Natp Website

INDEX PAGE/FRONT PAGE : According to the Poverty Reduction Strategy of the Government of Bangladesh (2005), the principal goal of Bangladesh's economic policy is to reduce poverty so as to lift vast majority of the people above the poverty line and improve the quality of life for the average citizens. Although considerable progress has been achieved in the fight against poverty, yet about two fifths of the people of Bangladesh lived below poverty in 2005 (Household income and expenditure survey 2005, final report published in May 2007 p-58). Bangladesh has still long way to go if the millennium development goal of reducing poverty has to be achieved (bringing poverty down to 29% by 2015). This requires annual economic growth rate of 6 to 7 percent on a sustained basis and the bulk of the growth must come from the agriculture sector which is still the largest contributor to the GDP (agriculture and rural non farm sector taken together account for 56% of the GDP). Agriculture in Bangladesh is characterized by small farm and rice-dominated farming systems. The productivity of rice and other crops is low and there are large yield gaps between farmer's fields and research trials. The same is true for other agricultural commodities such as fisheries and livestock. Diversification of agricultural production systems to high value commodities is still slow with limited post-harvest value addition. Reaching technologies to the farmers requires technology generation and dissemination through the research and extension systems. Both research and extension in Bangladesh remain in the public sector. Private investment in research and extension is low. The NGOs, local government and community organizations are coming up but very slowly. Therefore, the public sector must continue to play a leading role in agricultural research and extension. This makes a strong case to strengthen the existing institutions in terms of human resources, reorientation, redirecting, rationalizing and networking both nationally and internationally. National Agricultural Research System (NARS) is responsible for generating agricultural related technologies and Department of Agriculture Extension (DAE), Department of Fisheries (DOF), and Department of Livestock Services (DLS) in the public sector are responsible for extension of generated technology to the farmers. Bangladesh Agricultural Research Council (BARC) is the apex body for NARS. There are 10 research institutes under the umbrella of NARS. These are Bangladesh Agricultural Research Institute (BARI), Bangladesh Rice Research Institute (BRRI), Bangladesh Jute Research Institute (BJRI), Bangladesh Sugarcane Research Institute (BSRI), Bangladesh Institute of Nuclear Agriculture (BINA), Soil Resource Development Institute (SRDI), Bangladesh Livestock Research Institute (BLRI), Bangladesh Fisheries Research Institute (BFRI), Bangladesh Forest Research Institute (BFRI) and Bangladesh Tea Research Institute (BTRI). The strength and weakness of BARC, NARS and Extension Departments have been assessed in the preparation Phase of the project. It has been recommended to improve accountability, objectivity and transparency in the technology generation

and dissemination, supply chain development and in the procurement and financial management. Involvement of private sector in technology dissemination and development of supply chain has been emphasized. On request of the Government of Bangladesh, the World Bank has agreed to support a long term development program over a period of 15 years in three phases, the fist phase beginning in July 2007. The IFAD, in the process of dialogue, has agreed to co-finance the program with World Bank. The World Bank has indicated to provide a loan of US$ 62.5 million for the first phase while the IFAD has indicated initial funding of US$ 19.45 million. The development partners indicated that the GOB should contribute US$ 2.6 million during the first phase (PAD as of August 5, 2007). The World Bank funding in the second and third phases will depend on the triggers set for the first and second phases respectively.

About NATP-DAE:

The NATP is a multi-agency project. The project comma four components: three main components – (a) Agricultural Research Support, (b) Agricultural Extension Support. (c) Supply Chains Development and (d) Project Management and Coordination. The scope of NATP covers research, extension and supply chain development in all sub-seams of agriculture – crops, fisheries and livestock. The implementing units and agencies involved in the NATP spread over two ministries are shown below. The lead ministry for the project will be MOA. Agency/Unit

Ministry

Component

PCU

MOA

Coordination, all

BARC

MOA

Research (SPGR), all

KGF DAE

Research (CGP), all MOA

Hortex

Crop Extension Development of Supply

DLS

MOFL

Livestock Extension

DOF

MOFL

Fisheries Extension

The Research component comprises three sub components: i) Competitive Grants Program (CGP) ii) Sponsored Public Goods Research (SPGR) and iii) Enhancement of Research Institutional Efficiency (ERIE). The CGP will be executed by Krishi Gobeshona Foundation (KGF). SPGR & ERIE will be executed by BARC. The lead organization for research components (ii) & (iii) will be BARC. The extension component covers field based decentralized extension services in the three sub sectors Agriculture. Fisheries and Livestock, and will be implemented in more or less 120 Upazilas all over Bangladesh by the DAE, DLS, DOF and in partnership with NGOs and farmer groups. The lead organization for extension component will be DAE. T h e S u p p l y C ha i n s D e v e l o p m e n t c o m p on e n t w i l l b e implemented through the Hortex Foundation in partnership with GOs, NGOs and private sector. For executing the activities of the project, the GOB will establish a Projec t Coordination Unit (PCU) and four executing agencies. BARC, DAE, DOF and DLS will establish Project Implementation Units (PIUs). Similarly, KGF and Hortex Foundation will execute the project activities under the overall supervision of the respective heads –

the Executive Director (ED) of KGF and the Managing Director (MD) of Hortex Foundation. The PCU will be responsible for overall coordination of the implementation of the activities of all components while the PIUs of BARC, DAE, DLS, DOF and the executing agencies KGF and Hortex will be responsible for implementation of the respective component activities. T h e P C U / P I U s m a y h i r e c o m p e t e n t c o n s u l t a n c y companies/firms to manage implementation of all major or (equipment/goods) procurements, consultancies, reviews, studies, execution of both local and international training programs and any other functions as per need. The PCU will hire one lead NGO in consent with PIUs of DAE/DLS/DOF. The lead NGO will hire local NGOs working in project Upazilas following PPR 2003. For selection of local NGOs, the opinion of UECCs for the applying NGOs will be taken in consideration. The selected local NGOs will assist UEFT members in CIG formation and capacity building of the CIGs including microplan preparation, advancement of credit, preparation of agri-business, agro processing etc. Lead NGOs will supervise the activities of local NGOs working under their umbrella in collaboration with DAE/DLS/DOF. PCU will make payment to NGOs after getting recommendation from component agencies- PIUs of DAE, DLS and DOF. Cheque may be handover through UECC. Overall supervision of the whole project, policy direction and guidance from the perspective of all stakeholders including farming community will be the responsibility of the Project Steering Committee (PSC) alternately chaired by the

Secretary, MOA and the Secretary of MOFL and represented by stakeholders from both public and private sectors. More specific coordination and guidance at the implementation level will be provided by the Project Management Committee (PMC) chaired by the Additional Secretary, MOA and co-chaired by Additional Secretary/Joint Secretary of MOFL. In the project management committee representatives of planning wings of MOA and MOFL will be included as members.

Responsibilities of various coordination committees, organizations and agencies: Organization/Committee

Responsibility

1. Project Oversight, Policy Direction Overall coordination, policy direction, oversight and guidance. Will Ministry of Agriculture ( M OA )

act as nodal ministry for the NATP as a whole 2. Project Coordination and Management PSC will be chaired alternately by the Secretary of MOA and the secretary of MOFL, and have representation of key stakeholders of the

Project Steering Committee ( P SC )

research and extension systems. Please see the organizational structure of the Project Management for PSC/PMC etc. (Figure 2, page 62). The committee will normally meet twice annually to oversee and provide guidance of project implementation and overall coordination. This arrangement is considered to work effectively for successful implementation of the project. It may be mentioned that MOA and MOFL have been working together at different levels/committees/programs e.g, farming system research and

Project Management Committee (PMC)

3.

The committee will be chaired by Additional Secretary of MOA and Co-chaired by Additional Secretary/ Joint Secretary of MOFL, other members of this committee include BARC Executive Chairman; DGs for DAE, DLS and DOF; heads of PIUs; Executive Director of KGF; and Managing Director of Hortex and Project Director, NATP. This committee would be responsible for guidance on project

Project Implementation MOA

Nodal ministry for the project

Project Coordination Unit (PCU)

PCU will be headed by the national Project Director (PD). The PD will have full freedom to make decisions related to the project as well as financial management decisions independently within the financial powers that have been delegated to the PD under the: Delegation of Financial Powers for Development Projects" issued by the GOB. The PD will sub-delegate financial power to the Directors of PIUs, Executive Director of KGF and Managing Director of Hortex Foundation.The unit will operate under the overall direction of the PSC. PCU will have the responsibility for coordination of NATP implementation by line extension departments (DAE, DOF, DLS), BARC, KGF, NGOs and grassroots organizations of the participating farming communities. Based on inputs from different implementing agencies, it will consolidate NATP annual budget and work plan and make recommendation through PMC then to be submitted for approval by the PSC. PCU will facilitate compliance with fiduciary requirements of the project related to financial management and procurement, overall

monitoring and evaluation of project activities and inputs from experts on any specialized subject matter to ensure timely implementation of the project.

BARC Project Implementation Unit (PIU)

krishi Gobeshona Foundation (KGF)

The unit will be headed by a Director who will be deputed from BARC. The Director will enjoy the power of Project Director of the Unit. It will also have a number of hired experts and staff for implementation of the project activities. It will be responsible for prioritization, review and approval of the sponsored public goods research (SPGR) proposals submitted by ARIs/Universities for implementation. It will arrange independent reviews of implementation progress of research GOB established an independent Krishi Gobeshona (KGF) having General Body (GnB) and Board of Directors (BOD). The function of KGF will be governed by the 'Articles of Association' KGF Board (BOD), will be responsible for

CGP and other activities of KGF. The KGF Board, as an independent body, will be the approval authority for all administrative and financial matters of KGF. GnB will develop a vision and strategy and KGF will manage the Competitive Grants Program (CGP) independently with objectivity and transparency. DAE, DLS, DOF The Director of respective PIU willbe deputed Project Implementation organization. The Directors will enjoy the power of Units (PIUs) of the respective Unit. Including Directors of PIUs, DAE will(six) depute 6 officers and 8 (eight) staff, DOF will depute 5 (five) officers, DOF will also recruit 120 officers and 5 (five) staff on contractual basis with consolidated pay as per government rule and 122 staff through outsourcing. DLS will recruit 7 (seven) specialists and staff under PA source through outsourcing. Each PIU will also have some hired full time experts and contractual support staff for implementation of project activities. It will facilitate timely Hortex Foundation The Managing Director (MD) will be responsible for implementation of supply chain development activities. There will be a number of full time consultants and contractual support staff to help him. The foundation will assist in the implementation of supply chain development component by promoting more equitable supply chain governance and market linkages for selected high value commodities in partnership with private sector, NGOs, CIGs/POs. It will organize training programs and knowledge sharing on issues related to supply chain development.

a)

Whether the Project Director will be

a

departmental officer or to be

recruited? b)

:

Departmental :Recruited

Whether the Project Director will be full

:Full time

time or part time

:Part time

c)

Attach proposed project management setup (As per Annexure- II) d) Attach log frame (As per Annexure - III) 11. Attach procurement plan (As per Annexure- IV(a), IV(b) and IV(c) 0.

