| Project Detail |
24. The Project Development Objective (PDO) is to increase the participation of the private sector in the State’s economy with a focus on improving the business-enabling environment, strengthening agri-food value-chains and upgrading skills. PDO Level Indicators 25. The results of the project will be evaluated through the following three indicators: · Improved business-enabling environment: measured by the number of investment deals successfully facilitated13 by the Investment Promotion Agency (IPA); · Strengthened agricultural value chains: measured by the number of farmers in production clusters that have off-taker arrangements with agribusiness (disaggregated by gender and youth); · Upgraded skills14: measured by the number of beneficiaries of skills development programs that are hired or self-employed within 6 months after training (disaggregated by gender and youth). B. Project Components 26. The project is an IPF operation consisting of two inter-related components: a results-based component and an investment component. Component 1 which is results-based will disburse against agreed-upon actions, outputs and outcomes (DLIs) while Component 2 will finance select TA and investment activities to strengthen the government’s capacity for implementing the project and thereby support the achievement of the results under Component 1. The two components are inherently linked as shown in the project’s theory of change and results framework. Component 1: Results based financing to improve the business-enabling environment and foster private sector participation in the agri-food and skills sectors (US$200 million equivalent from IDA) 27. Under this component the project will support the Ogun State Government’s reform efforts to increase private sector investment through the following three results areas: (i) Improving the BEE; (ii) Strengthening agri-food value chains; and (iii) Upgrading skills. Progress towards achieving these objectives will be measured using nine (9) key DLIs which combine actions, outputs and outcomes. Under this component, project funds will be disbursed against selected Eligible Expenditure Programs (EEPs) up to capped amounts and conditioned on achievement of the target for agreed disbursement linked indicators (DLIs). Several DLIs will be tracked on a gender-disaggregated basis as outlined in the DLI Table in Annex 1. 13 An investment deal (minimum investment size US$5 million) shall be deemed as successfully facilitated by the IPA when one or more of the following has taken place by an investor that has signed an MoU with the IPA: (i) Press Statement by company HQ; (ii) Land lease/purchase signed; (iii) Local staff engaged; and/or iv) Business registration has been completed. 14 Upgrading skills will ensure more relevant skills are made available in the marketplace, which thereby will significantly contribute to improving the business-enabling environment. On the other hand, improving the skills delivery system requires a systematic involvement of the private sector. The project is expected to support these two mutually reinforcing linkages. Page 20 of 120 The World Bank Ogun State Economic Transformation Project (P164031) 28. Sub-component 1.1: Improving the BEE (US$50 million from IDA). The objective of this sub-component is to measure and mark progress towards the implementation of reforms to build an enabling business environment by addressing regulatory, and institutional challenges that serve as barriers to private sector investments. Activities to be tracked under this component include (i) strengthening the capacity and effectiveness of the Business Environment Council and other agencies to design and implement ease of doing business reforms in an inclusive way; (ii) strengthening the land administration system; and (iii) strengthening of the State’s capacity to promote, attract and retain domestic and foreign private investments. This sub-component will be implemented by the Ogun State Ministry of Commerce and Industry (OGMoCI), Ogun State Bureau of Lands (OGBoL) and OgunInvest. 29. Sub-component 1.2: Strengthening Agri-food Value Chains (US$75 million from IDA). The objective of this sub-component is to attract the private sector to participate in the development of key agri-food value chains in the State by addressing the binding constraints that are specific to the sector. This sub- component will track three types of activities: First, it will monitor the the development and implementation of the international best practice Framework for Responsible and Inclusive Land- Intensive Agricultural Investments (FRILIA15) in Ogun State, aiming at the achievement of the following results: (i) the adoption of FRILIA principles as a State policy, incorporating sound environmental and social risk management that would increase land use sustainability and efficiency, particularly in areas with heightened vulnerability to climate change; and (ii) the implementation of FRILIA as part of the Ogun State Ministry of Agriculture’s (OGMoA) agricultural lands’ application approval process. Second, the sub- component will foster the engagement of VCDFs which will facilitate timely linkage between producers, input suppliers and service providers, and off-takers through productive alliances. All productive alliances will include climate smart-solutions and practices, particularly at the level of producers. This will include seeking to lower the GHG emissions of those value chains, particularly by adopting low-emission practices in the crops and aquaculture sectors – for example using commercial feeds with high conversion efficiency and high-quality floating feed in place of traditional home-made feeds and energy efficient cold chains. The presence of VCDFs is expected to stimulate the emergence of small and medium enterprises to provide required services such as inputs, mechanisation, extension, business management, advisory services, processing etc. to value chain players. Finally, the sub-component will monitor the development of critical infrastructure to strengthen market linkages to production areas where value chain development alliances are being promoted and to ensure that those investments are climate-resilient. The focus will be on the development of existing and new small-scale irrigation, feeder roads and farm product aggregation centers. This sub-component will support: (i) feasibility studies for the selected infrastructure (including a master plan for small scale irrigation and feeder roads integrating climate resilience considerations); and (ii) the development of the selected infrastructure as well as necessary institutional arrangements for their maintenance and operation, all of which will be designed to increase climate resilience. This sub-component will be implemented by the OGMoA. 30. Sub-Component 1.3: Upgrading Skills (US$75 million from IDA). The objective of this sub-component is 15 The FRILIA is based on the Food and Agriculture Organization (FAO) Voluntary Guidelines for the Responsible Tenure of Land, Fisheries and Forests in the context of National Food Security, as well as the FAO Principles for Responsible Investment in Agriculture and Food Systems. It also draws on international good practice for environmental management, land acquisition and resettlement. |
