Cashew Value Chain Sustainable Development Project

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The proposed project will complement existing interventions and sector policies that tends to lower the barriers to investment in new processing capacity and enhance the competitiveness of existing cashew processing units. It supports additional investments at critical point along the value chain that will: (i) increase RCN productivity on-farm, improve quality and lower aggregation costs; (ii) accelerate private investment in new processing capacity through the provision carefully designed and located physical infrastructure that increases operational efficiency and significantly lowers the initial cost of investment; (iii) improve the policy and regulatory framework for the sustainable development of the cashew value chain in Cote d’Ivoire, including build capacity in all functions along the value chain (technical and managerial skills, knowledge and innovation); and (iv) facilitating market development and trade. It is taking into consideration the lessons learned from the implementation of the Cashew Value Chain Competitiveness Project (Projet de Promotion de la Competitivite de la chaine de valeur Anacarde - PPCA). Proposed project components are described below:Component 1: Institutional strengthening and value chain governance (US$10.8 million). This component intends to improve the organization and governance of the cashew value chain to reduce marketing costs and enhance the chain’s competitiveness. Sub-component 1.1: Strengthening of cashew value chain key organizations (US$6.1 million). The sub-component will support a diversified capacity building program targeting key organizations overseeing the cashew value chain, including : (i) the newly established cashew inter-professional body (Organisation Interprofessionelle de l’Anacarde -OIA); (ii) the cashew producers’ organizations and their unions; (iii) the MEMINADER directorate of professional agricultural organizations (DOPA); and (iv) the Cotton and Cashew Council (Conseil Coton Anacarde - CCA). The project will also support the scaling up of coaching programs for local cashew producers’ organizations implemented by the School of Agronomy (Ecole Superieure d'Agronomie - ESA) of the National Polytechnic Institute (Institut National Polytechnique Houphouet Boigny - INPHB) in Yamoussoukro. Sub-component 1.2: Improving the business environment (US$4.7 million).The project will also continue to assess the regulations and licenses that are required to sell, buy and trade cashew products with the objective to reduce the costs of internal marketing (from producer to port/local consumer) and make the value chain ultimately more competitive. Investments efforts will focus on establishing the Cashew Innovation and Technology Center (CITA) as a center of excellence for cashew value chain technology innovations with : (i) the construction of a central laboratory; (ii) the development of an incubation center for cashew by-products, (iii) the establishment of an assembly workshop for applied research for the development of locally designed cashew processing technologies in collaboration with the national platform of agro-processing technology (PETRAPACI); (v) the construction of a storage warehouse for 10,000 tons of cashew nuts; and, (vi) the acquisition of a demonstration pyrolizer for the production of cashew nutshell liquid (CNSL). This project will support the design of a methodology and monitoring plan for the calculation and verification of greenhouse gas emissions reduction at national level. In addition, carbon footprints of value chain activities, including raw cashew nuts and by-products processing, will also be evaluated to offer support to the private sector in developing credible mitigation plans and targets that aim at reducing the carbon footprint of their activities. Component 2: Productivity enhancement and improved access to rcn markets (us$43.4 million). The project will support investments focusing on: (i) the expansion of the national program for cashew research and seedling development; (ii) facilitating farmers’ access to improved extension of good agricultural practices (GAPs) and other specialized services such as high-yielding planting material and small-scale mechanization; and (iii) improving rural road infrastructure. Sub-component 2.1: National cashew research program (US$6.2 million). This sub-component will provide continuous support to the implementation of the revised national cashew research program with a focus on: (i) continued research on high-performing tree varieties (to be tested, referenced, and used for multiplication); (ii) production of a new germplasm resilient to climate change; (iii) construction and equipping of a specialized laboratory to produce improved planting material in vitro; (iv) continued strengthening of human resources in cashew research by funding specialized training, notably in plant genetics, variety development, and plant protection; (v) planting material technology testing, transfer, and dissemination of research results developed under the PPCA, including exchange seminars, workshops, and demonstration trials. Sub-component 2.2: Support for cashew extension services and technology transfer (US$25.7 million). This sup-component will support the construction and/or rehabilitation and equipment of the five remaining Cashew Development Centers initially intended under the PPCA. Specific extension activities to be financed are: (i) developing and disseminating related extension materials in various formats; (ii) scaling up the e-extension service developed under the PPCA with a focus on content, presentation, and delivery modes that would be most effective in meeting the needs of small cashew producers; and (iii) providing transport equipment (vehicles and motorcycles) and IT and audio equipment to facilitate extension outreach to farmers. Selected sites will be identified during project preparation. The proposed project will also support the expansion of the existing nursery system, critical for the diffusion of high-yield cashew varieties. It will finance: (i) equipment and inputs to establish new nurseries and produce the initial stock of seedlings and grafts; and (ii) training for nursery operators in plant production, handling, storage, and distribution (public and private sector and research institute); (iii) a platform linking research on improved seedlings to growers to undertake applied trials in farmers’ fields; and (iv) the distribution of seedlings. Sub-component 2.3: Rehabilitation and maintenance of feeder roads (US$11.5 million).. This sub-component will finance the third phase of the PPCA feeder roads rehabilitation program covering 400.3 km in the Bere region. It will build on technical studies already conducted under the PPCA. Preliminary reports of environmental and social impacts assessments are available as well as bidding documents for the selection of construction companies. The Resettlement Action Plans are currently being carried out. Component 3: support to private investment in post-harvest and processing infrastructure (us$83.2 million). This component aims at: (i) providing support to the cashew post-harvest and processing infrastructure; (ii) facilitating access to investment capital and risk management instruments to cashew value chain actors; and (iii) developing cashew markets and trade. Sub-component 3.1. Cashew post-harvest and processing infrastructure development (US$62.1 million). The proposed project will directly support the development of integrated cashew platforms and warehouse facilities in Bouake and Odienne. Focus will be made on value addition/agro-processing services of cashew products and by-products (Cashew Nutshell Liquid – (CNSL), jam, juice, alcoholic beverage, biofuel, etc.). In addition, the project will support the upgrading of the existing industrial zone in Yamoussoukro where the concentration of processing capacity is constantly increasing with a projected capacity of 100,000