(TCP PROJECT EXAMPLE)

 

Country:

X

Project Title:

Agricultural Policy Assistance

Project Number:

TCP/XXX/____

Starting Date:

month/year

Completion Date:

month/year

Government Ministry responsible for project execution:

Ministry of __________

FAO Contribution:

US$347,000

Signed: __________

Signed: __________

(on behalf of Government)

Jacques Diouf
Director-General
(on behalf of FAO)

Date of Signature: __________

Date of Signature: __________

 

I. PROJECT SUMMARY

Country X has extremely limited/moderate/large arable land per inhabitant and a low/enough/large capacity to produce _____. Currently, food imports satisfy _____% of the population's needs. The country benefits of favorable conditions for producing quality _____ The economic turmoil and the socio-political crisis during transition, coupled with natural calamities (if any) severely affected the overall country's economy. Due to emergent priorities, the agricultural sector was particularly neglected. The current small private farming systems (with very small and fragmented land) are not economically viable and the food industry lost the important capacity it used to have before the transition towards a private and liberal economy. The food and agricultural development is constrained by inadequate land markets, poor financial infrastructure, underdeveloped agro-marketing systems, inadequate agricultural institutions and services to farmers (name others).

The objective is to assist the Government of Country X in formulating a coherent strategy for the development of the agriculture and food sector consistent with sustainable economic development and inclusive of prioritized investment needs.

To achieve this, the project will provide for the services of 2 international experts (5 p/m), 2 FAO Partnership Programme consultants (3 p/m), 1 national consultant (7.5 p/m) and FAO Advisory and Supervisory Technical Services (6 p/m). In addition, the project will provide for official travel, contracts, materials and supplies, equipment, training and general as well as direct operating costs.

As a result, it is expected that the Government's capacity to develop the agriculture sector will have been strengthened.


II. BACKGROUND AND JUSTIFICATION

Country description
Country X is a country with a population of _____ million inhabitants. It is bordered by Country Y to the north, Country Z in the east, Country W to the south and Country Q in the west. The country covers an area of _____ thousand square kilometers. About _____ of the area is agricultural land comprising _____ ha of arable land, _____ ha of perennials, _____ ha of hay producing pastures and _____ ha of natural mountain pastures. Cultivated land varies between _____ and _____ meters above sea level. Agriculture is highly dependent on irrigation and _____ of the total arable and perennial-cropped areas is irrigated.

With _____ ha of agricultural land per inhabitant, the agricultural resource base of the Country X is among the lowest/average/highest in Europe. In country X imported food currently satisfies almost _____ percent of the country's total food requirements. The main imports are _____. The country used to export significant quantities of _____ to the _____. Since transition to market economy, the export surplus for _____ has significantly/moderately fallen/increase.

Over the last ten years the country's economy has been profoundly affected by a series of dramatic changes. The country embarked upon a comprehensive programme of macroeconomic stabilization and structural reform in (indicate the year). Major reforms are being progressively implemented and full recovery of the whole economy will take time.

The collapse of the country's industries, the restructuring of which is progressing slowly, and the protracted economic hardship, have put a heavy burden on the agriculture and food sector (hereafter referred to as the agro-food sector). The agro-food sector has assumed a prominent labor and food generation buffer role in the economy. Accordingly, the labor force engaged in agriculture jumped from _____ percent of the active population in the late 1980s to over _____ percent in (indicate the year). However, the contraction in the real incomes of the population, which commenced in (indicate the year) and has not yet recovered, has had a depressive affect on the domestic demand for agriculture and food products.

As a result of land reform, the bulk of agricultural output is produced on (give the number) _____ small private farms which have an average area of _____ ha. In addition to their very small size, farms are fragmented with an average of _____ to _____ parcels per farm. While the family farm provides a dynamic basis for the agricultural economy, it has the disadvantage of being too small to benefit from economies of scale. Establishment of a land market and land consolidation will be of primary importance to achieving more efficient levels of production. The legal framework for the functioning of a land market is considered appropriate in its main lines. Priority is currently given to land titling and registration which are planned to be completed in _____ (indicate the year). The World Bank supports the development of a land cadastre and the European Union (EU) the distribution of land titles.

A significant constraint to the development of production and the emergence of efficient commercial farms is the presently under-developed rural finance infrastructure. In the aftermath of land privatization, farmers have been left with a total absence of credit availability since the commercial banks had no interest, nor appropriate skills, to deal with the agricultural sector. There are several institutional experiments ongoing in the sector, including _____. Although these efforts already bear fruit, only a small number of farmers and marketing and agro-processing operations are being reached.

The former state monopolies for input supply and marketing of agricultural produce have experienced a dramatic shrinkage of their activity which has turned them into marginal operators. However, the private sector has not yet been able to fill the vacuum left by the state entities. Such marketing forms as private intermediaries, farmers' associations and contracts with the processing industry are only beginning to emerge. Market infrastructure (assembly markets, wholesales markets) is grossly inadequate. The current inefficiencies of agro-marketing must be addressed before food security in the country can be realized.

Reforms have already profoundly transformed agricultural institutions, especially support services to agriculture. The Extension Service in the country X, directed to the needs of private farmers, was created in _____(indicate the year) with the support of (indicate the foreign agency, if any). The Ministry of Agriculture (MOA) went through a phase of re-organization, which was completed/is not completed, as yet. Beyond the MOA, a review of the governmental institutions intervening in the agro-food sector would be justified in order to prevent overlap of responsibilities and to streamline and coordinate their activities.

The food industry had a major/moderate/minor role in the production and export of food products before transition. However, the food-processing sector developed under conditions in the centrally planned economy context which no longer exist. The privatization of the food industry started in _____ (indicate the year) and has yet to be completed (has been completed).

Similar to other industrial sectors, agro-processing enterprises have been privatized without paying due attention to restructuring. State-owned or privatized enterprises have been maintained for full-capacity on the expectation that they could return to their previous levels of operation, leaving aside the fact that a significant share of the previous output would not find markets under present circumstances. Therefore, most enterprises operate at very low/low levels of their capacity usually between _____ and _____ percent. Restructuring of the food industry is an outstanding issue which will not be solved until liquidation and bankruptcy provisions are strictly enforced. Credit demand for fixed investments and working capital is high but is being satisfied only to a limited extent. Thee profitability of food processing activities is, hence, impeded by the limited availability of medium- and long-term loans and the high short-term interest rates. Foreign direct investment (FDI) has been very low/low/satisfactorily and only recently involved in privatization.

Agricultural policies have been overhauled since the country's transition to market economy. Agricultural and food prices have been liberalized and most subsidies have been abolished. State channels for agricultural marketing and procurement operate on a very small share of agro-food output. International trade has been liberalized and the country has adopted a liberal import policy on agriculture with duties of _____ or _____ percent, thereby acknowledging a strong dependence on external markets for agro-food supply. The major support measures to agriculture are _____ land/income tax exemptions, subsidies for irrigation water/inputs and subsidized loans, etc. The country X applied formally for accession to World Trade Organization (WTO) in _____/is WTO member since _____ (indicate the year).

Current governmental intervention in the agricultural sector relies heavily on international support (Annex I), especially the World Bank and the EU (or others).

