Annex_-_3_-_FTF_IEE_101112.pdf

USAID/Mali AEG Feed the Future IEE—Cover Sheet 13 August 2012 | Page 1/68

PROGRAM/ACTIVITY DATA:

Program/Activity Name: Accelerated Economic Growth (AEG) Portfolio

Country/Region: Mali/West Africa

Functional Objective: Economic Growth

Program Areas: 4.5 Agriculture

4.6 Private Sector Competitiveness

4.8 Environment

Program Elements: 4.5.1 Agriculture Enabling Environment

4.5.2 Agriculture Sector Capacity

4.6.1 Business Enabling Environment

4.8.1 Natural Resources and Biodiversity

4.8.2 Clean Productive Environment

Funding Begin: 2011 Funding End: 2015

IEE Expiration Date: 2017

LOP Amount: 200 Millions

IEE Prepared By: GEMS Project Staff from The Cadmus Group, Inc.:

Jim Jolley, Mark Stoughton and Patrick Hall

Current Date: 6 August 2012

IEE Amendment (Y/N): NO If "Yes," Number & date of original IEE:

ENVIRONMENTAL ACTION RECOMMENDED: (Place X where applicable) Categorical Exclusion: X Negative Determination: X Positive Determination: Deferral:

ADDITIONAL ELEMENTS: (Place X where applicable)

CONDITIONS X PVO/NGO:

SUMMARY OF FINDINGS:

Scope and background. This IEE addresses proposed activities of the USAID/Mali Accelerated Economic Growth (AEG) Office. The IEE evaluates proposed activities included in the Feed the Future (FtF) strategy, approved in April of 2011, and designed to guide the implementation of agriculture and nutrition interventions between 2011 and 2015. The FtF strategy uses a value chain approach to increase economic opportunities and focuses development interventions on three core value chains: sorghum/millet, rice and livestock. These three value chains are key to Mali’s development and overall food security as the majority of the population relies directly upon these staple foods for their livelihood and food security.

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Intervention Categories. For the purpose of environmental review, current and anticipated activities in the AEG portfolio are grouped into the following intervention categories:

1. Construction, Rehabilitation, and/or Operation of Infrastructure;

2. Government Capacity Support and Development in the Areas of Agriculture, and

Agribusiness;

3. Agricultural Productivity and Agribusiness Sector Competitiveness and Financing;

4. Productivity and Competitiveness of Vegetable Production;

5. Productivity and Competitiveness of Cereals Value Chain (Rice, Millet and Sorghum);

6. Productivity and Competitiveness of Livestock Value Chain (Cattle, Small Ruminates, Fisheries);

7. Public-Private Partnership Activities in Feed the Future Targeted Provinces; and,

8. Small Grants activities.

Each category contains a number of activities; recommended determinations are advanced for each activity.

Recommended Determinations

The following table summarizes the recommended determinations associated with the AEG portfolio intervention categories listed above (note that there are no separate recommended determinations associated with Category 8). For each, a link is provided to the activity descriptions, analysis of potential environmental impacts, and activity-by-activity determinations and conditions within the body of the IEE.

Intervention Category Categorical

Exclusion(s) Negative

Determination(s) Positive

Determination(s) Link to full analysis

Construction, Rehabilitation, and/or Operation of Infrastructure

(w/ conditions)

Click here

Government Capacity Support and Development in the Areas of Agriculture, and Agribusiness

Click here

Agricultural Productivity and Agribusiness Sector Competitiveness and Financing

(w/ conditions)

Click here

Productivity and Competitiveness of Vegetable Production.

Productivity and Competitiveness of Cereals Value Chain (Rice, Millet and Sorghum)

Productivity and Competitiveness of Livestock Value Chain (Cattle, Small Ruminants, and Fisheries)

Public-Private Partnership Activities In Feed The Future Targeted Provinces (APS Private Sector Innovation Fund)

Note that Negative Determinations are recommended pursuant to 22 CFR 216.3(a)(2)(iii).

General Restrictions (reproduced verbatim from section 4.1 of the IEE)

1. GMOs/LMOs: For purposes of compliance with USAID procedures, Genetically Modified Organisms (GMOs) or Living Modified Organisms (LMOs) are defined as “living organisms modified by genetic engineering techniques” and include, e.g., plants, microorganisms, live animal vaccines (if used outside a contained area and not approved in the US), animals, and insects.

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This IEE does not authorize support for laboratory- or field-based research involving GMOs/LMOs, nor does it authorize support for multiplication, confined field testing, open release or commercialization of GMOs/LMOs. Support for laboratory research involving GMOs/LMOs in contained facilities would require an approved amendment to this IEE.

Support for field testing or open release of GMOs/LMOs would require successful review under USAID’s Biosafety Procedures followed by an approved IEE amendment. Malian national requirements must be met in either case.

See the ENCAP Biosafety Procedures Factsheet for more information:

www.encapafrica.org/meo_resources/Biosafety_5Feb2010.pdf.

