Public Disclosure Authorized

Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: PAD2484

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT APPRAISAL DOCUMENT

Public Disclosure Authorized

ON A
PROPOSED CREDIT

IN THE AMOUNT OF SDR70.6 MILLION

(US$100 MILLION EQUIVALENT)

TO THE

FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

Public Disclosure Authorized

FOR A
ETHIOPIA RESILIENT LANDSCAPES AND LIVELIHOODS PROJECT

July 9, 2018
Public Disclosure Authorized

Environment & Natural Resources Global Practice

Africa Region

This document has a restricted distribution and may be used by recipients only in the performance of
their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
 CURRENCY EQUIVALENTS

(Exchange Rate Effective May 31, 2018)

Currency Unit = Ethiopian Birr (ETB)

ETB 27.52 = US$1

SDR 1 = US$0.70589066

FISCAL YEAR
July 8 – July 7

Regional Vice President: Hafez M. H. Ghanem

Country Director: Carolyn Turk
Senior Global Practice Director: Karin Erika Kemper
Practice Manager: Magda Lovei
Task Team Leader(s): Paul Jonathan Martin
 ABBREVIATIONS AND ACRONYMS

AGP Agricultural Growth Program

BoA Bureau of Agriculture
CBPWDG Community Based Participatory Watershed Development Guidelines
CDD Community Driven Development
CDP Commune Development Program
CF Community Facilitator
CGIAR Consultative Group on International Agricultural Research
CIG Community Investment Group
CPF Country Partnership Framework
CRGE Climate Resilient Green Economy
CSA Climate Smart Agriculture
CSRP Community Storage Receipts Program
CWT Community Watershed Team
DA Development Agent
DFID Department for International Development (United Kingdom)
EFA Economic and Financial Analysis
EMP Environmental Management Plan
ESIF Ethiopia Strategic Investment Framework
ESMF Environmental and Social Management Framework
FHH Female-Headed Households
FTC Farmer Training Center
FY Fiscal Year
GCF Green Climate Fund
GEF Global Environment Facility
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit
(German Development Agency)
GoE Government of Ethiopia
GRM Grievance Redress Mechanism
GRS Grievance Redress Services
GTP Growth and Transformation Plan
ICS Individual Consultant Selection
IDA International Development Association
IGA Income Generating Activity
KLAUC Kebele Land Administration and Use Committee
KWT Kebele Watershed Team
LIFT Land Investment for Transformation Project
LSWI Land Surface Water Index
M&E Monitoring and Evaluation
MDTF Multi-Donor Trust Fund
MoALR Ministry of Agriculture and Livestock Resource
MoFEC Ministry of Finance and Economic Cooperation
MoWIE Ministry of Water, Irrigation and Electricity
MSE Micro and Small Enterprise
MYDP Multi-Year Development Plan
NDVI Normalized Difference Vegetation Index
NRLAIS National Rural Land Administration Information System
NRM Natural Resource Management
PCA Procurement Capacity Assessment
PDO Project Development Objective
PES Payment for Environmental Services
PIM Project Implementation Manual
PPR Post Procurement Review
PPSD Project Procurement Strategy Document
PSNP Productive Safety Net Program
PCU Project Coordination Unit
REILA Responsible and Innovative Land Administration Project
RLLP Resilient Landscapes and Livelihoods Project
RPF Resettlement Policy Framework
SA Social Assessment
SDP Social Development Plan
SLLC Second Level Landholding Certification
SLM Sustainable Land Management
SLMP-I Sustainable Land Management Project Phase-I
SLMP-II Sustainable Land Management Project Phase-II
SLWM Sustainable Land and Water Management
SORT Systematic Operations Risk-rating Tool
SURED Sustainable Use of Resources for Economic Development
TA Technical Assistance
UAV Unmanned Aerial Vehicles
WB World Bank
WLRC Water and Land Resource Centre
WMUP Watershed Management and Use Plan
WoANR Woreda Office of Agriculture and Natural Resources
WoLAU Woreda Office of Land Administration and Use
WUA Watershed User Association
 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

BASIC INFORMATION
BASIC_INFO_TABLE
Country(ies) Project Name

Ethiopia Ethiopia Resilient Landscapes and Livelihoods Project

Project ID Financing Instrument Environmental Assessment Category

Investment Project
P163383 B-Partial Assessment
Financing

Financing & Implementation Modalities

[ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC)

[ ] Series of Projects (SOP) [ ] Fragile State(s)

[ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s)

[ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country

[ ] Project-Based Guarantee [ ] Conflict
[ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster

[ ] Alternate Procurement Arrangements (APA)

Expected Approval Date Expected Closing Date

30-Jul-2018 07-Jul-2024

Bank/IFC Collaboration
No

Proposed Development Objective(s)

To improve climate resilience, land productivity and carbon storage, and increase access to diversified livelihood
activities in selected rural watersheds.

Components

Component Name Cost (US$, millions)

Green Infrastructure and Resilient Livelihoods 78.50

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Investing in Institutions and Information for Resilience 12.50

Rural Land Administration and Use 23.00

Project Management and Reporting 15.00

Organizations

Borrower: Ministry of Finance and Economic Cooperation

Implementing Agency: Ministry of Agriculture and Livestock Resource

PROJECT FINANCING DATA (US$, Millions)

SUMMARY -NewFin1

Total Project Cost 129.00

Total Financing 129.00
of which IBRD/IDA 100.00

Financing Gap 0.00

DETAILS -NewFinEnh1

World Bank Group Financing

International Development Association (IDA) 100.00

IDA Credit 100.00

Non-World Bank Group Financing

Counterpart Funding 10.00

Borrower 10.00

Trust Funds 19.00

Free-standing Cofinancing Trust Fund 19.00

IDA Resources (in US$, Millions)

Credit Amount Grant Amount Total Amount

National PBA 100.00 0.00 100.00

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Total 100.00 0.00 100.00

Expected Disbursements (in US$, Millions)

WB Fiscal Year 2019 2020 2021 2022 2023 2024 2025

Annual 4.21 11.07 18.88 22.18 21.15 16.89 5.63

Cumulative 4.21 15.27 34.15 56.34 77.49 94.37 100.00

INSTITUTIONAL DATA

Practice Area (Lead) Contributing Practice Areas

Environment & Natural Resources Agriculture, Climate Change, Energy & Extractives

Climate Change and Disaster Screening

This operation has been screened for short and long-term climate change and disaster risks

Gender Tag

Does the project plan to undertake any of the following?

a. Analysis to identify Project-relevant gaps between males and females, especially in light of
Yes
country gaps identified through SCD and CPF

b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or
Yes
men's empowerment

c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating

1. Political and Governance ⚫ Substantial

2. Macroeconomic ⚫ Low

3. Sector Strategies and Policies ⚫ Moderate

4. Technical Design of Project or Program ⚫ Moderate

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

5. Institutional Capacity for Implementation and Sustainability ⚫ Substantial

6. Fiduciary ⚫ Substantial

7. Environment and Social ⚫ Moderate

8. Stakeholders ⚫ Substantial

9. Other ⚫ Moderate

10. Overall ⚫ Substantial

COMPLIANCE

Policy
Does the project depart from the CPF in content or in other significant respects?
[ ] Yes [✓] No

Does the project require any waivers of Bank policies?

[ ] Yes [✓] No

Safeguard Policies Triggered by the Project Yes No

Environmental Assessment OP/BP 4.01 ✔

Performance Standards for Private Sector Activities OP/BP 4.03 ✔
Natural Habitats OP/BP 4.04 ✔
Forests OP/BP 4.36 ✔
Pest Management OP 4.09 ✔
Physical Cultural Resources OP/BP 4.11 ✔
Indigenous Peoples OP/BP 4.10 ✔
Involuntary Resettlement OP/BP 4.12 ✔
Safety of Dams OP/BP 4.37 ✔
Projects on International Waterways OP/BP 7.50 ✔
Projects in Disputed Areas OP/BP 7.60 ✔

Legal Covenants

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Sections and Description

Section I.B.1 of Schedule 2: The Recipient shall implement the Project in accordance with the Project
Implementation Manual, which shall be updated within one (1) month after the Effective Date in form and
substance satisfactory to the Association, setting forth the rules, methods, guidelines and procedures for the
carrying out of the Project.

Sections and Description

Section I.B.4 of Schedule 2: The Recipient shall select, and cause to be selected, activities to be carried out under
Parts 1 and 2 of the Project (“Sub-project”), in accordance with the eligibility criteria and procedures set out in the
Project Implementation Manual.

Sections and Description

Section I.C. of Schedule 2: The Recipient shall ensure that the Project is carried out with due regard to appropriate
health, safety, social, and environmental practices and standards, and in accordance with the Safeguards
Instruments.

Sections and Description

Section IV of Schedule 2: The Recipient shall appoint, and cause to be appointed, no later than three (3) months
after the Effective Date, the following staff in each Regional PCU: (a) one Procurement and Contract Management
Specialist, (b) one Mobile Procurement and Contract Management Specialist, and (c) one Monitoring and
Evaluation Specialist, all with qualifications, experience and terms of reference satisfactory to the Association.

Conditions
Type Description
Effectiveness Article IV. 4.01 (a): The Recipient has the following staff in place within the PCU with
qualifications, experience and terms of reference satisfactory to the Association: a Project
Coordinator, Senior Financial Management Specialist, two Procurement and Contract
Management Specialists, a Senior Monitoring and Evaluation Specialist, and a Database
Manager.

Type Description
Effectiveness Article IV. 4.01 (b): The Co-financing Agreement has been executed and delivered, and all
conditions precedent to its effectiveness or to the right of the Recipient to make
withdrawals under it (other than the effectiveness of this Financing Agreement) have been
fulfilled.

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The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

ETHIOPIA
ETHIOPIA RESILIENT LANDSCAPES AND LIVELIHOODS PROJECT

TABLE OF CONTENTS

I. STRATEGIC CONTEXT ...................................................................................................... 8

A. Country Context .................................................................................................................. 8
B. Sectoral and Institutional Context ...................................................................................... 9
C. Higher Level Objectives to which the Project Contributes ............................................... 10
II. PROJECT DEVELOPMENT OBJECTIVES ............................................................................ 11
A. PDO.................................................................................................................................... 11
B. Project Beneficiaries.......................................................................................................... 11
C. PDO-Level Results Indicators............................................................................................. 11
III. PROJECT DESCRIPTION.................................................................................................. 12
A. Project Components.......................................................................................................... 12
B. Project Cost and Financing ................................................................................................ 16
C. Lessons Learned and Reflected in the Project Design ...................................................... 17
IV. IMPLEMENTATION........................................................................................................ 18
A. Institutional and Implementation Arrangements ............................................................. 18
B. Results Monitoring and Evaluation ................................................................................... 18
C. Sustainability ..................................................................................................................... 19
D. Role of Partners................................................................................................................. 19
V. KEY RISKS ..................................................................................................................... 20
A. Overall Risk Rating and Explanation of Key Risks.............................................................. 20
VI. APPRAISAL SUMMARY .................................................................................................. 22
A. Economic and Financial (if applicable) Analysis ................................................................ 22
B. Technical............................................................................................................................ 23
C. Financial Management ...................................................................................................... 24
D. Procurement ..................................................................................................................... 24
E. Social (including Safeguards) ............................................................................................. 26
F. Environment (including Safeguards) ................................................................................. 28
H. World Bank Grievance Redress ......................................................................................... 29

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

VII. RESULTS FRAMEWORK AND MONITORING .................................................................... 30

ANNEX 1: DETAILED PROJECT DESCRIPTION ......................................................................... 68
ANNEX 2: IMPLEMENTATION ARRANGEMENTS .................................................................... 79
ANNEX 3: IMPLEMENTATION SUPPORT PLAN .................................................................... 100
ANNEX 4: ECONOMIC AND FINANCIAL ANALYSIS ............................................................... 102
ANNEX 5: SOCIAL DEVELOPMENT PLAN: POTENTIAL RISKS, CHALLENGES AND
RECOMMENDATIONS ........................................................................................................ 116
ANNEX 6: RLLP GENDER APPROACH AND ACTION PLAN ..................................................... 119
ANNEX 7: RLLP MAP .......................................................................................................... 127

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

I. STRATEGIC CONTEXT

A. Country Context

1. Ethiopia is a large, land-locked, and diverse country. Located in the Horn of Africa, Ethiopia covers
an area of 1.1 million km2 - about the size of France and Spain combined. With an estimated population
of about 100 million in 2015, out of which 80.5 percent are rural dwellers, Ethiopia is the second most
populous country in Sub-Saharan Africa. The country is a land of diverse nationalities and peoples, and its
biophysical environment includes a variety of ecosystems, with significant differences in climate, soil
properties, vegetation types, agriculture potential, biodiversity, and water resources. The natural
resource base remains the foundation for most livelihoods and is subject to considerable environmental
and climate risks. Despite past progress, a historic legacy of underinvestment still bears its mark as more
than half of the adult population is illiterate, and the country’s infrastructure deficit remains one of the
largest in the world. Ethiopia is undergoing a faster demographic transition than the rest of Africa, with a
rapidly rising working-age population that presents both opportunities and challenges (more than 60
percent of the population is below 25 years of age).

2. Ethiopia is one of the world’s poorest countries but has achieved substantial progress in
economic, social, and human development over the past decade. With a per capita income of US$660
(2016), Ethiopia remains the 15th poorest country in the world. Nonetheless, growth averaged nearly 11
percent per year since 2004 and extreme poverty1 fell from 55 percent in 2000 to 26.7 percent in 2016,
which is one of the most impressive poverty reduction results recorded internationally (within Sub-
Saharan Africa, only Uganda reduced poverty faster). Low levels of inequality have largely been
maintained. With a few exceptions, Ethiopia attained the Millennium Development Goals. Yet
vulnerability to return to poverty remains high, especially for those engaged in rural livelihoods depending
on rain-fed agriculture. Addressing gender gaps between men and women in access to education and
decision making, rights, employment, unpaid labor, land, and productive resources is essential for
economic growth in the country. World Bank (2009)2 estimates indicate that reducing basic gender
inequalities in education and the labor market could increase the annual Gross Domestic Product (GDP)
growth in Ethiopia by around 1.9 percentage points.3

3. The Government of Ethiopia (GoE) has embarked on a structural transformation of the economy
and society. The GoE has completed its first phase of the Growth and Transformation Plan (GTP-I) (2010–
2015), which set a long-term goal for Ethiopia to become a middle-income country by 2025, with a growth
rate of at least 11 percent per year during the plan period. During 2011–2015, Ethiopia grew at a rate of
10 percent. A second phase of the GTP (GTP-II) is under implementation for 2015–2020. GTP-II puts a
strong emphasis on structural transformation, industrialization, urbanization, and export promotion.
Public infrastructure investment has been at the center of the country’s economic strategy, and Ethiopia
has been able to achieve a substantial expansion of energy, road, railway, and telecom infrastructure,
financed by domestic and external public borrowing. Recent announcements indicate the GoE’s renewed

1 Extreme poverty in measured as consuming less than US$1.90 (2011 Purchasing Power Parity) a day.
2 Unleashing the Potential of Ethiopian Women Trends and Options for Economic Empowerment, June 2009.
3 An important contribution to poverty reduction given the elasticity of growth to poverty reduction.

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

commitment to improving the private sector investment climate.4 Public investments in basic service
provision, such as education and health, have contributed to poverty reduction, as did the introduction of
rural safety nets. GTP-II continues the Government’s commitment that women and youth benefit from
and participate in the overall economic, political, and decision-making processes in Ethiopia.

4. GTP-II priorities for natural resource management build on the commitments contained in the
Climate-Resilient Green Economy (CRGE) Strategy launched by the GoE in 2011, which seeks to foster
economic development and growth, reduce greenhouse gas emissions, and improve resilience to climate
change. Within the framework of the CRGE Strategy, GTP-II goals for natural resource conservation and
use include targets for the rehabilitation and sustainable management of watersheds5, the conservation
of biodiversity, and expanded provision of land use certificates, as well as the development of climate-
resilient agriculture, including promotion of climate-resilient crop species.

B. Sectoral and Institutional Context

5. The intersection of land management, rights, and use forms the key development issue for
millions of rural Ethiopians facing water insecurity, food insecurity, land tenure insecurity, and livelihood
insecurity – all amplified by climate variability and change. Climate impacts in Ethiopia are felt primarily
through water stress, which is affected by land use changes and degradation that undermine watershed
function. The minimum estimated annual cost of land degradation in Ethiopia is 2-3 percent of Agricultural
GDP, before accounting for downstream affects such as increased flood risk.6 While a onetime occurrence
of such a loss might be manageable, for an economy based on agriculture the cumulative losses to land
degradation over time represent a significant drag on rural growth and poverty reduction. Successful
remediation has been achieved through a combination of better natural resource management and
resource rights, jobs and livelihood enhancements, and gender outreach in targeted degraded
watersheds. Restoration effects include a range of resilience-related results, including increased soil
moisture and soil fertility important for higher and less variable crop yields, improved water availability,
and increased carbon sequestration – all of which are priorities under GTP-II and the CRGE Strategy.

6. This progress has been achieved by the Government and local communities largely through
investment and technical assistance under the MoALR’s Sustainable Land Management (SLM) Program.
Working through Regional Bureaus of Agriculture (BoAs) and woreda (equivalent to district)
administrations over the last ten years, the SLM Program has restored productivity in more than two
million hectares of degraded watersheds in six regional states of the Ethiopian highlands. The World Bank
has provided financing for the SLM Program through the first Sustainable Land Management Project
(SLMP-I, 2008-2013) and the subsequent SLMP-II (2013-2018), that together with financing from other
Development Partners7 has allowed the SLM Program to support interventions in a total of 223 major
watersheds, out of an estimated 700 that would benefit from SLM interventions.8

4 in 2017, Ethiopia’s ‘Doing Business’ ranking was 159.

5 A watershed may be defined as the maximum area from which all water drains to a common outlet.
6 World Bank. 2007. The Cost of Land Degradation in Ethiopia: A Review of Past Studies.
7 Key Development Partners providing financial support and technical assistance to the Government’s SLM Program include the

Governments of Norway, Germany and Canada, the European Union, and the International Fund for Agricultural Development.
8 Major watersheds under the SLM Program cover approximately 10,000 hectares each.

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

7. IDA financing has helped restore productive capacity and build resilient livelihoods in 135 highland
watersheds through an integrated package of activities that includes management of natural resources
on more than half a million hectares of degraded communal and smallholder lands. Through soil and water
conservation structures, enclosures to limit free grazing, and afforestation or reforestation of more than
80,000 hectares, these activities have led to an average 9 percent increase in vegetation cover in treated
watersheds. Complementing these physical interventions, IDA financing for the SLM Program has
strengthened MoALR’s support for land rights through the issuance of landholding certificates to over
300,000 households, including more than 200,00 women who have received titles either individually or
jointly with their husbands, and more than 7,000 landless youth who have received titles to communal
holdings in exchange for restoring land. To further ensure that local communities derive livelihood
benefits from these investments, more than 130,000 smallholders in the targeted watersheds have
participated in income-generating activities under the SLM Program, including for improved cookstove
adoption that reduces fuelwood demand, women’s labor and respiratory illnesses.

C. Higher Level Objectives to which the Project Contributes

8. The Resilient Landscapes and Livelihoods Project (RLLP) features in the Bank’s Country Partnership
Framework (CPF) for FY 17-21 as a government flagship program addressing the CPF’s resilience pillar,
with a funding commitment from IDA-18 of US$100 million. It will leverage and scale up support to the
MoALR’s SLM Program while also contributing to the climate, forest, water, energy, and land tenure
targets in the GTP-II and CRGE Strategy, as well as the forthcoming GTP-III. The targets for natural
resource management set out in GTP-II include an additional 19 million hectares to be treated with
physical soil and water conservation structures, an increase in national forest coverage from 15 to 20
percent, and the provision of land use certificates to more than 7 million households. To help meet these
goals, and to bring the benefits of the Government’s SLM Program to further rural communities affected
by land degradation, the RLLP will scale up the successes of the SLM Program, and complement these
achievements with innovations aimed at sustaining project benefits.

9. In addition to the GTP-II and the CRGE Strategy, this transformative approach will contribute to a
number of other national strategies, including Ethiopia’s Intended Nationally Determined Contribution
(INDC, submitted to the UNFCCC in 2017)9, the Climate Resilience Strategy for Agriculture and Forestry
(2015)10, the National Adaptation Plan to Address Climate Change (2017)11, the SLM Investment
Framework12, the emerging National Forest Sector Strategy and National REDD+ Strategy13, as well as the
sector strategies for energy, water, and agriculture. This will complement financing from the Pilot Program
for Climate Resilience and the BioCarbon Fund, with which the Bank is further supporting the
government’s CRGE Facility and four line ministries led by the Ministry of Finance and Economic
Cooperation (MoFEC), to implement a Multi-Sector Investment Plan for climate resilience in key sectors,
including agriculture, forestry, water resources, and energy.

9 http://www4.unfccc.int/ndcregistry/PublishedDocuments/Ethiopia%20First/INDC-Ethiopia-100615.pdf
10 http://www.agcrge.info/files/Vision/CRGE.pdf
11 https://www.slideshare.net/NAP_Global_Network/strategic-priorities-of-ethiopias-national-adaptation-plan
12 Ethiopian Strategic Investment Framework for Sustainable Land Management, USAID 2010
13 REDD+ stands for countries' efforts to reduce emissions from deforestation and forest degradation, and foster conservation,

sustainable management of forests, and enhancement of forest carbon stocks. See https://ethiopiareddplus.gov.et/redd-
readiness/redd-national-strategy/

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

II. PROJECT DEVELOPMENT OBJECTIVES

A. PDO

10. The Project Development Objective (PDO) is to improve climate resilience, land productivity and
carbon storage, and increase access to diversified livelihood activities in selected rural watersheds.

B. Project Beneficiaries

11. The primary beneficiaries of the RLLP will be 645,000 rural households (approximately 3.2 million
individuals) on degraded land, facing land tenure and water insecurity in 152 selected watersheds. Indirect
beneficiaries include: (i) communities adjacent to project intervention areas adopting SLM and Climate
Smart Agriculture (CSA) practices through demonstration effects, as observed under SLMP-II; (ii) private
sector participants and end-consumers in value chains targeted by the project; (iii) households outside
project areas benefiting from the creation of land certification capacity at woreda and regional level; (iv)
recipients of capacity building at all levels of government, as well as in national partner organizations; and
(v) communities outside project areas benefiting from groundwater recharge, reduced flooding, and lower
sediment loads, as a result of SLM interventions.

12. Women will be specifically targeted to ensure they fully participate in project benefits through a
variety of mechanisms, including: (i) required participation of women in Community Watershed Teams
(CWTs), Kebele Watershed Teams (KWTs), Kebele Land Administration and Use Committees (KLAUCs),
and Watershed User Associations (WUAs); (ii) provision of joint land certificates to married couples, and
individual land titles for women in Female-Headed Households; (iii) promotion of women’s participation
in Common-Interest Groups (CIGs – see Annex 1 for details) for income-generating activities; and (iv)
targeted support for the production and marketing of improved cookstoves, bringing health gains and
time-savings that benefit women in particular.

C. PDO-Level Results Indicators

13. The PDO-level results indicators for the RLLP are as follows:

1. Land area under sustainable landscape management practices (Ha)

1a. Land area restored or reforested/afforested (Ha)
1b. Land area with productivity enhancing practices applied (Ha)
2. Project area showing an increase in the NDVI14 correcting for climate effects (Percent)
3. Project area showing an increase in the Land Surface Water Index (LSWI)15 correcting for climate
effects (Percent)
4. Net greenhouse gas emissions (metric tons)

14 The NDVI uses the visible and near-infrared bands of the electromagnetic spectrum to analyze remote sensing measurements
to determine the extent to which a target contains live green vegetation.
15 The Land Surface Water Index (LSWI) uses the shortwave infrared and near-infrared bands of the electromagnetic spectrum

to analyze remote sensing measurements to determine the amount of water in vegetation and soil.

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

5. Households adopting diversified livelihood activities supported by the project (Number)

5a. Female-headed households adopting diversified livelihood activities supported by the project
(Number)

14. Building resilience is a central consideration under RLLP, but is a term that is often loosely
interpreted. In general, “resilience” refers to a heightened system capacity to anticipate, respond to, and
recover from hazards. Resilience-building involves strengthening three specific capacities:

• Absorptive capacity: The ability of people, assets, and systems to prepare for, mitigate, or prevent
negative impacts of hazards so as to preserve and restore essential basic structures and functions, for
example through protection, robustness, preparedness, and/or recovery.
• Adaptive capacity: The ability of people, assets, and systems to adjust, modify or change
characteristics and actions to moderate potential future impacts from hazards so as to continue to
function without major qualitative changes, for example through diversity, redundancy, integration,
connectedness, and/or flexibility.
• Transformative capacity: The ability to create a fundamentally new system so as to avoid negative
impacts from hazards.

15. The RLLP seek to strengthen these capacities in a number of ways, including: (i) absorptive
capacity, through SLM and CSA interventions, which will be assessed through PDO indicators 1, 1a and 1b;
(ii) adaptive capacity, through Income-Generating Activities (IGAs) that support diversification of
livelihoods, assessed through PDO indicators 5 and 5a; and (iii) transformative capacity, through CSA,
connections to value chains, and land certification, that provide a basis for more fundamental socio-
economic change, which will be assessed through PDO indicators 1b, 5 and 5a, and monitored through
Intermediate Results indicators IR 6, 6a and 10. The Results Framework provides additional details of how
each indicator will be measured to capture progress in these various dimensions.

III. PROJECT DESCRIPTION

A. Project Components

16. Building on lessons learnt through implementation of the SLM Program, the RLLP will complement
core investments in biophysical watershed restoration with a set of associated activities supporting
sustainable livelihoods in restored landscapes16, through support for CSA, diversified IGAs, connections to
value chains, and improved land tenure. The project area will include a total of 152 major watersheds
located in the Ethiopian Highlands, averaging approximately 10,000 hectares each. Under a phased
approach, the 45 watersheds supported under SLMP-I will receive assistance to graduate from project-
based support, including creation of WUAs and preparation of Watershed Management and Use Plans
(WMUPs). Support for the 90 SLMP-II watersheds will allow implementation of their Multi-Year
Development Plans (MYDPs) for watershed restoration to be completed, prior to provision of graduation

16A landscape is a socio-ecological system, including topography, natural resources, biodiversity and various land uses, that is
influenced by climate and culture, as well as ecological process and human activity. A landscape approach refers to the
integrated management of community, conservation and commercial interests, representing a shift from a sectoral to a
collaborative approach that sustains the functionality of the landscape over time.

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support as for SLMP-I watersheds. Seventeen new watersheds selected for RLLP, prioritized for extent and
severity of land degradation17, will receive assistance for the preparation of MYDPs, followed by
investment in the identified SLM interventions.

17. This phased approach will help clarify and strengthen linkages with other flagship programs of the
MoALR, including the Productive Safety Net Program (PSNP) and the Agricultural Growth Program (AGP),
which are both supported by the World Bank (P120957 and P148591, respectively). A number of
communities graduating from food-insecure status in watersheds newly identified for RLLP will transition
from support under PSNP to the SLM Program. The PSNP includes support for food-insecure households
in the form of employment in public works, including SLM activities. As these communities transition out
of food-insecure status, those that are living in targeted degraded watersheds will become eligible to
participate in SLM, livelihood and other activities, according to the conditions of the SLM Program. At the
other end of the SLM project cycle, communities in watersheds restored under SLMP-I and SLMP-II will
graduate from the SLM Program, but will receive support for sustainable agricultural productivity under
AGP and other government programs.

18. The RLLP will be implemented through four integrated components, as summarized below and
detailed in Annex 1.

Component 1. Green Infrastructure and Resilient Livelihoods (Total: US$78.5 million of which US$65
million (SDR45.9 million equivalent) from IDA, US$8.5 million from the Multi-Donor Trust Fund - MDTF;
and US$5 million from GoE)

19. This component will support the restoration of degraded landscapes in selected watersheds and
help build resilient livelihoods on this newly productive foundation. This will be achieved through three
sub-components, supporting: (i) the implementation of Sustainable Land and Water Management
(SLWM) practices in line with MYDPs in 90 SLMP-II watersheds and 17 newly identified watersheds; (ii)
the adoption of CSA practices in 200 restored micro-watersheds selected from SLMP-I and SLMP-II
intervention watersheds; and (iii) the promotion of livelihood-diversifying IGAs in all RLLP watersheds,
and support in 16 pilot watersheds for linkages to value chains. While the Government of Norway has
provided a letter of commitment for the MDTF resources indicated above, there remains a low risk that
this co-financing may not be agreed. In this case, the number of new watersheds selected for SLWM
interventions would be reduced from 17 to 14, and the target values to be achieved against PDO-level
results indicators 1, 1a and 4 would be reduced by 2 percent, 1 percent and 3 percent respectively. The
total financing for this component would then be adjusted to US$71 million, of which US$66 million from
IDA (SDR46.6 million equivalent), and US$5 million from GoE (see Section III.B, Project Costs and
Financing)

20. This component will complete the implementation of SLWM interventions identified in the MYDPs
of 90 SLMP-II watersheds, and extend these proven interventions to 17 additional watersheds that are
vulnerable to climate variability and change, recurrent drought and floods, and land degradation. SLWM
interventions on both communal and individual lands will be financed (with differentiated levels of
community contribution), as well as infrastructure such as green corridors linking fragmented forests, and

17 This prioritization was undertaken by the Federal PCU, using data provided by the WLRC of Addis Ababa University.

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community access roads designed to optimize water-harvesting, together with the necessary technical
advice for specific outputs, such as the preparation of MYDPs and WMUPs, and the establishment of
WUAs. Proven SLWM practices include: (i) soil and water conservation infrastructure such as terraces,
water harvesting trenches, check dams, small reservoirs and wells, and other civil works; (ii) soil fertility
and moisture management; and (iii) assisted natural regeneration, vegetative gully reclamation,
enclosures plus livestock land-use rationalization, establishment of grazing corridors, as well as
intercropping, low tillage, and sylvo-pastoral management strategies.

21. Building on the biophysical landscape restoration achieved through SLWM practices, this
component will extend the ongoing CSA pilot under SLMP-II to a further 200 micro watersheds, providing
support for activity packages that address: (i) farm water and soil moisture management; (ii) integrated
soil fertility and soil heath management; (iii) crop development and management; and (iv) sustainable
livestock production, through feed development and integrated agro-silvo-pastoral practices. To
strengthen community resilience through livelihood diversification, this component will extend the
support for IGAs provided under SLMP-II to all RLLP watersheds, providing grants to CIGs for activities
such as apiculture, poultry rearing, sheep and goat fattening, vegetable and fruit farming, and the
production and marketing of improved cook stoves which help reduce pressure on watersheds’ natural
resources. The RLLP will further promote CSA and livelihood diversification through stronger engagement
with the private sector, providing support in 16 pilot watersheds for value chain connections in the form
of: (i) business plan development; (ii) storage facilities and small equipment for grading and processing;
(iii) collaboration with other value chain programs to facilitate market linkages; and (iv) development of
contracts with cooperatives, cooperative unions and other private sector partners.

