Common use of Policy Reform Activity Clause in Contracts

Policy Reform Activity. The Policy Reform Activity aims to promote several major policy reforms directly linked to the success and sustainability of the Project. Specifically, the Activity will support: • National Water Resource Planning Sub-Activity: Assessment of groundwater resources in southern Niger using remote sensing technology, detailed hydrogeological studies of priority sites to assess capacity and sustainable use of groundwater resource; and capacity building targeted at Nigerien technical working group to retain evaluation skills in-country.; • Protected Areas Planning Sub-Activity: The development and implementation of natural resource and land use management plans for the protected areas and nearby communities affected by the Irrigation and Market Access Project in the Dosso Region, including (i) ecological assessments and land use studies necessary to identify and promote conservation and natural resource planning objectives; (ii) the development and implementation of management plans for Dosso Partial Faunal Reserve and Ramsar Convention site Zone Humide du Moyen Niger II; and (iii) support for the development of community land use plans within and adjacent to the protected areas; • Fertilizer Distribution Reform Sub-Activity: The reform of the fertilizer distribution market to allow greater competition and private sector participation and to enable broad availability and affordability of fertilizers, especially to women and small farmers. The Sub-Activity will assist in the development of an action plan to: (1) open the fertilizer procurement and distribution process to competition by private firms; (2) allow for natural adjustments of fertilizer pricing in response to market demand and in alignment with regional markets; and (3) adopt and implement a fertilizer subsidy exit strategy that leaves in place a focused program to meet crisis needs of the most marginalized; and • Statistical Capacity Development Sub-Activity: The development of the statistical capacities of the national data producers agencies including the National Institute of Statistics and key ministries (Water and Sanitation, Agriculture and Livestock, and Environment)) to (1) generate relevant, timely, gender-responsive and accurate productive sector data, including data disaggregated by income level, sex and age, to the maximum extent practicable; (2) analyze and inform the impacts of government policy related to growth strategies, investment, agricultural trade, natural resources and services; (3) measure economic growth and poverty reduction; and (4) stimulate the use of accurate and up-to-date data to inform government policies and programs. Specific logic diagrams do not exist for the first two sub-activities above because they have been included in the Compact to ensure sustainability of the results from the other activities. The diagram below illustrates and describes the expected causal relationships specifically for the Fertilizer Distribution Reform Sub-Activity of the Policy Reform Activity and synthesizes expected outcomes of that Sub-Activity.

Policy Reform Activity. The Policy Reform Activity aims to promote several major policy reforms directly linked to the success and sustainability of the ProjectProgram. Specifically, the Activity will support: • the development and implementation of a new National Water Resource Planning Sub-Activity: Assessment Resources Plan covering a minimum of groundwater ten (10) years, including a detailed assessment of water resources in southern Niger using remote sensing technology, technology and detailed hydrogeological studies of priority sites to assess capacity and improve sustainable use management of groundwater resource; and capacity building targeted at Nigerien technical working group to retain evaluation skills in-country.resources; • Protected Areas Planning Sub-Activity: The the development and implementation of natural resource and land use management plans for the protected areas and nearby communities affected by the Irrigation and Market Access Project in the Dosso Region, including (i) ecological assessments and land use studies necessary to identify and promote conservation and natural resource planning objectives; (ii) the development and implementation of management plans for Dosso Partial Faunal Reserve and Ramsar Convention site Zone Humide du Moyen Niger II; and (iii) support for the development of community land use plans within and adjacent to the protected areas; • Fertilizer Distribution Reform Sub-Activity: The the reform of the fertilizer distribution market to allow greater competition and private sector participation and to enable broad availability and affordability of fertilizers, especially to women and small farmers. The Subsub-Activity activity will assist in the development of an action plan to: (1) open the fertilizer procurement and distribution process to competition by more private firms; (2) allow for natural adjustments of adjust fertilizer pricing in response to market demand and in alignment be aligned with regional markets; and (3) adopt and implement a fertilizer subsidy exit strategy that leaves in place a focused program to meet crisis needs of the most marginalized; and • Statistical Capacity Development Sub-Activity: The the development of the statistical capacities of the national data producers agencies including the National Institute of Statistics and key ministries (Water and Sanitation, Agriculture and Livestock, and Environment)) to (1) generate relevant, timely, gender-responsive and accurate productive sector data, including data disaggregated by income level, sex and age, to the maximum extent practicable; (2) analyze and inform the impacts of government policy related to growth strategies, investment, agricultural trade, natural resources and services; (3) measure economic growth and poverty reduction; and (4) stimulate the use of accurate and up-to-date data to inform government policies and programs. Specific logic diagrams do not exist for the first two sub-activities above because they have been included in the Compact to ensure sustainability of the results from the other activities. The diagram below illustrates and describes the expected causal relationships specifically for the Fertilizer Distribution Reform Sub-Activity of the Policy Reform Activity and synthesizes expected outcomes of that Sub-Activity.

