PROJECT Development and Preparation
Request for Project Preparation Grant (PPG)
UNDER THE Least Developed Countries Fund
*
GEFSEC Project ID:
IA/ExA Project ID:
Project Type: Full-sized Project
Country: Malawi
Project Title: Climate Adaptation for Rural Livelihoods and Agriculture (CARLA)
GEF IA/ExA: African Development Bank
other project Executing Agency(ies): The Environmental Affairs Department (EAD) in the Ministry of Mines, Natural Resources and Environment and the Department of Irrigation (DoI) in the Ministry of Irrigation and Water Development (MIWD)
Duration (Project Preparation): 8 months
GEF Focal Area: Climate Change – Adaptation
GEF Focal Area Strategic objectives: N/A
GEF Operational Program: Least Developed Countries Fund (LDCF)
PIF Approval Date: 3 may 2007
Expected Starting Date (PPG): October 2007
Expected PPG completion Date: May 2008
EXPECTED WP APPROVAL DATE: July 2008
Expected DATE CEO Endorsement: September 2008
Estimated Starting Date (project): November 2008
Financing Plan (USD)PPG / Project* / Total
GEF / 274,475 / 3,000,000 / 3,274,475
Co-financing: / (details provided in Section C : Table d) co-financing)
GEF IA/ExA / 200,250 / 21,675,000 / 21,875,250
Government / 2,558,000 / 2,558,000
Others / 72,000 / 72,000
Co-financing Subtotal / 200,250 / 24,305,000 / 24,505,250
Total / 474,725 / 27,305,000 / 27,779,725
Record of endorsement on behalf of the Government:
R.P. KabwazaDirector of Environmental Affairs, Ministry of Mines, Natural Resources and Environment, GEF operational focal point, UNFCCC focal point / Date: 20 November 2006
(Separately attached).
This request has been prepared in accordance with GEF policies and procedures and meets the GEF criteria for Project Preparation Grant.
Name & Signature
IA/ExA Coordinator
IA/ExA Coordinator: Mr. Daniele Ponzi / Project Contact Person
Mr. Daniele Ponzi
Date: 1 April 2007 (rev. 21 August 2007) / Tel. and email: +216-71 10 2338,
PART I - Project Information
A - Project Summary
More than 90% of the people of Malawi, mainly resource-poor rural communities, are predominantly engaged in subsistence rain-fed agriculture. Currently about 60% have insecure access to food on a year-round-basis, with female- and children-headed households the most vulnerable. Extreme weather events due to climate variability, and low capacity to adapt to the adverse impacts of climate change aggravate food security risks. This situation is further compounded by rapid environmental degradation as a result of agricultural expansion to marginal lands and deforestation, inadequate knowledge and skills in the productive use and management of land and natural resources, inadequate access to land and credit, poor health services, and gender inequalities. By better managing the climate risks that exacerbate all of these problems, the proposed project addresses one of the core challenges identified by the Government’s Malawi Growth and Development Strategy (MGDS) 2006–2011, contributes to achieving and sustaining the Millennium Development Goals, and fosters food-security, sustainable economic growth and improved rural livelihoods.
Malawi’s 2005 National Adaptation Programme of Action (NAPA), based on a multi-stakeholder consultative process, stresses urgent and priority action to “Improve community resilience to climate change through the development of sustainable rural livelihoods” and “Improve agricultural production under erratic rains and changing climatic conditions”. The proposed LDCF project will address these priority actions by implementing climate change adaptation measures to improve resilience and adaptive capacity in vulnerable districts in Malawi.
The proposed project will build on baseline activities supported by the African Development Bank’s Smallholder Crop Production and Marketing Project (SCPMP). The SCPMP baseline project will have two key components: irrigation development and farmer support activities. The SCPMP will work to promote intensification and diversification of the existing agriculture systems and improvement to the marketing system, which will significantly increase production, productivity and incomes of the small farmer whilst improving household nutrition and environmental management of natural resources.
Building on the baseline of the SCPMP, the proposed LDCF project will support:
1. Investments aiming to improve agricultural, land management and natural systems as well as rural livelihoods through targeted adaptation interventions, fostering adaptation of communities, individuals and the private sector. It is envisioned that the majority of LDCF support will be allocated to this component.