Component 2. Investing in Institutions and Information for Resilience (Total: US$12.5 million of which
US$6 million (SDR4.2 million equivalent) from IDA, and US$6.5 million from MDTF)

22. This component will build capacity for the promotion and management of SLWM practices, and
improve information for better decision-making in supporting resilient landscapes and diversified rural
livelihoods in the project area. This will be achieved through the implementation of the following sub-
components: (i) capacity building, information modernization and policy development; (ii) impact
evaluation, knowledge management and communication. Should the MDTF co-financing from the
Government of Norway not be agreed, the composition of financing for this component would be adjusted
to US$12.5 million from IDA (SDR8.8 million equivalent - see Section III.B, Project Costs and Financing)

23. This component will provide technical assistance at the local level to build local government
capacity for planning and implementing SLWM interventions. This will include support for: (i) Community
Facilitators (CFs) at kebele level; (ii) accountants to support Woreda Offices of Agriculture and Natural
Resources (WoANRs); and (iii) targeted assistance for specific technical needs, such as community
monitoring of surface and groundwater, piloting access to agri-weather information, and training in
cadaster development and land registration. The project will also pilot new technologies for information
modernization at the local level, including electronic tablets for gathering geospatial information, and
Unmanned Aerial Vehicles (UAVs – or drones) for land certification mapping. Support for policy
development under this component will focus on: (i) the development and application of a regulatory
framework for WUAs; (ii) agreements with private and public-sector entities for investment in SLWM
through Payments for Environmental Services (PES); and (iii) strengthening the land administration

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system.

24. To build the evidence base for SLM decision-making, this component will support (i) a bio-physical
impact evaluation of SLWM interventions at the landscape level, to be conducted through a partnership
between the MoALR and the Water and Land Resource Centre (WLRC) of Addis Ababa University, and (ii)
a plot-level evaluation of the impact of CSA on agricultural productivity, through a partnership between
MoALR and CGIAR institutions. These will complement a household-level livelihoods impact evaluation to
be conducted in parallel (under separate financing), led by the Gender Innovation Lab of the World Bank’s
Africa Region. The livelihoods impact evaluation will consider gender-nuanced household outcomes, such
as land-use decision making, investments in land and livelihood diversification, as well as employment
and earnings outcomes. The Ethiopia Development Research Institute’s (EDRI’s) Environment and Climate
Research Center will build synergies between and draw policy recommendations from the three levels of
analysis. This component will also provide resources to share the experiences and manage the knowledge
generated by the project, as well as to communicate lessons learnt to a broad audience.

Component 3. Rural Land Administration and Use (Total: US$23 million of which US$20 million (SDR14.1
million equivalent) from IDA, and US$3 million from MDTF)

25. This component will strengthen the rural land administration system that secures tenure rights,
optimizes land use, and empowers land-users to sustainably invest in productive landscapes. The
component will provide security of tenure to smallholder farmers in RLLP watersheds through Second
Level Landholding Certification18 (SLLC) as an incentive to increase the adoption of SLM technologies and
practices, and will provide targeted landless youth with communal land certificates in exchange for land
restoration. Half of the SLLC and communal certificate title-holders will be women. This component will
also extend the on-going local-level participatory land-use planning exercise at kebele level within RLLP
watersheds, and will support the rollout of the National Rural Land Administration Information System
(NRLAIS) in RLLP woredas.

26. Should the MDTF co-financing from the Government of Norway not be agreed, the number of
SLLCs and communal land certificates to be issued would be reduced, as would the number of locations
in which support is provided for land-use planning and the rollout of the NRLAIS. However, these changes
would not affect the target values of the PDO-level results indicators. In this case, the total financing for
this component would be adjusted to US$11.5 million from IDA (SDR8.1 million equivalent - see Section
III.B, Project Costs and Financing).

Component 4. Project Management and Reporting (Total: US$15 million of which US$9 million (SDR6.4
million equivalent) from IDA, US$1 million from MDTF, and US$5 million from GoE)

27. This component will ensure effective implementation and reporting on project activities with due

18 In the late 1990’s the GoE embarked on an ambitious program to document and register lands held by rural households. This
“first-level” land certification program was designed to increase tenure security, but did not map individual plots. To address
these limitations, rural SLLC was first piloted in 2005 under the terms of the Federal Land Administration and Use Proclamation
No. 456/2005, providing additional spatial data allowing for the development of cadastral maps for improved land use
management and administration.

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diligence and integrity. The component will finance the operational costs of the PCUs in MoALR and
Regional State Bureaus of Agriculture and Natural Resources. These PCUs will carry out all fiduciary
aspects of project implementation including financial management, procurement, environmental and
social safeguards, as well as Monitoring and Evaluation (M&E) and reporting. Should the MDTF co-
financing from the Government of Norway not be agreed, the composition of financing for this component
would be adjusted to US$10 million from IDA (SDR7.1 million equivalent) and US$5 million from GoE (see
Section III.B, Project Costs and Financing).

B. Project Cost and Financing

Project cost IDA Financing Trust Funds Counterpart
Project Components
(US$m) (US$m) (US$m) Funding

Component 1. Investment in Green Infrastructure and Resilient

78.5 65 8.5 5
Livelihoods

Component 2. Investing in Institutions, Information and

12.5 6 6.5 -
Monitoring for Resilience

Component 3. Rural Land administration and Use 23 20 3 -

Component 4. Project Management and Reporting 15 9 1 5

Total Project Costs 129 100 19 10

28. The indicated Trust Fund financing would be provided by the Government of Norway through a
MDTF. The Government of Norway has provided the Bank with a letter of commitment indicating the
intent of the Norwegian Ministry of Foreign Affairs to support the RLLP, subject to the project’s approval
by the World Bank Board, Norway’s assessment of the Project Appraisal Document, and a satisfactory
outcome of the negotiation of the Administration Agreement for the MDTF. There remains a low risk that
this co-financing may not be agreed however, in which case project financing will be adjusted as shown
below.

Project Costs and Financing should MDTF resources from the Government of Norway not be approved:

Project cost IDA Financing Counterpart

Project Components
(US$m) (US$m) Funding
Component 1. Investment in Green Infrastructure and Resilient
71 66 5
Livelihoods

Component 2. Investing in Institutions, Information and

12.5 12.5 -
Monitoring for Resilience

Component 3. Rural Land administration and Use 11.5 11.5 -

Component 4. Project Management and Reporting 15 10 5

Total Project Costs 110 100 10

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C. Lessons Learned and Reflected in the Project Design

29. Results from SLMP-II financing are well documented.19 During a major drought in 2015-16 there
is evidence that water and food security in participating districts were strengthened compared to
untreated areas. Degraded lands have been brought back into production for local farmers, dry season
base flow of streams and depth to water table are improving, and protective vegetation cover was either
maintained or expanded, as verified by remote sensing. In addition, approximately 9 million tons of
additional CO2e have been accumulated in restored productive lands in SLMP-II areas. Smallholder
farmers regularly express how their identity and sense of place has also been restored through landscape
restoration and improved legal land rights. Many community members who were ready to migrate
remained in their birthplace, and were able to afford to send their children to school. They were able to
improve nutrition by producing vegetables and fruits using small-scale irrigation, by diversifying through
poultry, apiculture and woodlot production, and by improving livestock productivity through forage
management.

30. A strategic lesson reflected in the design of RLLP is the need to provide a mechanism and
supporting elements to allow watersheds to graduate from project-based assistance and continue
sustainable management of restored landscapes through normal government mechanisms. Under RLLP,
support will be provided to extend experience from the Amhara Region with the creation of WUAs, as
legal entities capable of sustaining participatory watershed management when project-based support
ends. RLLP will also prepare watersheds for graduation through (i) building local government capacity to
design and manage SLWM interventions, (ii) strengthening incentives for investment in sustainable land
management through land certification, and (iii) improving returns to sustainable productive activities by
promoting CSA and forging connections to value chains. The latest technical lessons are being captured in
an update of MoALR’s Community-Based Watershed Development Guidelines which will serve as the
principal technical guidance document for SLM interventions under RLLP. Two broad technical lessons
are: (i) area closures to limit free grazing for erosion control should be complemented by fodder
production to better support enclosed livestock management practices; and (ii) support for CSA and
linkages to value chains reinforce incentives for the maintenance of SLWM investments. Lessons regarding
SLM Program implementation include the importance of: (i) aligning project budgeting systems with the
GoE budget calendar; (ii) including the costs of environmental mitigation measures in subproject designs;
and (iii) resources to upgrade monitoring and evaluation.

31. Lessons can also be drawn from comparable operations in other countries. In Rwanda, the Land
Husbandry, Water Harvesting and Hillside Irrigation Project, has demonstrated the value of combining
support for SLM with CSA and the development of market linkages. The Karnataka Watershed Project in
India, has already won awards in the development of an integrated data base (Land Resource Inventory).
As a result of the demonstrated value of this tool to inform evidence-based project investments, this is
now being scaled up to cover all districts. In Nigeria, the Erosion and Watershed Management Project has
demonstrated the importance of addressing gully erosion as part of a larger catchment management plan,
including investments in soil and water conservation both at gully sites and upstream to reduce further
erosion, and pioneering the use of vegetative interventions (bio-engineering) as part of the solution. In
Malawi, the Shire River Basin Management Project is piloting innovative approaches for integrated

19 A video of the SLMP-II approach and achievements is available at https://www.youtube.com/watch?v=nak-UUZnvPI&t=1s

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watershed management, and has demonstrated the value of starting planning at a landscape level to
identify strategic areas for investments, and then planning at smaller scales in more detail for concrete
action plans that villagers can implement.

IV. IMPLEMENTATION

A. Institutional and Implementation Arrangements

32. Implementation will be carried out by the MoALR through all five levels of government (federal,
regional, zonal, woreda (equivalent to district) and kebele (equivalent to sub-district)), using the
government’s existing robust implementation structure for the SLM Program. This will be reinforced
through signature of an MoU between the MoALR and regional governments clarifying accountability and
targets at all levels. While these entities and their staff are well prepared to implement RLLP in the 135
woredas of SLMP-I (P107139) and SLMP-II (P133133), implementation in the 17 new woredas identified
for RLLP will require a start-up period of capacity building and community mobilization. Project
management, financial management, and procurement are all currently rated satisfactory or moderately
satisfactory under the ongoing SLMP-II.

33. At the local level, implementation of MYDPs is undertaken by Community CWTs, KWTs, and the
Woreda SLM core team. Together with part-time Community Facilitators (CFs), and full-time kebele
Development Agents (DAs), these structures will: (i) facilitate community participation in preparation and
implementation of MYDPs; (ii) develop annual work plans and budgets; (iii) identify training needs; and
(iv) conduct monitoring and evaluation. Implementation of Component 3 will be undertaken jointly by the
Woreda Office of Land Administration and Use (WoLAU), the KLAUC, and the Land Administration and Use
DAs. In addition, the project will contract technical advisors for specific outputs, such as preparation of
MYDPs and WMUPs, establishment of WUAs, support to CSA adoption, and development of business
plans for IGAs and value chain linkages.

34. At the federal and regional levels, the SLM Program is guided by National and Regional SLM
Steering and Technical Committees. MoUs will be signed between MoALR and the Regional BoAs for
implementation of the project, defining each Region’s contribution to the project’s objectives. The
National and Regional Steering Committees will oversee execution of annual work plans and achievement
of results defined in the MoUs. At the regional level, the Regional BoAs will lead implementation of the
project, reviewing and consolidating annual work plans, budgets, procurement plans and progress reports
submitted by the participating woredas.

B. Results Monitoring and Evaluation

35. MoALR’s M&E system under SLMP-II has experienced implementation challenges. Learning from
this experience, for the new operation, MoALR will: (i) strengthen M&E at all levels; (ii) build systems and
capacity in government to undertake M&E; (iii) support data collection and management for use by the
project M&E system; and (iv) continue the partnership with WLRC for the development of a GIS database
of biophysical information and SLM Program interventions. As described above, Component 2 will
support impact evaluations of SLM and CSA interventions, complementing a livelihoods impact evaluation

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to be led by the World Bank.

C. Sustainability

36. MoFEC and MoALR are committed to scaling-up and ensuring the long-term sustainability of the
Government’s proven flagship SLM Program, for which the World Bank has been the largest financier. In
addition to IDA financing, the Government has requested the World Bank to be a Green Climate Fund
(GCF) delivery partner to secure additional SLM financing to address the expected climate change
increment to land degradation, and to convene financing from a variety of other sources to help achieve
transformative impact.

37. The RLLP will place emphasis on support for SLMP-I and SLMP-II watersheds to graduate from
project-based assistance and continue management of restored landscapes through mainstream
mechanisms. Project-specific watershed committees will transition into WUAs guided by WMUPs, and
local governments will receive support to design and manage SLWM interventions. Long-term incentives
for SLM will be further strengthened through land certification and value chain linkages for improved
returns to sustainable productive activities. RLLP will also seek to identify innovative sources of SLM
financing, including PES from either (i) private sources with an interest in restored watersheds, as
exemplified by the recent agreement with Raya Brewery-BGI Ethiopia in the Tigray Region20, or (ii) public
sources such as municipalities and River Basin Authorities with an interest in improved catchment
management to extend the lifetime and productivity of hydrological infrastructure, including for
hydropower, irrigation and water supply.

38. The sustainability of SLWM interventions will also be promoted through the demonstration effect
of interventions under RLLP. Informal spill-over effects can be important: for example, CSA pilot
watersheds have been visited by farmers and extension workers from adjacent areas and replicated
through the government extension system. More formally, the biophysical, CSA and livelihoods impact
evaluations of RLLP will provide robust evidence to justify continued investment in SLM and CSA. The
introduction of new technologies provides an additional mechanism for sustainability, for example the
development of guidelines for community roads to also serve as water harvesting structures, and pilot
activities building on evidence of higher drought tolerance of landrace varieties of wheat and barley.

D. Role of Partners

39. SLMP-II benefitted from parallel financing from the German Development Agency Deutsche
Gesellschaft für Internationale Zusammenarbeit (GIZ) for Cluster Advisors who supported extension,
technical planning, and results reporting at woreda and kebele levels. The new GIZ program launched in
2018, Sustainable Use of Resources for Economic Development (SURED), will play an important role in
providing training for technical assistance to be contracted under RLLP, as well as quality control of these
services. RLLP will also be coordinated with parallel financing to the SLM Program provided by the
Government of Germany through KfW Development Bank, as well as financing for rural land
administration and certification from a variety of sources, notably the Department for International

20On May 13, 2018, Raya Brewery-BGI Ethiopia signed an MoU with the Tigray Bureau of Agriculture and Natural Resources,
Enda-Mekhoni Woreda, Mekan Kebele, and Mekelle University, for investment in SLM activities to protect the catchment area
of the water-source for the brewery.

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Development (DFID) of the United Kingdom (Land Investment for Transformation - LIFT), the Government
of Finland (Responsible and Innovative Land Administration - REILA), and the Government of Germany
(for land use planning).

40. IDA resources provided through RLLP will be blended with grants from bilateral agencies through
a MDTF. The Government of Norway has committed to extend the same level of support it provided to
SLMP-II through a contribution to the MDTF for RLLP, and the Government of Canada has also expressed
interest in contributing. While the Government of Norway has provided a letter of commitment for the
Trust Fund resources indicated, there remains a low risk that this co-financing may not be agreed. In this
case it would be necessary to: (i) reduce the number of new watersheds selected for SLWM interventions
from 17 to 14, and correspondingly reduce the target values to be achieved against PDO-level results
indicators 1, 1a and 4 by 2 percent, 1 percent and 3 percent, respectively; and (ii) reduce the number of
SLLCs and communal land certificates to be issued, as well as the number of locations in which support is
provided for land-use planning and the rollout of the NRLAIS, although these changes would not affect
the target values of the PDO-level results indicators.

41. At the Government of Ethiopia’s request, the World Bank is preparing proposals for additional
financing to RLLP from (i) the GCF, with a proposal submitted for consideration by the GCF Board meeting
to be held in October 2018, and (ii) the Global Environment Facility (GEF), to be financed from Ethiopia’s
GEF-7 allocation.

V. KEY RISKS

A. Overall Risk Rating and Explanation of Key Risks

42. The overall risk to achieving the development objective is Substantial. The individual risks rated
substantial or high are listed below, along with the main mitigation actions during implementation.

43. Political and governance risk is rated Substantial. On June 5, 2018, the House of People’s
Representatives approved the lifting of the State of Emergency which had been re-instated in February
2018. Although the situation has stabilized since the nomination of a new Prime Minister in April 2018,
there remains a risk that implementation of the proposed operation could be negatively impacted should
civil disturbances recur. While the extent to which project-specific measures can mitigate this risk is
limited, the RLLP will adopt the approach of other Bank-financed operations, including: (i) careful
implementation support mission planning that emphasizes security; (ii) strategic communication and
outreach; (iii) sound safeguards monitoring building on SLMP-II experience and capacity; and (iv)
enhanced transparency in project-supported activities. RLLP will also contribute to alleviating some of the
drivers of civil unrest, including natural resource degradation, rural landlessness and joblessness.

44. Institutional capacity for implementation and sustainability risk is Substantial, due to a number
of issues including: (i) the restructuring of the GIZ program supporting the SLM Program, reducing the
number of Cluster Advisors available for field coaching at the local level; (ii) the limited human resources
available at the field level; (iii) the challenge of implementing a reliable and cost-effective M&E system;
and (v) weak coordination among institutions and programs, including between the Natural Resource
Management (NRM) Directorate of MoALR and the PCU. This set of risks will be mitigated through: (i)

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continual training on project management and monitoring at all levels, in coordination with the GIZ SURED
project; (ii) signature of an MoU between the MoALR and Regional BoAs clarifying accountability and
targets at all levels; and (iii) coordination between development partners through the Rural Economic
Development and Food Security platform of the MoALR, and its Technical Committee on SLM.

45. Fiduciary risk is rated Substantial due to persistent issues related to procurement and financial
management. Although SLMP-II has only had “unqualified” audits to date, weaknesses noted at regional
and woreda levels include non-compliance with payment approval arrangements, use of manual
accounting systems, insufficient procurement specialists and inadequate procurement capacity building,
lack of internal audit oversight, and high turnover of project fiduciary staff. Mitigation measures to
address these concerns will include deployment of accountants and use of computerized accounting
systems at woreda level, engagement of procurement specialists and provision of procurement training
at regional level, regular risk-based audits at woreda level by federal and regional auditors, and the recent
increase and harmonization of salaries by MoFEC for project procurement and financial management
staff.

46. Stakeholder risk is rated Substantial because of: (i) potential for re-emergence of civil unrest, (ii)
weak multi-sectoral coordination, (iii) risk of potential elite capture of project benefits, and (iv) possible
inaccurate perceptions of association with either the Government’s Commune Development Program
(CDP), which resettles communities to crowd-in public services, or the Mass Mobilization Campaign,
neither of which the Bank finances. A technical visit carried out in 2016 to assess the findings of the
Alignment of Operations Screening Checklist21 submitted by the Federal PCU found that some SLMP-II
sites overlapped spatially, but not temporally, with the CDP sites. In addition to the Grievance Redress
Mechanism (GRM – see below), to mitigate these risks the project will implement communication
measures to inform local communities, strengthen participatory development, and enhance
transparency. To mitigate risks related to the CDP, woreda staff will be trained in the application of the
Alignment of Operations Screening checklist, which requires screening for interface with the CDP if it is
implemented in RLPL watersheds. To mitigate risks related to the Mass Mobilization Campaign, spatial
separation will be pursued and documented.

47. Other risks. Drought presents a moderate risk to project implementation, as drought (and climate
change related impacts in general) affects or limits growth of tree and shrub seedlings planted, particularly
in moisture-deficit areas. As a result, project results related to afforestation and reforestation might not
be achieved. Similarly, due to unexpectedly high rainfall intensity some built structures such as terraces
may be destroyed, and crop land may be flooded. The mitigation measure is embedded in the technical
design of the project itself, which aims to reduce drought and climate change impacts, as SLMP-II has
demonstrated. Additional effort will be placed on enhancing the resilience of built green infrastructure
such as terraces by updating the specifications in the government’s program-wide manual, the
Community-Based Participatory Watershed Management Guidelines. While the Government of Norway
has provided a letter of commitment for the Trust Fund resources indicated above, there remains a low

21 It was agreed in 2015 with MoFEC that: (i) no WB funded projects will knowingly be implemented in the GoE’s CDP sites,
and (ii) that any geographic overlaps with Bank-financed operations will be subject to the Alignment of Operations (AOP)
checklist to screen for availability of basic services provided by the CDP. The objective of the AOP checklist is to help the WB
Task Teams proactively manage the operational interface between the GoE’s CDP and Bank-financed projects or sub-projects in,
or near the CDP sites. It will also enable Bank Task Teams to demonstrate that, they have taken all reasonable steps to avoid
getting involved with CDP sites particularly non-viable or seriously deficient CDP activities.

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risk that this co-financing may not be agreed, in which case it would be necessary to (i) reduce the number
of new watersheds selected for SLWM interventions from 17 to 14, and reduce the associated target
values to be achieved against PDO-level results indicators 1, 1a and 4 by 2 percent, 1 percent and 3 percent
respectively, and (ii) reduce the number of SLLCs and communal land certificates to be issued, as well as
the number of locations in which support is provided for land-use planning and the rollout of the NRLAIS,
although these changes would not affect the target values of the PDO-level results indicators.

VI. APPRAISAL SUMMARY

A. Economic and Financial (if applicable) Analysis

48. To assess the ex-ante efficiency of the project investment, a cost benefit model is used. Annual
cost and benefit flows are estimated as the difference between without-project and with-project net
benefits for direct beneficiaries (See Annex 4: Economic and Financial Analysis for more details). It is
expected that without the project, land use will continue on its current path. Continued soil erosion, water
insecurity, and land insecurity leads to land degradation with direct losses to those that rely on crop and
livestock production for their livelihood. Production yields will go down or farmers will have to increase
their input costs to maintain current yields. In the absence of storage facilities, farmers will continue to
experience post-harvest losses, and fail to capture higher crop prices that are obtainable a few months
after harvest and in larger markets. Non-agricultural land in the watershed will also continue to
deteriorate without the project due to soil erosion as well as overuse of common land through grazing
livestock and firewood collection. This will put a further strain on the population who derive their
livelihood from forests, woodlands, and surrounding areas. Downstream from the project area, continued
land degradation will also affect areas and households through increased flood risk and sedimentation of
irrigation and hydropower dams.

49. Incremental benefits are estimated for investments in green infrastructure and resilient
livelihoods (Component 1). It is assumed that these benefits will only accrue if the activities in the
remaining 3 components are also achieved. Project interventions are assumed to lead to direct net
benefits to crop and livestock producers as well as forests and other non-croplands through watershed
management plans. These activities will reduce soil erosion, improve productivity, reduce yield losses, and
increase resilience. The project will encourage new income-generating activities through community
groups and linkages to value chains. Project activities will also constitute a net carbon sink.

50. Total investment costs of US$129 million and a US$38 million estimate for beneficiary in-kind
contributions are included in the Economic and Financial Analysis (EFA).22 In the 25-year net benefit
analysis using a 5 percent discount rate, the project yields an Economic NPV of US$1,696 million (ETB 47.5
billion) and has a benefit cost ratio of 5.3. The Economic IRR is 60 percent. The payback period is 4.5 years.
When excluding the social value of carbon, the net economic project return is US$1,063 million (ETB 30
billion) with a benefit cost ratio of 3.7 and an EIRR of 34 percent and a payback period of 6.7 years. This is

22Beneficiary contribution includes US$25 million in-kind contribution to labor costs calculated as 50% on communal land and
80% on private land (equal to 34% of US$ 78 million in Component 1). An additional US$ 13.1 million on top of the US$15
million Component 4 budget is assumed as in-kind contribution from the GoE for staff and office costs of federal and regional
governments (the same proportion as assumed in the EFA for SLMP-II).

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1.5 percent of Ethiopia’s GDP (in 2016 terms). In financial terms the NPV is US$365 million (ETB 10.2
billion) with a Financial IRR of 33 percent, a benefit cost ratio of 2.5 and a payback period of 6.7 years.
This estimated net return constitutes 0.5 percent of Ethiopia’s GDP in 2016. In the financial analysis,
estimated farm-level gross margins can increase by over US$ 106/year/person, which is 1.2 times the Food
Poverty Line (US$ 85/person/year in 2018 terms), or 66% of the National Poverty Line (US$
162/person/year).

51. The rationale for public sector involvement in the SLM Program is based on the public goods
nature of the environmental benefits delivered through SLM activities, in the form of groundwater
recharge, reduced soil erosion on communal land, reduced sediment loads in surface water runoff,
reduced flood risk, and carbon sequestration. Nevertheless, as described above, the project will seek
opportunities to promote PES from private and public-sector organizations, where the concentration of
benefits derived by such entities makes this feasible. The World Bank brings significant value-added to the
SLM Program, based on the wealth of experience and expertise developed through support for SLMP-I
and II, as well as SLM initiatives in other countries (see Lessons Learned, above). Given the concessional
nature of the financing, the sustainable improvements to natural resource productivity expected as a
result of the project will contribute to long-term strengthening of the fiscal situation through economic
growth and associated increases in revenue.

52. The RLLP is expected to yield high returns even when considering key risk factors such as: yield
and price changes; adoption rates; and project delays. As part of a risk management plan, it is particularly
important to ensure that farmers achieve target yields, and can negotiate and obtain fair output prices.
The planned plot-level impact evaluation will measure yields achieved with project support, and the
planned support for linkages to value chains will seek to improve the prices received by farmers for their
production. Part of the risk management plan will also be to ensure that any storage facilities supported
by the project as part of linkages to value chains are used to their full capacity to ensure their financial
viability. Close project monitoring and support for target communities to implement MYDPs and WMUPs
will help ensure that SLM and productivity goals are achieved.

B. Technical

53. The technical design of the proposed RLLP is primarily based on the successful experience of
watershed management over the last decade under the GoE’s SLM Program. The design of the watershed
component draws on the experience and lessons learned from the SLMP-II project, including the CSA pilot
conducted in selected watersheds. Supported by detailed existing technical manuals, the proposed RLLP
applies a comprehensive intervention strategy, using the micro-watershed as the primary planning and
implementation unit, by promoting a set of technically proven demand-driven investments that not only
take into consideration environmental challenges and opportunities, but also phases-in a holistic
landscape approach, incorporating the productive and livelihood dimensions of the beneficiary
households. More specifically, once satisfactory levels of rehabilitation have been achieved through
biophysical measures in a micro-watershed, support to on-farm improved climate-smart crop and
livestock practices is phased-in, allowing households to adopt technologies that maximize the benefits of
environmental interventions and ultimately achieve a sustainable climate-smart landscape.

54. Support for livelihood diversification and connections to value chains under RLLP draws on lessons

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from experience under SLMP-II with Self-Help Groups, as well as experience under the Bank-supported
AGP-II with CIGs. Where relevant, RLLP will seek to connect beneficiary communities to value chain
investments made under AGP-II and other agri-business initiatives. The design of land certification and
administration activities to be implemented under RLLP is based on a number of successful projects in
Ethiopia, including support provided under SLMP-II, as well as the Government’s own land certification
initiatives.

55. The project addresses the overall technical and institutional requirements for the effective
provision of support services to watershed-level interventions, by providing adequate financing for
training, technical assistance and capacity building at the local level, closely coordinated with the provision
of technical assistance under GIZ SURED, as well as supporting a comprehensive set of knowledge
management and dissemination initiatives.

C. Financial Management

56. The Financial Management (FM) arrangements for the RLLP will be based on the existing FM
systems and structures established under SLMP-II. The Federal PCU based at the MoALR will retain the
overall fiduciary responsibility for the implementation of the project, Regional PCUs in the six Regional
BoA’s and the administrations of all the implementing woredas. Project annual budgets will be prepared
based on consolidated annual work plans initiated at the woreda and regional levels and compiled at the
federal level. See Annex 2 for further details on implementation arrangements.

57. In the Federal PCU, the six regions and all woredas, the project will maintain segregated local
currency bank accounts where project funds will be deposited and from which payments will be made.
Proceeds of the IDA Credit and MDTF will initially flow into the DA before further disbursement into each
of the local currency project accounts based on the approved annual work plan and budget. In addition
to receiving advances through the DA, the project may use other disbursement methods such as
reimbursements, direct payment and special commitment. To enhance the level of disbursements under
the new project, the team will ensure prompt submission of quarterly IFRs immediately after the end of
each quarter.

58. A FM assessment of the implementing entities, including sampled woredas, has been conducted
by the Bank. The outcome of the assessment was that the FM arrangements maintained by the
implementing entities are adequate to provide reasonable assurance over the use of project resources.
The FM assessment however, noted some weaknesses including gaps in accounting capacity at the federal
and woreda levels mainly due to high turnover of project accountants and weak internal audit oversight
at the regional and woreda levels. In addition, there is a need to strengthen controls over community-
level labor payments and accountability of advances issued to regions and woredas. As a result, the FM
risk rating for the implementation of the RLLP is considered Substantial and specific mitigation measures
have been outlined in Annex 2.

D. Procurement

59. Procurement under the project will be carried out in accordance with the World Bank’s
Procurement Regulations for IPF Borrowers - ‘Procurement in Investment Project Financing, Goods,

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Works, Non-Consulting, and Consulting Services’, dated July 2016, revised November 2017 and
‘Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and
IDA Credits and Grants’, revised as of July 1, 2016, and the provisions stipulated in the Legal Agreement.
A Project Procurement Strategy Document (PPSD) has been prepared by the MoALR, which includes a
Procurement Plan for the first 18 months of the project life. The PPSD found that the Federal and Regional
PCUs have acceptable experience in implementing activities financed by the World Bank, but recommends
that the World Bank team conduct training to address lack of familiarity with the new Procurement
Framework, and that staffing for procurement in the Federal PCU be reinforced to enhance supervision
of Regional PCUs. The PPSD notes that project implementation will be highly decentralized, and
recommends that procurement of locally available small goods, supplies and services follow Community-
Driven Development (CDD) procedures to be detailed in the PIM, to be finalized within one month of
project effectiveness. Given the small size of works contracts to be procured in many dispersed locations,
the PPSD recommends that open national competition be preferred for works procurement, as
international firms are not expected to participate. The market survey for seed production and supply
found that seedlings are rarely produced by the private sector on a commercial scale. Consequently,
where competition is not practically possible, the PPSD recommends that force account and direct
contracting be applied for supply from government-owned regional Seedling Development Centers and
Scientific Research Centers, as well as from small-scale privately-owned nurseries for specialized seed
production. The PPSD also determined that participation of government-organized MSEs should not
exclude the participation of private non-MSE actors.

