AFRICAN DEVELOPMENT FUND

PROJECT : FISHERIES SECTOR SUPPORT PROJECT

COUNTRY : ANGOLA

APPRAISAL REPORT

OSAN DEPARTMENT

April 2013

Appraisal Team

Regional Director : Mr. C. OJUKWU, Director, ORSB

Sector Director : Mr. A. BEILEH, Acting Director, OSAN

Division Manager : Mr. K. JOHM , Division manager, OSAN.4

Team Leader : Mr. F. MARTTIN, Senior Fishery Officer, OSAN.4

TABLE OF CONTENTS

I STRATEGIC THRUST AND RATIONALE 1

1.1 Project linkages with country strategies and objectives 1

1.2 Rationale for Bank’s involvement 2

1.3 Donor coordination 2

II PROJECT DESCRIPTION 3

2.1 Project components 3

2.2 Technical solutions retained, other alternatives explored 5

2.3 Project Type 6

2.4 Project costs and financing arrangements 6

2.5 Project Target Areas and Beneficiary population 8

2.6 Participatory process for identification, design and implementation 9

2.7 Bank Group experience, lessons learnt in project design 9

2.8 Key Performance Indicators 10

III PROJECT FEASIBILITY 10

3.1 Economic and Financial Performance 10

3.2 Environmental and Social Impacts 11

IV IMPLEMENTATION 13

4.1 Implementation Arrangements 13

4.2 Monitoring & Evaluation 15

4.3 Governance 16

4.4 Sustainability 16

4.5 Risk Management 17

4.6 Knowledge Building 18

4.7 Bank’s Field Office 18

V LEGAL INSTRUMENTS AND AUTHORITY 18

5.1 Legal instrument 18

5.2 Conditions associated with Bank’s intervention 18

5.3 Compliance with Bank policies 19

VI RECOMMENDATION 19

Appendix I Country’s comparative socio-economic indicators

Appendix II Table of AfDB’s portfolio in the country

Appendix III Similar projects financed by the Bank and other development

partners in the Angola

Appendix IV Map of Angola showing project areas

Appendix V Project sites

i

Currency Equivalents

As of July 2012

UA=USD 1.55644 July 2012

Fiscal Year 01 January – 31 December

Weights and Measures

1 metric tonne = 2204 pounds (lbs)

1 kilogramme (kg) = 2.200 pounds (lbs)

1 metre (m) = 3.28 feet (ft)

1 millimetre (mm) = 0.03937 inch (“)

1 kilometre (km) = 0.62 mile

1 hectare (ha) = 2.471 acres

ii

ABBREVIATIONS AND ACRONYMS

AfDB : African Development Bank

ADF : African Development Fund

AFDEP : Artisanal Fisheries Development Project

AWPB : Annual Work Plan and Budget

CAS : Catch and Effort Assessment Survey

CDC : Community Development Committee

CEFOPESCAS : Fisheries Training School (Centro de Formação Profissional de Pescas)

CPA : Fish Landing Site (Centros de Pesca Artisanal)

CSP : Country Strategy Paper

EIA : Environmental Impact Assessment

EIRR : Economic Internal Rate of Return

ESMP : Environmental and Social Management Plan

EU : European Union

FAO : Food and Agriculture Organization of the United Nations

FIRR : Financial Internal Rate of Return

FSSP : Fisheries Sector Support Project

GDP : Gross Domestic Product

GoA : Government of Angola

GPN : General Procurement Notice

HACCP : Hazard Analysis and Critical Control Points

ICB : International Competitive Bidding

INAPIT : Instituto de Apoio as Indústrias de Pescas e Investigação Tecnológica

IPA : National Institute for Development of Artisanal Fisheries and

Aquaculture (Instituto da Pesca Artesanal e da Aquicultura)

LDF : Local Development Fund

MCS : Monitoring, Control and Surveillance

MoF : Ministry of Fisheries

MTR : Mid Term Review

M&E : Monitoring and Evaluation

MFI : Micro-Finance Institution

MPA : Marine Protected Area

NCB : National Competitive Bidding

NGO : Non-Government Organization

NPV : Net Present Value

O&M : Operation and Maintenance

PCR : Project Completion Report

PHL : Post-Harvest Losses

PIO : Project Implementation Office

PIP : Public Investment Programme

PRSP : Poverty Reduction Strategy Paper

PSC : Project Steering Committee

SBD : Standard Bidding Documents

UNDB : UN Development Business

USD : United States Dollar

VMS : Vessel Monitoring System

WFP : World Food Programme

iii

Loan Information

Client’s information

LOAN RECEPIENT : REPUBLIC OF ANGOLA

EXECUTING AGENCY : MINISTRY OF AGRICULTURE, RURAL

DEVELOPMENT AND FISHERIES

Financing plan

Source Amount (UA million) Instrument

ADF 20.00 Loan

Government Contribution 5.49

Other n/a

TOTAL COST 25.49

ADB’s key financing information

Loan / currency

(UA)

Interest type* n.a.

Interest rate spread* 1%

Commitment fee* 0.5% undisbursed balance

Other fees* 0.75% Service Charge per year on the disbursed

and outstanding amount

Tenor 30 Years

Grace period 8 years

FIRR, NPV (base case) (19.49%, NPV US$234.0 million)

EIRR (base case) (22.04%)

*if applicable

Timeframe - Main Milestones (expected)

Concept Note approval

01/11/2011

Project approval 03/07/2013

Effectiveness 01/09/2013

Mid Term Review 01/01/2016

Infrastructure construction completed 01/08/2016

Completion 01/01/2019

Last Disbursement 30/06/2019

iv

Project Summary

Section Description

Project

overview

The Fisheries Sector Support Project will increase incomes of small scale

fishers and traders (mostly women) through marked improvements in the

fish landing and handling facilities thereby reducing post-harvest losses

and improving quantity and quality of fish landed and traded. It will be

implemented in coastal communities of Gilco, Yembe, Egipto Praia,

Salinas Sumbe, Dambe Maria and Ambriz. Key expected outputs are: 4

landing sites constructed, 2 landing sites rehabilitated, 10 landing sites

with additional works completed. 20 % reduction of Post-Harvest Losses.

The project will cost UA 25.49 million and will be implemented over a 5

year period.

Beneficiaries The direct beneficiaries are the fishing population of over 10,000 at the

project sites including women who constitute 80% of small scale fish

processors and traders. The project will also be of benefit to ancillary

trades such as boat repair, net mending, transportation, petty trade and

overall economic activities in the project areas.

Needs

Assessment

Currently the estimated post-harvest losses at project sites are more than

7,000mt/yr valued at about US$ 7 Million. The coastal population is poor

and vulnerable, as alternatives to fishing are scarce. Monitoring, Control

and Surveillance capacity in the artisanal fisheries is weak, as is the

capacity to manage landing sites and their infrastructures, hampering the

sustainable management of Angola’s marine resources.

Bank’s

Added Value

The Bank’s added value is from the experience and knowledge generated

from the implementation of the AFDEP which was completed in 2011. In

addition, the Bank has accumulated experience through the successful

implementation of its fisheries portfolio in 23 African countries covering

capacity building, fisheries infrastructure development and management,

quality assurance and environmental safeguards. Lessons learned include:

management of fishery infrastructures should be addressed from the

beginning of the project, project implementation should be anchored in

government structures, credit for fishing and fish marketing has a weak

record in most Bank supported fishery projects, procurement and

disbursement arrangements need to be tailored to the special conditions of

Angola.

