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COMMITTEE ON COMMODITY PROBLEMS |
INTERGOVERNMENTAL GROUP
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Seventeenth Session |
Cape Town, Republic of South Africa
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Progress Report on Meat Project Developments for the Common Fund for Commodities |
DRAFT TERMS OF REFERENCE OF THE SUPERVISORY BODY/SUPERVISORY EXPERT GROUPS
1. This document reports on progress made since the last Session of the Group, in May 1996, in the formulation, implementation, supervision and evaluation of livestock projects for financing by the Common Fund for Commodities (CFC). It also proposes some arrangements to enable the Group to discharge its responsibilities for both project sponsorship and supervision during the two-year intervals between its formal Sessions.
2. This project was sponsored by the Group in 1994. FAO was chosen as the Project Executing Agency (PEA), which meant that, according to the CFC's rules, the IGG on Meat had to delegate to another agency the supervisory functions. Winrock International, a non-profit organization with world-wide experience in agricultural development, was designated to act as the supervisory body (SB). The total project budget amounted to US$1.3 million, of which about US$640 000 came from the Fund. The project, hosted by Uganda, commenced in October 1996 and is scheduled to end in March 1999. However, because there was some delay in the completion of infrastructural work and in the procurement of the processing equipment, a six-month extension has been solicited by the PEA and Winrock. The two main components of the project include the development of processed meat products and training in meat processing. The mid-term evaluation of the project was carried out in two phases in May and September 1998. The corresponding report, issued in English only, has been forwarded to the CFC for its review and is tabled for information (document CCP:ME 98/CRS1).
3. At its last Session, the Group agreed to sponsor a project submitted by the Comité Permanent Inter-Etats De Lutte Contre la Sécheresse Dans Le Sahel (CILSS), which aimed at strengthening livestock marketing and intra-regional trade in western Africa. In doing so, the Group recommended, inter alia, to give due consideration to the macro-economic environment in the sub-region and to associate competent regional intergovernmental organizations in project preparation. In line with these recommendations, the project was expanded to include a policy component to determine appropriate incentives to improve market efficiency and to promote the streamlining and co-ordination of participatory countries' policies. This second component was designed by the International Livestock Research Institute (ILRI), with bases in Nairobi and Niamey. The three-year project, budgeted at US$1.47 million (of which US$950 000 to be financed by the CFC), was favourably considered by the Fund's Consultative Committee in July 1997 and was approved by the Fund's Executive Board in October 1997. Implementation will commence soon, as the agreements between the CFC, the IGG and CILSS, the proposed executing agency, are in the process of being signed. A summary of the project proposal is available to the Group, for information (document CCP:ME 98/CRS2).
4. This project was sent to the Secretariat by the CFC for assessment in May 1998. It is a small-scale pilot project for cattle and sheep raising in an arid eco-system, which seeks to promote the development of mixed crop-livestock production systems in Burkina Faso. It is expected to lead to the development of a larger, loan financed, project for small scale livestock producers benefiting a number of countries. Because of its relatively small size (CFC budgetary contribution US$28 600 out of an overall US$32 900), the project falls within the "fast track project" category for which special procedures for project processing are followed by the CFC, including their authorization by the Fund's Managing Director. A progress report will be provided as to the genesis of this project.
5. Several project profiles have been submitted to the Secretariat for consideration and, possibly, sponsorship by the Group (document CCP:ME 98/CRS3). The first one, prepared by the FAO Animal Production and Health Division, is a replication of the project "Development and Promotion of Value-Added Meat Products", currently implemented in Africa, which FAO proposes for implementation in the Asian region.
6. Three other projects have been proposed by ILRI. They are based on an identical project profile, but are designed to be located in different regions, i.e. Africa, Asia and Latin America. Their main objective is to improve welfare of producers and low-income consumers through an increase in productivity and market participation by poor livestock owners. Each project would be implemented over a three-year period and would involve four to five countries. The average project cost is estimated to be approximately US$8 million, of which the CFC will be requested to fund US$3 million in the form of a grant plus US$2 million in the form of a loan to finance the smallholder credit component. Co-financing from ILRI and national institutions should provide the balance of US$3 million.
7. Following its designation as a CFC International Commodity Body for livestock and meat products in 1991, the Group was assigned two major responsibilities, namely that for sponsoring projects for submission to the CFC and that for supervising projects which it had sponsored and the CFC agreed to finance. Under the present rules, decisions by the Group can be taken only during its sessions, which are now normally convened once every two years. However, experience has shown that decisions need to be taken in relation to these two functions during the intervals between the formal sessions. Several of FAO's other intergovernmental groups, also faced with extended inter-session periods, have adopted mechanisms to ensure that the two basic responsibilities they have in relation to CFC are adequately met during those intervals. A similar line of action is proposed for the IGG on Meat as set out below.
