(TRUST FUND PROJECT EXAMPLE)

PROJECT OF THE GOVERNMENT OF XXXX

Brief Description: This project, building on the achievements of the earlier ...-funded and FAO-executed food security project, will assist the Government of XXXX to strengthen the National Food Security Information System which includes: (1) strengthening of the capability of MARD to monitor and forecast province-level food crop production; (2) improving the national capability for reliable and timely flow of price data and market information; (3) developing a sustainable model for an effective national and household-level food supply and demand monitoring; (4) increasing the institutional capability for analysis of data and information, report preparation and dissemination of information with user-producer feedback mechanism. The project outputs will directly contribute to meet the information requirements of the national food security programme. The assistance comprises: technical advisers in agricultural statistics, crop forecasting, price data collection, food balance sheets, data processing, use of information for policy analysis and development planning and other parameters/components of the food security information system needing improvement; equipment for data transmission and processing; training and operating expenses.

On behalf of	Signature	Date	Name/Title
Government of XXXX	_______________	_____	__________________
FAO	_______________	_____	__________________
Donor	________________	_____	__________________

PART I PROJECT AGREEMENT

1. Wthin the framework of its agreement with the Government of ... (the Donor Government) and upon request from the Government of XXXX (the Government), the Food and Agriculture Organization of the United Nations (FAO) will supply assistance for the execution of the following project:

Project Symbol and Title:	GCP/../.../.. - Strengthening National Food Security Information System
Estimated Costs:	US$ 1,484,131
Donor Government's contribution:	In cash: Local Currency (Lc) 1,675,000,000.
Counterpart contribution:	In kind: Lc 1,325,000,000.-
Planned Duration:	3 years

A detailed description of project design, including background, purpose, budget and work-plan, is provided in Part II of the present document (attached).

FAO OBLIGATIONS

2. FAO shall be responsible for the recruitment, international travel, salaries and emoluments of the international staff. Appointments of international staff shall be submitted to the Government for clearance All international staff will work under the supervision of the Chief Technical Adviser/Agricultural Statistician, who is responsible for the technical coordination of the project.

3. FAO will provide the necessary equipment and supplies. The equipment will remain the property of FAO for the duration of the project. Its ultimate destination shall be decided by FAO in consultation with the Government.

4. FAO will arrange for supervisory travel visit to the project, to be finance from project costs as shown in the Donor Government Budget.

5. All FAO's obligations arising under this project document shall be subject to (i) the decisions of its governing bodies and to its constitutional, financial and budgetary provisions, and (ii) the receipt of the necessary contribution from the Donor Government. Any obligations assumed by FAO may, at any time, be taken over by the Donor Government.

6. FAO may, in consultation with the Government, execute part or all project by sub-contract. The selection of the sub-contractors shall be made, after consultation with the Government, in accordance with FAO's procedures.

GOVERNMENT OBLIGATIONS

7. The Government shall take all necessary measures to facilitate the execution of the project and to assist the FAO staff in obtaining such services and facilitates as they may require to fulfil their tasks. The Government shall apply to FAO, its property, funds and assets, its officials and to the persons performing services on its behalf, in connection with the project, the provisions of the Convention on Privileges and Immunities of the Specialized Agencies, the currency exchange rate established with the United Nations.

8. The Government shall deal with any claims brought by third parties against FAO, its personnel or other persons performing services on its behalf in connection with the project, except when it is agreed by FAO and the Government that such claims arise from gross negligence or willful misconduct of such persons.

9. The Government shall be responsible for the recruitment, salaries and social security measures of the national staff. The Government shall also provide the facilities and supplies, as and when required for the project.

10. he Government shall grant to the staff of FAO and of the Donor Government and to persons acting on their behalf, access to the Project site and to any material or documentation relating to the Project and shall provide any relevant information to such staff or persons.

11. The Government is responsible for the cost of import and customs clearance of project equipment, its transportation, handling, storage and related expenses within the country; its safe custody, maintenance, insurance and replacement, if necessary, after delivery to the project site(s).

REPORTING

12. AO will report on the project to the Donor and recipient Government as detailed in part II.

13. The Government shall agree to the dissemination of information like descriptions of the project and of its objectives and results, for the purpose of educating the public opinion.

AMENDMENTS AND TERMINATION

14. Ts project document may be amended or terminated by mutual consent. Termination shall take effect sixty days after receipt by either party of written notice from the other party. In the event of termination, the obligation already assumed by the Government shall remain in force to the extent necessary to permit orderly withdrawal of the funds and assets of FAO and of personnel performing services on its behalf.

15. ,is project document shall enter into force upon signature by both parties.

PART II PROJECT DESIGN

1.0 BACKGROUND

1.1. XXXX's Agricultural Economy and Food Security Concern

XXXX covers a mainland area of about 331 thousand square kilometers, of which some 73 thousand sq. km. is agricultural land and another 55 thousand sq. km. arable land. In 1995, the population was estimated at 80 million, of which 65 million, or 80% of the total comprising the rural population whose main source of income is agriculture.

Since the renovation policies have been introduced in 1986, the XXXX economy has gone through fundamental changes, starting from a rigid, centrally planned regime to a market-friendly system open to the rest of the world. Today, XXXX has an economy as liberal and dynamic as any other country within ASEAN, which it joined in 1995. Agricultural output, including food and industrial crops, continues to grow and the country is struggling to manage surplus agricultural production without adversely affecting income of the farmers and national food security. It has also achieved macro-economic stability and a rate of growth similar to the tiger economies of Asia. These successes, however, have not been sufficient to overcome the problems of rural employment, poverty and income inequality.

From a food deficit economy, XXXX, in the last ten years, has transformed itself into a rice net exporting country. However, with almost no land available for further expansion of the arable sector, the pressure on the existing land is very high. The average size of an agricultural holding is only 0.7 hectare, and the average farming household comprises 4.8 persons. The increase in rice production has been mainly due to increased yield through the introduction of improved varieties and the increase in use of fertilizer and plant protection methods. However, improved technologies and better farm management practices are only spreading slowly. Moreover crop production remains dependent on marked weather changes and as a result, the food supplies situation and marketable surpluses will continue to experience fluctuations and difficulties from time to time.

Total rice production has increased significantly, but due to the increase in exports this has not always led to an increased availability in the domestic market. With rice providing the staple food for the population, the production of other food crops for domestic consumption and of cash crops is only slowly increasing. The fluctuations in the production and supply of rice due to weather, natural calamities and inadequate transport cause the nutritional status of large groups of the population to be still poor, particularly as regards the provision of proteins, fats and vitamins.

The Government formulated during the years 1990-1991 a new Socio-Economic Strategy for the period up to the year 2000, constituting a significant change in the development planning and reflecting an indicative approach within the framework of the "New Mechanism". A strategic importance covers the proposed formulation of a comprehensive national food security programme under which the "XXXX agriculture will have the prime objective to ensure food supplies and improve nutritional levels of the diets for the whole community, providing not only sufficient calories but also higher levels of proteins, fats and vitamins".

To assist Government in this task, a technical assistance was provided to the then Ministry of Agriculture and Food Industry, now Ministry of Agriculture and Rural Development (MARD), to evolve a national food security programme. The Government of ... provided the financial resources for the "Pilot Project for the Development of the National Food Security Programme" (GCPS/RAS/.../....) while FAO served as the executing agency. The project started in October 1992 and concluded in October 1998.

1.2. Prior and Ongoing Assistance

The present project builds on the results achieved by earlier regional technical assistance provided to the Governments of XXXX and ZZZZ by the Donor Government and executed by FAO. The project started in XXXX in October 1992 and had the following objectives:

1. strengthening of the programming and coordinating capacity of the institutions concerned with the monitoring and evaluation of the national food security situation;
2. development and testing on a pilot basis of a food security information system (FSIS), through collection and analysis of data in order to provide regular and accurate information necessary for taking decision and action as appropriate;
3. elaboration of a comprehensive food security programme towards the year 2000;
4. training at the national and provincial level of the staff involved in food security information and programming activities.

When the project commenced its operations in 1992, the 10-days crop progress report was the only data collection activity undertaken by the then MAFI. This reporting system is a source of information for the very short-term day-to-day management of the agricultural sector by MARD. Although still being operated, this reporting system was and is regarded by FAO as technically not reliable for organizational, managerial and methodological reasons. The quality and accuracy of the reports cannot be determined as the MARD only receives a consolidated provincial report from its provincial agricultural officers. Until recently, there was no predetermined reporting form; reporting intervals differed from province to province; and the commune level reporters had never received formal training on data collection and statistical reporting.