Knowledge

Management

The project will generate useful knowledge in community and private

sector management of fish landing sites. It will further provide useful pilot

experience in fish quality control and improvement, as well as on

monitoring, control and surveillance which can be replicated over the

entire coast. This knowledge will be captured and disseminated through

regular project implementation reports.

v

ANGOLA Fisheries Sector Support Project

Result-Based Program Matrix

Country and project name: Angola: Fisheries Sector Support Project

Purpose of the project: Increase income of fishing communities through investments in fishery infrastructure and their management (including marine resources

management and safety at sea)

RESULTS CHAIN PERFORMANCE INDICATORS

MEANS OF VERIFICATION

RISKS/MITIGATION MEASURES Indicator

(including CSI) Baseline Target

IMP

AC

T

Poverty reduced and food security increase

among the Angolan population

Proportion of coastal people

below the poverty line (sex disaggregated)

54.3% (to be

confirmed by the baseline

survey)

Proportion of coastal people

below poverty line reduced by 10%

Government ,MARDF

MFI reports, Baseline

survey

Risks: Due to the global economic crisis and the rising food prices poverty

reduction and food security increase is hampered Mitigation measures: Dependence on the global market for income of fishing

communities will not be increased by focusing on local (and regional) markets

development Percentage of Underweight Children (Children under

the age of 5 years)

15.6% (to be confirmed by

the baseline

survey)

Percentage of Underweight children reduced by 20% at

landing sites covered by the

project

OU

TC

OM

ES

Increase of fishers and fish processors income % Increase of income of

fishers (sex disaggregated)

% Increase of income of

fish processors (sex

disaggregated)

70

USD/month

55

USD/month

(both to be confirmed by

baseline

survey)

20 % increase of income of

fishers and fish processors at

landing sites covered by the

project Project, Government, MFI reports, Baseline survey

Risks: Encroachment by industrial fleet in the artisanal fishing zone, resulting

in destruction of gear of the artisanal fleet and depletion of fish stocks.

Mitigation measures: The project will ensure Monitoring, Control and

Surveillance will improve. Fishers at selected landing sites will be trained in

fisheries management, including the need for enforcement of management

measures. Communication channels with the Fisheries inspection units will be established, ensuring that sightings of illegal (industrial) vessels will be

reported by artisanal fishers and acted upon by the fisheries inspection service.

Increase safety at sea Reduction of lives lost 25 lives lost

per year

50% reduction Project, Government, MFI

reports

Improve sustainability of fishery management No. of incursions (illegal entries into the artisanal

fishery zone) per year Frequent

(daily)

50% reduction of incursions at

MCS-covered sites

Gvt reports, project

reports

Reduction of Post-Harvest Losses (value) % reduction of Post-Harvest Losses (value)

7 000 mt per year (to be

confirmed by

baseline survey)

20 % reduction of Post-Harvest Losses at landing sites covered

by the project

vi

1) Sustainable exploitation of marine fishery

resources through Monitoring, Control & Mgmt.

1.1) Monitoring, Control and Surveillance

infrastructure provided

Coverage of inshore area by

VHF MCS system, no. of

towers built 0

4 towers built and system in place

Project reports

No. of vessels equipped with

a vessel tracker unit

0 100 fishing vessels equipped

with vessel tracker units

Risk: Fishers unwilling to install vessel trackers as they are unclear about the

purpose of the tracker

Mitigation measure: Ensure that fishers are aware of the purposes of the vessel tracker through training and meetings at landing sites

Reduction of lives lost 25 lives lost

per year

50% reduction Project, Government, MFI

reports

No. of incursions (illegal

entries into the artisanal fishery zone) per year

Frequent

(daily)

50% reduction of incursions at

MCS-covered sites

Government reports,

project reports

No. of HACCP systems

implemented at landing sites 0 16 Project reports

OU

TP

UT

S

No. of fish quality samples

taken and tested 0 50 samples/week Fishery product quality

inspection reports

1.2) Marine fishery resource management improved

Number of functioning fishery resource

management committees at

project sites (with a minimum participation of

50% of women)

0 16

Project reports

Fishery Resource Management Plans (16)

Risk: Fishers do not participate, because not convinced about the benefits of management.

Mitigation measure: The project will educate fishers of the benefits of

sustainable fisheries management, ensuring fair representation of all stakeholders involved.

1.3) Fishery monitoring improved National frame survey,

Catch and effort assessment

survey established at sites

Socio-economic survey at

sites (sex-disaggregated)

1 (1995),

None

none

1 (2013)

4 sites

16 sites

FAO generated Project

reports

Risk: Fishers unwilling to cooperate with data collection, because of fear

(taxes for instance), Fishers not convinced of the benefits of data collection, Data collection activities not sustainable, because of unavailability of

sufficient resources after project closure allocated

Mitigation measure: Educate fishers on the benefits of data collection, assure that data collected will be used in fishery resources management, through

participation of communities in data collection systems cost of data collection

will be reduced

2) Fishery Infrastructure Development

2.1) Landing sites constructed at project sites Number of Landing sites

constructed

0 4 landing sites constructed and in

use by at least 40 vessels to land their catch at project end

Project reports

Fishery Infrastructure

Management Plans (16)

2.2) Existing landing sites enhanced with

infrastructure such as fuel pumps, community

meeting places, kindergarten

Number of landing sites

improved

0 12 landing sites enhanced and in

use by at least 40 vessels to land

their catch at project end

2.3) Sustainable management of landing sites

(infrastructure) established

Number of landing sites with

fishery infrastructure management established

(with a minimum

participation of 50% of women)

0 16 landing sites with sustainable

management established (including marine resources

management fishery information

system and safety at sea)

vii

3) Project Management

3.1) Timely and cost effective Project

Management

Quarterly progress reports

submitted timely

MTR ESMP

Supervision

Audit report Procurement plan

Annual work plan

Disbursement rate

1 each quarter; 4 per year

1 MTR report ESMP Clearance certificates

2 supervision missions per year

6 months after financial year 1 per year (valid for 18 months)

1 per year (valid for 18 months)

Average 20% per year (KPI)

Project reports

KE

Y A

CT

IVIT

IES

COMPONENTS INPUTS

Component 1: Sustainable exploitation of marine fishery resources through Monitoring, Control and Management

1.1 Monitoring, Control, and Surveillance

1.2 Fishery resource management improved

1.3 Fishery monitoring

Component 1: 5.81 Million UA

Component 2: Fishery Infrastructure Development

2.1 Construction of artisanal fish landing sites/centers (– CPA) 2.2 Expansion of infrastructure at existing CPAs

2.3 Establishment of landing site management

Component 2: 14.88 Million UA

Component 3 : Project Management

3 1 Timely and cost effective Project management Component 3: 4.80 Million UA

Total 25.49 Million UA

viii

ANGOLA

FISHERIES SECTOR SUPPORT PROJECT Project Timeframe

1

REPORT AND RECOMMENDATION OF THE MANAGEMENT TO THE BOARD

OF DIRECTORS ON A PROPOSED LOAN TO ANGOLA FOR THE FISHERIES

SECTOR SUPPORT PROJECT

Management submits the following Report and Recommendation on a proposed loan for UA

20.00 million to be repaid in 30 years, including a grace period of 8 years, with a

commitment fee of 0.5%, other fees of 0.75% and a fixed interest rate of 1.0% p.a.to finance

the Fisheries Sector Support Project in Angola.

I. STRATEGIC THRUST AND RATIONALE

1.1 Project linkages with country strategies and objectives 1.1.1 Angola has a long-term vision document entitled Angola Visão 2025, with four

overarching objectives, as follows: (i) promotion and acceleration of growth and

competitiveness through economic diversification; (ii) poverty reduction through human

capital development and targeted interventions, specifically through private sector job

creation; (iii) balanced growth and harmonized development alongside natural resource

protection; (iv) achievement of all of the above by an efficient and accountable government,

with emphasis on institutional strengthening and human capacity development.

1.1.2 The Angola Country Strategy Paper (CSP) aligns the Bank Group’s corporate

strategy with the Government’s strategy aiming to achieve economic diversification through

non-oil private sector led growth to create employment and promote poverty reduction. The

CSP articulates the Bank’s engagement across two pillars: (i) Stimulus to the

competitiveness of the economy; and, (ii) Support to Economic Infrastructure Development.

1.1.3 The project seeks to achieve a reduction of post-harvest losses, and an increase in

fishers’ income through: (i) construction of new fish landing sites, (ii) enhancement of

existing fish landing sites, (iii) sustainable management of the established fish landing sites

and provision of sustainable marketing strategies which are all embedded in Pillars 1 and 2

of the CSP. The project outcomes and outputs address the areas mentioned in the broad

economic and development strategy pursued by the Government, and address both pillars of

the Bank’s Agriculture Sector Strategy through the development of fisheries Monitoring,

Control and Surveillance (MCS) and landing site infrastructure, and through capacity

building with respect to sustainable use of marine resources. The project will create

employment with stable supplies of quality fishery products at the landing sites (through cold

storage and availability of ice). More people will be engaged in processing and

transformation of fishery products. Local trade will increase as a result of the aforementioned

reasons. In total, an increase of 2,000 additional jobs directly related to the landing sites

(management of the landing sites, increased trade, processing, marketing) are expected to be

created. The FSSP will therefore build economic infrastructures (cold storage, ice machines,

and processing areas), while sustainably managing this important natural resource.

