Project Initiation Document Transfer and Dissemination of Emerging Agricultural Technologies of New Rice for Africa, (NERICA): Improving Access to Quality.

Project Initiation Document

Transfer and Dissemination of Emerging Agricultural Technologies of New Rice for Africa, (NERICA): Improving Access to Quality Seed through Public-private partnership in Uganda

Project Executive: Dannie Romney Senior Users: Roger Day

Senior Supplier: Morris Akiri Project Manager: Noah Phiri

Date: 10th December 2009PID Version: August 2009

Part A – Background (1)Executive Summary & Objectives

Project Objectives

● NaCRRI increase capacity to produce basic seed (Foundation seed 1)

● Seed companies increase volume of commercial seed (Foundation seed 2)

● Implement a Marketing strategy to promote NERICA and use of good quality seed in order to stabilise demand

Executive SummaryThe project will support scaling up, production and delivery of high quality NERICA rice seed by local seed companies and implement a marketing strategy to stabilise demand. In addition, it will support training of out-growers and establishing of new farmer groups to work with seed companies, and will train company staff to be trainers. Training and dissemination materials will be produced and used.

Part A – Background (2)Key Stakeholders and Beneficiaries

● Stakeholders and Beneficiaries:-● Donor(s): DFID Research Into Use (RIU)● End-user(s): Rice farmers and consumers in Uganda● Partner(s):

● National Crops Resources Research Institute (NaCRRI), NARO, Uganda

● NASECO 1996 Ltd, Uganda● Centre for Agricultural Inputs International (CAII)

● CABI Centres/Departments: CABI Africa

Part B – Implementation (1)Proposed Organisation Structure

● Corporate Management:● Project Board:-

● Project Executive: Dannie Romney● Senior Users: Roger Day● Senior Supplier: Morris Akiri● Project Assurance: Roger Day● CABI Budget-holder (investment projects):

Note that, if not the Project Executive, the CABI Budget-holder must have written confirmation from the Project Executive, and the Project Manager if required by Project Executive, prior to authorising payment.

● Project Manager: Noah Anthony Phiri● Team Managers:

Part B – Implementation (2)Stages

StagesWork Packages / Deliverables in Stage, unless indicated in Stage Name

Stage

Completion Date

a) Business Plan Development (optional)Work Packages / Deliverables: Business Plan

1) NaCRRI to produce basic seed June 2010, 2011

2) Trainers trained June 2010, 2011

3) Farmers trained June 2010, 2011

4) Marketing/awareness raising implemented

June 2011

5) Increased seed volumes produced and distributed

June 2011

6) Increased direct sales of NERICA June 2011

Part B – Implementation (3)CABI Resource RequirementsStaff(and/or role on project)

Time Required on ProjectDays

Noah Phiri (coordination, preparation of information, training and awareness raising material, training and monitoring)

90

Martin Kimani (support training) 45

Daniel Karanja (support handover of coordination and ensure linkage with SDC funded GSI activities

Supported under SDC funds

Part B – Implementation (4)Customer Acceptance Criteria(Include Targets, Measurables, etc)● Reporting every quarter

● To directly impact on approximately 650 smallholder seed growers linked directly with seed companies

● Companies to increase capacity to produce and deliver improved quality seed of NERICA rice to approximately 93,000 smallholder grain producers

● Increased production of basic seed to 5 MT per year by NaCRRI

● Seed companies to produce 1,400 MT of commercial seed per annum

● Increased market share of direct sales to farmers through agro-dealers from less than 10% to 30% by end of the project

Part B – Implementation (5)Project Exclusions & Interfaces

Exclusions● The project will operate in Uganda only● This project will only improve the quality of NERICA rice seed● The project will only work with farmer groups through existing seed company

networks – these are NASECO and CAII – but may include other Ugandan companies

● ●

Interfaces● The SDC funded Good Seed Initiative project which is also working on improving the

capacity of farmers to produce good quality seed of NERICA rice seed, but the location of the project is different. However some of he dissemination materials from the RIU project can be used in the SDC project and vice versa.