Give year wise financial and physical target plan (As per Annexure-V)

Please see Annuxure -II : Please see Annexure - III Please see Annexure- IV(a), IV(b) And IV(c) Please see Annexure-V

13. After completion, whether the project needs to be transferred to the revenue budget

a)

If yes, briefly narrate the institutional arrangement and financial requirement for operation and maintenance.

The NATP as a whole is a 15-year program to receive continued IDA assistance during Phases 1, 2 and 3. In phases 2 & 3 fund will be provided depending on implementation experience of p h a s e s 1 & 2 respectively. After completion of the project the yearly recurrent expenses of DAE (Tk. 39 lakh), DOF (Tk. 144 lakh) and DLS (Tk. 37 lakh) will be met from normal revenue budget. Assets acquired during the implementation of the project will be the property of and maintained by respective implementing agencies as per Government rule.

b) If not, briefly narrate the institutional CGP of the research component and the arrangement and financial requirement for Supply Chains Development component operation and maintenance. will not be transferred to t h e r e v e n u e b u d g e t . K GF w i l l continue with its acquired assets to manage CGP independently with the income streams of endowment fund o f t a k a 3 5 , 0 0 0 l a k h p r o v i d e d separately by development partners. Once the income stream from the endowment fund is made available, the NATP phase-I support to KGF will cease. The supply chain activities piloted under the project will receive further support during phases 2 and 3 subject to success in phases 1 & 2 respectively. By this time the Hortex Foundation will become financially sustainable.

KEY COMPONENTS OF DAE (in details): Component 1: Agricultural Research Support Executing Agency: Bangladesh Agricultural Research Council (BARC) Agricultural Research Support component will aim to enhance the efficiency and effectiveness of the national agricultural research system through: (a) promotion of a pluralistic institutional st r uct ure b y e na bl i ng e ntr y of ne w p art ne r s t o s up p ort t he re sea rch syst e m; ( b ) ma ki ng agricultural research more participatory and demand-led; (c) developing technologies to promote sustainable intensification and diversification of agriculture and for post-harvest value addition; and (d) bridging the yield gap between what is possible and what is being currently achieved by farmers.

The component will have national coverage, and three subcomponents: (i) Sponsored Public Goods Research (SPGR), (ii) Enhancement of Research Institutional Efficiency (ERIE) of the NABS

in stitutes an d (iii) Co mpeti tive Gran ts Program (CG P) . SPG R an d E RIE will be implemented by BARC and CGP will be implemented by Krishi Gobeshona Foundation (KGF). 1.1. Sponsored Public Goods Research (SPGR)

(a) Management of SPGR i) Conceptual approach: In addition to short to medium term applied and adaptive research to be supported under CGP, some of the constraints faced by the agriculture sector can be addressed only through long term strategic and cross-cutting research. Public goods research on problems of marginal and landless farmers living in vulnerable areas (char lands, haor areas, hill areas, coastal areas, brackish/saline water areas), biodiversity, ecological problems traditionally receive much less attention. The project will fund selected long-term sponsored public goods research in such areas. To complement Government efforts, long-term sponsored public goods research in critical areas will also be necessary to avoid technology vacuum by generating a steady stream of usable technologies and intermediate research products for meeting the future needs. The SPGR will be supported within a sound policy framework, clearly defined long term strategy, expected outcomes that justify public expenditure, and availability of research results specially to small and marginal farmers. A small number of large multi-institutional and multi-disciplinary projects will be supported under SPGR program. The research themes to be funded will be those which are critical to enhancing productivity, food security, sustainability and diversification of production systems. The themes will be selected through a macro level priority setting process to be coordinated by BARC, taking into account the ongoing research programs of ARIs and Universities. The possible thematic areas include natural resource management, problem soils, soil erosion, salinity, environment, genetic improvement of important crops including horticultural crops, livestock and fisheries; biodiversity and conservation of germplasm; and farmer-managed farming systems research in ecologically vulnerable areas. SPGR will be used as an effective means of strengthening the partnerships of ARIs with the CGIAR Research Centres, and promote mentoring and capacity building of younger scientists. ii) Identification of research themes: BARC will prepare a list of problems by consulting the Vision 2020 and the Research Master Plans of ARIs. The list will be discussed in national workshops of senior scientists, policy makers and planners of different public institutions to identify the research themes. The following aspects may be considered in identifying the themes:

• Diversification of production • Enhancement of productivity •Ensuring food security (poverty) •Conservation of natural resources (ecology) •Benefits of small and marginal farmers (equity)

iii) Management of Sponsored Public Goods Research: The themes for SPGR will be determined by BARC and ARIs following a set of criteria. The program will be coordinated by PIU of BARC and implemented by ARIs and Universities. ARIs may submit SPGR proposals in partnership with the Universities, where appropriate expertise and facilities are available as well as in partnership with the CGLAR Research Centres on cofinancing arrangements. (b) Implementation of SPGR i) Procedures for Inviting and Processing Research Proposals: The

PIU of BARC or appointed firm will invite proposals on the identified themes from the Institutes and scientists. These proposals will be subjected to rigorous peer review process, based on sound criteria, and only those proposals which meet the prescribed criteria will be funded. The proposals for SPGR research will be funded only after they get approval of Executing Council of BARC. The PIU of BARC will coordinate and monitor implementation of the approved projects. Satisfactory completion of the annual program will be a pre-condition for the release of funds for the following year. The activities of SPGR involving invitation of research proposal, evaluation of proposal, monitoring of activities of funded project, procurement and maintenance of equipment and foreign training may be implemented by hiring expert firm for better implementation of the project as PIU of BARC will not have enough expert manpower to perform these activities. However, PIU under the guidance of BARC will supervise the activities of the hired consulting firm. 0) Operational Guidelines: Inviting SPGR research proposals could be done

in the same manner as CGP as described in 1.3 (a) (iv), page-30. For assessing project proposals, awarding contract to the wining institution, signing of MOU, disbursement of funds, monitoring and evaluation of the project and other project management activities, a separate set of forms have been developed and provided in the consultant's report and will be incorporated in the operation manual of NATP. i) Funding of Sponsored Public Goods Research: The project will provide

financial grants to support SPGR, which will cover investment and operating costs, including incremental operating costs, contractual staff, limited rehabilitation and renovation works, goods and need-based equipment, training and travel against proper justification for the proposed items of expenditure.

ii) Monitoring and Evaluation: The progress of implementation of the

approved research projects will be regularly monitored by the PIU of BARC against agreed milestones. The PIU of BARC may use the same monitoring form as proposed for monitoring of CGP projects with modifications, if needed. ii) National

Workshop/Seminar/Conference: Workshop, Seminar and Conference at National as well as Institute level will be implemented mainly on SPGR, rationalization of BARC and NABS Institute, master planning, priority setting of research programs, monitoring & evaluation, annual internal research program preparation and review, regional program planning at regional stations, etc.

0) International

Workshop/Seminar/Conference: Project related scientists/consultants/ planners may attend at international workshop/seminar/conference/ study visit to present research papers and gain knowledge.

1.2. Enhancement of Research Institutional Efficiency: i) Improvement of Governance: To improve governance, institutional responsibilities and management systems of NARS, the 1996 BARC Act will be amended and Acts of individual institutes under the Ministry of Agriculture (and possibly the Acts of institutes under the Ministry of Fisheries and Livestock) will be revised. The amended Act will also incorporate proposal for introduction of unif6iin service rules for the NARS scientists (ARIs and BARC). BARC and NARS institutes' organizational structure will be rationalized and its capacity strengthened for improved resource allocation, prioritization, coordination, human resource development, monitoring and evaluation of research, as well as for promoting adoption of participatory research planning and implementation processes. These changes will contribute to improved efficiency and effectiveness of the NARS. Concurrently, capacity of BARC and ARIs will be enhanced to manage fiduciary responsibilities related to procurement and financial management. The project will support development of master plan preparation and research priority setting capability in BARC and NARS institutes at macro level considering the potential contribution of improvement in the productivity and stability and sustainability of different production systems. ii)In country and International Ph. D: Candidates for Ph. D will be selected following NARS/GOB selection criteria from NARS and project

related organizations. The preference in selecting scholars will be given to agricultural, livestock and fisheries related subjects. Priority areas will be Breeding, Bio-Technology, Bio-Chemistry, Agricultural Chemistry, Agronomy, Soil Science, Horticulture, Agricultural Economics, Agricultural Statistics, Agricultural Engineering, Entomology, Pathology, Environmental Science, Agro-processing, Farming Systems, Livestock and Fisheries related subjects and any other subject as need may be felt. Total number of national and international Ph. D. slots will be more or less 60 and 30 respectively. Total grant to a student for local Ph. D. will not exceed Tk. 8 (eight) Lakh. A stipend @ Tk. 10,000 - 20,000 per month will be given to an in country Ph. D. student for up to 48 months. Tuition fees and research grant will be given to the universities. Research grant to a student will be Taka 2 (Two) Lakh. A student will also get Taka 50 (Fifty) thousand as thesis grant. The cost of International Ph. D. and the rate of stipend will be determined by BARC with the help of the consulting firm to be hired for implementation of training & higher studies abroad depending on the country of placement of student. However, cost will depend on the requirement of the respective University. 0)National Training: National training will be on foundation training, professional development, management improvement, executive training for senior level scientists and officers, ICT & MIS, Financial Management, Procurement, Administration Management, and any other fields for skill development of scientists and officers. The training may be implemented through outsourcing. iv)

International

Training/Post

Doctoral

fellowship/Study

visit.

Training, short course and post doctoral fellowship will be mainly on specialized field of research, skill development, ICT & MIS, database development and any other fields as need is felt. Study visit will be for knowledge gathering from foreign organizations for improvement of management of research administration planning and governance of GOB organizations.

Participants

will

be

selected

from

project

related

organizations. 1.3.

