructure development support in the core and within 50Km radius of SCPZs. • Infrastructure support in the core zones are to serve contiguous clusters of farmer groups as common user facility while those to be sited within the 50km radius are to serve individual farmer groups based on demand driven approach. • The component will finance the intervention in three subcomponents; • Rehabilitation of surface water and limited construction of new small-scale irrigation schemes. • Groundwater irrigation schemes. • Other infrastructure support.

4. OBJECTIVE The objective of Component under the Additional Financing is to provide and support the construction and rehabilitation of surface and ground water irrigation facilities, farm land clearing and development, on farm storage facilities, market infrastructure, access roads linking farm to markets/processing centre and hydraulic structures to enhance production capacity of farmers of rice, cassava, sorghum and horticultural crops within and outside the Staple Crop Processing Zones in a sustainable manner. To ensure sustainability, the objectives are delivered through a transparent and participatory screening and evaluation processes. The key elements of the screening process will be the production potentials of producer groups and the availability of maintenance resources to ensure the operational performance of the infrastructure facility provided.

5. CATEGORIES OF INTERVENTION The component is focusing on four areas ofinterventions as follows: • Irrigation Development • Access roads • Storage/Processing facilities • Mechanization

6. IMPLEMENTATION STRATEGY Irrigation Development:- Under this category, it is expected that water management and irrigation technology would be applied to increase the production circles of the priority crops. Strategy • Determine the crop water requirement and the irrigation need of each crop in all intervention areas. • Develop a cost effective design suitable to the area. • Identify a suitable water source for the system considering the environmental safeguards. • Develop a framework for sustainability maintenance plan and allowing the User Association in charge. • Collaborating with other stakeholders and the North East irrigation Project of the World Bank.

7. IMPLEMENTATION STRATEGY Access road:- This category of intervention is to provide access linking production areas with the Processing Plants, Markets and Major roads. Strategy • Identify the production potentials and quantity of farm produce of the area. • Develop a cost effective geometric design of the road and considering the environmental safeguards measures in the area. • Develop a framework for sustainability maintenance plan and allow the User Association to be in charge. • Collaborating with other stakeholders particularly RAMP Project.

8. IMPLEMENTATION STRATEGY Storage/Processing Facilities:- This category of intervention is to provide aggregation centres to ease evacuation of farm produce by off –takers and to provide small/medium scale processing machines to reduce post harvest losses. Strategy • Determine the expected quantity of farm produce in the intervention areas. • Liaise with the FMARD for synergy and collaboration on the provision of aggregation centres within the intervention areas. • To leverage on the window under component 5 to support women and youth farmers with small/medium scale processing machines through a matching grant facility same as the existing one under the parent project. (70 -30).

9. IMPLEMENTATION STRATEGY Mechanization support:- This category of intervention is to promote agricultural mechanization through the use of farm machinery and implements for the production of crops for both upstream and downstream activities. The mechanization schemes will be supported only in the identified catchment areas of the SCPZs as pilots for scaling up. Strategy • Develop cost benefit analysis • key into the Agricultural Equipment Hiring Enterprise (AEHE) program of the ATA through a matching grant. • The construction of the Agricultural machinery center will be funded through the state counterpart contribution which can be in kind should the state choose to use an existing infrastructure a depot for the equipment /tractor. • The beneficiary apex association will pay counterpart contribution equal to 35% of the real cost of the machinery while the project will provide the matching grant equal to 65% of the purchased asset /tractor. • Beneficiary will acquire the skill need to operate and maintain the asset purchased under this component and will be provided under component 1 and 3.In order to ensure sustainability of this agricultural machinery service operation, service charge/user fee (which will be sufficient to pay for the management of the tractor/equipment, service hiring unit, repay back the loan and interest and replacement for the equipment will be deposited in an operating account of the hiring unit to be manage by the Apex farmer association.

10. LIST OF ELIGIBLE ACTIVITIES FOR FUNDING • Land clearing and development. • Construction/rehabilitation of earth/lined canals. • Construction/rehabilitation of dykes and weirs. • Construction/rehabilitation of small earth dams and ponds. • Drilling of tube wells and wash bores. • Construction/rehabilitation of feeder and internal farm roads. • Provision of on-farm storage facilities

11. LIST OF ELIGIBLE ACTIVITIES FOR FUNDING contd...... • Construction of specialized markets • Construction/rehabilitation of high pressure pump houses. • Construction/rehabilitation of tractor hiring centres. • Construction of water harvesting structures. • Provision of high/low pressure pumps. • Technical investigations, surveys and designs. • Provision of tractors and implements

12. THANK YOU