Tanzania - Second Additional Financing for Agriculture Sector Development Project : environmental and social management framework

Public Disclosure Authorized E2421 THE GOVERNMENT OF TANZANIA AGRICULTURAL SECTOR DEVELOPMENT PROGRAM Public Disclosure Authorized (ASDP) One voice among many voices of Tanzanias women farmers with access to irrigation services. a I do not consider myself poor. I am able to assist my husband with all our needs. I grow wheat for my family's food security needs and rice as my main cash crop. We used to live in a mud house, but now we live in a brick house with a secure and leak free roof. I am strongly considering sending my children to a private secondary school in our area, if they are not granted Public Disclosure Authorized acceptance into the state school. All this, thanks to the Lower Moshe Irrigation Project. I could raise my farm income even more, if I had access to more irrigated land with enough water. I also need access to market/crop price information and micro-credit so that I can further raise my income from processing/milling my grains which I will then sell at a higher price. Sadia Danga From Lower Moshi Irrigation Project, Moshi, Kilimanjaro Region, Tanzania (August 2005). ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK Public Disclosure Authorized (FINAL DRAFT AUGUST 2005) 1/112  TABLE OF CONTENTS Page no. 1. Executive Summary. . 3 2. Introduction. .. 11 3. Description of the Proposed Program. ..12 4. Baseline Data. ..18 5. Description of World Bank Environmental and Social Safeguards Policies 3 .. 8 and Triggers. 6. Description of the Administrative, Policy, Legislative and Regulatory Framework. ..46 7. Determination of Potential Environmental and Social Impacts. ..57 8. Institutional Assessment and Framework for Environmental and Social Management. ..65 9. Environmental and Social Planning, Review and Clearing Process for ..74 Funding of investments in the DADPs under the ASDP. 10. Monitoring Plan. ..80 11. ESMF Implementation Budget ..86 Annexes Annex A Verification of Safeguards Polices triggered by sub projects. ..87 Annex B Outline for an ESIA report. ..92 Annex C Guidelines for preparing an Environmental and Social Management Plan ..95 Annex D Environmental and Social Screening Form .96 Annex E Generic Mitigation Measures for Adverse Impacts ..101 Annex F Generic Guidelines for preparing and implementing a public consultation ..103 plan for an ESIA Annex G Environmental and Social Appraisal Form ..105 Annex H Guidelines for Assessment of Dams and preparation of a Dam Safety Measures Report ..109 Annex I Environmentally Sensitive Areas ( ESA's) and Ecosystems in Tanzania .. 112 2/112 1.0 EXECUTIVE SUMMARY In August 2001, The Government of Tanzania (GoT) approved the Agricultural Sector Development Strategy (ASDS) which envisages an agricultural sector that, by 2025, is modernized, commercial, highly productive and profitable, and utilizes natural resources in a sustainable manner. The ASDS has identified five strategic issues: * Strengthening the institutional framework. * Creating a favorable environment for commercial activities. * Clarifying public and private sector roles in improving support services. * Strengthening marketing efficiency for inputs and outputs, and * Mainstreaming planning for agricultural development in other sectors. The GoT with financial assistance from the World Bank, International Fund for Agricultural Development (IFAD) and other bilateral donors is planning to implement the Agricultural Sector Development Program (ASDP), to serve as the overall framework and operational process for implementing the ASDS. The ASDP also provides GoT, especially the four ASLM's' with a sector-wide framework for overseeing the institutional reforms and investment priorities. The Program Development Objectives of the ASDP are; (i) Sustained 5 percent annual growth of agricultural GDP (averaged over a rolling three year period) through improved productivity and profitability of the sector and (ii) Higher farm productivity, profitability and incomes through improved access to and use of relevant agricultural knowledge and technology by farmers; increased district level investment; and improved market development. To achieve these objectives, Phase 1 of the ASDP is structured into two components: * Component 1 - National Level Support * Component 2 - District Level Support Component 1. National Level Support: The program will provide funding through the strategic plans of the agriculture line ministries, initially for support to agriculture research (through the zones), to larger scale irrigation based on demand from the districts, and for market development. Component 2. District Level Support: The program will provide funding through District Agricultural Development Plans (DADPs) for agricultural investments, support for improvements of LGA core regulatory functions, and support to reforming the agricultural extension system. Consistent with the local government capital development grant transfer system, districts will be assessed on performance against progress on these elements which will determine the level of funding they can access from the program, which will take the form of three formula-based block grant transfers which form the sub-components of the district level support. ' The ASLMs include the three sector line ministries: The Ministry of Agriculture and Food Security (MAFS), Ministry of Water and Livestock Development (MWLD) and Ministry of Cooperatives and Marketing (MCM), as well as the President's office - Regional Administration and Local Government (PO-RALG) 3/112 Development activities at the national level are to be funded based on the strategic plans of the line ministries while activities