Agriculture and Rural Development Programme - ARDP Newsletter - April 2015

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1 Agriculture and Rural Development Programme - ARDP Newsletter - ARDP: 14 Million from the EU to Support the Lebanese Agricultural Sector ARDP Fostering Agriculture and Rural Development H.E. Mr. Akram Shehayeb Minister of Agriculture Agriculture is the safe warranty in securing stability and security in rural areas improving the living conditions and contributing to the national economic growth. In this context, the EU funded Agriculture and Rural Development Programme ARDP has contributed over the past three years towards developing the agriculture sector performance through institutional strengthening and capacities development. The Agriculture and Rural Development Programme (ARDP), funded by the EU through the European Neighbourhood and Partnership Instrument (ENPI), is implemented by the Ministry of Agriculture (MoA) on behalf of the Republic of Lebanon. The total budget allocated for this programme is 14 Million. ARDP is managed by MoA through a Programme Implementation Unit (PIU) with four members (3 MoA and 1 LARI staff) co-ordinated by a Programme Director and supported by a Technical Assistance (TA) team of long- and short-term experts provided by a Consortium led by AGRICONSULTING SpA, in partnership with CIHEAM IAM Bari, CIHEAM IAM Montpellier and IBCC. H.E. Ambassador Angelina Eichhorst Head of the Delegation of the European Union to Lebanon The purpose of the ARDP programme is both to maintain and enhance the natural capital of Lebanon - starting with its water resources - while structuring the sector. It also reflects our determination to work on the long term and to obtain sustainable results in terms of both job creation in the agricultural sector and the fight against climate change". ARDP Objectives: The general objective of ARDP is: To improve the overall performance of the agricultural sector and the livelihoods of rural and farming communities to achieve sustainable agriculture and rural development. The specific objectives of ARDP are: Strengthening the capacity of national institutions to work on a coherent agricultural/rural development vision (strategic orientations); and Supporting and empowering local rural actors (farmers and cooperatives) by increasing access to credit and by supporting rural development initiatives consistent with local development priorities. ARDP is funded by the European Union and implemented by the Ministry of Agriculture

2 Photo taken by : Radwan Wazne Photo taken by : Radwan Wazne Page 2/8 A Sustained Commitment by the Ministry of agriculture Launching the Strategy at the Grand Serail The Strategy: Increase Annual Output of Agriculture to $3 billion December, 2014, The Grand Serail Eng Louis Lahoud Director General Ministry of Agriculture The agricultural sector, through its three interrelated dimensions (economic, social and environmental) plays a vital role in the management of natural resources and contributes to sustainable development. The improvement of the agriculture sector is a prerequisite to rural development and environmental conservation. Thus, the development of the sector contributes to decreasing urban sprawl and limiting overutilization of natural resources in response to climate change impacts. Grand Serail Ceremony: PM Salam, H.E. Mrs. Eichhorst, Minister Shehayeb, DG Lahoud MoA s strategy was announced during a launching ceremony, held at the Grand Serail, under the auspices of Prime Minister Tammam Salam, who stressed the importance of setting agriculture strategies in view of developing the sector achieving food security and ensuring food safety. MoA strategy launching at the Grand Serail Attending were: HE the Minister of Agriculture, Akram Shehayeb, the Minister of Environment, Mohamad Al Mashnouk, the Minister of Health, Waël Abou Faour, the Head of the EU Delegation, H.E. Angelina Eichhorst, several Members of Parliament, Ambassadors of EU countries, Representatives of donor organizations, the Director General of the MoA, Louis Lahoud, the President of the Green Plan, Gloria Abou Zeid, LARI PDG Michel Afram, the ARDP Director, Mohamad Abou Zeid, ARDP Key-experts Marco Manetti, Dany Lichaa El- Khoury and Hussein Hoteit, PIU staff, as well as many Ministry Officials, NGO s Representatives and other sector s stakeholders.

