bosnia and herzegovina rural competitiveness · pdf file1 000 kg = 2.204 lb. 1 kilometre (k...

Document Date: 20-May 2015Project No. 1100001728Report No: 3755-BA
Near East, North Africa and Europe DivisionProgramme Management Department
Bosnia and Herzegovina
Rural Competitiveness Development Programme(RCDP)
Final project design report
Main report and appendices

Bosnia and HerzegovinaRural Competitiveness Development Programme (RCDP)Final project design report
i
ContentsCurrency equivalents v
Weights and measures v
Abbreviations and acronyms vi
Map of the Programme area viii
Cluster Map: Berries ix
Cluster Map: NTFP x
Cluster Map: Vegetables xi
Executive Summary xii
Logical Framework xvii
I. Strategic context and rationale 1
A. Country and rural development context 1
B. Rationale 2
II. Programme description 5
A. Programme area and target group 5
B. Development objective and impact indicators 9
C. Outcomes/Components 10
D. Project Coordination, Monitoring and Evaluation 26
E. Lessons learned and adherence to IFAD policies 27
III. Programme implementation 27
A. Approach 28
B. Organizational framework 29
C. Financial management, procurement and governance 34
D. Supervision 35
E. Risk identification and mitigation 36
IV. Programme costs, financing, benefits and sustainability 37
A. Programme costs and Financing 37
B. Summary benefits and economic analysis 38
C. Sustainability 40

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List of Tables
Table 1: Categorization by income per capita at household level valid for all RCDP sub-sectors 7Table 2: Categorization of beneficiaries by land size by sub-sector and type of production 8Table 3: Cost sharing of investment support 22Table 4: Phasing of Business Proposals 23Table 5: Risks and Mitigation Measures 36Table 6: Project costs by components 37Table 7: Total Costs by Financier 38Table 8: Financial Profitability Indicators 39Table 9: Sensitivity Analysis 40Table 10: Absolute poverty rate in BiH (per cent) 53Table 11: Target groups wealth ranking 55Table 12: Categorization by income per capita at household level valid for all RCDP sub-sectors58Table 13: Categorization of beneficiaries by land size by sub-sector and type of production 59Table 14: Possible clusters in the berry sub-sector 61Table 15: Possible clusters in the gherkin sub-sector 62Table 16: Possible clusters in the greenhouse vegetables sub-sector 62Table 17: Possible clusters in the open-field vegetables sub-sector 62Table 18: Possible clusters in the NTFP sub-sector 63Table 19: Possible clusters in all sub-sectors TOP 12 64Table 20: Comparison of Vegetable Production in BiH and RS (in Tn.) 105Table 21: Supply of vegetables, 2011-2014 108Table 22: Vegetables exportimport, BiH 2012-2014 and share of RS in total export-import
2012-2014 (KM) 110Table 23: Raspberry production in BiH (2011-2013) 118Table 24: Berries trade in BiH (2009-2014) 119Table 25: Export of berries (sorted by export value as of 2013, in BAM) 120Table 26: SWOT Analysis Raspberries sector in FBiH 123Table 27: Risk assessment at design stage 148Table 28: 18 months Procurement Plan 161Table 29: 18 months Procurement Plan (cont.) 162Table 30: Project costs by components 163Table 31: Total Costs by Financiers 164Table 32: Project components by year total costs including contingencies 165Table 33: Expenditures of accounts by financiers 166Table 34: Project components by year totals including contingencies 167Table 35: Expenditure accounts by components totals including contingencies 168Table 36: Swot analysis of the fruits, vegetables and MAPS subsectors in BiH 171Table 37: Financial Analysis of Crop Budget 175Table 38: Financial Profitability Indicators 176Table 39: Number of Farmers and Phasing In 178Table 40: Number of Cooperatives and Phasing In 178Table 41: Sensitivity Analysis 179Table 42: Main threats and mitigation measures 184Table 43: Reducing vulnerability to climate change 185

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Table of Figures
Figure 1: Main technical functions and actors of the selected VC 99Figure 2: Production of vegetables in BiH and contribution of RS 2011-2014 105Figure 3: Share of RS in overall production of vegetable in BiH 2011-2013 106Figure 4: Map of vegetable regions in Republika Srpska 107Figure 5: Share of vegetable production per municipality in RS 107Figure 6: Total export of vegetables from BiH and RS in KM 201-2014 108Figure 7: Total import of vegetables from BiH and RS, 2012-2014 (in KM) 109Figure 8: Export-import of certain vegetable crops in BiH, 2013 (in KM) 109Figure 9: Export-import of certain vegetable crops in KM, BiH 2014 110Figure 10: Export import of certain vegetables in in KM, RS 2014 110Figure 11: 2011-2013 Raspberry production in BiH 119Figure 12: Berries trade in BiH (2009-2014) 120Figure 13: BiH Berries - trade partners (2013) 121