2. PESTICIDES. All activities that fall outside of the category of controlled experimentation exclusively for the purpose of research and field evaluation and entail the procurement or use, or both, of pesticides shall conform with the 2009 Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP), conducted in accordance with USAID Pesticide Procedures (22 CFR 216.3(b)). No funds shall be obligated or expended for the procurement or use of pesticides unless they are specifically approved in the 2009 Pesticide Evaluation Report and Safer Use Action Plan.

General Project Implementation and Monitoring Requirements (reproduced verbatim from Section 4.2 of the IEE)

In addition to the specific conditions enumerated in Section 3 of the IEE, the negative determinations recommended are contingent on full implementation of the following general monitoring and implementation requirements:

1. Consideration of Project-level IEEs. This AEG portfolio IEE was developed, as required by USAID project design guidance, during the pre-PAD analysis stage in the project design cycle. As such, it was developed with only relatively general information available regarding proposed activities.

Therefore, for each major AEG procurement, the AEG team, in consultation with the MEO and REA, must consider whether the goal of environmentally sound design and management and clarity and transparency regarding IP and AEG team compliance requirements would be best served by development of a project-level IEE based on far more specific activity descriptions. Such project-level IEEs would supersede this portfolio IEE for a particular procurement, but would be guided by and establish conditions no less stringent than those set out by this IEE. Such IEEs must incorporate all of the remaining conditions set out in this section.

2. IP Briefings on Environmental Compliance Responsibilities. The AEG team shall provide each Implementing Partner (hereinafter IP), with a copy of this IEE; Each IP shall be briefed on their environmental compliance responsibilities by their cognizant C/AOR. During this briefing, the IEE conditions applicable to the IP’s activities will be identified.

3. Development of EMMP. Each IP whose activities are subject to one or more conditions set out in Section 3 of this IEE shall develop and provide for C/AOR review and approval an Environmental Mitigation and Monitoring Plan (EMMP) documenting how their project will implement and verify all IEE conditions that apply to their activities.

These EMMPs shall identify how the IP shall assure that IEE conditions that apply to activities supported under subcontracts and sub-grant are implemented. (In the case of large sub-grants or subcontracts, the IP may elect to require the sub-grantee/subcontractor to develop their own EMMP.)

(Note: refer to the AFR EMMP Factsheet, available at www.encapafrica.org.)

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4. Integration and implementation of EMMP. Each IP shall integrate their EMMP into their project work plan and budgets, implement the EMMP, and report on its implementation as an element of regular project performance reporting.

IPs shall assure that sub-contractors and sub-grantees integrate implementation of IEE conditions, where applicable, into their own project work plans and budgets and report on their implementation as an element of sub-contract or grant performance reporting.

5. Integration of compliance responsibilities in prime and sub-contracts and grant agreements.

a. The AEG team shall assure that contracts or agreements for implementation of the project, and/or significant modification to current contracts/agreements shall reference and require compliance with the conditions set out in this IEE, as required by ADS 204.3.4.a.6 and ADS 303.3.6.3.e.

b. IPs shall assure that sub-contracts and sub-grant agreements reference and require compliance with relevant elements of these conditions.

6. Assurance of sub-grantee and sub-contractor capacity and compliance. IPs shall assure that sub-grantees and subcontractors have the capability to implement the relevant requirements of this IEE. The IP shall, as and if appropriate, provide training to sub-grantees and subcontractors in their environmental compliance responsibilities and in environmentally sound design and management (ESDM) of their activities.

7. AEG Team monitoring responsibility. As required by ADS 204.5.4, the AEG team will actively monitor and evaluate whether the conditions of this IEE are being implemented effectively and whether there are new or unforeseen consequences arising during implementation that were not identified and reviewed in this IEE. If new or unforeseen consequences arise during implementation, the team will suspend the activity and initiate appropriate, further review in accordance with 22 CFR 216. USAID Monitoring shall include regular site visits.

8. New or modified activities. As part of its initial Work Plan, and all Annual Work Plans thereafter, IPs, in collaboration with their C/AOR, shall review all planned and on-going activities to determine if they are within the scope of this IEE.

If any IP activities are planned that would be outside the scope of this IEE, an amendment to this IEE addressing these activities shall be prepared for USAID review and approval. No such new activities shall be undertaken prior to formal approval of this amendment.

Any ongoing activities found to be outside the scope of the approved Regulation 216 environmental documentation shall be halted until an amendment to the documentation is submitted and written approval is received from USAID. This includes activities that were previously within the scope of the IEE, but were substantively modified in such a way that they move outside the scope.

9. Compliance with Host Country Requirements. Nothing in this IEE substitutes for or supersedes IP, sub-grantee and subcontractor responsibility for compliance with all applicable host country laws and regulations. The IP, sub-grantees and subcontractor must comply with host country environmental regulations unless otherwise directed in writing by USAID.

However, in case of conflict between host country and USAID regulations, the latter shall govern.