60. A procurement capacity assessment revealed that the MoALR and other implementing agencies
have adequate experience in implementing procurement activities of Bank financed projects.
Nevertheless, a number of shortcomings were observed, including: (i) the number, qualification and
experience of procurement and contract management staff was not considered adequate; (ii) high staff
turnover due to low payment; (iii) non-compliance to agreed procurement procedures in the previous
SLMP-I and II projects; (iv) lack of an independent internal and external procurement audit system; (v) risk
of fraud and corruption; (vi) lack of office supplies/equipment, such as computers, office furniture and
internet facilities, procurement data management system and procurement record facilities; and (vii)
reservation and preferential schemes for MSEs established by public bodies, which reduce the
participation of other private firms. Based on the current risk assessment, the procurement risk rating is
high.

61. The mitigation measures to be taken to address the shortcomings/risks of the procurement
system of the project include: (i) hiring procurement and contract management specialists with the
required qualification and experience at all levels; (ii) including clear guidance on procurement procedures
in the PIM, to be finalized within one month of project effectiveness, and providing intensive procurement
and contract management training; (iii) hiring procurement and contract management specialists
following World Bank (WB) Individual Consultant Selection procedures based on market rates; (iv) Bidding
Documents will include actions to be taken on fraud and corruption; (v) the Bank will conduct Post
Procurement Reviews (PPRs) by itself and/or using the Auditor Generals, or the Borrower will engage an
Independent Procurement Auditor; (vi) adequate office equipment and supplies, such as computers,
office furniture and internet facilities, and procurement data management and record facilities will be
provided to procurement and contract management specialists; and, (vii) enterprises other than MSEs
established by public bodies will not be excluded from participation on tenders of the project. Details on

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the shortcomings/risks identified and recommended mitigation measures are provided in Annex 2.

62. Procurement of RLLP will be carried out in a decentralized manner in 152 major watersheds
located in six regional states of Ethiopia, and will involve local community participation in procurement as
appropriate. The Federal and Regional Project Coordination Units established by MoALR and BoANRs
respectively coordinate the procurement activities at the federal, regional and woreda levels. Each
implementing agency shall be responsible for conducting its own procurement based on approved
consolidated procurement plans and budget cash-flow, and procurement activities will be implemented
within the existing procurement structures. Considering the capacity limitations of the implementing
agencies, the PCUs to be established at federal and regional levels by MoALR and BoANRs will include
procurement and contract management specialists who will assist the respective procurement units.

E. Social (including Safeguards)

63. The project is expected to fund community level infrastructure and income generating activities
in the wider context of integrated watershed and landscape management, resulting in reduced land
degradation at the community level. The preparation and implementation of MYDPs involves community
mobilization and communication to sensitize the beneficiary communities on how they will work together
with technical specialists to reduce surface water runoff from the upper watershed, and how they can
organize into user groups, to manage the watershed, monitor the treated communal land and gullies, and
the subsequent transition to resilient landscapes. The experience of SLMP-II has shown that livelihood
improvement activities are critical to SLM. Design of the RLLP incorporates this lesson, and the project will
assist participating communities in developing IGAs in an inclusive manner. A Social Assessment (SA) was
prepared to help the project respond to social development concerns, particularly in targeting benefits
for poor and underserved people while minimizing or mitigating risk and adverse impacts.

64. RLLP triggers OP 4.10 Indigenous People.23 It was determined that the physical and sociocultural
characteristics of the proposed intervention areas and the people living in these sites meet the policy
requirements. The decision to trigger the policy is also based on the Ethiopian Constitution, which
recognizes the presence of different socio-cultural groups, including historically disadvantaged or
underserved peoples, as well as their rights to their identity, culture, language, customary livelihoods,
socio-economic equity, etc. The social safeguard issues relating to the policy are assessed through an SA
and extensive consultation with potential project beneficiaries, including those identified as vulnerable
groups and underserved peoples. The consultation enabled communities to voice their views, concerns,
and a range of recommendations resulting from the SLMP-II implementation experience, which have been
incorporated into the project design. A detailed matrix outlining the GRM, benefit sharing approach,
monitoring and evaluation, potential social risks and mitigation actions is included in the SA, which has
been disclosed in-country and on the Bank’s external website, and is summarized in Annex 5 as the Social

23 OP/BP 4.10 is the World Bank’s Operational Policy on Indigenous Peoples which is ‘Underserved Peoples’ in the Ethiopia
context. In Ethiopia a SDP is the operational equivalent of the Indigenous Peoples Plan, the elements of which are included in
Annex 5, and which includes a standard vulnerability analysis of groups meeting OP/BP 4.10 criteria. This vulnerability
assessment is integrated into the SA, which includes measures for providing culturally appropriate economic and social benefits
for vulnerable groups and, where there are potential adverse impacts on these groups, measures to avoid, minimize, mitigate, or
compensate for these impacts, as well as the process to be used in fostering free, prior, and informed consultations for their broad
support for the program.

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Development Plan (SDP)24.

65. The budget for the implementation of the SDP activities is embedded in Component 4, to
inclusively target underserved peoples and vulnerable groups, and the operational modalities will be
included in the PIM, to be finalized within one month of project effectiveness. For risk mitigation measures
identified in the SDP and not covered in the various Project components, an indicative budget is tagged.
The Project’s social development (social safeguards and gender) staff will participate in budget
preparation and decision-making processes to support the other team members in aligning SDP measures
and targets with overall Project progress on a regular basis.

66. OP 4.12 Involuntary Resettlement is triggered. The Project deals with rehabilitation, civil works,
treatment of gully sites and community infrastructure, and although the scope of land take would be
small, OP4.12 is triggered recognizing that Components 1 and 3 may induce land acquisition, or affect
access to and use of natural resources. The Resettlement Policy Framework (RPF) has been consulted
upon, and disclosed in-country and on the Bank’s external website, to address any issues which might
arise from physical or economic displacement, or restriction of access to natural resources. The RPF will
ensure that prior to implementation of any activities, Project-Affected People (PAP) are consulted, and
appropriate mitigation measures are considered. If needed, a site- specific Resettlement Action Plan (RAP)
commensurate to the scope of impact will be prepared.

67. Gender Analysis, Action Plan and Monitoring: A Gender Approach and Action Plan is included in
Annex 6, to address the gender aspects of land degradation and natural resource use. This draws on an
assessment of the SLMP-II gender mainstreaming strategy, and targets the following outputs: (i) equitable
participation of both men and women in SLM, CSA, IGA and value chain activities, with an emphasis on
gender-sensitive technologies that save women labor and time, and protect their health, such as improved
cookstoves; (ii) greater capacity of implementing institutions to mainstream gender issues; (iii) improved
entitlement of women to land and enforcement of these rights; and, (iv) enhanced monitoring, evaluation
and reporting of gender outcomes.

68. Grievance Redress Mechanism (GRM): Communities and individuals in RLLP operation sites who
believe that they are adversely affected by the project may submit complaints to the project-level GRM
already established in SLMP-II sites and that will be put in place in the new woredas during preparation of
MYDPs, or the Bank’s GRS. Areas for improvement of the SLMP-II GRM include scaling-up of best practices
for documentation and reporting. Complaints from affected people in SLMP-II included targeting for SLM
works and IGAs, and requests for information on the overall operation. Design of the RLLP has built on
this experience and the general Ethiopian grievance redress systems as part of a robust risk mitigation
measures and uses local institutions as relevant. A Procedural Manual for Regional Public Grievance
Redress Offices25 was developed detailing the procedures, roles and responsibilities to resolve

24 The SDP for the RLLP was prepared based on the SA and the related in-depth consultations with the affected underserved
peoples and vulnerable groups to seek their support for the project. The SDP sets out measures to ensure that: (a) underserved
and vulnerable groups affected by the project receive culturally appropriate social and economic benefits; and, (b) any
potential adverse effects are avoided, minimized, mitigated, and/or compensated.
25
The MoFEC in collaboration with Ethiopian Institution of the Ombudsman through the support of the WB supported
Promoting Basic Services Phase- III prepared the procedure manual. Since January 2017, the manual is being rolled out to
woredas.

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beneficiaries’ complaints. Grievance committees at various levels of the project will ensure complaints
received are promptly reviewed to address project-related concerns, including logging, tracking and
documenting.

69. Citizen Engagement, Consultation and Participation: RLLP will rely on a participatory approach
anchored on the MoALR’s Community-based Participatory Watershed Development Guideline (CBPWDG).
As part of the safeguards instruments preparation, RLLP conducted stakeholder consultations at sites
selected to fairly represent views including fair representation of ethnic minorities, vulnerable groups and
underserved peoples. During project mobilization stakeholders will become conversant with safeguards
principles and the rationale for participatory approaches.

70. Labor and Working Conditions: although the civil works under RLLP are small in scale, to minimize
the impact of the influx of external labor on the community, such as (a) unfair wages paid by contractors,
(b) increased living costs and food prices in local markets, (c) risk of cultural misunderstanding or
exploitation, and (d) risk of sexual exploitation due to workers’ relations with local women or girls, the
project will draw on the analytical work and proposed action plan which define the RLLP’s approach on
gender, which is based on an exploration of values and norms, and the legal, social and economic context.
The RLLP will ensure adequate risk mitigation measures based on the scope of the civil works to be
supported, through; (a) ensuring equitable project benefits for women and girls; (b) promoting
prevention, mitigation and referral services to address risks of sexual exploitation and abuse; (c)
promotion of fair treatment, non-discrimination and equal pay for equal work for all workers; and (d)
having a code of conduct on relationships with the local community incorporated into bidding documents,
including labor management procedures to prevent and address sexual harassment, unwanted
pregnancies, and intimidation or exploitation of members of the local community.

71. Safeguards Management Approach and Capacity: Design of the RLLP draws on lessons learnt
through implementation of the SLM Program, including the Bank-financed SLMP-I and SLMP-II. SLMP-II
safeguards implementation was consistently rated moderately satisfactory and to date has not
encountered any serious problems. Project entities and their staff at all levels are generally trained and
ready to implement in the existing 135 SLMP-II woredas. The new woredas will require a start-up period
of capacity building to implement safeguards. The project at the federal and six regional levels will have
an Environmental officer and Social Development & Safeguards officer who will oversee preparation of
the required site-specific safeguards instruments, monitor safeguards due diligence and provide quarterly
reports during implementation. The Bank will provide the required support for the designated counterpart
staff during project implementation.

F. Environment (including Safeguards)

72. The project is assigned Environmental Category B and has triggered the following safeguard
polices: Environmental Assessment (OP 4.01), Pest Management (OP 4.09), Natural Habitats (OP 4.04),
Forests (OP 4.36), Involuntary Resettlement (OP 4.12), Indigenous Peoples (OP 4.10), and Safety of Dams
(OP 4.37). The environmental issues of the project are primarily associated with the activities of
Component 1. The overall environmental impact of the project is positive, especially given that activities
play a pivotal role in rehabilitating degraded landscapes and conservation of valuable ecosystems through
afforestation/reforestation, and biological and physical soil and water conservation on agricultural lands

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and other ecologically critical ecosystems. To maximize positive impacts, the project will use the CBPWDG
developed and currently being updated by MoALR, in planning and implementation of watershed
management. The project will also play a positive role by building climate resilience through CSA practices
and livelihood diversification activities.

73. Limited negative impacts may arise as a result of infrastructure work to be financed, such as
construction of water-harvesting structures. The Environmental and Social Management Framework
(ESMF) will be used to develop detailed site-specific Environmental Management Plans (EMPs) that will
be consulted upon and disclosed prior to the commencement of civil works, and negative impacts will be
avoided or mitigated through the implementation of the mitigation measures developed in the EMPs. The
ESMF also includes measures for addressing broader environmental and social impacts, including on
natural habitats and forests, and an Integrated Pest Management Plan. On Dam Safety, it refers to the
FAO Manual on "Small Earth Dams: A guide to siting, design and construction" as well as the MoALR’s
guidelines on the construction of small dams. The effective use of the ESMF will be regularly reviewed as
part of the project’s M&E system. The ESMF has been disclosed in-country and on the Bank’s external
website prior to appraisal in accordance with Bank requirements.

H. World Bank Grievance Redress

74. Communities and individuals who believe that they are adversely affected by a World Bank (WB)
supported project may submit complaints to existing project-level grievance redress mechanisms or the
WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed
in order to address project-related concerns. Project affected communities and individuals may submit
their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or
could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be
submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank
Management has been given an opportunity to respond. For information on how to submit complaints
to the World Bank’s corporate Grievance Redress Service (GRS), please visit
http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service.
For information on how to submit complaints to the World Bank Inspection Panel, please visit
www.inspectionpanel.org
.

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VII. RESULTS FRAMEWORK AND MONITORING

Results Framework

Project Development Objective(s)

To improve climate resilience, land productivity and carbon storage, and increase access to diversified livelihood activities in selected rural watersheds.
RESULT_FRAME_T BL_ PD O

Unit of
PDO Indicators by Objectives / Outcomes DLI CRI Baseline End Target
Measure

Improve climate resilience and land productivity

Hectare(Ha
Land area under sustainable landscape management practices Yes 406,000.00 1,378,000.00
)

Hectare(Ha
Land area restored or reforested/afforested Yes 108,000.00 136,000.00
)

Hectare(Ha
Land area with productivity enhancing practices applied Yes 6,000.00 80,000.00
)

Project area showing an increase in NDVI correcting for climate

Percentage 0.00 50.00
effects

Project area showing an increase in LSWI correcting for climate

Percentage 0.00 50.00
effects

Improve carbon storage

Net greenhouse gas emissions Yes Tones/year 0.00 -680,000.00

Increase access to diversified livelihood activities

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RESULT_FRAME_T BL_ PD O

Unit of
PDO Indicators by Objectives / Outcomes DLI CRI Baseline End Target
Measure

Households adopting diversified livelihood activities supported by

Number 0.00 192,000.00
the project

Female-headed households participating in diversified livelihood

Number 0.00 33,600.00
activities supported by the project

RESULT_FRAME_T BL_ IO

Unit of
Intermediate Results Indicators by Components DLI CRI Baseline End Target
Measure

Component 1: Green Infrastructure and Resilient Livelihoods

IR 1. Share of target beneficiaries with rating ‘Satisfied’ or above on

project interventions (aspects: livelihoods, environmental benefits, Percentage 0.00 65.00
others)

IR 1a. Share of target women beneficiaries with rating ‘Satisfied’ or

Percentage 0.00 65.00
above on project interventions

IR 2. Targeted major watersheds with Multi-Year Plan Development

Number 0.00 107.00
Plan 100% implemented

IR 2a. Targeted major watersheds with Multi-Year Development

Number 90.00 107.00
Plan approved

Hectare(Ha
IR 3. Area enclosure as a result of the project 0.00 36,000.00
)

IR 4. Land users adopting sustainable land management practices as

Number 0.00 460,000.00
a result of the project

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IR 4a. Women land users adopting sustainable land management

Number 0.00 250,000.00
practices as a result of the project

IR 4b. Female headed households adopting sustainable land

Number 0.00 43,000.00
management practices as a result of the project

IR 5. Functional Common-Interest Groups (CIGs) established or

Number 0.00 2,000.00
supported.

IR 6. People participating in income-generating activities supported

Number 0.00 345,000.00
by the project

IR 6a. Women participating in income generating activities

Number 0.00 190,000.00
supported by the project

Component 2: Investing in Institutions and Information for Resilience

IR 7. Watershed User Associations (WUAs) established and

Number 0.00 130.00
strengthened

IR 7a. WUA's with Watershed Management and Use Plan Number 0.00 90.00

IR 8. Woreda information centers being effectively used by project

Number 0.00 107.00
stakeholders

Component 3: Rural Land Administration and Use

IR 9. Parcels of land surveyed and mapped for certification Number 1,776,000.00 4,776,000.00

IR 10. Second level land certificates issued as a result of the project Number 0.00 2,500,000.00

IR 11. Households who have received second level land holding

Number 438,000.00 1,038,000.00
certificates

IR 11a. Women who have received second level land holding

Number 300,000.00 750,000.00
certificates individually or jointly with a man

IR 12. Landless youth who are members of groups who have been
Number 14,000.00 34,000.00
issued a second level certificate or other legal documentation to use

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communal land holdings in exchange for restoring land

IR 12a. Women Landless youth who are members of groups who

have been issued a second level certificate or other legal
Number 4,200.00 10,200.00
documentation to use communal land holdings in exchange for
restoring land

IR 13. Woredas with functioning land administration information

Number 0.00 112.00
systems

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Monitoring & Evaluation Plan: PDO Indicators

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Indicator Name Land area under sustainable landscape management practices

The indicator measures, in hectares, the land area for which new and/or improved sustainable landscape
management practices have been introduced. Land is the terrestrial biologically productive system
comprising soil, vegetation, and the associated ecological and hydrological processes; Adoption refers to
change of practice or change in the use of a technology promoted or introduced by the project;
Definition/Description
Sustainable landscape management (SLM) practices refers to a combination of at least two technologies
and approaches to increase land quality and restore degraded lands for example, agronomic, vegetative,
structural, and management measures that, applied as a combination, increase the connectivity between
protected areas, forest land, rangeland, and agriculture land.
Annual
Frequency

Collected by DA's and other local agents as appropriate. After reviewing by Woreda agent, data is
Data Source processed by the PSU for reporting.

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The appropriate package of land management activities restores degraded lands and promotes improved
management that not only increases productivity but also enhances resilience by building absorptive and
adaptive capacity that limits the adverse effects of climate change. Sustainable landscape management
(SLM) practices refers to a combination of technologies and approaches to increase land quality and
restore degraded land including catchment management which encompasses a set of different
dependent measures in a certain area, with overall planning and management.

Characterizing catchment area in terms of watershed basin, this indicator counts as treated the total
Methodology for Data Collection
area of a micro watershed once all the prescribed soil and water conservation measures identified in the
relevant Multi-Year Development Plan (MYDP) have been fully implemented. MYDPs are developed in
accordance with the Community-Based Participatory Watershed Development Guidelines (CBPWDGs)
and consist of a range of land management technologies and approaches designed to restore degraded
lands and promote improved management, that not only support increased productivity but also
enhance resilience by building absorptive and adaptive capacity that limit the adverse effects of climate
change

Federal PCU
Responsibility for Data Collection

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Indicator Name Land area restored or reforested/afforested

The indicator measures, in hectares, the land area for which new and/or improved sustainable landscape
management practices have been introduced. Land is the terrestrial biologically productive system
comprising soil, vegetation, and the associated ecological and hydrological processes; Adoption refers to
change of practice or change in the use of a technology promoted or introduced by the project;
Definition/Description
Sustainable landscape management (SLM) practices refers to a combination of at least two technologies
and approaches to increase land quality and restore degraded lands for example, agronomic, vegetative,
structural, and management measures that, applied as a combination, increase the connectivity between
protected areas, forest land, rangeland, and agriculture land.
Annual
Frequency

Collected by DA's and other local agents as appropriate. After reviewing by Woreda agent, data is
Data Source processed by the PSU for reporting.

Methodology for Data Collection

Federal PSU
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name Land area with productivity enhancing practices applied

The indicator measures, in hectares, the land area for which new and/or improved sustainable landscape
management practices have been introduced. Land is the terrestrial biologically productive system
comprising soil, vegetation, and the associated ecological and hydrological processes; Adoption refers to
change of practice or change in the use of a technology promoted or introduced by the project;
Definition/Description
Sustainable landscape management (SLM) practices refers to a combination of at least two technologies
and approaches to increase land quality and restore degraded lands for example, agronomic, vegetative,
structural, and management measures that, applied as a combination, increase the connectivity between
protected areas, forest land, rangeland, and agriculture land.
Annual
Frequency

Collected by DA's and other local agents as appropriate. After reviewing by Woreda agent, data is
Data Source processed by the PSU for reporting.

While this indicator measures land area with productivity enhancing practices applied, the effect of these
Methodology for Data Collection practices on productivity will be measured and reported separately through an impact evaluation.

Federal PCU
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name Project area showing an increase in NDVI correcting for climate effects
The Normalized Difference Vegetation Index (NDVI) measures photosynthetic activity and vegetation
cover. Changes in vegetation cover and intensity correlates with improvement in land productivity,
increased carbon storage, and greater resilience to climate change due to improved absorptive and
adaptive capacity (as per the PDO). Utilizing visible-red and near-infrared spectral bands, NDVI is one
measure for detecting vegetation cover and can be used to track changes in vegetation over time. This
indicator is meant to add value when used in combination with other indicators, and provides a
benchmark for physical achievement under the operation and can be computed using remote-sensed
satellite imagery data.

Progress under this indicator is tracked by computing, at the pixel-level (using a spatial resolution of
30mx30m), the change in annual average NDVI from baseline over the project period, selecting pixels
showing an improvement over the baseline after adjusting for climate effects. NDVI values are computed
using medium resolution imagery (i.e. LandSat 8 or Sentinel-2) and incorporating a masking routine to
Definition/Description exclude pixels that can result in unreliable estimates (i.e. containing clouds, shadows, water cover, etc.).
The share of the project area showing an improvement in NDVI is evaluated after an appropriate lag (i.e.
1 or 2 years) on areas where interventions have taken place (PDO 1). Information on spatial location and
timing of interventions in each of the project watersheds is required for tracking this intervention.

Assessing performance under this indicator measures change from the baseline and compares this
against any change that would have occurred without the intervention (i.e. the counterfactual). Given
the lack of satisfaction with how remote-sensing based indicators have performed in the past, largely as
a result of failing to control for climate effects, the methodology establishing the 'counterfactual' for
comparison will incorporate best practices and state of the art methods and data for modeling index
values based on remote-sensed data. To best use improvements in methods or data, the underlying
methods and benchmark statistical model may be updated during the course of the project as
appropriate.

Baseline, Mid-term, Endline

Frequency

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Remote-sensed satellite imagery. Uses historical data to develop a model that is used to control for
Data Source climate effects

Remotely-sensed information will be used to measure change in NDVI in project areas over the project
Methodology for Data Collection period, correcting for climate effects.

PCU with support from external GIS and remote-sensing expert

Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name Project area showing an increase in LSWI correcting for climate effects
The Land Surface Water Index (LSWI) measures moisture content in soil and vegetation. Improved land
management practices lead to better water retention, less runoff during heaving rains and improves
moisture availability during dry seasons, thereby supporting more vigorous and enduring plant growth
during periods of little or no rain. Soil and vegetation moisture content correlates with improvement in
land productivity, increased carbon storage, and greater resilience to climate change due to improved
absorptive and adaptive capacity (as per the PDO). The LSWI is the normalized difference between the
near-infrared and short-wave infrared spectral bands and ranges from -1 to 1. This indicator usefully
complements NDVI and is meant to add value when used in combination with other indicators. It
provides a benchmark for physical achievement under the operation and can be computed using remote-
sensed satellite imagery data.

Progress under this indicator is tracked by computing, at the pixel-level (using a spatial resolution of
30mx30m), the change in annual average LWSI from baseline, selecting pixels showing an improvement
against the baseline over the project period after adjusting for climate effects. LWSI values are computed
Definition/Description using medium resolution imagery (i.e. LandSat 8 or Sentinel-2) and incorporating a masking routine to
exclude pixels that can result in unreliable estimates (i.e. containing clouds, shadows, water cover, etc.).
The share of the project area showing an improvement in LWSI is evaluated after an appropriate lag (i.e.
1 or 2 years) on areas where interventions have taken place (PDO 1). Information on spatial location and
timing of interventions in each of the project watersheds is required for tracking this intervention.

Assessing performance under this indicator measures change from the baseline and compares this
against any change that would have occurred without the intervention (i.e. the counterfactual). Given
the lack of satisfaction with how remote-sensing based indicators have performed in the past, largely as
a result of failing to control for climate effects, the methodology establishing the 'counterfactual' for
comparison will incorporate best practices and state of the art methods and data for modeling index
values based on remote-sensed data. To best use improvements in methods or data, the underlying
methods and benchmark statistical model may be updated during the course of the project as
appropriate.

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Baseline, Mid-term, Endline

Frequency

Remote-sensed satellite imagery. Uses historical data to develop a model that is used to control for
Data Source climate effects

Remotely-sensed information will be used to measure change in LSWI in project areas over the project
Methodology for Data Collection period, correcting for climate effects.

PCU with support from external GIS and remote-sensing expert

Responsibility for Data Collection

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name Net greenhouse gas emissions

Definition/Description
Annual
Frequency

Ex-Act tool with intervention activity data entered for each micro watershed and processed by the PSU
Data Source for reporting.

Measures net change in CO2 emissions as a result of the project’s wide range of on-ground land
management and use interventions. Changes in the amount of carbon present in soil, crop, rangeland
and forest/trees or mixed or mosaic systems can indicate overall changes in system productivity or
degradation, and the extent to which the natural resource is being managed sustainably and can recover
to shocks such as drought. The method used is the ExAct carbon balance estimation tool, which
calculates carbon accumulation and emissions based on project biophysical output data. Net greenhouse
gas (GHG) emissions are calculated as an annual average of the difference between project gross
Methodology for Data Collection
(absolute) emissions aggregated over the economic lifetime of the project and the emissions of a
baseline (counterfactual) scenario aggregated over the same time horizon. The indicator value is
negative if the project is reducing emissions, and positive if the project is increasing emissions. The
economic lifetime of the project is assumed to be 25 years (5 implementation and 20 post-project years,
the same time horizon used in the Economic and Financial Analysis) during which a total of 17M tons
CO2eq are projected to be offset.

Federal PCU
Responsibility for Data Collection

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name Households adopting diversified livelihood activities supported by the project
This variable captures household's reduced vulnerability to climate change through the adoption of non-
traditional activities. By diversifying their livelihood portfolios, households are being proactive in
adapting and transforming their livelihoods to limit exposure to future shocks due to climate change and
extreme weather events. This indicator is measured as the percent of households engaging in approved,
non-traditional activities, relative to the total number of households in the project area. The definition of
Definition/Description what constitutes the set of potential non-traditional activities is set out in the Project Implementation
Manual (PIM) and applies to activities that are expected to reduce households' vulnerability to future
shocks associated with extreme weather events and climate change by diversifying livelihood activities
and increasing the resilience of natural (i.e. land) resources. The total population in the project area is
approximately 3million, and assuming 5 individuals per household, approximately 640,000 households.
The target value reflects a household adoption rate of 30 percent.
Baseline, Mid-term, Endline
Frequency

Based on information collected as part of stakeholder/ beneficiary survey.

Data Source

Methodology for Data Collection

Federal PCU
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name Female-headed households participating in diversified livelihood activities supported by the project
Female-headed households represent approximately 15 percent of all households and assumes roughly
Definition/Description
35 percent adoption.
Baseline, Mid-term, Endline
Frequency

Based on information collected as part of stakeholder/ beneficiary survey.

Data Source

Methodology for Data Collection

Federal PCU
Responsibility for Data Collection

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Monitoring & Evaluation Plan: Intermediate Results Indicators

IR 1. Share of target beneficiaries with rating ‘Satisfied’ or above on project interventions (aspects:
Indicator Name
livelihoods, environmental benefits, others)
Captures engagement with stakeholders and extent to which project is meeting stakeholder demand.
This is based on a survey administered to households in the project watersheds. The survey instrument is
comprised of small number of questions (approx. 15-25), which will measure the extent to which the
project reflected expectations and preferences of beneficiaries in the project watersheds.

Survey techniques will be used to document male and female beneficiary priorities at project outset.
Surveys during and at the close of the project may identify respondents’ satisfaction with project
Definition/Description
investments, including a specific question about the degree to which respondents felt project activities
reflected their preferences (ex post). The survey will include the following question: “How satisfied are
you that the project activities associated with RLLP are useful to you? [scale 1-5 representing very
unsatisfied to very satisfied, with a score of “3” representing neither satisfied nor dissatisfied.]”. The
indicator will record the percentage of men and women reporting scores of 4 or 5 in response to this
question.

Baseline, Mid-term, Endline

Frequency

Based on information collected as part of stakeholder/ beneficiary survey.

Data Source

Methodology for Data Collection

Federal PCU responsible for contracting third party or arranging data collection.
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 1a. Share of target women beneficiaries with rating ‘Satisfied’ or above on project interventions
Definition/Description Same as parent indicator.
Same as parent indicator.
Frequency

Same as parent indicator.

Data Source

Methodology for Data Collection

Same as parent indicator.
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 2. Targeted major watersheds with Multi-Year Plan Development Plan 100% implemented
The Multi-Year Development Plan (MYDP) defines the SLM activities that will be undertaken by the
Project to treat each target watershed. At the start of RLLP, 90 MYDPs have been approved for the SLMP-
II watersheds, and all are more than halfway completed. By the end of Project, it is expected that MYDPs
will have been approved and completed for all SLMP-2 watersheds, plus 17 new RLLP watersheds.

This indicator measures the number of watersheds in the project area for which an MYDP has been
approved by the Woreda or regional SLMP coordination platform and fully implemented. In a given
major watershed, the MYDP is a collection of multi-year plans for each micro-watershed targeted by the
Definition/Description project. The MYDP includes baseline data, basemaps, and detailed information on the activities and
interventions prescribed to stabilize each of the targeted micro-watersheds (with timelines and budgets).

Each activity within a MYDP is assigned an associated activity area. Percent completion of each MYDP is
measured as the sum of the activity areas of completed activities, relative to the total activity area of all
the activities included in the MYDP. Note that the sum of the activity areas included in a MYDP is less
than the total area of the micro watersheds that will be considered treated when the MYDP is
completed.

Annual
Frequency

Reported by woreda and captured as part of the regular M&E reporting.

Data Source

Methodology for Data Collection

Federal PCU
Responsibility for Data Collection

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 2a. Targeted major watersheds with Multi-Year Development Plan approved
The Multi-Year Development Plan (MYDP) defines the SLM activities that will be undertaken by the
Project to treat each target watershed. At the start of RLLP, 90 MYDPs have been approved for the SLMP-
Definition/Description
II watersheds. By the end of Project, it is expected that MYDPs will have been approved for an additional
17 new RLLP watersheds.
Annual
Frequency

Reported by woreda and captured as part of the regular M&E reporting.

Data Source

Methodology for Data Collection

Federal PCU
Responsibility for Data Collection

Indicator Name IR 3. Area enclosure as a result of the project

This indicator tracks areas where grazing is restricted. Limiting or completely restricting livestock in these
areas improves resilience by increasing absorptive and adaptive capacity of the lands treated and, when
Definition/Description
complemented with other improved management practices like cut-and-carry, increases productivity
and potential for generating additional income.
Annual
Frequency

Collected by DA's and other local agents as appropriate. After reviewing by Woreda agent, data is
Data Source processed by PSU for reporting.

