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CONFIDENTIAL
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Common Format for Project/Program Concept Note for the Use of Resources from the FIP
Competitive Set-Aside
1. Country/Region: Burkina Faso 2. CIF Project ID#:
3. Project/Program Title: Powering climate-smart rural development in Burkina Faso
4. Date of Endorsement of
the Investment Plan:
Endorsed (subject to improvements) in June 2011
5. Funding Request (in
million USD equivalent):
Grant: N/A Non-Grant (loan, equity, guarantee, etc.):
US$ 5 million
6. Implementing MDB(s): African Development Bank X Private sector arm
Public sector arm
7. Executing Agency:
8. MDB Focal Point and
Project/Program Task
Team Leader (TTL):
Headquarters- Focal Point:
Mafalda DUARTE
Chief Climate Change
Specialist, AfDB
TTL: tbd
I. Project/Program Description
1. The firm is expanding its climate-smart rural development project in Burkina Faso, Togo,
Benin, and Ivory Coast, using a model, scalable and widely replicable in sub-Saharan Africa
based on agro-forestry, agricultural transformation and biomass energy alternatives to wood fire.
Its integrated model helps shift its partner communities towards a “Green Economy” that reduces
pressure on natural forests, enhance forest carbon stocks, increases local population income and
resilience to climate change, while generating employment.
2. The firm has an integrated business model to address the energy need of farms and rural
communities. Its agricultural activities, which are mostly carried out on degraded lands, produce
energy and food crops in partnership with rural communities, which are processed in its facilities
for the market. Food crops such as Shea kernels are processed and sold to the industry or
exported and energy crops are processed into fuel (Jatropha oil and biodiesel) mostly for local
consumption (the firm’s farm and agro processing units, as well as rural communities energy
needs). Concurrently, the firm develops with its partners and makes available the technologies to
utilize the fuel, such as the stoves, hybrid generators and fuel pumps. The firm creates rural
processing centers such as for Shea to demonstrate climate smart rural development models and
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get its rural partners accustomed to the technologies and aware of the alternatives to address their
energy needs.
The firm project’s business model
3. In Burkina Faso, near Boni (South-West region), Dano (South-West region), Kantchari
(Eastern region) and Nobere (Center-South region), the firm has developed over the last 6 years,
in cooperation with local growers, associations and cooperatives, its first eco-development pole,
where it has already implemented the following activities for a total investment of around US$ 5
million:
- 7 nurseries established capable of producing 2,5 million seedlings per year;
- 1500 ha of intercropped jatropha plantations on degraded and deforested farm land;
- 1,5 million seedlings provided to 2000 growers in partners communities to protect their
farm land;
- More than 5000 farmers trained in agro-forestry techniques;
- A jatropha oil mill built capable of processing 20 tons of seeds per day into 12 tons of
jatropha oil;
- A briquetting plant with a capacity of producing 10 tons of briquettes per day;
- 4 shea processing centers employing 450 women directly and providing an output of
2000 tons of boiled- shelled -sun dried shea kernels, suitable for the specialty fat industry
yearly;
- A biodiesel pilot plant of 3 tons per day converting jatropha oil into biodiesel;
- In partnerhip with Netafim, a university in 7 regions of Burkina provides training on Drip
irrigation technology for the firm’s employees and out growers;
- The firm is providing permanent employment to 230 rural workers, 70 staff, and over
1000 seasonal workers through rural associations.
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The firm works with a network of partners:
- JOIL (Joint venture between Temasek Life Sciences Singapore, Toyota Toshiu Japan and
TATA Chemical of India) in the local testing and provision of high-yielding planting
materials such as jatropha hybrid seeds and environmentally friendly biodiesel
technology;
- NETAFIM inventor of the Drip irrigation, to bring water conservation technology in rural
areas supported by the University in 7 regions of Burkina Faso in partnership with
NETAFIM;
- Dreyer Foundation in the research and development of high efficiency stoves powered by
jatropha oil and briquettes (alternative renewable fuels);
- ATG in Germany to design and make available locally high-tech generators running on
jatropha oil;
- MG Group of China for the design and local distribution of hybrid irrigation pumps
powered by jatropha oil and solar panels;
- 2IE Engineering school for monitoring, laboratory measurement and, applied research,
data collection and validation.