1.1.4 The strategies adopted by the Angolan Government for the development of the

fishery sector aim to: organize and modernize the semi-industrial and industrial fishing fleet

and fish processing industries; support sustainable exploitation of the continental and

maritime artisanal fishery; development of inland and marine and inland aquaculture; create

infrastructure for fish landings and conservation; improve the fish distribution chain for

frozen, salted and dried fish; and, improve the fish quality assurance and inspection system.

2

1.2 Rationale for Bank’s involvement

1.2.1 The objective of the project is to increase the income of artisanal fishery communities

through investments in fishery infrastructure and sustainable management of the resource.

The Bank has successfully implemented a similar project in Angola, with positive outcomes.

The project sites supported through the previous project are currently being used. Key

lessons learned were that the management of infrastructures should be addressed at project

inception, staff retention should be a priority, official documents should be translated into

Portuguese, and baseline surveys should be carried out to measure impacts.

1.2.2 The Bank is in a unique position to succeed with the project, as it has experience with

the implementation of similar fisheries projects in 23 countries in Africa covering capacity

building, fisheries infrastructure development and management, quality assurance and

environmental safeguards. Lessons learned from these projects, like management of fishery

infrastructures should be addressed from the beginning of the project, project implementation

should be anchored in government structures, credit for fishing and fish marketing has a weak

record in most Bank supported fishery projects, procurement and disbursement arrangements

need to be tailored to the special conditions of Angola, have been taken into account during

the design of the FSSP.

1.3 Donor coordination

1.3.1. Donor activity in Angola has shifted in the last two years to an increased presence in

cross-cutting areas such as environment, decentralization, private sector development, and

regional integration. The major donors in Angola are the European Union, USAID, World

Bank, Italy and Norway. These donors focus on Health, Agriculture/Rural development,

Water, Infrastructure, Civil Society, Fishery Research and Human Rights.

1.3.2 While there is no formal donor coordination mechanism, an informal donor network

exists, through a thematic working group that meets as and when needed to discuss different

sectors (such as Social, Energy, Transport). With the opening of its field office in Angola, the

Bank aims to play a significant role in this working group.

1.3.3 There is no other major donor involvement in the project locations, apart from the

Bank financed Sumbe Water Supply, Sanitation and Institutional Support Project

(SWSSISP). Through cooperation between SWSSISP and the FSSP, potable water will be

provided to the Sumbe-Salinas landing site.

3

Table 1.1: Overview of Major Donor assistance in Angola

Sector or subsector Size

GDP Exports Labour force

Agriculture and

Fisheries sector

21.1% 5% 50 000 people

Players public annual Expenditure (2008 – 2011) average

Donors USD %

EU 64.0 33.26

USAID 44.5 23.13

World Bank 35.8 18.61

Italy 26.2 13.62

Norway 21.9 11.38

Total 192.4 100

Level of Donor Coordination

Existence of thematic Working Group Y

Existence of SWAPs or Integrated Sector Approaches N

ADB’s Involvement in donor coordination *** M [L/M/none]****

*As most appropriate ** Years [yy1 to yy2] ***for this sector or sub-sector

****L: leader, M: member but not leader, none: no involvement.

II. PROJECT DESCRIPTION

2.0.1 The sector goal of the project is to support sustainable exploitation of maritime

artisanal fishery; to create infrastructure for fish landings and conservation; improve the fish

distribution chain for frozen, salted and dried fish; and, improve the fish quality assurance

and inspection system in line with the overall sector objectives formulated by the

Government of Angola. The purpose of the project is to increase the income of artisanal

fishing communities through investments in fishery infrastructure and its management

(including marine resources and safety at sea)

2.0.2 The specific objective of the project is the reduction of Post-Harvest Losses and the

increase of fishers’ income through (i) Construction of new fish landing sites, (ii) Increasing

the community support function of fish landing sites, (iii) Establishment of sustainable

management of the fish landing sites, (iv) Monitoring, Control, and Management of the

artisanal fishing fleet and associated marine resources at the fish landing sites, (v)

Improvement of the management and monitoring of fishery resources.

2.1 Project components

2.1.1 The project is structured into three components: (A) Fishery Monitoring, Control and

Management; (B) Fishery Infrastructure Development; and, (C) Project Management. The

project will build four new Artisanal Fish Landing sites and improve the feeder roads to two

of these sites. Facilities provided at the landing sites will include cold storage, ice making

machines, and fish processing facilities, which are currently not available at the selected sites.

With these facilities and their proper management, post-harvest losses (currently estimated at

30% or around 7,000 mt) will be reduced. These landing sites will be managed according to a

management plan to be developed during the first year of the project.

4

2.1.2 A Vessel Monitoring System (VMS) will be installed in at least two sites (Egipto

Praia, Yembe), to enable the GoA to review options to increase the safety at sea for artisanal

fishers, and to manage fishery resources in a more sustainable manner. Two sites will be

rehabilitated (Ambriz and Dambe Maria) including putting in place a management system.

2.1.3 The ten sites of the Artisanal Fisheries Development Project (AFDEP) will be

supported with the installation of a fuel pump to reduce the burden of fishers to collect fuel

from fuel points far away their landing sites, and to increase the feasibility for private

management of the fishery infrastructure. With the provided facilities at the project fish

landing sites, traders will be sure of availability of (high quality) product at the sites. This

will therefore solidify the access of the involved fishing communities to markets. The two

feeder roads to Yembe and Egipto Praia will ensure year round access of traders to the fish

landing sites (the other sites are already accessible throughout the year).

2.1.4 The project does not aim to increase the total volume of landed fish, but aims at

reducing the quality losses after capture. Angola knows three quality categories (I, II, III)

with different pricings. Category I fetches the highest price, these are high-priced species

with a high quality. If the quality of the fish degrades, it will be classified one or two classes

lower according to the level of deterioration. The price of Category II is approximately 25%

of the Category I price.

2.1.5 Much of the fish at the selected landing sites is distributed in fresh form to the

domestic market. Currently, there is a significant quality (and therefore price-) loss in the

value chain caused by a lack of knowledge and skills in this respect. The project will address

these losses in quality through different actions; infrastructures (cold-rooms and ice making

machines) at project sites will prevent quality loss, and fishers/processors will be trained in

quality preservation and Post-Harvest Loss reduction techniques. Processors will also be

trained in appropriate transformation techniques, like fish salting, smoking and drying, while

others will learn to process slaughter waste into valuable fish meal, which can be used as a

component in animal feed.

2.1.6 The increased quality of the product will result in increased nutritional value for

consumers. The total monetary value of landed products (fish) will increase by at least ten to

fifteen per cent (10 – 15%). This increase will benefit fishers, processors and traders.

2.1.7 The direct beneficiaries are the fishing population of over 10,000 at the project sites

including women who constitute 80% of small scale fish processors and traders. Fishers will

receive more income (around 20%) through reduced post-harvest losses. The project will also

be of benefit to ancillary trades such as boat repair, net mending, transportation, petty trade

and overall economic activities in the project areas.