Methodology for Data Collection

Federal PCU
Responsibility for Data Collection

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 4. Land users adopting sustainable land management practices as a result of the project
This indicator measures the number of users adopting sustainable land management practices in the
project areas. Access to and adoption of climate smart agricultural practices improves resilience to
climate change by increasing absorptive capacity, as well transformative capacity when these new
practices result in a fundamental change in how land resources are used and managed. Adoption refers
to change of practice or change in the use of a technology promoted or introduced by the project.
Admissible land management and improved technologies refers to a range of locally appropriate physical
activities such as soil and water conservation (SWC), agroforestry, and climate-smart agriculture (CSA)
that are supported by RLLP via extension support or financing. These packages are listed in the
Community-based Participatory Watershed Management Guidelines, CSA Field Manual, Project
Definition/Description Implementation Manual, and other project documentation. Access to and adoption of climate-adapted
agricultural practices/technologies improves resilience to climate change. Land users are based on the
number of adult individuals within the household who are considered to be land users. In married/joint
households where both the wife and husband are engaged in livelihood activities using land, both
individuals can contribute to the total number of users. Users of both individually and communally held
land are permissible.

This indicator is tracked as part of the stakeholder/beneficiary survey.

Baseline, Mid-term, Endline

Frequency

Based on information collected as part of stakeholder/beneficiary survey.

Data Source

Methodology for Data Collection

Federal PCU
Responsibility for Data Collection

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 4a. Women land users adopting sustainable land management practices as a result of the project
Definition/Description Same as parent indicator.
Same as parent indicator.
Frequency

Same as parent indicator.

Data Source

Methodology for Data Collection

Same as parent indicator.
Responsibility for Data Collection

IR 4b. Female headed households adopting sustainable land management practices as a result of the
Indicator Name
project
Definition/Description Same as parent indicator.
Same as parent indicator.
Frequency

Same as parent indicator.

Data Source

Methodology for Data Collection

Same as parent indicator.
Responsibility for Data Collection

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 5. Functional Common-Interest Groups (CIGs) established or supported.

This indicator tracks the number of Common-Interest Groups (CIGs) established or supported under RLLP
that are active in watershed management and/or income generating activities. Through these groups
communities’ management of watershed resources are improved, and opportunities for new, non-
traditional activities are promoted. Improved community ownership and management of land resources
Definition/Description combined with broader livelihood alternatives increases resilience by developing adaptive and
transformative capacity. Groups covered under this indicator include, but are not limited to, CIGs for
such activities as poultry promotion, sheep and goat fattening, and apiculture promotion. “Established”
refers to a documented list of individuals and positions, and by-laws. “Functional” refers to the level of
activity as evidenced by minutes and other documentation.
Annual
Frequency

Collected by DA's and other local agents

Data Source

Methodology for Data Collection

Federal PCU
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 6. People participating in income-generating activities supported by the project

: Measures number of individuals engaged in income generating activities promoted by the project. The
associated activities increase opportunities for diversifying livelihood, increasing resilience as a result by
developing adaptive capacity as well as having a transformative impact through greater access to non-
traditional livelihood strategies. Activities include, but are not limited to, apiculture promotion, poultry
production, fattening, fruits, vegetables and cash crops as well as those individuals who are involved in
the production and marketing of improved cook stoves.

Definition/Description
This indicator treats individuals equally whether undertaking activities on their own or as part of a group,
in which case the number of active group participants contributes to the total. In some instances,
individuals may engage in or belong to one or more groups involved with project-supported income
generating activities but should be counted only once.

This indicator is tracked as part of the stakeholder/beneficiary survey.

Baseline, Mid-term, Endline

Frequency

Based on information collected as part of stakeholder/beneficiary survey and household survey.

Data Source

Methodology for Data Collection

Federal PCU responsible for contracting third party or arranging data collection.
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 6a. Women participating in income generating activities supported by the project
Definition/Description Same as parent indicator.
Same as parent indicator.
Frequency

Same as parent indicator.

Data Source

Methodology for Data Collection

Same as parent indicator.
Responsibility for Data Collection

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 7. Watershed User Associations (WUAs) established and strengthened

By the end of the project period, all SLMP-I (45) and SLMP-II (90) watersheds are expected to have
completed their MYDPs and graduated from project-based support for SLM. To help ensure the
sustainability of the SLM interventions, the Project will provide support for the creation of Watershed
User Associations (WUAs) in each graduating watershed, to replace the project-based Community
Watershed Teams (CWTs) and Kebele Watershed Teams (KWTs) with legally recognized institution for
the ongoing planning and management of the watershed. This indicator measures the number of such
WUAs legally formed for Project watersheds.

Definition/Description Watershed Management and Use Plans (WMUPs) agreed by WUAs will detail management and use for
graduating watersheds, outlining agreements to conserve and utilize the resources, and establishing
bylaws for managing and implementing conservation activities and the distribution of benefits. The
development of these WMUPs is critical for ensuring land resources are used and managed in a way that
enhances absorptive and adaptive capacity to climate change, promoting resilience broadly at the
landscape level. This indicate measures the number of targeted watersheds in the Project area that have
developed a WMUP approved locally by the WUA, and either the Woreda or regional SLMP coordination
platform.

Annual
Frequency

Reported by woreda and captured as part of the regular M&E reporting.

Data Source

Methodology for Data Collection

Federal PCU
Responsibility for Data Collection

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 7a. WUA's with Watershed Management and Use Plan
Definition/Description Same as parent indicator.
Same as parent indicator.
Frequency

Same as parent indicator.

Data Source

Methodology for Data Collection

Same as parent indicator.
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 8. Woreda information centers being effectively used by project stakeholders
Woreda information centers serve as repositories for data, information and knowledge products relating
to SLM and make this information publicly available for multiple audiences. Access to relevant and up-to-
date information improves decision-making for planning and implementation of climate resilient
strategies that are absorptive, adaptive, and transformative. The information provided by these centers
includes, for example, best practices, indigenous knowledge and experience of farmers, and scientific
knowledge and practices. These centers also collect and document biophysical, socio-economic, and
Definition/Description spatial information (i.e. maps) as part of a comprehensive database to track changes and impacts of
RLLP. These information centers are expected to be equipped with basic office furniture, computers,
shelf cabinets, scanners, photocopiers, as relevant, and may provide space for reading and learning.

The functionality and effectiveness of these information centers will be tracked as part of the
stakeholder/beneficiary survey.

Annual
Frequency

Based on information collected as part of stakeholder/beneficiary survey.

Data Source

Methodology for Data Collection

Federal PCU with relevant regional expert to document the centers’ functionality
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 9. Parcels of land surveyed and mapped for certification

This indicator is the total number of parcels surveyed and mapped. This includes the number of
individual and communal land parcels surveyed, mapped and registered with the Woreda Office of Land
Administration and Use (WoLAU) as part of second-level land certification activities. Interventions that
Definition/Description
increase tenure security and define associated rights provide holders with an incentive to take a long-
term term perspective when managing land resources and undertaking investments, increasing
productivity and enhancing resilience through adaptive and transformative means.
Annual
Frequency

Information extracted from NRLAIS database or generated using data collected from Woreda Offices of
Data Source Land Administration and Use.

Methodology for Data Collection

Federal PCU
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 10. Second level land certificates issued as a result of the project
The number of second-level land certificates issued. This is a WB core indicator for the number of land
parcels with use or ownership rights recorded as a result of the Project. Interventions that increase
tenure security and define the associated rights provide holders with an incentive to take a long-term
term perspective when managing land resources and undertaking investments, increasing productivity
Definition/Description and enhancing resilience trough adaptive and transformative means.
Note: Second-level certification differs from the earlier first-level certification program by providing
additional spatial (i.e. location and boundary) data in the form of a parcel map.

Annual
Frequency

Information extracted from NRLAIS database or generated using data collected from woreda land
Data Source administration offices.

Methodology for Data Collection

Federal PCU
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 11. Households who have received second level land holding certificates
This indicator measures improved land rights as evidenced by the number of households who have
received second-level land holding certificates for individual parcels that have been surveyed, mapped
and registered by the woreda. Interventions that increase individual tenure security and define the
associated rights provide households with an incentive to take a long-term term perspective when
managing land resources and undertaking investments, increasing productivity and enhancing resilience
through adaptive and transformative means.

Definition/Description Second-level certification differs from the earlier first-level certification program by providing additional
spatial (i.e. location and boundary) data in the form of a parcel map. HHs include male-headed, female-
headed and jointly-headed HHs. Female-headed households are those usually headed by widows,
unmarried, divorced or separated women.

The sub-indicator disaggregates the parent indicator to better track improvements in women’s land
rights under the project.

Annual
Frequency

Information extracted from NRLAIS database or generated using data collected from woreda land
Data Source administration offices.

Methodology for Data Collection

Federal PCU
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

IR 11a. Women who have received second level land holding certificates individually or jointly with a
Indicator Name
man
Definition/Description Same as parent indicator.
Same as parent indicator.
Frequency

Same as parent indicator.

Data Source

Methodology for Data Collection

Same as parent indicator.
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

IR 12. Landless youth who are members of groups who have been issued a second level certificate or
Indicator Name
other legal documentation to use communal land holdings in exchange for restoring land
This indicator captures the number of individual landless youth that are organized into user groups and
who, as a result of the project, have secured greater land rights in exchange for rehabilitating degraded
communal land. These rights are documented by a second level certificate or other legal documentation
such as a lease, which is issued to a given user group in exchange for rehabilitating and managing the
Definition/Description land and applying appropriate SLM practices to sustain land productivity. This innovation has potential
for scaling up. Interventions that increase tenure security and define the associated rights provide
holders with an incentive to take a long-term term perspective when managing land resources and
undertaking investments, increasing productivity and enhancing resilience through adaptive and
transformative means.
Annual
Frequency

Information extracted from NRLAIS database or generated using data collected from woreda land
Data Source administration offices.

Methodology for Data Collection

Federal PCU
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

IR 12a. Women Landless youth who are members of groups who have been issued a second level
Indicator Name
certificate or other legal documentation to use communal land holdings in exchange for restoring land
Definition/Description Same as parent indicator.
Same as parent indicator.
Frequency

Same as parent indicator.

Data Source

Methodology for Data Collection

Same as parent indicator.
Responsibility for Data Collection

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Indicator Name IR 13. Woredas with functioning land administration information systems
Institutions that support good land governance and land administration play a key role in defining and
enforcing land holder rights, which enhances tenure security. Security of tenure requires reliable and up
to date land information whereas the sustainability of functional land administration depends on the
ability to keep the land information constantly up to date. The data contained in the information systems
reflect actual physical and legal data of the parcels, their landholders or possessors and match with the
reality on the ground (reflecting the actual link between the cadaster and the register, and the reality on
Definition/Description
the ground). All the information registered in the systems comes from data accurately collected in the
field and this can be managed effectively through a functional land information management system
such as NRLAIS. This indicator will track Woredas with NRLAIS installed and managing land administration
services in daily basis. Security of tenure allows rights holders to take a long-term term perspective when
managing land resources and undertaking investment, increasing productivity and enhancing resilience
trough adaptive and transformative means.
Annual
Frequency

Information extracted from NRLAIS database or generated using data collected from woreda land
Data Source administration offices.

Methodology for Data Collection

Federal PCU
Responsibility for Data Collection

Note to Task Teams: End of system generated content, document is editable from here.

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Glossary

Communal land - refers to land whose rights to use and access are assigned to a group or community (as opposed to an individual). Under
second level land certification such land is designated as communal.

Female-headed households are those usually headed by widows, unmarried, divorced or separated women.

Individually held land - refers to land where rights to access and use land are assigned to individuals (as opposed to groups). Typically, this will
include cultivated farmland and homestead plots. Under second level land certification such land is typically assigned to an individual or
individuals (i.e. household members).

Micro watershed is equivalent to a minor or community watershed and the smallest planning unit within the major watershed.

Major watershed is equivalent to critical watershed. A typical major watershed will be comprised of approximately 8-12 micro watersheds.

Multi-Year Development Plan - a watershed development plan prepared by the community in accordance with the CBPWDG, outlining the
activities to be undertaken under RLLP in order to stabilize the watershed so that it is no longer at risk of further degradation.

Project area is total land area of major watersheds included under RLLP. This includes new watersheds introduced under RLLP in addition to
those receiving support under SLMP-I and SLMP-II.

Project beneficiary - an individual or group directly targeted by the project or included in the project area. Project beneficiaries are a sub-set of
project stakeholders.

Project stakeholder - an individual or group whose interests are impacted (positively or negatively) by the project or whose interests can impact
the project. In addition to project beneficiaries, stakeholders include development partners, local governments, partner organizations and anyone
outside the project area who will be impacted by the project.

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The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

ANNEX 1: DETAILED PROJECT DESCRIPTION

COUNTRY : Ethiopia
Ethiopia Resilient Landscapes and Livelihoods Project

1. The project builds on the wealth of technical, operational and institutional experience and lessons learnt
through the implementation of the Government of Ethiopia (GoE)’s Sustainable Land Management (SLM)
Program, including the Bank-financed SLMP-I and SLMP-II, as well as similar initiatives supported by other
bilateral and multilateral partners in the country and the region. Complementing the core investments in
biophysical watershed restoration, the project includes a set of complementary activities, aimed at
strengthening the basis for beneficiary communities to derive sustainable livelihoods from restored landscapes
through support for climate smart agriculture, diversified income-generating activities, connections to value
chains, and improved land tenure.

2. The project area includes a total of 152 major watersheds located in the Ethiopian Highlands, averaging
approximately 10,000 hectares each, comprising an estimated 2,122 micro watersheds, and covering a total
project area of approximately 1.5 million hectares. A phased approach will be adopted in the form of support
provided to watersheds, differentiating between those selected under SLMP-I, SLMP-II, and newly identified for
RLLP. The forty-five watersheds supported under SLMP-I will receive technical assistance to graduate from
project-based support to long-term maintenance of landscape productivity. To facilitate this transition, the RLLP
will support the creation of WUAs, build local government capacity to design and manage SLM interventions,
strengthen incentives for household investment in SLM through land certification, and help improve returns to
sustainable productive activities by forging connections to value chains. Project support for the ninety SLMP-II
watersheds will allow implementation of their MYDPs for watershed restoration to be completed, prior to
provision of graduation support as for SLMP-I watersheds. Seventeen new watersheds have been selected for
RLLP based on criteria set out in the Ethiopia Strategic Investment Framework for Sustainable Land Management
(ESIF), prioritized based on extent and severity of land degradation. These new watersheds will receive technical
assistance for the preparation of MYDPs, followed by investment in SLM and CSA practices.

3. RLLP will be implemented through four integrated components: (i) green infrastructure and resilient
livelihoods; (ii) investing in institutions and information for resilience; (iii) rural land administration and use; and
(iv) project management and reporting.

Component 1. Green Infrastructure and Resilient Livelihoods (Total: US$78.5 million of which US$65 million
(SDR45.9 million equivalent) from IDA, US$8.5 million from MDTF, and US$5 million from GoE)

4. The objectives of this component are to support the restoration of degraded landscapes in selected
micro-watersheds and to help build resilient livelihoods on this newly productive foundation. This will be
achieved through: (i) the implementation of sustainable soil and water conservation practices in line with MYDPs
in SLMP-II and newly identified watersheds; (ii) support for the adoption of climate-smart agricultural practices
in all project watersheds; and (iii) promotion of livelihood diversification and linkages to value chains in all
project watersheds.

5. This component will complete the implementation of SLWM practices by rural smallholders and
communities under MYDPs in SLMP-II watersheds, and scale up these proven interventions to seventeen

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additional watersheds (average 10,000 ha each) that are vulnerable to climate variability and change, recurrent
drought and floods, and land degradation. SLWM interventions on both communal and individual lands will be
financed (with differentiated levels of community contribution), as well as infrastructure such as green corridors
linking fragmented forests, and community access roads designed to optimize water-harvesting, together with
the necessary technical advice for specific outputs, such as the preparation of MYDPs and WMUPs, and the
establishment of WUAs. Proven SLWM practices include: soil and water conservation infrastructure such as
terraces, water harvesting trenches, check dams, small reservoirs, and other civil works; soil fertility and
moisture management; assisted natural regeneration, enclosures plus livestock land use rationalization,
intercropping, low tillage, gully reclamation, establishment of grazing corridors, watering points and wells, and
sylvo-pastoral management strategies. Government Development Agents (DAs) in the Bureaus of Agriculture
will mobilize and support communities and receive continuous training to ensure quality advice and extension
services.

6. The objectives of this component will be achieved through the implementation of the following sub-
components: (i) land restoration and watershed management; (ii) climate-smart agriculture; and (iii) livelihood
diversification and connections to value chains.

Sub-component 1.1: Land Restoration and Watershed Management (Total: US$57.5 million of which US$49
million (SDR34.6 million equivalent) from IDA, US$3.5 million from MDTF, and US$5 million from GoE)

7. This sub-component will focus on the implementation of land rehabilitation measures and
establishment of green infrastructure required for the rehabilitation mainly of communally-owned degraded
forest, pasture and woodlands, but also privately cultivated lands, through biophysical land and water
conservation measures. One key objective of this sub-component will be to create benefit streams for the
communities in the targeted micro watersheds from increased ecological services and land productivity, mainly
through productive use and management of landscape resources. In addition to the proven practices applied
during SLMP-II, this sub-component will also introduce the establishment of green corridors, which will enhance
watershed restoration and ecological connectivity, as well as expand the lifespan and resilience of drainage and
road infrastructure.

8. The objective of the sub-component will be achieved through biological and physical conservation
measures that ensure reduced surface run-off and soil erosion, as well as improved land productivity, resulting
in enhanced crop and livestock production. The following activities will be supported:

• Soil and water conservation measures on communal and privately cultivated lands: biological and physical
soil and water conservation measures/practices such as construction of terracing, check dams, water
harvesting (e.g. trenching), reseeding, re-vegetating, etc. will be implemented on degraded communal and
farm lands;
• Gully rehabilitation: Cost efficient biophysical gully restoration techniques such as sandbag check dams,
sediment storage dams and gabion-check dams will be applied. Productive use and management of the
rehabilitated gullies will be supported, such as for forage, fruit and fuel wood production;
• Establishment of green corridors: Planting suitable, preferably native, tree species along rivers/streams and
all-weather roads connecting forest patches in the watersheds. Post plantation management support
including tending, hoeing and soil moisture conservation will be carried out. Green corridors will also be
established along gully offsets to ensure stability and productive use of the land;

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• Area closure management and use: assisted natural regeneration through restrictions on free grazing,
enrichment planting, soil fertility improvement and moisture retention will be implemented in communal
areas and/or privately managed degraded bush and woodlands. Cost efficient management practices of
enclosures will include supporting local communities in the preparation and execution of participatory use
and management plans of enclosed areas, including forage cut-and-carry arrangements;
• Establishment of plantation blocks: Reforestation and afforestation of degraded forest and shrub/bush
lands with a diverse range of tree and shrub species that can be used as a source of food, feed and energy,
and enhance fertility of the soil. Planting of appropriate tree seedlings including economically valuable
species, and post-plantation management practices such as tending and watering in moisture stressed
areas, hoeing and weeding during early stages will be carried out to ensure survival of the planted seedlings;
and
• Enrichment of degraded pasture and rangeland: Planting and reseeding of appropriate forage species
including fodder crops in degraded pasture and rangelands to increase productivity and improve the value
of feed for grazing animals. Management of unpalatable evasive species will also be undertaken in pasture
and rangelands to ensure optimum forage production.

9. Suitable rehabilitation interventions for each micro-watershed are determined based on their particular
agro-ecological conditions, and incorporated in a MYDP developed through a participatory process, utilizing the
technical parameters and procedures established in the CBPWDG, 2005 developed by MoALR, and currently
being updated. MYDPs already exist for SLMP-II watersheds, but technical assistance will be provided under this
sub-component for the preparation of MYDPs for the new watersheds to be treated, as well as for the
preparation of WMUPs and the creation of WUAs for those SLMP-I watersheds graduating from project-based
support.

10. Supported by the zonal, regional and national Platforms (see details in Annex 2), implementation of
MYDPs is undertaken jointly at the woreda and kebele levels through the Woreda SLM core team, the KWT, and
the beneficiary communities. Together with the kebele Development Agents (DAs) and CFs, the Woreda SLM
core team and KWT assist communities in: (i) developing annual work plans and budgets for submission to the
Regional PCUs for endorsement and integration into the Regions’ work plans and budgets; (ii) facilitating
community participation in watershed planning and rehabilitation; (iii) identifying training needs; (iv) monitoring
and evaluation; and (v) dissemination of experiences and results. The operational details for the planning,
design, and implementation of MYDPs are included in the PIM.

Sub-component 1.2. Climate-Smart Agriculture (Total: US$15 million of which US$10 million (SDR7.1 million
equivalent) from IDA and US$5 million from MDTF)

11. Interventions under this sub-component will aim at enhancing the livelihood resilience of beneficiary
households through CSA interventions in selected micro-watersheds assisted by the project. The improved
adaptation of restored watersheds to variable rainfall patterns and adverse climatic events, combined with
reduced degradation-related risks (achieved through sub-component 1.1), will provide suitable conditions for
beneficiaries to adopt improved, climate-smart farming practices and diversify and/or intensify their current
production systems. For this, technical and financial assistance will be provided to stabilize soils and increase
fertility; improve water retention, harvesting and infiltration; increase biomass (and carbon) accumulation; and
promote the adoption of climate-smart tillage and production practices in farm plots and home gardens.

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12. This sub-component will build on the achievements of sub-component 1.1, such as improved water
retention and infiltration, gully and degraded hillside stabilization, and enhanced biomass production. This
connection to the biophysical restoration of the landscape is important, as it will help ensure that unsustainable
agricultural practices do not reverse prior restoration measures. In this way, agricultural activities become fully
integrated into the watershed/landscape restoration approach and contribute towards the goal of climate
resilient watersheds. The ongoing pilot within SLMP-II and lessons from international experience indicate that
CSA cannot be achieved by a single measure or practice. In order to achieve the triple wins of adaptation,
mitigation and increased production, technical and financial assistance will be provided to implement context-
specific packages of CSA activities. The following CSA activity packages will be supported under this sub-
component:

• Farm water and soil moisture management: This will include in situ soil moisture management practices
such as improved tillage, mulching/permanent soil cover and water harvesting including construction of cut-
off/on drains and road water harvesting. Provision of improved farm tools/machineries for moisture
conservation tillage will be considered under this activity;
• Integrated soil fertility and soil health management: Various soil fertility management practices such as
improved compost making including bio-slurry, vermi-compost and manure management (including bio-
digestors); lime and gypsum application for acidic and alkaline soils respectively; promotion of tree-crop-
livestock systems (agro-forestry practices); and crop rotation and legume intercropping will be integrated as a
package and promoted based on local conditions and farmers indigenous knowledge and commitment;
• Crop development and management: Access to better performing crops (drought and disease resistant)
will be supported based on local-level adaptive research and crowd-sourcing by farmers over a wide range of
crop varieties (both local and improved cultivars). Integrated pest and disease management, including post-
harvest management, will be practiced to minimize crop yield losses. Productive use of increased soil moisture
through production and management of high value crops, such as vegetables and fruits, will also be part of this
activity package. Improved farm tools and machinery such as line planters, tillage and harvesting equipment will
also be tested to improve the efficiency and effectiveness of the cropping system; and
• Environmentally-friendly livestock production through forage development and management: High
quality and quantity forage in pasture and along farm boundaries, gullies and back yards will be a priority to
minimize dependence on crop residue as livestock feed, as a means to help ensure increased use of biomass for
soil fertility improvement. Efficient use of livestock feed resources through feed treatment and improvement
of feeding troughs will also be implemented to reduce losses. Appropriate integration of agro-silvo-animal
husbandry practices will be introduced at homestead level based on the needs of local farmers and the
suitability of local conditions. Practicing an integration of multi-purpose food and tree cropping with livestock
rearing at the homestead can improve the fertility and organic matter content (including carbon) of soils, and
increase crop yields and household food security.

13. CSA interventions under RLLP will be implemented in 200 micro-watersheds that have already been
supported with landscape restoration during SLMP I and II. The following set of criteria and weight was used to
select eligible micro-watersheds: (i) at least 75 percent of the watershed restoration/rehabilitation plans
completed (25% weight); (ii) community agreement/bylaw on cut and carry/controlled grazing enforced (20%
weight); (iii) forage development along gullies, farm bunds, pasture lands and homestead are partly
implemented (15% weight); (iv) farmland covering more than 50 percent of the micro-watershed area (10%
weight); (v) access to functional Farmer Training Centres (FTCs) (10% weight); (vi) adjacent to SLMP-II CSA pilot
watersheds (10% weight); (vii) local knowledge or traditional practice of multi-cropping system (5% weight); and

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(viii) commitment of community and kebele watershed teams (5% weight).

14. Consistent with existing limitations, the operational unit for CSA interventions in eligible micro-
watersheds will be groups of organized farmers and their corresponding contiguous farm plots. The number of
groups and farm plots will be determined during the planning phase based on the budget allocated to the
woreda for CSA. CSA groups will be organized by the DAs assisted by woreda experts. In each group, the number
of members should ideally range between 20 and 30 farmers. These groups will constitute the equivalent of the
CIGs promoted by AGP, which will prepare results-oriented subproject proposals, integrating packages of goods,
small works, services and/or operating costs) for RLLP financing. The project will provide required inputs to the
CSA interest groups to improve efficiency of the farming practice. The operational procedures –including
procurement methods--for the implementation of the CSA subcomponent of the project will be included in the
PIM.

15. CSA is knowledge intensive and entails moving toward an agro-ecological approach. Project
practitioners will therefore need to extend their support to beneficiaries beyond the planning phase and provide
technical assistance throughout the entire adoption cycle. For this, the workload of the local technical structure
will include resources to: (i) conduct periodic visits to the plots of farmers implementing CSA practices, (ii)
establish demonstration or testing plots, and (iii) organize and conduct dissemination activities such as field
days and farmer exchange visits. Equally important, the regional structure should be capable of providing
technical backstopping to DAs, through periodic joint field visits, on-farm refresher training, as well as assistance
in planning and conducting demonstration activities.

16. CSA technology testing and demonstration activities, as well as collaboration with research and
academic institutions, will be part of CSA implementation. For this, FTCs or similar structures will be identified
and utilized at the watershed level, while contributions by research and academic institutions for the
identification of appropriate technologies and practices will be implemented through the establishment of a
CSA Innovation Platform supported by a consortium of CGIAR organizations.

Subcomponent 1.3: Livelihood Diversification and Connection to Value Chains (Total: US$6 million (SDR4.2
million equivalent) from IDA)

17. Beyond physical and biological measures, the Sustainable Land Management Projects (SLMP-I and
SLMP-II) have promoted livelihood diversification and income-generating activities that both improve
community resilience, and provide an incentive for maintenance of restored landscapes. About 1,446
beneficiary groups supported by SLMP-II are engaged in income-generating activities such as apiculture, poultry,
sheep and goat fattening, and vegetable and fruit farming, and have contributed to the reduction of pressure
on watersheds’ natural resources through the promotion of improved cook stoves. Based on a review of this
experience, RLLP will expand these interventions, and strengthen them through stronger engagement with the
private sector. The objectives of this sub-component are to (i) increase resilience by diversifying livelihoods, and
(ii) help ensure livelihood sustainability by better connecting products with value chains. IDA financing under
this sub-component will lay the foundations to scale up these activities through potential additional financing
from the GCF.

18. This sub-component will provide technical assistance and small grants to CIGs to develop productive
livelihood diversification activities. These semi-formal groups are established based on MoALR-approved

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guidelines for organization, planning and financing, and are the main community-level organizational unit used
under the Bank-supported AGP-2, which supports some 4,375 CIGs in 96 woredas. Key characteristics of CIGs
include the following:

• A focus on crop or livestock production, processing and marketing;

• No more than 20 members each, with only one per household, promoting and supporting women and
youth in particular;
• Governed by written rules and regulations (bylaws), which establish a clear structure, including a general
assembly of members and a managing board;
• Formation steps include preparation of a business plan, supported by kebele Cooperative Experts and
DA’s, who also provide ongoing guidance and advice.

CIGs supported by RLLP will also benefit from technical advice and training provided by economic growth
advisors associated with GIZ’s SURED program. By using the same community-level unit for livelihood
diversification, RLLP will facilitate coordination with other programs supported by MOALR, including AGP-2,
while specifically targeting communities living in degraded watersheds and focusing on activities linked with
SLM.

19. Particular emphasis will be given to the establishment of CIGs for the production and marketing of
improved cookstoves. This not only provides an alternative source of income, but also delivers multiple co-
benefits, including time-saving for women and girls in fuelwood collection, health improvements through
reduced household air pollution, and reduced pressure on local biomass resources through improved household
energy efficiency. As heating and cooking efficiency improves, use of manure and crop residues for cooking and
heating declines, allowing these materials to be used on fields to enhance soil fertility. For the production and
marketing of improved cookstoves, the RLLP will collaborate at the woreda level with (i) the Office of
Cooperative Promotion, to support organization of CIGs to produce energy efficient cook stoves and host
demonstrations at local markets and gatherings, and (ii) the Energy, Water and Mineral bureau, to provide
technical experts to conduct training for the producer groups.

20. Support for connections to value chains will target beneficiaries in 16 pilot woredas (four per region)
where (i) implementation of the MYDP is already advanced, (ii) RLLP is providing support for CSA, (iii) GIZ SURED
support is available, so that SURED Economic Development/Value Chain experts can provide technical
assistance, and (iv) other programs supporting private sector development activities can complement RLLP
efforts. In addition to market development activities supported by AGP-2 and the Agricultural Transformation
Agency, other examples of such programs include USAID’s Feed the Future (FtF) value chain activity, and the
USDA Feed Enhancement for Ethiopian Development (FEED) Project, which has supported the development of
at least 21 cooperative union-based feed manufacturing mills and is seeking opportunities to expand support
for forage development. RLLP will provide support for value chain connections in the form of (i) business plan
development, (ii) small equipment for grading and processing, as well as storage facilities, (iii) collaboration with
other value chain programs to facilitate market linkages, and (iv) development of contracts with cooperatives,
cooperative unions and other private sector partners.

Component 2. Investing in Institutions and Information for Resilience (Total: US$12.5 million of which US$6
million (SDR4.2 million equivalent) from IDA, and US$6.5 million from MDTF)

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21. The objective of this component is to build capacity for the promotion and management of SLWM
practices, and improve information for better decision-making in supporting resilient landscapes and diversified
rural livelihoods in the project area.

22. This component will provide technical assistance at the local level (woreda and kebele) to build local
government capacity for planning and managing SLWM interventions. This will include piloting of new
technologies for information modernization at the local level, including the use of electronic tablets for
gathering geospatial information, and the use of UAVs – or drones for land certification mapping. Support for
policy development under this component will focus on the regulatory framework for WUAs, community
byelaws guiding land-use practices, and strengthening the Land Administration System. To enhance the
evidence base for sustainable land management decision-making, this component will support three separate
but linked impact evaluations, of (i) biophysical impacts at the landscape level, (ii) livelihood outcomes at the
household level, and (iii) CSA productivity gains at the plot level. This component will also provide resources to
manage the knowledge generated through these and other assessments of SLWM, and to communicate the
lessons learnt to a broad audience, including local governments and communities, relevant research institutions
and Government agencies, as well as Development Partners.