Competitive Grants Program

Executing Agency: Krishi Gobeshona Foundation (KGF) The CGP will fund location-specific, pre-identified, high priority, multidisciplinary, short to medium teiiii, problem-solving research and development. It will help to develop a more pluralistic research system

by opening the CGP to the NARS institutes, universities, other research institutes, NGOs, and through co-financing, to the private sector and the international institutes with excellence in agricultural research. The research themes to be supported will be those that are crucial to bridge the yield gaps, respond to the problems identified through micro level priorities and address other demand-based issues for improving productivity and farm income. Major focus will be on on-farm applied and adaptive research, including marketing, socio-economic aspects and value addition. (a) Management of CGP: (i) Establishment of KGF: GOB established an independent Krishi Gobeshona Foundation (KGF) having General Body (GnB) and Board of Directors (BOD). GB will develop a vision and strategy and also provide guidance to implement the mandate in order to achieve the objective of foundation. BOD be able to frame its own rules and procedures and to devise operating procedures for the Foundation. KGF will manage the Competitive Grants Program (CGP) independently with objectivity and transparency. KGF will invite research proposals from relevant organizations with capacity to undertake such work, including NARS institutes, universities, NGOs, and the private sector. By opening the CGP to non-traditional partners, a more competitive pluralistic institutional structure for the NARS will be facilitated. The priority research themes for competitive funding will be demand-led and identified through a participatory process involving farmers and other stakeholders. The independent Krishi Gobeshana Foundation (KGF) will manage and approve the CGP. The thematic areas for CGP research will be identified through a priority setting process to be coordinated by BARC, and will also include the short term researchable issues identified at the time of preparing the micro-extension plans for the participating unions and reflected in the Upazila extension plans. The CGP themes will be finalized in Joint Annual Workshops of BARC and KGF. Since this process may take some time, the themes for the first lot of CGP will be identified through a consultative process involving all stakeholders – public and private sector research providers, farmers, extensionists and policy makers; and subsequently prioritized for financing through a joint review by BARC and KGF. Cost items as indicated in the cost tables are adjustable among items and per need. As an independent foundation/agency, the KGF Board will be responsible and powered to approve any adjustments/ reallocations/ new items etc. of the budget for investment, operation, maintenance etc. for efficient and effective functioning of KGF. The KGF Board is the final authority for any decision for the successful operation of the CGP & the KGF.

ii) Funding of CGP: The NATP phase I project will finance the CGP and its

implementation initially until endowment fund of taka 350,00 lakh for KGF is established and ready for funding CGP. The project (NATP Phase-I) will finance costs of KGF secretariat, investment and operational costs, including incremental operating costs, contractual professional experts and staff (e.g. research associates), goods, including need-based small equipment, training, travel, support service, etc. 0) CGP program to be financed: The CGP will fund location-specific, pre-

identified, high priority, mlti-disciplinary, short to medium term, problemsolving research and development. It would help to develop a more pluralistic research system by opening the CGP to the NARS institutes, universities, other research institutes, NGOs, and through co-financing, to the private sector and the international institutes with excellence in agricultural research. The research themes to be supported would be those that are crucial to bridge the yield gaps, respond to the problems identified through micro level priorities and address other demand-based issues for improving agricultural productivity and farm income. Major focus would be on on-farm applied and adaptive research, including marketing, socio-economic aspects and value addition. 0)Processing of research proposals: For inviting and reviewing research

proposals under the CGP, there will be a two-stage competitive application process. First in response to a widely advertised "Call for Proposals", "Concept Notes" will be submitted by the potential Principal Investigators (PIs) through their research organizations. Second, after the Concept Note has been approved by the KGF following a peer review process as qualifying for the second stage of evaluation, the "Full Proposal" including detailed cost estimates will be submitted. The proposals in each sub-sector will be ranked based on objective and transparent selection criteria (outlined in the following section). Only those proposals will be finally approved for funding which meet the prescribed criteria. The implementation progress of the approved research projects will be regularly monitored against agreed milestones. The duration of CGP projects will normally be 23 years depending on the nature of the proposal. The activities of CGP involving invitation of research proposal, evaluation of proposal, monitoring of activities of funded project, procurement and maintenance of equipment may be outsourced for better implementation of the project as KGF does not have enough manpower to perform these activities. However, KGF will supervise the activities of the

hired consulting firm. KGF Board will be the final approval authority for all matters relating to KGF & CGP implementation and operation. v)

Selection criteria: The criteria for evaluation of research proposals will include: relevance and scientific quality of the proposal; expected impact on productivity, farm income, sustainability and equity; likelihood of completing the proposed activities and achieving the expected outputs and impacts; comparative advantage of the PI and host institute in undertaking the proposed research; and evidence of production system perspective, multi-disciplinary and interinstitutional approach. Additional weightage may be given to the joint proposals, which promote public-private partnerships, involve NGOs or research organizations outside the NARS, focus on research-extension-farmer linkages, and promote collaboration of biological sciences with social and economic sciences.

vi)Operational guidelines: Detailed guidelines for the operation and management of CGP, including proformas for the submission and review of concept note and full proposal, activity milestones, evaluation criteria, sanctioning of approved proposals, memorandum of understanding to be signed by the implementing agency and KGF, monitoring and evaluation during implementation, and submission of progress reports are given in Operational Manual of KGF. 0) Training: National training will be on proposal writing, peer review, monitoring & evaluation, and any other areas as project may demand. International short term visit/ study tour/ consultative meetings/ workshop/ seminar etc. will be for the contractual experts of the KGF. 0)Consultancy Service: Consultancy service will be for assisting identification of CGP research areas, evaluation of proposal, monitoring of activities of funded project, evaluation of research findings and any other areas as required by KGF. Component 2: Extension Support Executing Agencies:

Department of Agricultural Extension (DAE) Department of Fisheries (DOF) Department of Livestock Services (DLS)

The long-term objective will be to establish a decentralized demand-led and pluralistic extension service comprising crops, fisheries and livestock extension. The decentralized extension service will be knowledge-based

and accountable to farmers for planning and delivery of extension support. The proposed interventions will draw on lessons learnt from extension approaches previously pilot tested in Bangladesh and other countries in the region, especially the decentralized and participatory technology transfer mechanism and institutional innovations promoted under the National Agricultural Technology Project in India which was completed in 2005. The component will execute programs in three major areas or sub-components such as crops, fisheries and livestock. The activities will be implemented through DAE, DOF and DLS. Policy guidance and inter-agency coordination for the extension component would be facilitated by the National Extension Coordination Committee (NECC). It would maintain overall oversight on the extension program and facilitate inter-departmental coordination at the national level. The DAE, DOF and DLS nodal staff, responsible for facilitating implementation of their respective extension programs, would keep the NECC informed of the progress and liaise with the Project Coordination Unit on matters related to their program. At the district and Upazila levels interdepartmental coordination would be facilitated by the District Extension Coordination Committee (DECO) and Upazila Extension Coordination Committee (UECC) respectively. Membership of the three committees would include representatives from key stakeholders, e.g. line departments, research, marketing NGOs, credit agencies, the private sector and farmers.

2. 1. Decentralized of Extension Services

i)Activities to be finance under the component: The project would finance extension micro-plans, technology validation trials and demonstrations, NGO Services, consultancies, training, information and knowledge sharing, including publications, production of publicity materials for print and electronic media, office equipment and supplies and incremental operating costs. 0)Geographical coverage and selection criteria: The national coverage under the extension component would be reached in three phases, reaching about 25% of the districts/Upazillas under the current project (phase-1) and expanding to other districts/Upazillas during subsequent phases of the program based on implementation experience. Multiple criteria, covering socio-economic, biophysical and institutional considerations, would be

used to select districts, followed by selection of Upazillas. A list of 120 Upalilas tentatively selected for the phase-1 is provided at Appendix – A2. The criteria applied for tentatively selecting the phase-1 Upazilas include: (a) extent of poverty, (b) physical accessibility, (c) potentials of improving productivity, (d) likelihood of success and replication to surrounding areas (reflected by implementation capacity and availability of institutional support services, agreed by the concerned implementing agency), and (e) not duplicating and not conflicting with other projects of the MOA and MOFL in the region. According to the Household Income and Expenditure Survey 2005 (final report published in May 2007 p-58) poverty estimated by using cost of basic needs method was 40% for the whole country. Incidence of poverty varied widely across administrative divisions – Barisal division having highest incidence of poverty (52%), followed by Rajshahi and Khulna divisions, 51.2 and 45.7 percent respectively; against 32% in Dhaka, 33.8% in Sylhet and 34% in Chittagong. While Barisal and Rajshahi divisions deserve high priority by poverty criteria, Upazilas from Barisal division were not included to avoid overlapping and conflict with two other projects – the IDB funded South Central Smallholder Support Project and Danida funded Regional Fisheries and Livestock Development Project, both covering all Upazilas of Barisal division. A total of 22 Upazilas of the Rajshahi division will be covered during the first phase (proportionate allocation would require 32). This division is less represented because of having ADB funded Northwest Crop Diversification Project which extensively covers the whole division and the ADB and Danida funded Participatory Livestock Development Project which covers greater Rangpur, Dinajpur, Bogra and parts of greater Rajshahi and Pabna. From the other four divisions 25% or more Upazilas are included for phase-1. The NATP phase-1 does not aim extensive area coverage. It rather intends to initiate and introduce demand-driven, pluralistic and participatory extension services with research extension–farmer linkages. The phase-1 will cover less remote areas considering available institutional facilities while the subsequent phases will cover more remote areas. i) Extension Microplan Preparation (EMP): Responsibility for preparation, implementation and funding of demand-led extension microplans (covering crops, horticulture, livestock and fisheries) will be delegated to the Upazila level. The key elements of the decentralized system will include: (a) targeting, motivation, organization and capacity building of rural producers with the help of NGOs to form Common Interest Groups (CIGs) based on livelihoods or some other common interest, e.g.

credit, water use, to prepare and implement participatory extension micro-plans at the Union level reflecting the priority needs of the CIG members in crops/horticulture, livestock and fisheries sub-sectors; (b) aggregation of Union micro-plans to provide the Upazila extension plan, along with sub-sector (crops, livestock, fisheries) budget estimates, for review and approval by the Upazila Extension Coordination Committee (UECC); (c) funding for implementation of extension micro-plans will be provided by line departments through respective budgets, with the project bridging the funding gap; (d) technical support and training of CIGs by the Upazila and Union level extension teams (departmental staff, NGOs and farmer resource persons), who in turn will be trained and technically supported by the district level extension staff with the involvement of research scientists; and (e) the national level policy guidance, inter-agency/departmental coordination and monitoring and evaluation of the decentralized extension system by the National Extension Coordination Committee (NECC), supported by the District and Upazila level Extension Coordination Committees (DECC and UECC), with representation of all relevant stakeholders. iv) Participatory planning and funding of demand-led extension plans:

The first stage in the planning process would be the preparation of extension micro-plans at the Union level. The government staff based at the Upazilla and Union levels, NGO staff and representative(s) of producers would form the Union Extension Facilitation Team (UEFT). This team would work with CIGs for participatory identification of problems in to a micro-plan using habitation (para) as the planning unit. Microextension plans would reflect priority needs expressed by producers and take in to account the socio-economic circumstances of the participating producers. Each Upazilla extension plan would be reviewed and assessed for quality (technical feasibility and ability to implement) by the Upazilla and District level technical staff prior to presentation to the Upazilla Extension Coordination Committee (UECC) for approval. The District staff would also check the micro-extension plans for overlaps and recommend to UECC removal of those activities duplicating work already being financed by other development programs in the project Unions. At the district and Upazilla levels inter-departmental coordination would be facilitated by the District Extension Coordination Committee (DECC). Policy guidance and inter-agency coordination would be facilitated by the National Extension Coordination Committee (NECC). Common Interest Group (CIG): CIGs will be formed from the farmers in the project

areas. To provided day to day need-based extension services to the farmers SAAOs to visit CIGs and other groups on regular basis. In addition,

one-stop services will be provided to the farmers from Farmer's Information and Advice Centers (FIACs) established in the Union Perished Complex. One SAAO will remain present in the FIAC rotationally to provide necessary advisory services to the farmers. The FIACs will be composed of SAAOs and other field extension agents of DLS, DOF, and local NGO representatives. They will provide necessary assistance in CIGs formation. CIGs will consist more of small and marginal farmers (as high as 80%) of which minimum 30% will be female farmers. Five types of CIGs are identified: (1) crop farmers, (ii) livestock farmers, (iii) fish farmers/ fishers (iv) farmers interested only in high value crops, and (v) farmers producing special commodities under contract farming. There are will be more or less 18000 CIGs in 120 Upazilas of which 2400 will belong to DOF, 3600 will belong to DLS and the rest 12,000 will belong to DAE. In each Upazila there will be more o.- less 150 CIGs having 15 CIGs in each Union. The number of members of each CIG will be around 20.

v)Strengthening of Research-Extension-Farmer Linkages: Support will be provided for: (a) the early involvement of researchers in extension planning and work on demand-based on-farm technology validation; (b) demonstrations, field days, fair, horticulture nursery, workshops and farmer exchange visits including increased use of communications technologies for training and dissemination of extension related information; and (c) establishment of Farmer's Information and Advice Centers at the Union level to promote farmer-to-farmer exchange of information experiences, as well as interactions with public/private service providers. Research-Extension-Farmer linkage is maintain through National Agricultural Technology Coordination Committee (NATCC) at National level and Agricultural Technical Committee (ATC) at regional level. These committees will be strengthen through NATP project. 0)Farmer's Information and Advice Centers (FIACs): To facilitate two-way flow of information between farmers and other stakeholders (local government, extension, research, private sector, NGOs), the project would assist with demonstrations, exchange visits and workshops on key technologies. Establishment of Farmer's Information and Advice Centers ( F I A C s ) a t t h e U n i o n l e v e l w o u l d f a c i l i t a t e ' f a r m e r- t o farmer' exchange of knowledge/information and interactions with other public/private service providers. DOF and DLS do not have field staff below Upazila, the project will help identifying and training of 1200 Local Extension Agent for Fisheries (LEAF) and 1200 Community Extension Agents for Livestock (CEAL), who

will deliver simple extension service at the rural level. FIACs will be located at the UP complex or UP office. Fund for renovation, furniture, maintenance and repair of Union parishad offices for FIAC has been kept in the project. SAAO of DAE, LEAF of DOF and CEAL of DLS will have office at FIAC and they will stay at FIAC on rotation to make sure that the FIAC office is never unattended during office hours. FIAC will receive necessary inputs, equipment/supplies, training and extension materials needed for demonstrations on various technologies, technology validation trials, production and distribution from the UECC/ respective Upazila officer. 2.2. Enhancing Institutional Efficiency: i) Institutional Efficiency: To improve overall efficiency of the public extension service and to strengthen a decentralized pluralistic institutional structure of extension service providers, assistance will be provided to: (a) develop producer's organizations (POs) based on CIGs, especially at Union and Upazila levels, to empower members for greater participation in planning, implementation and monitoring of extension and to make the public service more responsive to their needs; (b) evaluate and revise current structure, functions and business procedures of different line departments Department of Agricultural Extension (DAE), Department of Fisheries (DOF) and Directorate of Livestock Services (DLS), including capacity to manage fiduciary responsibilities; (c) update MOA's National Agricultural Policy (NAP) and the New Agricultural Extension Policy (NEAP), updates national fisheries policy of DOF preparation of a new livestock extension policy consistent with GOB'S PRS, and preparation of a national extension implementation strategy to strengthen coordination and synergy between extension activities of different line departments (DAE, DOF and DLS) and in cooperation with the private sector service providers; and (d) strengthen training capacity and facilities for need-based human resource development (DAE, DOF, DLS staff and farmers) in strategic partnerships , with other organizations, e.g. agricultural universities, large NGOs. ii) Renovation of Training Centre: The Department of Agricultural Extension, has some institutional arrangements for staff and farmer training, but they lack full facilities in terms of space, audio-visual equipment, training materials, furniture, and office equipment, transport facilities and related support services. The project will provide support to meet the key requirements for development of research facilities at the training centres. DAE has ATIs at District level and Upazila training centres at Upazilas. The training centres have infrastructure facilities for classroom, laboratory and accommodation of trainees and staff. But they will need

support for renovation and training equipment. iii)Renovation of Laboratories: DAE has pesticide testing laboratories.

They need renovation Work, laboratory equipment, glassware, apparatus and chemicals. 2.3. Human resource development: In the context of changing needs of the agricultural sector and the farming communities, the project will support (a) need-based human resource development program for the extension staff of both the government and non-government service providers and of farmer groups. (b) Interdisciplinary and disciplinary technical support, including regular training of the Union level: earns and the Upazilla staff

i) National Training: National training will be capacity building

training on PRA tools, training n production technology (SA AO, A AEO), Technology training for Extension Officers (Upazila/Districts ) , Training on ICT skilled development, Training for ATI teaching staff, insen-ice training of SAAOs etc. DOF and DLS field staff will be trained on relevant issues.

ii) International Training/Study visit. International training will be- plant protection training for Wing laboratories and study visit will be for Extension officers for gathering knowledge for efficient management of extension work.

iii)

National Workshop/Seminar/Conference: National Workshop/Seminar/Conference will be progress of activities at Upazila levels. The workshop may be organized at National, District o r U p a z i l a level.

0) International

Workshop/Seminar/Conference: officers/planners may attend at workshop/seminar/conference.

Project related international

v) M. S. program : Candidates from extension agencies and project related persons may be given opportunity for in country M.S programs. Total grant to a student for local M.S. will not exceed Tk. 3.50 Lakh (Three lakh and fifty thousand). A stipend @ Tk. 8,000 – 10,000 per month will be given to an in country M.S. student for up to 24 months. Tuition fees and research grant will be given to the universities. Research grant to a

student will not exceed Taka 1 (One) Lakh. A student will also get Taka 25 (Twenty Five) thousand as thesis grant. The candidates will be selected by DGs of DAE, DOF and DLS in consultation with the Directors of PIUs.

v) Ph. D. program: Candidates from extension agencies and project

related persons may be given opportunity for in country Ph. D programs. Total grant to a student for local Ph.D. will not exceed Tk. 8 (eight) Lakh. A stipend @ Tk. 10,000 – 20,000 per month will be given to an in country Ph. D. student for up to 48 months. Tuition fees and research grant will be given to the universities. Research grant to a student will not exceed Taka 2 (Two) Lakh. A student will also get Taka 50 (Fifty) thousand as thesis grant. The candidates will be selected by DGs of DAE, DOF and DLS in consultation with the Directors of PIUs. Component 3: Development of Supply Chains Implementing Agency: Hortex Foundation To assist with development of supply chain of selected commodities (e.g. fruits, vegetables, flowers, poultry, dairy, meat, fish etc.) in selected Upazilas, where farmers are already engaged in production of such commodities for the local or export markets. Initial focus will be helping farmer groups with improved technologies in production and post-harvest value addition in horticulture crops. As in Component 2, CIGs and POs will be the focal point for decentralized participatory planning and implementation. 3.1. Farmer-Market Linkages: i)Selection criteria and geographic coverage: The selection of specific chains would be based on market demand, comparative advantage and farmer preference in a given location. ii)Activities to be financed under the component. The project will finance consultancies, NGO services, technology validation trials and demonstrations, publications, production of publicity materials for print and electronic media, office equipment and supplies and incremental operating costs. In early years, there will be a strong emphasis on bridging the 'know-how' gap in this field based on analysis of selected supply chain. Specific activities will include: 0)Strengthening Farmer-Market Linkages: To facilitate production of the type (variety) and the quality of commodities demanded by the market, the project will help producers to organize themselves into groups and diversify production by self-selecting market options and products they wish to invest in. This will help to vertically integrate small and marginal producers into supply chain covering key commodities of interest to the poor, including rice, maize, fruits, vegetables, livestock and fisheries. More specifically, the project will: (a) as in Component 2, organize producers into CIGs and POs with a focus on small and marginal farmers; (b)

where appropriate, promote contract farming by linking CIGs and POs with processors and/or marketing organizations for production of selected commodities, especially for the local market, building on experience gained from on-going contract farming activities in the country; and (c) disseminate 'best practices' for production, post-harvest technologies, management of supply chain and to promote quality improvement based on lowcost post-harvest management practices, including cleaning, grading, packing, storage and transport, and introduction of higher sanitary and phyto-sanitary standards (SPS) required by the national and/or export markets. Different options for extension support will be utilized. These could include the use of decentralized public extension service or contractual arrangements with other service providers, including NGOs or the private sector. Option for establishment of demand-based 'user support fund' will be considered to provide producer groups and their organizations investing in higher-risk activities to access services from suppliers of their choice. Sorting and collection house may be leased or Kacha structure may be developed on leased land for collection and sorting of collected commodities from farmers. 3.2.

Knowledge Management.

