republic of mozambique ministry of agriculture centre …

REPUBLIC OF MOZAMBIQUE

MINISTRY OF AGRICULTURE

Centre for the Promotion of Agriculture

(CEPAGRI)

PRO-POOR VALUE CHAIN DEVELOPMENT PROJECT IN THE MAPUTO AND

LIMPOPO CORRIDORS

(PROSUL)

FINANCIER:

IFAD LOAN NO. I-878-MZ

IFAD GRANT NO. I-C-1391-MZ

TRUST LOAN NO. E-15-MZ

ASAP GRANT NO. C-ASP-1-MZ

PROSUL Semi - Annual Report 2014

August 2014

i

Acronyms

ASAP Adaptation for Smallholder Agriculture Programme

AWPB Annual Work Plan and Budget

BAGC Beira Agriculture Growth Corridor

BOM Bank of Mozambique

CEPAGRI Centre for the Promotion of Agriculture

CUT Conta Única de Tesouro

DA Designated Account

DE Directorate of Economics

DNEA National Directorate of Agriculture Extension

DNSA National Directorate of Agrarian Services

DNSV National Directorate of Veterinary Services

DNTF National Directorate of Lands and Forests

DPA Provincial Directorate of Agriculture

e-SISTAFE State Financial Administration System

FA Financing Agreement

GC Gestão de Conhecimento (Knowledge Management)

GoM Government of Mozambique

IDPPE Instituto Nacional de Desenvolvimento da Pesca de Pequena Escala

IFAD International Fund for Agriculture Development

IIAM Instituto de Investigação Agrária de Moçambique

INAM National Institute of Meteorology

INIR National Institute of Irrigation

LSP Lead Service Provider

LTB Letter to the Borrower

LTSP Land Tenure Service Provider

KM Knowledge Management

MFIs Micro Financial Institutions

MINAG Ministry of Agriculture

MoU Memorandum of Understanding

MTOs Meat Trade Organisations

NO No Objection

PDR Project Design Report/Document

PME Planning, Monitoring & Evaluation

PIM Project Implementation Manual

PMT Project Management Team

PP Procurement Plan

ii

PRA Participatory Rapid Appraisal

PROPESCA Artisanal Fisheries Promotion Project (Projecto de Promoção da

Pesca Artesanal)

PROSUL Pro-Poor Value Chain Development Project in the Maputo and

Limpopo Corridors

RBL Regadio do Baixo Limpopo

RIMS Results and Impact Management System

SC Steering Committee

SDAE District Service of Economic Activities

STF Spanish Trust Fund

TA Technical Assistance

TOMPRO Financial Management System

TOR Terms of Reference

UNCDF United Nations Capital Development Fund

USD American dollar

WA Withdrawal Application

VC Value Chain

VC DAP Value Chain Development Action Plan

iii

MAP OF PROSUL PROJECT AREAS

iv

Content

Acronyms ....................................................................................................................................................... i

MAP OF PROSUL PROJECT AREAS ................................................................................................... iii

1. INTRODUCTION ................................................................................................................................ 1

1.1 PROJECT OUTLINE ................................................................................................................... 2

1.2 Functional Institutional Arrangements & Coordination ............................................................... 3

1.3 ABOUT THIS SEMI - ANNUAL REPORT (JANUARY TO JUNE 2014) ................................ 4

2 DETAILED IMPLEMENTATION PROGRESS BY COMPONENT ................................................. 5

2.1 Component 1 – Horticulture ............................................................................................................... 6

2.2 Component 2- Cassava ....................................................................................................................... 8

2.3 Component 3- Red Meat ..................................................................................................................... 9

2.4 Component 4- Financial Services ....................................................................................................... 9

2.5 Component 5- Institutional Support and Project Management ......................................................... 10

3 FINANCIAL PERFORMANCE ..................................................................................................... 14

4 IMPLEMENTATION SUPPORT AND SUPERVISION MISSIONS .............................................. 15

5 KEY CONSTRAINTS AND ACTION REQUIRED ......................................................................... 16

Annexes ...................................................................................................................................................... 17

Annex 1: PROSUL Key Partners and Project Staff ................................................................................ 18

Annex 2: 31 March to 11 April 2014 Agreed Action ............................................................................. 20

1

1. INTRODUCTION

1. The Pro-Poor Value Chain Development Project in the Maputo and Limpopo Corridors

(PROSUL) involves pro-poor improvement in three value chains: irrigated horticulture,

cassava and red meat. It will work in the trade corridors of the southern Provinces of Gaza,

Inhambane and Maputo. It aims to reach 20 350 beneficiaries, mostly economically active

poor who are already involved in value chain production in 19 districts of Maputo, Gaza and

Inhambane provinces.

2. The project goal is to establish improved and climate-smart livelihoods of small farmers in

selected districts of the Maputo and Limpopo corridors. Its development objective is to

achieve sustainable increased returns to smallholder farmers from increased production

volumes and quality in the targeted value chains, improved market linkages, efficient farmer

organisations and higher farmers’ share over the final added value.

3. The Project is under the auspices of the Ministry of Agriculture, with CEPAGRI designated

as Lead Project Agency. Thus, CEPAGRI has the overall responsibility and coordination for

the implementation of the Project with the support of a Project Management Team (PMT)

based at the CEPAGRI Delegation in Xai-Xai, Gaza province. The project entered into force

on 3rd October 2012 and the Project Management Team is now in place. PROSUL was

officially launched on 17 April 2013 in Xai-Xai.

4. All key positions for the PMT are partly fulfilled, except for the Financial Service Expert,

Climate Adaptation Expert and Agri-business Specialist. The recruitment of the Financial

Service Expert was suspended due to the ongoing process aimed at revising Component 4 –

Financial Services. The position regarding Climate Adaptation Expert was re-advertised

following the poor response at the first round but even in the second round there we not

qualified candidates. Following this, CEPAGRI and IFAD agreed on the need of financing

two CEPAGRI staff to attend post graduation studies on climate adaptation at the University

of Cape Town in South Africa. In relation to the Agri-business Specialist it is worth

mentioning though he was recruited his contract with CEPAGRI was terminated in March

2014, because of his inability to present academic certificates which is an indispensable

condition for the contract registration at the Administrative Court (AT). Thus, it was agreed

with the last supervision mission to re-launch the tender for the position of Agri-business

specialist.