Rationale and Justification for FAO Assistance

There is a complex set of factors constraining the recovery and development of agricultural production in country X. The under-development of the agro-marketing infrastructure is a major constraint to increasing agricultural production. For this reason the food sector will be considered as an integral part of the agriculture sector in the conduct of the proposed policy Project. Country X is well positioned to capitalize on a number of opportunities to develop its agro-food sector into a dynamic internationally competitive activity which will have an important role in the economic development. It will be imperative, though, that resources are allocated to subsectors where country X has a comparative advantage, particularly in _____ production.

Since the 1990s, emergency measures have received prominent attention while the design of a consistent framework for agricultural policy has been neglected. Quite understandably Government's limited resources have been heavily involved in solving the economic crisis and ensure national food security. As the most difficult times are now over, it is necessary to further develop and reinforce, without undue delay, a framework against which medium- to long-term commitments can be made for funding a sustainable recovery and development of the agro-food sector. An agricultural strategy needs to be envisaged in the context of achieving sustainability, i.e. taking into consideration that donors' support to agriculture will be phased out in the medium term. In addition, the design of agricultural policies and strategies will have to comply with country's commitments to the WTO. This will have a major bearing on the policy objectives for the development of the agro-food sector. In order to achieve full transition and recovery of the agro-food sector, a number of policy measures are still required.

The Government's intentions for agricultural policy reform over the short to medium term were articulated in the MOA programme which provides a comprehensive overview of the main constraints to agro-food development. It focuses on short and medium term, where food security is considered, the strategic objective of the programme and heavy emphasis is placed on physical production targets. Food security is, however, not understood as self-sufficiency. While the MOA programme document has been accepted in principle by the Government, it is recognized that it is a first step in the process of formulating a long-term strategy for agricultural development and that it has the following limitations:

- No mention is made of the role of agriculture within the macro-economy in the long term;
- It focuses on short- and medium-term considerations and no attention is given to the long term;
- It does not elaborate on the agricultural policies that need to be implemented to achieve the strategy goals;
- Heavy reliance is placed on external financing of the proposed investment programme;
- No details or justifications are provided on the investment programme;
- No consideration is given to the sustainability of the programme; and
- It does not include any prioritization or sequencing of the proposed measures.
- (name other shortcomings).

Wider consultation and debate within the MOA and with other stakeholders is necessary and there remains an urgent need to synthesize the concepts into a coherent strategy framework over the medium to long term. In particular there remains a need to (i) define in consultation with the MOA, the Prime Minister's Office, as well as the Ministry of Finance and the Ministry of Trade, the policy objectives for the development of the agro-food sector and (ii) to clearly delineate, through wide consultation with the sector's stakeholders, strategies through which policy objectives can be cost-effectively realized. It will be imperative that the proposed Project is carried out in close coordination with on-going activities in the MOA as well as the other donor agencies associated with the agro-food sector.

In recognition of the limited capacity for policy and strategy formulation under a market-driven economy within the MOA, the Government has requested FAO to provide technical assistance to enable it to complete an in-depth review of the agro-food sector and to help it formulate a coherent strategy for its sustainable development and determine priority investment needs. The project assistance will build upon the MOA current programme by addressing its shortcomings and facilitating its implementation.


III. OBJECTIVES OF THE ASSISTANCE

The objective is to assist the Government of X in formulating a coherent strategy for the development of the agriculture and food sector consistent with sustainable economic development and inclusive of prioritized investment needs.


IV. PROJECT OUTPUTS (RESULTS)

Project activities are expected to result in the preparation of:

- Six technical documents pointing out potentials and constraints of agricultural recovery and development in the following fields:
- Macroeconomic framework for agricultural policy
- Rural finance
- Agricultural marketing and agro-processing
- Crop production, including fruit and vegetable production
- Livestock production
- Agricultural Institutions and Support Services

- One Main Report presenting a proposal of a synthesized coherent strategy for sustainable development of the agricultural sector including its implications with respect to priority policy actions and investment needs.


V. WORK PLAN

The Project will undertake an in-depth review of the recovery of the agro-food sector leading to a coherent and realistic programme of development activities which should complement the MOA programme. The Project will seek to clarify Government's objectives of the agro-food sector. Building on the policy documents already approved by the Government and pilot development initiatives that are underway, the Project will identify the measures for the short, medium and longer term which will help overcome the problems in the agro-food sector. It will pay particular attention to food security and marketing issues, as well as Government's intention to join the WTO/commitments under the WTO rules.

The overall policy environment (fiscal, price and trade) will be assessed as well as the agro-food sector institutional situation, both in terms of its organization and capacity. In addition, the current macroeconomic situation, particularly with respect to its impact on the agro-food sector, will be reviewed and the economic efficiency and comparative advantage of the different farm production options will be analyzed. Existing constraints and issues of agro-food development will be analyzed in-depth and the sector's potentialities identified. Within this framework, policy actions will be determined for the short, medium and long term, the elements of a coherent long-term strategy for the agro-food sector will be formulated and priority areas for investment in the sector will be drawn. The objectives will be achieved with the support of a multi-disciplinary technical assistance team.

The Project will consist of the following components, which will be largely implemented through the Working Groups in which national and international experts will work closely together:
(i) A stock-taking of the state of natural resources, agriculture and the rural economy, as well as of the current situation in each of the main agricultural subsectors;
(ii) An assessment of the main opportunities for development and identification of the main constraints;
(iii) A review of policies and proposals of development strategies; and
(iv) The identification of specific investment and technical assistance interventions which would constitute a coherent and realistic programme of sectoral development activities.

Project Organization and Management

The Project will be carried out by the Government of Country X, with the assistance of a multi-disciplinary team of national and international consultants and FAO/ATS experts working in close relationship with the MOA.

In order to reach as large a consensus as possible, the Project will have to involve the main institutions and stakeholders interested in the development of the agriculture and food sector. Consultation and participation of the sector's stakeholders will be achieved through the formation of Working Groups and through the use of workshops to openly discuss the findings of the experts. The main participants would be the MOA, Ministry of Finance, Ministry of Trade, farmer organizations, private sector agricultural marketing and agro-processing representatives, NGOs and the donor community. The MOA will therefore appoint a Steering Committee which will meet under the chairmanship of the Minister of Agriculture and include representation from the main interested national institutions, to guide the exercise, monitor its progress and draw conclusions from its recommendations. The Government will nominate a Project Focal Point (Terms of Reference in Annex XI) who will be responsible for integrating and coordinating the Project within the MOA. A National Team Leader will be recruited for the Project (Terms of Reference in Annex X).

To ensure active and constructive local participation, six Working Groups will be formed. They will consist of National Experts and International and FAO/ATS Experts working together on the following topics:
- Macroeconomic framework for agricultural policy
- Rural finance
- Agricultural marketing and agro-processing
- Crop production, including fruit and vegetable production
- Livestock production
- Agricultural Institutions and Support Services

Each Working Group will gather up to five specialists in the relevant field of work and will be assigned a coordinator who will be responsible for the finalization of the Working Paper.