Support will be provided for: (a) capacity. buildinc, of trainers, and training programs aimed at capacity building of CIGs, POs agribusiness staff and public officials (research, extension, regulators) in commercial farming practices, including, issues related to agribusiness development, access to appropriate financial services and marketing support; (b) information sharing support to both the public and the private sector participants; and (c) development of effective linkages with the research system and support for validation trials, especially for work on local supply chain.

i)Capacity

Building

and

Knowledge

Management:

Assistance would be provided to enable collection and dissemination of information based on 'best practices' from national and international sources production, post-harvest management and value chain development of commodities selected support under the projects. S i nce bulk of production is sold as fresh produce; general practices (at pre-harvest, harvest curing, preparing for market, postharvest treatment, packing, storage, processing, transport and marketing at wholesale as well as retail) for handling of fruits, vegetable, cut flowers, fish and meat would be given special attention.

0)Information dissemination:

3.3.

Enhancing Institutional Efficiency:

The focus will be on strengthening of institutional arrangements

and

'know-how'

of

organizations

able

to

support

market-oriented

production systems, including: (a) support to CIGs and POs to play a central role in helping members to improve access to markets, both through orderly contract farming and direct marketing, and other services (inputs, credit, technical support); and (b) improvements in institutional and operational effectiveness of Hortex, the specialized agency established by MOA to promote post-harvest value addition and market linkages to accelerate growth of high supply chain of agricultural commodities; especially horticulture. i)Capacity building and training: Training will be provided on capacity building and training of producers, agri-business staff and public officials (research, extension, regulatory) in commercial farming practices, including post-harvest management practices, quality, including issues related to sanitary and phytosanitary standard (SPS) measures and their enforcement, environmental regulations and export procedures. 0)International Consultants: International Consultants will be hired for strengthen governance, organizational arrangements, functions and staff skills in order to rationalize Hortex Foundation's role and improve their effectiveness in promoting development of value chains. To facilitate linkages of small and marginal farmers with local rural markets, a study by them will examine governance, organization and functioning of the foundation. The project will also finance both National and International consultancies for determining selection criteria and geographic coverage, strengthening farmer market linkages, promotion of low cost post harvest management system, improvement of sanitary and phyto sanitary standards (SPS), Extension support using market based methodologies, information dissemination, development of ICT and MIS facilities & preparation of modules for supply chain development. i)Component 4: Project Coordination Unit (PCU): i)Implementation Arrangement. The Project Coordination Unit (PCU) will coordinate and facilitate implementation of NATP under the direction and supervision of the Project Steering Committee (PSC) and Project Management Committee. The Project Implementation Units in BARC, DAE, DOF, DLS, and implementing partners – KGF and Hortex will be responsible for ensuring implementation of project activities assigned to respective organizations. The PCU will be headed by the Project Director and will have 5 National Coordinators – one responsible for Agricultural Research, three responsible for Extension (crops, fisheries, livestock) and one for Supply Chain Development. It will also have two independent members of Procurement Core Team (PCT), and expertise in Administration,

Financial Management, Procurement, M&E, and Social/Environmental aspects to support and develop capacity of implementing agencies, as needed. In absence of the Project Director the assigned deputy will be the acting head. 0)Monitoring & Evaluation (M&E): Support would be provided for development, implementation and institutionalization of rigorous monitoring and evaluation mechanisms for project activities implemented by the ARIs and Extension Organizations. Overall responsibility of the project M&E and reporting will rest with the PCU. Day-to-day duties will be carried out by a M&E Specialist supported by a M&E Officer and administrative assistant in the PCU. Each implementing agency (BARC, KGF, ARIs, DAE, DOF, DLS and Hortex) will be required to provide M&E capacity and design its specific M&E plan to meet its own requirements as well as those of the project management. Close collaboration will be established between the M&E Specialist and the M&E Cells. The M&E Specialist and the M&E, Cells will be adequately staffed and resourced to carry out their M&E functions. The PCU and implementation agencies would be supported by international and national technical assistance in M&E, including impact assessment. 0)Impact Assessment: Participatory evaluation and independent impact assessment of project activities will be carried out each year starting after 2 nd year of the project. Impact assessment studies will be outsourced to independent agencies to continuously track the project impacts and to provide source material for annual stakeholder M&E workshops to be organized by the PCU in association with PIUs. M&E workshops will be held every year in strategically important locations to provide a platform for stakeholders, including the project beneficiaries, to participate in the evaluation of project activities. The findings of the participatory M&E workshops and of the impact assessment studies will be incorporated in the MIS/M&E system. 0) Impact Assessment Expert Team: A 5-member independent Expert Impact Assessment Team (EIAT) composed of well respected experienced specialists in agricultural economics, rural development and rural institutions, and one representative each of farmers' associations and the private sector, will meet once per year during years 2-5 to provide independent assessment of success and failure of project activities. It will report directly to the Project Steering Committee (PSC). The EIAT will (i) carry out joint field visits to project sites; (ii) review the findings of the independent evaluation and impact assessment studies, and annual stakeholder workshops; and (iii) prepare a brief summary report with recommendation to the PSC. The M&E Specialist will act as secretary to the EIAT.

v) Performance Audit : To supplement the annual project audit, an annual operational review will be carried out by external reviewers who will review the internal control, framework and procedures of project activities.

vi) Consultants & Consultancy Services for NATP Phase-II Preparation : NATP provides a flexible and long-term approach and will be implemented over a period of 15 years in three phases having components: Agricultural Research, Agricultural Extension and Supply Chain Development. Each phase is expected to last about five years. Phase-I of the program will focus on, research, extension, supply chain and institutional development. Agricultural research will have a national coverage whereas agricultural extension will cover more or less 120 Upazilas. The supply chain development activities will be done in some of these Upazilas. Phase-II of the program will continue with institutional strengthening with an increased focus on agricultural technology generation dissemination and adoption. In addition, phase 2 would address the need for fiduciary (financial management and procurement) and budgetary reforms for agricultural research and extension services. Agricultural research would remain national in scope whereas decentralized extension approach would be extended to new 35% of all the Upazilas. Consultants & Consultancy services will be hired for preparation of project description, project appraisal document and development project proposal for implementation of NATP phase-II. vii) Management Information System (MIS) and Information and Communication Technology (ICT): Information management is an essential instrument to enhance research efficiency. ICT application in agricultural research has been limited due to limited IT facilities and technical skills. It is necessary to establish electronic linkages amongst BARC, NARS institutes, research centers/stations and the related universities/organizations. It is essential to establish a collaborative National Agricultural Information System (NAIS) under the leadership of BARC as National Hub and agricultural information unit to be created in each NARS institute as nodal point of the network. The NARS institutes will be connected through Local Area Network (LAN) and Wide Area Network (WAN) to the central facility of BARC. Provision for both hardware and software support with technical assistance will be provided for the de velopment of infra-and inter-institutional connectivity through development of LAN and WAN with the help of ICT and MIS unit of BARC. Action will be taken for training on computer application in database management (MIS), technical report writing and web/ electronic publishing, multimedia production, inhouse publishing and library automation/digitization leading to establishing virtual library. Information Management Specialist will be hired. The operation and maintenance of LAN and WAN and purchase of equipment and .aft are for MIS and ICT may be outsourced. viii) Digital Display Center at BARC. A digital display center will be established at BARC to provi de the scientists, research managers and

policy makers of NARS organizations, and universities with the technological development home and abroad in the field of agriculture, livestock and fisheries.

The extension departments, NGOs and related organizations will also be benefited for extension work as the center will be equipped with developed technologies. The display center will closely work with Computer & GIS unit of BARC. The center will also act as a technological archive of Bangladesh. Fiduciary and other relevant issues 1. Consultants & Consultancy Services and Staff i)Project Personnel: The Director of respective PIU of BARC, DAE, DLS and DOF will be deputed from parent organization. Including Directors of PlUs, DAE will depute 6 (six) officers and 8 (eight) staff, DOF will depute 5 (five) officers, and DLS will depute 4 (four) officers and 4 (four) staff to the project. DOF will also recruit 120 officers and 5 (five) staff on contractual basis with consolidated pay as per government rule, and 122 staff through outsourcing. DLS will recruit 7 (seven) specialists and staff under PA source through outsourcing. The salary and other facilities of deputed and recruited officer will be borne from PA contribution. BARC will depute only Director of PIU, the salary and allowances of whom will be borne from BARC core budget. A meeting of the Manpower Assessment Committee for New Development Projects under the Ministry of Finance was held on 09 September 2007 and accepted the proposal of Manpower deputation of DAE, DOF and DLS, and recruitment of officers and staff of DOF (Appendix F).

0)Core Experts for full project period of PCU, PIUS, KGF and Hortex: The core Experts will be National Consultants {Annexure - IV(b)}. They will mainly be responsible for supervision of the implementation of project programs at implementing agencies. The Project Director of PCU will be deputed folio GOB agencies or may be recruited directly. The Experts will be hired for PCU., PIUs KGF and Supply Chain Development by relevant implementing agencies directly or through hired firm(s) following PPR 2003/WB guidelines. The remuneration o experts includes 60% basic pay and 40% allowances including house rent, conveyance, medical, festival bonus etc.

i)National Short Term Consultants: The project involves multifarious activities including research management in crops, livestock and fisheries: extension work, procurement, financial management etc. The research fields are also multi-disciplinary. The core manpower of the project will

not have expertise in all disciplines. Neither there is need for full time expertise in all fields throughout the full project period. Some expertise will need to be hired time to time for short period. For this purpose provision has been kept for short term consultants. The consultants will be hired for rationalization of BARC and NARS Institutes, updating of vision of 2020 of agricultural research, master planning, priority setting, monitoring & evaluation, impact assessment, database & software development, MIS & ICT and any other field as need is felt. The consultants may be hired through outsourcing. 0)International Consultants: In some cases International Consultants will be needed to help National Consultants for smooth running of the activities of special nature of the project. As such, provision has been kept to hire International Consultants. International Consultants will be hired for rationalization of BARC and NARS Institutes, HRD planning, master planning, priority setting, monitoring & evaluation, impact assessment of research etc. The International Consultants may be hired

through outsourcing. i) Consultancy Service: BARC with the assistance of hired consulting firms/ priority setting workshops and seminars will identify themes for SPGR and CGP. Proposal will be invited on the identified themes from the Institutes and Scientists. These proposals will be subjected to rigorous peer review process, based on sound criteria. The proposals which will meet the prescribed criteria will be funded. Consulting firms may also be hired for hiring Core Expert and Short Term Consultants, Human Resource Development (HRD) for placement of National & International scholars at Universities, and fund management and monitoring the progress of the scholars. Establishment of ICT & MIS facility, purchase and maintenance of equipment may also need to be outsourced. Impact assessment will also need hired consulting firm. ii) Core Contractual Staff for full project period of PCU, PIUs, KGF and Hortex: Limited number of support staff like accountants, data analyst, computer operator, driver etc. will be hired for the full project period on contractual basis. They will assist core experts. They may be hired by outsourcing. Requirement of KGF support service staff will be determined and hired by the KGF. The salary of contractual staff will includes 60% basic pay and 40% allowances i ncluding house rent, conveyance, medical, festival bonus etc. 2. Financial Management:

The accounting policies and procedures of the project will be governed by the existing Project Accounting Manual of the Ministry of Finance. All project related transactions i.e. all sources (IDA and IFAD fund) will

be accounted for separately in the PCU following double-entry bookkeeping principles and on a cash basis. The key project accounting functions for which PCU will be responsible are as follows: (i) budget preparation and monitoring; (ii) payments for eli g ible project expenditure to NGOs/third parties; (iii) disbursement of project funds to various a gencies as per approved work plan; (iv) maintenance of books and bank accounts; (v) cash flow management; (vi) financial reporting to GOB, the World Bank and other stakeholders; (%']) preparation of withdrawal application to claim funds from the World Bank; and (vii) assistance to external auditor and ensuring appropriate follow up of audit. Expenditure related to specific PIU and agencies will be managed by PIUs and respective agency, and their field offices down to Upazila. The respective agencies and PIUs will maintain such account and report to the PCU.

i) Special Account Fund:

project has provision for international higher studies, training, study visit, seminar, conference, international consultants etc. The fund for these purposes will be spent in foreign currency as well as local currency. The Special Account PA for both local & FE costs has been shown in cost tables. But foreign currency will also be required for procurement of equipment of SPGR through international competitive bid. It is not possible to determine the amount of foreign currency to be required for this purpose. The requirement of equipment will be determined as project proposal during the project period submitted by the NABS institutes, Universities, NGOs and individual scientists. It is not possible at present to determine how much foreign currency will be required for this purpose. As such all special account funds of the project have been shown as PA which will be spent as local cost/FE cost as required. The

ii) Funds Flow and Disbursement arrangements: •

For utilization of IDA and IFAD fund, PCU will open a dollar special deposit account DOSA or CONTASA. The Project Director and in his/her absence assigned deputy will be the authorized persons for issuing cheque or payment advises, making payment requests to MOF through MOA for replenishment requests to IDA. Project Director will subdelegate financial power to Directors of PIUs, Executive Director of KGF and Managing Director of Hortex Foundation.

•

GOB contribution for PCU, BARC, DAE, KGF and Hortex will be channeled

through MOA and that for DOF and DLS will be channeled through MOFL. GOB contribution may directly be channeled through implementing departments/agencies. •

A fund Flow chart is shown in Annexure: II, Figure-1.

•

PCU will be responsible for transferring IDA and IFAD funds to PIU of BARC, DAE, DOF. DLS, KGF and Hortex foundation on the basis of six months estimated expenditure and approved work plan. No fund will be given to these agencies unless SOE of the previous advance fund is provided to PCU. PIUs of DAE, DOF and DLS will disburse fund to Upazilas according to their need after submission of SOE.

•

PCU will disburse funds to NGOs directly on the basis of terms and conditions of contractual agreement between NGOs and the project. After getting recommendations from component agencies and PIUs of DAE, DLS and DOF. Cheque may be handover to UECC.

•

For payment relating to consultants hired by PCU and all other operating cost will be paid directly by the PCU on the basis of actual expenditure and approved contracts as certified by the concerned user agency.

•

For payment relating to consultants hired by PIUs, KGF and Hortex and all other operating cost will be paid directly by the respective agencies on the basis of actual expenditure and approved contracts as certified by the concerned user agency.

3.

Procurement:

Procurement will be handled by the PCU, the PIUs (BARC, DAE, DLS, DOF), KGF and Hortex Foundation for individual project components. The PIU of BARC will handle the procurement of SPGR and ERIE, KGF will handle the procurement of CGP, the PIUs of DAE, DLS and DOF will handle the procurement Agricultural Extension Support, Hortex Foundation will handle the procurement of Supply Chain Development and PCU will handle the procurement of Project Coordination Unit. All procurement will be done following PPR 2003/WB procurement guidelines as agreement with the World Bank. The PCU/PIU and the KGF, Hortex may engage competent consulting firm by outsourcing to manage all major procurement, consultancies, reviews, studies, execution of both local and international training programs and any other functions as per need. 0.Procurement Core Team (PCT): A PCT will be formed for the project and will be attached to and located at the PCU to oversee the procurement process under the project. The PCT will consist of at least five members of which at least two full time

external independent experts (technical and procurement) will be from outside the government or public sector entities. These two external independent experts will be responsible to PSC and are likely to be of known reputation from government and autonomous bodies, universities, academia, NGOs and the private sector. The PCT will be directly responsible for handling all procurement of the PCU while for the IAs it will provide procurement and technical guidance and oversee the procurement activities. 5.NGO

Support: The PCU will hire one lead NGO in consent with PIU of DAE/DLS/DOF. The lead NGO will hire local NGOs working in project Upazilas following PPR 2003 for selection of local NGOs. The opinion of UECCs for the applying NGOs will be taken in consideration. The selected local NGOs will assist UEFT members in CIG formation and capacity building of the CIGs including microplan preparation, advancement of credit, preparation of agri business, agro pr-,_ Ncessing etc. Lead NGOs will supervise the activities of local NGOs working under their umbrella in collaboration with DAE/DLS/DOF. PCU will make payment to NGOs after getting recommendation from component agencies and assigned by the PIUs of DAE, DLS and DOF. Cheque may be handover through UECC. 0.Vehicles:

Project Director, Directors of PIUs (BARC, DAE, DLS, DOF), Executive Director of KGF and Managing Director of Hortex will need frequent movement from place to place in and outside Dhaka to visit MOA, MOFL, WB, NARS institutes, Implementing Agencies, work sites etc. regularly. They will need full time Car/Jeep for official work. The list of vehicles for implementing agencies is given below:

Vehicle

PCU

Car

1

Jeep

1

BARC

KGF

DAE

HORTEX

DOF

DLS

1

Total 2

1

1

2

1

1

7

Microbus Motorcycle

1

2

3 124

12

120

124

380

Besides, movement from place to place outside the city is integral part of the work of the consultants of PCU and PIUs to visit NARS Institutes to coordinate project activities. For their movement provision for one jeep has been kept for PCU. For regular movement of official and consultants of PCU and KGF for official work provision has been kept for 1 microbus for PCU and 2 microbuses for KGF. The officers of PIU of DAE, DOF and DLS, and officers of departments need to visit Unions to coordinate activities of CIGs. The Departmental Officers need to visit Union. The provision of one Jeep at PIU and motorcycles at each Upazila has kept for these visits. All components will hire vehicles for experts, consultants and relevant for their visit to implementing agencies when necessary. Vehicles will also be hired for routine movement of the experts and staffs of the project until the vehicles of the project are procured. Vehicles of PCU and PIUs and other components (KGF, Hortex) will be owned by implementing agencies after phase wise completion of the project to sustain their activities as per Government rule. 7. Other Issues: TA/DA: Consultants/Experts/Members of teams and committees formed by project authorities dill get actual TA for their visit outside Dhaka. In addition, they will also get Tk. 1000/= as DA (Including Food and Lodging) for each over night stay. In special circumstance reasonable actual accommodation and actual other expenses will be reimbursed based on submitted documents. Deputed Govt. Officers will get TA-DA/Actual expenses as per government rules from project or agencies. Hortex and KGF will operate/device their own TA/DA procedures approved by their Board.

Training Allowance: Trainee farmers, trainers and resource persons will receive training allowance as per existing rates of GOB extension departments and budget approved by respective PIUs. Sitting allowance: Members of PSC, PMC, Tender Evaluation Committee (TEC), Proposal Evaluation Committee (PEC), Procurement Core Team (PCT), Expert member(s) for preparation and evaluation of technical specification, National Extension Coordination Committee (NECC) etc. will get Tk. 1000/= for each meeting. The members of Regional Extension Coordination Committee (RECC), District Extension Coordination Committee (DECO), Upazila Extension Coordination Committee (UECC) and similar committees will get taka 500/= as sitting allowance for each meeting. The amount of sitting allowance for KGF will be determined b y the BOD of KGF. The sitting allowance for Hortex Foundation will also determined by the BOD of Hortex Foundation. National Training/ Workshop/ Seminar/ Conference/ Meeting: National Workshop, Seminars and Training the budget should not exceed Tk. 750/= for each participants for Lunch, dinner morning and afternoon tea, and sitting allowance per day. Logistic support including bag, folder. writing pad, ball pen, eraser, marker etc. should not exceed Tk. 1000. Actual amount will be determined by PD for PCU, Directors for PIUs, ED for KGF and MD for Hortex. Resource person will get Taka 750/= (including handout cost) for each one hour lecture. International Workshop/Seminar/Conference/Study Visit: Fund will be provided to attend international workshop/seminar/conference/study visit for exchange and sharing of scientific knowledge and expertise with international scientists from PCU, PIUs, KGF and Hortex. The candidate should also be selected from project related organizations. Allowances will be given as per Government rules for Govt. officers. The PD of PCU, Directors of PIUs, Consultants and Specialists will get allowances at Joint Secretary level. Honorarium/ Remuneration: Annual Honorarium/ Remuneration may be

paid to PD PCU, Director PIUs (BARC, DAE, DLS, DOF), officers and staff of parent organizations of PCU, PIUs and other component staff as per government rules helping in supervising and executing project activities. Such officers and staff will be identified by the PD of PCU/ Directors of PIUs. Technical Evaluation: Remuneration will be provided to persons preparing and evaluating the technical specification of equipment and evaluating the research proposal and reviewing the achievement of the sub-projects of CGP and SPGR. The amount will be determined by the PD of PCU/ Directors

of PIUs and BOD of KGF. d. Environmental and Social Safeguards The NATP activities are not expected to involve any adverse social or environmental impacts. However, the project preparation study comprised a social and environmental assessment and suggested a set of environmental and social safeguards as noted below: Environmental Safeguards: The Environment Management Framework (EMF) includes a negative list of activities that will not be supported by the project. This includes (i) land acquisition; (ii) involuntary resettlement; (iii) activities within protected areas like reserve forest; (iv) use of pesticides prohibited under national legislation or internationals agreements to which Bangladesh is a party; and (v) any research involving Genetically Modified Organisms (GMOs) which have not been approved by an independent panel of internationally recognized experts, and cleared by the World Bank and GOB (DOE). Measures to strengthen environmental management in NATP are identified by components in the EMF. Social Safeguards: Given that the project's interventions are chiefly aimed at technology development and dissemination as well as establishing marketing chains, the impacts are expected to be mostly positive. None of the interventions require 'land acquisition'. Upazila to be covered in the first phase do not have Adibasi (tribal) population. In view of these, no social safeguard policy is triggered. However, in respect of Component 1 viz., Agricultural Research Support, as a proactive measure, and to ensure that project will indeed generate positive impacts, it is made mandatory for each prospective research proposal to comply with safeguard measures. A safeguard management note shall form an integral part of the overall proposal. This will receive due attention while assessing the proposals. Towards this and to serve as a guidance note, the project has developed a Safeguards Management Framework which essentially comprises: (i) national legislative framework; (ii) impact assessment matrix; and (iii) screening matrix. The legislative framework along with the Bank's Safeguard Policies provides an overall framework. Impact assessment matrix depicts the impacts likely to occur and the associated mitigation measures thereof. Screening matrix helps in evaluating the social and environmental aspects of a particular proposal. The details of economic and financial analyses is given in Appendix-H. e.Sustainability, critical risks and possible controversial aspects