The project addressed this concern by initiating a pilot Food Security Information System (FSIS). The main function of the FSIS is the timely provision of information on the national food security situation, especially information regarding rice. As envisioned, the FSIS should have consisted of three related sub-systems: crop monitoring and forecasting (CMS), market information (MIS) and household food security and nutrition surveillance (FNS). During the actual implementation of the project, however, only the CMS and MIS were undertaken.

For setting up the data collection activities and for testing of the two components of the FSIS during the first phase of the project, four pilot provinces were selected: A in the north, B in the central coastal area and C and D in the south of the country. With the help of international consultants the data collection system was designed and field data collection activities were initiated in November 1993.

The initial CMS and MIS set-up was found to be unworkable and unsustainable. A mission commissioned to undertake an evaluation of the Project noted that: "Major reasons for the breakdown of the system were the lack of incentive payments, the low educational level of village data collectors and a too cumbersome set up. Even if this system had generated the data expected from it, the pilot areas could never have been expanded nation-wide as the system would have been far too expensive, if incentive payments had been included."

Given the experiences of the initial project phase, in April 1995, a modified food security information system was designed which included baseline data for all communes, a crop monitoring and forecasting system to include 41 of then 53 provinces in the country, representing 95% of paddy production, and market monitoring of retail rice prices at one central market in all provincial capitals. To ensure timeliness in the availability of reports, sampling technique was introduced for the crop monitoring and forecasting sub-system and it was expanded to make estimations for the seven agro-ecological regions of the country based on information received from sample districts. In addition, for three agro-ecological regions (... and North Central Coast) sample communes were chosen to make comparisons between the estimations based on the selected districts and the selected communes. The new system is based on data from 230 sample communes and 130 sample districts. The introduction of the modified system was linked to the payment of incentives to data collectors in the field and data processors and analysts in the Statistics Division of MARD.

Printed output from the FSIS began with the issuance of the Monthly Rice Price Situation Update in March 1996, including information on seasonal price behaviour, regional price movement, comparative prices, international rice prices and international trade involving XXXX. From September 1996, monthly XXXX Rice Progress Reports, the output of CMS, have been prepared, providing information, by seven agro-ecological zones, on area planted, pest and diseases, availability of inputs and total paddy harvest.

1.3. Institutional framework

According to existing laws in XXXX, the overall responsibility for official statistical activities, including agricultural statistics, lies with the General Statistical Office (GSO). In an inter-ministerial decree issued in 1989 by the GSO and the then Ministry of Agriculture and Food Industry (MAFI), now the Ministry of Agriculture and Rural Development (MARD), the latter was assigned the responsibility for the collection of information on the progress of agricultural production. Accordingly, the GSO conducts surveys on crop yield and crop production, as well as other socio-economic data related to agriculture. The Statistics Division of MARD, meanwhile, assumed the responsibility for the collection of information on crop progress from all the provinces every 10 days, which it summarized into a national crop progress report for submission to the Cabinet only, in the same interval.

The MARD came into existence as a result of a merger in 1995 of three Ministries: that of Agriculture and Food Industries (MAFI), Water Resources, and Forestry. Within the MARD the Department of Planning and Projections (DPP) is charged with the responsibilities to formulate plans for the realization of Government policies, particularly those regarding national programmes for food production, consumption and exports. Other tasks include the preparation of annual and five-year development plans, management of contracts on investments in agriculture and food processing, and monitoring of the national situation of agricultural production and developments in the domestic rice markets. The DPP discharges these functions through 6 operational divisions, one of which is the Statistics Division.

The present set-up of the Statistics Division consists of a chief, a deputy chief and 8 staff members, all of who have at least a university degree. The Division is given the mandate to support the statistical information needs of the Ministry. Within the Division, a FSIS Implementation Team, consisting of four officers, has been assigned the task to operate and manage CMS and MIS.

With an increased focus the project is expected to give on the use of information in support of policy formulation and development of intervention plans and programmes for food security, the active involvement of the Department of Agricultural and Rural Development Policy (DARDP) in many project activities is also expected. It is therefore imperative that a strong and functional coordinating mechanism be clearly established between DPP and DARDP to further enhance the efficiency of MARD and insure smooth project implementation.

In order to achieve the project's goal of putting in place a sustainable system for the periodic assessment of household food insecurity and vulnerability, the active participation of the National Institute of Nutrition (NIN) is anticipated. The project is expected to significantly input into the improvement of existing system within NIN on the assessment of household food consumption and nutrition-related measurements. The Project Implementation Team will establish strong co-ordination with NIN in the formulation of specific activities to be undertaken as regards the household food insecurity and vulnerability component of the project.

The involvement of the General Statistics Office (GSO) in project-supported activities on household monitoring may also be solicited. The GSO recently completed a comprehensive living standard survey. Results of the study are slowly coming out. The project will closely look at these results, the methods used for the collection and generation of standard of living indicators and assess areas where project intervention would result in the overall improvement of Government's efforts on assessment and improvement in household living conditions.

2.0. PROJECT JUSTIFICATION

2.1 The Present Situation: Achievements and Limitations

Through the support of the predecessor project, MARD has now succeeded in establishing a regular retail price monitoring system for rice. Under the modified FSIS, MARD has been receiving consumer prices of rice from all provincial capitals as from August 1995. The retail price monitoring system is complemented by an improved monthly crop progress reports from the 360 data collection points since April 1996. The resultant data sets have been summarized and analyzed in the monthly Rice Price Situation Update and the monthly XXXX Rice Progress Report.

An evaluation mission, fielded in late 1996, found the present design of the Crop Monitoring System (CMS) as "far more appropriate to the level of development of statistical services and it is a credit to the project and the Government that a more workable system was accepted for development."

FAO's technical experts who had assisted MARD in the development and operation of the FSIS left XXXX in December 1996 and March 1997 respectively. Since then, MARD has continued to operate the system in exactly the same way as it had been established by the project.

The monthly Rice Price Situation Update has been regularly issued, however, in XXXX language only. It was the FAO experts who had prepared, and distributed to an international audience, the English version of the document. As the international agencies in ... have their own capacities to get XXXX translated into the language they prefer, it has now been agreed to continue to issue a XXXX language version only. However, a short summary of the main findings and conclusions is being attached to the document.

Some of the regular recipients of the monthly publication expressed appreciation for the continued effort of MARD to sustain the operation. They however, expressed the wish to see significant improvement in the manner the data are presented and analyzed. They look at the publication as a step in the right direction to provide better understanding of the dynamics of the emerging marketing system in the country.

The Statistics Division of MARD continues to issue the 10-days crop progress report. This report is for the sole use of cabinet members and some senior officers in MARD.

The monthly XXXX Rice Progress Report, the output of CMS, also has been regularly issued, in XXXX language. It is supposed to replace the 10-days crop progress report, but, as the CMS is still in its test phase, the Government wishes to compare the results of the two approaches before giving up the 10-days report as advised by FAO. At present, the Government also does not wish to disseminate this information to a wider audience, as it is not yet confident with the information generated by CMS.

Payment of incentives to field data reporters has proved to be an absolute necessity for the CMS and MIS to effectively operate. Provincial agricultural officers (61 provinces) submit a report every 10 days and receive 100.000 local currency per month. The district agricultural officers (130 districts) submit a monthly report and receive 30.000 local currency per month; commune statisticians (230 communes) also submit a monthly report and receive 20.000 local currency per month. In total, the field data collection system as presently operated, costs 14.600.000 local currency per month (US$ 1.123 at the September 1998 exchange rate). To be added to this are the postal costs for data transmission in the order of 700.000 local currency per month (US$ 55). The monthly total cost is in the order of 1.200 US$. These costs were paid until end April 1997 by the Donor-financed project GCPS/RAS/.../.. and have since then been paid from the regular budget of MARD. MARD has concluded, in writing, an individual contract with each commune, district and provincial data collector defining the modalities for data collection and transmission and the corresponding payment to be made to the data collectors by the Ministry. Senior FAO staff who conducted checks with the Ministry shows that the installments had in fact been paid to data collectors as stipulated in the contract.

The evaluation mission found that the present components of the FSIS corresponded well to the existing institutional capacity of MARD's Statistics Division. Given the short time that the system had been in full operation, the mission recommended its consolidation, continuing the operation of the present system with Government resources. Further external assistance for the full development of the FSIS was also recommended by the mission under the condition that the existing activities were sustained from national appropriations. Its development however should be phased, taking into account available human and financial resources of the Government to sustain the expanded system.