10. Government-to-government (G2G) assistance. In keeping with USAID Forward and a core principle of Feed the Future (FtF), for which USAID/Mali is a focus country, investment in country-led plans is an important value, which may include consideration of sector program

USAID/Mali AEG Feed the Future IEE—Cover Sheet 13 August 2012 | Page 5/68 assistance (SPA) or other government-to-government assistance. USAID/Mali will need to obtain Authorization for Use of Partner Country Systems (AUPCS)—a new requirement for G2G assistance specified in ADS 220 Use of Reliable Partner Country Systems for Direct Management and Implementation of Assistance. This will include certification of the effectiveness of Mali’s environmental assessment procedures, policy and legislative framework. This should be harmonized with the expectations of other sector donors (World Bank, EU, etc.), in line with the Paris Declaration of Aid Effectiveness.

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APPROVAL OF ENVIRONMENTAL ACTION RECOMMENDED FOR:

USAID/MALI ACCELERATED ECONOMIC GROWTH (AEG) PORTFOLIO

CLEARANCE:

Mission Director: Date:

Rebecca Black

CONCURRENCE:

AFR Bureau Environmental Officer: Date:

Brian Hirsch

Approved:

Disapproved

FILE Nº: ____ ________________________________

ADDITIONAL CLEARANCES:

Mission Environmental Officer: Date:

Aminata Diarra

AEG Team Leader: Date:

Mary Norris

Regional Environmental Advisor: Date:

USAID/West Africa Robert F. Buzzard

Supervisory Program Officer: _________________________________ Date:

Erin Holleran

Distribution List:

USAID/Mali AEG A/COR and Activity Managers USAID/Mali AEG Team Leader USAID/Mali Office of Acquisitions and Assistance USAID/Mali Program Office USAID/WA Supervisory Regional Acquisitions & Assistance Office Chief, Accra

USAID/Mali AEG Feed the Future IEE 13 August 2012 | Page 7/68

INITIAL ENVIRONMENTAL EXAMINATION

Activity Title: Accelerated Economic Growth (AEG) Portfolio

Country/Region: Mali/West Africa

Functional Objective: 4. Economic Growth

Program Areas: 4.5 Agriculture

4.6 Private Sector Competitiveness

4.8 Environment

Program Elements: 4.5.1 Agriculture Enabling Environment

4.5.2 Agriculture Sector Capacity

4.6.1 Business Enabling Environment

4.8.1 Natural Resources and Biodiversity

4.8.2 Clean Productive Environment

IEE Date: 6 August 2012

1.0 Background and Program Description

1.1 PURPOSE AND SCOPE OF IEE

This IEE addresses proposed activities of the USAID/Mali Accelerated Economic Growth (AEG) Office. The IEE evaluates proposed activities included in the Feed the Future (FtF) strategy, approved in April of 2011, and designed to guide the implementation of agriculture and nutrition interventions between 2011 and 2015. The FtF strategy uses a value chain approach to increase economic opportunities and focuses development interventions on three core value chains: sorghum/millet, rice and livestock. These three value chains are key to Mali’s development and overall food security as the majority of the population relies directly upon these staple foods for their livelihood and food security.

1.2 AEG OFFICE & PROGRAM BACKGROUND

The Accelerated Economic Growth (AEG) team seeks to achieve inclusive agriculture sector growth in targeted areas by improved agriculture productivity, expanded markets and trade and increased resilience of vulnerable households. This objective and targeted interventions are guided by USAID/Mali's two AEG-specific Presidential Initiatives: Feed the Future and Global Climate Change. Fully staffed, the AEG team consists of six U.S. direct hires and ten locally employed staff.

1.3 DESCRIPTION OF PROGRAMS AND INDICATIVE ACTIVITIES

The FtF regional focus includes 143 communes concentrated within three of Mali’s eight regions and includes Timbuktu, Mopti and Sikasso, along with two communities in Segou that encompass the focus of the MCC Alatona Irrigation Project (AIP). The FtF communities were selected on the basis of agricultural potential, poverty and the nutritional status of the population as indicated by stunting and wasting indices. Due to both the agricultural potential and the tremendous need, it is expected that FtF interventions will have the greatest impact within these regions. Approximately 3.15 million people live within the FtF intervention zone, and an estimated 300,000 people will be directly affected by the FtF initiative, while approximately 1.3 million will indirectly benefit.

At present the security situation and political instability have limited access to Timbuktu and the northern portion of Mopti, while the remainder of FtF regions remains open. Therefore, the mission is

USAID/Mali AEG Feed the Future IEE 13 August 2012 | Page 8/68 considering revising the FtF interventions zones to replace communes within rebel- controlled areas, but has not yet made a final determination. Alternative communes will be selected on the basis of agricultural potential and the nutritional status of the population. Currently under consideration is an expansion of communes within Mopti and Sikasso and/or extension into the Koulikoro region, which also has high potential for sorghum, millet and rice. Criteria for selecting new sites might include: (a) that they complement, rather than distract from the program's objectives; (b) that they not be logistically onerous; and (c) that the participants from the site have already been involved in similar activities (i.e., those communities that have already bought into the concept). It is assumed that any alteration in the intervention zones will not result in a significant change in the size of the target population directly or indirectly affected by the program, nor in the anticipated results outlined in this document with respect to production, income or the relative need to focus on resiliency, for example.