5. The Project implementation approach is through Lead Services Providers in each of the

three targeted value chains, the land tenure security services provider and the GIS service

provider. The LSPs for red meat and cassava have signed the contract and they are preparing

to start conducting the Participatory Rapid Appraisal (PRA) and their establishment in the

target area. The tendering process for procurement of the three Lead Service Providers

(LSPs) for the Value Chain is almost being finalised with the Horticulture. The tenders for

LTSP and GIS SP are expected to be finalized until November 2014.

2

6. Assumptions. In any planning process there have to be assumptions as the future is

unknown. Therefore, it is important to note that PROSUL had during the process of

planning and together with the supervision made all assumptions for smooth

implementation. The goal of our assumptions was to minimize the discrepancy between

assumptions used in the plan and what actually occurs. As a result, our assumptions have

been based on that the funds will be available on time. Moreover, the recruitment of the

LSPs were deemed crucial for a successful implementation of planned activities.

7. In this sense, the assumptions above need to be taken into consideration when evaluating the

status of implementation or progress. It is important to understand that there was a time lag

on process of disbursement of funds which were exogenous to the project by itself. In

addition, the recruitment of the LSPs has been a challenging task as well.

1.1 PROJECT OUTLINE

8. The Pro-Poor Value Chain Development Project in the Maputo and Limpopo Corridors

(PROSUL) in Mozambique was declared effective on 3 October 2012 for a period of 7 years

(2012-2019) and the Project was numbered in the Financing Agreement as follows: IFAD

LOAN NO. I-878-MZ; IFAD GRANT NO. I-C-1391-MZ; TRUST LOAN NO. E-15-MZ

and ASAP GRANT NO. C-ASP-1-MZ.

9. The total budget for PROSUL is estimated at 44.95 million. This budget can be split

according to the sources of funds as follows: IFAD Loan (US$ 16.3 million); IFAD Grant

(US$ 1.52 million); Spanish Trust Fund Loan (STF) (US$ 16.3 million); Adaptation for

Smallholder Agriculture Program (ASAP) (US$ 4.91 million); United Nations Capital

Development Fund (UNCDF) (US$ 0.14 million); Private Investors (US$ 1.9 million);

Beneficiaries (US$ 1.4 million); and the Government of Mozambique (GoM) (US$ 2.49

million)

10. PROSUL is organized into five components:

i) Componenent 1: Horticulture

ii) Component 2: Cassava

iii) Component 3: Red meat

iv) Component 4: Financial Services

v) Component 5: Institutional Support and Project Management

11. Component 1: Horticulture – The component aims at increasing the income of smallholders

growing vegetables in selected irrigated perimeters, by assisting them in intensifying

vegetable production, accessing support services to raise productivity and quality, and

developing remunerative market linkages both with modern and traditional markets. The

component has an estimated budget of US$ 12.75 million;

12. Component 2: Cassava - The component aims at shifting cassava from a subsistence crop to

a cash crop by developing a set of business models whereby smallholders would produce

3

increased volumes of good quality cassava and would have access to new types of markets

for cassava products. The component has estimated budget of US$ 3.92 million;

13. Component 3: Red Meat - The component aims at enabling livestock producers to take

advantage of market opportunities by promoting improved rangeland, higher production and

enhanced linkages between value chain stakeholders. This component has an estimated

budget of US$ 5.40 million;

14. Component 4: Financial Services1 - The objective of Component 4 is to ensure the access

of value chain stakeholders (including smallholders as well as other players down the value

chain such as commercial farmers, Livestock Vet Stores, Meat Trade Organisations (MTOs)

and cassava processors to adequate financial services provided at an affordable cost by

sustainable Micro Financial Institutions (MFIs) using innovative delivery mechanisms to

increase their outreach. This component has an estimated budget of US$ 14.5 million; and

15. Component 5: Institutional Support and Project Management - The objective of

Component 5 is to strengthen CEPAGRI, the government agency responsible for project

implementation. The component has an estimated budget of US$ 6.72 million.

16. Project area. PROSUL is being implemented across the Limpopo and Maputo corridors,

with a focus on priority production areas in 19 districts of the provinces of Gaza, Inhambane

and Maputo. The selected districts per province and component are:

Horticulture (9 districts): Maputo province (Boane, Moamba, Namaacha and

Marracuene) and Gaza province (Chibuto, Chókwè, Guijá, Manjacaze and Xai-

Xai);

Cassava (6 districts): Inhambane province of namely: (Inharrime, Jangamo,

Massinga, Morrumbene, Zavala) and Gaza province (Manjacaze); and

Red Meat component (7districts): Maputo province (Manhiça and Magude) and

Gaza province (Chokwe, Guijá, Massingir, Mabalane and Chicualacuala).

1.2 Functional Institutional Arrangements & Coordination

17. The Project implementation is coordinated by CEPAGRI, through a Project Management

Team (PMT) based at CEPAGRI Delegation in Xai-Xai. Other Government institutions

involved in the Project Implementation include: National Irrigation Institute (INIR –

Instituto Nacional de Irrigação); Agriculture Research Institute of Mozambique (IIAM –

Instituto de Investigação Agrária de Moçambique); National Directorate of Agrarian

Services (DNSA – Direcção Nacional de Serviços Agrários); National Directorate of

Veterinary Services (DNSV – Direcção Nacional de Serviços Veterinários); National

Directorate of Extension (DNEA – Direcção Nacional de Extensão Agrária); Directorate of

Economics (DE); National Directorate of Land and Forests (DNTF); National

1 However it has been agreed upon that the financial service component will be re-structured in the three following

sub-components: (i) Innovation and Outreach Facility; (ii) Financial Sector Deepening Fund; and (iii) Loan

Guarantee Fund, so as to address the bottleneck of lack of adequate collateral. Hence, the process of recruiting

consultants is underway.

4

Meteorological Institute (INAM), National Administration of Roads (ANE); Provincial

Directorates of Agriculture of the three Southern Provinces (DPAs) and District Services of

Economic Activities (SDAEs) of the 19 targeted districts.