23. This component’s objectives will be achieved through the implementation of the following sub-
components: (i) capacity building, information modernization and policy development; and, (ii) impact
evaluation, knowledge management and communication.

Sub-component 2.1. Capacity Building, Information Modernization and Policy Development (Total: US$7.5
million of which US$3 million (SDR2.1 million equivalent) from IDA and US$4.5 million from MDTF)

24. This sub-component will provide technical assistance at local government level to implement RLLP, and
to help build the capacity required to sustain SLWM interventions after watershed graduation from project-
based support. To achieve this, the sub-component will finance (i) part-time CFs at the kebele level (five CFs for
each major watershed), and (ii) accountants to support the heads of the WoANRs with project administration.
The sub-component will also provide targeted inputs for specific technical needs, including: (i) development of
an approach for community monitoring of surface and groundwater, as part of WMUPs; (ii) piloting local access
to publicly available agri-weather information; and (iii) training in cadaster development and land registration.

25. The sub-component will support information modernization to coordinate data collection and
information sharing at all levels and under all components of the project so that this information is well
organized, properly documented and accessible. As part of this effort, a data management plan will be
developed which specifies how all data used or created during the course of RLLP will be documented, stored
and otherwise managed. The use of electronic tablets to collect information on project activities and results,
combined with appropriate survey and mapping software, will improve the quality and timeliness of data
collection and reduce the effort needed to compile, review, and generate the necessary reports. This framework
will facilitate access to information and support timely feedback to the local level, and will also pilot the use of
UAVs, or drones to generate high-quality and timely aerial imagery data to support planning, monitoring, and
land certification.

26. Policy development under this sub-component will focus on: (i) the regulatory framework required for
the establishment of WUAs, and community byelaws guiding land-use practices; (ii) frameworks for reward and

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incentive schemes such as PES; and (iii) strengthening the rural land administration system. In developing the
framework for WUAs, the project will work closely with regional governments for its application in establishing
WUAs, first for the 45 SLMP-I watersheds graduating from project-based SLWM support, and subsequently for
the graduation of the 90 SLMP-II watersheds, once implementation of their MYDPs has been completed.
Building on the recent agreement reached between MoALR, the local community and Raya Brewery-BGI
Ethiopia for investment in SLWM at the brewery’s water source in the Tigray Region, this component will seek
further opportunities to reach agreements with other private and public-sector entities for PES for SLWM, and
will support the development of policy and a standardized approach for such initiatives.

Sub-component 2.2. Impact Evaluation, Knowledge Management and Communication (Total: US$5 million of
which US$3 million (SDR2.1 million equivalent) from IDA, and US$2 million from MDTF)

27. Impact evaluations (IEs) will use rigorous research methods to look at specific interventions under RLLP,
assess the contribution of these to development goals and provide robust evidence of SLM impact. Project
funding will focus on the evaluation of bio-physical impacts and CSA productivity gains, which will be conducted
in coordination with a livelihoods impact evaluation to be led by the Gender Innovation Lab of the World Bank’s
Africa Region, financed separately. The bio-physical impact evaluation will examine the response of the
environment to SLWM interventions, considering parameters such as peak and base surface water flows,
groundwater levels and recharge rates, sediment loads, and remotely sensed information on vegetation cover
and soil moisture. For the purposes of this evaluation, the project will extend the existing partnership between
MoALR and the WLRC of Addis Ababa University. The evaluation of the CSA productivity gains will be conducted
through a partnership between MoALR and CGIAR institutions, while the Environment and Climate Research
Centre of EDRI will be engaged to build synergies between the three evaluations and draw policy
recommendations.

28. To build a solid and effective knowledge management system both for RLLP and the broader SLMP, this
sub-component will put in place a geospatial knowledge platform that combines information from a variety of
project and other sources, and packages this in a format that is accessible to planners and stakeholders at the
national, regional, and local levels. This activity will build upon the work being done by WLRC under SLMP II to
develop a web-based knowledge management system.

29. A strategic communication program will be developed and implemented under this sub-component to
inform and mobilize communities, enhance project visibility and transparency among all actors, support efforts
to scale-up SLM and CSA practices, build support for the land certification program, and facilitate effective risk
management. Possible activities include:

i. knowledge identification, capturing, validation and packaging annually to support scaling up efforts, build
capacity of user groups, youth groups, DAs and FTCs (experiential knowledge, best practice and synthesis of
explicit knowledge products from various sources such as the geo-spatial knowledge platform, the CSA
Innovation Platform, model watershed, etc.);
ii. strengthening and enhancing functionality of existing FTCs and SLM information centers at woreda level and
establishing info centers in new woredas;
iii. outreach activities (i.e. production of printed, audio and video materials to be used as supporting tools
during workshops and events, and media tours for journalists and PR officers of relevant regional bureaus
to show project results);

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iv. knowledge sharing and networking events, including field days and farmer exchange visits from kebele to
kebele to share the benefits of resilient practices and induce their adoption, experience-sharing visits for
woreda administrators and other leaders to SLM sites and demonstration plots where CSA practices are
being implemented, and an annual SLMP Knowledge fair;
v. advocacy activities to support private sector engagement, policy development and other key initiatives for
effective implementation of RLLP (for example organization of stakeholder workshops and study tours for
government officials);
vi. grassroots level behavior change campaign targeted to major/critical watersheds, based on preliminary
research to define appropriate media (drama, storytelling, etc.) and effective messengers (i.e.
community/religious leaders) and gauged throughout the duration of the program through a mix of
qualitative/quantitative research methods (FGDs, community level meetings, survey); and,
vii. public information awareness activities on land registration and cadastral surveys, land laws and procedures
and conflict resolution mechanism, and to explain the benefits of (formalized) rentals to help unlock the
blockage set by cultural norms, emphasizing that temporary land renting does not imply abandonment and
formalized rental contracts do not result in land being expropriated.

Component 3. Rural Land Administration and Use (Total: US$23 million of which US$20 million (SDR14.1 million
equivalent) from IDA, and US$3 million from MDTF)

30. The objective of this component is to strengthen the rural land administration system that secures
tenure rights, optimizes land use, and empowers land-users to sustainably invest in productive landscapes. The
component will provide security of tenure to smallholder farmers in RLLP watersheds through SLLC as an
incentive to increase the adoption of SLM technologies and practices. This component will also extend the on-
going local-level participatory land-use planning exercise at kebele level within RLLP watersheds, and will
support the rollout of the NRLAIS in RLLP woredas.

31. RLLP will provide resources for orthophoto production, para-surveyors for field level data acquisition,
and data encoders for office level data management. It will support the use of low-cost surveying and mapping
technologies, and will pilot drone aerial mapping and mobile mapping using tablet computers. Activities to be
supported will include (i) orthophoto base map preparation, (ii) consultations on land rights using orthophoto
base maps, (iii) scanning and geo-referencing of adjudication maps, vectorization of parcel boundaries and
keying-in of attribute information, (iv) public display for validating parcels (shape and size) and landholders’
information, (v) parcel map and Landholding Certificate preparation, production, authentication and issuance,
and (vi) procurement of equipment, materials and consumables for cadaster and land registration activities.
Technical assistance will be provided to support consultation workshops for land-use plan development at
kebele level, and to connect these consultations to the larger land-use planning exercises being undertaken at
the regional and national levels.

32. The development of NRLAIS software started in 2015, with the prototype version completed and tested
in 2017. A production version was delivered to the MoALR in March 2018, and an Operational Acceptance
Report was prepared based on the testing of this version. The NRLAIS roll-out will be divided into two phases of
two years each, starting with a comparative trial of 4-6 months which may reveal necessary improvements and
changes, followed by a period of roughly 18 months with enough active installations to ensure its readiness for
large-scale roll-out. The second phase will continue the rollout at increased speed, addressing sustainability
factors. Rollout of the NRLAIS is expected to provide security, transparency, and maintenance of land

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information, with enhanced data management functionality and usability at woreda level in an effective,
spatially integrated, and sustainable manner. It will also equip the regional and federal authorities with an
adequate tool to produce and use statistical data on rural land tenure and land use that will facilitate evidence-
based monitoring, and will help ensure a coordinated and consistent approach to the development of policies
and legislation for sound land governance across the country. This component has been developed in close
consultation with land administration support from other development partners, including the in Ethiopia
REILA26 Project being implemented by Finland, the Project LIFT27 being implemented by the DFID, as well as
programs supported by GIZ and USAID. Through these consultations it has been agreed, for example, that in
Gambella RLLP will support NRLAIS roll-out at both the regional and RLLP woreda levels, given that no other
development partners have interventions in this region. During implementation of RLLP, coordination with
relevant development partners will be ensured through the G7 Donor Working Group on Land28.

33. At the woreda and kebele levels, implementation of this component will be undertaken jointly by the
WoLAU through the Kebele Administration Offices, the KLAUC, the Land Administration and Use DAs, and the
communities. Field teams will be contracted, trained and deployed, each comprising a team leader, a para
surveyor, a data recorder, a digitizer, and a Woreda GIS expert and a supervisor, to facilitate and undertake the
field and office level land certification activities. Woreda and kebele land use teams will anchor the preparation
of Participatory Local Land Use Plans. At the regional and zonal levels, the Bureau of Land Administration and
Use and related agencies will lead the implementation of this component of the project with support from the
Regional RLLP PCU. At federal level, the Rural Land Administration and Use Department (RLAUD) in the MoALR
will be the main focal point for policy, planning, and implementation guidance to RLLP regions and woredas. A
NRLAIS rollout support unit established at regional and federal levels will provide technical assistance for this
activity.

Component 4. Project Management and Reporting (Total: US$15 million of which US$9 million (SDR6.4 million
equivalent) from IDA, US$1 million from MDTF, and US$5 million from GoE)

34. The objective of this component is to effectively consolidate plans and budget, implement and report
on project activities with due diligence and integrity.

35. Under this component, RLLP will finance the staffing and operational costs of the PCUs in MoALR and
Regional State Bureaus of Agriculture and Natural Resources. These PCUs will carry out all fiduciary aspects of
project implementation including financial management, procurement, environmental and social safeguards,
and M&E reporting. Reporting at the federal, regional, woreda and community levels will aim to ensure sound
tracking of progress information (activity/output level results) and to evaluate information from a variety of

26 REILA II is a four-and-a-half-year project with a total budget of EUR 7.81 million. The project aims to: 1) Improved regional LA and increased and
certified land tenure security for land users (in 6 Woredas in Benishangul Gumuz and 11 Woredas in Amhara region) and NRLAIS rollout; 2) Improved
capacity for federal and regional LA for planning, management and coordination, and for accurate and efficient land surveying; and 3) Improved supply
of skilled manpower to the LA sector.
27 LIFT with a total funding of 63 million pound operates in four regions (Oromia, Amhara, SNNR, and Tigray). LIFT aims to support the Government of

Ethiopia in the provision of map based land certificates to farmers and assist them to fully benefit from increased investment and productivity through
the development of the rural land market and its supporting operations.
28 In 2013, the Governments of Ethiopia, the United Kingdom, the United States of America, and the Federal Republic of Germany announced an

agreement to enter a land country partnership to work together to improve rural land governance for economic growth and to protect the land rights of
Ethiopians. The partnership was envisioned to build on existing programs and serve as a vehicle for increased coordination and collaboration among the
Government of Ethiopia and its development partners. Since then the WBG has been an active member of the G7 Land Partnership through its active
operations managed under ENR portfolio such as SLMP, OFLP, and CRGE TA.

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sources relevant to outcome level results, to promote learning and adaptive management. The outputs under
this activity include: (i) implementation of a new Results-Based M&E Plan based on clear guidance on what to
collect and how to collect it (indicator protocols); (ii) a well-functioning MIS system; (iii) improved capacity of
stakeholders in M&E; and (iv) improved quality of information collected. For more details on implementation
and institutional arrangements, see Annex 2.

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ANNEX 2: IMPLEMENTATION ARRANGEMENTS

COUNTRY : Ethiopia
Ethiopia Resilient Landscapes and Livelihoods Project

Project Institutional and Implementation Arrangements

1. The organizational structure for the implementation of the ongoing SLMP-II will be maintained and
strengthened for the execution of RLLP. Implementation will be carried out at five levels: federal, regional, zonal,
woreda (district) and kebele (sub-district).

2. RLLP will be implemented by existing GoE structures and community institutions. Implementation will
be decentralized with beneficiary communities assuming primary responsibility for executing most project
activities in the watersheds. As was the case in SLMP-II, the success of RLLP core interventions will depend on
strong community-based institutions. For this, the project will support the strengthening of existing community
structures, while building new ones in newly selected watershed areas. The necessary backstopping and
coordination of technical support for activities to be implemented by communities in the watersheds will be
provided by experts of the WoANR and WoLAU, supported by Woreda Development Agents (DAs), project-
funded CFs, and providers of technical assistance contracted by RLLP, with training and quality assurance
provided through the GIZ SURED project.

3. A PIM, to be finalized within one month of project effectiveness, will guide the implementation of the
project. The PIM will cover the following aspects: (i) detailed implementation arrangements by component,
including institutional arrangements, roles and responsibilities; (ii) identification and characterization of
watersheds selected; (iii) the subproject cycle; (iv) detailed implementation schedule; (v) financial management
and reporting; (vi) procurement; (vii) monitoring and evaluation; and (vi) procedures for the implementation of
the Environmental and Social Management Framework.

4. At the local level, implementation of MYDPs is undertaken by CWTs, KWTs, and the Woreda SLM core
team. Together with part-time CFs, paid by the project), and full-time kebele Development Agents (DAs), these
structures will: (i) facilitate community participation in preparation of MYDPs; (ii) develop annual work plans
and budgets; (iii) identify training needs; and (iv) conduct monitoring and evaluation. Implementation of
Component 3 will be undertaken jointly by the WoLAU, the KLAUC, and the Land Administration and Use DAs.
In addition, the project will contract technical advisors for specific outputs, such as preparation of MYDPs and
WMUPs, establishment of WUAs, and development of business plans for IGAs and value chain linkages.

5. At the federal and regional levels, the SLM Program is guided by National and Regional SLM Steering
and Technical Committees. MoUs will be signed between MoALR and the Regional BoAs for implementation of
the project, defining each Region’s contribution to the project’s objectives. The National and Regional
Steering Committees will oversee execution of annual work plans and achievement of results defined in the
MoUs. At the regional level, the Regional BoAs will lead implementation of the project, reviewing and
consolidating annual work plans, budgets, procurement plans and progress reports submitted by the
participating woredas.

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Project Administration Mechanisms

Federal Level

6. As in the case of SLMP-II, MoALR, working closely with other relevant sector ministries including MoFEC
and MoWIE, will lead the coordination, supervision and implementation of the project. The existing institutional
mechanisms already established to provide oversight and policy direction and to coordinate all projects and
initiatives on SLM financed by the GoE and development partners will be continued. These are the Rural
Economic Development and Food Security (RED&FS) Platform, National SLM Steering Committee, National SLM
Technical Committee and the SLM Project Coordination Unit – all hosted at MoALR.

7. The Rural Economic Development and Food Security (RED&FS) Platform, chaired by the Minister for
Agriculture and Natural Resources, has high-level representation, including from MoFEC, MoWIE, MEFCC and
development partners supporting mainstream agriculture, food security and disaster risk management. RED&FS
is serviced by a secretariat comprising a MoALR staff and a coordinator hired and financed by DPs. Under the
RED&FS platform are three federal level committees namely the SLM Technical Committee, Agriculture
Technical Committee and Disaster Risk Management and Food Security Technical Committee.

8. The National SLM Steering Committee, chaired by the State Minister for Natural Resources Management
in MoALR, comprises high level representation from MoFED, MoWIE, MEFCC and Development Partners. The
Steering Committee is responsible for the following tasks in the SLM project: (a) providing policy guidance,
oversight and overall supervision for project implementation; (b) reviewing and approving the consolidated
annual work plan, budget and procurement plan; (c) reviewing and approving the annual implementation
performance report, and overseeing the execution of any corrective actions that may be designed.

9. The National SLM Technical Committee is also chaired by the State Minister for Natural Resource
Management in MoALR. It is made up of senior technical staff from institutions such as MoALR, MoWIE, MoFEC,
MEFCC, the Ethiopian Institute for Agricultural Research (EIAR), development partners supporting SLM projects
or initiatives, and civil society organizations (non-governmental organizations) actively engaged in SLM
activities. Generally, this body is responsible for providing technical advice to MoALR on SLM. Specific to RLLP,
this Committee will provide technical advice on the quality of implementation performance reports and special
studies such as policy and legislative drafts, financial and audit reports, documentation of best practices, and
M&E reports.

10. The SLM PCU at MoALR will continue to play the role of managing and facilitating the day-to-day
implementation of the project. Specific tasks will include: (a) consolidating regional annual work plans, budgets
and procurement plans; (b) facilitating and supervising implementation of work plans and corrective actions,
safeguards instruments including management/mitigation plans; (c) processing and procuring works, goods and
services; (d) monitoring overall implementation progress, safeguards instruments (and management/mitigation
plans) and evaluating project impacts; and (e) preparing progress reports. The Unit will maintain a team of
experts including a National Project Coordinator, procurement and financial management specialists, M&E
expert and technical experts in diverse disciplines (e.g., watershed management, agronomy,
forestry/agroforestry, land administration/land use planning, knowledge management & communication,
livelihoods, private sector development, etc.).

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Regional and Zonal Level

11. Implementation of activities on the ground is supported by, among others, Regional steering and
technical committees. MoUs will be signed between MoALR and the Regional BoAs for implementation of the
project, defining each Region’s contribution to the project’s objectives. The National and Regional Steering
Committees will oversee execution of annual work plans and achievement of results defined in the MoUs. The
Regional BoAs will lead implementation of the project, in close collaboration with relevant public institutions.
Serving as the link between the federal, zonal and woreda institutions, the BoAs will review and consolidate
annual work plans, budgets, procurement plans submitted by the woredas. It will also review and approve
implementation progress reports (including M&E, financial, audits, safeguards, etc.) originating from the
woredas. The project will finance a project coordinator, M&E expert, accountant and procurement officer per
region to assist the BoA and WoANR to implement the project on a day-to-day basis. At the zonal level, the Zonal
Agriculture Office (ZAO) will provide technical support, extension services and M&E to a group of woredas under
its jurisdiction. The ZAOs will coordinate with the WoANRs to discharge their responsibilities enshrined in the
MoU. Moreover, RLLP shall provide opportunities to zonal implementing entities to participate in the
implementation of activities, draw lessons from the project and support scaling up of SLM practices to wider
landscapes. In addition to the existing government staff, RLLP will contract technical advisors for specific outputs
(such as preparation of MYDPs and WMUPs, establishment of WUAs, and preparation of business plans for IGAs
and value chain linkages) in 29 zones where SLMP-I, II, and RLLP will be implemented.

Woreda and Kebele Levels

12. On-the-ground planning and execution of activities under the project will be undertaken jointly by the
WoANR, the KWT, Development Agents (DAs) and communities. At the woreda level an SLM core team is
responsible for, among others:

• participating in the selection and prioritization of community watersheds in the woreda;

• organize orientation and training of DAs in watershed planning and implementation issues, including follow-
up and on-the-job training;
• preparation of information kits and teaching aids;
• assist DAs during watershed MYDP preparation, and review of MYDP implementation;
• prepare woreda-level aggregated watershed plans, and use of watershed plans for upgrading of woreda
strategic plans.

Additionally, according to the Community Based Participatory Watershed Development Guideline (CBPWDG),
the Woreda SLM core team shall have the following responsibilities:

• Prepare proposals for linkages/synergies with other institutions, for example health and education;
• Ensure timely result-based monitoring using participatory approaches, and yearly review of watershed
MYDP implementation progress by DAs and communities;
• Assist in proper documentation, dissemination and networking of watershed development activities and
integrate family planning with watershed development.

WoANRs, KWTs and DAs will assist communities in:

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• developing annual work plans and budgets as well as procurement plans for submission to the BoAs for
review and endorsement and integration into the region’s annual work plans and budgets;
• facilitating and mobilizing community participation in watershed planning and rehabilitation;
• undertaking awareness campaigns and training;
• participatory monitoring and evaluation;
• extension service delivery and dissemination of new practices and technologies; and,
• for watersheds graduating from project-based support, the establishment of WUAs and preparation of
forward-looking Watershed Management and Use Plans (WMUPs)

Implementation of Component 3, Rural Land Administration and Use, will be undertaken jointly by the WoLAU
through the Kebele Administration Offices, the KLAUC, the Land Administration and Use DAs, and the
communities.

Community Level

13. CWTs are responsible for the implementation of the watershed MYDPs developed in a participatory
manner by the community, DAs and the Woreda SLM core team. According to the Community-based Watershed
Development Guidelines (CBWDG), each CWT is composed of four male-headed households, four female-
headed households, one youth group representative, one religious representative, and any other respected
people or group. The committee should comprise five women out of ten. The committee shall have duties to: i)
serve as a permanent contact with the DAs, the rest of the community/target group and local leaders during
planning, implementation and monitoring and evaluation; and ii) be responsible to ensure liaison with other
communities located within the broader watershed unit. The CWT should have a meeting once every two weeks.
The CWTs are elected from the community and representing all households found or located in the micro
watersheds. The CBPWDG suggests that election should be conducted annually to allow different people to
become responsible for the program, check unnecessary leadership ambitions as well as to generate new ideas
for improving implementation.

Financial Management

14. The Bank Financial Management team conducted a Financial Management (FM) assessment of the
MoALR for the implementation of the project. The FM assessment was conducted in accordance with the World
Bank Financial Management Practices Manual issued on March 1, 2010 and Financial Management Policy, Bank
Policy and Bank Directive on Investment Project Financing (IPF) as well as the Financial Management Manual
for World Bank-Financed Investment Operations issued by the FM Sector Board, retrofitted on February 4, 2015.
The assessment also covered sampled implementing entities at the federal and regional levels as well as selected
Woredas.

15. The FM arrangements for the proposed project will be based on the existing FM systems and structures
established under SLMP II. The Federal PCU based at the MoALR will retain the overall fiduciary responsibility
for the implementation of the project supported by Regional Coordination Units in the six Regional BOA’s and
all the implementing woredas. Project annual budgets will be prepared based on consolidated annual work plans
initiated at the woreda and regional levels and compiled at the federal level. The lessons learnt under SLMP-II
include the need to reduce delays in preparation and approval of the budget, and weaknesses in the system of
budgetary control. Under RLLP, additional effort will be put in ensuring that the project budgeting systems are

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fully aligned with the GoE budget calendar resulting in early preparation and notification of budgets to regions
and woredas. Mechanisms for monitoring execution of the approved budget will also be strengthened using
acceptable computerized accounting software.

16. The proposed project will also retain the existing accounting system and capacity for SLMP II which has
been assessed as adequate. This capacity will however be enhanced through recruitment of a Senior Financial
Management Specialist at the federal level and deployment of accountants to fill the vacant positions all the
woredas implementing RLLP. Peach Tree accounting system or other acceptable computerized accounting
system will continue to be used at the Federal PCU and the regional level to ensure efficiency in transaction
processing and timeliness in financial reporting. Some of the weaknesses identified under SLMP-II were delayed
update of financial records at the woreda level and maintenance of a manual accounting system which is prone
to error. As a result, each woreda will install an acceptable computerized accounting system to facilitate
accurate and timely financial reporting at the end of each quarter. Since most woredas were noted to be using
the Government-implemented Integrated Budget and Expenditure (IBEX) system, this will be considered for use
under the project with additional configuration/customization. The FM manual will be finalized within one
month of project effectiveness and incorporated into the PIM, reflecting design and implementation
arrangements for the RLLP while addressing lessons learnt under SLMP-II.

17. Similarly, the proposed project will build on the internal control arrangements established under SLMP-
II, addressing the weaknesses noted at the regional and woreda levels, including weak internal audit oversight,
non-compliance with the established payment approval and authorization arrangements, weaknesses in control
of advances and failure to maintain up-to-date assets registers. Project resources will be ring-fenced from the
wider fiduciary risks in the implementing entities by ensuring segregated project accounts (Designated
Accounts), cashbooks and financial statements, operated, maintained and prepared by the PCUs at federal and
regional levels, and the Woreda Offices of Finance and Economic Development. Under Component 1, the
proposed project is expected to make small value decentralized payments at the community level, which carries
inherent high risk. The current practice is that beneficiaries sign daily attendance sheets administered by the
Bureau of Agriculture officials. At the end of the month, the attendance sheets are then compiled into payrolls
by the respective project accountants and used to make payment to the beneficiaries. Identification of
beneficiaries is based on name and signature as reflected in the attendance sheets and payroll. This system will
be strengthened by inclusion of the woreda identification number in both the attendance sheets as well as the
payroll. During payment, beneficiaries will be required to produce woreda identity cards for identification while
payments will be acknowledged by signature on the payroll.

18. Other measures that will be applied to strengthen internal controls over community-level payments
include discussion of SLM work plans and budgets at annual woreda budget meetings and ensuring that all
payments are duly supported by relevant documentary evidence including signed payment sheets and
certificate/confirmation of work completed. Fiduciary oversight arrangements will also be strengthened
through enhanced supervision of woredas by regional accountants at least once every quarter, regular risk-
based internal audit of the project by federal and regional auditors and bi-annual Bank FM supervision reviews.
Further, there will be independent confirmation (of works and payments) on a sample basis by the Offices of
Regional Auditor Generals (ORAGs) and other organizations in addition to annual external audit of project
activities at the end of the financial year. Under SLMP-II, internal audit oversight has been enhanced through
quarterly audit of sampled regions and woredas by the federal internal auditor and these arrangements will
continue under the proposed RLLP. In addition, the project will implement enhanced social accountability

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mechanisms including display of project information in public places and strengthening systems for reporting
grievances and complaints.

19. The project will prepare and submit quarterly unaudited Interim Financial reports (IFRs) in form and
content acceptable to the Bank. The quarterly IFRs will be submitted within 60 days after the close of the
quarter. The contents of the IFRs will, as a minimum, consist of the Statement of Sources and Uses of Funds,
Statement of Uses of Funds by Category, Statement of Cash Forecasts, Statement of Designated Account,
explanatory notes to the IFR and supplementary or supporting schedules. Disbursements will be based on the
quarterly IFRs submitted to the Bank together with six months’ cash forecasts. The quarterly IFRs will also be
used to monitor the financial performance of the project including progressive absorption of the approved
annual budget and the level of disbursement of the IDA Credit.

20. The project in coordination with the Office of Federal Auditor General (OFAG) will ensure selection of
the project auditor based on procedures set out in the PIM. The project will prepare annual financial statements
which will be submitted for external audit within 3 months after the financial year end. Annual audit of project
financial statements will be conducted in line with the International Standards on Auditing and the audit report
and management letter submitted to the Bank within 6 months after the financial year end. The audit report
will be disclosed to the public in line with the Bank Access to Information Policy which became effective on July
1, 2010. In addition, as part of the project financial audit, the project will have an interim audit conducted, and
will submit to the Bank an interim audit report on internal control/compliance weaknesses noted during the
course of the financial year. The Terms of Reference (TOR) for both interim as well as end-year audit will be
cleared by the Bank before commencement of audit. The project will ensure prompt action is taken on the
recommendations of external audit reports and management letters. Based on the above, the FM risk rating for
the implementation of the proposed project is considered Substantial.

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Table 1: FM Action Plan

Action Date due by Responsible

1 Revise the FM Manual to incorporate new developments and In PIM, one months after MoALR-RLLP
address weaknesses noted effectiveness Support unit
2 Streamline budget preparation process where government Ongoing MoALR-RLLP
budget calendar will be used to align project working budget Support unit
with the budget sent to MOFEC
3 Enhance internal control over advances, fixed assets and On going MoALR-RLLP
payments. Strengthen internal audit oversight Support unit
4 Staffing, Training & Support to Regions &Woredas: MoALR and
1. Recruitment of (a) a Senior FM Specialist for Federal PCU and 1. (a) before effectiveness, BoA and
(b) deployment of accountants in all Woredas; and (b) before Woredas
2. Conduct planned support & supervision visits to regions and disbursements to woredas
Woredas including by providing feedback to the visited 2. Quarterly
entities; 3 (a) Initial training within 2
3. Regular training to strengthen staff capacity-Training on months after approval of
project accounting in general (FM manual), budget analysis, FM manual by Bank.
IFR preparation, preparing bank reconciliation, accounting 3 (b) Subsequent training
software, etc.to be offered Woreda accountants ongoing at least once a year
5 Audit issues 1. Based on procedures 1 to 5-
1. Recruitment of external Auditors at early stages of the set out in PIM MOALR-RLLP
project; 2. Within 3 months of Support unit
2. Project annual financial statements will be prepared on time year end, as specified
and strict follow up on timely closure of accounts will be in PIM
made. 3. within 6 months of the
3. Submission of annual audited financial statements and audit end of each fiscal
report including the management letter; year, as specified in
4. Submitting interim audit report on internal PIM;
control/compliance weaknesses noted during the midyear 4. within 90 days of the
5. MoALR will submit the Government’s response to the 2nd quarter end date
findings in the annual audit report to Bank and an action (January 7), as
plan for any follow-up actions. specified in PIM.
6. Disclosure-In accordance with Bank Policy, 5. within 2 months of 6 a. MoALR
(a) the Bank requires that the borrower disclose the submission of the or MoFEC
audited financial statements in a manner acceptable to audit report to the
the Bank; Bank, as specified in 6b. WB
(b) following the Bank’s formal receipt of these statements PIM
from the borrower, the Bank makes them available to 6. Annually, as specified
the public in accordance with The World Bank Policy on in PIM
Access to Information.
6 Disbursement Before initial MoALR
Open US$ DA and segregated local currency project accounts at disbursements /MoFEC
federal, regional and woreda levels

7 IFR Formats and audit ToRs agreed Agreed during negotiation MoALR/WB
of IDA financing

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Figure 1: Funds Flow Arrangements

IDA Trust Fund

MOFEC Pooled Designated account (US$) at NBE under MOA

Pooled Project Account (Birr) at MOA

Project accounts at BoAs (Birr)

Project accounts at WoFEDs (Birr)

Document flow/instruction

Funds flow

Disbursements

21. For purposes of disbursements, the project will open a pooled US$ Designated Account at the federal
level alongside a project account denominated in local currency in the National Bank of Ethiopia. Each of the
federal level-implementing entities, the six regions and all woredas will maintain segregated local currency bank
accounts in a commercial bank acceptable to IDA, where project funds will be deposited and from which
payments will be made. Proceeds of the IDA Credit will initially flow into the Designated Account before further
disbursement into each of the local currency project accounts based on the approved annual work plan and
budget (see Figure 1 above). The project will follow the advance/report-based disbursement method. An initial
advance will be made to the Designated Account upon submission of a Withdrawal Application (WA)

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accompanied by a six-months cash forecast. Subsequent disbursements will be based on the quarterly IFRs
submitted to the Bank within 60 days after the end of the quarter. In addition to receiving advances through
the Designated Account, the project may use other disbursement methods such as reimbursements, direct
payment and special commitment. In order to enhance the level of disbursements under the new project, the
team will ensure prompt submission of quarterly IFRs immediately after the end of each quarter. Once reviewed
and cleared by the Bank, the project will also ensure timely submission of WA’s to the Bank through client
connection. Detailed disbursements arrangements are contained in the Disbursement and Financial Information
Letter (DFIL).