However, these assumptions should be revisited through the planning, procurement and implementation process.

Another important assumption is that humanitarian aid will continue to sustain the critical assistance needs of the country, thereby allowing FtF interventions to focus on the long-term development.

Under the threat of a continuing or deepening humanitarian crisis it is critical that humanitarian aid continue to support the most vulnerable population. The success of the FtF program will depend upon the degree to which USAID is able to support the engagement of the population in the value chain development process. This engagement will depend upon the ability of the population to take risks in the hopes of higher rewards. While the Cereal Value Chain (CVC) project assumes some degree of resilience building in its design, the absence or reduction of humanitarian aid for the most vulnerable could increase the general insecurity of the population, leading to a reduced propensity to engage in the markets, which could negatively impact the effectiveness of the CVC interventions.

1.3.1 Cereal Value Chain Program (CVC)

The Cereal Value Chain (CVC) project is a $120 million program that will promote the integrated and inclusive development of the FtF core value chains, to include production, research, extension services, marketing, processing, trade, finance, capacity building, and policy reform, as well as strengthening the relationships among these value chain actors, support services and the local and international enabling environment necessary for long-term competitiveness.

The CVC project will contribute to achieve the goals and objectives of the Mali FtF strategy by contributing primarily to food access, in terms of increased income and ability to purchase food;

secondarily, to increased availability, in terms of main season production and off-season or integrated production of diverse healthy foods; and finally to enhance household utilization, which includes behavior change at the household level that applies nutritional education, both knowledge and practice, to consuming increased quantities of high-quality healthy foods.

The goal of the CVC project is inclusive and equitable agricultural sector growth through increased value chain integration and competitiveness leading to broad-based economic growth. The purpose of the project is to increase incomes, by both increasing direct income to men and women farmers, as well as through various value-add income generating activities carried out by core value chain actors (including: input suppliers, farmers, traders, processors, wholesale buyers, and exporters), as well as support services that strengthen the value chain including agriculture technology providers and private financial service providers. Finally, the project seeks to identify and address key constraints with respect to the local and international enabling environment, to allow for systemic and long-term transformation of the agricultural sector, led by the cereals value chains. The five key outputs to be achieved during the project include: 1) increased agricultural productivity in the cereals value chain;

2) expanded markets and trade of core value chain products; 3) increased resiliency of vulnerable communities and households; 4) strengthened local capacities and systems; and (5) improved policy and enabling environment.

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The CVC project will apply a facilitative market systems approach to transforming targeted agricultural value chains to generate sustainable broad-based economic growth that enhances long-term food security in the target areas. By targeting cereal value chains, CVC will address shared constraints across the rice, sorghum and millet value chains, while addressing essential support services that may be lacking in selected geographic areas and market systems. Thus, USAID/Mali will catalyze growth and upgrading of the agricultural sector as a whole and maximize value retained (and accompanying income) for the rural poor. The resulting increased access to (via income/ability to purchase) and availability of food in local, regional and national markets (further complementing household production-consumption patterns) will contribute significantly to achieving improved food security in the country.

Output 1: Increased agricultural productivity in rice, sorghum and millet in irrigated and dry land systems

The fundamental premises of the project are that (a) there is a large gap between the current and potential rice, millet and sorghum yields that can be closed by broader extension of cost-effective production technologies, practices, and systems; and (b) farmers’ investments in these technologies, practices, and systems will be driven by incentives provided by market opportunities, and that building the capacity of key actors along the value chain, particularly agro-entrepreneurs and farmers, is critical to accelerating development within a market-driven value chain context. Also critical is the project’s explicit consideration of gender and youth in the CVC and its emphasis on strengthening market linkages. Producer groups’ and water-user associations’ production capacity development will focus on ways of increasing both quantity and quality of production through adoption of improved production systems that promote the use of high-quality readily available inputs (e.g., seeds, fertilizers) in tandem with improved irrigation and soil/water management techniques, such as ridge tilling and soil organic matter amendments. Adoption will be spurred by provision of targeted quality extension and advisory services, by increasing producer group access to inputs and credit, and by improvements in group management and governance.

The CVC will incorporate activities that enhance technology development and adoption, increase access to quality inputs, expand economically viable irrigation systems, and improve soil and water management techniques.

