Djibouti: Developing agro-pastoral shade gardens as an adaptation strategy for poor rural communities (UNDP) (DJI/MIE/Agri/2011/1, US $4,658,556)
42. The Chair introduced the project which sought to support an adaption strategy to foster the transition from pastoralism to a new and more resilient multi-functional practice of agropastoral shade gardening.
43. Having considered the comments and recommendations of the Projects and Programme Review Committee, the Adaptation Fund Board decided to:
(a) Endorse the project concept, as supplemented by the clarification response provided by the United Nations Development Programme (UNDP) to the request made by the technical review;
(b) Request the secretariat to transmit to UNDP the following observations:
(i) In the fully-development proposal, the proponent should clarify the coordination mechanisms with regards to the micro-credit component, as the revised concept fails to justify the concrete adaptation benefits associated with the micro-credit component; rather than supporting business-as-usual development activities. The methodologies are unclear and the involvement of local organizations in facilitating the system is also ambiguous. As the concept will undeniably rely on other mechanisms to complement and sustain access to finance beyond project completion, those mechanisms should be identified. Further, the micro-credit component (Component 3) should be justified in relation to the other components;
(ii) Unless the proponent describes how the project beneficiaries, and rural communities elsewhere, will continue to access microfinance services, the sustainability strategy remains questionable. The distribution of benefits amongst communities should be justified, given the small number of shade gardens;
(iii) The scale-up strategy of the project should be clarified as it currently hinges solely on the micro-credit schemes. Given the small number of shade gardens being developed, and the small budget being proposed for the project, a small-scale microcredit system does not guarantee the scaling up of shade gardens, which requires a high level of investment; and
(iv) It is unrealistic that the proponent has not identified any alternatives to the proposed project. The proponent should provide other viable alternatives to the project when addressing cost-effectiveness.
(c) Request UNDP to transmit the observations under item (b) to the Government of Djibouti; and
(d) Encourage the Government of Djibouti to submit through UNDP a fully-developed project proposal that would address the observations under item (b).