The pilot FSIS is still a light mechanism with limitations in terms of both operation and analysis. The system is being directed from the central level and the information generated is exclusively used at the central level; the provincial authorities which are really the ones dealing with day-to-day matters of agriculture and rural life have not been sufficiently involved. Hence, the wish of the Government to expand the system to have reporting at the provincial level. This is understandable since the current regional-level reporting is really only useful at national level since the agro-ecological regions do not correspond to any entity in the Government structure. There will be costs involved in an expansion from seven regions to 61 provinces, which the Government should be very well aware of. Institutional arrangements and collaboration with the provincial authorities will have to be developed. There is also a need to more closely monitor and supervise field data collection and reporting and to provide technical feedback to data collectors, including regular re-training.

The evaluation mission recommended that improvements in the analytical content of the CMS and MIS reports be made. In addition, only limited efforts have so far been made in utilizing the information collected to analyze the national food security situation. To improve on this it will also require to undertake basic studies on some of the key food security related factors, such as consumption, trade, stocks, exports etc.

The evaluation mission further recommended an increased circulation to interested parties of the information generated under FSIS and that feedback from users must be sought.

From the time FAO dispatched the first follow-up project formulation mission in 1997, significant changes have taken place in the MARD. The FAO/Donor formulation mission fielded in September 1999 was pleased to note that in at least two key departments of MARD, the Planning and Projection (DPP) and Agricultural and Rural Development Policy (DARDP), younger, foreign-educated and/or graduate degree holders from national universities public administrators have now assumed key positions, thereby providing more focused direction in their respective activities.

The DARDP has established its own Market Information Group and has now taken the initiative to undertake a pilot project in ... province for a user-focused market information collection and dissemination. The experiences evolving from this project, now on its fifth month, will serve as a useful reference for the follow-up project. To the extent possible, this follow-up project should exert all efforts to establish strong co-ordination with DARDP with respect to the department's on-going and planned food security-related activities to effect optimal use of scarce resources.

Household food security and vulnerability assessment has remained weak and unreliable. The last national food consumption survey was undertaken in 1989. In the past three years, the National Institute of Nutrition has been searching, without success, to secure funds in order to mount a follow-up national food consumption survey. In the meantime, it has to limit its nutritional surveillance activities to small ad-hoc studies covering very limited geographical areas. Very recently, the General Statistics Office announced the completion of its level of living standard surveys. This is a series of surveys conducted over a span of close to five years to come up with indicators of household level of living standard. Results have started to come out but an intensive analysis of data have yet to be undertaken.

FAO has already started to prepare the groundwork for the eventual establishment of a Food Insecurity and Vulnerability Information and Mapping System (FIVIMS) in the country. A seminar on household food security and nutrition was held on 23 July 1999. The seminar was jointly organized by NIN and FAO with the following objectives: (a) create awareness among actors in the field of household food security and nutrition; (b) explain the concepts of household food security, develop a conceptual framework and then identify measurable indicators for household food security and nutrition; and (c) launch dialogues/discussions on food and nutrition security using lessons learned and experience exchanges as a basis for future activities for the ACC thematic group.

2.2. Expected End of Project Situation

At the end of the project, the following results are expected to exist:

• An operational system of an inter-agency collaborative effort on crop forecasting in order to produce quantitative advance information on food crop production;
• The CMS sub-system of the FSIS will considerably be strengthened with province level monitoring included;
• The MIS sub-system of the FSIS will have been improved, with expanded number of commodities and its subject coverage enlarged to include in particular: consumer prices, wholesale prices, volumes and commodity flow, quality (grading) of grain traded, exports, national stocks;
• A model for a sustainable household food security monitoring system with particular attention to vulnerable and/or food insecure groups of the population implemented in selected pilot provinces;
• A system of food balance sheet (FBS) integrated into the country's agricultural statistical service as a means for evolving food security strategy to improve nutritional status of the population;
• A wider dissemination outreach of the FSIS information materials and studies with a user-producer feedback mechanism in place;
• An improved capacity in the Departments of Planning and Projection and Agricultural and Rural Development Policy of the Ministry of Agriculture and Rural Development to analyze the agricultural development and food security condition in the country utilizing the information generated from the FSIS and the FBS. This will be embodied in a periodic agricultural situation and outlook report and occasional policy papers.

2.3. Target Beneficiaries

The beneficiaries of the project are successively:

1. the Ministry of Agriculture and Rural Development, in particular its Planning and Projection and Agricultural and Rural Development Policy Departments, with specific focus given to the Statistics Division, including related staff at the province, district and commune levels, who, through training programmes will see their professional skills enhanced;
2. the Government of XXXX as a whole, and in particular, MARD and the National Food Security Committee, and the National Institute of Nutrition, which require improved analytical tools as well as timely and reliable data for determining situation and outlook of the country's food security;
3. the ultimate beneficiaries will be the entire population of XXXX, particularly those living in food deficit areas, the rural poor and those affected by nutritional risks, as the project will enable the Government to stabilize the supply and improve the access to basic foodstuffs.

2.4. Project Strategy

The project will undertake a combination of activities addressing the needs of government to establish sustainable mechanisms for the regular generation of important parameters on key food security concerns on availability, accessibility and stability. It will therefore consist of four inter-related components in order to be responsive to the needs of Government for a technically sound food security information system:

1. Household Food Security Monitoring: the project will assist in setting up a model for data generation and utilization for periodically assessing the ability of vulnerable and/or food insecure groups of the population to acquire the food they need, through domestic production or through purchasing;
2. Food Marketing Monitoring: the project will improve the quality and timeliness of information and considerably expand the approach, content and coverage of the market information system initiated in the predecessor project;
3. Food Crop Monitoring: the project will continue to provide limited support to the on-going system for crop (paddy) monitoring; mainly by way of providing technical assistance to the government to bring down the level of monitoring and analysis at the province level; required operations costs are expected to be provided by government;
4. Analysis and dissemination: the project will strengthen the capacity for analysis of the data resulting from the different components and for report preparation, both for the purpose of preparing reliable "situation outlook" reports as well as for the identification of the impact of the renovation policies on the rural population; information dissemination outreach will be considerably expanded with a user-producer feedback system put in place.

Key features of each of these components are the development or improvement of methodology, establishment or reinforcement of organizational arrangements and training of staff.

These components have been addressed to various extents under the predecessor project. Therefore, the main strategy for implementation is to build upon organizational structures and activities that already have been established. In this process, due attention will be given to the disparity that exists between the South of the country that produces surplus food, and a number of provinces or districts in the North that are food-deficit and to the degree this affects the household-level food security.

The following areas will be covered:

• Issues and concerns affecting households access to, and demand for food, which were not accorded attention by the predecessor project, will be considered a priority objective in the follow-up project. In co-ordination with relevant institutions such as the National Institute of Nutrition, sustainable monitoring systems to assess nutritional status and food insecurity conditions of rural households and other vulnerable groups will be designed and implemented in selected pilot provinces. After a thorough assessment of available information in this area, the project will assist in mounting pilot modules for monitoring household-level economic and social conditions.
• Existing stand-alone efforts of different Government agencies relative to food crop production monitoring and forecasting will be rationalized through the establishment of an inter-agency technical working group (TWG) on food crop forecasting. Among the institutions which may constitute the TWG, the following may be considered: Ministry of Planning and Investment, General Statistical Office, Ministry of Agriculture and Rural Development, National Institute of Nutrition, Institute of Meteorology and Hydrology and XXXX Northern Food Corporation (VinaFood I).
• Food crop monitoring will be improved in respect to quality and timeliness of information; quality and range of circulation of reports, including user-producer feedback mechanism. The statistical basis for the crop monitoring sub-system of the FSIS will be consolidated using the experience gained during the implementation of phase 1 of the project. The CMS operation will be expanded to provide province level information. Sampling techniques will be extensively used to achieve efficiency in data collection and make results available on a timely basis. Moreover, the commodity coverage of the CMS will be expanded to include foodstuffs other than rice. As a general strategy, the improvement efforts will be pursued mainly with Government resources underwriting the costs of operation with limited contribution from the project mainly in support of system design and training requirements.
• Food market monitoring will be substantially improved in scope (number of commodities, markets and subject matter content-marketing systems, prices, volume and commodity flow); timeliness and reliability; circulation of reports, including user-producer feedback mechanism. The project is expected to substantially contribute to this component, among other things, by providing formats and on-the-job training as appropriate. Consultation and coordination with other Government agencies currently involved in price collection and national stock management, will be carried out in order to rationalize these statistical activities. The strengthened food market monitoring system will provide market-related indicators for the periodic assessment of the supply and demand for food in key areas. The current initiative of the DARDP to evolve an operational marketing information system addressing the needs of farmers and market players will seriously be considered and supported to the extent that the activities are consistent with project objectives.
• A national food balance sheet will be prepared to provide an additional tool in the analysis of the food security situation in the country. The food balance sheet will allow a more rational assessment of the supply and utilization of foodstuffs in the country as net food availability will be measured in terms of its nutritional components (calorie, protein, fats, minerals and vitamins). To support the preparation of the food balance sheet, special studies will be undertaken to fill in possible data inadequacies. Among the areas where studies may be made the following are anticipated: measurement of post-harvest losses; household stocks; industrial uses of agricultural outputs, etc.
• The project will not limit its activities to designing systems to improve collection and generation of food security information. The capacity of MARD to analyze this information to provide the Government with appropriate and on-time intervention to improve national food security condition will be provided adequate support. An extensive training programme will be implemented covering such areas as: statistical methods and operation, policy analysis, development planning formulation, monitoring and evaluation, and technical report writing. While foreign training programme may be provided, more in-country, on-the-job type of training modules will be planned. Networking with national academic and research institutions will be extensively used.
• The project will liaise with relevant actors in the international community in the country with planned or on-going projects, which may impact on food security concerns to establish synergy and effect optimal use of resources.