3 Photo taken by : Radwan Wazne Page 3/8 Increased Resources to develop Agriculture $330 m i l l i o n t o i m p l e m e n t M o A s S t r a t e g y Eng. Mohamad Abou Zeid ARDP Director ARDP Strategy Launching Ceremony at the Grand Serail under the auspices of PM Salam ARDP supported MoA during the whole planning process of its strategy, using a participatory approach based on extensive consultations with MoA officials, representatives of other line ministries and institutions, non-governmental organizations and other concerned stakeholders. The Agriculture and Rural Development Programme (ARDP), funded by the EU, supported the Ministry of Agriculture of Lebanon (MoA) in the preparation of its strategy for the period , which is meant to face agricultural challenges, enhance food safety and improve the contribution of the sector to the national GDP to $3 billion by The general objective of the strategy is to develop the institutional capacities, empower MoA and allow it to overcome agricultural challenges, improve the contribution to the economic and social development of the country, and promote sustainable management of natural resources. The investment requirements for implementing the strategy will reach a total of $330 million over five years, excluding MoA s operating costs. By 2019, the increased public expenditure on agriculture will be translated into an increased contribution of the sector to GDP from four to six percent. Hence, the agricultural output will reach $3 billion annually compared to the current rate of $2.3 billion, countering the decrease in farmers income and stabilizing the rural population decline. Dany Lichaa El-Khoury, ARDP Agricultural Development Expert, explained that funding a number of programs and projects identified under this strategy requires increasing national budget allocations over the next five years, and raising additional resources from donors and partners. A Steering Committee has been set up within MoA to guarantee a proper follow-up and supervision of the strategy s implementation. H.E. Akram Shehayeb during MoA Strategy Launching Ceremony

4 Page 4/8 Strengthening the Agricultural sector Agriculture in Lebanon Unexploited Potential and Resources Lebanon is among the countries with the best potential for agricultural development in the region with approximately 30% of the population either directly or indirectly drawing their income from agricultural activities. Despite this unexploited natural resource, only 0.6% of the yearly State budget is allocated to agriculture, while its share of GDP represents nearly 4-6% since Many problems hinder the development of the sector: small and fragmented land holdings, insufficient knowledge of modern techniques and environmentalfriendly practices, excessive use of pesticides, lack of rural infrastructure, restricted access to rural credit, inexistent farmers status, limited research and extension services, insufficient sanitary and phytosanitary capacities. H.E. Dr. Hussein Hajj-Hassan Minister of Industry Former Minister of Agriculture ARDP is important since it falls directly under the Government priorities and the Ministry of Agriculture Strategic Framework to complementing and leveraging the current Ministry s interventions and other donors' activities in the sector. The Ministry works in close collaboration with the EU and all concerned partners to provide any support needed for successful implementation of the Programme". (Beirut (29/07/2011) ARDP Budget Utilisation Activities are structured in 4 main Axes of Intervention each containing several projects, as follows: UNDER COMPONENT 1 1.Reinforce MoA Capacities 3,909,427 2.Foster Import/Export Capacities 2,160,724 UNDER COMPONENT 2 3.Credit 3,500,000 ARDP consists of three components, as follows: Component 1. Capacity development of the MoA at the institutional, organizational, and human resources levels; Component 2. Support to rural development activities through increased access to credit and improved extension services; Component 3. Support to agriculture infrastructure to improve sustainable water and land management. Percent distribution of ARDP components activities per area of intervention UNDER COMPONENT 3 4.Water & Land Management 4,101,630 TOTAL CONTRACTED* 13,671,781 Since an amount of 250,000 out of the total budget of 14 Million is reserved for the Audit and Evaluation of the programme that will be managed directly by the EU, 99.4% of the ARDP funds available for contracting have been committed.

5 Page 5/8 Credit Guarantee Fund to Sustain Rural Development C r e d i t S c h e m e s T a r g e t i n g s m a l l F a r m e r s & T r e e s G r o w e r s 3.5 Million Grant to Launch with Kafalat the Agriculture Credit Guarantee Fund Supporting Farmers and Rural Enterprises February 28, 2013 Within the framework of the ARDP programme, funded by the EU and executed by the Ministry of Agriculture, the European Union allocated a 3.5 Million grant to a Credit Guarantee scheme for Agricultural and Rural Development (CARD) on the basis of an agreement signed by the then Minister of Agriculture, Dr. Hussein Hajj Hassan, the Head of the EU Delegation, Mrs Angelina Eichhorst, and Dr. Khater Abou Habib, CEO and Director General of Kafalat. The overall purpose of the "CARD" scheme is to increase access to credit for small-scale farmers and agricultural cooperatives. "CARD" will complement the existing 'Kafalat's agriculture' guarantee scheme and will help filling major gaps in the agricultural credit market in Lebanon. With the cumulated EU and Kafalat contributions worth 7 Million and considering page 2/4 the multiplier effects offered by the credit guarantee revolving fund mechanism, the fund could guarantee up to 36 Million of loans, it is expected that more than 800 loans will benefit from this scheme in the first two years and more than 1,500 loans in the next 10 years. ARDP in collaboration with MoA and Kafalat launched in early 2014 a communication campaign in all geographical regions in order to inform farmers and cooperatives on CARD scheme and to encourage and assist them to apply for agricultural loans. Credit Guarantee Fund: Helping Small Farmers and Fruit Trees Growers to obtain Credit 2 products co-financed by the EU and Kafalat SAL Small Agriculture Credit (SAC) guarantees loans with amounts varying between a minimum of LBP four million and a maximum of LBP 65 million to finance all types of farming and agricultural activities, including fixed assets and working capital needs. The loan has to be repaid within a maximum period of 7 years. New loan guarantees include a grace period between 6 and 12 months depending on the expected business revenue. During the grace period, the borrower makes no repayment, neither in principal nor in interest. SAC guarantees 85% of the value of the loan granted by the bank and 85% of the accrued interest during the grace period plus 3 months. Road show: farmer audience: Taybe, South Trees Credit (TC) guarantees loans with amounts varying between a minimum of LBP four millions and a maximum of LBP 480 million to finance all types of fruit trees growing activities. The loan has to be repaid within a maximum of 10 years. New loan guarantees include a grace period between 6 months and 3 years depending upon the expected business revenue. During the grace period, the borrower makes no repayment, neither in principal nor in interest. TC guarantees 75% of the value of the loan granted by the bank and 75% of the accrued interest during the grace period plus 3 months.