Output 2: Expanded Markets and Trade

Increasing market opportunities for rice and millet/sorghum will drive the productivity gains of Output 1. Rural households can further capitalize on productivity gains through reduction of post-harvest losses, value addition, and increased access to domestic and regional markets, with equal opportunities and benefits for men and women farmers. In both value chains, the expansion of markets through facilitating the growth of strategic commercial relationships will be key. The key outcomes of Output 2 are: 1) to create and strengthen the necessary links in the rice and millet/sorghum value chains to enable farmers (and off-farm labor, traders, agro-enterprises, etc.) to take advantage of opportunities for income growth and employment; and (2) to enable agribusinesses to increase marketable volumes and expand as providers of vital production and marketing support services.

Output 3: Increased Resiliency of Vulnerable Communities and Households

The CVC project will improve the ability of communities and households to develop production systems and business-based producer groups that make the community less vulnerable to climatic variability, to help it “bounce back” or recover after a shock or stress and adapt to change. This includes reducing the severity of the adverse effects and improving the capacity to manage shocks. It also includes increasing the capacity of rural populations to produce and consume nutritious food, even in years of erratic rainfall. The CVC Project will pay particular attention to addressing child malnutrition.

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Output 4: Cross-Cutting—Strengthened Local Capacities and Systems

Strengthening capacity is an important cross-cutting output that will facilitate the achievement of CVC’s other outputs. In addition, the enhancement of local capacities and systems as they relate to the cereals value chains is an essential contributor to the potential for project benefits—including but not limited to income and agriculture sector competitiveness—to continue well beyond the scope of FtF funding. To this end, the capacity of strategically targeted local organizations and institutions will be the focus of CVC efforts, with an eye towards immediate results in strengthened value chains, as well as enabling long-term service delivery and sector growth. The targeted organizations and institutions include:

(1) producer groups whose technical and business capacities will be improved;

(2) financial institutions whose capacity to deliver financial services will be strengthened;

(3) extension and advisory service providers whose capacity to deliver technical and business services will be developed or strengthened; and,

(4) private trade and business associations as well as universities and policy think tanks whose capacity to identify and advocate for the removal of policy, legal, and regulatory barriers to private sector investments will be increased.

Across these categories, the CVC project will also work to develop the capacity of local organizations and entities to receive USAID funding directly. These organizational and institutional investments will be underpinned by building local capacity to support continued learning which will connect and further strengthen the entire value chain and the various actors within it, and their ability to remain competitive long term.

Output 5: Policy Reform—Created Favorable Enabling Environment

The rice and the millet/sorghum value chains, as well as the livestock value chain (outlined below) are affected by similar policy issues and constraints. The resolution of these issues will require the engagement of key farmer and private sector groups with the Government of Mali (GOM) in order to enable a more robust growth environment for trade and market development. For example, the GOM’s subsidy program for agricultural inputs inhibits the expansion of private input suppliers and, thus, limits the availability of key inputs and their potential contributions to productivity gains. The unpredictability of Mali’s cereals import policies and periodic export bans create uncertainties among farmers and traders and hinders the opportunities for expanding exports in a region experiencing growing demand for cereals. A more facilitative policy environment will promote greater commercialization of the value chains through increased private-sector investments and vertical market integration. Market integration will reduce transaction costs through more formalized trader -farmer contracts, and the expanded use of a system of standardized grain quality will emerge. The promotion and inclusion of key farmer organizations and industry groups in determining policy direction and strengthening the capacities of Malian researchers for analyzing sector policies to better inform policy dialogue and decision making will be fundamental for supporting value chain growth.

The CVC project will support agricultural sector policy research and advocacy to improve, remove and/or reduce priority policies, regulations, procedures and laws which are most closely linked to achieving food security. The approach to policy reforms will be to apply evidence-based analysis for reform. The key partners for the policy component of the CVC project are; (1) civil society groups (e.g., think tanks, agriculture universities); (2) private sector groups (e.g., farmers unions, industry groups, agro-processors, business and trade associations, chambers of commerce); and (3) media groups (e.g., print, TV, radio).

The CVC project encompasses a series of existing and planned activities that will phase in and out over the life of the program. At present, direct involvement with GOM institutions is not permitted and a number of current activities remain suspended until such time as appropriate approvals have

USAID/Mali AEG Feed the Future IEE 13 August 2012 | Page 11/68 been obtained. It is anticipated that USAID/Mali will be able to resume collaboration with GOM institutions when the political situation permits.

The brief program descriptions below outline the objectives and activities associated with each program.

1. Cereals Value Chain ‘Core’ Award:

The Cereals Value Chain core award, a $6,000,000/year activity, will reflect the integrated technical approach outlined above by combining a number of the interventions and inputs under a single, dynamic and multi-part mechanism. It is envisioned to achieve results crossing all five outputs outlined above, but with a greater emphasis on Outputs 1, 2, 3 and 4, complementing and necessarily and substantively collaborating with the research, policy, and other mechanisms listed below.

Importantly the scope of this award will include interventions all along the rice, millet and sorghum value chains, as well as strengthening the support services that enable growth for both. As such, it would incorporate the facilitative approach, identifying and implementing specific interventions to fill key gaps along the value chain and strengthen the relationships among the actors in the market system, while allowing flexibility in the scope for the emerging needs, opportunities and unanticipated events (positive and negative) that will occur over the activity’s lifecycle.