Project sustainability depends on (i) continuous ownership of various initiatives by the GOB and other stakeholders; (ii) strong political support at various levels; and (iii) adequate flow of financial resources to carry out activities after the project closes. The sustainability of this project will be facilitated through (i) implementation of the 15-year long-term program i.e. through a series of Adaptable Program Loans (APLs); (ii) agreement with GOB to increase its budgetary contribution for financing research and decentralized agricultural extension program; (iii) Strengthening institutional capacity for various agencies dealing with agricultural research and extension; and (iv) deepening institutional reforms over time, with a particular focus on agricultural research and extension. 0.Rationale: The Poverty Reduction Strategy (PRS) of the Government of Bangladesh (2005) gives high priority to accelerating agricultural growth in order to increase rural incomes, reduce poverty and improve food security. The potential sources of future agricultural growth are expected to be increased productivity, diversification into high value agriculture (HVA) and post-harvest value addition. This poverty focused growth strategy requires substantial investment in agricultural research and extension systems. The National Agricultural Research System (NABS) alone deserves gradual increase of its share in ADP to 0.6% of agricultural GDP (which is the average for the developing countries as a group) while existing allocations are low at only about one third of it (0.22% of AGDP as of BBS 2006). The extension system is receiving considerable financial allocation mainly to maintain extension staff down to Upazila (in the case of DLS and DOF) and multi-village block level (in the case of DAE) but the services are not adequately reaching the fainiers. Almost the whole of the revenue budget allocation is spent to pay staff salary, leaving very little to carry on program activities. In both research and extension, program development and even operation and maintenance of existing facilities are largely dependent on time bound development projects. The research –extension – fainier linkage remains weak and the farmers are not adequately benefiting from the agricultural technology system although the National Agricultural Policy as well as other relevant policies emphasizes a demand-led extension service at the grassroots. Such development requires an efficient and transparent service delivery system, accountable not only to the line agencies, but also to the farming community. To address the above needs, the NATP uses a

different approach - reactivating the existing facilities, create sustainable funding mechanism, strengthening the institutions and empowering the farmers. PEC meeting was held on 02 September, 2007 on DPP of NATP phaseI. A number of observations were made. A checklist has been prepared on those observations and actions taken by BARC (Appendix-D). This recast DPP has been prepared as per decision of the ECNEC meeting held on 08 October, 2007. A check list of the decision & action taken on the ECNEC decision is given in Appendix-L. g. Linkages: The proposed project is in completely consistent with the objectives and targets of PRS as well as short term, midterm and long term planning of agriculture, fisheries and livestock development (Appendix-1) . The project's linkages to national priorities is shown below: Policy Matrix 4 as in the PRS (Crop agriculture) Strategy goals

Increasing productivity and profitability the crop sector

Targets as in PRS Likely contribution of the project linked to PRS

in

Accelerating production of highvalue crops

• Narrow yield gaps • Increase crop • Yield of major crops in 120 project Upazilas will increase by production 10% • Production and income of farmer will increase by 20% in 120

2.

•

• Support 200 farmer groups Increase improving market access and production of vegetables, fruits etc. technologies in production and postharvest on a pilot basis in 10 Upazilas • Assist capacity building of Hortex Foundation extending their support to farmer groups and widen contract growing system

3. Strengthening agricultural research

• Develop improved crop technologies for quick dissemination • Initiate biotechnology research for crops

• Support competitive grants programs implementing short term research activities based on farmers' needs and with participation of NGOs and private sector 9 Support public sector agricultural research institutes implementing larger duration research initiative in strategic areas including biotechnology under sponsored public goods research. • Assist institutional capacity building of the NABS through reforms, human resource development, linkages and sustainable fund flows.

4.

Strengthening agricultural extension service

• Give pro-poor focus on extension service • Cover all categories of farmers, landless and women in extension service

• Develop a decentralized, pluralistic (combining crops, fisheries and livestock) and participatory extension approach, transparent and accountable, not only to the line departments, but also to the farming communities. Support mobilizing 18000 fanners' common interest groups in 120 Upazilas covering about 1200 Union Parishads. • 60% of the CIGs will comprise exclusively of small and marginal farmers and 20% of women.

5. Mainstream women in agriculture

• Increase and improve women's participation • 20% of the 18,000 CIGs will be formed in exclusively of women farmers 9 agriculture Women CIGs will be preferred in home based agricultural activities like fruits and vegetables production,

post-harvest of crops, including highvalue crops, seed preservationand storage, backyard and small scale dairy and poultry, small scale pond fishery etc.

Policy Matrix 4 as in the PRS (Livestock and Fisheries sub sectors):

Strategy goals

Targets PRS

as

in

Likely contribution project linked to PRS

of

the

1. Increasing • Increase To increase productivity in productivity agriculture includl:.' production of of Livestock Sector fisheries and livestock sectors, Livestock the NATP products 2. Increasing decentralized, • Increase income develop a pluralistic (combini.i.Productivity of the crops, fisheries and in inland livestock)and participatonaquaculture Livestock and extension approach. 3. Increasing poultry productivity in capture fisheries farmers, fishers • The MOFL part of NATP will support mobilizing 6,000 farmers' and common interest groups in 12G fish farmers. covering about 1200 • Increase yield of Upazila Union Parishad directly pond reaching about 90,000 livestock fishery • Improve closed, and fishery farmers and fishers. semi • • 60% of the CIGs will closed comprise exclusively of small aquaculture and marginal farmers and and fish habitats 20% of women. • TheCIGs with the facilitation of extension departments and NGOs will prepare own micro- plans at the UP level and thus will be empowered

to demand services rather staying at the receiving end.

than

• The need based and ensured integrated extension service will help farmers better accessing service technology support of both GO and other sery providers and thus help increasing productivity. * Yield of major crops in 120 project UZ will increase by 10% • Production and income of crop, fisheries and livestock farmers will increase by 20% in 120 UZ. 4.Promoting Poultry Sector development 5.Promoting Milk and Meat production 6. Promote rice cum fish farming

• Raise poultry production • Increase milk production • Develop milk and meat processing facilities • Promote fish seed production, pen culture, cage culture

7.Strengthening Livestock research and Extension 8. Strengthen fisheries research and extension

•

•

Boost up production of • TheNATP will help livestock enhancing institutional products efficiency of BLRI, FRI, DLS and • Develo p new DOF through supporting reforms, breeds reorganization, human resource development and increased and Develop sustainable funding. improved animal • The DLS and DOF presently not husbandry practices and having field staff below Upazila level will identify and train and Veterinary equip local extension agents from services. • Accele the community who will provide simple extension messages to rate fisheri farmers and establish a linkage between farmers and extension es departments. production • Develop a decentralized, pluralistic (combining crops, fisheries and livestock) and participatory extension approach, transparent and accountable, not only to the line departments, but also to the farming communities. • Support mobilizing 18000 farmers' common interest groups in 120 Upazila covering about 1200 Union Parishad. • 60% of the CIGs will comprise exclusively of small and marginal farmers and 20% of women.

h. Targets (as per PAD revised in Aug 2007, Project Description and proposals of executing agencies):

Program Goal: •

Agriculture productivity (Yield of major corps in 120 selected Upazilas) increase by minimum 10% by the end of the project.

•

Household income of CIG farmers in the project Upazilas increase by 20% by the end of the project.

Purpose Level: •

Minimum 50 adaptable new agricultural technologies developed by the end of the project.

•

60% of 330,000 CIG farmers accept and use new technology.

•

Technology diffusion benefits at the ratio of 1 to 4 from the CIG farmers to other farmers in the project Upazilas by the end of the project.

Outputs/ Immediate Outcomes: •

Public investment in agricultural research increase from 0.22% of AGDP to 0.30% of agriculture GDP by the end of the project.

•

Public investment in agricultural extension increase from 1.1% of AGDP to 1.22% of AGDP.

•

Research proposals successfully implemented under CGP: 15 in yr 1, 50 in yr 2, 100-120 yr 3-5.

•

Research proposals successfully implemented under SPGR: 5 in yr 1, 10 per yr from yr 2.

•

CGP research projects implemented through non-NARS partners-3 to 20 per year yr 1-5.

•

New research proposals responding to technology needs of farmers: 20

in yr 2 gradually increase to 50 by yr 5.

i.

•

CGP fund allocated to non-NARS partners: 20% in yr 1, gradually increase to 30% yr 5.

•

Number of validation trials of developed technologies by extension departments: 50 in yr 2 gradually increase to 100 by yr 5.

•

Number of Upazila extension plans implemented -120 in120 Upazila by yr 5.

•

1200 Union Micro Plans will be prepared, approved and implemented in 5 years beginning with 350 in 1st year.

•

18,000 GIGs will be organized and supported on a continuous basis, in 5 years beginning with 5,250 in 1st year.

•

Number of farmers organized in CIGS-330,000 in cooperation with DLS and DOF by yr 5, beginning with 96,250 in yr 1.

•

20% of the CIGs are formed with women members, 60% with male SM farmer and maximum 20% with medium to large farmers.

•

Supply chains development assistance benefits 200 CIGS-3000 farmers in ten Upazilas.

•

Number of farmers adopting post harvest technology: 200 trained CIG farmers.

•

Farmer to retailer price gap reduced by 15% by year 5.

•

29,400 demonstrations held by DAE.

•

455 exposure visits organized by DAE will be arranged farmers/extension workers to exchange of views and ideas.