18. The project is guided by the Steering Committee (PSC), chaired by the Permanent Secretary

of the Ministry of Agriculture or his/her designee, and composed of the MINAG National

Directors of DNSA, DNSV, IIAM, INIR, CEPAGRI, DNEA, DE, DNTF, Agriculture

Provincial Directors of Maputo, Inhambane and Gaza provinces, Representatives of Farmer

Group Organizations at local and national level, private sector, Lead Service Providers

(LSPs), Representatives of the Financial Intermediary Institution and Financial Service

Providers (FSPs). The PSC will ensure overall performance oversight and provide strategic

and policy guidance.

1.3 ABOUT THIS SEMI - ANNUAL REPORT (JANUARY TO JUNE 2014)

19. This report provides an insight on the project implementation progress for the period of

January – June 2014. In addition, this semi - annual implementation progress report takes

into account the recommendations done by the last supervision mission. Of course, the main

objective of the report is to highlight the project progress against the annual work plan and

budget (AWPB) for 2014.

20. In this context, the report is organized in the same way that AWPB and the data base of the

Planning, Monitoring & Evaluation have been structured. An introduction, project outline,

functional institutional arrangements & coordination about the progress report are

highlighted here as well.

21. The information contained in this report being the first semi - annual progress report was

gathered using the information from M&E System in place. Therefore, an attempt is made to

use it and above all to share the outcomes, though it is still earlier as the LSPs have just

come on board now for the two value chains, namely: Red Meat and Cassava. Although a

significant progress has been made on process of recruiting the LSP for Horticulture but not

yet on board.

22. However, it is worth mentioning the implementation during the period under review was

significantly affected by the delay in the disbursement of funds coupled with slow move in

getting the key project staff (namely the Financial Manager, Agro-business specialist) as

well as the long way in recruiting the LSPs. In addition, the process of training staff for e-

SISTAFE and its operationalization combined with decentralisation of the project to the

provincial level. Consequently, all these had adverse impact on activity implementation.

5

2 DETAILED IMPLEMENTATION PROGRESS BY COMPONENT

23. The project implementation during the period under review placed greater emphasis on the

set-up of e-SISTAFE system and decentralization of the Project from National to the

Provincial level; recruitment of the LSPs as well as on the remaining key project staff (the

PMT), preparation and supporting supervision mission among other activities carried out

across the project components and subcomponents. Table 1 and figure below summarises

the proportionate count of activities that were planned to be implemented and the physical

progress status.

Table 1: Number of Activities Implementation by Component during January - July 2014

Components

Planned Activities Accomplished Activities

Accomplished

(B/A) %

A B C

1 Horticulture 16 4 25%

2 Cassava 16 4 25%

3 Red Meat 15 3 20%

4 Financial Services 3 1 33%

5 Institutional Support and

Programme Management 29 16 55%

Total 79 28 35%

6

24. As it can be depicted from the figure above, a total number of 79 activities were planned for

the year 2014. However 3 out of 79 are considered as problematic activities. These 3

activities with problems are related to component 4 (Financial Services) which requires

reformulation.

25. Overall, the performance summary by the end of June 2014, shows that 31 activities are not

yet due, 20 are ongoing implementation and on schedule, 15 are ongoing but behind

schedule, 6 are due but not started (these are mostly activities related to the horticulture

component), 5 have been completed, 1 postponed and completed and 1 cancelled and not

completed.

2.1 Component 1 – Horticulture

26. Although, under the Horticulture component the recruitment of the LSP is still ongoing

process, some activities have been implemented during the period under review. These

include launching the tender for conducting irrigation technical studies for the rehabilitation

and improvement of irrigation perimeters. The evaluation has been carried out but the bid

was cancelled due to high amount presented by the bidder compared to the planned budget

and average rates for conducting irrigation studies as per INIR;

27. The Physical Progress of planned activities under this component are presented below

starting with subcomponent 1.1 and followed by subcomponent 1.2. Under the latter (1.2)

the process of renovation of the meteorological station at Chókwè research station is

ongoing process for the procurement of equipment as it can be depicted in progress register

from the system.

7

Physical Progress of Planned Activity by Component

and subcomponentUnit

1st Q 2nd Q 3rd Q 4th Q

Component 1 - Horticulture

Sub-component 1.1. Rehabilitation and Expansion of

existing irrigated perimeters

1.1.1

Technical assistance to the Water User Associations

(WUAs) members on organizational and management

matters

number 500INIR/CEPAGRI

(SDAE's, DPA's)xxx 0

Not yet due. This implementation of this is

subject to the recruitment of the LSP for

Horticulture

1.1.2

Conducting irrigation technical studies for the

prrehabilitation and improvement of irrigation

perimeters

number 1INIR/CEPAGRI/(DP

A's e SDAE's)xxx xxx 100%

Ongoing but behind schedule. The tender was

launched and the evaluation of this tender

carried out. However, the tender has been

canceled because the proposed budget is by

far higher than what is planned for.

1.1.3

Launching of tender for hiring of contractors for the

rehabilitation and improvement of irrigation

perimeters

number 1 INIR/CEPAGRI xxx xxx 0Ongoing and on schedule. It was pending

upon the above activity (1.1.2)

1.1.4Civil works for rehabilitation and improvement of

irrigation schemesnumber 9

INIR/CEPAGRI/(RBL

, DPA's e SDAE's)xxx xxx 0

Ongoing and on schedule. It was pending

upon the above activity (1.1.2)

1.1.5Conducting operation & maintenance works at

Regadio do Baixo Limpopo (RBL)number 1

INIR/CEPAGRI/(RBL

, DPA's e SDAE's)xxx xxx 100%

Ongoing and on schedule. No Objection has

been granted by IFAD and RBL has advanced

on the process of recruiting the company that

will be responsible for this activity.