The international and FAO/ATS experts will:
- Assist the project team in defining broad objectives for the strategy and identifying the corresponding issues to be addressed by the Working Groups;
- Assist the Working Groups in preparing the methodologies implemented for their analyses;
- Provide on-going guidance to the Working Groups as necessary;
- Review and comment on the reports and analyses prepared by the Working Groups;
- Conduct further independent analysis of the economic implications of the measures recommended by the Working Groups; and any other policy responses which they consider to be consistent with the objectives of the strategy.

Time schedule (detailed work and assignment plans are provided under Annex II).

The Project will consist of three main phases:

Phase I: Inception of the Project (month 1)

The Government will nominate the Project Focal Point within MOA. Action will be initiated for the formal establishment of a Project Steering Committee. Initial steps for the recruitment of the National Team Leader will be taken.

The Project Team Leader, the Backstopping Officer and the international and FAO/ATS experts will undertake an inception mission to set up the project office, recruit, with the agreement of the MOA, the National Experts and the National Team Leader and organize an Inception Seminar. The seminar will introduce the project objectives, set-up and planning, initiate activities of the Working Groups, discuss the main objectives of a Strategy for Sustainable Agricultural Development in Country X. All parties involved will attend the seminar.

The Project Team Leader, the backstopping officer and the international and FAO/ATS experts will prepare detailed Terms of Reference for the individuals recruited for the Working Groups and brief them on analytical methods and field work required for their activity and provide training where necessary.

Phase II: Investigative work and preparation of technical documents (months 1 to 7)

Desk and field investigative work will be carried out by the Working Groups, with support from the international and FAO/ATS experts, over a period which should not exceed three months. Data and information necessary for the exercise will be collected, the main constraints to agricultural development will be identified and preliminary recommendations will be indicated. A Working Monitoring Seminar will be organized at approximately mid-course of the activity of the Working Groups in order to assess work progress and address any difficulty. The Backstopping Officer will attend the seminar and act as resource person.

Working Papers produced by the Working Groups will be send to the international and FAO/ATS experts at their home station for review prior to their second mission to Country X. The papers will be presented and reviewed at a Mid-Term Review Workshop. Preliminary recommendations will be discussed and clarified, objectives of the agricultural strategy will be refined and areas of further work identified. The workshop will be attended by the whole Project Team, Government officials and concerned stakeholders.

On the basis of the workshop's conclusions and further field investigative work, the international and FAO/ATS experts will prepare technical reports in which economic implications of the recommendations prepared by the Working Groups will be addressed and further analysis will be provided when considered appropriate. Technical reports will be delivered within four weeks following the mission of the international and FAO/ATS experts.

Phase III: Formulation of the strategy (months 7 to 11)

On the basis of the technical reports and other analytical work carried out during the Project, a draft Strategy for Sustainable Agricultural Development in Country X will be drafted by the Project Team Leader, in close collaboration with the National Team Leader and other key national staff. The Government will present and discuss the draft strategy at a National Workshop to a wide audience: MOA and other relevant ministries, donor community, NGOs and representatives of producer, processor and consumer associations. Relevant considerations will be included in the final document.

Training Activities

On-the-job training to Government and other participating stakeholders will be provided during the Inception Seminar and the Working Monitoring Seminar.

Two workshops will be organized during the Project in order to ensure broad consultation and consensus on strategy formulation:

- A two-day Review Workshop will be organized at the end of the investigative activity of the Working Groups with the following objectives:
i) To review in-depth the main results of the activity of the Working Groups, discuss the preliminary recommendations for solving constraints to potential agricultural development;
ii) To identify further necessary investigative work;
iii) To refine the objectives of the Strategy for Sustainable Agricultural Development;
iv) To assess the consistency of conclusions and recommendations of the different Working Groups and work out the main components of the agricultural strategy.

- A two-day National Workshop will be organized towards the completion of the Project where the main elements of the proposed Strategy for Sustainable Agricultural Development will be presented and widely debated. The objective will be to obtain feedback from a broad range of interested parties before finalization of the strategy document. The workshop will be attended by the main stakeholders interested in agricultural development: government officials, public administrations, donor agencies, NGOs and a cross-section of private entrepreneurs and economic associations from primary agricultural production, food processing and trade companies.


VI. CAPACITY BUILDING

The Project will contribute to national capacity building through close working relationship between national professionals and the international and FAO/ATS experts. In order to facilitate dissemination of knowledge and expertise in such areas as agricultural policy issues, assessment of comparative advantages, functioning of agricultural and input markets, rural financing, agricultural institutions in a market economy, the basic analytical work will be undertaken within Working Groups embracing a specific field of expertise.

It is envisaged that two workshops will be held during the Project where all stakeholders will have an opportunity to familiarize themselves with the methodology applied in the studies, the main analytical results and the policy implications.


VII. INPUTS TO BE PROVIDED BY FAO

Personnel

- One International Consultant, Senior Policy Adviser/Team Leader, 14 person/weeks in three missions (Terms of Reference in Annex III)

- One FAO/ATS, Sector Economist, six person/weeks in three missions (Terms of Reference in Annex IV)

- One FAO/ATS, Rural Finance Specialist, six person/weeks in two missions (Terms of Reference in Annex V)

- One International Consultant, Marketing and Agro-processing Specialist, six person/weeks in two missions (Terms of Reference in Annex VI)

- One Retired/Partnership Programme Crop Specialist, six person/weeks in two missions (Terms of Reference in Annex VII)

- One FAO/ATS, Livestock Specialist, six person/weeks in two missions (Terms of Reference in Annex VIII)

- One TCCT consultant, Agricultural Institutions and Administration Specialist, six person/weeks in two missions (Terms of Reference in Annex IX)

- One National Team Leader, Agricultural Economist, 7.5 months, in two periods (gross salary of US$1,200/month) (Terms of Reference in Annex X)

- Technical Backstopping from SEUP, four missions for a total of 42 days (Terms of Reference in Annex XII).

Official Travel - up to US$10,000
A budgetary provision is made to cover the internal travel costs and DSA of project personnel during the agricultural sector strategy field investigations, up to US$10,000.

Contracts - up to US$41,000
In order to achieve objectives specified in the project document, the national expert specialists in the areas of: sector economics; rural finance; marketing and agro-processing; crop production; livestock production; and agricultural institutions, will be directly involved in the preparation of the agricultural sector strategy. As members of the Working Groups, they will carry out basic analytical work and will provide international FAO/ATS experts with the necessary data, analysis, position papers and reports relating to the area of expertise, act as resource persons and facilitate contacts with other parties not directly involved in project implementation. It is envisaged that the time input required for completion of the above-mentioned tasks should not exceed five person/months or US$6,000 per Working Group. An additional letter of agreement will be signed with a national institution to carry out micro-economic data collection. The cost of this activity should not exceed US$5,000.

Up to seven author's contracts / letters of agreement will be signed with national experts and/or different institutions for a total which should not exceed US$41,000. Terms of Reference for the Working Groups have been provided in Annex XIII.

The participation of the national experts in the preparation of the strategy will be assured through contracting of selected national institutions and individuals, to be identified by the Project Team Leader and the Backstopping Officer during the Project's Inception Mission.

