INTEGRATED SAFEGUARDS DATA SHEET
CONCEPT STAGE
Report No.: AC340
Date ISDS Prepared/Updated: November 17, 2003
I. BASIC INFORMATION
A. Basic Project Data
Country: Colombia
Project Name: Rural Diversification
Estimated Appraisal Date: April 19, 2004
Project ID: P082167
Task Team Leader: Matthew A. McMahon
Loan/Credit amount ($m.):
IBRD: 30
Estimated Board Date: June 15, 2004
Managing Unit: LCSER
Lending Instrument: Adaptable Program
Loan
Sector: General agriculture, fishing and
Theme: Rural services and infrastructure
forestry sector (100%)
(P);Rural non-farm income generation
(S);Rural policies and institutions (S)
Safeguard Policies Specialists in the task team: Ann Jeannette Glauber
Other financing amounts by source:
($m.)
B. Project Objective
Program Objective: Support the transition of the rural sector towards a more competitive and
efficient sector, while reducing poverty through increased productivity of the smallholder
(campesino) sector and increased rural employment, as well ensuring the sustainable use of
natural resources.
Project Objective: Support the development of an institutional platform to enable the transition
to a more competitive sector, as well as enhancing the knowledge and innovation system for
competitiveness, and improving access to factors of production such as land and finance.
3. Preliminary project description
a. What are the alternative development interventions or approaches being considered? If an
approach is favored, what is the rationale for it? The project team, together with the GOC,
weighed short-term versus long-term interventions. Likewise, a proposal to limit the first phase
of the idea of the APL to only technical assistance – with the goal of improving the policy and
institutional framework – was also considered. However, a long-term program to support the
transition to a more competitive sector was selected by the GOC as a means to support
incremental but consistent efforts, as well as the need for time to strengthen rural institutions.
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The project design is based on an intense internal discussion within Colombia, the finding of the
July 2003 identification mission, the three recently completed ESW and lessons learned from
Bank-financed projects and other donor-financed activities in Colombia.
b. What lending instrument is proposed and why; or what alternative instruments are being
considered? An APL is proposed by the Task Team in consultation with the GOC. Two specific
project loans were considered in place of an APL; however, this latter approach would
potentially lead to a more fragmented intervention, lacking in a sector wide vision which is
critical to support the transition towards a more competitive rural sector.
c. If the proposed operation is to support a sector program, what would be the key elements of
the program and how would the proposed project fit into it? The transformation of the
agriculture and rural sector of Colombia requires a long-term sustained effort in terms of locallevel investments, institutional/policy reform and technical assistance. The APL will be
instrumental in supporting this long-term transition. The activities of the first phase are seen as
building blocks for subsequent phases of the program, where further actions and larger
investments in the sector are envisaged.
d. What project components are being considered? Can indicative costs be identified? The
project is composed of three components, including:
(A) Market and Institutional Development. This component will assist in creating the
institutional and market conditions necessary for increased competitiveness. It will finance:
(i) the establishment of a system of Centros Provinciales de Gestión Empresarial aimed at
strengthening the competitiveness of the small farm sector through, inter alia, the
organization of local value chains, the preparation of business plans and the identification of
support needs of the farmers participating in the chains; (ii) the strengthening of municipal
technical assistance units through a system of technical support, training and monitoring;
(iii) the provision of technical assistance to lay the foundation for the newly created Instituto
Colombiano de Desarrollo Rural; and (iv) the enhancement of agricultural trade through
programs to facilitate the identification and access of Colombian agricultural and agroindustrial products to foreign markets and support for international market negotiations.
(B) Enhancing the knowledge and innovation system for competitiveness. This component will
strengthen the knowledge system required for increased competitiveness. Activities
include: (i) establishment of priorities at the national and regional level for agriculture and
agro-industry research and innovation related to the transition to a more competitive
agriculture as well as to strengthen production chains; (ii) strategic research of potential
importance to sub-sectors which have particular comparative advantages within national
and/or international markets (e.g., biotechnology, building upon advances made in the
coffee sector), and (iii) development of markets for services essential to strengthen
competitiveness (e.g., certification mechanisms, protection of intellectual property,
biosafety).
(C) Access to productive services and assets. During the first phase of the APL, activities will
focus on improving access to land to smallholders and provision of rural finance. It will
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finance activities oriented at increasing land access by: (a) promoting alternative means to
increase access to land (e.g., targeted subsidies, pilot projects); (b) supporting existing
programs which increase access of young farmers to land and complementary services
(Programa de Jóvenes Caficultores); and (c) development of a strategy and action plan to
improve land tax collection, thereby stimulating land markets at the municipal level. In
terms of rural microfinance area, the project will (i) help to develop pilot experiences in the
use of microfinance approaches in rural areas, new lending instruments, and the
mobilization of rural savings; and (ii) assist FINAGRO in taking up new responsibilities as
a development agency in rural finance, in contrast to merely serving as a financial agency.
e. What issues are there at this stage, if any, regarding possible partnerships and co-financing
with other international agencies? Building upon the work carried out in the Land ESW,
USAID has expressed interest in supporting land-related activities. Similarly, activities related
to rural microfinance would build upon current IFAD-financed activities.
D. Project location (if known)
The Program will have a national coverage, however, specific geographical areas that will be
covered during the first-phase of the project, especially under the component Improving Access
to Land, will be defined during project preparation.
E. Borrower’s Institutional Capacity
MADR has a solid experience in implementing Bank-financed projects and there has not been
shortage of capable professionals. A capable preparation team is already in place.
II. SAFEGUARD POLICIES THAT MIGHT APPLY
Applicable?
[X ]
[]
[ X]
Safeguard Policy
If Applicable, How Might It Apply?
Environmental Assessment (OP/BP 4.01)
Natural Habitats (OP/BP 4.04)
Pest Management (OP 4.09)
[]
Involuntary Resettlement (OP/BP 4.12)
[]
Indigenous Peoples (OD 4.20)
[]
Forests (OP/BP 4.36)
[]
Safety of Dams (OP/BP 4.37)
[]
Cultural Property (draft OP 4.11 - OPN 11.03)
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[]
Projects in Disputed Areas (OP/BP/GP 7.60)*
[]
Projects on International Waterways (OP/BP/GP 7.50)
Environmental Assessment Category:
[ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined)
If TBD, explain follow-up and calendar/steps for the determination of the category:
Safeguard Policies Classification:
[ ] S1 [X] S2 [ ] S3 [ ] SF [ ] TBD (to be determined)
If TBD, explain follow-up and calendar/steps for the determination of the classification:
III. ACTIONS DURING PROJECT PREPARATION
A. What actions might be needed during project preparation to assess safeguard issues
and prepare to mitigate them?
Environmental and social assessments will be carried out to identify possible impacts of the
project. These will be used to adapt mitigation measures, if necessary. The project aims to
promote and support safe, effective, and environmentally sound pest management.
B. How might consultation and disclosure requirements be addressed?
During the preparation of the project, consultations will be conducted. Following the Bank’s
Amended Disclosure policy, all relevant documents will be made available prior to the start of
appraisal.
IV. AGREEMENTS REACHED ON SAFEGUARDS AT PCN REVIEW
Agreed target date for Quality Enhancement Review: Third quarter of FY2004.
*
By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the
disputed areas
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