TOGO - Agro-Food Processing Project - Phase II (PTA II)

The Togo Agro-food Processing Project (PTA -TOGO) was approved by the Bank on 18 July 2018. One of its key activities was the construction of the Kara agro-industrial park. Implementation of the project was undermined by a number of COVID-19 related difficulties which led to its resizing, resulting in a second phase which is the subject of this report. PTA Phase II was identified following a number of adjustments made during the implementation of the initial project. These are: (i) withdrawal of the sum of UA 2.2 million from the project to finance the supply of inputs, under the programme to support RMCs in mitigating the negative effects of COVID-19, particularly on food security; (ii) the introduction of additional activities likely to reinforce the impact of the project (Planned Agricultural Development Zones-ZAAPs), for an unscheduled amount of UA 2.7 million; and (iii) generalized inflation, which led to higher construction costs for the project's transformative infrastructures (Agricultural Processing Centres (CTAs) and Agro-park), with gaps estimated at UA 3.8 million for CTAs and UA 15.2 million for the Agro-park, relative to the initial costs. Following the mid-term review of the project, the Government and the Bank agreed to formulate a Phase II of the project (PTA II) to bridge the gap and enable the agro-industrial park to be built, in keeping with the Special Agricultural Processing Zone (ZSTA) model promoted by the Bank. The project contributes to climate finance, with 8 million USD of the total approved amount dedicated to adaptation.