•

580 district and UZ fairs organized by DAE.

prepared,

approved

and

for

Project Preparation Study

The concept of this project has evolved over time during a consultation process initiated by the World Bank with the Ministry of Agriculture, the Ministry of Fisheries and Livestock, BARC and the relevant agricultural extension departments of the GOB. This consultation contributed to the

preparation of a World Bank document, called "Revitalizing the Agricultural Technology System in Bangladesh", December 2005. This has documented various constraints and potentials of the agriculture in Bangladesh along with recent experiences of its development involving World Bank assistance. The abovementioned study underlined the need for making appropriate production and postharvest technologies to farmers to raise agricultural productivity. It noted that the agricultural technology systems (research and extension) are unable to effectively generate, transfer and promote the use of such technologies to increase productivity of both food crops and high value agriculture, including horticulture, fisheries and livestock. The NATP project preparation phase engaged ten core Specialists and 13 other consultants to make a comprehensive analysis of the relevant issues, problems and suggest appropriate project interventions to be supported under the NATP. The project preparation study comprised inputs in agricultural research, extension, supply chains development, social assessment, environmental assessment, economic and financial analysis and procurement and financial management. Combining inputs from the individual consultants, the NATP preparatory work is contained in a comprehensive report called "Project Description". The project Description Report of the consultancy team suggested to take-up a five year project comprising agricultural research support, agricultural extension support (comprising extension in crops, livestock and fisheries) and development of supply chain. The extension component incorporated a decentralized extension model. Project Preparation Facilities (PPF): The World Bank provided Taka 314 lakh as advance for NATP preparation phase for preparing Project Description for NATP, DPP for NATP phase-1, Project Implementation Plan, Operation Manual etc. A TPP for a period of January 2006 through December 2007 was approved in February 2006 and revised in August 2006 and January 2007 to spend this money. It is estimated that Taka 280 lakh will be spent during the project period. The rest of the fund has been included in the DPP of NATP phase-I. 15. Whether any Pre-appraisal/pre-investment study was done before formulation of this Project? If so, attach summary of findings & recommendations in terms of NPV, BCR and IRR. The project preparation study included an economic and financial analysis which is incorporated in the Project Appraisal Document. The text of the Economic and Financial Analyses is provided in Appendix -H. Based on the study findings; the estimates of major parameters are quoted below:, a) Net Present Value (NPV) i.Financial US$ 190 million, Tk. 1,330.00 crore

ii.Economic: US$ 160 million, Tk. 1,121.20 crore b)

Benefit Cost Ratio (BCR) i.Financial: 1.9 ii.Economic: 1.6

C)

Internal Rate of Return (IRR) i.Financial: 44% ii.Economic: 37%

16. Whether project(s) of similar nature has/have been implemented earlier and/or under implementation? If so, mention name, date and major

findings of Evaluation. National Agricultural Technology Project (NATP) is new in Bangladesh due to its nature, dimension and involvement of multi-sectoral and multi-agencies under different Ministries. There is no project implemented earlier which is exactly similar to the proposed project. In some cases the proposed project is partially similar to the following projects: Experiences of the Agricultural Research Management Project (ARMP):

The main objective of the Agricultural Research Management Project (ARMP) (19962000) was to increase the efficiency of the national agricultural research system and thereby Generate profitable, relevant, and sustainable agricultural technologies. This was to be achieved through (a) strengthening the capacities of the National Agricultural Research System (NABS); (b) supporting priority research; and (c) strengthening research linkages to extension through participatory farming systems research. The ARMP and earlier projects in agricultural research and extension systems helped building up of major physical infrastructure. But the system now requires institutional strengthening. The ARMP achieved modest success in institutional development but the objective of improving efficiency through reforms was not fully achieved. Sustainability remained an issue. The present project reemphasizes them and has changed approach from project funding to longer term program funding. 17. Basis of total and item-wise cost estimate

The detailed and item wise detailed and item wise cost estimates are based

on the project preparation study report prepared by a group of national consultants in partnership with the involved executing agencies, mainly, the BARC, DAE, DLS and DOF. The costs are based on 2007 local prices. A provision is made for 4% physical contingencies and 5% price contingencies over the next five years. The detailed costs were also examined by a team of experts of the World Bank who provided Component wise indication of their funding possibility. The present cost tables takes into Consideration of their indications. Some adjustments were however made on the basis of suggestions coming from the executing agencies. 18.

Unit cost of major items of the proposed and similar other projects Name of the project, date of

completion and Unit Cost (In lakh Taka) A comparison of cost of NATP with the recently completed projects is given below: Activities

Project

Farmer Group Formation

Northwest diversification project

Completi Cost in Taka on Year Past/On NATP going 2007 Projects Crop

2006

Fanners Training

Northwest Crop 2006 diversification project Allowances for Frozen Semen and 2007 CEAL Embryo culture water Allowances for Fresh Shrimp 2006 LEAF culture Contract Research Agricultural 2001 Ph. D Research Agricultural (International), ARMP Ph. D (Local), ARMP Research Agricultural

2001 2001

15,000

10,000

300

350

500

600

500 10,00,00 0 45,00,00 0 5,00,000

600 20,00,00 0 60,00,00 0 8,00,000

Research

19.

Attach detailed annual phasing of cost.

:

Please see Annexure-VI

(As per annexure-VI) : Not Applicable Specification/ Design of major components. (attach, if possible) 0. Justify whether the most The cost has been Estimated based of the needs identified cost effective method by the project preparation team of the NATP in consultation with has been selected in case of the main institutions in projects whose agricultural research and b en e fi ts are diffi c ul t to extension systems (BARC & quantify ARIs, DAE, DLS, DOF and Hortex Foundation) and further examined by the world bank appraisal team presenting their findings in the PAD (Feb 1. Briefly describe the 2007) and Aide Memoire (28 effect/impact on March 2007). The unit costs are i) Environment like land, based on market price as of water, air, bio-diversity 2007 with allowance for yearly 5% etc. price contingencies and 4% physical contingencies. 20.

The environmental assessment report of the NATP project preparation team indicated that the project shall have no adverse environmental impact. Because, the project does not involve any new construction of any sort, building, dam, water control structure etc. The investment will be maid mainly in research and that too focusing need based adaptive research. No investment will be made in sensitive areas like GMO and nuclear agriculture. The extension component will help farmers' common interest group learning and applying improved agricultural technologies. The project will help both research and extension agencies improving institutional ef f i ci e n cy t hrou g h

h u ma n re s o urc e d e ve l o p m e nt , improving facilities and enhancing allocation of operating expenses more sustainability. The supply chain development will help farmer groups acquiring and applying appropriate production and postharvest technologies in selected high-value crops.

The project will have positive environmental impact th ro u g h pa r ti c i p a to r y p l an n i n g and exe c u ti o n of extension activities in agricultural extension. The priorities of agricultural research are expected to be redirected making it need based and closely linked to extension services and farming communities. The p ro j e c t w i l l use an e n v i ro n m e n t a l management frame work to avoid an y adverse effec ts and take proactive mitigating measures.

ii)

Women and children

The project will benefit mainly small and marginal farmers who will be using improved technologies and participate in the project activities through farmers' common interest groups. Women and children will b e n e f i t a s a w h o l e f ro m increased income and employment through

improvemen t in agriculture. Moreover, the project has kept a provision of organizing minimum 20% of the farmer groups with farm women who will mostly participate in homestead agriculture like fruits and vegetables, poultry, duck, cattle fattening, cow rearing, pond fisheries and grading and packing of produces for marketing. 0) Employment, etc.

poverty

alleviation, There will be immense positive

impact on poverty. It is expected that, as the outcome properly executing the project, poverty will decrease in the 120 project Upazilas by 5% and farmers' income and employment will increase by 20 percent and crop production will increase by 10%. It is expected that 60% of the 330,000 trained farmers belonging to the CIGs will successfully apply improved technology packages and will experience 50% increased yield. Their success will encourage secondary adopters to the extent of four times of successful primary adopters. Thus about 990,000 farmers will use improved technology from the end of third year. Improved

farming will demand increased labor input which will come from both family labor and employing seasonal hired labor. The combined effect will be 20% employment increase and 5% reduction of poverty.

iv) Institutional, productivity

The project will support enhancing efficiency of the BARC, th e Agricultural Research Institutes, the

Extension Departments — the DAE, DLS and DOF th rough reforms, h uman resource development. i m p ro v e d l ab o r a to r y an d o th e r f a c i li ti e s wh e re necessary, facilitating ICT development and networking, both nationally and internationally. The project will support establishment of an independent Krish i Gobeshona Foundation to manage competitive grants program in agricultural research and the ARIs taking up sponsored public goods research of a bit larger size and duration. In the extension side, the project will help firmly setting of a decentralized extension approach in which farmers will be the main actors rather than staying on the receiving end. The farmers groups will plan execute extension micro plans in which the extension agencies and partner NGOs will facilitate decision making than imposing decisions.

Yes, the project will involve private sector, NGOs and local government implementing various components. The research component will work in partnership with an independent Krishi Gobeshona Foundation, who will implement Competitive Grants Programs carrying out short term and need based adaptive research. The extension component will work in partnership with selected local NGOs who will help organizing farmers' groups, facilitate them micro plans at 23. Whether private sector/local the Union level and train the govt. or NGO's participation building up institutional capacity was considered? Describe how while the extension departments will provide technology support will they be involved? in crops, fisheries and livestock. Union and Upazila level extension service delivery, using a decentralized approach will work in cooperation with Union and Upazila Parishad — UP member and chairperson involved in the preparation and implementation of micro plans and the Upazila Parishad informed of the Upazila Extension Plans ensuring their support to plan and implement them effectively and efficiently.

24. In case of aided project mention the major conditionality.

a. BARC Act amendment approved by the cabinet 0. Project implementation arrangements are operational including establishment of PCU and PIUs (for BARC, DAE, DLS and DOF). a. Krishi Gobeshona Foundation is operational. including registration, setting up of office and selection of Executive Director (only TOR cleared by the World Bank) and approved by the KGF Board. b. Draft Project Implementation Plan is prepared c. Draft Operations Manuals for Agricultural Research Support (CGP and, SPGR) and Agricultural Extension Support are prepared d. GOB contributes to project cost at least in Tk. equivalent to US$ 2.6 million (CDVAT, local staff, etc.).

25. Does the project involve The project does not involve rehabilitation/resettlement? If acquisition of land. Therefore no so, indicate the magnitude and rehabilitation and resettlement cost. plans are needed. 26. Any other important details, technical or otherwise (e.g. sustainability, governance etc.)