Agriculture Sector Development Medium Term Investment Plan 2014-2018

The Democratic Republic of Timor-Leste MINISTRY OF AGRICULTURE AND FISHERIES AGRICULTUREAGRICULTUREAGRICULTUREAGRICULTURE SECTORSECTORSECTORSECTOR DEVELOPMENTDEVELOPMENTDEVELOPMENTDEVELOPMENT MEDIUMMEDIUMMEDIUMMEDIUM TERMTERMTERMTERM INVESTMENTINVESTMENTINVESTMENTINVESTMENT PLANPLANPLANPLAN ((((2014201420142014 –––– 2018201820182018)))) NATIONAL DIRECTORATE OF POLICY AND PLANNING (DNPP) DILI, MAY2013 Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014-2018) 2 FOREWORD Since the commencement of the VthConstitutional Government of Timor-Leste’s Program, the Ministry of Agriculture and Fisheries(MAF) has made great advances in setting its priorities and developing a planning framework and budget to transform MAF into an effective and service-oriented organization which implements targeted programs and projects to improve the livelihoods of Timor-Leste’s rural population. This Medium Term Investment Plan (MTIP) and its associated Medium Term Operation Plan (MTOP)is the logical next step following on from MAF’s Strategic Plan (MAFSP) which was finalized in late 2012. In essence, the MAFSP summarizes Government’s strategy to: (i) focus on agricultural and rural development which supports small farmers and promotes improved markets in order to reduce poverty; (ii) ensure food and nutrition security, and sovereignty; and (iii) promote economic growth and employment in rural areas, and thus across the nation. This Medium Term Investment Plan was developed to implement MAF’s vision over the next five years (2014-2018). Once we had identified our Strategic Objectives the Ministry moved on to identifyprojects and programs which address challenges and harnessopportunities in our agricultural sector. As a result, thisMTIP describes five Programs which each correspond to our Strategic Objectives. The five Programs are: (i) sustainable increase in production and productivity; (ii) improved market access and value addition; (iii) improved enabling environment; (iv) organizational development of the Ministry of Agriculture and Fisheries; and (v) natural resources conservation and management During the last six months, MAF’s National and District Directorates engaged in this strategic planning process and produced a practical road map for the Ministry and its stakeholders. It is my firm belief that this plan addresses the most pressing needs in Timor Leste’s agricultural sector over the next five years, and I am speaking on behalf of my Ministry when I say that this MTIPwill guide all development interventions in our agricultural sector. In addition to achieving its targeted results, MAFis fully committed to demonstrate how the Ministry’s development interventions will contribute to the achievement of Timor-Leste’s overall development,as listed in the Timor-Leste Strategic Development Plan (2011-2030). An appropriate M&E mechanism will be established and sufficiently strengthened to regularly and transparently report on progress and impact. Key concepts which my Ministry will embrace during implementation of the Medium Term Investment Plan are: Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014-2018) 3 (i) pursuance of and support for innovative types of partnerships with, for example, other ministries, civil society, non-government organizations, the private sector, and existing and new developmentpartners; (ii) a gradual reduction in agricultural subsidies for production inputs. This can be achievedwithout jeopardizing the national food security objective, with the assurance that special needs and vulnerable groups are supported,and with a clear understanding of the need to increasingly stimulate private sector involvement in agricultural development; (iii) intensification ofevidence-based and results-oriented planning and programing processes to enhance accountability and service delivery; and (iv) advancement of an integrated,participatory,decentralized,bottom-up approach to project and program planning,with an orientation towards innovation along value chains. In line with my opening comments in MAF’s Strategic Plan, I want to reiterate that the development of our agricultural rural sector cannot be undertaken by one Ministry alone. Strong support from other sectors, especially transport and roads, water and sanitation, energy, health, education, and agricultural finance is needed. Multi-sectoral and inter ministerial coordination and collaboration are therefore a priority. I would like to thank all who contributed to the preparation of this MediumTerm Investment Plan. These include representatives fromthe District Administrations,MAF’s staff at all levels, farmer organizations, civil society, the private sector, theWorld Bank, and the Food and Agriculture Organization. On behalf of the Government of Timor-Leste and the Ministry of Agriculture and Fisheries, I pledge my full commitment and undivided attention to the implementation of this Medium Term Investment Plan. Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014-2018) 4 Contents FOREWORD ............................................................................................................................. 