In support of the project activities and to provide further guidance to the national and international staff on the implementation team, structured backstopping missions of senior officials from both FAO Headquarters and the Regional Office for Asia and the Pacific (RAP) will be constituted.

2.5. Implementation Arrangements

This project is in support of the National Food Security Information System, for the operation and management of which the Government of XXXX carries primary responsibility. Consequently, all activities undertaken within the project will have to be fully integrated within ongoing Government activities. Although the project will be executed by the Food and Agriculture Organization of the Untied Nations, it must be understood that it is not the project which determines what will be done and then requests the national services to follow with implementation; rather, the national services will determine their needs and the actions necessary to address them and the project will assist the national services to do so. The establishment of a permanent institutional mechanism for operating and managing FSIS is a crucial issue. Until now, the FSIS Implementation Team is put together from staff of the Statistics Division of the Department of Planning and Projections, MARD; but this has been an informal arrangement and the perception of the Team has been to work for an FAO project rather than for the Government and expected, and received, incentive payments from the predecessor project's funds. Under the present project, this will no longer be acceptable.

In discussions leading to the formulation of this project, senior management of the Ministry has confirmed that FSIS will be part of the regular work programme of the Statistics Division of the Ministry. Consequently, what is now being done by the informal FSIS Implementation Team needs to be formalized. MARD is requested to establish, within the Statistics Division, the Food Security Information Unit (FSIU) with the objective to ensure and coordinate the regular and timely flow of CMS and MIS data to the Unit; to store and process the data; to carry out, on a continuous basis, the analysis of incoming information and to prepare regular and timely CMS and MIS outputs. MARD will assign four officers to the Unit to work full time with the FSIS; in order to ensure continuity in the FSIS work, the present leader of the FSIS Implementation Team will be made responsible for organizing and managing the activities of the FSIU.

MARD will designate the Director of the Department of Planning and Projections as the National Project Director. He will be responsible, inter alia, for making the necessary arrangements to ensure the full cooperation of the institutions involved in FSIS activities and to liaise with provincial and district agricultural officers and commune statisticians on all matters of field level crop monitoring activities. National Consultants will be identified to work on special studies and assist the FSIU in selected activities.

FAO will provide a long-term Chief Technical Adviser and short term international consultants in different fields. These consultants will work in close collaboration with the national officers and consultants.

While a three-year work plan has been prepared as an integral part of this Project Document, it is understood that the same is being considered as an indicative plan and will be subject to review and revision as necessary, at least on an annual basis, to conform with emerging changes in the country on the one hand, and the pace of project implementation on the other. The flexibility in the implementation modality of the project is specifically relevant, but not necessarily limited to activities related to assessment of household food insecurity and vulnerability.

The project will be subject to an annual tri-partite review by the Government, Donor Agency and Executing Agency. In addition, the Project Implementation Team will provide the tri-partite group bi-annual progress reports. An independent evaluation mission will also be constituted and dispatched to XXXX at least six months before the end of the project.

2.6. Reasons for Donor's Assistance

Despite the remarkable economic performance of XXXX, food security continues to be a lingering concern. Food insecurity in the country arises mostly from households not having sufficient incomes to buy food and to a limited extent due to lack of physical access. The isolation of rural villages from market centers owing to the poor state of infrastructure makes food consumption of rural households vulnerable to production risks.

The economic gains of the country, however, have not been correspondingly matched with an equal level of development in the statistical information service. An internationally acceptable agricultural statistical service has yet to be set up in the country. The evaluation mission has recognized the initial effort of the food security project in instilling awareness in Government on the importance of having a reliable information system set up in the country. However noting that the time given to the implementation of the CMS and MIS is still too short to gain full acceptance, it has favourably recommended continued donor assistance.

The high level Workshop on Post-Transition Agriculture in XXXX, held on 4 July 1997, recognized the need to strengthen the country's statistical information system. It emphasized the need for the Government to invest in improving the country's agricultural statistical information services. Moreover, the Workshop considered the need to expand the dissemination of information and exert efforts to make information available not only to Government and international organizations, but to farmers as well to enable them to make more rational economic decisions to improve their standard of living.

FAO, on the other hand, is in a good position to provide technical support since it has been assisting Governments in a large number of countries in developing and implementing national systems for agricultural statistics as well as Food Security Information Systems. The latter include components for crop monitoring and yield forecasting, early warning systems and national food balance sheets. FAO has demonstrated its overall efficiency and effectiveness in executing and managing institutional and capability building projects such as the present one.

2.7. Counterpart Support Capacity

Given that the present project is an enhancement of the Crop Monitoring and Forecasting and the Market Information sub-systems initiated under the Pilot Food Security Project, active participation of national counterpart staff is already assured. As the Ministry requires to strengthen its analytical capacity, the basis for support is broadened. The following Departments and/or institutions are involved or expected to be involved:

• Ministry of Agriculture and Rural Development
• Department of Planning and Projections (Statistics Division as the focal unit)
• Department of Agricultural and Rural Development Policy
• Department of Agriculture and Forestry Extension
• Provincial Departments of Agriculture and Rural Development
• Ministry of Planning and Investment
• General Statistical Office
• National Institute of Nutrition
• Institute of Meteorology and Hydrology
• Ministry of Trade
• Ministry of Labour, Invalids and Social Affairs
• VINAFOOD I and II
• National academic and research institutions.

3.0. DEVELOPMENT OBJECTIVE

One of the development objectives of the Government of XXXX is the achievement of food security through sustainable agricultural diversification, rural development and alleviation of poverty. In this context, this project will aim at providing reliable information to support the national food security and poverty alleviation programmes and effectively use the same to support policy and planning exercises so that timely decisions can be taken by Government with respect to the food and nutritional status of the population.

4.0. IMMEDIATE OBJECTIVES, OUTPUTS AND ACTIVITIES

4.1. Immediate Objective One

Strengthened capability of MARD to design and implement an expanded marketing information monitoring system capable of providing real-time data on prices (farmgate, wholesale and retail), stocks, volume and flow of marketed commodities.