5

Table 2.1: Project Components

Component Costs

(UA mill)

Description

A

Fishery Monitoring,

Control and

Management 5.81

National Artisanal Fishing Vessel Frame Survey, including

socio-economic information done at the beginning of the project,

and at the end of the project, so that progress of Key

Performance Indicators can be followed

Artisanal Catch and Effort Assessment Survey System in place,

enabling IPA to make a reliable estimate of the production of the

artisanal fisheries sector

Institutional capacity building of IPA and the Ministry (fishery

management, data collection and management, infrastructure

management, languages) so that support with respect to the

landing sites is ensured after project completion

Awareness raising with respect to sustainable exploitation of

marine resources, through workshops/trainings at 16 sites

Management arrangements in place with respect to marine

resources attributed to 16 CPAs

VHF based Vessel Monitoring System established, through

placing at least two (2) VHF towers at Yembe and at Egipto

Praia, and providing all artisanal fishing vessels at those sites

with a vessel tracker

Implementation of the Environmental and Social Management

Plan

Support to the HACCP programme implemented by the Instituto

de Apoio as Indústrias de Pescas e Investigação Tecnológica

(INAPIT) and the National System of Inspection of Fishery

Products implemented by the National Direction of Fishery

Fish quality control, inspection, certification at Gilco landing

site, ensuring quality and safety of products entering the markets

HIV/AIDS awareness raising amongst fisher population

B Fishery Infrastructure

Development 14.88

Construction of four (4) artisanal fish landing sites/centers CPA

at Gilco, Yembe, Egipto Praia, and Salinas-Sumbe with ancillary

facilities and associated road works

Rehabilitation/improvement of two (2) landing sites at Ambriz

and Dambe Maria

Additional infrastructure at ten (10) CPAs supported during

AFDEP

Sustainable Management of the sixteen (16) CPAs, either

through private sector management, or other management

options

C Project Management 4.80

Planning, management, coordination and implementation of

project activities

Monitoring and evaluation

Provision of technical assistance

Procurement of relevant office equipment and vehicles

TOTAL 25.49

2.2 Technical solutions retained other alternatives explored

2.2.1 The design of the project follows the design of the AFDEP, with a shift in focus

towards greater private sector engagement. Alternative approaches could have been: support

to fishery research, or support of the industrial fisheries sector. These were not chosen, as

other donors are supporting fishery research.

6

Table 2.2: Project alternatives considered and reasons for rejection

Alternative Name Brief Description Reasons for Rejection

Fishery Research Through research providing

information for the sustainable

management of the marine

aquatic resource

Angola receives already support in this field, through

the SAP-Imp project and through the EAF-Nansen

project (supported by NORAD)

Industrial

Fisheries

Supporting the

construction/rehabilitation of a

fishing port

No direct impact for poverty alleviation

2.3 Project Type

This is a stand-alone project following up on an earlier intervention, the Artisanal Fisheries

Development Project, which was funded by the Bank in 2002. The AFDEP project was

successfully completed in 2011.

2.4 Project costs and financing arrangements

2.4.1 Project Costs: The total costs for the project, is estimated at UA 25.49 Million,

comprising 64% in foreign cost and 36% in local costs. Physical and price contingencies

were estimated at 7% and 10%, respectively based on actual and projected levels of local and

foreign inflation rates. Physical contingencies are low given the information available from

completed civil works and goods purchased in the former fisheries project. A summary of the

project cost estimates by components and expenditure accounts is shown in Tables 2.3 and

2.4 below, while details are captured in the annexes.

Table 2.3:

Fisheries Sector Support Project - Summary Costs by Components

COMPONENTS

US$ ‘000 UA ‘000 %

F.E

%

Base

Cost

Local

Currency

Foreign

Exchange Total

Local

Currency

Foreign

Exchange Total

Fishery Monitoring, Ctrl & Mgt 1 617,00 6 468,00 8 085,00 1 038,91 4 155,64 5 194,55 80 24

Fishery Infrastructure Dvpt 5 062,94 14 758,81 19 821,75 3 252,90 9 482,42 12 735,31 74 58

Project Management 4 329,09 1 704,71 6 033,81 2 781,41 1 095,27 3 876,67 28 18

Total BASELINE COSTS 11 009,03 22 931,53 33 940,56 7 073,21 14 733,32 21 806,53 68 100

Physical Contingencies 580,62 1 753,75 2 334,37 373,05 1 126,77 1 499,81 75 7

Price Contingencies 2 621,85 779,50 3 401,35 1 684,52 500,82 2 185,34 23 10

Total PROJECT COSTS 14 211,50 25 464,77 39 676,28 9 130,77 16 360,91 25 491,68 64 117

7

Table 2.4: Fisheries Sector Support Project - Summary Costs by Expenditure Accounts

EXPENDITURE

ACCOUNTS

US$ ‘000 UA ‘000

% F.E % Bc Local

Currency

Foreign

Exchange Total

Local

Currency

Foreign

Exchange Total

INVESTMENT COSTS 6 883,79 22 621,65 29 505,43 4 422,78 14 534,22 18 957,00 77 87

WORKS 3 982,44 11 947,31 15 929,75 2 558,68 7 676,05 10 234,73 75 47

Construction & Rehab. 1 048,13 3 144,38 4 192,50 673,41 2 020,24 2 693,65 75 12

Public Utilities 50,00 150,00 200,00 32,12 96,37 128,50 75 1

Roads 2 884,31 8 652,94 11 537,25 1 853,15 5 559,44 7 412,59 75 34 GOODS 793,35 1 888,65 2 682,00 509,72 1 213,44 1 723,16 70 8

Vehicles 56,25 168,75 225,00 36,14 108,42 144,56 75 1

Equipment 737,10 1 719,90 2 457,00 473,58 1 105,02 1 578,60 70 7 SERVICES 2 108,00 8 785,69 10 893,69 1 354,37 5 644,73 6 999,10 81 32

Training 765,00 765,00 1 530,00 491,51 491,51 983,01 50 5 Technical Assistance - 4 111,69 4 111,69 - 2 641,72 2 641,72 100 12

Contractual Services 1 263,00 3 789,00 5 052,00 811,47 2 434,40 3 245,87 75 15

Audit 80,00 120,00 200,00 51,40 77,10 128,50 60 1 RECURRENT COSTS 4 125,24 309,88 4 435,12 2 650,43 199,09 2 849,53 7 13 PERSONNEL 3 450,00 - 3 450,00 2 216,60 - 2 216,60 - 10 DSA 567,00 189,00 756,00 364,29 121,43 485,72 25 2 O&M 14,74 27,38 42,12 9,47 17,59 27,06 65 -

Equipment 4,69 8,71 13,40 3,01 5,60 8,61 65 - Vehicles 10,05 18,67 28,72 6,46 11,99 18,45 65 -

Infrastructures - - - - - - - - GOC 93,50 93,50 187,00 60,07 60,07 120,15 50 1

Total BASELINE COSTS 11 009,03 22 931,53 33 940,56 7 073,21 14 733,32 21 806,53 68 100

Physical Contingencies 580,62 1 753,75 2 334,37 373,05 1 126,77 1 499,81 75 7

Price Contingencies 2 621,85 779,50 3 401,35 1 684,52 500,82 2 185,34 23 10

Total PROJECT COSTS 14 211,50 25 464,77 39 676,28 9 130,77 16 360,91 25 491,68 64 117

Table 2.5:

Fisheries Sector Support Project - Summary Costs by Year (‘000 UA)

COMPONENTS 2013 2014 2015 2016 2017 TOTAL

Fishery Monitoring, Control & Mgt 2 413,07 1 171,95 1 133,38 570,62 520,17 5 809,18

Fishery Infrastructure Development 2 974,34 8 345,61 3 557,89 - - 14 877,84

Project Management 1 650,08 699,92 764,97 820,42 869,28 4 804,66 TOTAL 7 037,48 10 217,48 5 456,24 1 391,03 1 389,45 25 491,68

2.4.2 Project Financing: The Bank will provide a loan to the tune of UA 20.00 Million

from ADF XII resources, representing 78.50% of the project cost, excluding taxes and duties.

The ADF financing will be in the form of a loan. The remaining balance of the project costs

amounting to UA 5.49 Million or 21.50% of the total project cost will be covered by the

Government of Angola. The detailed breakdown of financing for the project has been

captured in Annex B2. A summary of the project costs financing estimates by source of

finance is shown in Tables 2.6, 2.7 and 2.8 below:

8

Table 2.6: Fisheries Sector Support Project - Financing Plan

Sources of Finance

FINANCING SOURCE (‘000 US$) (‘000 UA)

% Local Foreign Total Local Foreign Total

Government of Angola 6 690,69 1 856,79 8 547,48 4 298,71 1 192,97 5 491,68 21,5

ADF Loan 7 520,81 23 607,99 31 128,80 4 832,06 15 167,94 20 000,00 78,5

Total 14 211,50 25 464,77 39 676,28 9 130,77 16 360,91 25 491,68 100,0

Table 2.7:

Fisheries Sector Support Project - Financing Plan

Sources of Finance per component

COMPONENTS ADF Government Total

UA ‘000 % UA ‘000 % UA ‘000 %

Fishery Monitoring, Ctrl & Mgt 4 624,95 79,6 1 184,23 20,4 5 809,18 22,8

Fishery Infrastructure Development 14 460,85 97,2 416,98 2,8 14 877,84 58,4

Project Management 914,19 19,0 3 890,47 81,0 4 804,66 18,8 TOTAL 20 000,00 78,5 5 491,68 21,5 25 491,68 100,0

