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Federal Republic of Nigeria Federal Ministry of Agriculture and Rural Development Staple Crop Processing Zones Support Project (scpz)


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1.7 Approach for the Preparation of ESMF

The ESMF has been prepared in accordance with applicable World Bank safeguard policies and Nigeria environmental assessment act and guidelines, and which involves the following activities summarized in Fig 1.2:


  • Data Gathering;

  • Participatory Public consultations and discussions with relevant sector institutions, including non- governmental organizations (NGOs);

  • Data collection and analysis, consisting of Literature reviews; Environmental and Social screening and scoping studies;

  • Determination of potential impacts;

  • Identification of impacts mitigation measures; Preparation of an Environmental and Social Management Plan;

  • Review of comments from stakeholders; and

  • Preparation and Submission of reports.


group 1

Figure1.2: ESMF Preparation Approach





CHAPTER TWO PROPOSED PROJECT ACTIVITIES


2.1 Project Setup


The SCPZ Support Project will contribute to the broader objectives of the FGN's SCPZ Program consisting of 'increasing food production and reducing the demand for imports, adding value through processing, reducing the cost of doing business for processors, and attracting new investment to create jobs, especially in rural areas, and to drive the economy'. The expansion of agribusiness - farmer linkages s under the SCPZ program through the right mix of public and private investments will ultimately improve agricultural productivity, generate shared growth and substantially reduce poverty in rural areas.
The management structure foresees that overall coordination and management will be under the responsibility of FMARD which will establish the following bodies:
A Project Steering Committee (PSC) to oversee project implementation. It will approve annual budgets and work programs, and technical and financial progress reports submitted by the PMU. It will ensure adequate articulation of project activities with the broader SCPZ Program and with national policies. It will be also in charge of supervising external monitoring and evaluation of project’s performance.
The SCPZ Program Coordination Team (PCT) established within FMARD will be the technical arm of the PSC. Under the leadership of the Director, Department of Agro-Processing and Marketing (APM), the PCT is composed of core dedicated FMARD personal and consultants, and desk officers from relevant MDAs. The PCT will benefit from the expertise of the United Nations Industrial Development Organization (UNIDO) in development of agro-industrial zones, through a senior technical advisor being selected. The PCT role is expected to be taken over by the SCPZ Authority once it is fully operational. In collaboration with the PMU, It will be charge of implementing part of Project support on institutional development, in particular Subcomponent 3.3 on the technical assistance to FMARD and SCPZ Authority to establishing regulatory rules, capitalizing and disseminating lessons learnt, and promoting the program, as well as providing technical assistance to selected states to roll out their SCPZ and agribusiness development programs.
A Project State Implementation Management Committee (SIMCO). A technical working group set at the state level to facilitate the coordination of project activities on the ground. It will be composed of the PMU core staff, representatives of the Governor and focal points in key relevant MDA at the State level. SPCZs Desk officers at federal level may also participate to meetings on request depending on the specific agenda and technical issues to be discussed. The PIC will be chaired by the PMU Director who will inform HMA, the Chairman of the PSC and the Governor of Kogi State on their deliberations for action. The SIMCO will evolve toward the SCPZ Executive Management Committee once the SCZ authority is full established and operational.


2.2 Direct Investment Components of the Project


The Project has four components as follows:
Component 1: Support to public infrastructure development for the Alape model SCPZ in Kogi State ($77.00 million, of which IDA will contribute $58.00 million):

In line with international best practices, and considering that Kogi SCPZ is located in a remote area without access to any basic infrastructure, this component will support the Government in the following: (i) the development of off-site infrastructure including energy (electrical and thermal), access roads, and water supply to the SCPZ; (ii) preparation of the SCPZ development plan and provision of initial on-site infrastructure to ensure minimum utility services for up to 3 private investment projects; and (iii) social infrastructure for supporting productive activities taking place within both the SCPZ and the ABIR.


Component 2: Support to farmers-agribusiness linkage and to economic opportunities along the value chains ($25 million, of which IDA $15 million):

This component is designed to strengthen linkages between investors in the SCPZ and local economy in the surrounding communities. It will benefit primarily farmers and SMEs, providing jobs and income opportunities in the ABIR. In coordination with FADAMA III/AF and other relevant operations in the portfolio, the project will provide support through an agribusiness service provider, to structure value chains development programs that link farmers, SMEs and communities in the catchment areas, giving special consideration to women and youth, with agro-processing firms as follows: (i) Improving farmer’s productivity and (ii) Promotion of economic opportunities for the community.


Component 3: Institutional development in SCPZ ($27.50 million, of which IDA $17.50 million).

A key requirement for the effective management of the project will be to create institutions that have the capacity to coordinate the complex set of technical inputs, engage in effective monitoring and evaluation, and are able to adapt their working methods according to lessons learned. Project support will focus on the following: (i) On-site Technical assistance for zone development, operation, and management, through a delivery partner, which will be an engineering firm or consortium of firms, competitively selected to to provide specialized skill required during discrete phases of the project ; (ii) Support to Kogi State Land Management Unit and to the implementation of safeguards instruments ; (iii) Support to FMARD and selected States for the development of agribusiness clusters.


Component 4: Project Management and Coordination ($11.50 million, of which IDA $9.50 million):

This component will finance project management and coordination with the Program, M&E (including knowledge management, and impact evaluation), and communication. A dedicated project management and coordination structure will be set up before negotiations. A Project Management Unit will be established in Kogi State to lead and coordinate implementation of project activities, including the management of the designated account and project procurement activities. It will also support the gradual establishment of a Special Purpose Vehicle (SPV), which will be the permanent structure in charge of further development of the infrastructure, management and promotion of the zone.


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