at the district level are to be implemented by local Government Authorities (LGAs), based on District Agricultural Development Plans (DADPs). The DADPs are to be part of the broader District Development Plan (DDP).The ASDP is to be supported through a multi-donor "basket funded" arrangement to prevent high transaction costs of parallel programs. The basket would move towards budget support and, through detailed design of the program, would ensure improved efficiency of these sector expenditures. Efforts would be made to ensure that the "basket" abides by the principles of the budget process to ensure greater sustainability of the program. The ASDP is designed as a three phase program with Phasel, 2 and 3 each planned for three years. However, since the exact locations of the areas where DADP sub projects are to be located was not known at the time the ASDP was being prepared, the Laws of the United Republic in Tanzania and Operational Policy 4.01 of the Bank requires the Government of Tanzania (GoT) to prepare an Environmental and Social Management Framework (ESMF) which is to establish a mechanism to determine and assess future potential environmental and social impacts of all program activities to be financed under ASDP, and then to set out mitigation , monitoring and institutional measures to be taken during implementation and operation of the program activities to eliminate adverse environmental and social impacts, offset them, or reduce them to acceptable levels. Furthermore, the GoT is also required to prepare a Resettlement Policy Framework (RPF) to address the needs of those who might be affected when an operators operations causes the involuntary taking of land and other assets resulting in: (a) relocation or loss of shelter, (b) loss of assets or access to assets (c) loss of income sources or means of livelihoods, whether or not the affected person must move to another location. The RPF has been prepared as a stand alone and separate document. The GoT is further required to disclose both documents (the ESMF and the RPF) in- country as two separate and stand alone documents so that they are accessible by the general public, local communities, potential project-affected groups, local NGO's and all other stakeholders and also at the Infoshop of the World Bank and the date for disclosure must precede the date for appraisal of the program. The key highlights in this ESMF are as follows; * Detailed and comprehensive environmental and social baseline data which will provide the environmental and social management process with key baseline information when identifying adverse impacts. The information contains data on Tanzania's bio-physical environmental features such as its ecosystems, geology, hydrology in terms of ground and surface water resources, major and sensitive wetlands, flora and fauna. On social baselines the report discusses the main features of Tanzania's demographics, public health features and poverty. * A thorough review of the World Banks Safeguards Policies is made. The triggered policies are: 4/112 .s. ' ,-v-R.- . ._ .> ~~~~~~-~ . , .,-  The DAOP 4.01 Environmental Assessment - OP 4.09 Pest Management - OD 4.12 Involuntary Resettlement - OP 4.37 Safety of Dams - OP 7.50 Projects on International Waters Table 5.1 presents a summary of the requirements to comply with these polices. The report states that other Bank policies may apply and includes a summary in Annex A of all the Bank Safeguards Policies that are likely to apply to the sub projects. t The administrative, policy, legislative and regulatory framework in Tanzania for the Agriculture Sector in particular and for environmental management in general is presented in chapter 6.0. t Generic potential adverse environmental and social concerns and impacts from anticipated program/ DADP sub project activities with root and immediate causes is presented in detail in Section 7.0 E The roles and responsibilities of key institutions and players for the purposes of this ESMF are discussed in Chapter 8.0 and they are; c District Level Authorities The District Agricultural Development Plans (DADPs), which would be based on the District Agricultural Development Strategy (DADS) and would be part of the overall District Development Plan (DDP), and which would provide a comprehensive plan for LGA uses of resources. The DADP's are to be approved by the respective District Councils. The DALDOs and District Environmental Coordinators on their own, or when supporting the beneficiaries of the DADPs such as farmer groups (who in turn can be assisted by extension services) will be responsible ; (i) for complying with all national laws regarding the environment and with all social/poverty guidelines, parameters and targets set by the GoT, and of all triggered World Bank Safeguards policies, (ii) to implement their DADP sub project activities according to and consistent with the provisions of this ESMF, implementing, inter alia, all appropriate mitigation measures identified in their completed ESIA and/or environmental and social management plan (ESMP) into the construction planning cycle, technical and engineering designs and drawings, and civil works contracts, etc. (iv) to ensure that these mitigation measures are complied with during construction and post construction (i.e. operations ) stages of their activities, by self monitoring of their activities and by periodically reporting to their respective District Environmental Coordinator and , (v) to maintain an adequate budget to implement the appropriate maintenance procedures and practices for their operations , to ensure relevant mitigation measures identified in the ESIA and/or environmental and social management plan (ESMP) are implemented and sustained in their operations and (vi) to comply with any directives that may be issued from time to time from the NEMC, ASDP SC, ASDP Secretariat, the Zones and Regional authorities. 