1.1.6Supervision of rehabilitation and improvement civil

works of irrigation schemesnumber 1

INIR/CEPAGRI/(RBL

, DPA's e SDAE's)xxx 0

Not yet due. The supervision is expected to

start in first quarter

NrPhysic

Target

Implementing

Agenciy/

Institutions

Implementation Schedule by

QuarterAchievement

Results (% )Progress Status and Comments




1.2.1Renovation of the metereological station at Chókwe

Reseach Stationnumber 1 INAM, CEPAGRI xxx xxx 50%

Ongoing and on schedule. No Objection was

granted by IFAD for the procurement of

equipment

1.2.2Technical training on meteorological station

equipment operattion at Chókwe Reseach Stationnumber 4 INAM,IIAM,DCAP xxx 0

Ongoing and on schedule. Subject to the

procurement of above equipment

1.2.3Conducting feasibility studies and on legal aspects

for Horticulture Service Hubsnumber 2

PLS, CEPAGRI, INIR,

DE, DPA's e SDAE'sxxx 0 Not yet due

1.2.4Conducting Participatory Rapid Appraisal (PRA) for

horticulture VCnumber 1

PLS, CEPAGRI, INIR,

DE, DPA's e SDAE'sxxx xxx 0

Ongoing but behind schedule. Waiting for the

finalization on the recruitment of LSP for

Horticulture

1.2.5Elaboration of the Value Chain Action Development

Plan for horticulture and AWPB for 2015number 2 PLS xxx 0 Not yet due

1.2.6Effective implementation of contract with the

Horticulture Lead Service Providernumber 1

CEPAGRI, INIR,

DNSA, DNEA,

DPA's, SDAE's

xxx xxx xxx 50%

Ongoing but behind schedule. The process of

recruiting the LSP for Horticulture is at its

advanced stage. The Technical Evaluation has

been finalised and No Objection granted by

FIDA to go ahead with negotiations

1.2.7Conduct Scopping study on Horticultural Value

Chainnumber 1 xxx 0 Not yet due

1.2.8Training on Farmer Fiel Schools (FFSs) methodology

for potential facilitators (horticulture)number 15 xxx xxx 0 Not yet due

1.2.9 Establishment and monitoring of FFSs (horticulture) number 6DNEA, CEPAGRI,

SDAEs, DPAs, PLSxxx 0 Not yet due

1.2.10Provision of KIT's to facilitators of FFSs and

producersnumber 300

INIR,

CEPAGRI,DPAs,

SDAEs

xxx xxx 0 Not yet due

NrPhysic

Target

Implementing

Agenciy/

Institutions


QuarterAchievement


8

2.2 Component 2- Cassava

28. Under this component, the main activities that were carried out include the effective

implementation of contract with the cassava LSP, the elaborations of the ToRs for the

feasibility studies, the preparation of cassava multiplication plan and the starting of PRA as

depicted by the physical progress register below.




Sub-component 2.1. Strengthening linkages between

Value chain stakeholders

2.1.1Renovation of metereological station at Nhacoongo

Agronomic Postnumber 1 INAM, CEPAGRI xxx 0 Not yet due

2.1.2Technical training on meteorological station equipment

operattion for Nhacoongo Agronomic Post staffnumber 4 INAM,IIAM,DCAP xxx 0 Not yet due

2.1.3Training on Farmer Fiel Schools (FFSs) methodology for

potential facilitators (cassava)number 15

PLS, DNEA,DPA

Gaza e I'banexxx 0 Not yet due

2.1.4 Provision of KIT's to facilitators of FFSs and producers number 300DPA's, SDAE's, PLS

e CEPAGRIxxx 0 Not yet due

2.1.5Installation of sprinkler system for the multiplication of

cassava cuttings at Nhacoongo Agronomic Postnumber 1

IIAM, DPA,

CEPAGRIxxx 0 Not yet due

2.1.6 Establishment of cassava multiplication cuttings sites ha 4 IIAM, PLS,SDAE's xxx xxx 50%

Ongoing and on schedule. The preparation is

underway and it has been agreed to plan or

establish 35 ha of cassava multiplication in 2014

2.1.7 Establishment of germination Chamber number 1 IIAM xxx xxx 25%Ongoing and on schedule. Mater plan has been

prepared

2.1.8 Establishment and monitoring of FFSs (Cassava) number 6PLS, CEPAGRIDPA

's e SDAE''sxxx xxx 0% Ongoing but behind schedule

2.1.9Conducting feasibility studies and on legal aspects for

the Cassava service hubsnumber 2

CEPAGRI, DNSA,

DNEA, DE, FDA,

PLS, DPA's

xxx xxx xxx 0 Ongoing but behind schedule

2.1.10Preparation of bid documents for the acquisition of

cassava processing equipmentnumber 1

CEPAGRI, PLS,

DPA'sxxx xxx 0 Ongoing but behind schedule

2.1.11Technical assistance to farmers organisations on

organizational and management mattersnumber 300

SDAE's, DPA's e

PLSxxx xxx 0 Ongoing but behind schedule

2.1.12

Training in agro-processing, management, business plan

and markets matters for the potential emergent

enterprises

number 30SDAE's, DPA's e

PLSxxx 0 Not yet due

2.1.13 Conducting Scopping study on Cassava Value Chain number 1PLS, CEPAGRI,

DNSA, IIAM, DE, xxx xxx 0 Ongoing but behind schedule

2.1.14Conducting Participatory Rapid Appraisal (PRA) for

cassava VCnumber 1

CEPAGRI,PLS,

SDAEs, DPAsxxx xxx xxx 50%

Ongoing but behind schedule. The contract has

been signed with the LSP and the PRA due to

start in August 2014

Sub-component 2.2. Value chain environment

2.2.1Elaboration of the Value Chain Action Development Plan

for horticulture and AWPB for 2015number 2 PLS xxx 0 Not yet due

2.2.2Effective implementation of contract with Cassva Lead

Service Providernumber 1

CEPAGRI, IIAM,

DNSA, DNEA,

DPA's, SDAE's

xxx xxx xxx 100%The implementation of contract has started with

LSP (SNV/Malhahle)

NrPhysic

Target

Implementing

Agenciy/

Institutions


QuarterAchievement


9

2.3 Component 3- Red Meat

29. Under this component it is important to highlight the starting of effective implementation of

contract with the Lead Service Provider for Red Meat (SNV/ILRI). Thus, the following

actions have been fulfilled and underway, namely: the presentation of the LSP to the

Districts and Provincial Directorate of Agriculture (PDAs); commencement of Participatory

Rapid Appraisal (PRA); preliminary discussion with SDAEs regarding the identification of

strategic locations for the water points for livestock and to be confirmed by the ongoing

PPA; the definition of start-up kits for the animal health agents and livestock producers; the

preparation for launching the tender for the feasibility study for the construction of the

slaughterhouse as depicted by the activity progress register below.




