A brief outline European Union-Joint Rural Development Programme (EU-JRDP) Y2016

Agriculture in Egypt - Constraints that need to be addressed Agriculture is the main activity in rural areas of Egypt (13.4 % of total GDP and for 18.3 % of exports). It employs more than 25 % of the population and is the main source of income for about 55 % (CAPMAS, 2012).  Needs to develop the rural areas in 3 Governorates of Egypt (Fayoum, Minya and Matrouh) :  To Increase the efficiency of water usage, which is a challenge due also to the poor water quality (organic and chemical pollution, especially in rural areas Water-use efficiency of field irrigation systems is low (50%);  To promote a better management of landholdings: 85% of landholders cultivate less than 1 HA, often not enough to earn a sufficient income and limiting the utilization of modern technologies (in farming, irrigation, agroindustry and marketing services).  To deal with limited small landholders’s income from agricultural acrivities. Alternative employment opportunities are lacking due to the limited development of SMEs in rural areas  Need to identify source of income, with diversification into non agricultural activities).

EU-JRDP Main Highlights TITLEEUROPEAN UNION JOINT RURAL DEVELOPMENT PROGRAMME under the European Neighborhood Programme for Agriculture and Rural Development (ENPARD INITIATIVE) BENEFICIARY COUNTRYArab Republic of Egypt HOSTING INSTITUTIONS Ministry of International Cooperation BUDGET HEADINGEuropean Neighbourhood and Partnership financial cooperation with MED Countries TOTAL COST Total Estimated Cost (2 Components): EUR 38 Million EU Contribution: EUR 27 Million Parallel co-financing by the Italian MFAIC: EUR 11 Million AID METHOD/Management mode Project approach: Non-Decentralized management 1.The Rural Development Component will be implemented via indirect centralized management with the Italian Cooperation (MFAIC) 2.The Deminig Action Component will be implemented via joint management with the UNDP DURATION58 months (starting from December 2014)

Description of the Programme (EU Contribution) The Action aims at strengthening the capacities of rural associations (farmers and non-farmers) and will support the socio-economic development of the rural beneficiaries in the target areas.  The overall objective is to improve the quality of life of the people living in the rural areas of three Governorates of Egypt (Fayoum, Minya and Matrouh), with the focus on the sustainable management of territorial resources.  The specific objectives are :  To increase sustainable agricultural production by managing water resources more effectively and adopting Good Agricultural Practices (GAPs).  to improve rural livelihoods by promoting income-generating activities (agricultural/nonagricultural) and making best use of local resources.

Area of intervention three Governorates of Egypt (Fayoum, Minya and Matrouh)

Matrouh Governorate Expected results- Matrouh Governorate  Result 1  Increase water harvesting to reduce the severe shortage of water supply for domestic use and animal consumption, as well as raise arable land for agricultural production.  Result 2  Adoption of Good Agricultural Practices (GAP) to improve quality and quantity of main crops.  Result 3  Enhance rural communities of farmers and community based associations by strengthening their production and organizational capacity.  Result 4  Support livestock production of rural communities.

Fayoum and Minya Governorates Expected results – Fayoum and Minya Governorates  Result 1  Improve the efficiency of irrigation systems as well as the water management.  Results 2  Adoption of Good Agricultural Practices (GAP) to improve quality and quantity of main crops.  Result 3  Reuse of agricultural wastes for agricultural production and generation of additional income.  Result 4  Enhance rural communities of farmers and community based associations by strengthening their production and organizational capacity.  Result 5  Increase capacities of local service providers.

Additional expected results in Fayoum Governorate  Result 6  Enhance eco-tourism sector.  Result 7  Development of an archaeological site.  Result 8  Establishment of functional Local Action Group (LAG).

Description of beneficiaries and stakeholders involved  The main targeted direct beneficiaries: rural communities of farmers, community-based associations (water use associations, co- operatives, etc.), women organisations, as well as to Bedouin ‟ tribes, and their families. Additionally, small business associations of non- agricultural sectors (e.g. artisans) will be also targeted.  The indirect beneficiaries: rural communities and their family, tourists visiting the Programme implementation areas. The implementation of the Programme foresees the involvement of different stakeholders both at Governmental and non-governmental level, including private and international organizations.

Institutional Agreements Ministry of International Cooperation Ministry of Agriculture (Lead Beneficiary) Ministry of Irrigation Ministry of Local Development Delegation Agreement Financing Agreement EU Delegation in Egypt Italian Embassy in Cairo/Italian Development Cooperation Office

Procurement and grant award procedures  All grants contracts will be awarded and implemented according to the procedures and standard documents of the EU and will follow the rule described in the Practical Guide to Contract Procedures for European Union External Actions (PRAG).  The preparation and award of the services, works and supply contracts, will follow the Italian Procurement procedures

Implementation Modalities PMU STEERING COMMITTEE  Steering Committee members: Ministry of Agriculture and Land Reclamation, Ministry of Water Resources and Irrigation, Ministry of Local Development, EU Delegation (OBSERVER), Italian Cooperation, UNDP, Representatives of the Governorates, other Line Ministries involved in the programme (to be invited by the Government), Represenatives of Local beneficiaries, PMU (secretariat)  Main office is set up in Cairo and a sub-office will be in each governorates (Minya, Fayoum and Matrouh)  In each Governorates (Minya, Fayoum and Matrouh) a Local Committee will be set up (with representative of Governorates, local communities) by the Steering Committee

Financial implementation modalities  The Programme activities will be implemented through GRANTS, SERVICES, SUPPLIES AND WORKS CONTRACTS.  External contractors will provide services following the specification produced by the PMU.  In particular, the Grants will be related to the GAP adoption to boost the quality and quantity of main crops available in the area of the Programme, to enhance and to strengthen rural community associations.

Sustainability of the Programme  The Programme has been formulated through a participatory approach, which aims at the highest inclusion and interaction among beneficiaries and implementing actors.  Additionally, the full involvement of all local governmental and non- governmental institutions during the implementation phase will also ensure the sustainability of the action.  Training and capacity building activities will allow raising the knowledge and skills of the beneficiaries thus increasing the benefits for the local communities involved, leading to the improvement of their livelihood conditions.

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