Success criteria:	Design of market information monitoring system revised incorporating expansion in commodity and subject matter coverage. A system for monitoring market arrival designed and implemented in selected major wholesale markets. A system for monitoring commercial stocks established and implemented in pilot surplus and deficit provinces. A series of studies on commodity marketing systems. Design of market information publication improved and dissemination system expanded to include farmers and private enterprises with user-producer feedback mechanism.
Output 4.1.1.	Improved design and implementation of a reliable province-level farm gate, wholesale and retail price monitoring system for main food items.
Activity 4.1.1.1.	Make an inventory of available data on the market information system at province-level. Identify data gaps and design an improved system of data collection on marketing of major food crops.
Activity 4.1.1.2.	Coordinate with provincial bodies the collection and transmission of selected data.
Activity 4.1.1.3.	Collection and statistical analysis of marketing information at province-level and or major markets.
Output 4.1.2.	A system for monitoring market arrival of staple and horticulture crops designed and implemented in selected major wholesale markets.
Activity 4.1.2.1.	Field visit to major horticulture crops wholesale markets to observe marketing practices.
Activity 4.1.2.2.	Prepare data collection design including reporting formats and instruction manuals.
Activity 4.1.2.3.	Pilot test design and reporting formats in one or two major wholesale markets.
Activity 4.1.2.4.	Revise design and formats as necessary and train enumerators and processors.
Activity 4.1.2.5.	Implement market arrival monitoring on pilot basis, gradually expanding number of markets after staff at central government attains full familiarity with details of operation.
Output 4.1.3.	Stocks (government, commercial and household) assessed at least on an annual basis.
Activity 4.1.3.1.	Make an inventory of available system(s) for collection of information on stocks (with particular concentration on paddy/rice) and assess their strengths and weaknesses (in terms of coverage, reliability, timeliness and accessibility).
Activity 4.1.3.2.	Establish co-ordination/collaboration with source agency to effect data flow to project/MARD.
Activity 4.1.3.3.	Design system for monitoring/assessing stock conditions.
Output 4.1.4.	Rapid production/market assessment studies for main food commodities.
Activity 4.1.4.1.	Identify main food commodities for inclusion in the study.
Activity 4.1.4.2.	Develop plan of action for implementing rapid market assessment study.
Activity 4.1.4.3.	Prepare operation manual, translate to XXXX language.
Activity 4.1.4.4.	Constitute rapid marketing assessment team and conduct on-the-job training.
Activity 4.1.4.5.	Implement rapid marketing assessment study.
Activity 4.1.4.6.	Organize a workshop for presentation of the results of the study.
Output 4.1.5.	Design of market information publication improved and regularly disseminated to government institutions, private enterprises, farmers and the tri-media with feedback mechanism.
Activity 4.1.5.1.	Review and modify as necessary design, format and content of market information bulletin.
Activity 4.1.5.2.	Review distribution list of existing market information bulletin and assess level/extent of convergence between meeting user expectation and publication design and content.
Activity 4.1.5.3.	Expand circulation/distribution list and establish user-producer feedback mechanism.

4.2. Immediate Objective Two.

Strengthened Food Crop Monitoring and production forecasting system capable of producing reliable information on the situation of major food crops at provincial level on a monthly basis through an operational inter-agency coordinating mechanism.

Success criteria:	An inter-agency technical working group on food crop forecasting established and meeting regularly. National food crop forecasts compiled and integrated into the country's agricultural statistical programme. Standard province level reporting forms with appropriate instruction manuals and supporting computerized data entry and processing programs established. A statistically sound province-level sampling design to identify reporting units. Regular surveys undertaken. Regular CMS reports prepared and disseminated by the Food Security Information Unit of the Statistics Division.
Output 4.2.1.	Functional Inter-Agency Technical Working Group of Food Crop Forecasting organized and established.
Activity 4.2.1.1.	Establish terms of reference and composition of the inter-agency working group (TWG), which should include representatives from users and producers of crop forecasts and those who will be able to contribute on estimates of losses or other negative factors not taken into account by the analyses.
Activity 4.2.1.2.	Review existing methodologies used in XXXX for crop yield and production forecasting. Meet regularly and critically assess the methodology and the quantitative forecasts proper. Organize workshops to discuss strengths and weaknesses of the methodologies and adopt mechanisms for regular meetings/discussions of the TWG. This will be linked with the routine/frequency of the yield forecasts.
Output 4.2.2.	Commune level baseline data updated to provide basis for selection of commune (or district) level reporting units for the CMS.
Activity 4.2.2.1	Review and modification of baseline survey form, instruction manuals and data processing programmes used in the earlier Food Security Project. The modification will consider the expansion in the commodity coverage for the revised CMS.
Activity 4.2.2.2.	Preparation of training programme and materials for the training of (a) trainers for Statistics Division staff and (b) field level enumerators and data encoders.
Activity 4.2.2.3.	Conduct and monitor a series of training courses for trainers and field level enumerators and data encoders.
Activity 4.2.2.4.	Conduct the field enumeration.
Activity 4.2.2.5.	Data encoding, processing and report preparation.
Output 4.2.3.	Design for province level sample reporting units (districts or communes) selection on the basis of a statistically valid sampling design.
Activity 4.2.3.1.	Determination of the most appropriate sampling design and selection of sample reporting units for the province-level CMS.
Activity 4.2.3.2.	Field level validation of possible problems and constraints to be encountered during the implementation of the CMS and corresponding revision of the design as warranted.
Output 4.2.4.	Data collection instruments, instruction manuals and computerized data processing programmes designed and implemented for food crop monitoring system in all provinces of the pilot region, in parallel with the existing system for agro-ecological region-level information.
Activity 4.2.4.1.	Review and modify, as necessary, CMS reporting forms, instructions manuals and data encoding and processing programmes established in the earlier Food Security Project incorporating the need to expand commodity coverage.
Activity 4.2.4.2.	Preparation of training programme and materials for the training of (a) trainers for Statistics Division staff and (b) field level enumerators and data encoders.
Activity 4.2.4.3.	Selection of sample reporting units.
Activity 4.2.4.4.	Conduct and monitoring of series of training for trainers and field level enumerators and data encoders initially in 10 provinces (first year).
Activity 4.2.4.5.	Field enumeration.
Activity 4.2.4.6.	Data entry and processing, report preparation.
Activity 4.2.4.7.	Establish monitoring and evaluation mechanism for CMS.
Output 4.2.5.	National forecasts for paddy and maize production issued by TWG before onset of harvest.
Activity 4.2.5.1.	TWG establishes process flow and programme defining specific agency responsibilities for the regular preparation of national forecasts for paddy and maize production.
Activity 4.2.5.2.	Preparation and dissemination of forecasts before onset of harvest.

4.3. Immediate Objective Three

A model for a sustainable system of periodic assessment of household level demand and access to food designed and implemented on a pilot basis in selected provinces.

Success criteria:	Modules for assessing household level demand and access to food designed. Methodology and reporting forms for periodic monitoring of food security conditions of households established and tested in pilot surplus and deficit provinces.
Output 4.3.1.	ethodology for periodic assessment of household level demand and access to food.
Activity 4.3.1.1.	Review and assess available information on household-level demand and access to food including food consumption and nutrition surveillance studies.
Activity 4.3.1.2.	Develop pragmatic methodology and identify monitoring modules for periodic assessment of household food insecurity and vulnerability.
Activity 4.3.1.3.	Test methodology, revise as necessary, and prepare operations manual(s).
Activity 4.3.1.4.	Implement monitoring modules in pilot provinces.
Activity 4.3.1.5.	Organize workshop and present results of study.
Output 4.3.2.	Pilot-basis implementation of household-level food security monitoring system.
Activity 4.3.2.1.	In consultation with relevant institutions, identify suitable pilot province(s).
Activity 4.3.2.2.	Mobilize resources, constitute monitoring team and conduct training for central and field staff.
Activity 4.3.2.3.	Implement pilot household-level food security monitoring.
Activity 4.3.2.4.	Evaluate results and experience and make modifications as appropriate.

4.4. Immediate Objective Four

Capacity of MARD to analyze statistics and information related to food security including national food crop situation and outlook and food balance sheets as well as to formulate policies, prepare development and strategic plans, produce quality reports and disseminate information collected.