Sub-component 3.1. Value Chain Environment

3.1.1Conducting Participatory Rapid Appraisal (PRA) for Red

Meat VCnumber 1

PLS, CEPAGRI,

DNSV, IIAM, DE,

DPA e SDAE's

xxx xxx 75%

Ongoing but behind schedule. This activity is

ongoing and it is expected to be finalised by

September 2014.

3.1.2Elaboration of the Value Chain Action Development Plan

for horticulture and AWPB for 2015number 2 PLS xxx 0 Not yet due

3.1.3 Conducting Scopping study on Red Meat Value Chain number 1DNSV,PLS,CEPAGRI

, SDAEs, DPAsxxx 0

Postponed and not completed. This has been

cancelled completely because the PRA and the

feasibility study for the slaughter house will

cover most aspects

Sub-component 3.2. Production Improvement

3.2.1

Carry out survey for identification of strategic locations

for construction/rehabilitation/upgrading of drinking

water points for livestock

number 3

PLS,

CEPAGRIDNSV,

DPAs e SDAE's

xxx xxx 25%Ongoing but behind schedule. A meeting with

SDAEs was held and proposal advanced

3.2.2Launching of tender for hiring of contractors for the

construction of drinking water pointsnumber 1

PLS, CEPAGRI,

DPA'sxxx 0 Not yet due

3.2.3Provision of start-up KITs to the livestock Animal Health

Agents and Livestock Producersnumber 500

DPA's, SDAE's, PLS

e CEPAGRIxxx 0 Not yet due

3.2.4Carry out an assessment for the identification of fodder

banks planned to be establishednumber 1

DNSV, IIAM,

SDAE's, PLSxxx xxx 0 Not yet due

3.2.5

Trainingn on the preparation of business plans and

management to the potential business owners of

veterinary pharmacies

number 30PLS, DNSV, DPA's e

SDAE'sxxx 0 Not yet due

3.2.6Technical assistance to the livestock producers on

organizational and management mattersnumber 400

SDAEs,PLS,

CEPAGRIxxx xxx 0 Not yet due

3.2.7Training in Animal Health and Management matters for

Animal Health Agentsnumber 100

CEPAGRI,DPAs,DN

SV,SDAEs, PLSxxx 0 Not yet due

3.2.8Carry out civil works for rehabilitation/improvement of

water points (3 holes and 3 dams)number 6

DNSV,PLS,

CEPAGRI, SDAEsxxx xxx 0 Not yet due

Sub-component 3.3. Market linkages

3.3.1Effective implementation of contract with Red meat Lead

Service Provider number 1

CEPAGRI, IIAM,

DNSV, DNEA,

DPA's, SDAE's

xxx xxx xxx 100%

Ongoing but behind schedule. Effective

implementation of contract through LSP

(SNV/ILRI) is ongoing.

3.3.2Technical assistance for Meat Traders on organizational

and management mattersnumber 80

DPAs,

SDAEs,DNSV, PLSxxx 0 Not yet due

3.3.3Carry out feasibility study for the construction of the

slaughterhousenumber 1

CEPAGRI, DNSV,

DPAs, PLSxxx xxx 0

Ongoing and on schedule. The ToR have been

elaborated and the tender is expected to be

launched in August 2014.

3.3.4Carry out survey for the identification of strategic

locations for cattle fairsnumber 3

PLS,DNSV,DPAs,SD

AEsxxx xxx Not yet due

NrPhysic

Target

Implementing

Agenciy/

Institutions


Quarter Achievement


2.4 Component 4- Financial Services

30. Under this component no substantial activities have been implemented during this period.

However, there have been two IFAD missions that agreed with a reformulation and the

10

process is ongoing in recruiting international and national consultants fine-tune the design of

the financial services component.




Sub-component 4.1. Financial services

4.1.1Participation in the process of redesigning the Financial

Services Componentstudy 1 CEPAGRI xxx xxx 25%

Ongoing and on schedule. The recruitment of

international and national consultants fine-tune

the design of the financial services component is

expected to be completed by August or

September 2014.

4.1.2Participation in the selection of financial institutions (IF

's) to be involved in the implementation of C4number 3 CEPAGRI, IFI xxx 0 Not yet due

Sub- component 4.2. Capacity Building

4.2.1

Contracting international technical assistance for

providing support on the evaluation of the potential

MFIs

number 1 CEPAGRI xxx 0 Not yet due

NrPhysic

Target

Implementing

Agenciy/

Institutions


QuarterAchievement


2.5 Component 5- Institutional Support and Project Management

31. Under this component a considerable progress was achieved in the activities implementation

during the 1st semester. However, it is worth mentioning that the bulk of these implemented

activities were not from AWPB for 2014 as such but very important. For example, the

negotiation process for LSP for the Red Meat and Cassava Value Chains, the recruitment of

Financial Manager, Procurement Officer, drafting of various ToRs, holding meetings with

various institutions, the evaluations process, just to mention few of them.