5/112  * Regional Level Authorities The regions would be responsible for, (i) receiving, reviewing and commenting, requiring revisions where necessary for category C type DADP sub projects and their corresponding environmental and social management plans (ESMP), prior to approval of the DADP by the District council, (ii) to carry out a regular and intrusive monitoring regime during planning, implementation, construction, operations and maintenance stages of the all DADP sub projects/activities ( incl. category A, B and C) (iii) for preparing periodic monitoring reports on the DADP sub projects/activities at all stages of the operations and to send these reports on a regular basis to their respective Zonal administration for compiling and monitoring of cumulative impacts across Tanzania, (iv) to comply with ( consistent with national laws) the directives of the NEMC and the zonal authorities (v) to issue directives to the districts consistent with national laws on environmental requirements. * Zonal Level Authorities For the purposes of environmental and social management of the DADPs, the roles of the zonal authorities are as follows: For environmental management - the zones will act as coordinators and reviewers of the periodic monitoring and oversight process, collecting and compiling monitoring reports of the regions for direct reporting on this to the NEMC. Also, the zonal irrigation engineers and zonal environmental specialist will carry out routine and periodic monitoring and backstopping the regions as may be required. Further, when Dam Safety issues are involved, the zonal irrigation engineers will serve as the experts on this issues and advice and support the districts on what may be required of them on these issues, for planning, design, contracting, construction, supervision during construction and for monitoring and operations, when dam is in use. For issues involving resettlement, the zonal land authorities would be directly responsible for reviewing and clearing the resettlement action plans and for monitoring the process of delivery of the emoluments on the resettlement plans. * The National Environment Management Council (NEMC) The NEMC is responsible for ensuring that all development projects in Tanzania comply with all relevant environmental laws. The new law, the Environment Management Act, 2004, specifically states that NEMC's role, among many other others is to review and recommend for approval/clear ElA's. Therefore, the overall role of the NEMC will be to review and clear ESIA's for all but Category A and B type sub project activities in the DADP's. Overall the NEMC will perform three critically important and significant roles as follows; (i) Review, Clearance and Approval of the ESIA's/process for Category A and B sub projects/activities of the DADP's. (ii) Training of District Staff (DALDO, District Environmental Coordinators and Zonal Environmental Specialists) to carry out monitoring. 6/112  (iii) Monitoring Oversight. * National River Basin Offices The nine national river basin offices are responsible for issuing and managing water rights. They will issue water rights only when the ESIA's have been reviewed and cleared by the NEMC. Section 8.0 also contains a training program and a training of US$400,000. * The Environmental and Social Management Process is contained in Section 9.0 with the following key features/steps. a) The FIRST step in the process begins at the start of the planning cycle for the preparation of the DADP's. b) The first step is for the potential sub project owner, implementer or operator to assign an Environmental Category for their sub project type, using table 9.1 below. c) This group can either be the DALDO or the farmer group. But in either case they will be assisted by the District Environmental Coordinator's (DEC), and in the case of farmer groups further assistance can be sought from the empowerment services (extension services) of the ASDP. Table 9.1 provides a list of sub project types that may be considered by for inclusion in the DADPs. Table 1.1: Potential DADP Sub Project Types, Major Environmental and Social Concerns and Probable Category DADP Sub Project Type* Potential Major Environmental and Sub Project+ Social Concerns Environmental Category A. Irrigation Large scale irrigation defined Water pollution and water quality, water A in this case as over 300ha extraction and water rights, land loss and resettlement, natural habitats, species loss, land degradation, Dam safety. Significant construction issues such as spoil disposal manaqement. Medium Scale, i.e between Water pollution and water quality, water B* 50 ha and 300ha extraction and water rights, land loss and resettlement, natural habitats, species loss, land degradation. Construction issues. Significant construction issues such as spoil disposal management. Small scale, i.e. less than 50 Land degradation, water pollution B**/ C ha and with no resettlement. B. Other types of sub projects Water harvesting, small Soil erosion, water source contamination. B 7/112 watershed management, May involve significant construction issues ground water charging, etc. such as spoil disposal management. * Resettlement is also likely to be a factor for most sub project types involving land acquisition or restriction for new irrigation sites or extension of existing sites. ** Although most irrigation sub projects are expected to be medium scale and therefore fall within a Category B, it is possible that some may require the use of dams and involve water storage/reservior. This could include the impoundment