2 1 Background ......................................................................................................................... 6 2 Major Programs .................................................................................................................. 7 2.1 Program 1: Sustainable increase in production and productivity ................................ 7 2.2 Program 2: Improved market access and value addition ............................................. 8 2.3 Program 3: Improved enabling environment .............................................................. 9 2.4 Program 4: Organizational development of MAF..................................................... 10 2.5 Program 5: Natural resources conservation and management .................................. 11 3 Budget Situation ............................................................................................................... 12 3.1 Budget required for MTIP ......................................................................................... 12 3.2 Budget required by Directorate ................................................................................. 13 3.3 MTIP budget gap ....................................................................................................... 14 4 Development Partner Commitments ................................................................................ 15 5 The Way Forward ............................................................................................................. 16 Table 1: Budget for Program 1 .................................................................................................. 7 Table 2: Budget for Program 2 .................................................................................................. 8 Table 3: Budget for Program 3 .................................................................................................. 9 Table 4: Budget for Program 4 ................................................................................................ 10 Table 5: Budget for Program 5 ................................................................................................ 11 Table 6: MTIP budget .............................................................................................................. 12 Table 7: Total MTIP investment by Directorate ...................................................................... 13 Table 8: MTIP budget gap ....................................................................................................... 14 Table 9: Development Partners’ commitments ........................................................................ 16 Table 10: Summary of Development Partners’ current projects and programs ....................... 17 Figure 1: Percent budget allocation for Program 1 .................................................................... 8 Figure 2: Percent budget allocation for Program 2 .................................................................... 9 Figure 3: Percent budget allocation for Program 3 .................................................................. 10 Figure 4: Percent budget allocation for Program 4 .................................................................. 11 Figure 5: Percent budget allocation for Program 5 .................................................................. 12 Figure 6: MTIP budget required by percentage ....................................................................... 13 Figure 7: Percent MTIP investment by Directorate ................................................................. 14 Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014-2018) 5 Abbreviations and Acronyms GEF: Global Environment Fund IDF: Institutional Development Fund MTIP: Medium Term Investment Plan MTOP: Medium Term Operation Plan MAF: Ministry of Agriculture and Fisheries MAFSP: MAF Strategic Plan M&E: Monitoring and Evaluation SAPIP: Sustainable Agriculture Productivity Improvement Project TFSCB: Trust Fund for Statistical Capacity Building TLSDP: Timor-Leste Strategic Development Plan National Directorates in Portuguese DNADCA: Direcção Nacional de Apoio ao Desenvolvimento Comunitário Agrícola DNAF: Direcção Nacional de Administração e Finanças DNAH: Direcção Nacional daAgricultura e Horticultura DNF: Direcção Nacional das Florestas DNFTA: Direcção Nacional de Formação Agrícola DNIGUA: Direcção Nacional de Irrigação e Gestão da Utilização da Água DNPA: Direcção Nacional das Pescas e Aquicultura DNPIAC: Direcção Nacional das Plantas Industriais e do Agro-Comércio DNPP: Direcção Nacional de Políticas e Planeamento National Directorates in English NDACD: National Directorate of Agriculture and Community Development NDAH: National Directorate for Agriculture and Horticulture NDAT: National Directorate of Agricultural Training NDAF: National Directorate for Administration and Finance NDF: National Directorate of Forestry NDFA: National Directorate of Fisheries and Aquaculture