Table 2.8

Expenditure Accounts by Financiers (‘000 UA)

EXPENDITURE ACCOUNTS ADF % Government % Total %

INVESTMENT COSTS 20 000,00 91,7 1 813,31 8,3 21 813,31 85,6

WORKS 12 048,26 98,8 148,02 1,2 12 196,28 47,8

Construction & Rehab. 3 201,45 100,0 0,00 - 3 201,45 12,6

Public Utilities - - 148,02 100,0 148,02 0,6 Roads 8 846,81 100,0 0,00 - 8 846,81 34,7 GOODS 1 657,88 86,9 249,74 13,1 1 907,62 7,5

Vehicles 162,85 100,0 0,00 - 162,85 0,6 Equipment 1 495,02 85,7 249,74 14,3 1 744,76 6,8 SERVICES 6 293,87 81,6 1 415,55 18,4 7 709,42 30,2

Training 1 158,06 100,0 0,00 - 1 158,06 4,5

Technical Assistance 2 354,53 81,6 532,58 18,4 2 887,11 11,3 Contractual Services 2 626,11 74,8 882,97 25,2 3 509,08 13,8

Audit 155,17 100,0 0,00 - 155,17 0,6 RECURRENT COSTS - - 3 678,37 100,0 3 678,37 14,4

PERSONNEL - - 2 877,95 100,0 2 877,95 11,3 DSA - - 635,14 100,0 635,14 2,5 O&M - - 34,30 100,0 34,30 0,1

Equipment - - 11,03 100,0 11,03 -

Vehicles - - 23,27 100,0 23,27 0,1 Infrastructures GOC - - 130,98 100,0 130,98 0,5

TOTAL 20 000,00 78,5 5 491,68 21,5 25 491,68 100,0

2.5 Project Target Areas and Beneficiary population

2.5.1 The project target areas are the rural coastal communities of Gilco, Yembe, Egipto

Praia, Salinas-Sumbe, Ambriz, Dambe Maria (selected on the basis of daily fish catches,

fishing population and market coverage among others) and the ten (10) sites of the AFDEP.

The total number of the fishing population of these sites stands around 10,000. Currently,

about 80% of small scale fish processors and traders are women. The project outcomes for

this target group are the reduction of PHL and increased incomes. There will also be benefits

to ancillary trades such as boat repair, net mending and overall economic activities in the

project areas.

9

2.6 Participatory process for identification, design and implementation

2.6.1 Beneficiaries and other relevant stakeholders participated during the identification

(August 2010), preparation (September 2011) and appraisal (January 2012) of this operation.

At each potential project site, a meeting with local stakeholders was organized. During these

meetings an overview of the situation of the site was elaborated upon with the stakeholders

(number of people, number of vessels, species fished on, processing methods, etc). Based on

the overview, a fishery infrastructure needs assessment was conducted and an estimate of the

yearly production was made.

Landing site Processing

area

Ice

machine

Cold

storage

Quay Fuel

point

Road Management Yearly

production

(mt)

Gilco Y Y Y N Y N P 9460

Egipto Praia Y Y Y Y Y Y C 5924

Yembe Y Y Y N Y Y P/C 2974

Sumbe Y Y Y N Y N P 2750

Ambriz N R R N N N P 1342

Dambe Maria N R R N N N P 1162 Y = Yes, N = No, R = Rehabilitation, P =Private, C = Community

2.6.2 Communities expressed a strong desire for ice making machines, cold storage,

processing facilities, and improvement of the access road to allow communication in the

rainy season (Egipto Praia and Yembe). The communities were also assessed with respect to

their management capacities. The Angolan Institute for the Development of Artisanal

Fisheries (IPA) was part of the appraisal team and agreed with the sites proposed. All

stakeholders will be represented in the infrastructure management committees and the marine

natural resources management committees to ensure sustainability of project achievements.

2.7 Bank Group experience, lessons learnt in project design

2.7.1 Based on lessons learnt from the AFDEP, advance contracting will be used for the

procurement of services for the design and implementation of the baseline surveys (the frame

survey, including socio-economic indicators) and the design and supervision of the landing

sites. The artisanal fishery development project had problems in retaining staff, and therefore

not all positions required for project implementation were filled. With competitive

remuneration, staff will be retained and the Project Implementation Office (PIO) shall have

the full complement required to implement the project as detailed in paragraph 4.1.1.

2.7.2 Lessons learnt from the AFDEP in Angola and other AfDB fishery projects in Africa

include, but are not limited to (see also paragraph 1.2.25 of the technical annex): (i)

management of infrastructures should be addressed during the start of the project; (ii) staff

retention should be a priority; (iii) official documents should be translated into Portuguese;

(iv) baseline-surveys should be carried out at the beginning of the project; (v) project

implementation should be anchored in the government structures for sustainability purposes;

(vi) a comprehensive ESMP design and implementation is needed; and, (vii) credit for fishing

and fish marketing has a weak record in most Bank supported fishery projects, and was

therefore avoided. Procurement and disbursement arrangements need to be tailored to the

specific conditions of Angola with limited use of ICB/NCB for goods and services widely

available in the local market.

10

2.7.3 The Bank’s current portfolio performance has been weak. This was mainly due to

absence of local Bank representation, project units operating as almost autonomous units and

not being embedded in Government structures; weak internal controls with respect to

financial management; and weak capacity within the project implementation units with

respect to application of Bank’s procurement rules and procedures. In the design of the

proposed project, emphasis has been put on anchoring the project in the National Institute for

Artisanal Fisheries and Aquaculture (IPA). This will ensure a continuous exchange of

information on the project, and its implementation, and will ensure the sustainability of the

project. The FSSP will not have a Special Account for Bank resources, avoiding

disbursement issues in this respect. Once the project has started, its capacity with respect to

procurement and disbursement will be supported through dedicated training and support from

the Bank’s Field Offices in Angola and South Africa.

2.8 Key Performance Indicators

2.8.1 Progress towards achieving income increase in fishing communities will be measured

through a baseline, midterm and project-end socio-economic surveys. With respect to PHL

reduction, achievements will be measured through combining the Catch and Effort

Assessment Survey (CAS) and product marketing survey. The M&E Specialist of the PIO

will be responsible for this assignment in cooperation with IPA and FAO. An MoU will be

concluded between FAO and the project to cover technical assistance for the artisanal fishing

vessel frame survey (including socio-economic data), basic fisheries data collection set-up

(Catch and Effort records), post-harvest loss assessment, reduction of post-harvest losses,

marine fishery resources management, and fishery infrastructure management.

2.8.2 The key performance indicators to be monitored include: (i) reduction of lives lost,

(ii) No. of incursions per year (iii) percentage reduction of post-harvest losses (value), (iv)

Coverage of inshore area by VHF MCS system and no. of towers built, (v) No. of vessels

equipped with a vessel tracker unit, (vi) No. of fish quality samples taken and tested, (vii)

Number of functioning fishery resource and infrastructure management committees in project

sites, and (viii) Number of Landing sites constructed and improved.

2.8.3 In particular, the numbers of women serving on the committees for management of

fishery infrastructure and the committees for management of the marine natural resources and

also the number of women trained during project implementation will be closely monitored to

ensure the set targets are met.

III. PROJECT FEASIBILITY

3.1 Economic and Financial Performance

3.1.1 The financial and economic analyses were carried-out on the basis of the assumptions

that the successful implementation of the project would generate the following three (03)

types of benefits: (i) Increased quality, volume and value of marketed fish; (ii) Temporary

and permanent jobs creation; and (ii) improved population livelihood.

3.1.2 Financial Analysis: The financial analysis was carried-out on the basis fishing

activity models for a 20-year period and about 980 fishing boats producing 35,000 mt tons

annually or 170 kg per unit in 210 rotations per year. Post-harvest losses is currently

estimated to be 7,000 mt (valued at about US$ 7 Million), which the project is expected to

11

reduce by 20%. In this context, only 70 % represent premium market fish valued at

US$ 3,500 per ton out of a total marketable production of 28,000 mt in the without project

situation. The remaining production corresponds to 20 % of medium quality value at

US$ 1,000.00 per ton, and 10 % for household for consumption. Current average incomes per

fisher are estimated at US$840 per annum. With the project support, incomes are expected to

rise to at least US$1,010 per annum per fisher.