of large relatively flat areas. As such, these areas could remove land from cultivation and possibly result in involuntary resettlement. In such cases, the sub project would fall into a Category A. *** Any sub project with resettlement will be Category B, at a minimum, even if they are less than 50 ha irrigation or small market. + The ASDP Category is B for the program as a whole. Not to be confused with sub project category. d) The SECOND step is to determine which of the World Bank's safeguards policies may be triggered by the sub-project and what the requirements are to comply with the triggered policy. e) This requires the sub project potential owner/implementer/operator to use the Safeguards Tables in Annex A. Further information on these policies is available on the Bank's website, www.worldbank.org. f) The assumption is that the Environment Assessment OP 4.01 is already triggered and hence the need for compliance with this ESMF. OP 4.01 is included in Annex A to provide additional guidance and information to the sub project potential owner / implementer / operator. Therefore, compliance by the sub project potential owner/implementer/operator with this ESMF process is deemed to be accepted as compliance with OP 4.01. The following Safeguards Policies are not included in Annex A, because they are not likely to apply for the reasons noted in brackets next to the OP.; 1.1ndigenousPeoples (OD 4.20) ( no recognized indigenous people in URT) 2.Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60) (no disputed borders with neighbors of Tanzania). 3.Projects on International Waters (OP 7.50, BP 7.50, GP 7.50) (To be addressed at the national level by the government of the URT by bank appraisal of the ASDP and not by sub project owner/implementer/operators.) g) However, Annex A contains information to help the potential operators determine which of the following Bank safeguard policies may be triggered by their sub project; 1. Environmental Assessment (OP4.01, BP 4.01, GP 4.01) (Always Applies) 2. Pest Management (OP 4.09) 3. Natural Habitats (OP 4.04, BP 4.04, GP 4.04) 4. Forestry (OP 4.36, GP 4.36) 5. Cultural Property (OPN 11.03) 6. Involuntary Resettlement (OP/BP 4.12) 7. Safety of Dams (OP 4.37, BP 4.37) h) If any of the Bank safeguards policies are triggered by sub project, the owner / implementer/operator will modify the design, implementation, operation, maintenance 8/112 and decommissioning phases to ensure that the sub project satisfies the requirements of that particular policy. i) The THIRD step is for the owner! implementers operator to prepare a comprehensive sub project Environmental and Social Impact Assessment (ESIA) including an environmental and social management plan (ESMP) (see Annex C for guidelines on how to prepare and ESMP). Additionally, for situations where OP 4.12 apply, the Owner! Implementerx Operator will prepare a Resettlement Action Plan (RAP) consistent with the separately disclosed RPF. For situations where gP4.37 applies, the owner/implementer/operator will prepare a Dam Safety Measures Report and similarly where Pest management issues apply, the use of the IPMP is mandated. Annex H has specific guidelines for the assessment and preparation of the Dam Safety Measures Report. j) Annex B contains an example of a comprehensive terms of reference (tors) for the ESIA. k) For Category C sub projects, the owner/implementer/operator is only required to prepare an Environmental and Social Management Plan (ESMP). L) Annex C contains guidelines for the preparation of an ESMP for Category C sub projects and what the ESMP in Category A or B sub project ESIAs should also contain. m) According to Tanzanian Law and World Bank 0P4.01, Public Consultation is required as part of the ESIA and/or ESMP process. n) Annex F has a generic guide to an acceptable public involvement process. o) Step FOUR: Following compliance with these steps the operators submit their ESIA and or ESMP to the required authority as specified. p) The ESIA for Category A and B sub projects will be reviewed and cleared by the NEMC. q) The ESMP for Category C sub projects is to be reviewed and cleared by the respective Regional Environmental Engineers/Specialist, with assistance of Zonal Irrigation Engineers as required. r) Annex G contains a generic Environmental and Social Appraisal Form to be used by NEMC and the Regional and Zonal technical staff, to provide guidance to their review process and to notify the District Councils of their decision before final approval and funding is made. s) The first set of cleared ESIA's for Category A and B sub projects would also have to be reviewed and cleared by the World Bank, to ensure compliance with its safeguards policies. The World Bank reserves the right to not allow funds under the ASDP be applied to sub projects that do not meet the requirements of its safeguards policies. Chapter 10.0 contains a detailed Monitoring plan, with verifiable indicators, monitoring roles and responsibilities and costs to implement this plan. 9/112  * Chapter 11.0 presents a Cost Table for the ESMF which is as follows. Cost for Environmental and Social Management of the ASDP (in US$) Training 400000 Review of ESlAs/ESMPs 250,000 Monitoring Plan 400,000 Total Costs US$ 850,000 Table 1.2 Annexes A - I contain tools that are designed to assist this process by providing information and methods to ensure the desired goal of satisfactory environmental and social management is achieved for the ASDP. 10/112 2.0 INTRODUCTION The Government of United Republic of Tanzania (GoT) has asked the World Bank, IFAD, the EU and its other major development partners for continued support for its Agriculture Development Sector Program (ASDP). All investments from the ASDP would