NDLA: National Directorate of Livestock and Veterinary NDIAWUM: National Directorate of Irrigation and Water Management NDPIA: National Directorate of Plant Industry and Agri-business NDPP: National Directorate of Policy and Planning NDQB: National Directorate of Quarantine and Bio-Diversity NDRES: National Directorate of Research and Special Services Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014-2018) 6 1 Background Enhancing agricultural production, productivity and rural livelihoods has been the main objective of all Governments in Timor-Leste. Investment in agricultureis a fundamental instrument to provide food and nutrition security, reduce poverty, create employment, generate sustainable broad-based economic growth, ensure environmental sustainability, and achieve the Millennium Development Goals. However, such investment has not yet produced the desired results, and Timor-Leste remains strongly depended on food imports, its agricultural production remains below potential and household food and nutrition security are still unsatisfactory. These issues represent major challenges for the Ministry of Agriculture and Fisheries (MAF) to fulfill its mandate of feeding the nation, increasingrural incomes and providing livelihoods for about 70% of the Timorese population. The Vth Constitutional Government is making every effort to accelerate a much-needed agricultural transformation process. The first step in this process was the development of MAF’s Strategic Plan (2014-2020) (MAFSP) as a key instrument to align MAF’s activities and priorities with those in the Timor-Leste Strategic Development Plan (2011-2030) (TLSDP). The MediumTerm Investment Plan (2014-1018) (MTIP) was prepared after the MAFSP. This Plan outlines how Government intends to address the challenges and harnessopportunities in the agricultural sectorover the next five years, and is intended to guide the implementation of MAF’s development initiatives.The MTIPidentifies key program areas and associated cost estimates. It is also a ‘road map’to assist key stakeholders’ decisions on how and where they might assist Timor-Leste’s agriculture sector with the objective of reducing poverty, ensuring food and nutrition security, and promoting employment and economic growth. At present, MAF faces macro-level challenges and constraints at the sub-sectoral and organizational levels. The Ministry is confronted with issues such as inadequate pest control; poor market orientation; little involvement of the district level in planning and decision making; weak strategies for mitigation and adaptation to climate change; and a general capacity constraint in planning, monitoring and evaluation, and data collection. Improving MAF’s service delivery is therefore an ultimate goal of the Ministry. TheMTIP recognizes MAF’s commitment to gradually withdraw direct and full input subsidies. However, the MTIP investment estimates are based on the assumption that subsidies will continue in the short-term (three years). If production subsidies are withdrawn, additional resources would be freed-up to enable the testing of alternative approaches to the provision of services and input supplies. It is anticipated that during this transition period the Government will work on policies and incentive systems for private sector engagement, and at the same time establish farmer cooperatives to increase their involvement and participation in input supply, marketing outputs and other service delivery. Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014-2018) 7 The process of preparing this MTIP was interactive and iterative. The Plan incorporates comments and feedback from a wide range of stakeholderswho attended a number of workshops at national and district levels. As a continuation, and an important element of its transformation process, MAF will introduce an annual planning and priority setting process across all Directorates to facilitate effective planning, accountability, communication, inter departmental collaboration, and learning from past experience. 2 Major Programs MAF has developed five Medium Term Operation Plan (MTOP)Programs to address five Strategic Objectives. Each Program has a number of Sub-Programs, components and projects. 2.1 Program 1: Sustainable increase in production and productivity Agriculture in Timor-Leste is typified by low productivity. Both intensive (increased productivity) and extensive (area/number expansion) approaches are needed to increase production and create the necessary surpluses for economic take-off. Increased efficiency will largely depend on the application of improved technologies and more efficient use of water, especially on the irrigated land. Program 1 has 78 projects and six Sub-Programs: (i) agricultural research; (ii) decentralized extension services; (iii) improved pest control; (iv) water resources for agricultural production; (v) mechanization; and (vi) accelerated production of selected enterprises based on specialization and agro-zoning. The overall investment required from the public sector to support the planned activities under