General Operating Expenses - up to US$14,947

General Operating Expenses for miscellaneous expenditures in-country required for operating the Project will be up to US$14,497:

- Telephone communications, photocopying and publication of reports US$1,500
- Translation of various national materials and documents from national language into English and English into Country X, US$6,000
- English language editing of final technical papers and project documents, US$2,500
- Provision for car renting for field investigation (100 car/days x US$20/day), US$2,000
- Provision for interpreting (30 days x US$60/day), US$1,800
- US$1,000 for the terminal report; and
- Other miscellaneous.

Materials and supplies - up to US$4,000

The cost of material and supplies will be up to US$4,000 for the purchase of various reports and documents, as necessary.

Equipment - up to US$9,900

The cost of equipment will be up to US$9,900, for two PCs, two printers, one modem, software package, one-year Internet access, one photocopier, one phone/fax. The provision of two PCs and one photocopier are made highly necessary by the limited equipment of the MOA. The equipment will be located at the MOA in the office of the project and will be at full disposition of the project team. Itemized cost details for equipment are given in Annex XIV.

Direct Operating Expenses- up to US$20,000

Direct expenses at FAO Headquarters connected with the implementation of the Project, up to US$20,000.

Training - up to US$9,640

The total cost for in-country training is up to US$9,640 for:

- Two workshops will be organized as follows: Mid-Term Review Workshop (approx. 30 participants, up to five days, in the Country X's capital town) and National Workshop (approx. 50 participants, two days, outside Country X's capital town); and

- FAO will cover conference facilities costs (including interpretation), travel expenses, board and lodging of participants in the above-mentioned workshops. See Annex XV for cost details.


VIII. REPORTING

Under the guidance of an international and FAO/ATS expert, Working Groups will prepare working papers and other documentation in consultation with their respective Working Groups, which will be translated into English.

Each international or FAO/ATS expert will prepare a technical report upon completion of his/her assignment, covering findings, conclusions and recommendations. The Main Report will be submitted in English and will be translated into Country X's official language both in draft and in final form. Working Papers will remain in English.

The Project Team Leader, in close collaboration with the Backstopping Officer, the National Team Leader and other national counterparts, will prepare a draft Main Report presenting a "Strategy for Sustainable Agricultural Development in Country X". This document will incorporate the key points to emerge from the reports by the Working Groups and the international and FAO/ATS experts. The draft Main Report will be reviewed by FAO before it is dispatched to Government. The National Team Leader, the Project Team Leader and the FAO Backstopping Officer, will subsequently present the draft strategy to the National Workshop convened by the Government and incorporate recommendations for change emanating from this and endorsed by the Government. The final document will be translated into national language prior to its official submission to the Government.

At the end of the Project, the Project Team Leader, in close collaboration with the National Team Leader, will prepare a draft Terminal Statement in accordance with TCP procedures, for finalization at FAO and submission to the Government. The National Team Leader will be responsible for arranging timely translation of the draft main report and the terminal main report.


IX. GOVERNMENT CONTRIBUTION AND SUPPORTING ARRANGEMENTS

The executing agency on behalf of the Government will be the MOA. The Government will ensure, through MOA, the following facilities and services:

- Assign a Project Focal Point (Terms of Reference in Annex X) and a team of qualified counterparts for the duration of the Project.

- Provide office accommodation and facilities for the Project in the main building of the MOA;

- The Government will nominate the members of the Project Steering Committee (PSC) and through PSC will ensure adequate participation in the agricultural sector strategy study of the key institutions concerned with agricultural development. This is considered to be a necessary precondition for the enhancement of inter-institutional policy dialogue and for the achievement of the Project's capacity-building goals.

- Finally, the Government will provide any other contribution in terms of persons, equipment and materials needed for the successful implementation of the Project.

The Project will begin its activities once the Project Focal Point is appointed.

 

PROJECT BUDGET COVERING FAO INPUTS
(in US$)

Country: X

Project Title: Agricultural Policy Assistance

Project Number: TCP/XXX/_____

1100

International consultants

 

78,226

1200

FAO Advisory Technical Services

 

79,208

1700

National Consultant

 

9 000

1800

TCCT/Retired consultant

 

25,228

1900

Supervisory Technical Services

 

45,851

 

1910 Standard Supervisory Technical Services

11,750

 

 

1920 Supervisory Functions of LTU

1,755

 

 

1930 Field missions

31,346

 

 

1950 Evaluation

1,000

 

 

Personnel

 

237,513

 

 

 

 

2000

Official Travel

 

10,000

3000

Contracts

 

41,000

4000

General Operating Expenses (including US$1 000 for project report)

 

14,947

5000

Materials and Supplies

 

4,000

6000

Equipment

 

9,900

7000

Direct Operating Expenses

 

20,000

8000

Training

 

9,640

 

Total

 

347,000


ANNEX I

Donor Support to the Agriculture Sector during Transition to a Market Economy


Support to the agricultural sector has been provided by various donor agencies:

- The World Bank
- USAID
- European Union (EU)
- UNDP
- FAO
- IFAD
- Other development agencies and multilateral and bilateral donors, NGOs, Foundations, etc.

 

ANNEX II: PROJECT ACTIVITY PLAN

ANNEX II (continued): PROJECT ASSIGNMENT PLAN

ANNEX III: TERMS OF REFERENCE

Project Team Leader - Economist
(14 person/weeks in 3 missions)

Under the supervision of the Chief, TCOC, the technical guidance of the Chief of the Policy Assistance Branch (REUP), in cooperation with other concerned FAO technical divisions and in close collaboration with representatives of Government, especially members of the Steering Committee, with team members and with other sponsoring agencies, the consultant will conduct three missions in Country X which will coincide with the Inception Mission (three weeks), the Mid-Term Review Seminar (three weeks) and the National Workshop (one week). The consultant will carry out the following specific tasks:

- Participate, with the backstopping officer, the National Team Leader and the international experts, in the drafting of the detailed Terms of Reference for the Working Groups;
- Plan and coordinate, in collaboration with the National Team Leader and the Project Focal Point, the team's activities and serve as primary point of contact with Government and other national agencies;
- Ensure a continual interchange between team members on cross-cutting issues in order to ensure consistency in analyses and recommendations;
- Serve as facilitator in the workshops;
- Maintain contacts with the donors (bilateral, multilateral) and arrange for collaboration in the collection of data and in the implementation of workshops wherever feasible.
- Develop criteria for the setting of investment priorities and work with team members to ensure a fit between technical proposals and the institutional and budgetary environment;
- On the basis of the analysis undertaken, propose a specific strategy and elaborate concrete recommendations for policy makers to follow in order to reach the objective of sustainable agricultural development (including budgetary consequences of the proposed actions), and assist in presenting this strategy at the Final Workshop of the Project;
- Following the National Workshop, prepare a final report which will present the revised and finalized strategy;
- Prepare a Project Terminal Statement in accordance with TCP procedures.

The Project Team Leader will also participate in the work of the Team in his/her own field of specialization. He/she will provide special guidance and supervision to the Sector Economist, examining the macroeconomic environment and national economic policies and evaluating their likely impact on the agro-food sector performance in terms of production promotion, social equity and the sustainable use of natural resources. The consultant will also pay attention to the demographic conditions in rural areas, including recent migration flows, and their impacts on current and future agricultural developments.