Success criteria:	Regular publication programme on crop situation and outlook published under the leadership of MARD. National food balance sheet compiled and integrated in the country's agricultural statistical programme. Staff trained in statistical methods, operations and analysis, forecasting, monitoring and evaluation, economic and policy analysis, development and strategic planning, and technical report writing and publication. Expanded dissemination programme of food security information system publication and reports to include government, farmers, private enterprises, research and academic institutions, media and general public.
Output 4.4.1.	MARD-wide training programme on statistical methodology and operation, statistical, economic and policy analysis, monitoring and evaluation, development and strategic planning and technical report writing.
Activity 4.4.1.1.	Identify training areas required for achievement of project objectives.
Activity 4.4.1.2.	Assess available national expertise as potential resource persons/trainers.
Activity 4.4.1.3.	Prepare training programme.
Output 4.4.2.	A pool of national, provincial and district technical staff of MARD trained in sampling design, data collection, processing analysis, forecasting, monitoring and evaluation, policy formulation, development and strategic planning and technical report writing and publication.
Activity 4.4.2.1	Review capability of national staff assigned to the project.
Activity 4.4.2.2.	Establish mechanism for the implementation of the human resource enhancement programme.
Activity 4.4.2.3.	Implement training component of the project as necessary to carry required statistical operations, special studies, analysis, technical report writing, publication, dissemination and other related project activities.
Output 4.4.3.	National food balance sheet compiled within the Department of Planning and Projection
Activity 4.4.3.1.	International Training (with on-the-job exposure) for one national statistical officer on the preparation of the food balance sheet.
Activity 4.4.3.2.	Conduct an inventory of available statistics in the national statistical service which are needed in the preparation of the food balance sheet. Identify data gaps.
Activity 4.4.3.3.	Coordinate with related agencies (e.g., National Institute of Nutrition) to adopt/establish required food balance sheet parameters (e.g., conversion factors for nutrient equivalents, recommended dietary allowance, etc.)
Activity 4.4.3.4.	Workshop on the food balance sheet.
Activity 4.4.3.5.	Prepare the national food balance sheet covering a three-year average.
Output 4.4.4.	Regular Food Security Situation reports of the National Food Security Committee prepared and disseminated.
Activity 4.4.4.1.	Prepare statistical tables and draft production and marketing information articles for inclusion in the Food Security Situation reports of the National Food Security Committee to be issued by the Department of Planning and Projection.
Activity 4.4.4.2.	Assist in the dissemination of the Food Security Situation bulletins to Government Agencies and Donors Community concerned with food security issues.
Output 4.4.5.	A set of special studies on important food security related variables, post-harvest losses, industrial uses of agricultural outputs, etc.
Activity 4.4.5.1.	Make an inventory of gaps in the national statistical services, which may adversely affect the preparation of the food balance sheet.
Activity 4.4.5.2.	Draw up a programme of special studies in order to fill in identified data gaps. Draw up a short list of national experts who may be tapped to undertake these studies.
Activity 4.4.5.3.	Conduct of identified special studies.
Activity 4.4.5.4.	Preparation of reports on the results of the special studies.
Activity 4.4.5.5.	Conduct workshops to elicit feedback/comments on results of special studies.

5.0. INPUTS

5.1. Government Inputs

5.1.1. Personnel

The Government will take the necessary action for the phased full establishment of the food crop monitoring and forecasting and the market information sub-systems of the National Food Security Information System in MARD. This implies that national staff will be assigned to work full time on the operation and management of the system. The Government is solely responsible for the payment of all emoluments of its staff working on FSIS at the level of MARD.

The Government will assign the Director of the Department for Planning and Projections as the National Project Director (NPD). She/he will liaise and coordinate between the project office and all government offices and agencies involved in the execution of the activities supported by the project and will take decisions on behalf of the Government. The NPD will be responsible for the technical progress and other reports as required by FAO and the Donor Agency. In view of the existing workload of the Director, he may assign a senior staff member to perform these functions, ensuring that this person can make adequate time available to the project.

The existing personnel complement of the Statistics Division will be augmented through the recruitment and appointment of at least four additional statistical officers who will work full time with the project. They will eventually form the core of the Food Security Information Unit to be established within the Statistics Division. In addition, the Departments of Planning and Projection and Agricultural and Rural Development Policy will also provide complementary staff to support the project. Such support may come from existing staff of recruitment of new personnel. The Planning and Policy manpower complement will be trained and assigned to perform analysis of information and prepare publication in support of the needs of MARD and the National Food Security Committee.

The National Institute of Nutrition and the General Statistics Office will be co-opted to assist the project in the formulation of sustainable models for household food security monitoring. Some of the plans of NIN related to household food security monitoring and which may be found consistent with the project objectives, will be supported and implemented in selected pilot provinces. In the pilot implementation, the NIN will make available to the project its technical staff to perform tasks in support of household food security monitoring.

The services of the province and district officers of the departments of agriculture and rural development and of commune statisticians will also be made available to the project. These local officers will be principally responsible for carrying out the field enumeration activities of the CMS and MIS. The Government will continue to cover the cost of incentive payments of province, district and commune level staff at present undertaking field data collection. The project's support to the planned expansion of the CMS to province level will be limited to helping the government design a province level CMS and provide training to field staff.

5.1.2. National Services

The Government will make the necessary provisions for effective participation of the national services in FSIS activities and for setting up the inter-agency technical working groups necessary for the successful achievement of the objectives outlined in this project document. National and international staff working within the framework of this project will have access to all public services and institutions for the collection and transmission of information necessary in connection with the activities supported by this project.

5.1.3. Premises and equipment

The FSIS Implementation Team has now moved to a more conducive environment for an efficient implementation of the work to be undertaken. In anticipation of the expanded activities of the FSIU, MARD is requested to make available two additional rooms for the new members of the FSIU and one room for the international expert(s) and consultants with the necessary facilities as well as a meeting room, when required for training, workshops and seminars. Particular attention must be given to provide premises which allow the computer equipment, provided under the project, to be kept in perfect condition.

5.1.4. Budgetary support

The Government will make timely provisions for the inclusion in its recurrent budget for gradually taking over costs associated with the operation and management of FSIS so that at the end of this project's technical and financial support the continued operation of FSIS on a sustainable basis is assured. The operational costs have been estimated at US$ 21.720 for the first year (2000), of which US$ 14.160 (65%) to be paid by Government, at US$ 44.280 for the second year (2001), of which US$ 24.000 (54%) to be paid by Government, and at US$ 29.400 for the third year (2002), of which US$ 23.400 (80%) to be paid by Government. (Details in Annex 2 A)

During the years 2000 and 2001, FSIS is still being tested with the substantial increase in the number of district and commune sampling units. Although, in absolute terms, the contribution of the Government to the operational costs will substantially increase in the year 2001, it will decrease in relative terms. This is justified by the fact, that operations in this year are still very much a testing exercise, for which the project has primary responsibility. In calculating the costs, it has been assumed that in the third year enough experience is available to rationalize the sample and that it will be possible to strike a balance between the technical needs for arriving at reliable data and the cost of data collection. With the expansion of the system to cover 61 provinces, project funds will initially be made available to cover the cost of incentive payments of the new field level staff, which will be called upon to participate in field data collection. However, payment of these costs will be gradually taken over by the Government.

5.2. Donor's Inputs

The proposed inputs listed below, reflect the assessment of requirements at the time of project formulation. It is recognized that several of the project components are to be undertaken initially on a pilot basis to acquire experience and evolve the most suitable methodology. Some of the inputs, therefore, are of a tentative nature. The preparation of periodic work plans is the most suited vehicle for more detailed specification of input requirements and their timing. Annual Tri-Partite Reviews are scheduled to monitor project progress and, amongst others, to examine work plans and related expenditure proposals and provide concurrence and guidance.

5.2.1. Personnel

5.2.1.1. International Advisers and Consultants (terms of reference attached in Annex 1)

• One Chief Technical Adviser (CTA) /Agricultural Statistician for 18 months (BL 11.01), to establish the project. This is followed by two consultancy missions of four months and two months during the second half of the project (BL 11.52). The same expert who functions as CTA should preferably undertake these consultant missions.
• One consultant in food balance sheet for two months in two visits commencing in the second year of the project.
• 10 months of a pool of international experts to conduct training and provide the direction for the series of studies envisaged to be undertaken during the project's life span. The level of expertise and detailed terms of reference of the international consultants will be determined in the course of project implementation.
• Technical support services and technical backstopping by senior officers in statistics, food security, and policy from the FAO Regional Office, Bangkok and by technical officers in agricultural marketing, economics and statistics, FAO Rome:
• Three missions of technical support services for 3 weeks each by the RAP Senior Statistician, to provide technical inputs on specific subjects, such as: (i) reviewing the design of crop monitoring, (ii) data collection on prices and other aspects of marketing of major food items, (iii) analysis of crop forecasts from various sources, (iv) studies on stocks and post-harvest losses;
• Two missions for technical support services for two weeks each by the RAP Senior Policy Officer, to provide technical inputs in the preparation and implementation of the training programme on the use of information for policy analysis;
• One technical backstopping mission by the RAP Senior Food Security Officer to advise the project on data requirements for national food security, including crop situation and outlook and marketing of major food items;
• Occasional visits by technical officers in agricultural marketing and economic and statistics from HQs, as well as the FAO participation in the Tri-Partite Reviews.

Detailed terms of reference for the technical support services will be prepared during the implementation.

5.2.1.2. National Personnel and Consultants

The project will use national consultants, as and when required, subject to availability and technical skills; possible subjects are data processing, assessment of post-harvest losses, household stocks, industrial uses of agricultural outputs, food balance sheet, marketing statistics, and crop forecasting. A total of at least 50 man-months are envisioned. Their terms of reference will be prepared during project implementation.