Policy Reform Activity. The Policy Reform Activity aims to promote several major policy reforms directly linked to the success and sustainability of the Project. Specifically, the Activity will support: • National Water Resource Planning Sub-Activity: Assessment of groundwater resources in southern Niger using remote sensing technology, detailed hydrogeological studies of priority sites to assess capacity and sustainable use of groundwater resource; and capacity building targeted at Nigerien technical working group to retain evaluation skills in-country.; • Protected Areas Planning Sub-Activity: The development and implementation of natural resource and land use management plans for the protected areas and nearby communities affected by the Irrigation and Market Access Project in the Dosso Region, including (i) ecological assessments and land use studies necessary to identify and promote conservation and natural resource planning objectives; (ii) the development and implementation of management plans for Dosso Partial Faunal Reserve and Ramsar Convention site Zone Humide du Moyen Niger II; and (iii) support for the development of community land use plans within and adjacent to the protected areas; • Fertilizer Distribution Reform Sub-Activity: The reform of the fertilizer distribution market to allow greater competition and private sector participation and to enable broad availability and affordability of fertilizers, especially to women and small farmers. The Sub-Activity will assist in the development of an action plan to: (1) open the fertilizer procurement and distribution process to competition by private firms; (2) allow for natural adjustments of fertilizer pricing in response to market demand and in alignment with regional markets; and (3) adopt and implement a fertilizer subsidy exit strategy that leaves in place a focused program to meet crisis needs of the most marginalized; and • Statistical Capacity Development Sub-Activity: The development of the statistical capacities of the national data producers agencies including the National Institute of Statistics and key ministries (Water and Sanitation, Agriculture and Livestock, and Environment)) to (1) generate relevant, timely, gender-responsive and accurate productive sector data, including data disaggregated by income level, sex and age, to the maximum extent practicable; (2) analyze and inform the impacts of government policy related to growth strategies, investment, agricultural trade, natural resources and services; (3) measure economic growth and poverty reduction; and (4) stimulate the use of accurate and up-to-date data to inform government policies and programs. Specific logic diagrams do not exist for the first two sub-activities above because they have been included in the Compact to ensure sustainability of the results from the other activities. The diagram below illustrates and describes the expected causal relationships specifically for the Fertilizer Distribution Reform Sub-Activity of the Policy Reform Activity and synthesizes expected outcomes of that Sub-Activity. Figure 6: Fertilizer Distribution Reform Logic Develop criteria for identifying vulnerable farmers Increased crop yields Cheaper, faster and more efficient provision of fertilizers to farmers Increased volumes and values of crops produced and traded Increased participation of the private sector subsidies (only to low-income farmers) E-database established to identify vulnerable farmers More efficient fertilizer provision More market-based pricing Reforms are adopted including an improved procurement system, reform price-setting mechanism & policies for including small vendors Greater number of small fertilizer vendors Conduct a comparative study for reform options, choose appropriate reform options & develop; develop reform options to include small vendors & vulnerable farmers Increased presence of input and output traders Increased incomes of rural households The assumptions and risks7 underpinning the logic are the following: • Lack of competition in the fertilizer sector due to the Centralized Supply Center for Agricultural Inputs and Materials’s (Centrale d’Approvisionnement en Intrants et Matériels Agricoles) (CAIMA) monopolistic control is the root cause of the high prices, low quality and untimely delivery of fertilizers to farmers; and • The GoN adopts and enforces reformed fertilizer policies; • Private sector will respond to reformed policies with greater participation in the open market; • The fertilizer pricing reform will sufficiently offset the high cost of transport and logistics to make last mile fertilizer distribution profitable for firms; • There will be a more diversified and competitive pool of sellers on the market; • There will be high enough demand to meet the increased fertilizer supply; and • The fertilizer market in Niger faces barriers to entry that this sub-activity will address; The diagram below illustrates and describes the expected causal relationships specifically for the Statistical Capacity Development Sub-Activity of the Policy Reform Activity and synthesizes expected outcomes of that Sub-Activity.

Policy Reform Activity. The Policy Reform Activity aims to promote several major policy reforms directly linked to the success and sustainability of the Project. Specifically, the Activity will support: •  National Water Resource Planning Sub-Activity: Assessment of groundwater resources in southern Niger using remote sensing technology, detailed hydrogeological studies of priority sites to assess capacity and sustainable use of groundwater resource; and capacity building targeted at Nigerien technical working group to retain evaluation skills in-country.; •  Protected Areas Planning Sub-Activity: The development and implementation of natural resource and land use management plans for the protected areas and nearby communities affected by the Irrigation and Market Access Project in the Dosso Region, including (i) ecological assessments and land use studies necessary to identify and promote conservation and natural resource planning objectives; (ii) the development and implementation of management plans for Dosso Partial Faunal Reserve and Ramsar Convention site Zone Humide du Moyen Niger II; and (iii) support for the development of community land use plans within and adjacent to the protected areas; •  Fertilizer Distribution Reform Sub-Activity: The reform of the fertilizer distribution market to allow greater competition and private sector participation and to enable broad availability and affordability of fertilizers, especially to women and small farmers. The Sub-Activity will assist in the development of an action plan to: (1) open the fertilizer procurement and distribution process to competition by private firms; (2) allow for natural adjustments of fertilizer pricing in response to market demand and in alignment with regional markets; and (3) adopt and implement a fertilizer subsidy exit strategy that leaves in place a focused program to meet crisis needs of the most marginalized; and •  Statistical Capacity Development Sub-Activity: The development of the statistical capacities of the national data producers agencies including the National Institute of Statistics and key ministries (Water and Sanitation, Agriculture and Livestock, and Environment)) to (1) generate relevant, timely, gender-responsive and accurate productive sector data, including data disaggregated by income level, sex and age, to the maximum extent practicable; (2) analyze and inform the impacts of government policy related to growth strategies, investment, agricultural trade, natural resources and services; (3) measure economic growth and poverty reduction; and (4) stimulate the use of accurate and up-to-date data to inform government policies and programs. Specific logic diagrams do not exist for the first two sub-activities above because they have been included in the Compact to ensure sustainability of the results from the other activities. The diagram below illustrates and describes the expected causal relationships specifically for the Fertilizer Distribution Reform Sub-Activity of the Policy Reform Activity and synthesizes expected outcomes of that Sub-Activity.