Qualifications and Experience
The consultant will be an agricultural economist with long and extensive experience in agricultural policy analysis and investment project identification. He/she would have successfully led large multi-disciplinary teams on similar studies and have demonstrated a capacity to integrate the findings and recommendations of specialists from various disciplines into a coherent set of proposals.


ANNEX IV: TERMS OF REFERENCE

Advisory Technical Services
Sector Economist
(6 person/weeks in 3 missions)

Under the supervision of the Chief, TCOC, the technical guidance of the Chief of the Policy Assistance Branch (REUP), under the direct supervision of the Project Team Leader and, in close collaboration with the Working Group on Macroeconomic Framework for Agricultural Policy, the other international and national team members, in particular the Rural Finance Specialists and the Marketing and Agro-processing, International Specialists and, in consultation with staff of concerned national institutions (both public and private) and farmer organizations, the sector economist will conduct three missions which will coincide with the Inception Mission (two weeks), the Mid-Term Review Workshop (two weeks) and the National Workshop (one week). The officer will carry out the following tasks:

- Draft, with the Project Team Leader, the detailed Terms of Reference for the Macroeconomic Framework for Agricultural Policy Working Group;
- Advise on the methodologies to be used in the activity of the working group and provide relevant training concerning PAM analysis and data collection;
- Assist with the preliminary definition of strategy objectives;
- Review current macroeconomic conditions and policies and their implications for the agro-food sector presenting the results in the form of a Policy Analysis Matrix (PAM);
- If relevant, analyze the potential impact of WTO commitments and schedule regarding agricultural policies;
- Identify major policy measures required at the macro level to generate an environment conducive to agricultural development and private sector investment in the sector;
- Examine current pricing, taxation and subsidy policies relating to the agro-food sector and propose corrective measures to improve sector performance in terms of production, equity and environmental sustainability;
- Identify transitional measures required to reach a stable path of sustainable agro-food development in the Country X context;
- Analyze, in collaboration with the Working Group on Macroeconomic Framework for Agricultural Policy, the comparative advantage (domestic resource costs) of the main national agricultural products (under the current geo-political circumstances and under the assumption that the blockade is lifted);
- With the Agricultural Institutions and Administration Specialist, examine the Government's capacity in agricultural policy formulation and identify measures to help Country X develop its institutional capacity for this;
- Identify and quantify related investment, technical assistance and training needs to enhance the capacity of MOA in policy analysis;
- Carry out other activities within his or her technical competence as requested by the Project Team Leader for the achievement of the Project's objectives.

The officer will present his/her findings and recommendations in a technical document in English that will form an annex to the Team's main report, taking into consideration the findings and documentation prepared by the Working Group on Macroeconomic Framework for Agricultural Policy.

Qualifications and Experience
The officer should be a sector economist specialized in agricultural development or an agricultural economist with extensive experience (at least seven years) in sector analysis in former centrally planned economies or other countries in transition. He/she should also have a solid macroeconomic background.

 

ANNEX V: TERMS OF REFERENCE

Advisory Technical Services
Rural Finance Specialist
(6 person/weeks in 2 missions)

Under the supervision of the Chief of the Marketing and Rural Finance Service (AGSM), FAO Headquarters, the direct supervision of the Project Team Leader, in collaboration with the Rural Finance Working Group, the Sector Economist and the Marketing and Agro-processing Specialist and, in consultation with staff of concerned national institutions as well as farmers and private rural entrepreneurs, the FAO/ATS expert will conduct two missions which will coincide with the inception mission and the Mid-Term Review Workshop. The officer will:

- Draft, with the Project Team Leader, the detailed Terms of Reference for the Rural Finance Working Group;
- Advise on the methodologies to be used in the activity of the working group and provide relevant training;
- Assist with the preliminary definition of strategy objectives;
- Examine the profitability and related risks of the various possibilities of farm and off-farm investments and identify the needs of farmers and the rural population in terms of financing agricultural input supply, production, marketing and processing as well as other rural economic activities, determine the self-financing capacity of the rural population and assess the various existing sources (formal, semi-formal and informal), mechanisms and financial conditions of rural credit and saving facilities;
- Briefly review the implications of macroeconomic and monetary policies on the functioning of savings mobilization and credit services and assess the existing legal framework for financial intermediation;
- Examine the structure and operations of the formal banking sector and identify the extent to which it is advancing (and recovering) loans for agricultural and agro-industrial development, the nature of its clientele and the terms and conditions under which agricultural loans are being granted;
- Examine traditional and local level, largely informal systems, for financing agricultural and rural development and assess their capacity to respond to farmers' current requirements;
- Examine the various ongoing rural finance pilot projects which have been undertaken in Country X and assess their capacity to respond to farmers', marketing and agro-processing current and future needs;
- Develop proposals for the establishment of credit and savings systems which could meet the requirements of the rural population (both for agriculture and for small- and medium-scale rural industries) and set out the policy and institutional prerequisites for the establishment of such systems;
- Outline a global strategy for the development of an effective rural financial intermediation and integration with the provision of essential non-financial support services, determine the role of Government, private sector, donors, NGOs and grassroots organizations and estimate related investment, training and technical assistance requirements;
- Prepare draft Terms of Reference for any proposed follow-up activities;
- Carry out other activities within his or her technical competence as requested by the Project Team Leader for the achievement of the Project's objectives.

The officer will present his/her findings on the options for improving financial intermediation in rural areas in a technical document in English, which will form an annex to the Team's main report, taking into consideration the findings and documentation prepared by the Rural Finance Working Group.

Qualifications and Experience
The officer will have appropriate qualifications in agricultural economics and banking and will have extensive experience in the field of agricultural finance in developing countries including countries in transition. Ideally, such experience should have involved the specialist in agricultural or cooperative banking and, in particular, in financial intermediary arrangements, such as agricultural cooperatives, credit unions and loan and savings associations. Experience in the development and financing of farmers and small- and medium-scale rural enterprises will be an advantage.


ANNEX VI: TERMS OF REFERENCE

International Agricultural Marketing and Agro-processing Specialist
(6 person/weeks in 2 missions)


Under the supervision of the Chief, TCOC, the technical guidance of the Chief of the Marketing and Rural Finance Service (AGSM), under the direct supervision of the Project Team Leader, working in close collaboration with the Input Supply, Marketing and Agro-Processing Working Group and close association with other team members, especially with the Rural Finance, Agricultural Research and Extension Services, Crops and Sector Economics Specialists and in collaboration with staff of concerned national institutions in the public and private sector and farmers, the consultant will conduct two missions which will coincide with the Inception Mission (one week) and the Mid-Term Review Workshop (three weeks). The consultant will carry out the following specific tasks:

- Draft, with the Project Team Leader, the detailed Terms of Reference for the Agricultural Marketing and Agro-Processing Working Group;
- Advise on the methodologies to be used in the activity of the working group and provide relevant training;
- Assist with the preliminary definition of strategy objectives;
- Review current marketing and processing arrangements for major products and inputs and identify major policy and other constraints, e.g.: infrastructure and legislation;
- Review Government policies on the role of the public (including state enterprises) and private sectors (including NGOs and farmer organizations) in the storage, processing, marketing and distribution of agricultural and agro-industrial produce and inputs. Determine the extent to which current arrangements and practice conform to stated policies and identify main areas where adjustments are needed;
- Review current private sector (including farmer organizations) capacities for taking over the processing and marketing functions and identify policy or other actions required to facilitate private involvement in agricultural marketing;
- Identify appropriate policies for the Government to ensure competitiveness and reliability of agricultural markets and to promote increased private sector involvement in marketing operations;
- On the basis of the above and of the current state of affairs, identify strategies over the short, medium and long term for making the transition towards conditions that conform more fully with Government policies on the respective roles of public or private sectors. In so doing, highlight any issues requiring early resolution and outline measures to be taken to complete successfully the transition. In this respect, special effort should be given to determine the proper role, if any, of state enterprises in the marketing of agricultural produce and inputs and in agro-processing;
- As a result of his overall involvement, the specialist should be able to indicate major areas where investment, technical assistance and training will be needed and, as much as possible, make preliminary estimates of quantities involved;
- Carry out other activities within his or her technical competence as requested by the Project Team Leader for the achievement of the Project's objectives.