Procurement

Applicable Procurement Regulations

22. Procurement under the project will be carried out in accordance with the World Bank’s Procurement
Regulations for IPF Borrowers - Procurement in Investment Project Financing, Goods, Works, Non-Consulting,
and Consulting Services’, dated July 1, 2016 and revised November 2017; ‘Guidelines on Preventing and
Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants’, revised as of
July 1, 2016; and the provisions stipulated in the Legal Agreement. Use of Alternative Procurement
Arrangements (APA) was not considered as there is no confirmed cofinancing by other multilateral or bilateral
organizations and the procurement rules and procedures of the implementing agencies are not adequate for
international procurement procedures.

23. When approaching the national market, as agreed in the Procurement Plan, the country’s own
procurement procedures may be used. Requirements for national open competitive procurement include the
following:

a) open advertising of the procurement opportunity at the national level;

b) the procurement is open to eligible firms from any country;
c) the request for bids/request for proposals document shall require that Bidders/Proposers submitting
Bids/Proposals present a signed acceptance at the time of bidding, to be incorporated in any resulting
contracts, confirming application of, and compliance with, the Bank’s Anti-Corruption Guidelines, including
without limitation the Bank’s right to sanction and the Bank’s inspection and audit rights;
d) contracts with an appropriate allocation of responsibilities, risks, and liabilities;
e) publication of contract award information;
f) rights for the Bank to review procurement documentation and activities;
g) an effective complaints mechanism; and
h) maintenance of records of the Procurement Process.

24. Standard Procurement Documents issued by the World Bank to be used by borrowers for IPF-financed
projects which include the General Procurement Notice, Specific Procurement Notice, Request for Expression
of Interest, Request for Proposals, and Request for Bids documents, will be used for works, goods, consulting,
and non-consulting services to be procured through international competitive procurement. For Procurement
involving national competitive Procurement, the Borrower may use its own Procurement Documents,
acceptable to the Bank, with the addition of the Bank requirements for national bidding.

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25. Other national procurement arrangements (other than national open competitive procurement) that
may be applied by the borrower (such as limited/restricted competitive bidding, request for
quotation/shopping, direct contracting), shall be consistent with the World Bank’s core procurement principles
and ensure that the World Bank’s Anticorruption Guidelines and Sanctions Framework and contractual remedies
set out in its Legal Agreement apply. The Bank’s procurement regulations applicable to the project are guided
by the core procurement principles of value for money, economy, integrity, fit for purpose, efficiency,
transparency, and fairness.

26. The Borrower’s procedure is accepted for “national” and “other national procurement arrangements”
except for the application of reservation and preference schemes for MSEs established by public bodies by
registering job-seeker youth groups as it reduces the participation of non-MSE individuals/firms of similar size
and capacity.

27. As per the requirements of the Regulations, a PPSD has been prepared by the MoALR, which includes a
Procurement Plan for the first 18 months of the project life. The procurement plan is prepared based on the
PPSD and sets out the selection methods to be followed by the Borrower during project implementation in the
procurement of goods, works, non-consulting and consulting services financed by the Bank. The Procurement
Plan will be updated at least annually or as required to reflect the actual project implementation needs and
improvements in institutional capacity.

28. Systematic Tracking of Exchanges in Procurement (STEP). The project will implement STEP, a World
Bank planning and tracking system, which will provide data on procurement activities, and establish
benchmarks. The details of the procurement activities in the 18-month procurement plan will be transferred to
the STEP system.

29. Procurable Items under the project will include works, goods and non-consulting services and
consultancy services. Procurement of Goods under this project will include but is not limited to vehicles and
motor bicycles with field kits, office equipment, plotters and scanners, land administration materials (GPS,
augur, clinometer, leveling instruments), tablet computers, server computer workstations, computers with UPS,
farm tools, gabion boxes, land certification materials, water pump and generators, office furniture, office
supplies (stationary, maintenance and tire and inner tube), livestock, beehives, improved seeds, fruit seeds and
seedlings, forest seeds, limestone for acidic soil, and community driven materials (stone, sand, fence materials,
etc.). Procurement of works under this project will include but is not limited to small scale constructions and
infrastructures, construction of water harvesting structures, construction and rehabilitation of community
access roads, gully treatment, etc. Procurement of Consulting Services under this project will include but is not
limited to use of consultant services for training, technical assistance, and other capacity-building activities, PCU
Staff, baseline study consultancy services for new woredas, small consultancy services (financial audit,
procurement audit and others), and individual technical assistance at various levels of project implementation
and advisory services to be provided by firms in various aspects of the project as described in the Project
Procurement Plan; Procurement of Non-Consulting Services under this project will include but is not limited to
Ortho-photo production, satellite imagery and its quality control mechanism, transportation of goods and
equipment, public sensitization via mass-media, etc.

30. Goods and works required under Community demand driven initiatives may be procured by shopping
and or other methods under Community Participation as will be detailed in the Project Implementation Manual.

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Implementation Arrangements

31. Federal Implementing Agencies: The MoALR is the lead and focal procurement implementing agency
of the project. The Bureaus of Agriculture and/or Pastoral Development Agencies and the Woreda Agricultural
Development Offices in the six regions (Amhara, Tigray, Oromiya, SNNP, Gambela and Benshangul Gumuz
National Regional States) are also the procurement implementing agencies of the project in the respective
regions and woredas and are responsible to implement the procurement activities allocated to them in the
consolidated procurement plan. MoALR and BoANRs will have Federal and Regional PCUs respectively to
coordinate their respective procurement activities.

32. While, as a lead agency, the primary responsibility for the successful implementation of the project will
rest on MOALR, the support and close involvement of the regional and woreda level implementing agencies is
also crucial. Each implementing agency will prepare its own procurement plan, to be updated in line with annual
work plans. The MoALR shall aggregate and consolidate the annually-updated procurement plans of all
implementing agencies and identify which level of administration is best placed to conduct which procurement.
MoALR in addition to its own procurement shall aggregate and procure strategic and specialized procurements,
such as major and common-user consultancy services, vehicles and other equipment on behalf of other
implementing agencies. After aggregation and consolidation, open international and national competitive
procurement shall be conducted by MoALR. Open national competitive procurement may be carried out by
regional implementing agencies. Woreda level implementing agencies may conduct procurement based on
Request for Quotations/Shopping and Consultant’s Qualification-based Selection for small consultancy services
assignments. Limited/Restricted and Direct Selection Procurements (in special circumstances as per approved
procurement plans, eg. for one-off and unforeseen type of both very low value and low risk procurement items)
may be carried out at all levels.

33. At regional level, the finance, procurement and property administration process units of Regional
Agricultural and Natural Resource Bureaus aggregate annual procurement plans after collecting annual
procurement requirements from themselves and all woredas in their respective regions. At woreda level, the
finance, procurement and property administration process units of the Woreda Offices of Finance and Economic
Development aggregate annual procurement plans after collecting annual procurement requirements from the
sector offices.

34. Considering the capacity limitations of the implementing agencies, establishment of PCUs at federal and
regional levels is considered mandatory for the proper execution of the project. However, the procurement
activities of the project at federal, regional and woreda levels will be implemented within the existing structure
of the procurement function of each implementing agency. The role of the PCUs is to assist, support, participate,
coordinate and build the capacity of the procurement units of the implementing agencies. The procurement
and contract management specialists assigned in each PCU shall work under the supervision of the heads of the
respective procurement units and the project implementation unit coordinators on their day to day
procurement functions. The mobile procurement specialists at regional level will also support and coordinate
all the procurement activities at woreda levels to smoothly implement the project procurement rules and
regulations in harmony. The procurement and contract management specialists will be responsible to train and
build the capacity of the procurement and contract management officers within the procurement functions of
their respective implementing agencies.

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Procurement Capacity Assessment

35. RLLP utilizes the same implementing agencies and structure as SLMP-II except for the new 17 woredas.
Hence, the Procurement Capacity Assessment of the existing implementing agencies (MoALR, BoANRs and 135
woredas) was based on assessment of existing progress and audit reports. The Procurement Capacity
Assessment (PCA) for the 17 new woredas included physical visits and assessments on sample basis. The
procurement capacity and risk assessment for the proposed Program at woreda level has been carried out for
two woredas in each of SNNP, Amhara and, Oromia Regions and one woreda in each of Tigray, Benishangul
Gumuz and Gambella Regions. The procurement capacity and risk assessment includes applicable procurement
systems, proclamations, directives, rules, manuals and procedures, procurement processing, complaint
handling and oversight mechanisms at the program implementing agencies. The PCA was carried out in April
and May 2018 including field visits to the sampled woredas conducted between 25th April and 7th May, 2018
by three Procurement Specialists of the Bank.

36. Under SLMP-II most planned procurements were completed, even if some delays were recorded. All
stakeholders of the project have made significant efforts for timely completion of planned procurement
activities. Procurement of essential goods and equipment, for instance vehicles, motorcycles, field equipment,
office equipment and furniture, software and other accessories for all implementing agencies were carried out
and strengthened project management. A number of consultancy service procurements were conducted to
support the project.

37. It has been noted that the procurement capacity of the implementing agencies is still limited even
though improvement has been shown in SLMP-II, particularly regarding procurement processes for ICB
contracts. For example, the procurement of vehicles under SLMP-II was substantially delayed, demonstrating
that timely initiation of major procurement for ICB goods contracts is crucial to use these goods for the project’s
intended purposes. In addition to this, organized procurement capacity building training for all implementing
agencies is necessary to have effective and efficient procurement transaction at all levels during project
implementation. It has been noted that no adequate procurement capacity building training was given for
procurement specialists who were working under SLMP-II. In SLMP-II, the mission noted some procurement
management challenges, which include: lack of procurement specialists at the woreda and two regional levels,
high staff turnover due to low salary and benefit packages. Further, there is inadequate involvement of
procurement staff and units of the implementing agencies and inadequate involvement of relevant technical
and experienced staff in bid evaluations. Among other things, lack of timeliness and timely approval of
procurement documents by the endorsing committee of the agencies has been a concern – a sense of ownership
of the project is a critical issue to be resolved in RLLP. The Independent Procurement Audit conducted in 2017
for the period from 1st October 2013 up to 31st December 2016, revealed that there were still serious
shortcomings in the procurement activities carried out by the implementing agencies at all levels, i.e., federal,
regional and woreda.

38. A summary of the risks to procurement under RLLP, as well as the proposed procurement capacity-
enhancement measures to mitigate the risks, is presented in the Table 2.

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Table 2: Summary of Procurement Assessment Findings and Actions (Risk Mitigation Matrix)

No. Major findings/issues Actions proposed Resp. Targeted date

1. Inadequate market price study, analysis and (i) As part of the PIM, a comprehensive (i) (i) MoALR (i) Within one
updating system, Incomplete procurement step-by-step procurement month of project
plans, Incomplete evaluation criteria in the implementation manual shall be prepared effectiveness
bidding documents; rejecting majority of for use of staff. The procurement
bidders in bid evaluation without confirming operations manual should include
that the deviations were material, changing measures to address all the
the payment modality significantly at award, shortcomings/issues identified. The
awarding contracts beyond bid validity manual should also include Procurement
period, poor contract management practice and contract management reporting
(not confirming final delivery and acceptance format, the need for quarterly
of goods), not awarding contracts to the procurement and contract management
lowest evaluated bidder, conducting direct reporting, provision not to exclude non-
procurement without sound justification, MSE (Micro and Small Enterprise)
awarding contracts to SOEs without individuals/firms from competition,
confirming eligibility, incomplete bid provision to avoid any form of exclusion
evaluations, awarding a contract to a bidder of bidders from competition through
whose name was not in the invited list, bracketing based on engineer’s estimate
incomplete bidding documents, not and average bid prices. The Procurement
following approved procurement plans, Implementation Manual should outline
issuing variations without adequate the procedures and circumstances under
justifications, rejecting bidders for not falling which community participation in
within a given range of weighted average of procurement is feasible.
estimated pre-tender price and average bid
prices, and poor procurement record system. (ii) Provide intensive procurement and (ii) MoALR/ (ii) At project
contract management training (goods, WB start-up and as
works, consultancy and non-consultancy required
services) to procurement and contract thereafter.
management staff, procurement
endorsing committee members and User
Section Staff
2. Lack of office supplies/equipment, All the implementing agencies should MoALR Included in
procurement data management system and secure adequate office project
procurement record facilities supplies/equipment and procurement procurement
record space and system. The plan
procurement and contract management
specialists will be provided with laptop
computer, desktop computer, printer and
scanner, office telephone and mobile
card including required office furniture
and facilities. WiFi, CDMA and broadband
internet access is necessary as the
procurement and contract management
specialists use STEP for each procurement
activity which very much requires
internet access.

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No. Major findings/issues Actions proposed Resp. Targeted date

3. The number, qualification and experience of (a) Two Procurement and Contract MoALR (a) as a condition
procurement and contract management staff Management Specialists at federal level of project
was not considered adequate. A high staff (MoALR) and (b) one Procurement and effectiveness and
turnover due to low payment. Contract Management Specialist at (b) within three
regional level (each BoANR) and one months of
mobile Procurement and Contract project
Management Specialist to be stationed at effectiveness
regional level (each BoANR) to assist and
build the capacity of the respective
Woreda implementing agencies. The
Specialists shall be selected following the
WB Individual Consultant Selection (ICS)
procedures with competitive market
rates. The Specialists should have
adequate qualification and experience on
public procurement in general and WB
procurement procedures.
4. Lack of Independent internal and external • Internal audit units should be MoALR/ At least Annually
procurement audit System strengthened to conduct WB
procurement audit
• The Bank will conduct PPR by its own
and/or the project will finance for
the Bank to use Auditor Generals or
for the Borrower to engage
Independent Procurement Audit
Consultant.
5. Risk of Fraud and Corruption: The Government commits to use the MoALR PIM to be
Bank’s debarment list to ensure that finalized within
persons or entities debarred or one month of
suspended by the Bank are not awarded a project
contract under the project during the effectiveness.
period of such debarment or suspension.
The Procurement Manual should state
that all bidding documents should include
provision that all Bank debarred and
suspended firms are not eligible for
award of Bank financed contracts.
6. Regional Governments issue ad-hoc Non-MSE Individuals/firms of similar MoALR/ Entire project
directives to reserve procurements of all capital and capacity who didn’t initially All imp. period.
categories (works including bridge works, get registered as job seeker and got their agencies
goods and consultancy services) up to a first job by their own means should not
substantial threshold (US$ 350,000 in the be excluded from competition
case of works for Amhara Region) for Youth
groups called “MSEs” that are registered by
the concerned public bodies as jobless.
Governments lack a harmonized procedure
to register, follow up, monitor and graduate
the MSEs from the reservation schemes

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Procurement Oversight and Monitoring Arrangements

39. The World Bank exercises its procurement oversight through a risk-based approach comprising prior
and post reviews, and independent review as appropriate. The World Bank sets mandatory thresholds for prior
review for the proposed project based on procurement risk levels of the project. Based on the risk rating at
appraisal of the project, the World Bank agreed with the Borrower that procurement above the applicable
thresholds as provided in the table below shall be subject to prior review. Such procurements shall use the
World Bank’s Standard Procurement Documents. The World Bank shall carry out post-reviews of procurement
processes undertaken by the Borrower to determine whether they comply with the requirements of the Legal
Agreement. The Bank may use a third party such as a supreme audit institution, acceptable to the Bank, to carry
out post reviews. Any such third party shall carryout the reviews in accordance with the terms of reference
(TOR) provided to it by the Bank. Alternatively, the Bank may require the Government to select and appoint a
procurement auditor, acceptable to IDA, to carry out annual independent procurement audits of the project
and shall submit the report to IDA annually, six months after the end of the fiscal year for its consideration.

40. Based on the initial risk rating, which is high, the prior review thresholds are provided in the table below.
The prior review thresholds will be updated based on risk levels to be updated from time to time.

Category Prior Review Thresholds

(US$, millions)
Works ≥ 5.0

Goods, IT, and non-consulting services ≥ 1.5

Consultants (Firms) ≥ 0.5

Individual Consultants ≥ 0.2

41. As an exception, an activity/contract below the applicable mandatory thresholds shall be subject to
prior review if the Bank determines that the activity/contract has risks such as procurement arrangements that
are inherently risky, such as procurement that includes the use of negotiations in a competitive procurement
process for Goods, Works and Non-Consulting Services, BAFO, Competitive Dialogue, and the application of
sustainable procurement. Furthermore, the TORs for post review consultancy services shall be cleared by the
Bank. If the assessed activity/contract level risk is low or moderate, the Bank may determine that procurement
above the applicable thresholds shall be subject to post review, and be included in the Procurement Plan.

42. All contracts at or above the mandatory procurement prior review thresholds are subject to
international advertising and the use of the Bank’s SBDs (or other documents agreed with the Bank).

43. Dated covenant: A procurement manual as part of the PIM shall be prepared and submitted to the
Bank within one month of project effectiveness.

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Procurement Arrangements

44. The procurement arrangements for the high or substantial risk and relatively high value contracts of the
project are provided in the table below.

Contract Title, description and category Estimated cost Bank Procurement Selection Evaluation methods
US$ and risk oversight approaches/ methods
rating competition

Office equipment (Lot 1-computers, Tablet 3,322,172 Prior Open Request for Most Advantageous Bid
computers, Server, workstation computer (high) International Bids (Lowest Evaluated Cost (LEC))
with UPS; Lot 2- printers, photocopy
machines scanners; Lot 3: (smart phones)

Vehicles and motor bicycles 3,135,767 Prior Open Request for Most Advantageous Bid
(high) International Bids (Lowest Evaluated Cost (LEC))

Land Administration Materials (total 344,198 Post Open National Request for Most Advantageous Bid
station, GPS, Clinometers, Auger, Plotters) (substantial) Bids (Lowest Evaluated Cost (LEC))

Acidic soil treatment materials and lime 305,716 Post Open National Request for Most Advantageous Bid
(substantial) Bids (Lowest Evaluated Cost (LEC))

Office furniture (Tables, Chairs, etc.) for 409,297 Post Open National Request for Most Advantageous Bid
NPSU, RPSU and Woredas (substantial) Bids (Lowest Evaluated Cost (LEC))

Stationary for NPSU, RPSU and Woredas 483,570 Post Open National Request for Most Advantageous Bid
(substantial) Bids (Lowest Evaluated Cost (LEC))

Forest, vegetables and fruit seed 756,605 Post Open Request for Most Advantageous Bid
(substantial) National/Direct Bids/Direct (Lowest Evaluated Cost
Selection Selection (LEC))/Direct Selection

Agricultural hand tools 873,855 Post CDD CDD CDD

(substantial)

Water pumps 685,740 Post Open National Request for Most Advantageous Bid
(substantial) Bids (Lowest Evaluated Cost (LEC))

Land certification materials 529,500 Post Open National Request for Most Advantageous Bid
(substantial) Bids (Lowest Evaluated Cost (LEC))

Nursery tools (Hand tools) 414,642 Post CDD CDD CDD

(substantial)

Tire and inner tube for vehicles 285,200 Post Open National Request for Most Advantageous Bid
(substantial) Bids (Lowest Evaluated Cost (LEC))

Gabion for terracing 892,423 Post Open National Request for Most Advantageous Bid
(substantial) Bids (Lowest Evaluated Cost (LEC))

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Contract Title, description and category Estimated cost Bank Procurement Selection Evaluation methods
US$ and risk oversight approaches/ methods
rating competition

Livestock (Chicken, bee, cattle) 544,430 Post CDD CDD CDD

(substantial)

Aerial photo, Ortho-photo production and 886,430 Post Direct Direct Selection Direct Selection
satellite imagery (substantial) Selection

Water harvesting and community access 1,700,000 Post CDD CDD CDD
road (Roof water harvesting, Shallow well, (substantial)
rope and washer, household pond, spring
for development and lifting water with
pump) (in different watersheds)

Knowledge management and best practice 500,000 (high) Prior Open QCBS Most Advantageous Proposal
consultancy service International (Rated criteria (VfM))

Biophysical Impact Evaluation Services by 1,000,000 Prior Direct Direct Selection Direct Selection
WLRC (high) Selection

CSA Impact Evaluation Services by CGIAR 1,000,000 Prior Direct Direct Selection Direct Selection
(high) Selection

Impact Evaluation Synergies and Policy 200,000 (high) Prior Direct Direct Selection Direct Selection
Recommendation Services by EDRI Selection

Financial Audit for 5 years 5 times 95,000 Post Open National CQS CQS
(substantial)

Independent Procurement Audit 150,000 Post Open National CQS CQS

(substantial)

Publication and public sensitization for 450,000 Post Open National Request for Lowest Evaluated Cost (LEC)
project areas-A number of individual (substantial) /Limited Bids/Request
procurements for Quotations

Individual consultant for project 8,372,835 Post Open ICS ICS

management services - A number of (substantial)
individual consultancy service
procurements

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Environmental and Social (including safeguards)

45. Safeguards Management Approach: The RLLP will build on the Environmental and Social Safeguards
wealth of technical, operational, institutional experience and lessons learnt through the implementation of the
GoE’s SLM Program, including the Bank-financed SLMP-I and SLMP-II. RLLP implementation will be centered in
the MoALR which will be responsible for project implementation at federal, regional, zone, woreda (district),
and kebele (sub-district), as shown in Figure 2 below. These entities and their staff are generally capacitated
and ready to implement in the existing 135 SLMP-II woredas in Oromia, Amhara, SNNP, Tigray, Benishangul
Gumuz and Gambella regional states. The new 17 woredas will require a start-up period of capacity building
and mobilization of community institutional capacity to implement safeguards. The project at the federal and
regional levels will have an Environmental officer and Social Development & Safeguards officer who will
coordinate and follow-up with the preparation of the required site-specific safeguards instruments, monitor
safeguards due diligence and quarterly report during implementation.

46. National Project Coordination Unit (NPCU): will retain/recruit one Environmental and one Social
Development (Social Safeguards and Gender) Specialists at the national level. The environmental and the social
safeguard specialists will work closely with regional safeguard specialists, zonal and woreda focal persons. They
will assist in (i) monitoring the effective implementation of the Environmental and Social Management
Framework (ESMF), Social Assessment (including the Social Development Plan), the Resettlement Policy
Framework and the Gender Action Plan, (ii) provide the required technical backstopping, review subproject and
activity plan, design, cost, and baseline documents to ensure environmental factors and mitigations, (iii)
prepare monthly and annual work plans, collect and consolidate progress report and quarterly submit to the
World Bank and other development partners.

47. Regional Project Coordination Unit (RPCU): the RPCU will maintain/recruit one environmental and one
social safeguard (Social Safeguards and Gender) specialists to (i) monitor implementation of the ESMF, RPF, SA
and gender action plan; (ii) conduct capacity building on environmental and social safeguards aspects of
subproject preparation, review and approval; (iii) closely work with the regional infrastructure specialists of the
region during the planning and construction phase to avoid the late occurrence of impacts on the environment
and the community; (vi) collect the performance of safeguard activities from the woreda; and (v) review and
submit a consolidated plan to the NPCU.

48. Zonal Safeguards Focal Person: the RLLP at zonal level is led by a steering committee. The safeguards
focal person at the zonal level is responsible for the overall coordination and monitoring of the environmental
and social safeguard activities at woreda level. He/she will compile and consolidate quarter and annual reports
submitted by the woredas.

49. Woreda Safeguards Focal Person: The woreda safeguards focal person is responsible for coordinating
the different stakeholders in the planning and implementation of the RLLP activities at woreda, kebele and
community level. He/she supports kebele Development Agents in the identification and screening of
subprojects. He/she will follow the implementation of mitigation measures that are planned in the ESMP.

50. Kebele level implementation: identification and initial environmental and social screening of
subprojects of RLLP starts from community and kebele level. The KWT and CWT at kebele and community level,
respectively are responsible to follow up and monitor the implementation of the Environmental and Social

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Management Framework, SA, RPF and the gender action plan.

Figure 2: Environmental and Social (including Safeguards) Management Arrangements

MoALR The WB

Environmental National Project Coordination Unit (NPCU)

Social & Gender Safeguard
Safeguard Specialist
Specialist

Regional Project Coordination Unit (RPCU)

Environmental Social & Gender Safeguard
Safeguard Specialist Specialist

Zonal Focal Person of the PCU

Woreda Focal Person

DAs, KWT and CWT

Monitoring and Evaluation

51. The institutional arrangements for M&E will encompass six levels that are well aligned with the RLLP
institutional and implementation arrangement.

52. Federal Level. Federal level sets the expectations for what is to be accomplished in M&E and oversees
that capacity, ensuring skills and tools are available for staff in the regions and at field level. Federal level M&E
staff ensure that data collected meet quality standards, review aggregated field data to analyze and pull out
program level results and trends and identify best practices important for scale up. The federal level M&E staff
prepare reports to the government and donors and provide feedback to stakeholders. The Federal M&E team
will include: a Senior M&E/Evaluator, a Senior Data Analyst/MIS Specialist, a Senior Communication/ Knowledge
Management Specialist, and a Documentation/Planning and Reporting Specialist. The team will also provide:
technical assistance to develop a new Results-Based M&E (RBME) plan, manual and indicator protocols; TA
support in M&E Training (various topics including advanced excel, data analysis and reporting, and evaluation
practice); a functional web-based data management system (in English and local languages), which will help to
aggregate mobile application data and collect geo spatial data.

53. Regional Level. The M&E team of the Regional PCU leads rollout of the M&E system to the field, builds
skills and capacity in regional and field level stakeholders; ensures that data collected meet quality standards;
aggregates field data to analyze and pull out regional levels results and trends and identify best practices
important for scale up; prepares reports to the government and donors and provides feedback to stakeholders.
The regional team will include a M&E Specialist and a Communication/Knowledge Manager/Spatial Analyst. The

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team will also support: special studies in the region, involve regional officers in Joint Monitoring Missions (JMM),
improved data management system in English and local languages, and incentives for good regional
performance, TA for training using TOT approach.

54. Zonal Level. RLLP will strengthen the functionality of the zonal government structures/offices, mainly
the Agriculture and Natural Resources Office. The project will provide a budget allocation at the zonal level to
provide staff to support regional technical capacity and mentoring, and to conduct data quality assessments,
provide clear guidance on what and how to collect data, provide ongoing M&E training and capacity building in
M&E.

55. Woreda Level. Watershed needs are identified, annual work plans and budget are completed, making
sure that activities get rolled out on time. The woreda team includes the NRM process owner and technical
expert, who receive data from the DAs and aggregate results to determine if activity implementation is occurring
at the right scale. They prepare reports based on results achieved. Woreda officers are supported by regional
and Federal M&E staff (particularly in completing reports).

56. Kebele Level. Development Agents (DAs) play a significant role at kebele level. Clear guidance is needed
for DAs on what and how to collect data (strengthen data collection methods), to strengthen ongoing M&E
training and capacity building, and to provide educational opportunities/exchange visits to DAs assigned to
follow-up project activities to help motivate them and reduce frequent turnover.

57. Community Level. There are several levels of community members who are involved in M&E, but the
CFs is the main project interlocuter—the Foremen/Forewomen, nursery operators and self-help group leaders
collect data and pass it to the CF, who also collects additional household level data. The CF aggregates data and
passes it to the CWT. The CF is a member of CWT and serves as a secretary. The CWT reviews and approve the
data and inform the CF to send it to the concerned DA in the respective kebele. The DA presents the data to the
KWT for review and approval, and finally sends the approved data to the woreda office.

Role of Partners (if applicable)

58. IDA resources provided through RLLP will be blended with grants from bilateral agencies through a
MDTF. The Government of Norway has committed to extend the same level of support it provided to SLMP-II
through a contribution to the MDTF for RLLP. The Government of Canada has also expressed an interest in
contributing in 2019. While the Government of Norway has provided a letter of commitment for the Trust Fund
resources indicated, there remains a low risk that this co-financing may not be agreed. In this case it would be
necessary to: (i) reduce the number of new watersheds selected for SLWM interventions from 17 to 14, and
correspondingly reduce the target values to be achieved against PDO-level results indicators 1, 1a and 4 by 2
percent, 1 percent and 3 percent, respectively; and (ii) reduce the number of SLLCs and communal land
certificates to be issued, as well as the number of locations in which support is provided for land-use planning
and the rollout of the NRLAIS, although these changes would not affect the target values of the PDO-level results
indicators.

59. At the Government of Ethiopia’s request, the World Bank is preparing proposals for additional
financing to RLLP from (i) the Green Climate Fund (GCF), with a proposal submitted for consideration by the GCF
Board meeting to be held in October 2018, and (ii) the GEF, to be financed from Ethiopia’s GEF-7 allocation.

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Beyond this co-financing and additional financing, the use of resources under RLLP will also be coordinated with
parallel financing to the SLM Program provided by the Government of Germany (through both GIZ and KfW
Development Bank), as well as parallel financing for land administration and certification from a variety of
sources, notably DFID LIFT, the Government of Finland REILA, and the Government of Germany (for land use
planning).

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ANNEX 3: IMPLEMENTATION SUPPORT PLAN

COUNTRY : Ethiopia
Ethiopia Resilient Landscapes and Livelihoods Project

Strategy and approach for implementation support

1. Effective support to the Federal PCU is critical for efficient and effective implementation of RLLP.
Collaboration with other key stakeholders is also important, including development partners supporting the
SLMP (in particular Norway, Canada, GIZ, DFID, REILA), and research institutions (such as WLRC, EDRI, and CGIAR
institutions). During RLLP preparation, effective participatory collaboration among all these stakeholders was
successfully carried out, which enriched the design of RLLP. The same collaborative approach will be adopted
and further strengthened during RLLP implementation.

2. The main areas of focus and skills requirements for implementation support to be provided by or
through the Bank are as summarized in Table 3.1.

Table 3.1. Main areas of focus and skills requirements for implementation support
Time Focus Skills needed Partner role
First 12 • Initiating critical procurements A variety of technical Participation in meetings
months • Strengthening M&E and reporting skills such as land use for improved
systems administration, CSA, development partner and
• Strengthening FM systems hydromet, water sectoral coordination
• Mainstreaming hydromet activities resource management,
• CSA biodiversity
• Livelihood and community development conservation, land
• Spatial planning and coordination with management,
other stakeholders Safeguards,
• Systematic ToTs Communication,
• Communication and outreach procurement, and FM.
• Grievance Redress Mechanism
13–60 • Continuing critical procurements Same as above, including Participation in meetings
months • Maintaining M&E and reporting systems knowledge management for improved
• Continuing coordination with development partner and
stakeholders sectoral coordination
• FM, procurement
• CSA
• Hydromet
• Safeguards and GRM
• Livelihood and community development
• Land use administration
• Systematic training programs
• Communication, Knowledge generation
and dissemination
• Project reporting

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Implementation support plan

3. Implementation support missions will be carried out twice a year with the Bank, GoE, and development
partners during the life of the project. A Midterm Review will be carried out to assess the project progress,
achievement of the key indicators, risks and mitigation measures, and relevance of activities. MoALR will
undertake an independent evaluation at the midterm and at closing. Implementation support funds for the Bank
team are, and will continue to be, provided by IDA and the MDTF.