In addition the project will reimburse the Government for the services of the following support staff which the Government will put at the disposal of the project to assist the international staff assigned to the project and to ensure smooth implementation of project activities:

• One administrative assistant,
• One interpreter/translator,
• Two drivers.

5.2.2. Duty Travel (in-country travel) and Missions

The project will provide for official travel within the country of international and national project staff, in support of project activities. In particular the Household Food Security Monitoring component of the project requires extensive travel to eventually cover all of the 50 provinces of the country.

The project will also provide for the costs of duty travel related to FAO technical support missions and of the travel related to the Tri-Partite Reviews to be undertaken by representatives of the Donor and FAO (RAP or Headquarters). These costs are included under the respective budget lines of section 11 of the budget.

5.2.3. Contracts

In order to support activities related to Immediate Objective Three: Household Food Security/Insecurity Monitoring, the budget will provide for contractual services at the national level, e.g. with national institutions or university to undertake studies and/or implementation of components of this system. This will cover the largest part of this budget line. Further contracts might be provided in support to other project activities. Providing contracts to national institutions is seen also as a means to build national capacity. In addition, special studies/activities that were not foreseen at the time of project formulation may arise as being necessary during project implementation and could be charged against this budget line.

Specific details are difficult to provide at the stage of project formulation but it is expected that most of the requirements will emerge during the first year of project activity. Proposals for required contractual services should be prepared during project implementation for inclusion in the periodic work plans at least on an (semi-) annual basis. The scheduled Tri-Partite Reviews will review such proposals and provide concurrence or otherwise.

5.2.4. General Operating Expenses

General operating expenses are provided to support field level data collection (partial); report preparation (including Terminal Report); communications; supplies; operation and maintenance of equipment and vehicles; reproduction of forms and documents, training manuals, etc and miscellaneous project expenditure.

Support for field data collection will be shared between the project and the Government, with the latter covering a larger proportion and increasing its support over the years. On the whole, the project will bear 35% of the costs (US$ 33,840), and the Government 65% (details in Annex 2 A). This sharing of costs for field data collection is in line with the recommendations made by the evaluation mission of the previous project GCP/RAS/.../... The remaining allocation of general operating expenses is to cover the specific project activities.

5.2.5. Equipment

5.2.5.1 Expendable Equipment

The project will provide for expendable equipment and supplies required in support of project activities.

5.2.5.2. Non-Expendable Equipment

The following existing equipment provided under the predecessor project (GCPS/RAS/../..) would continue to be used in the operation and management of FSIS activities supported by the present project:

Vehicles

• One Toyota Corolla, registration No.: 80NN 546 - 25
• One Toyota Land Cruiser, registration No.: 80NN 546 - 24

(These vehicles are at present being used by staff of the Department of Planning and Projections but shall be returned to be used within the framework of this project).

Computers

• One Compaq 586 Prolinea 5120, 32 M RAM, HDD 1 GB
• One Compaq 486, 16 M RAM, HDD 2.1 GB
• One Compaq 386, 16 M RAM, HDD 0.85 GB

Printers

• One Hewlett Packard, Laser 4 jet plus
• One Hewlett Packard, Laser 4L

(The FSIS Implementation Team is effectively using the computer equipment).

Communication equipment

• One Facsimile Panasonic (At present being used by the FSIS Implementation Team).

Additional equipment will be provided under the present project to support the expanded FSIS activities. These will include:

• 1 4WD vehicle;
• Computer systems (computers, printers, UPS, modems) for the Statistics Division (FSIU), National Institute of Nutrition and selected provinces, departments and/or institutions;
• Fax machines for key units involved in the project;
• 1 heavy duty photocopying machine;
• Equipment in support of training;
• Miscellaneous office equipment.

The details are specified in Annex 2 B.

5.2.6. Training (cost breakdown in Annex 2 B)

5.2.6.1. Fellowships

Nine months of fellowships in relevant subject matter areas such as sample surveys, data processing, food balance sheets, policy analysis, development planning, statistical operations and/or statistical forecasting. Fellowships to be arranged at Institutions within the Asia and Pacific Region.

5.2.6.2. Study Tour

A total of 16 weeks of study tours for senior and middle-level officers in selected countries in the Asia and Pacific Region to observe country practices in crop monitoring, forecasting, statistical analysis, nutrition surveillance, monitoring and evaluation and other related subject matters.

5.2.6.3. In-country Group Training

Series of in-country group training, workshops and seminars on sampling, statistical operations, analysis and data processing, food balance sheet, use and analysis of information for policy and planning, as well as basic training in computer operations, etc. for the national staff of MARD, province, district and commune officers of the departments of agriculture and rural development and other government institutions involved in food security. Supervision by provincial staff of the CMS field activities is part of the training and human resource enhancement component of the project.

5.2.7. Budget covering Donor's contribution

The project budget covering the donor's contribution is attached in Annex 5 A. Cost increases for the years 2 and 3 are covered in the individual budget lines, hence no general inflation factor is applied.

6.0. RISKS

The following risks are associated with the implementation of the project:

1. inadequate functioning of national coordination between, and within, national institutions;
2. unavailability of national staff to work on full time basis, as agreed;
3. inadequate technical level of staff;
4. language problems in the communication between the national and international staff associated with the project, particularly at the province and district level.

Risks under a) and b) must be considered to be medium. Under the predecessor food security project, active participation of staff members of the Department of Planning and Projections and of the Statistics Division could only be assured through the monthly payment of incentives by the project. The fact that Government has assumed responsibility for these payments and instituted them upon conclusion of the preceding project, provides a good example of its commitment to the FSIS. Risks under c) and d) have proved to be manageable through intensive training by the international staff and with the help of experienced interpreters/translators.

7.0 PRIOR OBLIGATIONS AND PREREQUISITES

7.1. Prior Obligations

The Department of Planning and Projections of MARD (implementing agency) will undertake the obligation to follow the FAO procedures for national execution. This involves that MARD will authorize the FAO country office in ... for project input mobilization and for the related accounting, disbursements and financial reporting.

7.2. Prerequisites

1. The Government will, apart from the contributions enlisted in kind, commit funds in cash in the appropriate national budget to cover the operational costs of FSIS (e.g. incentive payments, data transmission) in order to ensure a gradual take-over of all costs associated with the operation and management of FSIS during the lifetime of this project.
2. The Government will designate a National Project Director (NPD) and the required core staff immediately upon the signing of the project document.
3. The Government will make available adequate premises to locate national and international staff.

8.0. PROJECT REVIEWS, REPORTING AND EVALUATION

1. The National Project Director and the CTA/Senior Adviser shall prepare six-monthly progress reports to be submitted to the Government, FAO and the Donor.
2. The project will be subject to yearly Tri-Partite Reviews (TPR), i.e. joint reviews by the Government, Donor Agency and Executing Agency (FAO RAP or HQ). The first TPR shall be held within the first six months of the start of full implementation. The NPD, in concurrence with the CTA, shall prepare and submit to each TPR meeting a Project Performance Evaluation Report. The TPR will closely assess both the technical and operational aspects of the project and make recommendations accordingly. The costs of the TPR to be undertaken by representatives of the Donor and FAO (RAP or Headquarters) will be borne by the project.
3. An independent evaluation will be carried out about 6 months before the end of the project. The evaluation mission will be composed of representatives from the Government, Donor and FAO.
4. A draft project terminal report will be prepared by the NPD with the assistance of the consultant in agricultural statistics for consideration at the terminal TPR meeting. It shall be prepared sufficiently in advance to allow review and technical clearance by the Government and the Donor.

