Ethiopia Rural Connectivity to Support Food Security Program

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The program’s main objective is to interconnect rural communities as well as isolated areas to improve rural living standards by increasing access to markets, and social and economic services. In order to achieve this objective, the following sub-objectives are included: (i) link rural community centers to the nearest main roads to interconnect villages and areas with economic and social potential; (ii) connect rural areas that have become isolated due to geographic reasons or climate impacts; (iii) solve crossing problems in lowland areas that are regularly affected by climate impacts, and (iv) strengthening policy, institutional and strategic frameworks that support the provision of climate resilient rural roads, including strengthening road maintenance management. In addition to the above overarching objectives, the program aims at contributing to other cross-cutting objectives. These include improving road safety, building resilience of the rural road network and of the communities served to natural disasters and climate change impacts, mainstreaming gender, extending the service life of the road assets through best practice asset management practices and sustained maintenance, and deepening institutional reforms in the rural roads sector. The program design has benefited from lessons learned in the implementation of previous rural road programs in the country, including the need for clear delineation of responsibilities, involvement of key stakeholders in the design process, and ensuring adequate capacity for implementation is in place. The program will benefit from foreign and local experiences in the design and implementation of rural road programs by the World Bank and other development partners in other parts of the world including in Africa, Latin America, Europe, and Asia. The Scope of the Program encompasses the following elements: (i) construction and maintenance of climate resilient roads to connect rural kebele centers to the nearest main roads connecting agriculture potential areas; (ii) construction of pedestrian suspension crossings (trail bridges) for areas with lack of access because of topography; (iii) construction of special structures (pipe culverts, box culverts, bridges, etc.) for lowland and pastoralist communities with crossing problems; (iv) improving the strategies and practices for planning, implementation and management of regional and woreda roads incorporating climate risks and resilience considerations; (v) strengthening road asset management; and (vi) enhancing road safety on rural roads with particular consideration to vulnerable road users, including pedestrians. The roads to be financed under the Program are connecting agriculture potential areas to markets, including agri-hub facilities to be constructed under component 2 of the IPF. The total estimated cost of the first phase of the RCAP program is US$ 774.3 M, of which the Bank is proposing to finance US$250 million with the balance coming from the Ministry of Finance Treasury allocations, regional and woreda contributions, and possibly other development partners (yet to be identified). The PforR operations will support the Government of Ethiopia over a period of four years to improve rural road network connectivity, access, safety, climate resilience, and quality of the road network. It will provide vital improvements in the rural road network all over the country, including better access for farm-based communities, rural villages, pastoralist communities to all weather roads that reach market centers and different social and economic centers. This PforR program is planned to cover (32%) of the total financing required for RCAP which will be managed in line with national regulations, under the Government treasury system and maintained or managed by the financial bureaus at Regional and Woreda levels, with oversight and technical support by MoUI and ERA. The Investment Project Financing (IPF) will consist of two Windows which will support the operation’s objectives. Window 1 will develop an E-Market Place Platform. It will support the piloting of a digital market platform designed by the ATI in collaboration with the Ministry of Trade and Regional Integration. The objectives will be to improve market access for small holder farmers by strengthening market information systems, linking farmers and small traders directly with buyers, and providing market related advisory services including climate impacts and response. Window 2 will enable the Ministry of Urban and Infrastructure (MUI) and the Agricultural Transformation Institute (ATI) to manage and coordinate the operation and to provide support to the regions and woredas in the implementation of the Operation. It will provide funding for staff and associated costs for the Federal Project Coordinating Office (FPCO) as well as Regional Project Coordinating Offices (RPCO) based in the 13 regions of the country. It will also fund institutional and capacity development interventions.