Interventions will vary in the degree of direct provision, but as much as possible will strive for an indirect, facilitated approach that focuses on developing local systems and capacities in the sector, rather than filling key product and service gaps directly. The activity will focus on those interventions with the highest potential return, prioritizing private sector-led upgrading and investment, market-based solutions and income generation for target beneficiaries. This mechanism will also assume the responsibility for building the capacity of local entities with respect to grant and contract management systems, such that by the end of Year 3 there are multiple organizations certified by the USAID-developed Organizational Capacity Assessment Tools (OCAT) to accept direct awards from USAID.

Illustrative interventions that would fall under this activity include:

Market development: Direct and/or indirect assistance in local and regional market research, new product research and development, promotion to wholesalers and exporters and buyer education for new sorghum-based products);

Relationship strengthening: The CVC project requires a strong focus on building the relationships among actors, including addressing issues of market information flow, trust, and bargaining power, while also (as indirectly as possible) building the capacity of individual enterprises, organizations and institutions;

Strengthening of agro-enterprises: To ensure market access for rural smallholder farmers, as well as long-term competitiveness for the sector, it will be essential to build the business capacities and incentive private sector investment for wholesalers, processors, traders and other market intermediaries;

Access to inputs, agricultural technologies, and know-how: To complete research-based activities, the CVC Core Award will facilitate market-based solutions, enterprise development and business development services to commercialize and/or ensure otherwise sustainable access to input products such as fertilizer and seed, as well as the pluralistic agricultural extension services system described above;

Access to finance: To complement the DCA, the CVC Core Value Chain Award will include technical assistance and agriculture sector-focused development activities to extend demand-driven financial services (including secured payments, planned savings schemes, letters of credit, micro-insurance, micro-savings and micro-finance) to rural smallholders, as well as micro-, small-, and medium-size enterprises along the rice, millet and sorghum value chains.

The finance technical assistance component will work with lending institutions and borrowers to connect the two groups and build the capacities of both so that they together can more

USAID/Mali AEG Feed the Future IEE 13 August 2012 | Page 12/68 accurately understand and mitigate risks inherent in the agricultural sector. It also supports growing the market for agricultural loans by working with financial institutions to improve their marketing strategies and campaigns. The finance technical assistance component will help ensure optimal use of the DCA guarantee and help ensure that banks continue to provide credit to the sector after the DCA guarantee expires. The intended result is a material increase in loans and other financial services to the agricultural sector by targeted institutions.

Policy and business enabling environment: This activity will work closely with the policy activity, outlined below, in order to be constantly identifying opportunities and subsequent impacts related to policy (and enforcement) that affect the cereals value chains, while the policy activity will more actively address these issues.

2. Integrated Initiative for Economic Growth in Mali (IICEM):

The ongoing Integrated Initiative for Economic Growth in Mali (IICEM) is an integrated value chain project that started in January 2010 and initially planned to end in December 2012. IICEM is part of AEG transitional mechanisms to implement the Feed the Future (FtF) initiative before the development of new instruments. To that end, the current project will be extended to another year starting January 2013.

IICEM contract was modified and aligned in December 2011 with FtF objectives and will now focus on the cereal (rice, millet and sorghum) value chain development along with the support services and the needed enabling environment. The project implementation zones are targeting only FtF focus regions.

IICEM will continue to increase the productivity and improve the competiveness of rice, millet and sorghum through the following activities:

Expansion/rehabilitation of irrigated agriculture and intensification of agricultural production;

Enhancement of access to market and trade;

Improvement of the enabling environment;

Enhancement of access to finance;

Development of small and medium enterprises;

Development and expansion of resilience activities such water and soil management techniques;

Development/construction of warehouses /storage facilities;

Development of gardening infrastructures and activities (including the construction of fences and wells for targeted existing and new sites);

Development and expansion of aquaculture and rice fish farming (including the construction/rehabilitation of fish ponds); and, Evaluation/monitoring of the existing guarantee funds and ensuring that the remaining funds will return to USAID.

In addition to the infrastructure development, IICEM will also provide technical assistance for the management and operation of the infrastructure. Moreover, IICEM will improve the capacity of the relevant value chain actors to facilitate market linkages among them. In order to facilitate access to inputs and credits, producers, distributers and processors will be linked to financial institutions. Additionally, IICEM will ensure the introduction and diffusion of production and harvest/post-harvest technologies and best practices to the value chain actors to increase their capacity in marketing and business management.