6 Page 6/8 The European Union Helps Lebanon s Forestation Efforts I n v o l v i n g P u b l i c a n d P r i v a t e P a r t n e r s i n R e / f o r e s t a t i o n The 40 Million Trees Programme In compliance with the National Reforestation Programme (NRP) objectives, the Government of Lebanon is launching a National initiative to plant 40 Million forest trees on 70,000 Hectares of public land, which is 7% of the Lebanese territory, in the coming 20 years to recover forest areas lost in the last decades and bring the forest cover from the present 13% to 20% of the territory of Lebanon. This programme foresees three integrated phases: 1. Elaboration of a Master Plan for Reforestation. 2. Implementation of the Master Plan at the national level in partnership with public and private stakeholders. 3. Creation of a framework for attracting external contributions towards reaching the 40 Million trees target. ARDP TA Support to Forestation ARDP assists MoA in the elaboration of a Pilot Master Plan (PMP) for Reforestation. The PMP is identifying local needs through consultations with local communities; developing a scientific approach for locating publicly-owned planting sites throughout Lebanon, assessing field conditions, attributing functions to the forest areas to be planted, selecting suitable native species, elaborating appropriate planting techniques, programming adapted maintenance and the follow-up and evaluation of practices for the successful implementation of reforestation activities. ARDP TA will transfer know-how to MoA staff to use the PMP as a tool for planning and implementing participatory re/forestation activities all over Lebanon. The Master Plan is called pilot because it will pave the way for the implementation of the 40 Million Trees programme and focus on a portion of the 70,000 ha targeted by it. It will be used by MoA to start attracting external contributions for planting forests under the 40 Million Trees programme. Direct planting of 1,240 dunums (or 124 hectares) Beirut, 7 July 2014 Grant contracts for forestry actions in Lebanon involving 6 NGOs and 14 Municipalities were signed at the Ministry of Agriculture by H.E. Akram Shehayeb, Minister of Agriculture, H.E. Ambassador Angelina Eichhorst, Head of the Delegation of the European Forestry Grant signing ceremony, MoA, July 2014 Union to Lebanon, and representatives of the grant beneficiaries. This action is co-financed by the EU out of ARDP with 1,959 Million. The Grant scheme encourages participatory reforestation activities all over Lebanon fostering the cooperation between Non-State Actors and Municipalities. It also aims at setting pilot replicable examples of good practice for planting, technical planning and management of forested areas; at promoting rural and local development, creating opportunities for improved socio-economic livelihoods and poverty reduction through sustainable forestry management; at providing direct and tangible benefits to the more vulnerable population. The expected results are: the direct planting of 1,240 dunums (124 hectares), and the involvement of local communities and stakeholders in re/forestation activities. With the cumulated EU and beneficiaries' contributions worth over 2.5 Million, it is expected that more than 25,000 households will directly benefit from this activity. LMAC, EU and MoA join efforts to foster local development The Lebanon Mine Action Centre (LMAC) and the EU Delegation agreed to support MoA to assess the presence of mines and clear the area in Jezzine on which reforestation is planned to take place under the ARDP grant scheme, after the beneficiaries NGO and Municipality reported that there may be this danger. This joint action will allow to achieve synergies in the areas of reforestation and local development between two Lebanese Authorities, LMAC and MoA, as well as between two EU-funded activities, the programme "Mine Action in Lebanon: Clearance Operations and Institutional Support" and ARDP.