2. Strengthen national early warning systems, by improving the capacity of the Department of Meteorological Service of Malawi to generate and apply meteorological information and products to mitigate and minimize the negative impacts of extreme weather and climate events such as droughts and floods
3. The creation of an enabling environment for climate risk management to maximize positive impacts of investments, sustain their impacts in the long term, and lay the foundation for replication of best practices beyond the direct project activities. Activities under this component will address (i) plans, policies, legislation/regulations, and resource allocation; (ii) institutional coordination; (iii) generation and tailoring of knowledge on climate risk management for specific user groups (particularly in the context of the investment component); and (iv) awareness raising.
Project Preparation funding is requested for an 8-month analysis, stakeholder consultation and project preparation process culminating in the submission of a full-size LDCF project. The PPG aims to assess current vulnerability and adaptation experiences in the project areas; review existing knowledge on climate-related risks; undertake a gap analysis in terms of capacities and planning systems for integrating adaptation into regular work of key stakeholders; develop a priority-driven consultation and participation strategy for activities to be implemented during the full-size project; and provide specifications for the adaptation investments under component 1. The result will be a full-size LDCF project developed and submitted for LDCF financing.
Additional information on project scope, intervention strategy and project design is given in the Annex below.
B.- country ownership[1]
1. country eligibility
(i) LDC status: Malawi is a LDC Party to the UNFCCC
(ii) Date of UNFCCC ratification: 24th April 1994
(iii) NAPA status: Completed June 2005
2. country drivenness
The proposed project addresses one of the core challenges identified by the Government’s Malawi Growth and Development Strategy (MGDS) 2006–2011. The MGDS is aimed at achieving and sustaining the Millennium Development Goals (MDGs) and making Malawi a hunger free nation through fostering sustainable economic growth and the creation of wealth with fair and equitable distribution. The MGDS recognizes that agricultural development will drive medium term growth by expanding and diversifying production. The agriculture sector is expected to contribute to sustainable economic growth that is considered central to Malawi’s ability to reduce poverty, achieve the MDGs and gain self-sufficiency. The proposed project activities are also well anchored in the Government’s New Agriculture Policy, National Irrigation Development Policy and the Decentralisation Policy. None of these policy documents refer to climate risk. Thus the project will contribute to the achievement of the goals of the MGDS and the Agricultural Sector Strategy by specifically addressing the need to enhance climate risk management capacities.
Agriculture and irrigation are the responsibility of the Ministry of Agriculture and Food Security (MoAFS) and the Ministry of Irrigation and Water Development respectively. The MoAFS has six departments and concentrates on policy formulation and regulation, coordination of training and collaboration with other stakeholders in the sector. Activities of various departments include farmer awareness raising, formation of farmer groups, conducting farmer demonstrations and linking farmers to credit institutions.
Malawi is advocating a sustainable livelihood approach to development[2] that is intended to be holistic, forward looking and sustainable. The Sustainable Livelihood approach recognizes the fact that developmental issues should consider not only the needs of the current generation, but also the needs and sustenance of the future generation, and consists of an integrated package of policy analysis, technology and investment strategies. The use of appropriate decision making tools applied to and building on adaptive strategies of communities is also promoted.
In spite of low national capacities, Malawi has undertaken measures to implement the UNFCCC. The National Environment Action Plan (NEAP) and other legislation such as the National Environmental Policy (1996, Revised 2004), and Environmental Management Act (1996) provide the basis for addressing environmental issues.
The Initial National Communication of Malawi to the UNFCCC and a Vulnerability and Adaptation Assessment Report were completed in 2002. This document stresses the importance of the agriculture sector in addressing climate change, including stressing “integrated nutrient management systems that reduce environmental pollution and optimise crop, pastures and livestock productivity under low and variable climatic conditions”.
Some measures and strategies exist to deal with the adverse effects of extreme climatic events. A Department of Disaster, Relief and Rehabilitation was established to handle most aspects of the effects of extreme weather events and other natural disasters. Non-Governmental Organisations (NGOs) and Faith Groups also have programmes for such events. Malawi has a Flood Warning System based in the Ministry of Irrigation and Water Development. In addition the Meteorological Department provides weather warnings to the general public. The Department of Meteorological Services of Malawi is responsible for providing accurate and timely weatherand climate advisories, including early warnings on droughts, floods. The National Disaster Management Plan for Malawi includes mitigation measures for drought and flood disasters but has no specific adaptation measures. (First National Communication, Malawi Environmental Affairs Department, 2002)
The Department of Meteorological Services has in the past operated monitoring and early warning systems in collaboration with other government institutions. These systems were:
· Flood Forecasting and Warning System for the lower Shire, in collaboration with the Water Department
· Early warning System for Food Security, in collaboration with the Ministry of Agriculture and Food Security
· Tropical Cyclone Monitoring and Early Warning System, in collaboration with the commission for disaster preparedness, relief and rehabilitation
· Drought Monitoring and early warning System, in collaboration with the SADC Drought Monitoring center in Harare
Of the four systems only the Tropical Cyclone and Drought Monitoring Systems are still operational, but at low key.