The consultant will present his/her findings on the state of marketing and agro-processing in a technical document in English which will form an annex to the Project's main report taking into consideration the working documents and findings of the Agricultural Marketing and Agro-Processing Working Group.

Qualifications and Experience
The consultant should be an economist, agricultural economist, or business administration specialist with extensive practical experience in marketing of agricultural and agro-industrial produce and inputs; he/she should have experience in the privatization and/or restructuring of storage, processing, marketing and distribution facilities for agricultural and agro-industrial produce and inputs. The Consultant will have a sound knowledge of transition economies.


ANNEX VII: TERMS OF REFERENCE

Retired/Partnership Programme Crop,
Fruit and Vegetable Production Specialist
(6 person/weeks in 2 missions)


Under the supervision of the Chief, TCOC, the technical guidance of the Chief, Crop and Grassland Service, AGPC, the direct supervision of the Project Team Leader, in close consultation with the Crop Production Working Group and other team members, especially the Working Group on Macroeconomic Framework for Agricultural Policies and the Working Group on Agricultural Marketing and Agro-processing, as well as staff of the concerned national institutions and farmers, the consultant will conduct two missions which will coincide with the Inception Mission (one week) and the Mid-Term Review Workshop (three weeks). The consultant will carry out the following tasks:

- Draft, with the Project Team Leader, the detailed Terms of Reference for the Crop Production Working Group;
- Advise on the methodologies to be used in the activity of the working group and provide relevant training;
- Assist with the preliminary definition of strategy objectives;

For each major crop (both existing and potential) for which Country X has a comparative advantage on the world market:

- Review past production performance and trends, identifying the reasons for these;
- Assess the current state of production and production technology and identify the main constraints to expanding output;
- In collaboration with the sector economist and the marketing specialist identify those commodities for which Country X would appear to enjoy a comparative advantage on the world market - this would include the identification of potentially new crops and diversification of the farming systems;
- Examine trading systems, storage and processing installations and assess their capacity to handle production increases;
- Identify the main potential areas and farming systems types in which - based on the comparative advantage assessments - efforts to expand output should be focused;
- In close coordination with the marketing specialist, identify the preconditions for expanding production and processing, in terms of infrastructure, policy adjustments, institutional responsibilities (especially the respective roles of the private and public sectors in technology development, extension, marketing, processing and exporting) and access to land and finance;
- Propose a strategy for achieving an expansion in output and export earnings, highlighting any major issues requiring early resolution;
- Prepare estimates for a short-, medium- and long-term investment programme and identify requirements for technical assistance;
- Prepare draft Terms of Reference for any proposed follow-up activities;
- Carry out other activities within his or her technical competence as requested by the Project Team Leader for the achievement of the Project's objectives.

The consultant will present his/her findings on the overall options for expansion in crop production/processing and on specific crops in a technical document in English which will form an annex to the Team's main report, taking into consideration the findings and documentation prepared by the Crop Production Working Group.

Qualifications and Experience
The consultant will be an agronomist with more than ten years of practical experience in the production of fruit, vegetable and cereal crops under smallholder conditions, including processing and marketing of major internationally traded fruit and vegetable crops. The Consultant will have a sound knowledge of transition economies.


ANNEX VIII: TERMS OF REFERENCE

Advisory Technical Services
Livestock Specialist
(6 person/weeks in 2 missions)

Under the supervision of the Chief, Animal Production Service, AGAP, the direct supervision of the Project Team Leader and in consultation with the Livestock Production Working Group, the other Project team members, especially the sector economist, the agricultural economist, the marketing and agro-processing specialist and the crops specialist, as well as the staff of concerned institutions and farmers, the FAO/ATS expert will conduct two missions which will coincide with the Inception Mission (one week) and the Mid-Term Review Workshop (three weeks). The officer will:

- Draft, with the Project Team Leader, the detailed Terms of Reference for the Livestock Production Working Group;
- Advise on the methodologies to be used in the activity of the working group and provide relevant training;
- Assist with the preliminary definition of strategy objectives;
- Assess the past performance of the livestock sector (including the place of livestock in mixed farming systems), take stock of the current situation and identify trends in production and the underlying reasons for these;
- For each of the main livestock production systems which have a distinct comparative advantage, review the potential for expansion and the major constraints, including those related to breeding, feed availability and quality, health, markets and environmental impact;
- In collaboration with the agricultural economist, prepare estimates of demand (both domestic and for export) for livestock products and examine the comparative benefits of different strategies for expanding livestock production;
- Review the preconditions for expanding production on a sustainable basis within each main system, in terms of infrastructure, policy adjustments and particularly institutional support in terms of research and breeding, veterinary services, extension, feed supplies and marketing: distinguish between the roles of the public and private sectors;
- Propose a strategy for achieving an economic expansion in livestock output, highlighting any issues requiring early resolution;
- Prepare preliminary estimates for a short-, medium- and long-term investment programme and identify main requirements for technical assistance;
- Prepare draft Terms of Reference for any proposed follow-up activities;
- Carry out other activities within his or her technical competence as requested by the Project Team Leader for the achievement of the Project's objectives.

The officer will present his/her findings in a technical document in English which will form an annex to the Project's main report taking into consideration the findings and documentation of the Livestock Production Working Group.

Qualifications and Experience
The officer will have significant professional experience in livestock production and health in developing countries, especially in the delivery of support services (extension, veterinary, research) for small-scale farmers, and a sound knowledge of transition economies.