32. In terms of planned activities for the semester, the following were accomplished;

The finalisation and the establishment of the PM&E system with the support of the

consultant. Thus, the system has been set up and operational as depicted by the

progress register being presented along this report;

The finalisation of Annual Work Plan and Budget for 2014 and elaboration of 2013

Annual Progress Report;

The preparation and carrying out in March 2014, the first planned Steering

Committee meeting for 2014, with main objective to approve the 2013 Annual report

and 2014 AWPB. However, the PSC is still not yet fully staffed as representatives of

LSPs have not yet been appointed;

The preparation and accompanying the IFAD supervision mission that took place

from 31 March to 11April 2014;

The re-launching and finalisation of the recruitment of Horticulture LSP. Following

IFAD No objection provided on 31 January 2014, the re-launching of tender was

carried out and deadline for submitting technical and financial proposals was 25

March 2014. The evaluation has been carried out as well. Four proposals were

received as follow: 1) SOFRECO/Agro-Serviços, 2) GAPI/Novedades, 3)

OIKOS/LUPA and 4) IEPA. However, only GAPI/Novedades Consortium with

11

77.21 points followed by OIKOS/LUPA with 73.13 points have reached the

minimum required score. Thus, GAPI/Novedades has been selected and negotiations

is ongoing process;

The preparation and participation on climate change adaption capacity training

carried out by Dr. Luís Artur, from Eduardo Mondhlane University, whereby 35

staff have participated (19 district extension agents, 3 provincial focal points, 4 PMT

staff, 3 CEPAGRI staff, 4 MINAG staff and 2 Meteorological station staff);

The contracting process of recruitment of Land Tenure Security Service Provider

(LTSSP) is at a very early stage. No Objection from IFAD has been granted for the 5

shortlisted bidders that have expressed their expression of interest. The next steps for

the coming months will be the RFP for Technical and Financial;

12




Sub-component 5.1 Institutional Support

5.1.1 MSc on adaptation to climate change number 1 CEPAGRI xxx xxx xxx 25%

Ongoing and on schedule. The two CEPAGRI

staff have been selected to attend tis course. In

August they will starting with English course in

South Africa before the actual course in Climate

Change.

5.1.2

Short term training courses on: M&E and KM, value

chain, GALS Methodology, English, climate change,

financial management and land tenure security

number 15 CEPAGRI xxx xxx xxx xxx 50%Ongoing and on schedule. Training on M&E and

Financial Management have been carried out.

5.1.3Training in climate change for CEPAGRI/PMT, focal

points and LSPs number 1 CEPAGRI xxx xxx 100%

Ongoing and on schedule. Backstopping to the

project was provided for

5.1.4 Recruitment of horticulture LSP number 1

CEPAGRI, INIR,

IIAM, DNSA e

DPA's

xxx xxx xxx xxx 50%

Ongoing but behind schedule. Following IFAD

No objection provided on 31 January 2014, the re-

launching of tender was carried out. The

evaluation has been carried out as well. Four

proposals were received and only

GAPI/Novedades Consortium with 77.21 points

followed by OIKOS/LUPA with 73.13 points have

reached the required score.

5.1.5Finalization of the recruitment process of the Cassava

LSPnumber 1 CEPAGRI,DPAs xxx xxx xxx xxx 100%


recruiting the LSP for cassava has been finalised

and SNV/Mahlahle are now working

5.1.6Finalization of the recruitment process of the Red meat

LSPnumber 1 CEPAGRI,DPAs xxx xxx xxx xxx 100%


recruiting the LSP for Red Meat has been

finalised and SNV/IlRI are now working

5.1.7

Development of the institutional development plan,

communication strategy, and capacity building plan for

Agribusiness education institutions

number 3 CEPAGRI xxx xxx 0 No yet due

5.1.8 Elaboration of the PROSUL gender strategy number 1CEPAGRI,DNEA,DE,

DPAs,PLSxxx xxx xxx xxx 25% Ongoing but behind schedule.

5.1.9 Conducting quantitative baseline survey number 1CEPAGRI,DE,DPAs,

SDAEsxxx xxx xxx xxx 75%

Ongoing but behind schedule. The data

collection has been finalised. Currently the

process of data analysis is underway and the

report is expected in August 2014

5.1.10

Development of Project communication and image

activities (Maps, Banners, brochures, logo, Tv, radio,

etc)

number 1 CEPAGRI xxx xxx xxx xxx 50%

Ongoing and on schedule. Some banners and

brochures were made for the Training on Climate

Change and Gender.

5.1.11

Technical Assistance for the backstopping to the

Financial Management on the Tompro installed at

CEPAGRI Delegation

number 1 CEPAGRI xxx xxx xxx xxx 100%Ongoing and on schedule. Training on Climate

Change and Gender has been carried out.

Sub-component 5.2 Land Tenure Security

5.2.1 Recruitment of Land Tenure Security Sevice Provider number 1CEPAGRI,DNTF,DP

ASxxx xxx xxx xxx 50%

Ongoing and on schedule. No Objection from

IFAD has been granted for the 5 shortlisted

bidders that have expressed their expression of

interest. The next steps for the coming months

will be the RFP for Technical and Financial

5.2.2 Recruitment of the Land Tenure Advisor number 1 CEPAGRI, DNTF xxx 25%Ongoing but behind schedule. The ToR

elaborated and the tender launched

5.2.3 Recruitment of GIS service provider number 1 CEPAGRI xxx xxx xxx 25%Ongoing but behind schedule. The ToR

elaborated and the tender launched

5.2.4 Participatory appraisal on land tenure security situation number 1

PSPT,DNTF,

CEPAGRI,DPAs,

SDAEs

xxx xxx 0 Ongoing and on schedule.

NrPhysic

Target

Implementing

Agenciy/

Institutions


QuarterAchievement


13




5.3.1 Training on GALS approach for LSP for extension agents number 25 CEPAGRI,DE, DNEA xxx xxx 25%

Ongoing and on schedule. The preparation for

the training on GALS approach is at its advanced

stage. This training is expected to take place in

September 2014.

5.3.2 Participation in national and international events number 4 CEPAGRI xxx xxx xxx xxx 0 No yet due

5.3.3Exchange visits and experiences with other similar

projects within the regionnumber 2 CEPAGRI xxx 0 No yet due

5.3.4 External audit to PROSUL number 1 CEPAGRI xxx 0 No yet due

5.3.5Preparation and coordination of Project follow-up

Missions (e.g: supervision, support)number 4 CEPAGRI, FIDA xxx xxx xxx xxx 25% Ongoing and on schedule.

5.3.6Joint monitoring with Key MINAG institutions and other

SC membersnumber 2

CEPAGRI, DNs,

DPAs, SDAEsxxx No yet due

5.3.7

General operating activities and execution of related

expenses (e.g: Salaries, allowances for staff of PMT, focal

points, counterparties, health insurance etc.)

lumpsu

mCEPAGRI xxx xxx xxx xxx 50% Ongoing and on schedule.