4. Table 3.2 shows the estimated input requirements for key personnel to carry out implementation
support for the program.

Table 3.2. Main areas of focus and skills requirements for RLLP implementation support
Number of
Number of
Skills needed staff weeks Comments
trips
per year
Team lead (1) 10 Local trips TTL - International staff Ethiopia CO
Land administration specialist 10 2/year International staff in Bank HQ
Land administration specialist 10 2/year International staff in Ethiopia CO
Natural resource management specialist 10 2/year International consultant
Agriculture specialist 6 2/year International consultant
IGA and Value Chain Specialist 20 Local Trips International consultant in Ethiopia CO
Land-use planning expert 20 Local trips National short-term consultant
Environmental specialist 20 Local trips National staff
Natural resource management specialist 20 Local trips National short-term consultant
Social development specialist 6 Local trips National staff
Environmental safeguards specialist 6 Local trips National staff
Operations specialist 8 2/year National short-term consultant
M&E specialist 10 Local trips International consultant in Ethiopia CO
Procurement specialist 6 Local trips National staff
FM specialist 6 2/year International staff
Communication specialist 6 2/year International staff/consultant
Communication and KM specialist 10 2/year National short-term consultant
Team assistance 10 Local trips National staff

5. It is planned that a significant part of the expertise required can be mobilized locally in the country
office, including team leadership. An international mission-based approach will not suffice to respond to
coordination and implementation issues adequately and in a timely manner. Therefore, a significant part of the
task team is decentralized and this will continue to enhance implementation support. Fiduciary and safeguards
support is also provided at the country office. In addition to missions and on-call support, the task team regularly
holds proactive monthly or quarterly implementation support meetings, including with team members/experts
based outside of Ethiopia connected by audio/video connection. This approach has proven to be effective in
other projects and programs in Ethiopia and in other countries.

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Annex 4: Economic and Financial Analysis

Background

1. The project will support households in 152 watersheds located in the Ethiopian highlands. The watersheds
are located in 6 different regions. This includes 17 newly identified watersheds, continuing support for 90
watersheds initiated under SLMP-II, and 45 graduating watersheds supported under SLMP-I. The new
watersheds were selected using a comprehensive selection criteria which took into account existing levels of
degradation and the share of the watershed in need of sustainable land management interventions. The
graduated watersheds from SLMP were included to ensure that they receive the necessary support to continue
capturing the gradual build-up of benefits and avoid falling back into degradation.

2. Without project intervention, beneficiaries both in the area and downstream will continue to struggle to
establish or maintain their livelihoods. The watersheds have a mixture of both cropland and non-cropland uses
with the total area to be treated within the 152-watershed project area estimated at 430,000 ha. The number
of beneficiaries includes the entire population in these watersheds and is estimated as 3.2 million or 640,000
households with an average of 5 persons per household. It is expected that without the project, land use will
continue on its current path. Continued soil erosion, water insecurity, and land insecurity leads to land
degradation with direct losses to those that rely on crop and livestock production as well as related industries
for their livelihood. Production yields will go down or farmers will have to increase their input costs, such as
fertilizer, to maintain current yields. In the absence of storage facilities, farmers will continue to experience
post-harvest losses. They will also be unable to capture higher crop prices that are obtainable a few months
after harvest and in larger markets. Non-agricultural land in the watershed will also continue to deteriorate
without the project due to soil erosion as well as overuse of common land through grazing livestock and
firewood collection. This will put a further strain on the population who derive their livelihood from forests,
woodlands, and surrounding areas. Downstream from the project area, continued land degradation will also
affect areas and households through increased flood risk and sedimentation of irrigation dams.

3. Figure 1 illustrates how this analysis assumes a declining production without project interventions due to
soil erosion. With project interventions the yield loss is avoided and, for some production systems (crops,
livestock, and grassland), with-project yields increase over time. This yield increase is attributed to adoption of
improved cultivars, improved seeds, better animal breeds, land restoration, water management, and
implementing climate smart agricultural techniques. The sum of the two shaded areas in Figure 1 constitute the
incremental benefit. Total investment costs of US$129 million and a US$38 million estimate for beneficiary in-
kind contributions are included in the EFA29.

Rationale for Public Provision and Financing

4. There is a strong rationale for public interventions as proposed by the project. One of the core functions
of government is to supply public goods and to correct market failures. The current land degradation issues
warrant more targeted public investments that can ensure that private sector entities adopt sustainable
management practices going forward. The proposed project would help focus attention and assistance not only

29Beneficiary contribution includes US$25 million in-kind contribution to labor costs calculated as 50% on communal land and 80% on
private land (equal to 34% of US$ 78 million in Component 1). An additional US$ 13.1 million on top of the US$ 15 million Component 4
budget is assumed as in-kind contribution from the GoE for staff and office costs of federal and regional governments (same
proportion as assumed in SLMP 2 PAD p 15, World Bank 2013).

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on promoting sustainable land management to improve agricultural productivity, but also on helping
beneficiaries become more resilient to extreme weather events. Project activities encourage: protection of
ecologically sensitive landscapes; more efficient energy use; securing beneficiaries land rights, and; increasing
sequestration of carbon in soils and biomass.

Figure 1: Illustration of Incremental Benefits

Methodology

5. A cost benefit model is used to assess the ex-ante efficiency of the project investment. All project
interventions are considered necessary to obtain the target impact; therefore, the entire investment cost is
included in this analysis (US$129 million plus US$39 million from beneficiary in-kind contributions less 0.9% or
US$1.5 million price contingencies). In addition, recurring costs in the years after project has ended are
estimated to be 2.5% of initial costs. Annual cash flows are estimated as the difference between without-project
(WO/P) and with-project (W/P) net benefits for direct beneficiaries.

6. Some benefits are captured for all project Components – directly or indirectly. Project activities in
Component 1 include enabling community plans for land restoration and watershed management. The plans
include physical soil conservation as well as biological conservation techniques. Beneficiary farmers will be
targeted to adopt climate smart agriculture practices. Beneficiaries will also receive support to diversify their
income generating activities and adopt energy efficient stoves and lights. The benefits to be captured through
these interventions are enabled by strengthening institutions, policies, and information flow through
Component 2. It is also necessary to strengthen participatory land use planning and secure tenure rights for
beneficiaries through Component 3. This will enable them to adopt new production practices and continue
operating sustainably after project implementation is complete.

7. All project activities are associated with both costs and benefits. The following incremental net benefit flows
are expected – some of which are quantified while others are discussed qualitatively. Net benefits are benefits
or revenue less costs. Incremental net benefits means the difference between the W/P and WO/P situations.

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a) Direct net benefits to crop producers: The EFA quantifies the incremental improvement in gross margins
for different crops and cropping patterns on farms in the targeted watersheds. The increment includes expected
WO/P yield- and price losses due to the absence of storage facilities. It also includes net benefits from
establishing green corridors along field margins, eroded gullies etc.. A portion of this incremental benefit is due
to avoided soil erosion. This estimate is calculated separately from the impact on yield (see illustration in Figure
1).
b) Direct net benefits to livestock producers: The EFA quantifies incremental improvements in gross margins
for different livestock production systems and stocking rates on farms in targeted watersheds.
c) Direct net benefits to forests and other non-croplands: The EFA quantifies the net improvement in gross
margins for different categories of land use including forest plantations, green corridor plantations, bush, shrub,
and grassland. A portion of this incremental benefit is due to avoided soil erosion. This estimate is calculated
separately from the impact on yield (see illustration in Figure 1).
d) Direct benefits from new storage facilities: Due to the lack of data regarding establishing new IGAs, this
EFA only quantifies the establishment and operation of 16 storage facilities associated with linkages to local
value chains in 16 pilot woredas. Net benefit is estimated from gross margins for each facility, in addition to net
benefits captured at farm level described above.
e) Direct benefits from promoting energy efficiency: Project activities promote energy efficient cook stoves
that can reduce the amount of woody biomass harvested for cooking and heating. To analyze adoption of
improved cook stoves the reduced use of firewood is quantified together with time-saving for women and
reduced CO2-equivalent emissions. The investment costs as well as replacement costs are included.
f) Global value of impact on carbon balance: The project impact on carbon balance is estimated using FAOs
EX-ACT model. This considers changes in land use, land restoration and input and energy use. There are no
actual payments of carbon credits to beneficiaries in this project, so the social value of carbon is included only
in the economic analysis and not in the financial analysis.

8. The following incremental net benefit flows are not quantified explicitly in this analysis:

a) Net benefits from new Income Generating Activities (IGA): The project will engage farmers through CIGs.
Apart from storage facilities, several other possible enterprises have been noted but lack of data prevents
quantification at this time: grain-, meat-, dairy-, and bamboo-processing; tree seedling nurseries; and
manufacturing improved cook stoves.
b) Net benefits from promoting energy efficiency: The value of reduced indoor air pollution from the
introduction of improved cook stoves is not quantified.
c) Net benefits from strengthening institutions and improving information, and monitoring for resilience
(Component 2): The net benefits estimated in activities in Component 1 cannot be successfully captured without
the investment in Component 2 to strengthen stakeholders and provide technical assistance and mobilize
communities. It is difficult to determine the share of project benefits that can be attributed to these sub
components. Therefore, a separate efficiency analysis is not undertaken.
d) Benefits from improved administration and tenure rights (Component 3): The lack of secure tenure rights
creates a dis-incentive for beneficiaries to undertake productive investments and adopt sustainable
management practices. This is particularly the case when benefits accrue over a longer period of time. The direct
benefits of this component are captured in Component 1 while other benefits are not quantified due to lack of
data. These other benefits could include conservation of protected areas, biodiversity, and tourism.
e) Indirect benefits to other local areas: Several of the incremental benefits quantified as described above will
likely have other indirect benefits. For example, these include the adoption of climate smart agriculture and

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land restoration techniques in neighboring watersheds due to informal dissemination outside the project area.
Other industries and employment opportunities may increase through a multiplier effect to other areas and
related sectors. Due to lack of data these are not quantified in the EFA.
f) Downstream effects: Downstream effects from reduced soil erosion are also not quantified due to lack of
data. These benefits could include reduced risk of downstream flooding and reduced costs of sedimentation in
downstream irrigation schemes.
g) Improved nutrition: Incremental benefits from improved nutrition have not been quantified other than
through value of increased production yields. The value of a more varied food production has not been
estimated. This would be a direct benefit to project beneficiaries and indirect benefit to people in neighboring
areas.

9. Efficiency and other cost-benefit indicators. The cost-benefit analysis is based on crop-, and farm-level
assumptions on yields, prices and costs in constant 2018 currency amounts for without- and with-project
situations, based on a typology of farm households.30 The Economic Net Present Value (ENPV) is calculated using
the World Bank recommended discount rate of 5%.31 The financial discount rate used is 12% to reflect the
opportunity cost of capital in Ethiopia. In addition to sensitivity analyses of these discount rates, the break-even
rates are calculated, i.e. the Economic and Financial Internal Rates of Return (EIRR and FIRR). Other indicators
included are (units in parentheses):

a) Land area restored, reforested and afforested with sustainable management practices (hectares)
b) Target area in different land use categories (hectares)
c) Reduced soil erosion (tonnes)
d) Production and income in representative farm households (yield and US$)
e) Increased net benefits from storage facilities for access to Community Storage Receipts Programs (CSRPs)
(US$)
f) Net benefits from improved cook stoves (reduced firewood use, time saving, reduced emissions, US$)
g) Impact on carbon balance (CO2-equivalent and US$)

10. Results are aggregated to different levels for further analysis. Using data collected and assumptions made
by the project team, the methodology goes further than the total project results to enable analyses at different
levels of aggregation:

a) At the base of the model are data on per hectare gross margin for annual crops and avoided yield loss from
soil erosion. Gross margins for livestock production are calculated per head of animal.
b) Representative farms are defined in terms of farm size and combinations of different annual crops and
livestock. This enables an analysis of estimated impact on incremental farm household income.
c) Incremental net benefits on non-cropland are estimated at the watershed level. This includes any projected
per hectare changes in gross margins as well as avoided yield loss from soil erosion.
d) Adoption of improved cook stoves as well as establishment of storage facilities are estimated at the
watershed level.
e) Global impact on the carbon balance is estimated at the project level and allocated proportionally between
watersheds.

30 The foreign exchange rate used is 1 US$ = 28 ETB. Ethiopia Consumer Price Index to adjust 2014 to 2018 prices = 131.7.
31 World Bank (2015). Technical Note on Discounting Costs and Benefits in Economic Analysis of World Bank Projects. Washington, DC.

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11. Cumulative target values and farmer adoption rates. Investment costs are allocated across the initial years
as detailed in the project cost tables. Farmers’ adoption of improved agricultural practices promoted by the
project is assumed to follow a progression of 5% per year. This includes a progression in farmers’ revenue as
well as variable costs. The project team expects the maximum adoption rate to be 75% of the targeted farmers
based on the 86% rate in the SLMP-II baseline study (MOALR, 2016).32 In graduated watersheds it is assumed
that farmers adopting new agricultural practices have already progressed for four years under SLMP.

12. Conversion factors for economic analysis. An economic analysis is concerned with value addition to the
gross domestic product and excludes all transfer payments such as taxes, subsidies, grants, loans, interest- and
principal payment paid to or received from beneficiaries. Because none of the agricultural products quantified
in this model are imported or exported, the farm gate prices are applied both in the financial and economic
analysis. The opportunity cost of unskilled labor is set to 0.75 due to limited alternative employment
opportunities. It is expected that some agricultural and construction inputs are imported and should be
converted from farm gate prices using an economic conversion factor (assumed to be 0.95). Much of the variable
costs included in the analysis is unskilled labor. Therefore, average conversion factors are used for cropland
variable costs (0.98), non-cropland variable costs (0.88), and project investment costs (0.98). All other cost
assumptions are maintained from the financial analysis. As noted before, price contingencies estimated at
US$1.5 million or 0.9% of the project budget is excluded from the analysis.

13. The project’s impact on Greenhouse Gas (GHG) emissions is estimated using the Ex-Ante Carbon-balance
Tool (EX-ACT). The economic value of the project’s impact on the carbon balance is estimated from activities in
the project including: bio-physical structures on degraded land; afforestation and reforestation; promoting
agroforestry; introducing climate-smart agriculture practices; introducing improved grassland management;
and enriching forest areas with different tree species. This improved carbon balance is multiplied by the
assumed economic value from US$ 32 per tonne CO2-equivalent in early years increasing to US$ 68 at the end
of the 25 years. No value is assigned to improved carbon balance in the financial analysis because there are no
direct payments of carbon credits to beneficiaries.33

14. Sensitivity analyses identify key assumptions that should be the focus of risk management efforts. Three
different approaches are used: i) switching values, when a change in an assumption leads to a break-even ENPV,
are calculated for most assumptions. ii) Elasticities are also calculated for most assumptions to show how much
a 1% change in an assumption changes total ENPV; and iii) Specific cases are analyzed to further highlight key
risk factors and quantify the impact of variables that cannot be analyzed with switching values and elasticities
as listed below:

a) Impact of different discount rates

b) Changes in adoption rate among beneficiaries
c) Delay in project benefits

32 Other examples include: 74% adoption rate in the Uganda-National Agricultural Advisory Services Project (NAADS) and 70-80%
adoption rate in the IFAD Rwanda Project for Rural Income through Exports (PRICE). In the Pro-poor Value Chain Project in the Maputo
and Limpopo corridors (PROSUL) economic and financial analysis, an 80% adoption rate was assumed in the project area. 100%
adoption rate was assumed in Malawi Shire River Basin Management Programme and the Community-Based Rural Land Development
Project.
33 Current World Bank Guidelines suggest a social cost of carbon of US$ 30 per tonne CO -eq in 2015 building up to US$ 80 per tonne in
2
2050. World Bank (2014b) Social Value of Carbon in project appraisal. Guidance note to the World Bank Group staff. Washington, DC,
July 14. US$ GDP Deflator to convert 2014 to 2018 prices = 105.2.

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d) Higher yield losses from soil erosion

e) Changes in number of animals per farm
f) Changes in the social value of carbon

Assumptions and Results

15. Before analyzing the economic value results, the underlying assumptions are discussed starting with a
financial analysis of farm-level target beneficiaries. Note that the value of improved carbon balance is not
included in the financial analysis because payments for carbon credits are not expected to be distributed directly
to beneficiaries during the project.

Financial Analysis

16. Project interventions are assumed to lead to improved crop and livestock gross margins provided there is
long-term maintenance. One farm model is established for each region based on cropping pattern and gross
margin data from the SLMP-II baseline study (MOALR, 2016) and gross margin study (Große-Rüschkamp, 2015).
It is assumed that the project has no impact on crop prices. For livestock production, a price increase is included
because project intervention is expected to lead to use of improved breeds and quality of produce. Yield
increases are expected to be small (10-14%) on irrigated crops, and larger on rain-fed crops (16-70%). To achieve
these yield increases, variable costs will also increase. Gross margins on key crops are assumed to increase by
between 11% and 75%. Gross margins from livestock production increase, particularly in dairy (123%) and sheep
rearing (60%). Any yield increases are assumed to build up over time with long-term maintenance, which is also
emphasized by Schmidt and Tadesse (2017).34 As a proxy for variable weather, it is assumed that revenue
generated on cropland is reduced by ten percent every five years due to an extreme weather event. There are
no available data on which to base an assumption of changed cropping patterns due to the project. In recent
impact studies of the SLMP-II project there are indications that farmers who are able to increase the yields of
different livestock are tending to reduce their herd size. This is not assumed in the base case but included in the
sensitivity analysis.35

17. Some crop gross margins are used as proxies for other crops when data are unavailable. Not all crops
featured in the SLMP-II baseline study have gross margin data available. Therefore, some crops have been
combined to cover 100% of farm area by region: sorghum is combined with millet. Oilseeds are combined with
peas. It is assumed that 100% of potatoes are irrigated in Tigray, Amhara, Oromia, and Benishangul Gumuz.
Potatoes are rain-fed in Gambella and SNNPR. Rain-fed vegetables are valued as rain-fed potatoes including
90% of vegetables in Tigray, Amhara, Benishangul Gumuz, and SNNPR, and 50% of vegetables in Gambella and
Oromia. The remaining vegetables are irrigated and valued as tomatoes.

18. Estimated farm-level gross margins increase by over US$ 106/year/person, which is 1.2 times the Food
Poverty Line. Farm-level income increases by 55-65% on different representative farms. When assuming 5
persons per household farm gross margin can increase at least US$106 per household member per year. To

34 Schmidt and Tadesse (2017) suggest that there are no measurable improvements in productivity from SLMP, although the authors
also acknowledge that there are problems with the data: They found that, over the analysis period, value of production increased
significantly in both treatment and non-treatment areas.
35 In reality, cropping patterns are driven by demand and supply. However, the EFA model is deterministic and does not include a

dynamic adjustment of cropping patterns between years and different farmers. The assumptions are based on the Project team’s best
judgement.

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associate this result with a measure of absolute poverty, we use the National Poverty Line for Ethiopia. The
poverty line indicates the money required to afford the food covering the minimum required caloric intake (Food
Poverty Line) and additional non-food items. The improvement in farm gross margin is around 1.2 times the
Food Poverty Line in 2018 terms (US$85/person/year).36 This improvement is also about 66% of the total
National Poverty Line (US$162/person/year). Other representative farms are estimated to capture higher
growth in gross margins of up to US$140/person/year.

19. Estimated gross margins on non-cropland. Project interventions will transform 18,000 ha from bush or
grassland to forest plantations, 7,500 ha from unproductive cropland to green corridor plantations, and 2,500
from bush or grassland to green corridor plantations. Because most incremental benefits generated from
cropland converted to green corridors will be captured by farmers, this is valued as part of farm crop margins.
It is assumed that gross margins do not change on most non-cropland areas. The exception is that biophysical
treatment of grasslands will improve estimated gross margins by 90% due to doubled yields and increased
maintenance costs.

20. Estimated gross margins for storage facilities. It is assumed that access to a storage facility will mean that
farmers avoid a post-harvest yield loss of 10%, and they will be able to obtain 5% higher prices. The fee farmers
pay to sell their produce via these facilities is assumed to be 10% of the farm gate price. Produce is purchased
from farmers at 5% over original price. Variable costs also include 34 days of labor per month valued at US$2.14
per day. For this analysis it is assumed that a community warehouse runs at an annual gross margin of 10% to
cover their fixed costs. An additional price premium is therefore charged to buyers to reach the 10% gross
margin target. It is assumed that the warehouse capacity corresponds to 25% of each area’s crop production
and that 50% of their production requires storage. Combining area production with the planned size of storage
facilities (480 m3) this constitutes warehouse capacity of 56-103 tonnes/facility. With the current size of storage
facilities, they could probably absorb up to 100-200 tonnes depending on location and crop. As such, part of the
risk management plan could be to ensure that the storage facilities are used to their capacity. Note that no
warehouses are established in Gambela and Benishangul Gumuz. For this analysis, the 16 planned warehouses
are proportionally allocated between larger watersheds in Tigray, Oromia, Amhara, and SNNRP regions.

21. Estimated net benefits of improved cook stoves. Fuel wood savings are assumed to be 0.78
tonnes/household/year based on an average firewood consumption of 1.95 tonnes/household/year and
increased stove efficiency from 12% to 20%. The firewood price is assumed to be 39 US$/tonne based on the
price of 19 US$/m3 with average density of 500 kg/m3. Beneficiaries save time because they currently spend an
average of 3.5 hours per day, and with improved fuel efficiency they only need 0.5 hours per day. The time spent
collecting firewood is valued at an average rate of 0.5 US$/day. CO2-equivalent emission reductions amount to
0.89 tonne CO2/household/year – valued at the social value of carbon discussed earlier. The initial investment
costs for distributing 300,000 improved cook stoves is included in the project budget. In addition, replacement
costs of 55 ETB/stove are included every 3 years.

22. The project activities help avoid yield losses caused by soil erosion. This avoided yield loss is valued based
on the gross margin data on different land uses. To establish the linkage between reductions in soil erosion
with the project activities, a Universal Soil Loss Equation (USLE), adapted to Ethiopian conditions, was used to

36The 2011 National Poverty Line was 3,781 ETB/adult while the Food Poverty Line was 1,984 ETB/adult leaving Non-food Poverty Line
of 1,796. Ethiopia Central Statistical Agency (2014) and World Bank (2015b). It is assumed that a household of 5 persons is 3.1 adult
equivalents. These are converted to 2018 amounts using CPI factor 1.88.

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model soil loss associated with each of the technologies. The USLE relates soil loss from a field to local climatic
conditions, soil type, topography, and land and crop management variables. Annual soil loss is given as a
function of the rainfall erosivity of a given soil type, the slope length, crop cover factor, and the conservation
practice on the land. Based on a review of studies linking soil loss to productivity loss, it is assumed that
watersheds with between 10 and 25 tonnes/ha/year soil loss experience a 0.5% yield loss. When between 25
and 35 tonnes soil/ha/year are lost, yield loss is 1%, and if soil loss exceeds 35 tonnes/ha/year yield loss is 1.5%.37
Graduated watersheds from the SLMP program are included in the investment and incremental net benefits
from continued avoided soil erosion are captured. Because the physical treatments in those watersheds were
done earlier in the SLMP program, no additional yield improvements are attributed to the RLLP.

23. Aggregation to project level provides an estimated return on investment in financial terms. Net benefits
as described above are aggregated up to represent the entire area of crop- and non-cropland in each watershed
and in the project overall. The aggregation includes the 18,000 ha of land transformed to forest plantation and
10,000 ha of land transformed to green corridor plantations. The total net benefit from 16 storage facilities and
300,000 cook stoves are included in the aggregation as well. All watersheds are not developed in the first year,
but follow the gradual disbursement plan of the project budget with 19% in year 1, 36% in year 2, 20% in year
3, 15% in year 4 and 10% in year 5. Within each watershed beneficiaries follow the assumed gradual adoption
rate of improved farming practices increasing annually by 5% up to a max of 75% of the area. Incorporating this
adoption rate includes a progression in farmers’ revenue as well as variable costs.

24. The project’s overall Financial NPV is US$365 million (ETB 10.2 billion) with a Financial IRR of 33% and a
benefit cost ratio of 2.5. The payback period is 6.7 years (see Table 1). This estimated net return constitutes
0.5% of Ethiopia’s GDP in 2016 and is also US$ 10 per ha per year when including the entire project area of 1.5
million ha (treated and not treated areas). 38 The FNPV measured per person per year is 3% of the National
Poverty Line and 5% of the Food Poverty Line.

Economic Analysis

25. As explained earlier, prices and costs used in the financial analysis are adjusted to value the economic impact
of the project. The economic net benefits also include a valuation of the project’s impact on the carbon balance.
Investment costs include: the project budget (excluding price contingencies); beneficiary in-kind contributions;
and annual recurring costs after the project is complete.

26. The project interventions are expected to have a net-benefit on GHG emissions to the amount of 19.7
million tonnes of CO2-eq over 25 years, which constitutes a discounted value of US$ 483 million. GHG emission
calculations using the Ex-Ante Carbon-balance Tool (EX-ACT) are done for a 5-year project and a total 25-year
time frame. The results show that the project constitutes a net carbon sink of 19.7 million tonne CO2-eq
emissions over a period of 25 years, resulting in 787,862 tonne CO2-eq per year or 46 tonne CO2-eq/ha. Figure
2, illustrates that most of the carbon sequestration comes from afforestation and improvements to grassland
and annual agriculture. Together with increased use of fertilizer, herbicide, and diesel as well as building
construction, the project constitutes a net carbon sink.

37 Pagnos et al. (2018) provide a review of many references on this topic showing ranges of productivity loss from less than 1% to over
20%. Gebreselassie et al. (2016) also refer to potential productivity losses of 10-30% due to soil erosion.
38 World Development Indicators database. GDP data for Ethiopia as of 2016. Accessed 22 February 2018.

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Figure 2: Economic Analysis – Greenhouse Gas Mitigation Potential

Estimated Impact on Carbon Balance, 25-year period

4.0
2.0
million tCO2-eq

0.0
-2.0
-4.0
-6.0
-8.0
-10.0
-12.0

27. The ENPV is US$1,696 million discounted at 5% over a 25-year period (ETB 47.5 billion). This generates a
benefit cost ratio (EBCR) of 5.3 and an EIRR of 60% with a payback period of 4.5 years (see Table 1). When
excluding the social value of carbon, the net project return is US$1,063 million (ETB 30 billion) with a benefit
cost ratio of 3.7 and an EIRR of 34%. Without the impact of the carbon balance, the payback period is 6.7 years.
This is 1.5% of Ethiopia’s GDP (in 2016 terms). Without the carbon balance, the ENPV is US$29/year/ha (total
project area both treated and not treated) or US$ 13/year/beneficiary. Relative to the measure of absolute
poverty, this is 8% of the National Poverty line and 16 percent of the Food Poverty Line. The annual cost and
benefit flow for the project as a whole is illustrated in Figure 3.

Table 1: Economic and Financial Analysis – Key Efficiency Indicators

Scenario 1 Base Scenario 2 Scenario 3

Case
Economic Economic Analysis excl. Financial Analysis
Analysis Carbon Balance
Net Present Value, million US$ 1,696 1,063 365
Benefit Cost Ratio (BCR) 5.3 3.7 2.5
Internal Rate of Return (IRR) 60% 34% 33%
Payback Period 4.5 Years 6.7 Years 6.7 Years
NPV as share of 2016 GDP 2.3% 1.5% 0.5%
NPV, US$/ha 1,139.8 714.7 245.3
NPV, US$/year 67,830,089 42,535,895 14,595,818
NPV, US$/year/ha 45.6 28.6 9.8
NPV, US$/year/household 105.4 66.1 22.7
NPV, US$/year/beneficiary 21.1 13.2 4.5
Share of National Poverty Line 13% 8% 3%
Share of Food Poverty Line 25% 16% 5%

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Note:
- Economic discount rate = 5%. Financial discount rate = 12%. Analysis period is 25 years.
- Total 25-year Carbon Balance from EX-ACT model = 19.7 million tonne CO2-eq. Economic CO2-eq value = US$32/tonne to
US$68/tonne by year 25.
- Impact on carbon balance includes ENPV of US$483 million from EX-ACT estimation + US$151 million due to reduced
emissions from improved cook stoves.
- Project area (treated and not treated) = 1.5 million ha. Number of beneficiaries (population) in Project area = 3.2 million.
Number of people per household = 5.
- 2011 National Poverty Line, 2018 amount = US$ 162 /person/year. 2011 Food Poverty Line, 2018 amount = US$85
/person/year. 2016 GDP = million US$72,374.
- Exchange rate: 1 US$ = ETB 28

28. The estimated value of soil erosion varies between US$ 0.03 and 0.26/tonne soil depending on the gross
margin value of different land use. Because the value of the avoided erosion is based on gross margins, cropland
erosion on new watersheds is valued at US$ 0.23/tonne soil versus US$0.26/tonne soil on graduated watersheds
(ETB 6.5-7.4/tonne soil). This is because the graduated watersheds are already at a higher productivity level.
The gross margin values on non-cropland are lower, so the avoided soil loss is valued between US$ 0.03/tonne
soil (ETB 0.8/tonne soil). This compares to the original SLMP-II EFA where it was assumed that the value of one
tonne soil was ETB 0.79 in 2013 terms which converts to ETB 1.1 in 2018 terms.

29. Table 2 shows that, when excluding the carbon balance, 50% of incremental net benefits are generated
through activities on non-cropland areas, particularly due to the transformation of 20,500 ha from bush and
grassland to forest plantation. This constitutes an ENPV of US$114 per year per treated hectare and an EIRR of
47%. A substantial part is also generated by cropland and livestock production at US$53/ha/year and
US$35/ha/year, respectively. Much of the incremental benefit estimated from cropland comes from
transforming 7,500 ha of unproductive land to green corridor plantations. The return on investing in improved
cook stoves is high at US$ 20/stove/year although it may be the case that more of the project investment

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costs should be allocated to this benefit flow thereby decreasing the return. While overall net returns to
investing in storage facilities is lower, the NPV is positive and therefore economically and financially feasible
(IRR = 13%). Part of the risk management plan could be to ensure that the storage facilities are used to their
capacity of up to 100-200 tonnes rather than the currently 56-103 tonnes, which is based conservatively on
absorbing only part of the production from the project area. These results are sensitive to how project
investment costs are allocated between benefit flows. As such, the return-on-investment results by benefit flow
should be interpreted with care.