● ● ●

Part B – Implementation (6)Key Constraints & Assumptions

Constraints● Both seed companies who are part of the project and will be bulking up

Foundation seed do not have irrigation facilities, hence will depend on the natural rainfall cycle, implying that their activities will be dependent on rainfall availability

Assumptions● Rice consumption is to increase or remain where it is at the moment● Rice will remain a priority crop for the government of Uganda with its potential

to reduce household hunger and poverty ● Farmers currently receiving subsidised or free seed will pay for seed when

there is no other alternative● NERICA production is profitable for seed companies● ● ●

Part C – Reasons for CABI (1)Key Business Benefits - Strategic

● The project will continue to expand CABI expertise in seed systems and increase credibility to work in a key area of development in which donors are investing significant funds

● The business will help to make CABI expertise in improving the quality of seed known to Research Into Use and Uganda

● It will contribute to CABI’s bottom line● The business is contributing directly to CABI’s mission of

solving agricultural problems ● ●

Part C – Reasons for CABI (2)Key Business Benefits – Financial(Externally funded Projects only)

Full Project Budget – Planned Comments

Donor Currency: (£) 199,900

Exchange Rate to £: 1

Overall Contract Value in £ (if known): 199,900

Costs Billed to Project Donor (£)

Gross Revenue (Total Project Revenue): 199,900

Payments to External Collaborators: 97,500Net Income: 102,400

CABI Implementation Costs (£)

CABI Staff Costs: 33,058Direct Costs(other direct costs, for example travel, etc) 48,000

Net Profit/Loss (Project Contribution): 21,343

Net Project Contribution (%): 20.84%

Note that the financials should match the information in the Project Financial Analysis (PFA) form.

Part D – Risks (3)Security Risks

Location of Work Has CABI worked there before?

(Yes / No)

Is there a current, or likely, security risk in that location?

(Yes / No)

Is an alternative secure location eligible for project?

(Yes / No)

Uganda Yes No. However, there has been civil war in the northern part of the country which, so far, has not affected the areas where the project is located, and it is now at a limited scale.

N/A

Part D – Risks (1)Key Risks(for Collaborator, Security, Technical Risks, see next slides)

Risk Owner Likelihood

(1=Low;

3=High)

Impact

(1=Low;

3=High)

Total

(1=Low; 3=High)

Management Strategy

(Choose from Prevention, Reduction, Contingency, Transference, Acceptance, and give brief description of how applied)

1. Weather conditions compromise production of good commercial seed

Project executive

2 3 6 Acceptance – have to tolerate the risk. The Executive can not change the weather patterns

2. Farmers are unwilling to pay for seed

Project executive

1 3 3 Acceptance – have to tolerate the risk since the Executive can not change the farmers’ opinion

3. Project Implementing Agencies (collaborating institutions) fail to deliver

Project Manager

1 3 3 Reduce - by capacity building both material and human resources. This will be re-enforced by a launching workshop during which the roles of the different PIAs will be clarified

4. Seed companies can not access adequate quantities of basic seed for production of commercial seed

Project manager

1 2 2 Reduce - by proper planning

Part D – Risks (2)Collaborator Risks

Collaborator Name

(to be paid by CABI)

Has CABI worked with them before? (Yes / No)

Assessment of Collaborator Risk

Include, for example:• Their reputation;• Past experience of working with them (if appropriate).

How much (£) in total is the Collaborator to be paid?

NaCRRI Yes Very reputable collaborator. CABI has worked very well with NaCRRI before, and they were able to deliver. Currently collaborating in the CFC funded Coffee Leaf Rust Project and they are delivering. 66,400

NASECO No NaCRRI has been working with NASECO before, and they have a good reputation. The company has also been in service for long and work in many parts of the country.

31100

CAII No The company is only six years old, however, their reputation so far has been good

Part D – Risks (4)Technical Risks

Technical Work Has the Lead Centre previously undertaken this Technical work?

(Yes / No)

Has another area of CABI previously undertaken this Technical work?