ANNEX IX: TERMS OF REFERENCE

TCCT Consultant
Agricultural institutions and administration specialist
(6 person/weeks in 2 missions)


Under the supervision of the Chief, TCOC, the technical guidance of the Chief, Extension, Education and Communication Service (SDRE), the direct supervision of the Project Team Leader and in consultation with the Agricultural Institutions Working Group and other Project team members especially the agricultural research and extension specialist and the environmentalist, as well as staff of the concerned national institutions, farmers and representatives of the private sector, the consultant will conduct two missions which will coincide with the Inception Mission (one week) and the Mid-Term Review Workshop (three weeks). The consultant will:

- Draft, with the Project Team Leader, the detailed Terms of Reference for the Agricultural Institutions and Support Services Working Group;
- Advise on the methodologies to be used in the activity of the working group and provide relevant training;
- Assist with the preliminary definition of strategy objectives;
- Review the structure, staffing, facilities, funding and functioning of the major public sector institutions active in the agricultural sector and assess their capacity to fulfil their mandated functions: identify the main actions to be taken to improve their effectiveness;
- Review the current structure of the MOA;
- Examine, together with the other specialists, national policies on the respective roles of public and private sectors in agricultural development and identify any institutional adjustments, particularly with respect to the MOA, needed to align agricultural institutions with these policies;
- With the Sector Economist examine the Government's capacity in agricultural policy formulation and identify measures to help Country X develop its institutional capacity for this;
- Outline a strategy for legal and institutional reform in the agricultural sector and highlight any issues requiring early resolution;
- Assess the role of traditional forms of association and farmer organizations in agricultural development: identify the opportunities for strengthening such institutions and for ensuring the participation of farmers in the agricultural research and extension interface;
- Examine the agricultural education and training system and the relevance of its programmes to the needs of the sector: identify any areas of adjustment needed to match training more closely to the needs of individuals employed in agricultural support institutions;
- Outline a long-term strategy for improving the effectiveness and relevance of agricultural services in Country X and highlight any issues requiring resolution;
- Prepare preliminary estimates of priority investment, training and technical assistance needs for the short, medium and long term;
- Prepare preliminary estimates of technical assistance and training requirements;
- Prepare draft Terms of Reference for any proposed follow-up activities;

- Carry out other activities within his or her technical competence as requested by the Project Team Leader for the achievement of the Project's objectives.

The consultant will present his/her findings in a technical document in English which will form an annex to the Project's main report taking into consideration the findings and documentation of the Agricultural Institutions Working Group.

Qualifications and Experience
The consultant will be an institutions specialist with considerable experience in issues associated with the role and operation of agricultural institutions and the provision of agricultural services, with demonstrated ability for analysis at the micro and macro levels. The Consultant will have a sound knowledge of countries in transition.

 

ANNEX X: TERMS OF REFERENCE

National Team Leader
(7.5 person/months)

Under the supervision of the Project Team Leader, in close cooperation with FAO SEUP and in very close collaboration with the concerned national authorities, the National Team Leader will:

- Ensure the setting-up of the project office in the MOA and the organization of the inception seminar of the project;
- Prepare a short paper on agricultural policy issues which will be presented at the inception seminar of the project;
- Assist the Project Team Leader in identifying national consultants and members of the Working Groups and directly oversee their work;
- Advise the Project Team Leader on all aspects of mission programming and logistics and assist in establishing appropriate contacts for team members: oversee the work of national support staff, including temporary secretarial assistance and translators;
- Organize a Working Monitoring Seminar after one month of activity of the Working Groups;
- Set up all arrangements for the Project's programme of workshops, including the identification of participants, issue of invitations and the oversight of any related data collection, discussion papers and studies: he/she would act as rapporteur for all workshops and be responsible for editing any publications based on these;
- Serve as Secretary of the Steering Committee;
- Facilitate access to national data and materials regarding agriculture and food processing sectors for all project personnel;
- Prepare three-monthly project activity progress reports to be made available to FAO technical and operational officers;
- Review, on behalf of the Steering Committee, the draft technical documents and papers prepared by the Team and summarize the main issues for the consideration of the Committee;
- Participate in the Macroeconomic Framework for Agricultural Policy Working Group and contribute to the drafting of the strategy.

Qualifications and Experience
The consultant will have significant knowledge of the agricultural and food sectors of Country X. He/she will be an agricultural economist with experience in policy analysis. He/she should have a working knowledge of English.


ANNEX XI: TERMS OF REFERENCE

Project Focal Point


The Project Focal Point will be responsible for ensuring the full integration of the Project within MOA. More specifically, the Project Focal Point will:

- Be a member of the Project Steering Committee;
- Facilitate the setting-up of the project office in the MOA
- Ensure the participation of MOA senior staff in project activities;
- Act as the MOA interlocutor to the Project during its implementation;
- Facilitate the work of the Project Team within MOA;
- Ensure adequate access to data and information in governmental organizations for the Project Team.


Qualifications and Experience
The Project Focal Point should be a senior MOA staff with direct responsibility on policy analysis and implementation and on the design of agricultural reforms and strategy.


ANNEX XII: TERMS OF REFERENCE

Technical Backstopping
(42 days in 4 missions)

The backstopping officer (SEUP), will:

First mission (inception mission, 21 days)

- Identify and recruit the national staff and experts for the Working Groups, specify strategy objectives, specify data requirement and prepare detailed Terms of Reference for all Working Groups and associated national experts;
- Advise on the methodologies to be used in the activity of the working group and participate in relevant training concerning PAM analysis together with the Sector Economist;
- Elaborate a detailed work plan for all project activities;
- Prepare letters of agreement and other contracts with the selected Working Groups, national institutions or national experts;
- Participate in the Inception Workshop as a resource person;

Second mission (7 days)

- Participate in the Monitoring Seminar of the activity of the Working Groups and act as a resource person;
- Discuss specific project issues with Government representatives;

Third mission (7 days)

- Participate in the Mid-Term Review Workshop and act as resource person;
- Discuss specific project issues with Government representatives;

Fourth mission (7 days)

- Participate in the National Workshop and act as a resource person;
- Discuss the final results of the Project with Government representatives.


ANNEX XIII: TERMS OF REFERENCE

Macroeconomic Framework for Agricultural Policy Working Group


Under the supervision of the Project Team Leader, the direct oversight of the National Team Leader and the guidance of the International Sector Economist, the Working Group will carry out the following tasks:

- Collect all relevant information and data for the description of the dynamics of the agricultural sector and of the agricultural and trade policies implemented by the Government during transition period;
- Examine the impact of current macroeconomic policies and conditions on the agricultural sector;
- Describe international trade of Country X in agro-food products prior and since transition. Review the current trade agreements signed by Country X and their impact on the trade developments in agriculture;
- Provide an analysis of government expenditures for the agricultural sector, including relevant taxation and subsidy programmes;
- On the basis of up-to-date farm-level input-output data for representative production systems, assess the comparative advantage of the main agricultural productions (DRCs);
- Prepare demand projections for major agricultural commodities for the domestic market and assess export market opportunities for national agricultural products;
- Analyze the impacts of the population movements of the 1990s on agricultural and rural populations;
- Provide an analysis of the main policy constraints to agriculture sector development. Present short-term and medium-term policy recommendations for solving the constraints. These recommendations should be presented with a clear analysis of the financial implications of each measure for producers, consumers and government expenditure;
- Facilitate and accompany the International Sector Economist during his/her field work in Country X;
- Assist the International Sector Economist in all aspects of planning, design and implementation of his studies, during analysis phases and in report writing.

The Working Group will present its main findings in a Working Paper which will be discussed at the Mid-Term Review Workshop.