4. Various rural communities in Burkina Faso have expressed interest in partnering with the
firm. This represents an estimated 9000 farmers for its jatropha intercropping program and 60
women associations for the 40 shea processing centers. seeks, under the Forest Investment
Program, funds for the development of its climate-smart rural development program for the
implementation of eco-development poles in Kamtchari, Boni and Nobere in Burkina Faso. The
funds will be directed toward the following activities:
1) Carbon sequestration through agro-forestry
a. Expansion of existing nurseries and creation of at least 4 new ones
a. Distribution of seedlings for 5 million Jatropha trees
b. Reforestation of 5 000 ha through the firm’s own plantations (2000 ha) and
outgrowers model (3000 ha)
2) Renewable energy production
a. Expansion of Jatropha oil mill for 30 additional tons of jatropha oil per day
b. Expansion of Briquettes plant for 48 additional tons of briquettes per day
3) Rural development and fuel substitution
a. Expansion of existing and creation and of 40 rural shea processing centers
running on jatropha oil (instead of wood energy)
b. Promotion of 30 000 briquettes stoves (substitution to wood energy)
c. Promotion of 3 000 jatropha oil stoves (substitution to wood energy : 0,2 liter
of oil = 1 Kg of wood energy)
d. Promotion of irrigation and power generators running on jatropha oil (instead
of traditional oil)
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4) Training, Research and development
a. Expansion of agro-forestry training and on-the-ground permanent support
b. Development and testing of high yielding planting materials and agro-forestry
industrial models for shea, moringa and jojoba trees
c. Improvement of stoves, hybrid generators/engines for power and irrigation
pumps
d. Measurement of above-ground, below-ground and soil carbon storage by
Jatropha plantations
5) Management, Monitoring, data collection
a. Expansion of the firm geographic information project management system
(locations, people, climate, soil, water, production, costs)
b. Data collection equipment, sensors and communication equipment
5. As part of other investment projects and depending on access to funding, the firm is also
planning to build:
- A biomass power plant to process biomass into electricity
- A biodiesel plant to process jatropha oil into biodiesel as part of another project
- A processing plant to process shea kernels into shea butter
II. Rationale
6. Rural poverty has been associated in Burkina Faso with low agricultural yield, poor soil
management, low agricultural transformation and the local communities’ heavy reliance on fire
wood (80% of the cooking fuel in Burkina Faso), as their main source of energy. In the context
of climate change and important demographic growth, this has led to an important level of
deforestation (estimated at around 1% per year), as well as forest and land degradation,
threatening communities’ livelihoods.
7. In the context of climate change worsening land degradation and desertification trends,
forest management and farming models need drastic improvement in productivity and
sustainability, not only to accommodate population increase but also to reduce current poverty
levels. While past efforts have focused on monocultures, seed quality and chemical fertilizers,
herbicides & pesticides, sustainable agricultural and forestry productivity in sub-Saharan Africa
requires substantial efforts in training, soil management and, especially, mechanization &
irrigation, which, in turn, need considerable energy.
8. The firm’s climate-smart rural development model enhances forest cover on (and around)
farmland, deforested and degraded land, and provides alternate fuel sources to firewood while
powering rural development through improved agricultural yields and products transformation.
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9. Leading scientists and researchers from local universities and NGOs have conducted
conclusive research on agro-forestry models, with the use of drought resistant trees, such as
jatropha. Jatropha is the chosen key crop, as it can provide multiple benefits to the environment
and local communities, consistent with FIP investment plan which associates climate change
mitigation, adaptation and poverty reduction:
- Carbon sequestration: The large number of trees planted represent a significant effort
towards reducing carbon in the atmosphere, through carbon sequestration in trees and
soils.
- Reducing pressure on natural forests: Jatropha provides an alternative and sustainable
fuel source, both via the oil and the waste biomass processed into briquettes, to wood
energy which represents 80% of the cooking fuel in Burkina. These alternatives energy
sources will be used through efficient stoves and by the shea processing centers (owned
by the firm, cooperatives and rural contract growers). By restoring degraded land through
an agro-forestry model, it also reduces forest conversion to agricultural land.
