Organisation and management

Overall project organisation and coordination

The structure of project implementation involves four levels. The upper level has the general responsibility for project implementation, is concerned with the overall project supervision and monitors the consistency of implementation with project objectives strategies and policy, and approves the WP&Bs. All project implementation issues that need policy decisions are resolved at this level. The second level is concerned with the operational management of the Special Account and its related obligations, with contracting service providers and monitoring their performance, and with the evaluation of project impact. The third level concerns the provision of services to poor smallholders, primary cooperative societies, farmers associations, and SMEs. The fourth level concerns the production and marketing activities funded under the project.

The Project Steering Committee. The Ministry of Agriculture is the executing agency of the project. Through the Project Steering Committee (PSC), MINAGRI will be ultimately responsible for the management of the first level. Members of the Project Steering Committee will be the Secretaries General of MINECOFIN, MINAGRI, MINICOM, the Governor of BNR, the Director of the Privatisation Unit, the DG of Rwanda Development Bank, the Prefects of the four concerned provinces and the representative of TWIN. The PCU Coordinator will be the secretary of the PSC. The Chairman of the PSC will be designated by GOR.. All public, semi-public, and private institutions involved in project implementation would be invited to nominate representatives and to participate in the meeting of the PSC. The PSC meets twice a year, assesses implementation progress, provides policy guidance as required, and approves the annual progress report of the PCU and the AWP&B. The PSC also approves the arrangements made for the establishment and financing of the CPMCC/NTC, reviews their quarterly and annual financial reports and audits, as well as the quarterly reports and annual audits of the smallholder guaranteed credit scheme, and ensures that adequate project resources are actually channelled to viable enterprises wishing to develop new cash crops, in accordance with project objectives. The requirement of the CPMCC/NTC and of the RDB to submit reports and audit to the sub-committee will cease when the primary societies shareholders acquire full control of the companies.

The Project Coordination Unit. A Project Coordination Unit (PCU) will be appointed to provide autonomous coordination and day to day administration of the project. The PCU reports to the Ministry of Agriculture. The Ministry of Agriculture will provide suitable office accommodation including space for TWIN . Within six months of project effectiveness, the PCU will prepare a project implementation manual. The role of the central PCU will be: to handle the project accounts, to prepare the AWP&B, consolidating the AWP&B of all the service providers contracted to implement the project components; to contract the providers of services; to procure all goods and services (excluding those that are included in the contracts with service providers and those that are required by the CPMCC/NTC; to monitor and evaluate the performance of the service providers; to undertake beneficiary tracking surveys and evaluate project impact at beneficiary level; and to contract independent audits of the project accounts and of the CPMCC/NTC. The central unit will produce financial and progress reports, in accordance with standard IFAD procedures. The Senior Technical Advisor will play a special role in negotiating the contracts with the service providers, in close consultation with the Project Coordinator.

The provincial units will be set up in Kigali-Ngali, Kibuye, and Gikongoro (the latter also to serve the two districts of Kibungo province included in the project area). Their function is to facilitate the relationships between the central unit, the staff and consultants of IFAD and of the Cooperating Institution, TWIN and other service providers, the DALF and the provincial and district governments; to provide logistical support, including office space and use of office equipment, to the service providers operating in their area; to monitor implementation at provincial level, and to report on performance and problems. The provincial units are accountable to the central unit.

The PCU will facilitate and monitor the funding arrangements and management of the tea and coffee processing and marketing enterprises supported by the project, whereas it is understood that the control over their investment and operations is the responsibility of the respective Boards of Directors, in which the RDB will play a major role. Through the life of the project, the PCU coordinator will be invited to Board meetings as observer. The PCU will exercise the right to control the membership of the primary societies, to ensure compliance of IFAD and GoR directives that members qualify as IFAD target group, and that adequate chances are given to women, and in particular to women head of HHs, to fully benefit from the project funded activities.

Arrangements with the Banque Nationale de Rwanda (BNR). A special arrangement will be worked out with the BNR with regard to the funding of industrial and commercial enterprises in tea and coffee, to the credit lines for the tea and coffee smallholder credit guarantee scheme, and to the funding of SPME and farmer associations projects for new cash crop development. Under the arrangement, the BNR will disburse project funds to the Rwanda financial intermediaries interested in funding the ultimate project clients. The RDB will prepare the necessary documentation about each one of the tea and coffee commercial companies sponsored by the project, and propose a financial package with the required structure of equity, long term loans, and overdraft facilities. The long term funding (equity and loans) will be channelled through the RDB, whereas overdraft facilities may be channelled through the RDB or other banks. For the other credit schemes the BNR will distribute project funds to different financial intermediaries, including the RDB, depending on which financial institution is interested to participate in the credit schemes from time to time. IFAD funds to be used for lending by the financial intermediaries will be loaned out by the BNR at a rate of interest to be approved by IFAD. Funds used to pre-financed the cooperatives equity investment will be loaned out with no interest to the RDB, to be returned by the RDB when the cooperative shares have been fully paid for by the dividends of the companies. Each operation approved by the BNR will be cleared by IFAD.