iv
Appendices
Appendix 1: Country and rural context background 43Appendix 2: Poverty, targeting and gender 53Appendix 3: Country performance and lessons learned 69Appendix 4: Detailed project description 75Appendix 5: Institutional aspects and implementation arrangements 125Appendix 6: Planning, M&E and learning and knowledge management 141Appendix 7: Financial management and disbursement arrangements 147Appendix 8: Procurement 157Appendix 9: Project cost and financing 163Appendix 10: Economic and Financial Analysis 169Appendix 11: Draft Project Implementation Manual 181Appendix 12: Compliance with IFAD policies 183Appendix 13: Contents of the Project Life File 187

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Currency equivalentsCurrency Unit = BAM Convertible Mark
US$1.0 = BAM 1.566
EURO 1.0 = BAM 1.956
Weights and measures1 kilogram = 1000 g
1 000 kg = 2.204 lb.
1 kilometre (km) = 0.62 mile
1 metre = 1.09 yards
1 square metre = 10.76 square feet
1 acre = 0.405 hectare
1 dunum = 0.10 hectare

vi
Abbreviations and acronyms
APCU Agriculture Projects Coordination UnitAWPB Annual Work Plan and BudgetBDS Business Development ServicesBiH Bosnia and HerzegovinaBP Business ProposalCAP Common Agricultural PolicyCDP Cluster Development ProgramCOSOP Country Strategic Options PaperCPMT Country Programme Management TeamDRC Domestic Resource CostEET Energy Efficiency TeamEFSE European Fund for Southeast EuropeERP Effective Rate of ProtectionERR Economic Rate of ReturnESMP Environmental and Social Management PlanEU European UnionFARMA Fostering Agricultural Markets ActivityFBiH Federation of Bosnia and HerzegovinaFHH Female-Headed HouseholdFMA Financial Management AssessmentFO Farmers OrganizationGDP Gross Domestic ProductGIZ Gesellschaft fr Internationale ZusammenarbeitGNI Gross National IncomeGlobalGAP Global Good Agricultural PracticeHACCP Hazard Analysis and Critical Control PointsIFC International Finance CorporationIFR Interim Financial ReportIPA Instrument for Pre-accession Assistance (to the EU)IPARD Instrument for Pre-Accession Rural DevelopmentIPSAS International Public Sector Accounting StandardsIRM Inter-cycle Review MissionIRR Internal Rate of ReturnISA International Standards on AuditingKM Convertible MarkLAMP Linking Agricultural Markets to Producers Project (USAID)LED Local Economic DevelopmentLPP Law on Public ProcurementLRFDP Livestock and Rural Finance Development ProjectLSMS Living Standard Measurement SurveyM&E Monitoring and EvaluationMAFWM Ministry of Agriculture, Forestry and Water ManagementMAWMF Ministry of Agriculture, Water Management and ForestryMCO Microcredit OrganizationMDG Millennium Development Goals

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MFI Microfinance InstitutionMIDCA Integrated Organisation Model Applied to Producer OrganisationsMoFT Ministry of Finance and TreasuryMOFTER Ministry of Foreign Trade and Economic RelationsMTDS Medium-Term Development StrategyMTR Mid-tern ReviewNGO Non-Governmental OrganizationNPV Net Present ValueNRP Nominal Rate of ProtectionNTFP Non-Timber Forest ProductsOFID OPEC Fund for International DevelopmentPA Producers AssociationPBAS Performance-Based Allocation SystemPCR Project Completion ReportPCU Project Coordination UnitPDO Project Development ObjectivePEFA Public Expenditure and Financial AccountabilityPFI Participating Financial InstitutionPIM Project Implementation ManualPRSP Poverty Reduction Strategy PaperPSC Project Steering CommitteePY Project YearRB-COSOP Results-based country strategic opportunities programmeRCDP Rural Competitiveness Development ProjectRS Republika SrpskaREEP Rural Enterprise Enhancement ProjectRIMS Results and Impact Management SystemSDC Swiss Agency for Development and CooperationSIDA Swedish International Development CooperationSME Small and Medium EnterpriseSP Service ProviderSPSC State Project Steering CommitteeUNDAF United Nations Development Assistance FrameworkUNDP United Nations Development ProgrammeUNFCCC United Nations Framework Convention on Climate ChangeUSAID United States Agency for International DevelopmentUSD United States DollarVAT Value Added TaxVC Value Chain

viii
Map of the Programme area

Bosnia and Herzegov

bosnia and herzegovina rural competitiveness · pdf file1 000 kg = 2.204 lb. 1 kilometre (k...

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