Jamaica Project Notice - Second Rural Economic Development Initiative (REDI II) Project


Project Notice

PNR 37037
Project Name Second Rural Economic Development Initiative (REDI II) Project
Project Detail PROJECT DESCRIPTION A. PDO 17. The Project Development Objective is: to enhance access to markets and to climate-resilient approaches for targeted beneficiaries. 18. Climate-resilient approaches are to be viewed as climate-smart approaches that include assets, technologies, and practices to strengthen productivity, adaptation, and mitigation against climate change. Targeted beneficiaries are rural enterprises (micro, small and medium-size or MSMEs) linked to the agricultural and community tourism sectors, as well as relevant public sector institutions and partner entities. 19. The results of the project will be measured through the following set of outcome indicators: • Percentage of participating rural enterprises that have accessed new markets. • Percentage of participating rural enterprises operating on or above the projections (gross sales value) of their corresponding business plans. • Number of targeted beneficiaries reached with climate-resilient approaches supported by the project (of which number of rural enterprises and public institutions). B. Project Components 20. Enhancement to the REDI I approaches. Building on the experience and results of REDI I, the new project will focus on strengthening value chains10 and the development of tourism clusters, with an emphasis on the linkages between producers/service providers and buyers, to improve economies of scale for small agricultural and tourism enterprises and to mainstream climate resilience. 21. Component 1. Climate Resilient Agricultural and Community Tourism Investments for Rural Enterprises (Total US$28.0 million, IBRD US$26.0 million and Beneficiary Contribution US$2.0 million). The objective of this component is to promote the development of agricultural/community tourism enterprises that are better integrated in productive partnerships or “alliances" and operate more competitively in selected value chains, with more reliable linkages with buyers and markets and increased capacity to manage climate risks. 22. Through matching grants, Component 1 will finance consulting and non-consulting services, goods, works, and operating costs for demand-driven, competitively selected agriculture/fisheries or community tourism sub-projects presented and implemented by participating rural enterprises to increase their production and to capture and/or increase their market share and level of profits. Financed activities will support the promotion, identification, design, feasibility, and implementation of competitive and climateresilient investment sub-projects for business investments and ventures established by beneficiary enterprises (small farmer/fisher associations—that is, cooperatives, friendly or benevolent societies, or any formal form of legally established association—agribusinesses, community tourism operators, and related entrepreneurs and handicraft artisans). 23. Sub-projects in the agricultural sector can take numerous forms, including: the introduction of new crop varieties adapted to expected higher temperatures and resistant to drought; counter-seasonal production methods and technologies such as greenhouses; the use of integrated pest management; mechanisms for soil management and increasing soil fertility; the introduction of more efficient irrigation and water harvesting methods and alternative (small-scale) sources of energy, such as solar panels; the development of integrated landscape models comprising livestock, crops, and forestry; improvements in stock breeding and management; new capacity for reducing post-harvest losses and improving food quality; and small group marketing infrastructure such as cold storage facilities, sheds, packing facilities, and sanitary facilities, among others. In the community tourism sector, sub-projects could include the development of new or expansion of existing tourism experiences (eco-hiking trails, waterfalls, mineral baths, culinary expertise, and gastronomic events) and associated equipment for internet access, landscaping, trail development, signage, rehabilitation or safety enhancement of public attractions; construction of simple handicraft markets; equipment for the production, preparation, or packaging of agricultural specialty products, handicrafts, and novelty items (such as basketry, pottery, beauty products, condiments); or gastro-tourism activities and promotion. 24. Rural enterprises will prepare and submit proposals for investment sub-projects, which will be selected for matching grant funding through a competitive evaluation based on previously established criteria, to include (among others) market demand, product quality, technical and financial feasibility, environmental and social sustainability, approaches to enhance climate resiliency, potential for local impact, and the level of participation by women and young people. Matching grants to fund sub-project investments are not to exceed US$500,00011 each (including all collaborating enterprises receiving grants within that sub-project partnership) or an average of US$15,000 per individual beneficiary. The cash contribution from beneficiaries will be 5–60 percent of total sub-project costs, depending on the type of beneficiary and the size of the matching grant, in line with specific details provided in the Project Operational Manual (POM)12 . Grants must be used in accordance with the provisions of the approved business plan, recorded in a Sub-project Agreement to be signed between the beneficiaries and the Jamaica Social Investment Fund (JSIF), which will establish how the proceeds must be used. It is estimated that a total of 90 investment sub-projects will be supported through this component, directly benefitting around 200 rural enterprises. Around 9,000 individual members of these rural enterprises will benefit directly from these investments (of which 40 percent will be women and 30 percent youths). 25. Component 2. Institutional Strengthening and Capacity Building for Public Entities (IBRD US$8.0 million). This component aims to strengthen the capacity of relevant public sector institutions—the Ministry of Industry, Commerce, Agriculture, and Fisheries(MICAF), MOT, and JSIF—and associated entities (Rural Agricultural Development Authority (RADA), Tourism Product Development Company (TPDCo), and others) to provide the public infrastructure and quality services needed to promote inclusive rural development (based on the agriculture and tourism nexus) and to ensure the sustainability of the rural enterprises and productive partnerships supported by the project. This component has two subcomponents. 