3. Rural Infrastructure and Governance:

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The Rural Infrastructure and Governance program is an integrated program developed by the USAID’s AEG, Governance and Health teams in order to support infrastructure development and service delivery in rural communities. Through this program, rural communes will be able to apply for small-scale infrastructure grants for rural water, sanitation and irrigation projects. Governance funds will be used for capacity building and support to rural communes who will be charged with maintaining and operating the facilities through the establishment of water associations or management structures. At present, USAID is restricted from providing any direct support to all GOM institutions. Therefore this program will remain on hold until USAID can resume working with the GOM. AEG funds will be used specifically for irrigation and water point development under the Rural Infrastructure program. However, the program will benefit from Governance funds, which will contribute to Output 4. The activity is envisioned as a five-year activity that will initially target communities that are currently included in the AEG, Health and DG programs and initiatives. The concept has been approved by the mission and a scope of work has been drafted for the technical services component, however the implementation of this activity is on hold until USAID can resume work with the GOM. An institutional assessment of the ANCT and GOM treasury will be conducted to determine if USAID can channel funds through the GOM.

4. Water and Producer Association Technical Assistance:

The Alatona Irrigation Project (AIP) is a $234 million dollar USG investment funded through MCC.

The program includes the development of 5,200 ha of irrigated rice and the associated management structures to govern the water infrastructure and producer groups. Infrastructure associated with the development has been completed; however, the producer groups and water user associations will continue to need capacity building and training in order to ensure the success of the USAID investment. To this end, USAID is committed to providing technical assistance to the producer groups and water user associations through two local NGOs (G-Force and Nyeta) who have been engaged in this effort under the ACDI/VOCA contract. The MCC program has been forced to prematurely close due to the recent coup in Mali. Therefore, the Alatona water and producer association technical assistance program is being fast-tracked to ensure the continuity of the AIP program. A draft SOW has been developed, however an institutional assessment of the local NGOs will need to be conducted before the grants can be awarded. The program is envisioned as a five-year program that will ensure the sustainability of the MCC investment and provide a model of reform to other parts of the Office du Niger.

5. Small Irrigation Infrastructure (KfW and GTZ):

KfW, the German development bank, has been the lead donor in the area of small-scale rural infrastructure, which remains the cornerstone for agricultural development in the country. In the spirit of inter-donor coordination and partnership USAID/Mali is proposing direct support to the existing KfW program to carry our irrigation infrastructure development in Sikasso. The program will contribute to Output 1and Output 3, by building the capacity of the producer groups and water user associations. At present an inter-donor agreement has been drafted, but not yet reviewed by the USAID regional lawyer. USAID/Mali envisions maintaining two separate agreements with KfW, who finances the construction of the infrastructure, and GTZ who provides technical assistance and aids the communities to manage, maintain, and operate the infrastructure for maximum benefit through improved water management, increased production and crop diversification. The partnership with GIZ will include ancillary activities to maximize the benefit of irrigation systems, including the training and promotion of integrated rice and aquaculture production and crop rotations with potato and vegetable production in the off-season.

6. Sorghum and Millet Seed Sector Development (ICRISAT):

Malian farmers have traditionally produced their own sorghum and millet seed by retaining a portion of their produce each year for the subsequent growing season. However, significant increases in production levels will require the use of hybrid seed varieties that will enable farmers to both increase

USAID/Mali AEG Feed the Future IEE 13 August 2012 | Page 14/68 yields and the value of production. A decade ago a formal seed sector in Mali was non-existent.

However, Mali now has an opportunity to capitalize on the success achieved to increase wide spread distribution and utilization of improved seed varieties. USAID/Mali proposes to do this by partnering with ICRISAT, who has a long history of both working in Mali and in developing new seed varieties.

The program will focus on increasing farmers access to improved seed, training and strengthening seed producers, businesses and suppliers and establishing seed producers, cooperatives and marketing entities for the commercialization of improved seed varieties.

7. Mali Agricultural Value Enhancement Network (MAVEN):

The Mali Agricultural Value Enhancement Network (MAVEN) is an existing thee-year farmer-to-farmer program (scheduled to end 31 March, 2013), which aims at increasing agricultural sector productivity by leveraging U.S. short-term technical expertise from a wide range of backgrounds. As such the program has the ability to contribute to a number of outcomes. MAVEN is now focused with FtF value chains of rice, millet and sorghum and the livestock. The product also supports garden activities for vegetable production. MAVEN will achieve its objectives through the following activities targeting its cereal value chains actors:

Improvement of production and marketing of rice, millet and sorghum:

Volunteer assignments will focus on the introduction of technologies and best practices in production (including but not limited to soil and water management and integrated pest management) and marketing.

Improvement of business management skills:

MAVEN will provide volunteer technical assistance to strengthen the capacity of targeted agribusinesses, farmers groups in business management.

Increase access to input and finance:

MAVEN will also increase the capacity of the value actors such as the input suppliers, the processors and the producer groups to develop business plans and loan applications to obtain credit to improve and/or expand their commercial operations.

Under this project, the volunteers and staff will also work with financial institutions to help them better tailor their products to non-conventional clients.