be through the District Agricultural Development Plans (DADPs). However, since the exact locations of the areas where DADP sub projects are to be located was not known at the time the ASDP was being prepared, the Laws of the United Republic in Tanzania and Operational Policy 4.01 of the Bank requires the Government of Tanzania (GoT) to prepare an Environmental and Social Management Framework (ESMF) which is to establish a mechanism to determine and assess future potential environmental and social impacts of all program activities to be financed under ASDP, and then to set out mitigation , monitoring and institutional measures to be taken during implementation and operation of the program activities to eliminate adverse environmental and social impacts, offset them, or reduce them to acceptable levels. Furthermore, the GoT is also required to prepare a Resettlement Policy Framework (RPF) to address the needs of those who might be affected when an operators operations causes the involuntary taking of land and other assets resulting in: (a) relocation or loss of shelter, (b) loss of assets or access to assets (c) loss of income sources or means of livelihoods, whether or not the affected person must move to another location. The RPF has been prepared as a stand alone and separate document. The GoT is further required to disclose both documents (the ESMF and the RPF) in- country as two separate and stand alone documents so that they are accessible by the general public, local communities, potential project-affected groups, local NGO's and all other stakeholders and also at the Infoshop of the World Bank and the date for disclosure must precede the date for appraisal of the program. Since the participating and qualifying districts will be become known during ASDP implementation, each DADP sub project location that is subsequently identified and approved by the District Councils, the ASDP NSC and the LGCDG SC, would be subjected to environmental and social planning prior to approval of the DADP for funding under the ASDP basket. Other program activities under the ASDP which may not be financed by the World Bank are also subject to the provisions of OP 4.01 and hence this ESMF. 2.1 Scope of Work The scope of work is to: * Prepare an Environmental and Social Management and Framework (ESMF) * Resettlement Policy Framework ( a separate document) - who's processes are also included in the ESMF This ESMF presents a framework for screening, monitoring and mitigating potential impacts. 11/112 3. DESCRIPTION OF THE PROPOSED PROGRAM. 3.1 Program Background Meeting Tanzania's Poverty Reduction Strategy and Millennium Development Goal of halving poverty by 2015, will require annual GDP growth of at least 6-7 percent which is significantly higher than that achieved over the last decade. As agriculture remains the largest sector in the economy accounting for about half of GDP and exports and 70 percent of rural incomes, higher agricultural growth is a key requirement to meeting the MDGs. Future agricultural growth and profitability will need to rely more on productivity gains with the reduced space for further improvements in macro-economic policy, a key contributing factor to improved agricultural incentives in the late 1980s and 1990s. In August 2001, The Government of Tanzania (GoT) approved the Agricultural Sector Development Strategy (ASDS) which envisages an agricultural sector that, by 2025, is modernized, commercial, highly productive and profitable, and utilizes natural resources in a sustainable manner. The ASDS has identified five strategic issues: * Strengthening the institutional framework. * Creating a favorable environment for commercial activities. * Clarifying public and private sector roles in improving support services. * Strengthening marketing efficiency for inputs and outputs, and * Mainstreaming planning for agricultural development in other sectors. The key policy features of the ASDS are; * Sustained agricultural growth target of at least 5% per annum, to be achieved through the transformation from subsistence to commercial agriculture, as a core element of the Poverty Reduction Strategy. * Transformation is to be private sector-led through an improved enabling environment for enhancing the productivity and profitability of agriculture, with the removal of constraints to private sector involvement. * Sector development to be facilitated through public/private partnerships, including increased contract farming (vertical integration), with a delineation of public/private roles. * Focus on participatory planning and implementation, using the framework of the District Agricultural Development Plans (DADPs), which is part of the District Development Plans (DDPs). * Decentralization of service delivery responsibilities to Local Governments. * Mainstreaming of cross-cutting and cross-sectoral issues in agricultural development operations. Policies, Legislative and Regulatory arising out of the ASDS and ASDP will be addressed through the framework of the rolling PRSC process. 12/112 Whereas, the Agricultural Sector Development Program (ASDP), developed jointly by the four Agriculture Sector Lead Ministries (ASLMoS) provides the overall framework 2 , and operational process for implementing the ASDS. To this end, the GoT with financial assistance from the World Bank, International Fund for Agricultural Development (IFAD) and other bilateral donors is planning to implement the Agricultural Sector Development Program (ASDP). The ASDP also provides GoT, especially the four ASLM's with a sector-wide framework for overseeing the institutional reforms and investment priorities. 