5.3.8

General operating activities and execution of related

expenses (Office supplies, communications, maintenance

of means, insurance)

lumpsu


5.3.9General operating activities and execution of related

expenses (Monitoring of general activities)

lumpsu


5.3.10 Oganize Project Steering Committee (PSC) meeting number 2 CEPAGRI xxx xxx 50% Ongoing and on schedule.

5.3.11Thematic meetings with institutions of MINAG, DPAs,

SDAEs and platformsnumber 3

CEPAGRI,DNs,DPA

s, PLSxxx xxx xxx xxx 0 No yet due

5.3.12 Planning retreat number 1 CEPAGRI xxx 0Not yet due. It is expected to be carried out

September/October

5.3.13 Finalize the estblisment of the M&E System number 1 CEPAGRI xxx xxx xxx 100%

Completed. The Sytem has been installed at PMT

and is being used. Shortly is expected to be

installed for the LSP sellected

5.3.14Development of Performance Assessment guidelines for

PMT number 1 CEPAGRI xxx xxx

NrPhysic

Target

Implementing

Agenciy/

Institutions


QuarterAchievement


14

3 FINANCIAL PERFORMANCE

33. The planned budget for 2014 is 169,985,575.00 MZN (about 5.7 million USD). Actual

disbursement for the period under review was 52,253,362.21 MZN (1,7million USD),

which corresponds to 31% of the total planned budget.

34. An analysis of expenditure by Component is provided in Table 1. Compared to budget,

expenditure performance for the components accounted as follows: 14% for Institutional

Support and Project Management. For the rest of components it has been registered very

insignificant execution well below 0.5%. Overall, the total expenditure for the period under

review was 6,588,443.00 MZN equivalent to 219,615.00 USD, which represents only 3%

over the planned budget of 169,985,575.00 MZN (about 5.7 million USD).

35. However, it is important to stress that this low level of expenditure is attributed to the

factors highlighted in this progress report, namely; the delays in the operationalization of E-

SISTAFE and Project decentralization, the lengthy process of recruiting the LSPs and

replacing the previous financial manager coupled with a delay in the disbursement of funds.

The funds were received only in June 2014. Consequently, apart from very few expenditure

categories like salaries and allowance that were paid retroactively but in June, meaning that

in real terms the expenditure registered is for June. Nevertheless, this situation is expected to

improve in coming months.

Table 2: Expenditure by Component January - June 2014

Code COMPONENT

Planned budget Vs Executed (MZN) %

Planned Budget Actual Expenditure

C1 Horticulture 82.194.685 163.587 0,20%

C2 Cassava 15.246.717 3.423 0,02%

C3 Red Meat 27.825.469 50.763 0,18%

C4 Financial Services 1.798.800 0 0,0%

C5 Institutional Support

and Project

Management 42.919.904 6.370.670 14,0%

Total 169.985.575 6.588.443 3,00% Source: Financial and Administration Unit as at 30th June 2014.

15

4 IMPLEMENTATION SUPPORT AND SUPERVISION MISSIONS

36. During the period under review, the project had one supervision mission that took place

between 31 March - 11 April 2014, in which the main objective was to review the

implementation status of PROSUL, provide support for an effective implementation of

project activities, identify constraints and to agree on solutions.

37. The mission composition was as follows: Espen Berg (Team Leader – IFAD), Antonio Rota

(Livestock Expert – IFAD), Michael Hamp (Rural Finance Expert – IFAD), Stephen

Twomlow (Climate Adoption Expert – IFAD), Elizabeth Ssendiwala (Gender and Youth

Expert – IFAD), Elisa Distefano (M&E and KM Expert – IFAD), Steven Jonckheere (Land

Tenure Expert – IFAD), Ana Zandamela (Financial Management and Procurement Support

– IFAD), Jelle Tas (Value Chain Expert – Consultant), Alaudio Chingotuane (Financial

Management and Procurement Expert – Consultant).

38. At the end of mission an Aide-Memoire representing the findings and recommendations of

the Mission was discussed and agreed at a wrap-up meeting held on 11 April 2014 chaired

by CEPAGRI Director Mr. Abdul Cesar Mussuale. Furthermore, a matrix of agreed action

was produced. For the status of its implementation refer to annex 2.

16

5 KEY CONSTRAINTS AND ACTION REQUIRED

39. During the period under review the project confronted with some constraints and challenges

while implementing activities. The most critical one was related to the lack of funds due to

some delays on 2nd disbursement as it was anticipated in the Letter to the Borrower, that

“projects using CUT and e-SISTAFE, the amount of the initial advance to the Designated

Account will be based on the subsequent two quarters’ worth of cash-flow requirements, in

line with the approved AWPB. Consequently, thereafter, from the second withdrawal

application, replenishment of financing proceeds for each advance as applicable will be

based on the succeeding quarterly cash flow requirements, minus the project accounts’ cash

balance (both designated account and advance accounts) at the previous quarter end, plus

the advance” but to flow or channeled through functioning e-SISTAFE.

40. Furthermore, the delay in the 2nd disbursement of funds was exacerbated by the need to

fulfill the position of the Financial Manager. This position was only accomplished in

May/June.

41. Clearly, external factors that influenced project implementation during the period under

review include:- number of activities that were not implemented as scheduled due to the late

availability of funds but also as a result of complexity in the recruitment of Lead Service

Providers for the Value Chains.

42. However, since the process of getting the LSPs on board are almost finalized, the PMT is

determined to move forward and expedites the implementation of activities planned for.

Thus, in the remaining months until December 2014, the PMT plans to concentrate on the

key activities that are ongoing but behind schedule as well as activities that are due but not

started.