Cooperation between the various institutions working on issues related to climate risk, is currently limited. As a result of the adverse impacts of climate variability on the economy of Malawi, especially over the last ten years, the Malawian Government has created the Department of Disaster, Relief and Preparedness, as its commitment to specifically deal with natural disasters and calamities, especially droughts, floods, landslides and insect pests outbreaks (such as locusts). This highlights the importance that the Malawi government attaches to initiatives aimed at dealing with climate-related disasters and calamities among the most vulnerable communities in rural areas. The level of coordination between ministries is limited.
The government of Malawi completed its National Adaptation Programme of Action (NAPA), in June 2005. The NAPA assesses the vulnerabilities of eight major economic sectors, and identifies priority areas that warrant urgent and immediate adaptation. The NAPA process involved a wide consultation with various stakeholders in the public and private sector organizations, including local leaders, religious and faith groups, academicians, non-governmental organizations (NGOs), civil society, and highly vulnerable rural communities throughout the country. The NAPA notes that droughts and floods are increasing in frequency, and are adversely impacting on food and water security, water quality, energy and sustainable livelihoods of rural communities. It identifies a number of high priority adaptation actions related to the agriculture sector and the livelihoods of rural communities. The proposed project addresses some of these priority areas, directly responding to Malawi’s commitment to action on adaptation in this sector.
c - Financing
a) Estimated project cost (for all tables, expand or narrow table line items as necessary)
Project Components/Outcomes
/Co-financing ($)
/ GEF ($) / Total ($)COMPONENT 1: INVESTMENTS to “climate proof” and improve agricultural, land and water management & natural systems as well as rural livelihoods / 2,100,000 / 2,100,000
COMPONENT 2: ENABLING ENVIRONMENT, including strengthening policy, legislative, and institutional frameworks, capacity building, information dissemination and multi-stakeholder dialogue / 550,000 / 550,000
5. Project management budget/cost* / 350,000 / 350,000
Total project costs / 3,000,000 / 3,000,000
* This item is the aggregate cost of project management
b) Co-Financing (provide details of all the co-financing sources for the entire project)
Name of Co-financier (source) / Classification / Type / AmountConfirmed ($) / Unconfirmed ($)
AfDB (ADF Grant) / Exec. Agency / In Cash / 21,875,000
Government of Malawi / National Government / In Cash / 2,558,000
Beneficiaries / Beneficiaries / In Cash / 72,000
Total co-financing / 24,505,000
D - Timetable for the project and preparation activities
Starting Date / Completion DateProject Preparation Activities / October 2007 / May 2008
Project Implementation / November 2008 / October 2013
E - Institutional Coordination and Support
1. Core Commitments and Linkages
The African Development Bank has a long history of involvement in Malawi, and has lent on over 88 projects totalling over 500 million USD. In descending order, total net signed loan/grants (completed and on-going projects) have funded the following sectors: Agriculture (28.0%), Transport (20.0%), Social (17.3%), Water (13.3%), Multi Sector and Power (equal on 5.3%), Communications and Industry (equal on 4.0%) and Finance (2.7%). Some 54 approved projects (72.0% of the total approved) have been completed. Twenty-one operations are on-going including Agriculture (32.6%), Social (31.8%), Transport (19.9%), Multi (8.8%), and Water (7.0%) (Malawi Country Portfolio Review, 13 April 2006)
Relevant agricultural, livelihood and water sector projects include:
1. Rural Income Enhancement Project (10.12.97)
2. Macadamia Smallholder Development Project (15.7.98)
3. Smallholder Irrigation Project (26.11.98)
4. Horticulture and Food Crops Development Project (15.12.98)
5. Smallholder Outgrower Sugarcane Production Project (15.12.99)
6. Lake Malawi Artisanal Fisheries Development Project (29.1.03)
7. Customary Land Reform and Sustainable Livelihoods Study (16.9.03)
8. Integrated Water Supply and Sanitation for Central Region Water Board and Northern Region Water Board Project (5.12.01)
The Bank’s Malawi strategy, the Country Strategy Paper (CSP), has three core principles:
1. Support the implementation of the new MGDS to achieve its goals and help eventually lead to the attainment of Malawi’s Vision 2020 goals and MDGs;