- Soil and water conservation: Jatropha also restores and binds soil better, which then
enables better utilization of rainfall and water flows, thus addressing effectively land
degradation and desertification processes. By solidifying riverbanks (as seen in Togo and
Dano in Burkina Faso), it allows other tree species to take root and keep silt down.
Increase agricultural yields through (i) an agro-forestry model that is more resilient to
climate change and can be also implemented on degraded lands, (ii) access to efficient
irrigation systems. In addition, the restoration of degraded land will support an increase
of agricultural production.
- Traditional fuel (diesel and petrol) substitution: Jatropha allows also traditional fuel
substitution, securing communities access to energy through lower and stable prices, with
other beneficial side effects being import substitution allowing foreign exchange savings
for the country. The firm’s produced biofuels will power the irrigation, farming
machines, and hybrid generators it is using and promoting.
- Rural development: Energy access is key to facilitate agricultural transformation, food
logistics and finally generation of employment on its industrial areas (jatropha oil
processing and briquetting/biomass plants, shea processing centers).
10. This model has been successfully “tested” for 6 years in Burkina Faso, and proves to
materially uplift lives in the local rural areas while adding great value in the national context.
The firm is now seeking the funds to continue to expand its efforts on adjacent areas in three of
the four regions of intervention of the FIP (Center-South, Center-West and Eastern regions).
While the firm has relied on its own funds until now, its development is currently limited by its
lack of access to funding, especially long term finance that is required for agroforestry
plantations. Indeed the banks in the country are neither familiar with agroforestry businesses nor
willing to lend on a longer term than 3 years. At the international level, the orientation of the
firm’s business model towards rural development is perceived as too complex and risky,
especially considering that the business model is still being piloted. The long term FIP money,
which is required for the development of the plantations, would make possible for the firm’s
investors and partners, as well as local banks to invest in the project.
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III. Consistency with Investment Criteria
Climate Change Mitigation
11. The project is likely to generate 2 360 000 tons of CO2e over 40 years through carbon
sequestration and GHG emissions reductions via 3 types of activities:
- Afforestation / Reforestation : plantation of 5 million trees, resulting in 125 000 tons of
CO2 over 40 years (one tree = 25 kg of CO2)
- Reduced emissions from forest degradation through the use of alternative sources of
energy to firewood: these 5 million trees will produce 5 million liters of jatropha oil per
year and some 10 000 tons of briquettes. 100 % of the briquettes will substitute wood as
well as 50 % of the Jatropha oil, resulting in the substitution of 22 500 tons of firewood
per year (10,000 tons through the briquettes and 12,500 tons through the jatropha oil),
whose collection is usually non sustainable. This represents 900 000 tons of CO2 over 40
years (1 ton of firewood = 1 ton of CO2).
- Diesel oil energy substitution: The remaining jatropha oil (whether or not transformed
into biodiesel) (50%) will be used for diesel oil substitution in irrigation systems (20%),
agriculture machines (20%), and power generation (10%) in adapted engine. These
12,500 tons of jatropha oil per year will result in the substitution of the same volume of
diesel oil representing some 1 335 000 (1 liter of biodiesel oil = 2,67 tons of CO2).
Demonstration Potential At Scale
12. The firm is willing to scale-up this project in most of Burkina Faso’s territory (except the
northern region). It is also piloting similar projects in Burkina, Benin, Togo and Ivory Coast and
intends to expand to Ghana, Mali, Niger and Chad, where this model could be replicated. In
addition, the research to be carried out on shea, jojoba and moringa trees will also be used by the
firm in similar projects in the near future, extending the scale of this project’s impact.
Cost Effectiveness
13. With 2 360 000 tons of CO2e likely to be generated by the project for a total investment
of US$ 14.7 million, the cost per ton of CO2 is estimated to be US$ 6,2.
Implementation Potential
14. Most of the project’s activities have been already implemented on a comparable scale and
its expansion is not seen as difficult or challenging.
15. As mentioned, the firm has been involved in planting jatropha for 6 years in Burkina
Faso, and has successfully proven its climate-smart rural development model from producing
large numbers of seedlings to developing intercrop plantations and growers programs to
processing the seeds into jatropha oil and briquettes. It has significant capacities installed:
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- Operating 7 Nurseries in different regions in Burkina Faso having produced over 5
million seedlings to date.