8. U.S. Peace Corps Participating Agency Program Agreement (PAPA):

The Peace Corps PAPA is an existing USAID/Mali program that began under the USAID Global Food Security Response (GFSR) in 2009 and will continue under the FTF. The current agreement ends in June 2013, but it is expected that USAID/Mali will continue to work with Peace Corps through the completion of the FtF Initiative in 2015.. The program is primarily focused on increasing rural incomes and food security. PAPA funds enable volunteers to build grassroots capacity to address food insecurity in Mali through an integrated response to specific, locally identified organizational, technical, financial, and communication needs. The program represents relatively small amounts of money that are strategically used at the grassroots level and contribute to a wide range of activities.

9. Mali Out-of-School Youth Program:

The Mali Out-of-School Youth Program is a five-year program (October 2010 –September 2015) jointly funded by the AEG, Education, Health and Governance teams that will transform Malian youth into educated, economically productive and civically engaged citizens. The majority of the targeted youth will receive training in agro-enterprise activities. The program will contribute primarily

USAID/Mali AEG Feed the Future IEE 13 August 2012 | Page 15/68 to the increased resiliency of vulnerable communities and households, specifically through the diversification of income streams. In the long term the program will build the capacity of future local organizations and producer groups.

10. Adaptive Research: Cooperative Agreement with the Institute of Rural Economy (IER):

When current restrictions on working with the GOM are lifted, USAID/Mali plans to fund research conducted at the GOM Institute of Rural Economy (IER) to improve agricultural productivity. The funding will support three ongoing research programs in the areas of foundation seed development, intercropping and soil-ridge tilling. The program is at risk of being discontinued if USAID/Mali is unable to resume direct support of GOM programs and institutions. Under such conditions an alternative research organization will have to be found to carry out needed research and information dissemination within the country.

11. Policy Reform:

The Policy Activity will focus on farm-, firm-, and market-level research and analysis; synthesize the policy options and outcomes required to elucidate and deepen some of these policy debates at country, regional, and international level; and undertake the capacity building aspects of the policy systems across the food security policy spectrum. As such, this activity will support agricultural policy research and advocacy to improve, remove and/or reduce priority policies, regulations, procedures and laws, which are most closely linked to achieving food security.

12. U.S. Department of Commerce Commercial Law Development Program (CLDP):

The Commercial Law Development Program (CLDP) is a Participating Agency Service Agreement (PASA) to assist, strengthen and support the trade and investment-enabling environment in Sub- Saharan Africa. The CLDP is a five-year program running from June 2007 through September 2012.

USAID/Mali is considering the extension of the program activities through the implementation of a follow on program CLDP2. The goal of the program is to develop model intellectual property (IP) protections and other trade and investment enabling environment activities to increase the trade capacity of Mali. CLDP‘s program specifically aims at: 1) the promotion of innovation and the return of investment by an effective enforcement of the rights; (2) effective intellectual property systems and their influence on the development of society; and (3) intellectual property systems and their relationship with the trade sector. The CLDP program will include:

a. Organizing trainings and workshops for public and private sectors actors on the following topics: the integration of intellectual property rights (IPR) in Malian laws and development programs, the resolution of IPR disputes, enterprise creation, technological transfers contracts, government procurement, and sanitary and phytosanitary standards (SPS);

b. Building the capacity of the commerce, tax, customs, and competition and competitiveness offices in Mali to ensure that rules and regulations pertaining to imports and exports are applied consistently;

c. Developing model intellectual property (IP) protections; and

d. Performing other trade and investment enabling environment activities.

13. The Living Standard Measurement Study (LSMS):

The Living Standard Measurement Study (LSMS) is a cooperative agreement with the World Bank that will focus on improving the quality, timeliness and policy relevance of household-level

USAID/Mali AEG Feed the Future IEE 13 August 2012 | Page 16/68 agricultural statistics in Mali, with an emphasis on sustainability and capacity building. The purpose of this grant is to provide support for improving the availability, quality and policy relevance of agricultural and rural statistics. The program will include:

a. Providing technical support, in a cooperative agreement with the World Bank, on survey design and plans for analysis of data by the Institut National de la Statistique (INSTAT) and Ministry of Agriculture Statistics unit, from the planned Living Standard Measurement Studies (LSMS). (The LSMS will focus on improving the quality, timeliness and relevance of household level agricultural statistics in Mali); and

b. Provision of technical support/mentoring for Malian researchers in the analysis of the panel farm-level surveys that INSTAT will be carrying out with USAID/Mali and World Bank support.

14. Bureau for Food Security (BFS)—Long-Term Training Program:

Mali has been selected to participate in the long-term training program sponsored by the USAID Bureau for Food Security. The program will be a jointly funded (Mission-Washington) contract that will build the capacity of key national agricultural institutions by:

a. Recruiting 10 to 15 Malians employed at target institutions and talented graduate students for U.S.-based degree training (PhD, MS); and

b. Incorporating field research in Mali aimed at strengthening and maintaining the students’ connections to in-country research organizations.

15. Technical Support for the University of Bamako:

USAID/Mali has been providing various technical support to the University of Bamako. The program includes:

a. Continuing the agricultural economics graduate programs…