CONCEPT NOTE MECHANISATION INFRASTRUCTURE Group Members

Outline of Presentation Introduction Project Justification Intervention Zones and Target Group Main objectives of the project Components, outputs and activities Costing Implementation strategy Project organisation and management Monitoring and evaluation Risks

Introduction MOFA’s FASDEP II seeks to among others: Modernise agricultural sector through mechanisation Ensure food security and income diversification while targeting 80% small scale rice farmers and 20% emergent commercial rice farmers FASDEP II ensures consistency with Ghana Shared Growth and Development Agenda, NEPAD’s CAADP and the MDGs Under CAADP agriculture is expected to grow at 6% and 10% government budgetary allocation

Justification Development Issues Poor mechanisation services accessibility due to : Low tractor-farmer ratio (1:1800, year 2000) Over aged machinery (over 15 years) Inadequate mechanisation centres Limited agricultural machinery for timely farming operations (harvesters, threshers, etc) High initial capital investment

Justification (Con’td) Effects Improper paddy field development High postharvest losses Low rice production yield Drudgery and fatigue – youth no longer interested in agriculture leaving farming to the aged Reduce effective productivity of the rice value chain

Justification (Con’td) 84 mechanisation centres established nationwide to provide services to all categories of farmers under MOFA’s Accelerated Agricultural Mechanisation policy . However, number is inadequate to cater for high demand of machinery services as well as having the full complement of machinery along the rice value chain. Hence the need for mechanisation infrastructure development

Intervention zones and target groups Mechanisation centres will be established at all rice growing areas: Rain-fed lowland, rain-fed upland, irrigated fields However, full complement of machinery at centres will vary from rice ecologies. (E.g. provision of animal traction in Northern Ghana to serve as intermediate technology). Target groups Small and medium scale rice farmers and processors in these areas.

Main objectives of the project Global Objective: To make agricultural mechanization services readily available in a timely and affordable manner to farmers and processors to enhance food security. Specific Objectives: Strengthen and expand existing mechanisation services centres Support the establishment of additional 100 mechanisation services centres in major rice growing districts.

Components Four main components of the project: Capacity building for commercial management of AMSECs Improving beneficiaries access to AMSEC services Machinery/equipment maintenance at AMSECs Coordination

Components, Outputs and Activities Capacity building for commercial management of AMSECs 1.1 Training manuals developed 1.1.1 Conduct training needs assessment for personnel 1.2 All personnel trained 1.2.1 Train/Technical backstop (book keeping, proper handling/operation, etc) 1.3 All categories of personnel recruited 1.3.1 Facilitate the recruitment of personnel (manager, engineer, financial officers, technician, mechanics, operators) to manage the centre

Component, Output & Activities (Con’td) Improving beneficiaries access to AMSEC services 2.1 Suitable sites identified and selected 2.1.1 Conduct feasibility for identification and selection of suitable sites 2.2 100 private companies identified and selected 2.2.1 Identify and select private companies for additional centres 2.3 Signed land agreement and 100 mechanisation centres constructed 2.3.1 Negotiate for land use and construct mechanisation centres 2.4 AMSEC rehabilitated 2.4.1 Rehabilitate existing AMSEC 2.5 Mechanisation centres equipped 2.5.1 Stock centres with requisite machinery along rice value chain 2.6 Farmers sensitised 2.6.1 Sensitise farmers of importance of mechanisation

Component, Output & Activities (con’td) Machinery/equipment maintenance at AMSECs 3.1 Machinery identified and introduced 3.1.1 Identify and introduce appropriate and suitable machinery along the value chain 3.2 AMSEC workshops rehabilitated 3.2.1 Rehabilitate existing AMSEC workshops with up to date tools/equipment 3.3 Spare parts points set up 3.3.1 Facilitate the set up of spare parts points at operation areas of centres 3.4 Machinery/equipment maintained 3.4.1 Sensitise operators to carry out daily and routine maintenance on machinery/equipment

Component, Output & Activities (Con’td) Coordination 4.1 Meeting organised 4.1.1 Organise consultation meetings with stakeholders 4.2 Monitoring visits carried out 4.2.1 Carry out monitoring and evaluation visits

Costing Component Funds allocated (US$) Remarks (%) Capacity building for commercial management of AMSECs 0.5 M 10 Improving beneficiaries access to AMSEC services 3.0 M 63 Machinery/equipment maintenance at AMSECs 1.0 M 21 Coordination 0.3 M 6 Total 4.8 M 100

Implementation strategy of the Project Metropolitan, Municipal and District Assemblies (MMDAs) MMDAs will be encouraged to apply some of their Common Fund to establish AMSECs in their districts . Private Companies/Enterprise Private Companies will own the centres Managing Director, who may employ a team of Engineers, Technicians/Mechanics and operators to support the daily running and management of the centre. Stakeholders dialogue MOFA, DPs, Financial Institutions, Mechanisation Services Providers, Farmer Representatives and District Assembly will agree on charges for services rendered

Project Organization and Management Supervision MOFA will play supervisory role to ensure that the machinery are applied effectively Monitoring MOFA shall institute effective monitoring procedures to ensure that best practices are adopted during the operation phase Training MOFA shall continue to offer initial and periodic and regular training in care handling and operation techniques to ensure extended operational lives of machinery and equipment General Operations Private companies / District /Municipal Assemblies will man the centres

Monitoring and Evaluation An M&E framework will be developed to track the progress/performance of the centres based on indicators every quarter.

Risks Lack of other factors such as improved seeds, rainfall, good agricultural practices, etc could lead to low production hence low earning for farmers to afford mechanisation services. Inadequate and lack of machinery to stock the centres High cost of borrowing

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