26. Subcomponent 2.1—Public Infrastructure Investments (IBRD US$6.0 million). This subcomponent will finance civil works, goods, and consulting services for the priority public infrastructure investments (to develop new or rehabilitate existing infrastructure) required to improve the efficiency and climate resilience of targeted agri-food and tourism value chains. These investments may include key public or private goods that are currently missing due to market failures or are beyond the capacity of individual sub-projects to provide under Component 1, but that are closely linked to enhancing their success and viability. 27. Examples of such investments for the agriculture sector are: facilities and equipment at the regional or national level (including in ports or airports) for storage, packing, cold chain supply; fresh produce clearing hubs and grading and distribution facilities; agricultural research and development facilities; seed/seedling production and certification facilities; hatcheries; storage banks for high-quality genetic material (germplasm and semen); and expansion or upgrading of hydro-meteorological networks, among others. In the tourism sector, investments may include: extending/enhancing connections to energy networks or developing alternative energy sources; extending/improving local roads; 13 construction of public bathrooms; collection and out-of-view disposal of solid waste; construction of simple handicraft markets; equipment for satellite-based internet access, and so forth. All of these investments will be made either on land owned by the government or on private land that has been voluntarily donated, to avoid economic/physical involuntary resettlement impacts. 28. Public investment sub-projects will be proposed by a relevant public-sector agency or institution participating under REDI II in socio-economic development of the agricultural, fisheries, or tourism sectors; the agency or institutions will retain ownership and be responsible for the quality, management, operation, and maintenance of the facilities and equipment. The POM details the process for developing, revising, approving, and financing public investment sub-projects, including the pre-established criteria for eligibility and prioritization; the basic sub-project requirements;sub-project justification; and feasibility analysis. The amount of grant financing for such investments will be limited to a maximum of US$1.5 million, but the average amount is expected to be significantly lower. It is estimated that at least 4 public infrastructure investments will be financed under this component and benefiting around 10,000 direct individual beneficiaries. They will be climate resilient, especially along shorelines and other vulnerable areas. Where warranted, public-private partnership arrangements will be sought for the operation and maintenance of these investments to ensure their sustainability. 29. Subcomponent 2.2: Technical Assistance and Capacity Building (IBRD US$2.0 million). This subcomponent will finance technical assistance (consultant and non-consultant services, goods, training, workshops, and study tours) to strengthen the capacity of relevant national organizations and other partner entities responsible for assisting the agricultural and community tourism enterprises. Activities to be supported include specific policy and regulatory reviews and assessments; strengthening the agricultural and tourism research and extension support services with regard to the implementation, monitoring, and evaluation of climate-smart technologies/practices in agriculture; product development and marketing strategies; market and competitiveness analysis; support to develop a platform to foster tourism and agribusiness linkages and new, more efficient models of integration; streamlining tourism licensing processes for CTEs; and approaches to improve targeting of women and youth beneficiaries, drawing on local knowledge of appropriate gender-sensitive practices and lessons from REDI I. The JSIF will invite organizations such as RADA, TPDCo, the Jamaica Agricultural Society (JAS), the Department of Cooperatives & Friendly Societies (DCFS), Chambers of Commerce, and others to submit proposals for technical assistance and capacity building. It is estimated that Subcomponent 2.2 will support at least 10 public institutions and partner entities; at least 650 of their staff members (of whom 40 percent female and 30 percent youths) will benefit directly from training provided by the project. 30. Component 3. Project Management, Monitoring, and Evaluation (Total: IBRD US$6.0 million). This component will finance incremental costs associated with the coordination, administration, supervision, and monitoring and evaluation (M&E) of project implementation by JSIF and the technical Project Management Team (PMT) that JSIF will establish for REDI II. Coststo be financed include technical expertise (agriculture, tourism, business development, M&E, and so on), salaries of other contractual staff of JSIF supporting the project, staff training, annual audit, vehicles, office equipment, and other operating costs. This component will also ensure that effective safeguard, fiduciary, and M&E arrangements are in place during implementation. 31. Component 4. Contingent Emergency Response (US$0). This component will allow loan proceeds to be reallocated from other components to support emergency recovery and reconstruction following an eligible crisis or emergency at the national or subnational level. Specifically, given the design of the proposed project, this Contingent Emergency Response Component (CERC) is expected to be operationalized through a reallocation from Component 1 to provide emergency recovery and reconstruction support. To ensure that there is capacity to implement this component, the POM includes a CERC annex applicable to eligible disasters detailing fiduciary, safeguard, monitoring, reporting, and any other implementation arrangements necessary.
Funded By World Bank
Sector Financial Services
Country Jamaica , Caribbean
Project Value JMD 42,000,000

Contact Information

Company Name Jamaica Social Investment Fund (JSIF)
Address Team Leader Garry Charlier
Web Site https://projects.worldbank.org/en/projects-operations/project-detail/P166279

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