- Operating 20 tons per day jatropha oil mill and 10 tons per day briquette plant in Boni,
Burkina Faso, site of its first cluster. These were purposely designed and built by Mr.
Jun Cruz, one of the firm’s shareholder and world-known designer of oilseed mills
worldwide. These were built to be expandable and thus these are easy to replicate and
expand upon, when more fuel (jatropha) is available from the plantations as well as from
contract grower farms.
- Professor Makido who heads the program, sits on The firm Board and is one of its
investor, is a world-renowned expert in agro-forestry and jatropha development. He
started his research on Jatropha in 1983 in the University of Ouagadougou where he
teaches. Many of the seedlings the firm have used in the past have come from his labs,
and his knowledge of the jatropha plant, diseases, propagation techniques, etc. are
simply irreplaceable. He also supervises the technical cooperation unit in charge of
training and growers technical support. 12 agronomists manage the nurseries, plantation
and provide permanent assistance to the growers.
16. The firm has already identified its areas for intercropped jatropha plantation in the new
eco-development poles, which will be mainly on degraded land. Thus, it does not expect
conflicts with communities which are welcoming the project and its benefits for them. Indeed,
the seedlings provided to growers will be mostly used as hedging, fencing and reforestation on
degraded lands, which is not expected to create conflict with agricultural uses but rather support
agricultural productivity.
17. Finally, state-of-the-art project management tools and practices will ensure effective
implementation of the project. The firm will conduct regular data collection to ensure trees are
producing vis-a-vis the expectations, and it will implement an information system to track certain
activities, costs versus plan, and versus budget. If “performance” at the end of the month, is
below expectations in specific activities such as planting, harvesting, fertilization, irrigation, soil
preparation, etc., or if production is below plan (i.e. height of plant, seeds per plant, kilos per
plant, per hectare, etc.), then the project can immediately put a plan in place to address the
issue/s. The firm will also track rainfall, sunlight, temperatures, etc. to see the effects vis-à-vis
the production. Use of proper information technology is key to this effort.
Integrating Sustainable Development(Co-benefits)
18. In addition to carbon sequestration and the maintenance of forest carbon stocks, the
projects will provide significant social and environmental co-benefits, in particular poverty
reduction and climate change adaptation, in line with the country’s FIP investment plan strategy:
- Employment creation: the project will allow the creation of 300 permanent and 1000
seasonal jobs in The firm’s nurseries, plantations and plants, generating a US$ 1 000
annual income per person.
- Income generation: the project aims at contracting 3 000 outgrowers for planting jatropha
and, through the 40 Shea centers, it will provide revenues to 10 000 women, each
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collecting and processing 2 tons of Shea per year. Both will obtain additional revenue of
US$ 300 per year.
- Gender: some 10 520 women will benefit particularly from works in nurseries and shea
processing centers.
- Food security through increase high-yielded and more climate-resilient agro-forestry schemes. - Energy security through promoting communities’ access to energy at lower and stable
prices. - Better access to water by local communities from the wells and filtration systems at the
shea processing centers.
- Climate change adaptation through the restoration of degraded lands, as well as soil and
water improved conservation and management.
Safeguards
19. Building on The firm’s many years of experience of growing jatropha, and having the
local communities partner with its efforts will help ensuring high level of safeguards for this
project. The firm has done proper social and environmental impact studies on their farms and
will do the same for this project.
20. The result of these studies will be integrated in the final selection of plantation areas to
avoid land conflicts and forested areas. The geographical management system will ensure that
implementation is conducted only in selected areas.
21. The firm plantations will be intercropped with vegetable and staple crops to strengthen
food security for the local population. Growers will mostly use jatropha as hedging, fencing and
reforestation of degraded land, thus not competing with agricultural uses.
22. The irrigation system selected is the most efficient in terms of water utilization, reducing
water use by 90%, and the firm will conduct proper geodetic water surveys to ensure the project
will not affect the sustainability of water resources.