3.2 PROGRAM DESCRIPTION Development activities at the national level are to be funded based on the strategic plans of the line ministries while activities at the district level are to be implemented by local Government Authorities (LGAs), based on District Agricultural Development Plans (DADPs). The DADPs are to be part of the broader District Development Plan (DDP).The ASDP is to be supported through a multi-donor "basket funded" arrangement to prevent high transaction costs of parallel programs. The basket would move towards budget support and, through detailed design of the program, would ensure improved efficiency of these sector expenditures. Efforts would be made to ensure that the "basket" abides by the principles of the budget process to ensure greater sustainability of the program. The ASDP is designed as a three phase program with Phasel, 2 and 3 each planned for three years. 3.2.1 Program Development Objectives The Program Development Objectives of the ASDP are; (iii) Sustained 5 percent annual growth of agricultural GDP (averaged over a rolling three year period) through improved productivity and profitability of the sector and (iv) Higher farm productivity, profitability and incomes through improved access to and use of relevant agricultural knowledge and technology by farmers; increased district level investment; and improved market development. This three phased Adaptable Program Loan, APL, would allow over a 9-10 year period support by development partners to the Government's efforts to (i) improve the responsiveness of agricultural services to farmer needs; (ii) implement district agricultural development plans; and (ii) market development (local, regional and international). Over the three phases the program would progressively increase both its sectoral and geographic coverage. The sequencing and main thrust of the three phases would be: Phase I (three years): focus on empowering farmers/clients to make better informed decisions on technology choice; introducing a more contestable and decentralized system of agricultural services and extension to improve its relevance and encourage pluralism in service provision with a greater role for the The ASLMs include the three sector line ministries: The Ministry of Agriculture and Food Security (MAFS), Ministry of Water and Livestock Development (MWLD) and Ministry of Cooperatives and Marketing (MCM), as well as the President's office - Regional Administration and Local Goverdnent (PO-RALG) 13/112  private sector; clarifying the strategy for technical services and training; strengthening capacity for implementation of the district agricultural development plans, including irrigation; and identification of models for local, regional and international market development. * Phase II (three years): continued roll-out of the competitive grant schemes for research and extension together with empowerment activities; support for technical services and training; implementation of the district agricultural development plans through investment and capacity building; and implementation of market development models. * Phase IlIl(three years): continued expansion of the competitive grant scheme for research and extension and support for the implementation of the district agricultural development plans; implementation of market development. Dependant on implementation progress, IDA funding could be integrated into direct budget support (PRSC) in this phase - although the basket and support the ongoing activities would continue to be financed by development partners. 3.2.2 Program Components To achieve these objectives, Phase 1 of the ASDP is structured into two components: * Component 1 - National Level Support * Component 2 - District Level Support Component 1. National Level Support: The program will provide funding through the strategic plans of the agriculture line ministries, initially for support to agriculture research (through the zones), to larger scale irrigation based on demand from the districts, and for market development. The components of the national level support are: Sub-component 1.1: Agricultural Research: Building on previous support for zonal agricultural research, this sub-component will endeavor to improve the relevance and responsiveness of agricultural research through improving the management of the Zonal Agricultural Research Institutes (ZARDIs) with the implementation of a Client Oriented Research and Development Management Approach (CORDEMA), and through a reconstitution and expansion of the Zonal Agricultural Research and Development Fund (ZARDEF), which will allow on a competitive basis, participation of a broader range of research providers in the delivery of publicly funded research. This component will include: public sector re-orientation and capacity building, private sector provider support and provision of services. Sub-component 1.2: Irrigation: Most publicly supported irrigation will be through the district agricultural development grant of component 2. This sub-component would finance a District Irrigation Development Fund (DIDF). A separate fund will be established to complement the formula based direct district support. As funding requirements depend on local irrigation potential and implementation capacity, additional budget allocations will not be needed in every district and not in every year and accounting for these differences in a formula based allocation is difficult. The DIDF would be centrally located in the Ministry of Finance, from where funds would flow directly to qualifying districts. The DIDF would finance: (i) those irrigation schemes in selected water basins based on a more strategically planning approach, such as inter- district irrigation schemes, and complex irrigation infrastructure, including ground water, 14/112 and requiring higher financing levels than what can be