3.1.3 The expected reduction of 20% in post-harvest losses sets marketable volume to

29,400 mt of which premium and medium quality represent 85 % and 5%, in the with- project

situation. In addition, the project is also expected to generate temporary and permanent

employments with an estimated financial benefit of US$ 7.69 Million p.a. On the basis of

these assumptions, the project worth came out with an IRR of 17.59% and net present value

of 83.99 Million. The IRR and NPV are greater than the opportunity cost of capital (OCC)

estimated at 12% and zero, respectively.

3.1.4 Economic Analysis: The economic analysis was carried-out on the basis of fishing

activity models and economic prices and cost. The economic cost was generated from

COSTAB, on the basis a standard conversion factor (SCF) of 0.95, which was also used for

the shadow pricing of benefits from tradable goods, corresponding to the volume of premium

quality fish, on the basis the following formula:

SER = OER*(1+FxP) or OER/SER=1/(1+FxP) = SCF or SER=OER/SCF ▪Where SER = shadow exchange rate; OER = Official exchange rate; FxP= Foreign exchange premium; and

SCF=Standard conversion factor

3.15 In addition, cost of labour was adjusted to a conversion factor of 0.65, as a non-

tradable and inelastic good, due to unemployment. Furthermore, fish consumption volumes

were included as substitutes for marketed protein. Finally tax, subsidies and interest payments

were also removed from financial values and prices, so as to reflect costs and benefits to

society, in the process of computing costs and benefits in situations with and without project.

As a result of the computation, the economic analysis yielded, based on the above

assumptions a combined net economic impact (NPV) of about US$ 97.58 million for a 20-

year operational period and ERR (economic rate of return) of 22.45%. This outcome means

that the economic feasibility of the project is even higher than the financial feasibility, or the

value to society for the establishment of fisheries infrastructures is even higher than the cash

value of its benefits. The detailed economic analysis of the program is captured in the

technical annexes of the current report.

3.2 Environmental and Social Impacts

3.2.1 The project has been classified as Environmental Category II according to the Bank’s

Environmental and Social Assessment Procedures (ESAP) (August 2011), as it is expected to

have site-specific and short-term negative impacts largely occurring during the construction

phase. Overall, the project is expected to generate positive social-economic and environment

benefits leading to improved environmental and socio-economic conditions of the fisher

communities at the project sites. Potential negative impacts will likely occur during the

construction of the fish landing sites, fish processing facilities, water supply and sanitation,

and waste management system. The envisaged impacts include noise and vibration, dust, soil

erosion and water pollution. An Environmental and Social Management Plan has been

prepared elaborating the mitigation and monitoring measures to be undertaken during project

implementation. They include sprinkling water at the construction sites to suppress dust,

12

providing erosion control measures to reduce soil and water pollution, proper selection of

borrow pits and rehabilitation with vegetation after decommissioning. To address the current

practice of discarding slaughter waste at sea and on land (approximately 20% of catch), the

project will support facilities for processing waste into animal feed. Both waste management

and potable water availability at all sites will improve sanitary conditions at landing sites and

reduce spread of infectious diseases such as cholera.

Climate change

3.2.2 Data on specific impacts of climate change on the Angola fisheries sector is not

comprehensive. The predicted variations in temperatures, precipitation, storm frequency and

intensity and the changes in the Benguela current are expected to have an impact on

productivity of ecosystems and hence the quantity and distribution of fish species. The

National Adaptation Plan of Action (NAPA) priorities published in December 2011 include

the need for a study on the exact impacts of climate change on the fisheries sector, given its

vulnerability. The vulnerability of the sector is due to the level of dependence on fisheries in

specific sites and the adaptive capacity in the sector. As such, the mitigation measures

included in the project are in capacity building to raise awareness on impacts of climate

change and the dissemination of knowledge on adaptation measures. The project will provide

information on fish landings to support the NAPA objectives. With respect to infrastructure,

sites have been selected at locations with some natural protection and the design of

infrastructure will take cognisance of the potential impact of climate change, while the VMS

will be able to issue storm warnings.

Gender

3.2.3 In Angola it is estimated that 80% of small scale fish traders and processors are

women1. The fish processing facilities at each of the landing sites will thus be mainly of

benefit to the women in the fishing communities. Much of the fish at the selected landing

sites is distributed in fresh form to the domestic market. Currently, there is a significant

quality (and therefore price-) loss in this value chain caused by a lack of knowledge and skills

with respect to quality preservation. At the project sites, infrastructures (cold-rooms and ice

making machines) will prevent quality loss, while processors will be trained in quality

preservation and Post-Harvest Loss reduction techniques. Processors will also be trained in

appropriate transformation techniques, like fish salting, smoking and drying, while others will

learn to process slaughter waste into valuable fish meal, which can be used as a component in

animal feed. Women and youth make up 60% of the population in the selected fishing

communities and the improved fish production is expected to result in increased incomes for

the fish traders and to provide employment for some of the youth during the project

implementation phase and the management of the sites.

3.2.4 The project implementation is expected to enhance the roles of women in the fishing

communities. Key Performance Indicators data to be collected in this respect are: Household

incomes of the coastal population, Distribution of male versus female in the Management

committees, Volume of trade per vendor at the project sites, Number of businesses at the

landing sites, number of processing facilities, including the gender of the management. All

data collected will be gender dis-aggregated.

1 FAO Fishery Sector Overview, ftp://ftp.fao.org/FI/DOCUMENT/fcp/en/FI_CP_AO.pdf

13

3.2.5 The baseline survey of family living conditions will show the proportion of female-

headed households which most likely will be high, after 30 years of internal conflict. Thus

the project, in addition to rehabilitating infrastructure to support the reduction of post-harvest

losses, will support women to better organise themselves in production and marketing, and

contribute to the development of women’s associations. The project will systematise the

representation of women and the youth in resource and infrastructure management decision-

making bodies to enable them to fully defend their interests and thus gradually improve their

status and empower themselves. In collaboration with NGO’s and the Gender Institutions, the

project will carry out training in gender equality for the various parties involved (project

staff, technical services, partner institutions, etc.).

Social Impacts

3.2.6 The project will improve the quality of fish being landed thus increasing the value and

reducing post-harvest losses, which are currently estimated at 30-35%. Through the reduction

of PHL fishers and processors will handle more, higher quality product and thus have a

higher income. The construction works will provide short term employment for some of the

community members while the operation of the landing sites will provide more long term

employment opportunities. The project infrastructure will improve the well-being and

hygiene of the communities through the provision of sanitary facilities and waste

management system. This will reduce the disease burden on the community and the time

spent in search of potable water. The HIV prevalence rate is higher in the fishing

communities compared to the national prevalence rates. Therefore the project has included

HIV/AIDS awareness and sensitisation activities for the communities. The project is not

expected to result in any major negative social impacts.

Involuntary resettlement

3.2.7 The project will not involve any involuntary resettlement

IV. IMPLEMENTATION

4.1 Implementation Arrangements

Executing Agency

4.1.1 The Ministry of Fisheries (MoF) is the executing agency and will be responsible for

overseeing the overall implementation of the project. A Project Implementation Office (PIO)

in the National Institute for Development of Artisanal Fisheries and Aquaculture (IPA) will

manage the day-to-day activities of the project. The PIO will be headed by a Project

Coordinator (PC). The Project Coordinator will be supported by staff seconded from IPA or

the MoF, especially the Fisheries Specialist, the Environmental Management Specialist, the

Community Development Specialist, and the Monitoring and Evaluation Specialist

knowledgeable in fisheries statistics. This will ensure ownership of the project in the MoF,

and IPA. If these four positions cannot be filled by staff from IPA or the Ministry they will be

recruited competitively. The Civil Engineer/Quantity Surveyor, Procurement Specialist,

Accountant, and Book Keeper will be recruited competitively. All proposals with respect to

project staff will be submitted to the Bank for review and No Objection. A Project Steering

Committee (PSC), chaired by the Director of IPA, will provide policy guidance and oversee

14

project implementation. The Project Coordinator will act as the PSC Secretary. The PSC will

meet at least twice a year. At the project sites the district officers of IPA will play a pivotal

role with respect to project activities. They will coordinate all activities at their site with the

support from the Implementation Office in Luanda. The road works will be under the general

oversight of the local governments (Benguela Provincial Government for Egipto Praia and

Bengo Government for Yembe) supported by the Consulting Engineer.