23. The firm has also experience in ensuring physical security of all of its farms, putting in
place proper watchmen, usually using community leaders whose communities would benefit
from the investments done. It uses a very participatory system for safeguarding its farms,
involving stakeholders from the youth, women’s groups, and associations, tribal leaders, who all
inform the firm of any issues, concerns, and suggestions.
24. The shea and nurseries components will ensure women will get additional and exclusive
benefits from participating to the project.
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IV. Type of Private Sector Engagement
25. This project will be a solely private sector project, implemented in close collaboration
with local growers, associations and cooperatives.
V. Innovation
26. The project is innovative in terms of technology:
- Planting material: with the firm’s partners JOIL (of Singapore), it will be using new
hybrid, high-productivity jatropha seeds. This is seen to materially increase expected
growth of trees to seed producing stage quickly (within a year) and with large production
of seeds expected, and with higher oil content, than locally sourced seeds. It should be
noted that present plantations the firm farms uses lab-produced seeds already higher in
production than local sourced seeds. JOIL’s seeds are expected to provide even greater
productivity.
- Water management: through the firm’s partners, Netafim (of Israel), the project will have
access to modern irrigation and fertigation (fertilization through irrigation) technologies
using new equipment developed by those partners. The same technologies will be made
available to the local contract-growing partners, who may grow approximately 60% of
trees planted. The firm is working on a model to make credit available for growers to buy
these irrigation kits. In this model, the public “Fund for water and rural equipment”
(FEER in French), will buy these kits from Netafim and sell them at a subsidized price to
the growers who will have some 3 to 5 years to repay them, the loans repayment being
guaranteed by off take agreements.
- Geographic information management system: the project is innovative in terms of
information technologies used that will allow a close monitoring and evaluation of the
project and geographic positioning of the project areas. The data gathering, information
studying, and “operations reviews” tools that will be used emanate from such tracking
systems developed for more sensitive farm crops in the Philippines. They allow monthly
reviews of activity-based costing as well as a review of actual production parameters vs.
planned, and thus allow the project to respond to and amend its activities, sooner rather
than later.
- Renewable fuel solutions: the applications for rural communities such as fuel efficient
jatropha and briquettes stove which will be deployed, promoted and sold at the shea
processing center have required research and development. It is an innovative approach
in addressing energy demand in rural areas by allowing stakeholder to participate in
producing their fuel. The innovation of the project is also linked with the way the
briquettes and jatropha are packaged and marketed to final users. The project will use the
shea processing centers as distribution centers for these technologies and reusable
packaging (filling centers) for the fuel.
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- Smart Agriculture, Triple bottom line business model: the overall model of the firm is
innovative in that it is agro-forestry based, and allows a strong focus on a triple bottom
line that can be summed up as “Food For People”, “Fuel For Food”, and “Fuel For
Forest”. A notable innovation in the project model is that it provides to rural communities
the financial means as well as the fuel and technology to shift to renewable and
sustainable energy practices for 40 years.
VI. Technology, Product, and/or Business Model
Technology
- Planting material: a partnership with JOIL allows the firm to access hybrid, high-
productivity jatropha seeds, produced by Temasek Life Sciences. These seeds bring a
jatropha tree to production in 12 months rather than 3 years, and provide 4 kilos of seeds
per tree after 2 years, moving to 6 kilos in year 3. These results are approximately 3
times more productive than locally sourced variants.
- Water management and irrigation: a partnership with Netafim, will allow the project
access new-technology, efficient irrigation systems for contract growers, and the firm’s
plantation which will allow efficient irrigation and fertigation (fertilization through
irrigation). With Netafim and through another project, the firm will also be developing 7
training centers (“Netafim University”) dedicated to permanent education centers for its
employees, growers and partners.
- Renewable fuel-efficient application: The firm is working with a network of partners to
develop the application for the fuel produced such as the jatropha stove and improvement
of the briquette stove efficiency. Suitable or adapted engines (water pumps and
generators) are also being designed, tested and improved.
- Geographic information management system: The firm’s own developed information
technology tracking systems allows better tracking of production and costs, and thus will
enable better control mechanisms and more effective responses to management and
operation of the farm and factories.
Products:
- Jatropha oil: produced using an exclusive process and tested in the factory lab to ensure it
meets or exceeds internal quality standards.