Program 1 for the 2014-2018 period is approximately $203 million. More than 50% of the investment has been allocated to the accelerated production of food and horticultural crops. Ten percent of the total investment has been allocated to extension services and industrial crops, and 5% to livestock production. Table 1: Budget for Program 1 SO SP Projects 2014 2015 2016 2017 2018 5 years % budget 1 1.1 - Research 19 2,007 2,128 4,561 6,225 5,759 20,681 10% 1 1.2 - Extension 9 3,336 3,126 3,764 3,946 4,027 18,198 9% 1 1.4 - Water 9 2,785 3,043 3,320 3,055 3,354 15,557 8% 1 1.6.1 - Food crops 14 13,005 16,911 21,447 25,764 30,404 107,530 53% 1 1.6.2 - Indust. Crops 6 3,800 3,700 3,700 3,700 3,700 18,600 9% 1 1.6.3 - Fisheries 6 1,103 2,099 983 892 588 5,665 3% 1 1.6.4 - Livestock 9 1,602 1,646 1,793 1,956 2,145 9,142 4% 1 1.6.5 - Forestry 6 1,635 1,587 1,574 1,625 1,500 7,921 4% TOTAL 78 29,272 34,240 41,141 47,163 51,477 203,294 100% Ministry of Agriculture and Figure 1: Percent budget allocation for Program 1 2.2 Program 2: Improved market access and value addition The aim of this Program is to enhance market access and profitability through sustained competitiveness and value addition, and effective and efficient service delivery agricultural sector. If small producers are to be empowered to play a constructive role in the development and transformation of the agricultural sector, they require access to in support services. Existing support services need the needs of all. Program 2 has 21 projects and five Sub quality control; (ii) promotion of diversification and value addition; infrastructure; (iv) marketing and sector engagement. The overall investment required planned activities under this P Overall, in terms of Program 2, very little has been investment to develop essential develop collective marketing, Table 2: Budget for Program 2 SO SP Projects 2 2.1 - Safety/quality 2 2.3 - Diversify/ value add 2 2.4 - Rural infra 2 2.5 - Marketing/ groups 2 2.6 - Private sector TOTAL Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014 8 : Percent budget allocation for Program 1 Program 2: Improved market access and value addition rogram is to enhance market access and profitability through sustained ness and value addition, and effective and efficient service delivery agricultural sector. If small producers are to be empowered to play a constructive role in the development and transformation of the agricultural sector, they require access to in support services. Existing support services need urgent improvement and scaling 2 has 21 projects and five Sub-Programs: (i) safety standards and romotion of diversification and value addition; arketing and support to farmers’ groups; and (v) promotion of private . The overall investment required from the public sector to support the activities under this Program for the 2014-2018 period is around Overall, in terms of Program 2, very little has been completed and/or is planned in form of to develop essential rural market infrastructure, to reduce post and encourage and support private sector investment. : Budget for Program 2 Projects 2014 2015 2016 2017 2018 7 440 400 360 360 360 11 369 521 635 662 748 1 - - - 1,740 2,500 1 2,075 2,075 1,000 1,000 500 1 - - - - 21 2,884 2,996 1,995 3,762 4,108 Plan (2014-2018) rogram is to enhance market access and profitability through sustained ness and value addition, and effective and efficient service delivery to the agricultural sector. If small producers are to be empowered to play a constructive role in the development and transformation of the agricultural sector, they require access to inputs and improvement and scaling-up to meet afety standards and romotion of diversification and value addition; (iii) rural market romotion of private from the public sector to support the 2018 period is around $16 million. and/or is planned in form of post-harvest losses, private sector investment. 5 years % Budget 360 1,920 12% 748 2,935 19% 2,500 4,240 27% 500 6,650 42% 0% 4,108 15,745 100% Ministry of Agriculture and Figure 2: Percent budget allocation for Program 2 2.3 Program 3: Improved enabling This strategic objective deals with infrastructure required to facilitate the agricultural transformation process. Some of the key agricultural policy areas to be analyzed include import sub irrigation and water allocation; legislation and regulations on veterinary public health; quarantine and animal diseases; land tenure support to production activities; inputs subsidies; and marketing arrangements. This Program framework development and capacity for policy analysis; partnerships; (iii) agricultural statistics warning systems. The overall investment planned activities under this P around $11million. In addition to establishing policy frameworks and across the sector, Program 3 has a agricultural statisticsand climate information management. Table 3: Budget for Program 3 SO SP Projects 3 3.1 - Policy f/work 1 3 3.2 - Prog. coord. 