Table 4.1: Breakdown of project costs by procurement methods

ANGOLA

FISHERIES SECTOR SUPPORT PROJECT Procurement Arrangements - Non ICB/NCB/QCBS Aggregated as Other

(UC '000)

PROCUREMENT ACCOUNTS

Procurement Method

ICB LIB NCB QCBS Other N.B.F. Total

A. GOODS Vehicles - - - - 162,85 - 162,85

[162,85]

[162,85]

Equipment 935,28 437,04 - - 372,44 - 1 744,76

[935,28] [187,30]

[372,44]

[1 495,02]

B. WORKS Construction & Rehabilitation 2 678,06 - 523,39 - - - 3 201,45

[2 678,06]

[523,39]

[3 201,45]

Public Utilities - - - - - 148,02 148,02

Roads 8 846,81 - - - - - 8 846,81

[8 846,81]

[8 846,81]

C. SERVICES Training - - - 988,54 169,52 - 1 158,06

[988,54] [169,52]

[1 158,06]

Technical Assistance - - 638,25 2 248,86 - - 2 887,11

[638,25] [1 716,28]

[2 354,53]

Contractual Services - - - 1 542,07 1 967,01 - 3 509,08

[1 233,66] [1 392,45]

[2 626,11]

Audit - - - 155,17 - - 155,17

[155,17]

[155,17]

D. PERSONNEL - - - - - 2 877,95 2 877,95

E. OPERATING COSTS - - - - - 800,42 800,42

Total 12 460,14 437,04 1 161,64 4 934,64 2 671,82 3 826,39 25 491,68

[12 460,14] [187,30] [1 161,64] [4 093,65] [2 097,26] - [20 000,00]

Note: Figures in parenthesis are the respective amounts financed by ADF Loan

Procurement Arrangements

4.1.2 Following the assessment of the National Procedures and Regulations (NPP) and

bidding documents for procurement of Goods and Works under NCB done by the Bank in

October 2011, it was noted that the NPP are generally consistent with the Bank Rules and

Procedures. Principles under the new Law are in line with procurement best practices

regarding fairness, transparency, competitiveness and cost effectiveness. On the other hand

the assessment noted that the Regulations and Standard Bidding Documents (SBDs)

complementing the new law have not yet been developed to give effect to the implementation

of the law. The National Competitive Bidding Procedures (NCB) have been found to be

generally compliant with international acceptable practices, however, some deviations need

15

to be addressed in order to make NPP comply with Bank rules and procedures. Angola has

also not developed national SBDs for procurement of Goods and Small Works.

4.1.3 In view of the above, all procurement under the project done by NCB will be subject

to the Bank’s Rules and Procedures for the Procurement of Goods and Works, May 2008

edition and as amended from time to time using the relevant Bank’s SBDs. The various items

under different expenditure categories and related procurement arrangements are summarized

in Table 4.1 above. Each contract to be financed by the Loan, the different procurement

methods or consultant selection methods, the need for prequalification, estimated costs, prior-

review requirements, and time frame are agreed between the Borrower and the Bank project

team and are provided in the Procurement Plan in technical annex B5. Further details with

respect to Procurement arrangements can be found in Technical Annex B5 Procurement

Arrangements.

Disbursement Arrangements

4.1.4 The Direct Payment Method will be used for the disbursement of the loan resources

according to the Disbursement Handbook of the Bank. Where necessary, the reimbursement

method will be used for eligible expenses. The PIO will open an account into which the

Government will make its counterpart contribution.

Financial Management

4.1.5 The Project accountant will be responsible for ensuring the maintenance, at all times,

of satisfactory and professionally acceptable accounting records and asset registers in

accordance with Bank guidelines. In addition, The PIO will ensure that adequate internal

control systems are maintained. The project accounts will be audited annually by an

independent audit firm recruited through Least Cost Selection. Annual audit reports will be

submitted to the Bank not later than six (6) months after the end of each financial year. The

PIO will also submit regular quarterly and annual progress reports in accordance with the

Bank Group reporting guidelines. The PIO will use the administrative manuals which are

already in use by the other AfDB projects in the Agriculture and Environment Sectors as a

basis for the FSSP administrative manual.

4.2 Monitoring and Evaluation

4.2.1 For the monitoring and evaluation of the project, a number of milestones have been

established during the entire 5-year implementation period to ensure activities are effectively

implemented as planned. The M&E Specialist will be responsible for all M&E activities,

other duties will be assigned to specific staff of the PIO. All socio-economic surveys and,

where possible, other surveys, will collect gender disaggregated data. Some indicators to be

collected will be: income gender-disaggregated, percentage of female-headed households,

Number of people (gender disaggregated) sensitized in gender issues, number of participants

in trainings (gender disaggregated), and management committee members (gender-

disaggregated)

4.2.2 With respect to Monitoring and Evaluation the project will be supported by FAO, a

centre of excellence, which has experience with similar projects in the region. FAO will assist

with the implementation and analysis of the data of these surveys. The M&E framework will

require strong engagement of beneficiaries in order to better determine the impact of the

16

project on their welfare. The M&E system will demonstrate impacts on the local economy

through linkages with other sectors.

Timeframe Milestone Monitoring process feedback loop

Yr 0 Design of New infrastructure (4 sites) PC, Proc S, CE, & M&E, Consultant reports

Yr 0 Design of Rehabilitation structures (2 Sites) PC, Proc S, CE, & M&E, Consultant reports

Yr 0 Design of additional works (10 sites) PC, Proc S, CE, & M&E, Consultant reports

Yr 0 Baseline Survey (Socio-Eco, CAS, Marketing) FS, CDS, M&E reports

Yr 2 VMS in place PC, FS

Yr 3 4 sites ready PC, Proc S, CE, & M&E, Consultant reports

Yr 3 2 sites rehabilitated PC, Proc S, CE, & M&E, Consultant reports

Yr 3 10 sites with additional works ready PC, Proc S, CE, & M&E, Consultant reports

Yr 3 Mid-term Survey (Socio-Eco, CAS, Marketing) FS, CDS, M&E reports

Yr 4 Infrastructure management in place (16 sites) PC, FS, CDS reports

Yr 4 Resource management in place (16 sites) PC, FS, CDS reports

Yr 5 End Survey (Socio-Eco, CAS, Marketing) FS, CDS, M&E reports

4.3 Governance

4.3.1 The main governance issues relate to bidding and contracting procedures for the

various contracts under the project. To avert irregularities in the bidding processes the

standard Bank rules and procedures will be used. In addition, the Project Steering Committee

(PSC) will play an important over-sight role to ensure that procurement procedures are

transparent and competitive. The PSC will be constituted by members from key Ministries

and beneficiary representatives (see paragraph 2.3.2 of the technical annex). The PIO will

maintain up-to-date books of accounts and asset registers for the project. The books of

accounts and asset registers will be audited by an independent audit firm to ensure that

project resources are used efficiently and effectively for intended purposes.

4.3.2 Another governance issue relates to sustainable management of marine resources.

Currently there is a lack of sufficient information on artisanal fisheries to base sustainable

management on. Through the project an artisanal fishing vessel frame survey will be

conducted, which will serve as the basis for a catch and effort assessment survey system

(CAS). This CAS will provide additional information to base sustainable fisheries

management on. Through the VMS the enforcement of measures with respect to closed areas,

or seasons, will be facilitated, which is also improving governance.

4.4 Sustainability

Sustainable Resource Use

4.4.1 The implementing agency (IPA) has the mandate to ensure sustainable use of Marine

Fishery Resources. With the support from FAO, information with respect to targeted fish

stocks attributed to the project landing sites will be improved, allowing better informed

management decisions on the exploitation of the fish stocks. Also, with FAO support, the

IPA will work with the communities to draw up a fishery resource management plan which

will be adopted at each landing site. The management plans will have as objective to

maximise the yield of the marine fishery resources in a sustainable way, to support the

incomes of the fishing communities involved.