Annex 1 A

TERMS OF REFERENCE

Post Title:	Chief Technical Adviser / Senior Agricultural Statistician
Duty Station:	..., XXXX
Duration:	18 months
Qualifications:	Advanced university degree (MSc. or Ph.D.) in agricultural statistics or a related field with specialization in crop forecasting techniques. At least 10 years of progressively professional experience in the organization of agricultural statistical services, crop and market data collection and in data analysis for crop forecasting and food security. Working experiences in developing countries, especially in Asia and Pacific Countries. Advanced computer skills. Full working knowledge of English.
Duties:	Under the general supervision of the Chief, Operations Branch (RAPR), and with the guidance of the Senior Statistician, FAO RAP and other designated Technical and Operations Officers in FAO, the Chief Technical Adviser/Agricultural Statistician will assist the Ministry of Agriculture and Rural Development with the implementation of the Project Strengthening National Food Security and Information System. She/he will located in the Statistics Division, Department of Planning and Projection, MARD and work closely with the Project Implementation Team. Specifically, the expert will:

• Jointly with the project team, prepare a detailed and prioritized plan of work for the project based on the listed project outputs and activities, including travel and training schedule;
• Review with project staff the existing crop monitoring system;
• Assist in the development and implementation of methodologies for strengthening the system to allow a monitoring and forecasting at provincial level;
• Assist in the establishment of the Technical Working Group on Food Crop Forecasting;
• Review with project staff data on crop area and production from various sources with a view to evolving methodologies for forecasting crop production;
• Assist in the preparation of national forecasts for rice and maize production;
• Review with project staff the existing data collection on marketing of main food items and design and implement improved system;
• Advise on preparation of articles on production and market information for inclusion in the "Food Crop Situation and Outlook" bulletins;
• Prepare technical documents/materials and manuals on crop monitoring and forecasting;
• Train national staff in crop monitoring system and forecasting and in analysis of related data;
• Assist in the management of the project, including administrative and financial matters;
• Prepare with project staff the terms of reference for national consultants, paying due consideration to their training experience;
• Assist in the selection of equipment such as computers to be purchased for the project;
• Prepare project progress reports as required;
• Prepare material for inclusion in the draft terminal report of the project;
• Prepare a detailed end-of-assignment report describing the work undertaken, progress towards achieving assignment objectives, and with conclusions and recommendations.

Annex 1 B

TERMS OF REFERENCE

Post Title:	International Consultant in Agricultural Statistics
Duty Station:	..., XXXX
Duration:	6 months in two missions
Qualifications:	Advanced university degree (MSc. or Ph.D.) in agricultural statistics or a related field with specialization in crop forecasting techniques. At least 10 years of progressively professional experience in the organization of agricultural statistical services, surveys and in data analysis for crop forecasting. Working experiences in developing countries, especially in Asia and Pacific Countries. Advanced computer skills. Working knowledge of English.
Duties:	Under the general supervision of the Chief, Operations Branch (RAPR), and with the guidance of the Senior Statistician, FAO RAP and other designated Technical and Operations Officers in FAO, the Consultant in Agricultural Statistician will assist the Ministry of Agriculture and Rural Development with the implementation of the Project Strengthening National Food Security and Information System. She/he will be located in the Statistics Division, Department of Planning and Projection, MARD and work closely with the Project Implementation Team. Specifically, the consultant will:

First mission 4 months:

• Review the progress of the project since the departure of the expert;
• Revise as necessary plan of work, including travel and training schedule, for the project;
• Assist in the preparation of articles on production and market information for inclusion in the "Food Crop Situation and Outlook" bulletins;
• Review/revise as necessary, project manuals, technical documents/materials;
• Provide on-the-job training as required;
• Assist in the management of the project, including administrative and financial matters;
• Assist in the organization of, and participate in the national workshop,
• Prepare project progress reports as required;
• Prepare a detailed end-of-assignment report describing the work undertaken, progress towards achieving assignment objectives, and with conclusions and recommendations.

Second mission 2 months:

• Review the progress of the project since last mission;
• Assist in the management of the project, including administrative and financial matters;
• Provide on-the-job training as required;
• Review/revise as necessary for finalization, project manuals, technical documents/materials;
• Prepare a draft Project Terminal Statement;
• Prepare a detailed end-of-assignment report an account of the work undertaken, progress towards achieving assignment objectives, and with conclusions and recommendations.

Annex 1 C

TERMS OF REFERENCE

Post Title:	International Consultant in Food Balance Sheets
Duty Station:	..., XXXX
Duration :	2 months in two missions of 1 month each
Qualifications :	University degree in statistics, nutrition or economics with broad training in statistics. Experiences in analysis of socio-economic data including food production and consumption data and the preparation of food balance sheets. Working knowledge of English. Familiar with microcomputer applications.
Duties :	Under the general supervision of the Chief, Operations Branch (RAPR), and with the guidance of the Senior Statistician, FAO RAP and other designated Technical and Operations Officers in FAO, the Consultant in Food Balance Sheets will assist the Ministry of Agriculture and Rural Development with the implementation of the Project Strengthening National Food Security and Information System and in particular with the compilation and use of food balance sheet for food security programme. She/he will be located in the Statistics Division, Department of Planning and Projection, MARD and work closely with the Project Implementation Team and the Chief Technical Adviser/Agricultural Statistician. Specifically, the consultant will:

• Review existing data sources useful for the compilation of national food balance sheets;
• Prepare technical documents for, and assist in, the conduct of a workshop on food balance sheets;
• Assist in the compilation of food balance sheets;
• Provide on-the-job training to national staff in the operational use of food balance sheets;
• Prepare a detailed end-of-assignment report with an account of work undertaken and with conclusions and recommendations for further work.

Annex 2 A

XXXX National Food Security Information System

Operational Costs of Field Data Collection

Calculation Basis:

Provincial Agricultural Officers	100,000 Local currency/month
District Agricultural Officers	30,000 Local currency/month
Commune Statisticians	20,000 Local currency/month

First year (2000)

			Monthly		Year
1. Continuation of present data
	collection activities
	1.1 PAOs (61)		6,100,000		73,200,000
	1.2 DAOs (130)		3,900,000		46,800,000
	1.3 CSs (230)		4,600,000		55,200,000
	1.4 Data Transmission		700,000		8,400,000
	Sub-total		15,300,000		183,600,000
2. CMS expanded to 10 Provinces (On average, there are 9 districts and 165 communes per province)
	DAOs (45)	1,350,000		16,200,000
	CSs (330)	6,600,000		70,200,000
	Data Transmission	250,000		1,800,000
	Sub-total	8,200,000		98,200,000
	Total	23,500,000		282,000,000
	Government	15,300,000 (65%)		183,600,000 (65%)
	US$	1,180		14,160
	Project	8,200,000 (35%)		98,400,000(35%)
	US$	630		7,560

Second year (2001)

		Monthly	Year
1. Continuation of 1999 data
	collection activities	23,500,000	282,000,000
	Inflation factor 8%	1,880,000	22,560,000
	Sub-total	25,380,000	304,560,000
2. MS expanded by additional 25 provinces
	DAOs (90)	2,916,000	34,992,000
	CSs (825)	18,150,000	217,800,000
	Data Transmission	1,500,000	18,000,000
	Sub-total	22,566,000	270,792,000
	Total	47,946,000	575,352,000
	Government	26,000,000 (54%)	312,000,000 (54%)
	US$	2,000	24,000
	Project	21,946,000 (46%)	263,352,000 (46%)
	US$	1,690	20,280

Third year (2002)

	Monthly	Year
CMS expanded to all provinces (61)
CSs (500 at 23,000 per month)	11,500,000	138,000,000
DAOs (300 at 35,000 per month)	10,500,000	126,000,000
PAOs (61 at 120,000 per month)	7,320,000	87,840,000
Data Transmission	2,000,000	24,000,000
Total	31,320,000	375,840,000
Government	25,056,000 (80%)	300,672,000 (80%)
US$	1,950	23,400
Project	6,264,000 (20%)	75,168,000 (20%)
US$	500	6,000
Summary:	Total Operational Costs of Field Data Collection in US$ (2000-2002)
	Government	61,560 (65%)
	Project	33,840 (35%)
	Total	95,400

Annex 2 B

XXXX National Food Security Information System

1) Specification Of Non-Expendable Equipment

1 Vehicle 4WD	$ 25,000
Computer Systems (units for Dept. Of Planning, Statistics, Dept. Of Policy, NIN, Regional Offices, Selected Provinces) (at least 70-75 units @ $ 2000)	150,000
Fax machines (Statistics, Planning, Policy, NIN, Regions)*	12,000
Heavy Duty photocopy machine (statistics)	5,000
Equipment for training	10,000
Miscellaneous equipment	8,000
Total	$ 210,000

* A number of fax machines are required to facilitate exchange of communications among key units involved in the project. It is assumed that e-mail/internet services in some regions/provinces may not yet be operating. The precise number is to be determined at the start of the project.

2) Specification of Fellowships and Training

Tentative configuration and costs breakdown for the Training Component of the project.

Fellowships (a total of 9 months @ $6000)	= $ 54,000
Study Tour (a total of 16 weeks @ $1500)	= 24,000
Province/Regional group training (20 sessions @ $2000	= 40,000
National level group training and on-the-job training (10 @ $5000)	= 50,000
National workshops (4 workshops @ $4000)	= 16,000
Total	$ 184,000

A detailed training schedule will be prepared on an annual basis along with the project work plan for review/concurrence of the Tri-Partite Review mission during the first year of project implementation.