1 3 3.3 - Statistics 3 3 3.4 - Climate 4 3 3.5 - Early warning 2 TOTAL 11 Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014 9 : Percent budget allocation for Program 2 Program 3: Improved enabling environment This strategic objective deals with the policies, institutions, legislation and necessary to facilitate the agricultural transformation process. Some of the key agricultural policy areas to be analyzed include import substitution; export promotion; irrigation and water allocation; legislation and regulations on veterinary public health; quarantine and animal diseases; land tenure support to production activities; inputs subsidies; d marketing arrangements. This Program has 11 projects and five Sub-Programs: and capacity for policy analysis; (ii) coordination of programs and (iii) agricultural statistics; (iv) climate information and analysis; he overall investment required from the public sector to support the planned activities under this Program for the 2014-2018 period (excluding infrastructure) million. In addition to establishing policy frameworks and improved c Program 3 has a strong focus on building and maintain agricultural statisticsand climate information systems to provide data for planning and : Budget for Program 3 2014 2015 2016 2017 2018 100 100 50 50 50 125 150 150 100 100 704 1,751 182 121 199 1,130 1,050 1,123 1,200 1,294 623 232 204 164 169 2,682 3,283 1,709 1,635 1,812 Plan (2014-2018) policies, institutions, legislation and necessary to facilitate the agricultural transformation process. Some of the key stitution; export promotion; irrigation and water allocation; legislation and regulations on veterinary public health; quarantine and animal diseases; land tenure support to production activities; inputs subsidies; Programs: (i) policy oordination of programs and limate information and analysis; and (v) early from the public sector to support the (excluding infrastructure) is improved coordination and maintaining functional to provide data for planning and 5 years % budget 350 3% 625 6% 2,957 27% 5,797 52% 1,392 13% 11,121 100% Ministry of Agriculture and Figure 3: Percent budget allocation for Program 3 2.4 Program 4: Organizational d The aim of this Program is to transform MAF and client-oriented, impact-driven and accountable o complete its reorganization under the V consolidation of certain functions such as research, extension and training; building analytical capacity within MAF to facilitate effective decision making; and creation of a Ministerial Agriculture Advisory Council to issues. This program has 17 projects and four Sub organizational structure and delivery modalities; strategy; and (iv) support to develop complementary strategies (e.g. communications, resource mobilization, the public sector to support the period is around $18 million. Developing a set of key strategies such as a capacity strengthening policy, monitoring and evaluation will allow identification of the related capacity constraints. Table 4: Budget for Program 4 SO SP Projects 4 4.1 - Org'n & function 4 4.2 - Capacity 4 4.3 - M&E 4 4.4 - Compl. strategies TOTAL Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014 10 : Percent budget allocation for Program 3 Program 4: Organizational development of MAF rogram is to transform MAF and its related agencies into en and accountable organizations. As a first step, the Ministry complete its reorganization under the Vth Constitutional Government. This task includes the consolidation of certain functions such as research, extension and training; building analytical F to facilitate effective decision making; and creation of a Ministerial Agriculture Advisory Council to advisethe Minister on thematic and cross issues. This program has 17 projects and four Sub-Programs:(i)r tructure and delivery modalities; (ii) MAF capacity strengthening; upport to develop complementary strategies (e.g. , resource mobilization, and gender). The overall investment public sector to support the planned activities under this Program for the 2014 million. Developing a set of key strategies such as a capacity monitoring and evaluation strategy and other complementary strate the detailed investment needed to support MAF in addressing its : Budget for Program 4 Projects 2014 2015 2016 2017 2018 3 1,464 1,076 846 796 746 8 1,502 1,651 2,180 2,464 2,535 1 280 250 275 300 330 5 300 375 225 200 200 17 3,546 3,352 3,526 3,760 3,811 Plan (2014-2018) into modern, efficient, . As a first step, the Ministry will Constitutional Government. This task includes the consolidation of certain functions such as research, extension and training; building analytical F to facilitate effective decision making; and creation of a Ministerial cross-sectoral policy (i)review of MAF’s MAF capacity strengthening; (iii) M&E upport to develop complementary strategies (e.g. human resources, . The overall investment required from rogram for the 2014-2018 million. Developing a set of key strategies such as a capacity strategy and other complementary strategies detailed investment needed to support MAF in addressing its 5 years % Budget 746 4,927 27% 2,535 10,332 57% 330 1,435 8% 200 1,300 7% 3,811 17,994 100% Ministry of Agriculture and Figure 4: Percent budget allocation for Progr 