- Biodiesel: The firm is operating a biodiesel pilot plant which produces 3 tons per day
since October 2011. It expects to develop, through another project, a biodiesel plant in
2014 using Toyota Toshu technology, for further processing the jatropha oil produced.
Biodiesel can expand the market for jatropha oil.
- Briquettes: made from fully shredded, air tunnel dried and compacted jatropha cake with
a high calorific value due to the leftover jatropha oil.
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- (Briquettes and Jatropha oil) Stoves: co-engineered and using specially designed
refractory isolation material to optimize the release of heat even after the fuel has burned.
They are particularly suited for local cuisine requiring long and slow cooking.
- Hybrid generators: adapted to use of jatropha oil with the ability to combine solar panel
they provide a solution for rural electrification and decentralize power production at
stable costs.
- Water pumps: specially manufactured small and medium capacity pumps, made to run on
jatropha oil for long duration of time without overheating and maintaining a low
consumption and maintenance requirement.
- Shea kernels: prepared for the chocolate industry, they are extracted from shea fruits,
boiled to neutralize the fat hydrolyzing enzyme within 3 days, sundried on beds and
packed in 80 kg bags for the industry. This product exceeds the requirement on
traceability and meets future standards of sustainability (produced with renewable fuel
and not shea tree wood).
Business Model: see in project description
VII. Market
27. The firm primarily seeks to use its produced oil and biodiesel to fuel its own plantations,
shea processing centers, rural communities and sell the excess to the local, regional and
eventually international market. Burkina Faso imports all of its liquid fuel and does not currently
produce renewable solid fuel. The table below summarizes the products and their target markets.
Lines of Revenues Demand Channels to Markets
Jatropha Oil
The firm’s Farm, cooperatives
and grower’s farms for irrigation
pumps,
Shea processing centres, rural
enterprises and households for
power generators and cooking
stoves.
Indirect sales through rural
distributors agreements with largest
diesel distributors, rural
electrification cooperatives in
Burkina Faso guaranteed by the
Rural Electrification Fund (a public
mechanism that subsidizes 80% of
the cost of the fuel delivered to the
rural electrification cooperative
Briquettes
Rural Users (e.g. for cooking
stoves, shea centers, rural beer
makers to replace wood and
charcoal)
Off-grid users (typically large
agro plants,e.g. cotton mills of
Shea processing centers, rural
distributors
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VIII. Financial Plan (Indicative):
Source of Funding
(by type of instrument, equity, debt,
guarantee, grants, credit lines, etc.)
Amount (USD million
equivalent)
Percentage
(%)
Project developer 5 33%
MDBs
FIP 5 33%
Local banks 2 14%
Other investors 3 (JOIL, NETAFIM) 20%
Bilateral
Others
TOTAL 15 100%
Burkina and Mali)
Stoves (for briquettes
and jatropha oil)
Households and small businesses
The purchase of the biomass stove
is mandatory for the contract grower
and shea center associates upon
receiving their first revenues or by
instalment.This could also be seen
as a membership fee.
A commissioning scheme rewarding
the women selling stoves will be
implemented
Partnerships with ongoing programs
providing improved cooking stoves
Shea Kernels Chocolate industry Direct sale to sister company
(Burkina Golden Oil) and largest
Shea buyers in the world (AAK ,
IOI Loders and Croklaan, ISF)
which are existing customers
(annual demand per year : 30 000
tons in Burkina, 10 000 in Togo,
250 000 tons abroad).