8. The ICB is entrusted with the responsibility of sponsoring projects for submission to the Fund. Proposals can be formulated by the ICB itself or by an another organization, either national or international. Since the timing of submission of the project profiles does not necessarily coincide with the formal sessions of the Intergovernmental Group, several of those Groups that are faced with an extended inter-session period have established sub-groups and authorized them to take decisions regarding project sponsorship on their behalf, in the interim. The Group may also wish to establish such a Sub-Group with the authority to act on its behalf in the period between sessions. The following proposal is made for decision by the Group:
a) A Sub-Group on Intersessional Matters of the Intergovernmental Group on Meat is established with the following membership: the Chairperson and the two Vice-Chairpersons.
b) The Sub-Group may confer whenever, in the opinion of the Chairperson, it is considered necessary to do.
c) The Sub-Group will, between sessions, act on behalf of the Group in relation to the Group's role as an International Commodity Body under the rules of the Common Fund for Commodities in all matters pertaining to the Common Fund, except in supervisory functions.
d) The work of the Sub-Group would not entail any additional costs for FAO.
9. If endorsed by the Group, amendments to its Rules of Procedures along the above lines would have to be submitted to the next session of the CCP, with an indication that the Sub-Group would normally confer through means of communication other than formal meetings and, thus, would not give rise to budgetary implications.
10. According to Regulation X of the "Regulations and Rules for Second Account Operations of the CFC", the ICB sponsoring a project is normally expected to assume the role as Supervisory Body. In order to ensure the continuity of supervisory functions between sessions, flexible ad hoc arrangements were worked out jointly between the CFC and other ICBs envisaging the temporary delegation of the supervisory responsibilities to a small Supervisory Expert Group (SEG). Such a SEG normally comprises three members with suitable expertise in each project area as well as in project monitoring and evaluation procedures, one of whom would be an FAO staff member performing technical secretarial functions. The SEG would undertake the analysis of project implementation reports, review the expenditures made and the results achieved by the Project Executing Agency (PEA) and assess their conformity with the project objectives. It would also prepare an informative summary supervision report for review and approval by the Group in its capacity as Supervisory Body. Suggested draft terms of reference of the Supervisory Body/Supervisory Expert Group, drawn from those adopted by the Intergovernmental Group on Oilseeds, Oils and Fats, are set out in Annex A for consideration/adoption by the Group.
11. In the case of a number of other IGGs, the CFC covers supervision expenses up to a ceiling of US$15 000 per project annually, for a maximum project period of five years, providing for expert fees, travel, general support services and contingencies. It is expected that the same arrangement would apply to a SEG established by the IGG on Meat.
12. In the light of the review of project status and progress and after consideration of the proposals for establishing a Sub-Group, dealing with project sponsoring and related matters, and a Supervisory Expert Group, assuming project supervision functions, the Group might wish to:
ANNEX A
DRAFT TERMS OF REFERENCE OF THE
SUPERVISORY BODY/SUPERVISORY EXPERT GROUPS
1. The Intergovernmental Group on Meat, in its capacity as Supervisory Body
(SB) of Common Fund projects shall perform the functions and responsibilities
as stipulated in Regulation X of the Regulations and Rules for Second Account
Operations of the Common Fund for Commodities. In particular, it:
i) Shall supervise and monitor the implementation by the Project Executing
Agency of projects sponsored by the Intergovernmental Group on Meat and financed
by the Common Fund for Commodities and other donors. This function will be
performed on the basis of reports submitted by the Project Executing
Agency;
ii) Shall assess whether the implementation activities undertaken, the
expenditures made and the results achieved by the Project Executing Agency
conform with the project objectives;
iii) Shall assess the continued relevance of the envisaged project activities
and the prospects for a successful implementation;
iv) Shall have authority to request additional information from the Project
Executing Agency or from any other party involved with the implementation
of the project;
v) Shall act as the focal point for discussions relating to the future
development of the project, including possible modifications to be made
therein;
vi) Shall, upon completion of the project, approve the final report by the
Project Executing Agency. In doing so, it may attach its own comments to
the report.
2. During the intervals between its sessions, the IGG/ICB delegates its functions
as SB to a Supervisory Expert Group (SEG) in order to ensure continuous
supervisory functions as required by the CFC.
3. The Supervisory Expert Group shall report to the Intergovernmental Group
on Meat, it being understood that copies of its reports will be forwarded
by the Secretariat to the Common Fund for Commodities, and the co-financing
institutions.
4. Membership of the Supervisory Expert Group shall include two experts with
sound knowledge of the project field able to evaluate the technical and economic
aspects of the project and to carry out supervisory activities, including
an FAO staff member performing technical secretarial functions.
5. The work of the Supervisory Expert Group shall be co-ordinated by the
IGG on Meat Secretariat.
6. Rules of procedure of the Supervisory Body/Supervisory Expert Group shall
be, mutatis mutandis, those of the Intergovernmental Group on Meat.