2.5 Program 5: Natural resources conservation and m Managing the connections between environment sustainability is an integral has seven projects and four Sub diversity; (iii) sustainable and environmentally maintaining national and cultural heritage sector to support the planned activities under this P $25 million. The investment areas include integrated crop practices; conservation and sustainable management of aquatic and marine conservation of biodiversity in forest and coastal areas. Promoting local communities as stewards of their natural environment thatcompensates them for refraining from unsustainable or damaging a Table 5: Budget for Program 5 SO SP Projects 5 5.1 - NR manag't 3 5 5.2 - Biodiversity 1 5 5.3 - Sustainability 2 5 5.4 - Heritage 1 TOTAL 7 Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014 11 : Percent budget allocation for Program 4 ogram 5: Natural resources conservation and management s between agriculture, natural resources conservation and sustainability is an integral part of agriculture sector development. This program ts and four Sub-Programs: (i) natural resources management; (iii) sustainable and environmentally-friendly agricultural ational and cultural heritage. The overall investment required f planned activities under this Program for the 2014-2018 period is around million. The investment areas include integrated crop-livestock-fisheries management practices; conservation and sustainable management of aquatic and marine conservation of biodiversity in forest and coastal areas. Promoting local communities as stewards of their natural environment is desirable, but it also requires compensates them for refraining from unsustainable or damaging actions. : Budget for Program 5 Projects 2014 2015 2016 2017 2018 3 2,950 3,222 3,524 3,865 4,239 1 135 135 149 164 180 2 456 509 599 712 822 1 359 378 344 378 416 7 3,900 4,244 4,616 5,119 5,657 Plan (2014-2018) anagement agriculture, natural resources conservation and development. This program atural resources management; (ii) bio agricultural practices; and(iv) required from the public 2018 period is around fisheries management practices; conservation and sustainable management of aquatic and marine resources; and conservation of biodiversity in forest and coastal areas. Promoting local communities as also requires a program ctions. 5 years % budget 4,239 17,800 76% 180 763 3% 822 3,098 13% 416 1,875 8% 5,657 23,536 100% Ministry of Agriculture and Figure 5: Percent budget allocation for Program 5 3 Budget Situation 3.1 Budget required for MTIP The total budget required over the five $272 million will be needed to implement all projects listed by the National Directorates. Of this about 75% or $203 million is needed for Program 1(production and productivity). The remaining budget requirement (about $69 million) is spread fairly evenly over the other four Programs. Table 6: MTIP budget SO Projects 2014 1 78 29,272 34,240 2 21 2,884 2,996 3 11 2,682 3,283 4 17 3,546 3,352 5 7 3,900 4,244 TOTAL 134 42,285 48,114 Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014 12 : Percent budget allocation for Program 5 Budget required for MTIP The total budget required over the five-year period of the MTIP is shown in $272 million will be needed to implement all projects listed by the National Directorates. Of this about 75% or $203 million is needed for Program 1(production and productivity). The emaining budget requirement (about $69 million) is spread fairly evenly over the other four 2015 2016 2017 2018 Total 34,240 41,141 47,163 51,477 203,294 2,996 1,995 3,762 4,108 15,745 3,283 1,709 1,635 1,812 11,121 3,352 3,526 3,760 3,811 17,994 4,244 4,616 5,119 5,657 23,536 48,114 52,987 61,439 66,865 271,690 Plan (2014-2018) n in Table 6. About $272 million will be needed to implement all projects listed by the National Directorates. Of this about 75% or $203 million is needed for Program 1(production and productivity). The emaining budget requirement (about $69 million) is spread fairly evenly over the other four % 75% 6% 4% 7% 9% 100% Ministry of Agriculture and Figure 6: MTIP budget required by percentage 3.2 Budget required by Directorate The total budget requirements by National Directorate The DNAH (food crops and horticulture) will require about 40% of the total budget over the five-year period ($112 million). The next largest required investment 13% ($36 million), which is followed by NDPIAC (plant industry and agribusiness) ($28 million). Table 7: Total MTIP investment by Directorate Directorate 2014 2015 DNADCA 1,823 2,112 DNAF 300 300 DNAH 13,005 16,911 DNF 6,253 6,548 DNFA 1,427 850 DNIGUA 3,341 3,649 DNPA 1,233 2,237 DNPIAC 6,151 6,194 DNPP 3,730 4,467 DNPSE 2,267 2,492 DNPV 1,730 1,767 DNQBS 1,025 588 TOTAL 42,285 48,114 Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014 13 : MTIP budget required by percentage Budget required by Directorate ments by National Directorates are shown in Table The DNAH (food crops and horticulture) will require about 40% of the total budget over the year period ($112 million). The next largest required investment is