17

Infrastructure Management

4.4.2 All stakeholders will be involved in the implementation of the management structure

of the landing sites, ensuring ownership of the management process. These management

structures will deal with the daily running of the sites, and will be guided by an infrastructure

management committee at each site. The management committee will ensure that the landing

site will be run in an economically viable manner, ensuring the sustainability of the structures

(covering not only maintenance costs, but also depreciation) and the provision of services for

an acceptable cost to the communities involved. Boat landing fees will contribute to cost

recovery towards maintenance of the infrastructure while the ice making and cold storage

facilities will be run on commercial terms by private sector entities.

IPA Support

4.4.3 The project provides for strengthening of human and institutional capacity of IPA at

headquarters and provincial offices, including infrastructure management capacities. After

the end of the project, IPA/GoA will be able to continue supporting the fishing communities

with respect to sustainable management of fishery resources and fishery infrastructures.

4.5 Risks Management

4.5.1 Based on experiences of the Artisanal Fisheries Development Project and other

fisheries projects in the region five risks to the FSSP implementation have been identified.

4.5.2 The global economic crisis and rising food prices on the world market might have a

negative impact with respect to reducing poverty and increasing food security. By focusing

on local market development, the project will not increase the dependence of participating

communities on the global market forces and minimize the impact of these risks on the target

population.

4.5.3 The project will ensure that Monitoring, Control and Surveillance of the Artisanal

Fisheries Zone attributed to the project fish landing sites will be improved. Fishers and other

stakeholders at the landing sites will be trained in fisheries management, including ways of

enforcement of management decisions. Communication channels with the fishery inspection

service will be established, ensuring that sightings of illegal (industrial) vessels will be

reported and acted upon. The encroachment by the industrial fleet of the artisanal fisheries

zone will be prevented, preventing destruction of gear of artisanal fishers, and the depletion

of fish stocks in the artisanal fisheries zone by the industrial fleet.

4.5.4 Through training and awareness campaigns at the project fish landing sites, fishers

will be made aware of the advantages of vessel tracker units on fishing vessels with respect to

safety at sea (in an emergency a distress signal indicates which position the vessel in distress

has). This will reduce the reluctance of fishers to install vessel trackers on their vessels

4.5.5 Stakeholders at the project fish landing sites will be trained in the benefits of

sustainable fishery management, including ways to participate in making fishery management

decisions in the fishery management committees to be established at the project fish landing

sites. Through this training participation by all stakeholders in fishery management

committees will be ensured.

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4.5.6 Fishery data collection needs to be done routinely to establish the status and trends of

the fishery, needed to make informed fishery management decisions. However, data

collection schemes implemented by the Government only would be too costly to be

sustainable. Through participation of the stakeholders at the landing sites, including the

fishers, the cost of this data collection can be reduced, ensuring sustainability.

4.6 Knowledge Building

4.6.1 The project is expected to generate considerable knowledge, lessons and experiences

that will add value and build up a knowledge-base to inform the design and management of

similar projects in other RMCs. The effectiveness of various fishery infrastructure

management options will be evaluated. An assessment of PHL will be made and poverty

levels of population at the project sites will be monitored.

4.6.2 A report on the fishery infrastructure management will be produced. A frame survey

will form the basis for the basic fisheries data collection through the CAS. This will provide

information on the use of the marine fishery resources. PHL will be assessed by comparing

landed against marketed production. Through three socio-economic surveys, information will

be available to track incomes of fishers and processors over the project life and beyond.

4.7 Bank’s Field Office

4.7.1 The African Development Bank Field Office (AOFO) in Luanda will support the

project through assisting with the preparation of documents, monitoring of progress, and

interface between different Bank projects for periodic meetings, where exchanges of

experiences and lessons will take place. To this end a project monitoring and tracking tool

has been finalised by AOFO. Furthermore the Bank’s Field office will liaise between the

Project and responsible officers in the Bank.

V. LEGAL INSTRUMENTS AND AUTHORITY

5.1 Legal instrument

The project will be financed pursuant to an ADF loan agreement between the

Borrower and the ADF

5.2 Conditions associated with Bank’s intervention

Conditions for Bank’s first disbursement/effectiveness

5.2.1 Conditions for effectiveness: The Loan Agreement will enter into force upon

fulfillment by the Borrower of the provisions of Section 12.01 of the General Conditions.

5.2.2. Conditions Precedent to First Disbursement of the Loan: The obligations of the Fund to

make the first disbursement of the Loan shall be conditional upon the entry into force of the

Loan Agreement and the fulfillment by the Borrower, in form and substance satisfactory to the

Fund, of the following condition:

(i) Provide evidence of the recruitment of a Project Coordinator whose qualifications and

experience shall be acceptable to the Fund.

19

5.2.3. Other Conditions: The Borrower shall, in form and substance satisfactory to the Fund,

fulfill the following conditions:

(i) Provide, within six (6) months after the first disbursement, evidence of the recruitment

of: (a) a fisheries specialist; (b) an environmental management specialist; (c) a

community development specialist; (d) a monitoring and evaluation specialist

knowledgeable in fisheries statistics; (e) a civil engineer/quantity surveyor; (f) a

procurement specialist; (g) an accountant; and (h) a book keeper; whose qualifications

and experience shall be acceptable to the Fund;

(ii) Provide, within six (6) months after the first disbursement, evidence of the

establishment of a Project Steering Committee (PSC) consisting of the following

members/representatives of: Minister of Fisheries (Chairperson), Ministry of Finance,

Ministry of Planning, Ministry of Environment, Ministry of Public Works and Roads,

Women Promotion Ministry, Representatives of the community development

committee; and

(iii) Provide, within twelve (12) months after the first disbursement, evidence of the

completion of: (a) the FAO supported artisanal fishing vessel frame survey; and (b)

the socio-economic survey.

5.2.4 Undertaking: The Borrower undertakes, in form and substance satisfactory to the Fund,

to:

i) carry out, and require its contractors to carry out, the Project in accordance with the

recommendations, standards and procedures set forth in the ESMP; and

ii) deliver to the Fund project quarterly reports, describing the Borrower’s

implementation of the ESMP (including any implementation failures and related

remedies, if any).

5.3 Compliance with Bank Policies

This project complies with all applicable Bank policies.

VI. RECOMMENDATION

6.0.1 Management recommends that the Board of Directors approves a loan not exceeding

an amount of UA 20 million to the Republic of Angola for the purposes and subject to the

conditions and modalities stipulated in this report.

I

Appendix I: Angola’s comparative Socio-economic indicators

II

Appendix II: Table of AfDB’s portfolio in Angola

On-Going Portfolio In Angola (UA millions)

PROJECT SECTOR APPROVAL

DATE

EFFECTIVE

DATE

CLOSING

DATE

TOTAL

COST

TOTAL

DISBURSED

%

DISBURSE

MENT

Bom Jesus Calenga

Rural Development

Project

P-AO-A00-001

Agriculture

and Rural

Development

24/11/2005 14/09/2006 31/12/2012 17.20 6.91 40.20%

Environmental

Sector Support

Project

P-AO-CZO-001

Environment 11/03/2009 17/12/2009 31/12/2015 12.00 1.3 10.70%

Financial Support

Management

Project

P-AO-KFO-002

Finance 14/11/2007 04/09/2008 31/12/2012 5.90 0.4 7.81%

Sumbe Water

Supply, Sanitation

and Institutional

Support Project

P-AO-E00-003

Water and

Sanitation 28/11/2007 04/04/2009 30/06/2013 12.00 0.1 1.58%

Institutional

Capacity Building

Poverty Reduction

Project

Governance 23/02/2011 May 2011 30/07/2013 5.17 0 0%

GRAND TOTAL COMMITMENT 52.27 8.71 16.66%

III

Appendix III: Similar projects financed by the Bank and other development

partners in Angola

The EU is undertaking a survey with respect to projects per donor in Angola for 2010/2011, the

information will be shared from the EU representation as soon as the report is finalized. Once this

information is available it will be included in this appendix

IV

Appendix IV: Map of the project area

V

Appendix V: Project Sites

Project sites:

1 : Gilco

2 : Sumbe

3 : Yembe

4 : Egipto Praia

5 : Dambe Maria

6 : Ambriz

A : Praia Da Sancada

B : Lucira

C : Praia de Cambolo

D : Kicombo

E : Cabo Ledo

F : Buraco

G : Barra do Dande

H : Kasaï

I : Lombo-Lombo

J : Lândana