(Yes / No)

Production of foundation seed Yes. Production of foundation seed was carried out previously on Kale vegetable

N/A

Increasing volume of seed through out growers

Yes. Previously and currently being done through the Good Seed Initiative

CABI Pakistan

Raising awareness Yes. In variously projects including the SDC funded Good Seed Initiative which is taking place in the same country and with the same main PIA

N/A

Part E – Dissemination & Impact (1)Dissemination of Results – awareness raising is part of project

Dissemination Method(what, how, etc)

Target Results Measures

Use of print media on Rice Seed Health

1. 30 contracted certified rice seed producer groups/seed out growers with a targeted figure of 650 smallholder seed out growers

2. Staff of two seed companies who will be training out growers

3. Extentionists in the two project areas

Reports on dissemination activities

Radio programmes on Rice Seed Health

Talk shows aired twice for each language at two major project sites during the main rice growing stages, including before planting. These will target rice growers/seed producers, and future rice growers and seed producers

Listenership data collected by the FM radio stations

Videos on Rice Seed Health

1. 30 contracted certified rice seed producer groups/seed out growers with a targeted figure of 650 smallholder seed out growers

2. Staff of two seed companies who will be taking part in the project

3. Extentionists in the two project areas

Reports on dissemination activities

Part E - Dissemination & Impact (2)Impact of Project(Scientific, Technical, Commercial, Social, Environmental)

Impact Target Measures

NACRRI ‘s capacity for producing basic NERICA rice seed increased to 5 MT per year

NACRRI’s records for Foundation 1 NERICA rice seed production

There will be increase in capacity of NASECO and CAII seed companies to produce and distribute quality certified rice seed in large quantities to 93,000 smallholder grain producers who will earn income from producing about 70,000 MT of rice grain

Impact assessment report

Part F – Reporting and Sign-off (1)Reporting

Information Provider Information Required Interested Parties Frequency

a) Project Manager

b)

c)

a) End stage reports

b)

c)

Corporate Management (CABI)

a) Once a year

b)

c)

a) Project Manager

b)

c)

a End stage reports

b)

c)

Project Board (CABI)

a) Twice a year

b)

c)

a) Project Manager

b)

c)

a) Success stories

b)

c)

Marketing (CABI) a) Ad-hoc

b)

c)

Project manager a) Half year reports

b) Annual reports

c) Final technical reports

Collaborators (External) – paid by CABI

a) Once a year

b) Once a year

c) Once over lifespan

Project Manager a) Half year reports

b) Annual reports

c) Final technical reports

Partners (External) a) Once a year

b) Once a year

c) Once over lifespan

Project Manager a) Half year reports

b) Annual reports

c) Final technical reports

Donors / Funding Agency (External)

a) Once a year

b) Once a year

c) Once over lifespan

a)

b)

a)

b)

Other – please specify

a)

b)

Part F – Reporting & Sign-off (2)Supporting Documentation

As a minimum to accompany the completed PID:● Project Financial Analysis

Extra supporting documentation may be provided:● Gantt Chart (or Log Frame)● Any other documentation as appropriate

Please note that projects with an Intellectual Property Right (IPR) component require the contract to be submitted to PMG prior to signature.

Part F – Reporting & Sign-off (3)Authorisation

Project Executive / EMT: ……………………………………………

Date: …………………………………………………………..

PMG Sign-off (Level 1 Projects) …………………………………………..

Date: ………………………………………………………………………….

Approval of: PID Development of Business Plan

PMG Comments and/or Follow-on Actions:

Appendix A – New Product / Initiative (1)

Customer Needs & Trends

What Problem Are We Trying to Solve?

<Evidence from market research, in-market interviews>

Purchasing Criteria

<evidence>

Purchasing Process

<evidence>

Preferred Pricing Models

<evidence>

Strategic Fit

Market Attractiveness

<£ per annum, size, strategic importance>

Market Growth & Trends

<% CAGR, evidence>

Profitability <High/Medium/Low, evidence>

Competition <Significant existing players, partner opportunities, quantified scale of competition>

Appendix A – New Product / Initiative (2)

Financial Impact

Revenue Opportunity <£ p.a. after 3 years, Gross/net revenue, Evidence, eg. no. of subscriptions @ £x, Annual growth rates, Total project revenue/contract value, etc>

Total Investment Required

<quantify, breakdown of expenditure (staff costs vs. direct costs), capex vs. P&L expenditure, payments to collaborators, etc>

Return on Investment <profitability target, return on capital employed, pay-back period/break-even, net project contribution, etc>

Proposed Product / Initiative Specifications

Product / Initiative Scope <Summary definition of product scope and objectives, Key selling points – how is this product better than the competition?>

Workflow Integration <Explain how product fits into user’s workflow>

Revenue Model <Subscription, purchased, sponsored>

Sales & Marketing Strategy

<Online marketing/conference attendance/direct mail/telesales, etc>

Technology Strategy <In-house development or third party solution?>