for DNF (forestry) followed by NDPIAC (plant industry and agribusiness) P investment by Directorate 2015 2016 2017 2018 Total 2,112 2,712 2,712 2,712 12,071 300 300 300 300 1,500 16,911 21,447 27,504 32,904 111,770 6,548 6,943 7,652 8,218 35,614 850 962 1,087 1,197 5,522 3,649 3,941 3,715 4,084 18,730 2,237 1,133 1,151 832 6,586 6,194 5,228 5,249 4,829 27,651 4,467 2,645 2,581 2,482 15,904 2,492 5,144 6,848 6,332 23,084 1,767 2,030 2,180 2,515 10,222 588 503 460 460 3,036 48,114 52,987 61,439 66,865 271,690 Plan (2014-2018) Table 7 and Figure 7. The DNAH (food crops and horticulture) will require about 40% of the total budget over the for DNF (forestry) at followed by NDPIAC (plant industry and agribusiness) at 10% % 12,071 4 1,500 1 111,770 41 35,614 13 5,522 2 18,730 7 6,586 2 27,651 10 15,904 6 23,084 8 10,222 4 3,036 1 271,690 100 Ministry of Agriculture and Figure 7: Percent MTIP investment by Directorate 3.3 MTIP budget gap The current funding scenario operations budget of about $13 million framework. The annual budget deficit was estimated budget and Development Partners the MTIP. The estimated budget deficit to implement the and this figure increases continuously over 2014-2018 the total budget deficit is around MTIP is that at present MAF’s the objectives and targets of the TLSDP and the MAFSP MTIP, and specifically the Sub catalyze and mobilize the funding requi Table 8: MTIP budget gap Item ($'000) Total investment required Annual budget allocation to MAF (GoTL's Exp. F/work) Less: MAF salaries and overheads Equals: MAF's available operational budget Contribution by Development Partners and NGOs MAFs total operational budget Budget deficit Investment in infrastructure development Total deficit Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014 14 P investment by Directorate ng scenario (2013) related to the MTIPreveals that MAF 13 million per year from the Government’s national expenditure budget deficit was estimated by subtracting the available operational Development Partners’ commitment from the investment needed to implement budget deficit to implement the MTIP in 2014 is a ncreases continuously over the period 2015-2018 (seeTable deficit is around $147 million. Hence a major message at present MAF’s funding levels are well-short of the level required the TLSDP and the MAFSP. It is intended that by preparing the and specifically the Sub-Programs, projects, and costings, MAF funding required for successful implementation of the 2014 2015 2016 2017 $42,285 $48,114 $52,987 $61,439 Annual budget allocation to MAF (GoTL's Exp. F/work) $25,143 $26,149 $27,194 $28,282 $11,783 $11,159 $10,714 $10,162 Equals: MAF's available operational budget $13,360 $14,990 $16,480 $18,120 Contribution by Development Partners and NGOs $15,858 $13,239 $6,109 $2,760 $29,218 $28,229 $22,589 $20,880 $13,067 $19,885 $30,398 $40,559 Investment in infrastructure development $26,179 $31,682 $20,114 $5,430 $39,246 $51,567 $50,512 $45,989 Plan (2014-2018) hat MAF is allocated an national expenditure available operational nt needed to implement 2014 is about $13 million, Table 8). For the period a major message in this short of the level required to achieve intended that by preparing the costings, MAF will be able to red for successful implementation of the MTIP. 2017 2018 Total $61,439 $66,865 $271,690 $28,282 $31,110 $137,878 $10,162 $11,180 $54,998 $18,120 $19,930 $82,880 $2,760 $3,520 $41,486 $20,880 $23,450 $124,366 $40,559 $43,415 $147,324 $5,430 $6,457 $89,862 $45,989 $49,872 $237,186 Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014-2018) 15 4 Development Partner Commitments Development Partner commitments by National Directorate are shown inTable 9 and a summary list of their current projects and programs is shown in Table 10. The estimated Development Partners’ contribution to MAF in financial year 2014 is about $15.9 million. A significant proportion of this funding is allocated to six key areas: (i) support for extension services; (ii) construction of irrigation systems; (iii) support to community-based natural resources management; (iv) evaluation of improved crop varieties and seed/seedling production and distribution; (v) linking small holders to markets; and (vi) promoting on-farm storage of cereals. This funding support is expected to decline to $13.3 million in 2015 and to$6.1 million in 2016. When estimating investment needs for the MTIP, funding was allocated for MAF to continue some of the currently development partner-funded projects. It is noteworthy that the currently planned Development Partners’ commitments to MAF will decline significantly over the five year period of the MTIP, from nearly $16 million in 2014 to only $3.5 million in 2018. This trend was factored into the calculation of the budget gap but now that MAF now has a Strategic Plan and an MTOP it is an opportune time to initiate discussions with Development Partners to ensure that future collaborative programs and projects are in line with MAF’s strategic objectives and priorities. The Minister of MAF has commenced this process by initiating a regular dialogue