Biodiesel (Future) The firm’s in-house logistics
needs
Existing fuel distributors
Off-grid users (typically large
standalone power generators,
e.g. mining, in remote areas)
Direct sales
Spot sales +
Long-term supply and servicing
agreements
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Project cost:
Carbon sequestration through Agro-Forestry
b. Expansion of existing nurseries and creation of at least 4
new ones
c. Distribution of seedlings for 5 million Jatropha trees
d. Reforestation of 5000 ha through The firm’s own
plantations (2 000 ha) and outgrowers model (3 000 ha)
USD 6.250.000
Renewable energy production
a. Expansion of jatropha oil mill for 30 additional tons of
jatropha oil per day
b. Expansion of briquettes plant for 48 additional tons of
briquettes per day
USD 3.450.000
Rural development and Fuel Substitution
a. Expansion of existing and creation and of 40 rural shea
processing centers running on jatropha oil (instead of wood
energy)
b. Promotion of 30 000 briquettes stoves (substitution to
wood energy)
c. Promotion of 3 000 jatropha oil stoves for small businesses
(substitution to wood energy : 0,2 liter of oil = 1 Kg of
wood energy)
d. Promotion of irrigation and power generators running on
Jatropha oil (instead of traditional oil)
USD 2.500.000
Training, Research and development
a. Expansion of agro-forestry training and on-the-ground
permanent support
b. Development and testing of high yielding planting material
and agro-forestry industrial models for shea, moringa and
jojoba trees
c. Improvement of stoves, hybrid generators for electricity
and irrigation pumps
d. Measurement of above-ground, below-ground and soil
carbon storage by jatropha plantations
USD 500.000
Management, vehicle support, general administration,
Monitoring, data collection
a. Expansion of the firm’s geographic information project
management system (locations, people, climate, soil, water,
production, costs)
b. Data collection equipment, sensors and communication
equipment
USD 2.000.000
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TOTAL USD 14.700.000
IX. Expected Results and Indicators
Indicators Results
Numbers of direct beneficiaries (men/ women):
out growers (families)/, Shea centers’ members /
permanent employees / seasonal employees
3 000 (3 000 / 0) /
10 000 (0 /10 000) /
300 (180 / 120)
/ 1000 (600 / 400)
Number of tree produced in nurseries and planted 5 million
Tons of CO2 captured by the project 2 360 000
Fuel produced 200 million liters
Briquettes produced 400 000 tons
Fuel substituted (cooking/ processing /agriculture) (200 000 tons/200 000 tons/200 000 tons)
Shea processing center installed 40
Shea nuts produced in centers (Year 5) 50 000 Tons
Jatropha stoves sold 3 000
Briquette stoves sold 30 000
FIPregion covered 3
Beneficiaries Income increase per year USD
(grower/Women/farm worker)
300/300/1000
Revenue from Briquettes /year (year 5) USD 1 260 000
Revenues from Jatropha oil /Year (year 5) USD 8 000 000
Revenues from Shea centers / Year (year 5)
USD 4 000 000
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X. Implementation Feasibility and Arrangements
XI. Potential Risks and Mitigation Measures:
Risk types Potential risks Mitigation measures
Land conflicts Social conflicts on the land
used for jatropha plantation
All land targeted is chosen after
thorough discussion with local
stakeholders including the local
government, and after proper
surveys
Deforestation for
jatropha plantation
Deforestation for planting
Jatropha
Plants will be provided only for
non-(recently) deforested land
and GIS will be used to monitor
plantations’ locations
Non acceptance of
the project by local
stakeholders
Rejection of the project by
local authorities, growers,
tribes, associations,
The risk from this source is not
considered likely given the firm’s
long successful history working
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employees, suppliers… with local indigenous
stakeholders, at many levels, via a
very participatory working
relationship.
In addition, the targeted
communities have expressed their
interest in the project.
Financial and
“Performance”
Risk
Financial returns being too low The firm has proved that its Agro-
Forestry model, does work. It is
scalable and commercial. There is
some financial risk in that
performance expected—kilos per
tree, oil extracted per seed, etc.,
may be less than expected. This is
not viewed as a great risk as the
partner supplying the seeds, JOIL,
has years of experience growing
and developing these in India and
Singapore, and results have been
good.
Pest and
Disease/Operations
Pest and disease affecting
production
The hybrid, high-productivity
seeds being used are more
resistant to pest and disease. As it
is, pests are largely not interested
in jatropha due to its acidic
nature.
Risk from any
labor issues —
wages, work
management
Appropriate HR not available The firm has largely been
successful at putting in place
good HR programs. Staff is paid
government-mandated wages in
areas where there is largely few
other jobs available.
Water shortage Water shortage affecting
production
Jatropha, shea, jojoba are trees
which do not require much water
to thrive and are not damaged
from one rainy season to another
without being irrigated. Proper
geodetic surveys are also
conducted before implementation.