accommodated by the districts; and (ii) supplemental cost of small scale district irrigation schemes (derived from demand through the O&OD process) funded by the general annual allocations for small scale irrigation schemes from the LGCDG/DADG. Only districts that meet the access criteria for the LCDG and the DADG would be able to apply to the fund for supplementary irrigation funds for specific identified irrigation and/or water harvesting schemes. A Board, consisting of representatives of the Ministry of Finance and the ASLMs, the Basin Authorities, and others as relevant, would govern the DIDF. Sub-component 1.3: Market Development: to finance studies, pilot activities, could include work on rural financial markets. Component 2. District Level Suppove: The program will provide funding through District Agricultural Development Plans (DADPs) for agricultural investments, support for improvements of LGA core regulatory functions, and support to reforming the agricultural extension system. Consistent with the local government capital development grant transfer system, districts will be assessed on performance against progress on these elements which will determine the level of funding they can access from the program, which will take the form of three formula-based block grant transfers which form the sub-components of the district level support. Sub-component 2.1: District Agricultural Investments: Investments will be funded through an earmarked grant top-up to the Local Government Capital Development Grant in support of agricultural development. The District Agricultural Development Grant (DADG) will support implementation of District Agricultural Development Plans (DADPs) on a cost-sharing basis. Criteria and procedures to assess the feasibility of proposed investments from a technical, economical, financial, social and environmental perspective will be included in the DADP guidelines. Investments will be in accordance with local needs, as determined through local participatory planning and budget processes. Sub-component 2.2: District Agricultural Services: This sub-component would facilitate and oversee effective and efficient provision of services responsive to farmer groups and fora demands. It would be financed through the existing discretionary, formula-based Agricultural Extension Block Grant (EBG) This sub-component would have provide funding for both public extension services and for private service providers. The latter would be engaged through agreements and contracts directly between farmer clients or through local government outsourcing. Sub-component 2.3: District Agricultural Capacity Building and Reform: This sub- component would provide resources for public sector re-orientation and performance improvement; and for capacity building and greater involvement of private extension service providers. Part of the funds will be an earmarked to-up to the Local Government Capacity Building Grant (CBG), and part will be managed through a centrally managed reform fund that would assist local government authorities to reform their services and meet the requirements and incentives provided through the annual assessments for the DADG and CBG. 15/112 Examples of Typical Irrigation Sub projects: * Traditional Irrigation Schemes - schemes that have been initiated and operated by farmers themselves using local skills and materials, with no intervention from external agencies. These would include schemes based on traditional furrows for the production of fruit and vegetables in the highland areas, and simple diversion on the lowlands for paddies. As for this category, at present, the schemes in Arusha and Kilimanjaro accounts for over 60% of the total area. * Water Harvesting Schemes - water harvesting schemes and flood recession schemes, on which subsistence farmers have themselves introduced simple techniques to artificially control the availability of water to crop. These schemes involve a process whereby rainfall is concentrated or is captured as runoff from a large area and is canalized for use in a smaller targeted area. Water application to the scheme is essentially uncontrolled under farmer-managed practices. The objective is simply to capture as much water as possible and store it within reach of plant(s) in the soil profile of cultivated area or into a storage reservoir. They are mainly located in such regions as Dodoma, Mara, Mwanza, Shinyanga, Singida, Tabora and Mayara. * Modern irrigation schemes - these are formally planned and designed smallholder schemes, on which full irrigation facilities have been provided by external agencies with or without some contribution from the beneficiaries, and on which there is usually a strong element of management provided by Government or other external agency. The major regions, where the schemes have been developed, are Morogoro followed by Kilimanjaro and Mbeya. * Improved Traditional Irrigation Scheme - schemes which have been initiated and operated by semi-subsistence farmers themselves and on which there has subsequently been some intervention by an external agency in the form of construction of a new diversion structure, gated canal intakes, water diversion boxes and other farm related structures. The layout of irrigation canals and drainage system is well defined. * Small Scale Farmers Irrigation - this is relatively new but growing sector, where individual farmers or small groups irrigate homestead or vegetable gardens of small to medium size (0.2 to 1.0ha), using small scale technology such as treadle pumps. * (ex)Parastatal Large Irrigation Estates - There are a number of these large irrigation estates, such as Kapunga and Dakawa that are in the state of being privatized. At present different strategies are being contemplated by government for the privatization of these estates, which range from selling to large commercial enterprise (as in the case of the sugar estates of Morogoro and Kagera), to converting these estates in smallholder irrigation schemes. At present there is no clear government policy outlining the manner of privatization for the remaining Government controlled rice irrigation schemes, which is being decided upon case-by-case. * Private Commercial Sector - Export commodity based private enterprises ranging from large scale enterprises as the sugar estates in Morogoro and Kagera, coffee estates and horticulture and flower enterprises around Arusha. 