with Development Partners. The first meeting was on 30thOctober 2012 during which the Minister presented the MAFSP. A second meeting was held on 2nd May 2013 to present a draft of the MTOP. Development Partners’ comments and suggestions were incorporated in the final version of the MTOP and the associated MTIP. There is renewed interest on the part of some Development Partners to support Timor-Leste’s agricultural sector. For example, the World Bank has included the sector as one of its core pillars in its new five-year County Program Strategy. To support this improved scenario, MAF is aggressively searching for alternative sources of additional funding, such as the Global Environment Facility (GEF), the Institutional Development Fund (IDF) and the Trust Fund for Statistical Capacity Building (TFSCB). As discussed in the description of Program 1, MAF is conceptualizing a project (SAPIP) which would support the reform of the current subsidies strategy. Additional commitmentsmay also encourage increased Government support and reduce the MTIP’s budget deficit. Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014-2018) 16 Table 9: Development Partners’ commitments 5 The Way Forward Translating the MTIPinto action requires a series of reviews and continuous learning and adaptation towards optimizing MAF’s operations. It also requires continuous dialogue between among key players to facilitate implementation processes and structures to maximize efficiency and benefits. TheMTIP aims to put in place the key ingredients needed to facilitate and accelerate MAF’s development. However, it is recognized that, as a ‘living document’, there will be a need for a major revision of the MTIP by 2015. By demonstrating its capacity to prepare medium-term plans and to implement them effectively (including demonstrating tangible results) MAF can show its commitment to prudent budget management, thereby making a case for a larger share of the national budget. SO SP Directorate 2014 2015 2016 2017 2018 Total Remarks 1 1.1 DNPSE 433 433 - - - 866 1 1.2 DNADCA 4,138 3,698 90 - - 7,926 1 1.4 DNIGUA 1,163 25 1,188 1 1.6.2 DNPIAC 1,275 1,000 1,000 3,275 1 1.6.3 DNPA 1,020 1,020 1,020 1,020 1,020 5,100 NZ AID 1 1.6.5 DNF 500 500 500 1,500 2 2.2 DNPSE 1,311 1,311 2,622 SOL 2 2.4 DNPIAC 96 - - - - 96 CRS 2 2.4 DNAH 1,398 1,478 2,070 1,740 2,500 9,186 IFAD 2 2.5 DNPIAC 2,075 2,075 4,150 3 3.4 DNPP 413 - - - - 413 AGROMET 3 3.5 DNPP 914 64 - - - 978 NIEWS 5 5.1 DNF 1,122 1,635 1,429 - - 4,186 TOTAL 15,858 13,239 6,109 2,760 3,520 41,486 Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014-2018) 17 Table 10: Summary of Development Partners’ current projects and programs No. Organization Brief Description of Main Activities 1 ADB Strengthening Coastal and Marine Resources 2 AusAID Seeds of Life Phase III 3 Camoes IP – Portuguese Aid Rural Development – assisting with RDP IV 4 CARE International MAKA’AS (Mudansa Klimatika no Ambiente Seguro) 5 CRS 1. Development of candlenut enterprises 2. Increasing yields and improving storage 6 European Union Support to Rural Development 7 FAO 1. Community Mobilization for Poverty Reduction and Social Inclusion in Service Delivery 2. Post-Crisis Rehabilitation of Food Security and Livelihoods of the Most Vulnerable Population in the District of Baucau 3. Bio-Security Strengthening FAO – Fisheries Regional Fisheries Livelihoods FAO Food Security – NIEWS Project Establishing a Sustainable National Information and Early Warning System (NIEWS) on Food Security 8 GIZ 1. Innovative approaches to food insecurity in Timor-Leste 2. Timor-Leste Domestic Dairy Industry 9 GIZ (RDP IV) 1. Strengthening Agricultural Extension – Implemented by GIZ 2. Supportfor Rural Youth Employment 10 HIVOS Building Food Security and Resilience among Rural Households 11 IFAD Household Maize Storage 12 JICA 1. Agriculture Master Plan and Irrigation Master Plan 2. Strengthening MAF capacity 14 KOICA Strengthening NGO (NGO Volunteering Programme) 15 Mercy Corps SECURE (Improved food security and increased productivity of major food crops) 17 NZAID – New Zealand Consolidating Cooperative Agribusiness recovery 18 OXFAM 1. Strengthen capacity of communities to improve food security, environment, health and economic Ministry of Agriculture and Fisheries: Medium Term Investment Plan (2014-2018) 18 sustainability – series of projects 2. Rural develoment and sustainable natural resources management 3. Community Development project 4. Maubara Subdistrict community development 5. Strengthen capacity of communities to improve food security and health. 6. Rural community development project 19 USAID 1. Mud Crab and Fish Cultivation 2. The Development of Communities through Intensive Agriculture 3. Support for CCT (coffee development) 20 World Bank Timor-Leste: Responding to Low Food Production and High Prices 21 World Vision 1. Haburas Aileu Project 2. Increased community and environmental resilienceto climatechange effects 3. LIFE (Consolidation of agricultural market economy) 4. Bobonaro Food Security and Nutrition Project 5. Baucau Food Security and Nutrition project