ANNEX XIII (cont.): TERMS OF REFERENCE

Rural Finance Working Group


Under the supervision of the Project Team Leader, the direct oversight of the National Team Leader and the guidance of the Rural Finance Specialist, the Working Group will carry out the following tasks:

- Collect all data and information necessary for the description of the developments of the rural financing. Describe the main aspects of rural financing from the late 1980s to present (main institutions involved, etc.);
- Analyze the current developments regarding the structure and performance of the rural finance system (including credit availability, formal and informal credit channels) and the legal framework (for lending, bankruptcy and debt recovery);
- Describe and analyze the major constraints affecting access to adequate finance (including the macroeconomic context). In particular constraints on the use of land as collateral will be assessed;
- Examine the on-going rural finance projects and assess their capacity to respond to the needs of farmers and marketing and agro-processing operators;
- Provide preliminary recommendations for the development of an efficient rural finance infrastructure covering the major needs of farmers and marketing and agro-processing operators;
- Facilitate and accompany the Rural Finance Specialist during his/her field work in Country X;
- Assist the Rural Finance Specialist in all aspects of planning, design and implementation of his studies, during analysis phases and in report writing.
- The Working Group will present its main findings in a Working Paper which will be discussed at the Mid-Term Review Workshop.


ANNEX XIII (cont.): TERMS OF REFERENCE

Agricultural Marketing and Agro-Processing Working Group


Under the supervision of the Project Team Leader, the direct oversight of the National Team Leader and the guidance of the International Agricultural Marketing and Agro-Processing Specialist, the Working Group will carry out the following tasks:

- Review the main factors impeding the development of agricultural markets and agro-processing;
- Analyze the structure of marketed production, describe the assembly markets, review the existing systems for collecting, analyzing and disseminating market information;
- Provide a status report of the state of privatization and restructuring of the food and agricultural input industry (numbers of privatized enterprises in each subsector, privatization method, impact of foreign direct investment, etc.);
- Describe the present systems of marketing and processing of agricultural products and marketing of inputs and assess the significance of each system (private and public operators);
- Review the legal framework concerning privatization, competition, bankruptcy and liquidation and foreign direct investment;
- Review the standards of food processing, packaging and marketing. Tentatively assess the competitiveness of processed products on domestic and external markets (overall competitiveness);
- On the basis of the analysis, provide recommendations as to how to eliminate the main constraints impeding the development of agricultural markets and agro-processing;
- Facilitate and accompany the International Marketing and Agro-Processing Specialist during his/her field work in Country X;
- Assist the International Marketing and Agro-Processing Specialist in all aspects of planning, design and implementation of his studies, during analysis phases and in report writing.

The Working Group will present its main findings in a Working Paper which will be discussed at the Mid-Term Review Workshop.


ANNEX XIII (cont.): TERMS OF REFERENCE

Agricultural Institutions and Support Services Working Group


Under the supervision of the Project Team Leader, the direct oversight of the National Team Leader and the guidance of the International Agricultural Institutions and Administration Specialist, the Working Group will carry out the following tasks:

- Present the institutional set-up in the agricultural sector and the main institutional reforms implemented since the beginning of transition to a market economy;
- Analyze the activities and responsibilities of the different governmental institutions in the agricultural and food sectors and underline possible overlaps or conflicts;
- Provide preliminary recommendations as to how to increase the efficiency of the main institutions and streamline the institutional set-up;
- Review the current state of the institutional system for agricultural services (research, education and extension) and analyze the extent to which it meets the needs of the farmers;
- Review the current developments of farmer organizations and assess their capacity to participate in the agricultural research and extension interface;
- Review (in collaboration with the Livestock Production Working Group and with the Crop Production Working Group) the quality and cost-effectiveness of the services provided by animal and plant breeding institutions;
- Facilitate and accompany the International Agricultural Institutions and Administration Specialist during his/her field work in Country X;
- Assist the International Agricultural Institutions and Administration Specialist in all aspects of planning, design and implementation of his studies, during analysis phases and in report writing.
- The Working Group will present its main findings in a Working Paper which will be discussed at the Mid-Term Review Workshop.


ANNEX XIII (cont.): TERMS OF REFERENCE

Livestock Production Working Group


Under the supervision of the Project Team Leader, the direct oversight of the National Team Leader and the guidance of the Livestock Specialist, the Working Group will carry out the following tasks:

- Assess the past performance of the livestock sector (including the place of livestock in mixed farming systems);
- Review the current performance of the livestock sector, identify trends in production and the underlying reasons for these;
- For each of the main livestock production systems review the potential for expansion and the major constraints, including those related to breeding, feed availability and quality, health, market and environment impact;
- Provide gross margins for the major productions;
- In collaboration with the Macroeconomic Framework for Agricultural Policy Working Group and the Crop Production Working Group, present livestock food demand forecasts and identify those commodities in which Country X has a comparative advantage for production for the domestic market. For livestock products for which surpluses might be produced, assess Country X's competitiveness as a potential exporter;
- Identify the main potential areas and farming system types on which efforts at securing livestock production increases should be focused;
- Present preliminary recommendations as to how livestock production should be improved in the future;
- Facilitate and accompany the Livestock Specialist during his/her field work in Country X;
- Assist the Livestock Specialist in all aspects of planning, design and implementation of his studies, during analysis phases and in report writing.

The Working Group will present its main findings in a Working Paper which will be discussed at the Mid-Term Review Workshop.


ANNEX XIII (cont.): TERMS OF REFERENCE

Crop Production Working Group


Under the supervision of the Project Team Leader, the direct oversight of the National Team Leader and the guidance of the Crop, Fruit and Vegetable Production Specialist, the Working Group will carry out the following tasks:


- Present the main trends in crop production since the beginning of the transition to a market economy and provide the main reasons for these;
- Analyze the main production systems and identify potentialities for crop diversification;
- Provide gross margins for the major productions;
- In collaboration with the Macroeconomic Framework for Agricultural Policy Working Group, present food crop demand forecasts and identify those commodities in which Country X has a comparative advantage for production for the domestic market. For crops for which surpluses might be produced, assess Country X's competitiveness as potential exporter;
- Present preliminary recommendations as to how crop production should be improved in the future;
- Facilitate and accompany the International Crop Specialist during his/her field work in Country X;
- Assist the International Crop Specialist in all aspects of planning, design and implementation of his studies, during analysis phases and in report writing.

The Working Group will present its main findings in a Working Paper which will be discussed at the Mid-Term Review Workshop.

ANNEX XIV: EQUIPMENT

 

US$

Two computers @US$2 000

4,000

Two printers @US$750

1,500

One modem

500

One set of software

1,000

One license for internet provider

500

One photocopier

2,000

One phone/fax machine

400

TOTAL

9,900

 

ANNEX XV: DETAILED COST FOR TRAINING/WORKSHOPS

 

US$

Mid-Term Review Workshop (30 participants, requiring accommodation and travel support, 2 days)

  • Travel and accommodation (per person: travel US$20 + US$80 for accommodation, misc.), US$1 000
  • Conference facilities (US$400/day) and coffee and lunch break (US$10/person/day): US$1 400

2,400

   

National Workshop (up to 50 participants for 2.5 days) outside Country X's capital

Conference facilities, travel and accommodation: US$5000

5,000

Simultaneous interpretation for the two workshops (2 days for Mid-Term Review Workshop and National Workshop, US$60/hour and US$200/day for equipment rent)

2,240

 

TOTAL

9,640