16/112  Types of Irrigation No. of Schemes Existing Area (ha) Traditional Irrigation 982 122,600 Water Harvesting 42 7,900 Modern Irrigation 52 35,900 Improved Traditional Irrigation 113 25,500 Small Scale Farmers Irrigation (ex) Para-Statal Large 5 25,464 Irrigation Estates Private Commercial Sector Total 1,194 217,364 Table 3.1 Tvpes of Existing Irriaation Projects While the National Irrigation Master Plan (NIMP) sets ambitious targets for irrigation development in Tanzania, investments in irrigation development is capped by the national implementation capacity. Past experience shows that a total of 6,000 - 7000 ha annually was developed through support of GoT and development partners. This is taken as the low case scenario. In a high case scenario, 10,000ha annually could be developed, but this would require significant support to strengthen capacities at the District and Zonal level. Adoption of the high case scenario would increase total irrigated area in Tanzania by 75% in 2017. Yet, it would fall far short in achieving the NIMP targets of 405,000 ha in 15 years. High Case Low Case Acreage Total Annual Acreage Total Annual (ha) amount (m amount (ha) amount amount US$,15 (m US$) (m US$, (m US$) years) 15 years) LGCDG 20,000 60.0 4.0 20,000 60.0 4.0 DADG 50,000 150.0 10.0 50,000 150.0 10.0 DIDG 80,000 240.0 16.0 35,000 105.0 7.0 Extension Block Grant Total 150,000 450.0 30.0 105,000 315.0 21.0 estimates US$3,000 per hectare Table 3.2: Probable Irrigation investments and Services under ASDP 17/112 4.0 BASELINE DATA 4.1 The Bio-Physical Environmental Features The United Republic of Tanzania lies between 29 0 30'E and 40 0 30'E, and 10 00'S and 11048'S. Located on the east coast of Africa, it covers an area of approximately 945,000 2 2 kM , of which the Zanzibar Islands cover 2,400 km . The islands of Mafia, Pemba and Zanzibar are included in this area. Of this area 61,495 km2 is covered by the inland waters of the Great Lakes (Victoria, Nyasa/Malawi and Tanganyika). The country is bordered by Uganda to the north for 396km, Rwanda and Burundi to the north-west for 217km and 451km respectively, the Democratic Republic of Congo (DRC) to the west for 459km (a water border on lake Tanganyika), Zambia and Malawi to the south-west for about 338km and 475km respectively, Mozambique to the south for 756km, and Kenya to the northeast for 769km. The Indian Ocean, whose shores are characterized by coral reefs and small islands, lies to the east. The continental shelf within the 200-m depth contour varies from 4-60 km from the shore. Tanzania is a land of contrasts, being the home of Africa's highest mountain (Kilimanjaro, at 5,895m and its lowest point (the floor of Lake Tanganyika, which is 1,470m deep). Except for the coastal belt and islands, most of the country is part of the Central African Plateau (1,000-1,500 m above sea level) characterized by gently sloping plains and plateaux, broken by scattered hills and low-lying wetlands. The Central African Plateau is deeply incised by two arms of the Rift Valley: the eastern arm, which includes Lakes Natron and Manyara, and the deeper western arm, which contains Lake Tanganyika. Both arms of the Rift converge in the south of the country near the northern end of Lake Nyasa( Malawi). The flora of Tanzania is extremely diverse, with over 12,700 plant species - a figure comprising more than one-third of the total plant species in Africa (UNEP 1998). This high diversity of plants is not evenly distributed throughout the country, they are found in six specific ecological zones, namely - * Moist Forest Mosaic * Coastal Forests and Thickets * Afromontane * Acacia-Savannah Grassland * Acacia-Commiphora Thornbush, and * Brachystegia-Julbemardia-Savannah Woodland. Proportionately, Tanzania has a much bigger land surface area devoted to resource conservation (29%) than most countries. The hierarchical protected-area system consists of national parks (12), game reserves (28), the Ngorongoro Conservation Area (1), and game-controlled areas (38), comprising a total of 240,000 km2. In addition to the wildlife-protected areas, there are 540 forest reserves covering 132,000 kM2 , equivalent to 15% of the total woodland and forest area in Tanzania. There is also the Mafia Island Marine Park. 18/112 4.1.1 Climate Tanzania experiences a variety of climatic conditions, ranging from the alpine deserts on the top slopes of Mount Kilimanjaro that are permanently covered by snow, to the tropical coastal areas that are under the influence of two monsoon winds. The north-east monsoon wind which blows southwards from December to March brings the hottest weather, while the southeast monsoon winds which blow northwards from March to September bring intermittent rains. The main rainy season on the coast is from March to May (the 'long rains') with a second season between October and December (the 'short rains'). Mean annual rainfall varies from 400 mm in the central regions to over 2,500 mm in the highlands and the western side of Lake Victoria. Mean annual temperatures are influenced by altitude, ranging from 21