7 Kfarshima Laboratory Page 7/8 Support to Irrigation and Laboratories Fostering Water Management : EU funds the construction of 8 medium-sized hill lakes ARDP aims at improving rural infrastructure with a view to increase agricultural productivity as well as to build the capacity of local actors for managing and maintaining rural infrastructure while ensuring environmental sustainability. Within this framework, the EU Delegation, MoA and the Green Plan signed a grant contract for the construction of 8 medium-sized hill lakes and for providing help to farmers and cooperatives to manage irrigation networks and to adequately use modern irrigation systems (the Action). This Action is expected to contribute to improve the livelihoods and income of approximately 230 farm households by increasing the quantity and quality of their agricultural production through the development of 8 pilot medium-sized hill-lakes; and by building the capacity of local farmers to maintain irrigation and water harvesting works. The Action is co-financed by ARDP (EU contribution 1.9 Million) and managed by the Green Plan. Enhancing Laboratories Performance Laboratories Rehabilitation One of the aims of ARDP is building capacities within MoA and increasing productivity of local agriculture through the development of a sustainable use of natural resources, improved agricultural extension and education, and strengthened agricultural research and laboratories. In this framework, ARDP has funded works to rehabilitate the Kfarshima Laboratory and a supply tender to upgrade the MoA s laboratories by procuring technical and analytical equipment, as well as relevant technical agricultural and veterinary tools for the following: 1. Kfarshima: Pesticides formulation, Residues and Veterinary drugs formulation Laboratory; 2. LARI Fanar Antibiotic Residue Laboratory; 3. LARI Tell Amara Fertilizers Laboratory; 4. LARI Kaferdan Quality Seed Laboratory; 5. MoA Agricultural Schools; 6. MoA Agricultural and Forestry Centres. In addition, specialised training has been provided to selected staff of the Kfarshima Laboratory to prepare it for ISO qualification. Training session at Kfarshima laboratory

8 Page 8/8 Improving the Performance of the Ministry of Agriculture E U h e l p s b u i l d i n g t h e i n s t i t u t i o n a l c a p a c i t i e s o f M o A Signing Ceremony with FAO Training in field inspection for export certification Improve Plant Protection, Animal Health and Food Safety ARDP provides technical assistance to MoA for strengthening the capacities of the Phytosanitary service for import/export of plants and plant products and Quarantine Veterinary service to: i) improve food safety, plant protection and animal health; ii) achieve better efficiency at quarantine border control posts; iii) update legislation to meet EU regulations and international standards; iv) enhance consumer protection. Upgrading ICT Equipment ARDP funded the supply to MoA s Kfarshima Laboratory; LARI s Fanar, Tell Amara and Kaferdan Laboratories; MoA Agricultural and Forestry Centres; and MoA Agricultural Schools of the following goods: Communication, servers upgrading and networking Wide and local area networks (passive and active component) and related software to link the MOA HQ with the 29 Agricultural Centres, 35 Forestry Centres and 7 Agricultural Schools. Upgrading the current devices in MOA s Data Centre. Server application and operating system upgrading to latest released version. Agricultural Management Information System (AMIS) ARDP supports MoA to improve its Management Information System (AMIS), increasing the level of automation and developing a portal that integrates all applications, databases and Document Work Flow (DWF). Agricultural Statistics ARDP concluded in November 2013 a contribution agreement with FAO for 36 months to support MoA in strengthening and modernizing its agricultural statistical system. The total budget of the action is of 794,000, of which 648,000 is covered by the EU/ARDP grant. 1 ARDP Objectives and Components 2 3 The Strategy: Sustained Commitment by the Ministry of Agriculture. Launching Ceremony at the Grand Serail Increased Resources to Develop Agriculture 4 Strengthening the Agricultural Sector 5 Credit to Sustain Rural Development 6 EU Helps Lebanon s Forestation Efforts 7 8 Inside this issue Support to Irrigation and Laboratories Improving the Ministry of Agriculture s Performance T h i s p u b li c a t i o n h a s b e e n p r o d u c e d w i t h t h e s u p p o r t o f th e E u r o p e a n U n i o n. T h e c o n t e n ts o f th i s p u b l i c a ti o n a r e t h e s o l e r e s p o n s ib i l it y o f t h e A R D P a n d c a n in n o w a y b e t a k e n to r e f l e c t t h e v i e w s o f t h e E u r o p e a n U n io n.