30. The ENPV of US$ 114/year/ha calculated for non-cropland areas compares well to other estimates, while
the cropland estimated ENPV of US$53/year/ha may be too conservative. Pistorius et al. (2017, Table 2)
estimate the net present value of forest restoration efforts to be US$ 17/year/ha for afforestation/reforestation
of marginal sites and US$ 183/year/ha for woodlots. They use a 20-year model without carbon balance benefits
and with a discount rate of 6%. In the current EFA, this could be compared to the ENPV on non-cropland, which
is US$114/year/ha and includes a mixture of treatments (see Table 13). Hurni et al. (2015, Table 21) estimate
the average net present value of SLM technologies to be between US$192-219/year/ha in 2014 terms. They use
a 30-year model with a 12.5% discount rate and no carbon balance benefits. These estimates are considerably
higher than the US$53/year/ha calculated with the current EFA assumptions – both if they are converted to
2018 terms and lower discount rate.

Table 2: Economic Analysis – Key Efficiency Indicators by Benefit Flow excluding Carbon Balance

ENPV, ENPV/
ENPV Benefit, ENPV Cost, ENPV/year,
Benefit Flow million EIRR yr/unit, Unit
million USD million USD million USD
USD USD
Cropland 319 102 217 23% 8.7 53 165,000 ha
Non-cropland 686 159 527 47% 21.1 114 185,000 ha
Livestock 250 107 143 20% 5.7 35 165,000 ha
IGA (CSRP) 26 25 1 13% 0.0 3,072 16 facilities
300,000
Improved cook stoves 152 1 151 - 6.1 20
stoves
Cropland, Graduated watersheds 28 5 23 24% 0.9 12 80,000 ha
Non-cropland, Graduated watersheds 0 0 0 - 0.0 - 0 ha
Carbon Balance 0 0 0 - 0.0 0 430,000 ha
Total 1,462 398 1,063 33.6% 42,535.9 99 430,000 ha
Note:
- Economic discount rate = 5 percent. Analysis period is 25 years.
- Costs include variable costs and investment costs. Results are sensitive to allocation of investment costs between benefit flows.
Results should be interpreted with care.
- Excludes social value of carbon. Compare to Scenario 2 in Table 1.
- Exchange rate: 1 US$ = ETB 28

31. Switching values. A switching values analysis is reported in Table 3, where each assumption is changed until
the Base Case ENPV turns zero (i.e. a break-even analysis). The project break-even is not very sensitive to any
one particular assumption. On top of the list, a 104 percent decrease in livestock yields or a general 171 percent
decrease in non-cropland yields could reduce ENPV to zero. The large and unlikely changes required to turn the
ENPV zero in the switching values analysis does not reveal how sensitive results are at the margin. So an
alternative sensitivity analysis is performed.

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Table 3: Sensitivity Analysis of Economic Efficiency - Switching Values

% change
Base Case Switching from Base
Rank Assumptions Unit Assumption Value Case
1 W/P Yield Sensitivity Factor, Livestock % of yield 0% -104% 104%
2 W/P Variable Cost Sensitivity Factor, Livestock % of price 0% 166% 166%
3 W/P Yield Sensitivity Factor, Non-cropland % of yield 0% -171% 171%
4 Farm Gate Price (financial), Bull fattening, WO/P ETB/animal 8,869.32 27,764.72 213%
5 Yield net of losses, Bull fattening, WO/P animal/year 1.00 3.13 213%
6 Farm Gate Variable Cost, Bull fattening, W/P ETB/animal/year 7,345.14 26,258.76 257%
7 Sensitivity Factor, Social Value of Carbon % of value 0% -268% 268%
8 W/P Yield Sensitivity Factor, Crops % of yield 0% -313% 313%
9 Yield net of losses, Milk prod, local breed, WO/P ltr/animal/year 253.50 1,389.77 448%
10 Farm Gate Variable Cost, Milk, local breed, W/P ETB/animal/year 3,208.63 22,196.11 592%
Note:
- WO/P = Without Project (Baseline); W/P = With Project.
- Switching value is the assumption value that causes the Base Case ENPV to turn zero (Break-even point).
- Exchange rate: 1 US$ = ETB 28

32. Elasticities. Instead of switching values, the elasticities of key assumptions were tested. A general one
percent increase in livestock yields can lead to a one percent increase in ENPV. A 1% increase in the discount
rate can lead to a 0.7% decrease in estimated ENPV. A general 1% increase in non-cropland yields increases
ENPV by 0.6%. Other variables with significant impact on project returns are: adoption rates, variable livestock
costs, and social value of carbon. On the basis of this analysis, as part of a risk management plan, it is particularly
important to ensure that farmers can negotiate and obtain fair output prices and achieve target yields going
forward, for example through establishing links to storage facilities and value chains, and providing technical
advice that encourages adoption.39

33. Some risk factors cannot be estimated well in a switching values or elasticity analysis. To analyze the impact
on project returns from selected assumptions, some specific cases were analyzed, as discussed below:

• Increased annual adoption rate increases project returns significantly such that a doubling of the annual
adoption rate from 5% to 10% can increase ENPV by 23%. Increasing annual adoption further to 15% can lead
to 30% higher ENPV. Close monitoring and support for target farmers and implementation of watershed
development and management plans could help increase the adoption rate. This also includes ensuring that
beneficiaries are successful at applying for credit, obtaining the necessary quality inputs, and implementing their
investments.

• Project delays can reduce returns by 5-10%. A delay in when farmers are willing and able to adopt new
farming practices and implement their investments can lead to reduced project returns. A 2-year delay in
benefits can reduce the ENPV by 10% and reduce the EIRR from 60 percent to 39 percent. While not always
avoidable, project delays can be minimized with close monitoring and by ensuring implementation does not
lose momentum.

39Because the Project’s impact on the carbon balance is calculated in the separate EX-Ante Carbon-balance Tool, it was not possible to
run a full sensitivity analysis inside the EFA model that changes the total carbon balance impact.

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• Estimated yield loss from soil erosion may be too low in the Base Case compared to some available
studies. If the yield loss factors are trebled from maximum 1.5% to 4.5% - which is still conservative in
accordance with some studies (see Pagnos et al. 2018, and Gebreselassie, 2016) – ENPV can increase by 8%.
Note that, this analysis does not take into account climate change which may create increased future soil
erosion and yield loss.

• The estimated returns could fall by 4-7% if the number of animals per farm dropped by 10-20%. Further
data are needed to determine if households respond by lowering the number of livestock units they own when
the yield per animal goes up as noted in a recent livestock impact study for SLMP-II.

• Results are sensitive to the estimated impact on carbon balance because a 10% reduction in value can
reduce ENPV by 4%. This also implies that it is important that the assumptions entered in the EX-ACT model
reflect the project accurately. This includes determining if the emissions reductions of improved cook stoves
can be incorporated in EX-ACT or should continue to be valued directly in the EFA model as described above.

34. The main expected net benefits which could not be quantified due to lack of data include:

a) Direct benefits from new income generating activities such as grain-, meat-, dairy-, and bamboo-processing;
tree seedling nurseries.
b) Value of improved indoor air pollution from cook stoves.
c) Benefits from improved administration and tenure rights such as conservation of protected areas,
biodiversity and tourism.
d) Benefits to other sectors of the economy that will take advantage of increased productivity and resilience
in the agriculture sector.
e) Benefits captured in neighboring communities through informal dissemination of improved land and water
management practices.
f) Downstream effects of reduced risk of flooding and reduced cost of sedimentation in irrigation schemes.
g) Benefits from improved nutrition such as due to a more varied food production in the area.
h) The value of capacity building among direct beneficiaries is captured in the EFA model. Project funded
capacity building and institutional development at all levels have direct value in that they increase the skill level
in public sector institutions and enable them to work more efficiently in providing essential and enhanced public
good services. These institutional benefits are not quantified in the EFA, but are seen as critical to ensure that
the other benefits can be realized when it comes to building productive alliances with access to agricultural
financing, land, and other business enabling services.

35. In light of an ENPV of US$ 1,696 million over 25 years (ETB 47.5 billion) and an ERR of 60 percent and the
additional potential net benefits that could not be quantified yet, the project investment is expected to yield
significant returns even when considering key risk factors.

36. Data collection to improve the current EFA analysis and evaluate the project at mid-term and completion
could focus on:

a) Validating assumptions behind all changes in WO/P and W/P gross margins for crops, livestock, non-
cropland, and storage facilities together with other new IGAs.
b) Validating the assumed farm sizes and cropping/livestock patterns of representative farms including
whether project incentives will lead to changes in cropping pattern and stocking rate.

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c) Updating the analysis when the budget cost tables are finalized and also explore how to assign shares of the
costs to different benefit flows.
d) Continuously ensuring that the EFA analysis is aligned with applicable target indicators in the Results
Framework.
e) Refining the estimation of impact on carbon balance using the EX-ACT Model.

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ANNEX 5: SOCIAL DEVELOPMENT PLAN: POTENTIAL RISKS, CHALLENGES AND RECOMMENDATIONS

This social development plan as outlined below will ensure that the project and its implementing agencies will respect the dignity, rights and
culture of groups meeting the OP4.10 requirements and ensure that these people benefit from the project in a sustainable manner. The plan could
be redefined during implementation and further consultation undertaken for the underserved groups to ensure their full participation. The matrix
below outlines the component based potential implementation risks and challenges and the suggested mitigation measures based on data
generated for the SA using different methods. The budget for the implementation of the SDP activities is included in Component 4, Project
Management and Monitoring, for inclusively targeting underserved peoples and vulnerable groups as indicated in the plan and the operational
modalities will be included in the PIM.

Responsible
Component Potential risks and challenges Mitigation measures
body
Component 1: Focus on supporting smallholder farmers to scale up & Devise a mechanism to include ''hunters and MoALR-PCU
Investment in green adopt best-fit sustainable land and water management gatherers" livelihood
infrastructure for technologies & practices. Hence there is a possible strategies into the RLLP program. One example is
resilient watershed risk/challenge of not properly addressing the circumstances their tradition beekeeping though largely takes the
of population groups such as hunters and gatherers, who form of forest honey collection, which can be
peruse peculiar livelihood systems and natural resource integrated into the RLLP activities, but with an
management strategies injection of modern knowledge and technology
based on their demand such as beekeeping
technology as the latter is more productive,
sustainable and environmentally and female
friendly.

The creation of benefit streams through markets and other It is recommended that the project through MoALR-PCU
market based instruments like results-based payments consultation with the beneficiary communities,
involve the risk /challenge of not properly taking into devise possible mechanisms on how to make the
account the elderly, disabled, and poor members of the old, the sick and disabled benefit from the project
community even when they might not afford to contribute
either labor or cash to the project implementation.
For example, the elderly people can be used as
advisors, the disabled as time keepers, etc.

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Watershed community saving is part of the project activities The project should devise a mechanism (e.g. MoALR –PCU
that helps user groups who voluntarily organize themselves interest free loan) by which watershed community
to engage in IGA suitable to their respective environment, members who are likely to be left out due to the
but the minimum cash contribution and active participation inability to meet the minimum membership
requirement to run the IGA leaves out some members of requirement can also benefit from the scheme.
the community. This involves the risk of further
marginalizing the vulnerable groups.

Female household heads & married women may face the Especial support needs to be provided to women MoALR-PCU
risk of not benefiting from the project in equal measures playing the dual roles as mother, household heads
with male counterparts because of not being able to and active participation in the project with male
balance their responsibilities with the project related role community members. Arrangements may be made
in consultation with the committees in this respect.
Suggested ways to support them balance their
competing responsibilities may be implement
affirmative action such as allowing them to a
certain number of hours or days off from the
minimum required time of labor contribution to
the project; allocating light works, flexible working
environment; for labor work establish working
groups comprise male & female, demand driven
activities which reduce workload, save time and
energy.

Component 2: Lessons learned from SLMP II show that inadequate It is highly recommended that locally available MoALR-PCU
attention to the use of locally available indigenous social capital such
Strengthening knowledge systems and time-tested adaptation strategies as traditional & indigenous knowledge of land use
institutions & can undermine the potential positive roles and natural resources conservation practices for
information effective implementation of project activities to
modernization facilitate and speed up the implementation

Component 3: The implementation of land administration and certification Care needs to be exercised to make sure that the MoALR-PCU
should not be based on wholesale or universal application in land administration and use of the project is not
Rural land all project woredas. This is because population groups in the implemented on wholesale basis in all project
administration and historically underserved project woredas watersheds woreda watersheds, and instead takes into account

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use exercise livelihood strategies that require peculiar the unique landholding and land use characteristics
landholding and land use arrangements from those of of the historically underserved population groups
smallholder farming communities. However, implementing in the developing regional states
the component without due regard for these peculiarities
may entail a risk that interferes with smooth project
implementation.

As previous experience shows there is also risk of female The project should consider consolidating grass MoALR-PCU
household heads losing their land that they have leased to root institutions such as rural land dispute
sharecroppers, who can register to plots in their name for adjudication and grievance redress structures.
certification against the terms of the sharecropping Strengthening such establishment plays an
agreements important role in making sure that women,
parentless HHs and elders who lease their land in
sharecropping arrangements will not unfairly lose
their landholding rights as a result of the breach of
agreements in the land registration and
certification process.
Component 4: In some of the project woredas constraints related to Lack of facilities such as vehicles, and motorcycles MoALR-PCU
facilities (shortage of vehicles, and motorcycles) have adversely affected the conduct of regular site
Project management visits and follow up of project implementation.
& Monitoring Proper attention should therefore be given to
providing woreda staff with necessary facilities to
enable the regularly visit project watersheds and
effectively monitor project execution.

In some of project woredas there is turnover /shift of WTC It is important to staff the project implementation
members which affected project implementation units with the right mix of experts at all levels.
Create a system & institutional memory for
effective knowledge generation & management by
woreda leaders, sectoral office heads & experts. It
is also important to organize regular experience
sharing visits between woredas to enable smooth
transfer of knowledge and skills across project
communities

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ANNEX 6: RLLP GENDER APPROACH AND ACTION PLAN

General

1. Land degradation has important gender dimensions. The UNDP finds that land degradation
increases the pressures on women differentially than men in their effort to meet practical needs of
supporting their families under increasingly difficult environmental, physical, social, and economic
conditions.40 Women are also challenged by the consequences of land and environmental degradation
induced fuel-wood and water shortage, making their work even more challenging.

2. Analysis also indicated the constraints to women’s access to equitable roles in decision-making
concerning land resources and their engagement in sustainable environmental and land management
such as: (a) insecure land use rights, (b) the low value assigned to labor and subsistence farming, (c) lack
of access to credit and (d) lack of opportunities to gain and share technical knowledge41. Further,
UNCCD42 illustrated that, often ‘women’s inequitable access to secure property rights forces them onto
marginal, fragile, highly degradable lands’.

3. The Sustainable Development Goal (SDG) Five on achieving gender equality and empowering all
women and girls is emphasized as not only a fundamental human right, but a necessary foundation for a
peaceful, prosperous and sustainable world. Providing women and girls with equal access to the natural
resource base and equal representation in decision-making processes will boost the returns of RLLP
investment and benefit broader society. The design of RLLP will therefore create opportunities for
women’s equal rights to economic resources, as well as access to ownership and control over land and
other forms of the natural capital, in accordance with GoE laws.

Gender Dimensions of Land Degradation in Ethiopia

4. Understanding gender aspects of natural resources management is an entry for reversing

environmental and land degradation in RLLP landscapes. Women manage natural resources daily in their
roles as farmers and household providers; typically, responsible for growing homestead crops, collecting
fuel wood and water. Local values and practices have a major impact on the access to natural resources
and the level of engagement of women in the agriculture sector. Inequitable access and unequal playing
fields has led women farmers to produce on average 23% less than their male counterparts in Ethiopia43.
However, notwithstanding their reliance on natural resources, women have less access and control than
men, despite their constitutional rights to equal land ownership, administration and use. Landless rural
women often depend on common property resources for fuel wood, fodder and food. As part of the
overall RLLP investment, protection of the natural resources base is at the center, where rural women
and men will be empowered to participate in decisions that affect their needs and vulnerabilities, and in
turn lend hands for effective interventions for their conservation and sustainable use.

40 Mother Earth: Women and Sustainable Land Management, Gender Mainstreaming Guidance Series, UNDP 2007
41 Ibid.
42Gender Programme: Empowering Women to Invest in Sustainable Land Management (SLM), the Global Mechanism, United

Nations Convention to Combat Desertification.

43 World Bank and One. 2014. Levelling the Field: Improving Opportunities for Women Farmers in Africa.

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Lessons from SLMP-II Gender Focus

5. SLMP-II has used gender mainstreaming as a strategy for making concerns and experiences of
women and men an integral part of the design, implementation, monitoring and evaluation of sub project
activity. SLMP-II has been able to create jobs, generate income, sustain livelihoods for women and youth
in its project components as an integral part of the operation. The following evidence from the SLMP-II
midterm review provides the basis for this assessment, including data that is gender-disaggregated.

SLMP-II Gender Focus: Mid-Term Evidence

SLMP-II has made considerable progress in developing and using a gender mainstreaming guideline to ensure
the inclusion of gender issues in its subprojects/activities. All reporting in SLMP-II is gender disaggregated.
Overall, SLMP-II ensured a 25% proportion of Female Headed Households, while women in Male Headed
Households also draw various forms of project benefits. Participation of women in decision making in SLMP-II
coordination platforms at different levels of the project implementation (CWT, KWT, WTC, and WSC) is 18.3%.
The SLMP-II staffing has 15% women at all levels of the project coordination units.

The gender and youth inclusive approach of SLMP-II in all components benefited men and women, with focused
support to vulnerable groups and underserved peoples. SLMP-II is systematically implementing the Social
Development Plan which has a gender, vulnerability and youth focus under which soil and water conservation
work benefited women (56,525), jobless and landless youth were engaged in paid work (24,192) and landless
households were involved in paid work (5,195). The livelihoods improvement interventions, targeting people
who have an impact on the natural resource base, focused on households with small landholdings, or the landless
and jobless, particularly youth and women. SLMP-II IGAs included women (4,207), jobless and landless youth
(2,334), landless households involved in paid work (1,717), and people with disability (110). In addition, improved
cookstoves have drastically reduced women’s time in collecting firewood.

RLLP Gender Approach

6. The operational steps encompass resilience building through soil and water conservation works,
enhanced tenure security, homestead and farmland development, livelihood improvements (access to
improved, targeted livelihoods support in rehabilitated watersheds including creating jobs, organized
cooperatives, women or girls only), climate smart agriculture, and affordable and innovative technology
(household energy). For RLLP, facilitating the acquisition of Improved Cookstoves, will free up women’s
time, which they could potentially use in developing IGAs. These IGAs could include promotion of
improved cookstoves, cultivating fruit trees, bamboo handicrafts, beekeeping, etc.

7. The RLLP components will take into account the different roles of men and women in advancing
resilient livelihoods at multiple scales, and respond to the unique interests, priorities and needs of
women and men in order to close gender gaps. Women and men at all levels of the RLLP decision making
should be involved as key actors in the assessment, design, monitoring, and evaluation of interventions
starting from the community watershed committee. Both women and men need to benefit from a gender
approach that reinforces their joint participation and equitable benefit in RLLP.

8. An evaluation of gender innovations under RLLP will be carried out as part of the broader

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livelihoods impact evaluation. The gender assessment of SLMP 2 experiences helps determine
constraints and experiences that limit female and male project beneficiaries', and whether women's
ability to realize their equitable benefit from the natural and environmental resources potential were
effectively improved by the project's activities/innovations. Based on the findings of the SLMP-II
gender assessment, the following major indicators were suggested to guide the gender mainstreaming
process in RLLP.

Potential Gender Focus Indicators proposed by SLMP-II Gender Assessment

9. Core Indicators:
• Strengthened implementation practices (planning, implementation and monitoring processes) for
equitable and meaningful participation of females and males in sustainable land restoration and
water conservation practices (50 percent female representation in all stages)
• Integrated landscape management practices adopted by local communities based on practical and
strategic gender needs and priorities

10. Component 1: Integrated Watershed and Landscape Management

• Households who directly benefited from integrated watershed and land use management
(number, men and women)
• Proportion of women involved in the planning and implementation of the natural resource
program increased to 50 percent
• Female participation in project coordination platforms (CWT, KWT, WSC and WTC) increased to
50 percent
• Number of gender sensitive technologies demonstrated in the project area (energy, labor and
time saving cook stoves, biogas, etc) (Number)44
• Number of technologies promoted to public RLLP extension services (total and disaggregated by
gender) (Number)
• Provisions to remove public work obligations of pregnant and lactating women, from onset of
pregnancy to until 24 months postpartum (PIM)
• Clarify work norms in the PIM, on 50 percent reduction of workload and allocation of light work
for women (PIM)

11. Component 2: Institutional Strengthening, Capacity Development, and Knowledge Generation and
Management
• Formal community-based institutions, self-help groups and associations established and
functional (Number of women participants)
• Proportion of women’s participation in decision-making processes in watershed steering
committee (WSC) and Watershed Technical Committee (WTC) increased from 18.3 to 50 percent.
• No of traditional institutions and leaders that accessed gender training (number, men and women)

44This indicator assesses the number of gender sensitive technologies demonstrated by the project. Gender sensitive technologies are defined
as: (i) technologies based on needs and interest of female farmers; (ii) technologies that reduce time and labor for women farmers; and (iii)
technologies that are accessible and affordable by women farmers.

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12. Component 3: Rural Land Certification and Administration

• Second level landholding certificates issued (of which female numbers).
• Female-headed households in project area using at least three technology packages supported by
the project on individual lands (Number)
• Households who have received second level land holding certificates (sub-indicator women who
have received second level land holding certificates individually or jointly with a man (Number))
• Landless youth who have been issued a second level certificate or other legal documentation to
use communal land holdings in exchange for restoring land (Sub-indicator - Of which female
(Number))
• People participating in income-generating activities supported by the project (Sub-indicator, Of
which female (Number))
• Equitable (50 percent) participation of women and men in awareness programs on equal land
rights and holdings and in land programs

13. Component 4: Project Management

• RLLP M&E report (gender disaggregated data)
• RLLP Gender Impact Assessment (two reports, midterm and end of project)
• RLLP Gender Mainstreaming Guideline (one Guideline)
• RLLP Gender Focused Capacity Building (gender disaggregated capacity building reports and
gender focused trainings)
• PIM to integrate gender provisions and tools for improved implementation practices at the
grassroots levels (PIM)
• Training plan on the PIM developed, with an earmarked budget (one, training plan)
• Capacity building activities/training on gender mainstreaming and PIM provisions for project
implementers at different levels (Number of training sessions)
• Gender sensitive information, education and communication (IEC) materials disseminated to
guide implementation of gender dimensions of the project (Number and type of IEC materials)

14. A Gender Action Plan for the RLLP has been developed based on the findings of the SLMP-II gender
assessment (including the suggested indicators listed above), and is presented below. In addition to
outputs and targets to be achieved by specific dates, this plan also identifies indicators to be reported on
in the six-monthly project progress reports (as specified in the PIM to be finalized within one month of
project effectiveness), which include the gender-specific indicators of the Results Framework (identified
as such in the plan presented below).

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Gender Action Plan for RLLP

Activities Indicators and targets Timeline Responsibilities

Impact Statement: Increased climate resilience, land productivity, carbon storage and diversified livelihoods of women and men, including poor and female headed households in selected
rural watersheds
Outcome Statement: Improved access to livelihoods opportunities, information, technology and resources to community members in 152 major watersheds, of which 50% are women and
female-headed households.
Component 1
Output 1: Higher participation of both men and women in sustainable land restoration and water conservation practices
• Conduct Gender analysis (Collect, analyze and • One Gender Analysis Report and baseline data • 2018 • Federal Project Support Unit (PSU) at the
profile gender norms, customs and values to Ministry of Agriculture and Livestock
• Share of target women beneficiaries with rating “Satisfied” or • Six-monthly Project
determine beliefs, perceptions and stereotypes Resources
relating to differences between women and men above on project interventions (aspects: livelihoods, Progress Report
environmental benefits, others) (Results Framework: • Regional Project Coordination Unit of
in relation to the program components)
Intermediate Results Indicator, IR 1a) Bureau of Agriculture (BoA) of the 6
• Conduct gender awareness training on division of • Six-monthly Project regions
• Women land users adopting sustainable land management
labor, roles, benefits and participation in Progress Report
sustainable land restoration and water practices as a result of the project (Results Framework: • Woreda Agricultural Development
conservation activities Intermediate Results Indicator, IR 4a) Offices

• Strengthen implementation practices to ensure • Female-headed households adopting sustainable land • Six-monthly Project
management practices as a result of the project (Results Progress Report
female and male representation in planning,
Framework: Intermediate Results Indicator, IR 4b)
implementation and monitoring activities
• Gender sensitive information, education and • Increased participation of women and female-headed • By year 2023
households to 50% in sustainable land restoration and water
communication (IEC) materials disseminated to
guide implementation of gender dimensions of the conservation activities
project • Increased membership of women in different committees such • By 2020

• Conduct experience sharing between regions on as CWT or WUA, KWT, KLAUC to 50% • Six-monthly Project
best practices on gender mainstreaming and • Number and type of IEC materials produced and disseminated Progress Report
women’s empowerment • Six-monthly Project
• Number and percentage of women and men who receive
• Identify model women and men (couples and training provided by RLLP, by type of training Progress Report
families) where gender relations and decision
• Number of experience sharing visits by year • Six-monthly Project
making are more egalitarian; and engage them as
Progress Report
“community change agents” in their respective • Number of model couples identified and engaged
social groups • Six-monthly Project
Progress Report

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Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Activities Indicators and targets Timeline Responsibilities

Output 2 Higher participation of both men and women in improved and climate-smart agricultural practices
• Introduce technologies that reduce time and labor • Impact evaluation of crop yield as a result of CSA intervention • By year 2023 • Federal Project Support Unit (PSU)
of women farmers and FHHs, including improved disaggregated by male or female-headed households • CGIAR institutions engaged for CSA
cookstoves impact evaluation
• Number of new technologies introduced to reduce the time and
• Six-monthly Project • Regional Project Coordination Unit
• Train men, women & FHHs on different packages labor of women farmers
Progress Report • Woreda Agricultural Development Offices
of CSA (Conservation Agriculture, Agro-Forestry,
• Number of experience sharing visits by year
Compost Application, biological measures for soil • Six-monthly Project
and water conservation) Progress Report
• Conduct experience sharing between
implementing regions on women technology
adaptation and promotion
Output 3: Higher participation of both men and women in CIGs, local value chains & other agri-business initiatives
• Carryout gender sensitive value chain analysis & • One value chain analysis, which is gender sensitive and maps out • By 2019 • Federal PSU
mapping of gender roles, relations and challenges gender roles • Regional PSU
along the Value Chain of identified products, as • Regional Cooperative Promotion Offices
• Female-headed households participating in diversified livelihood
well as the market barriers to entry • Six-monthly Project • Woreda Cooperative Promotion Offices
activities supported by the project (Results Framework: PDO-
Progress Report
• Establish CIGs to promote commodities/ products Level Result Indicator 5a)
that have the potential for market development
(such as vegetables and fruit farming, poultry • Women participating in income-generating activities supported
production, sheep and goat fattening, forage
by the project (Results Framework: Intermediate Results • Six-monthly Project
Indicator, IR 6a) Progress Report
production, apiculture etc.)
• 50% of CIG members participating in income generating activities • Six-monthly Project
as a result of the project are female & female headed households Progress Report

Output 4: Gender-sensitive technologies that are accessible and affordable to both men and women
• Introduce technologies that contribute towards • Numbers or percentages of Women and FHHs who have access • By 2020 • Federal Project Support Unit (PSU)
the reduction of deforestation and greenhouse to and use of gender sensitive technologies in the project area • Regional PSU
emissions and reduce the workload of women (including energy, labour and time saving cook stoves, biogas • Bureau of Water, Irrigation & Energy
based on the needs and interest of female farmers digesters, etc.)
• Number of CIGs that engage in the production and marketing of • Six-monthly Project
improved cook stoves Progress Report

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Activities Indicators and targets Timeline Responsibilities

Component 2:
Output 5: Building the capacity of institutions implementing the project for mainstreaming gender issues
• Conduct participatory gender audit process • Gender Audit Report • By year 2019 • Federal PSU
(including the organizational culture and the
• Number of gender specialists or gender focal persons hired at • Six-monthly Project • Regional PSU
presence of sufficient human resources to carry
different levels Progress Report
out gender-related activities and mainstreaming) • WB
in RLLP implementing institutions • Number and percentage of women and men staffs or service • Six-monthly Project
• Strengthen the capacity of implementing providers who received gender training provided by RLLP, by Progress Report
institutions (provide trainings & refreshers) to type of training
ensure equitable benefits to women and men
Component 3:
Output 6: Improve women's entitlement to land and enforce land certification proclamation
• Create awareness on the importance of equal land • Equitable (50%) participation of women and men in awareness • Six-monthly Project • Federal Project Support Unit (PSU)
rights and tenure between men & women to programs on equal land rights and holdings Progress Report
reduce gaps between land certification • Regional Project Coordination Unit
proclamation and its enforcement, with special • Women who have received second level land holding certificate • Six-monthly Project
• Woreda Agricultural Development
individually or jointly with a man (Results Framework: Progress Report
attention to areas where polygamy was practiced Offices
such as Gambella, Benishangul Gumuz and parts of Intermediate Results Indicator, IR 11a)
Oromia • Women landless youth who are members of groups who have
• Six-monthly Project
• Support the capacity of law enforcement been issued a second level certificate or other legal
Progress Report
documentation to use communal land holdings in exchange for
institutions such as courts and local administrative
organs, on existing laws and land certification restoring land (Results Framework: Intermediate Results
proclamations, with special attention to areas Indicator, IR 12a)
• Six-monthly Project
where polygamy was practiced such as Gambella, • Number of law enforcement officials sensitized or trained on Progress Report
Benishangul Gumuz and parts of Oromia land certification
Component 4
Output 7: Enhanced gender perspective in program design, implementation, monitoring, evaluation & reporting
• Capacity building/ training for partners and • No. of implementers sensitized or trained on gender sensitive • Sex-disaggregated • Federal Project Support Unit (PSU)
implementers on collecting and analysis of sex- project design, implementation, monitoring and evaluation baseline
• Regional Project Coordination Unit of BoA
disaggregated information Information in 2018
• Gender sensitive M& E framework of the 6 regions where the project is
• Develop and disseminate simple gender • Revised PIM by implemented
• Number of periodic gender sensitive reports (sex disaggregated
responsive reporting format that includes both 2019
quantitative and qualitative analysis of periodic data presented) • Woreda Agricultural Development
• RLLP Mid-Term Offices
implementation reports • Number of supervision visits Gender Impact

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 The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

Activities Indicators and targets Timeline Responsibilities

• PIM to integrate gender provisions and tools for • PIM Assessment Report • WB
improved implementation practices at the by 2021
grassroots levels
• RLLP Final
Evaluation Reports
by the end of
project

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The World Bank
Ethiopia Resilient Landscapes and Livelihoods Project (P163383)

ANNEX 7: RLLP MAP

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