17

Annexes

18

Annex 1: PROSUL Key Partners and Project Staff

Project Steering Committee (PSC)

The PSC is the steering committee that provides policy support and overall guidance to the

project. It is expected to meet at least twice in a year (during the first quarter and last

quarter).The composition of its members is as follows:

1. The Permanent Secretary of the Ministry of Agriculture (Chairman)

2. MINAG National Directors of DNSA, DNSV, IIAM, INIR, CEPAGRI, DNEA, DE;

3. National Director of INAM and the Southern Regional Delegate

4. Agriculture Provincial Directors of Maputo, Inhambane and Gaza provinces,

5. Representatives of Farmer Group Organizations at local and national level,

6. Private sector,

7. Lead Service Providers (LSP),

8. Representatives of the Financial Intermediary Institution and Micro (Financial)

institutions

Project Management Team (PMT)

The PMT has overall responsibility for the project administration and management, thereby

ensuring that the project is implemented in accordance with the Grant and Loan Agreements and

that it is consistent with the Government of Mozambique policies and regulations. In addition,

the CEPAGRI/PMT supervises and advises all implementing agencies and Lead Service

Providers for the three value chain (Horticulture, Cassava and Red Meat) in the project.

The PMT is not yet completed the recruitment of all key project staff. Thus, the PMT is currently

consisting by the following members:

Nr Position Title/Name

1 Project Coordinator Mr. Daniel Ozias Mate

2 Gender Specialist Mr. Francisco António de Lisboa

3 Agribusiness Specialist Mr. Joel Inácio Cossa2

4 Financial Manager Mrs. Natércia Cossa3

5 Planning, M&E and KM Officer Mr. Rufino Joaquim Duvane

6 Financial Assistant Mr. Júlio Marcelino Macaco

7 Procurement Officer Mrs. Beatriz Júlio Muchate4

8 Project Assistant/ Secretary Mrs. Rachida Jafar Abdul

2 His contract with CEPAGRI was terminated in March 2014 and the announcement for his replacement has been launched recently 3 She has joined the project in June 2014, replacing Mr. Paulino Bernardo 4 She has been recruited recently (July 2014)

19

CEPAGRI Counterpart Staff

Nr Position Title/Name

1 Horticulture/ M&E and KM Mr. Egídio Mutimba5

2 Cassava Value Chain Mrs. Pureza Baptista Monjane

3 Red Meat Value Chain Mr. Manuel António Langa

4 Financial Management Dep. Mrs Teresa Mangue

Mr Salomão Budula and

Mrs Vanda Mucavele

Nr Position Name

1 Cassava Value Chain SNV/ Malhalhe

2 Red Meat Value Chain SNV/ IRLI

3 Horticulture Value Chain Not recruited yet

4 Land Tenure Service Provider Not recruited yet

5 GIS Service Provider Not recruited yet

5 He has been award sponsorship by the project to attend a master degree on Climate Change

20

Annex 2: 31 March to 11 April 2014 Agreed Action

Supervision Mission Recommendation Actions

# Agreed action Responsibility Agreed date Status as at 30th June

1 Activate execution of funds

in e-SISTAFE at PROSUL

CEPAGRI /

MINFIN

Apr 2014 Completed and in use

2 Finalize Horticulture LSP

selection and negotiations

PMT July, 2014 Almost finalised

3 Irrigation tender evaluation PMT June, 2014 Finalised. The tender was

cancelled. It was agreed with

IFAD that CEPAGRI and

INIR would explore the

possibility of engaging

Academic Institutions

4 Irrigation study PMT Aug. 2014 Not started

5 Contracting Irrigation Civil

works

PMT Nov. 2014 No objection provided to

contract a company to

undertake maintence works at

the Regadio do Baixo

Limpopo

6 Master plan approved and

endorsed

MINAG April, 2014 Almost finalized Submitted to

MINAG National Directorates

7 Launch tender for Scoping

Study

PMT July, 2014 Not started.

8 Finalize Cassava LSP

negotiation

PMT May, 2014 Completed

9 Explore support for new

processing platform

PMT May, 2014 Ongoing

10 Sign contract between

CEPAGRI and SNV/ILRI

Consortium

CEPAGRI,

SNV/ILRI

April 2014 Completed

11 Finalize TORs for PRA

(including HIV, Climate

Change and Gender

appraisal)

CEPAGRI,

SNV/ILRI

April 2014 Finalised

12 Undertake PRA activities

for the RMVC component

SNV/ILRI April 2014 Almost completed

14 Finalize TORs for the

feasibility study on

slaughtering facilities

(including alternative

business options)

CEPAGRI May 2014 Finalised

15 Undertake the feasibility

study for establishing a new

Consultant July 2014 Ongoing

21


slaughterhouse

16 Start RMVC activities

according to the SNV/ILRI

work plan

SNV/ILRI July 2014 Ongoing

17 Explore potential

partnership with

DANIDA/GAPI on the

Agro-Investe LGF

PMT / IFAD May, 2014

18 Explore potential

partnership with the multi-

donor Financial Sector

Deepening Trust Fund

PMT / IFAD May, 2014

19 Hire consultant to develop

the details of the Innovation

and outreach facility

PMT June, 2014 Ongoing

20 Finalise the recruitment of

the Financial Manager

PMT April , 2014 Finalised

21 Finalise the recruitment of

the Financial Service

Expert, Procurement officer

and Agribusiness specialist

PMT July, 2014 Procurement officer recruited,

Agro-business specialist

ongoing process

22 Recruit the Agribusiness

and Implementation support

consultant

PMT April, 2014

23 Develop a performance

assessment system

PMT July, 2014 It will be done together with

the Update of PIM

24 Clear TOMPRO backlog PMT June , 2014 Ongoing

25 Improve CMFs PMT June, 2014 Ongoing

26 Insure PMT staff PMT June, 2014 Ongoing

27 Transfer procurement

documentation to Xai-Xai

PMT June, 2014 Finalized

28 Prepare Financial reports for

2013

PMT May, 2014 Finalised and submitted

29 Submit WA2 (pending

hiring of Financial

Manager)

PMT May, 2014 Finalised and submitted

30 Identify staff member for

post-graduation training in

climate change adaption

CEPAGRI June, 2014 Identified and ongoing

process

31 Carry out climate change

adaption capacity training

for LSPS

PMT and

consultant

June, 2014 Carried out

32 Complete rehabilitation of

two meteorological stations

PMT and

NDMA

July, 2014 Ongoing

22


33 Update MINAG gender

strategy

PMT Oct. 2014 Ongoing

34 Develop PROSUL gender

strategy

PMT July, 2014 Ongoing

35 Develop gender module

GALS training

PMT/Consultant July, 2014 Ongoing

republic of mozambique ministry of agriculture centre …

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