The Project Development Objective is to enhance climate resilience of targeted farmers.

The project would intervene through four project components:

Component 1 – Institutional Strengthening (US$ 6 million). This component consists of two subcomponents.
Subcomponent 1.1 would focus on strengthening the capacity of relevant government & academic institutions. These
include the different departments of the Ministry of Food and Agriculture, the National Meteorological Service (NMS),
and the University of Belize. Subcomponent 1.2 would focus on strengthening the capacity of participating financial
institutions, farmers and farmers’ organizations such as (i) Development Finance Corporation (DFC), participating
commercial banks, and credit unions to enhance their knowledge on new CSA technologies and practices, as well as
their capacities for the selection and appraisal of eligible climate smart subproject proposals; and (ii) the Belize Credit
Union League (BCUL), which is an advocacy and training body for credit unions, to enhance their knowledge on the
new technologies and approaches promoted by the project, as well as in lending advisory support to the credit
unions. ; and (iii) strengthen the organizational, operational and business capacities inter alia of farmer organizations
(FO) supported via the project; (ii) provide technical assistance and extension services to share know-how on best fit
technologies and practices with individual farmers benefitting from the Climate Smart Incentive Facility (CSIF).

Component 2: Promotion of CSA Approaches and Investments (US$16 million)
This component consists of two subcomponents. Subcomponent 2.1 is focused on promoting on-farm CSA
technologies and practices at the individual level (on-farm level), would promote the uptake of best fit CSA
technologies and practices, with the overarching aim of increasing resilience to climate shocks and weather events,
and stabilizing/improving productivity while simultaneously lowering production costs, contributing to increases in
profitability. Most of the investments under this subcomponent would include individual small-scale investments and
technologies linked with water in agriculture (such as individual water harvesting, modern on-farm irrigation and
drainage technologies, etc.), as well as CSA practices (such as drought-resistant seeds, change of production system
toward more resilient practices such as agroforestry, improved soil management, etc.). Subcomponent 2.2 is focused
on collective Climate Smart Agriculture (CSA) investments. It would finance complementary infrastructure of
collective use that will increase the impacts of the subcomponent relating to on-farm CSA investments and/or
eliminate constraints: (i) tertiary rural and feeder roads and associated drainage investments; and (ii) pilot collective
small-scale water-harvesting assets including identification, feasibility studies, construction, technical assistance and
support to Operation and Maintenance (O&M).

Component 3 - Project Management, and Monitoring and Evaluation (US$ 3 million). This component would finance
all the activities falling under the responsibility of the Project Implementation Unit (PIU). The Ministry of Food and
Agriculture (MoFA) would create a full-fledged PIU under its anchorage. However, in order to speed up the
implementation progress in the initial stage of the project, it has been envisaged by MoFA to use the services of the
Fiduciary Team (Procurement, Financial Management and Monitoring and Evaluation) of the Social Investment Fund
to provide hands-on support and training to the PIU during the first year of the project. Other options such as the
Protected Area Conservation Trust (PACT) and Inter-American Institute for Cooperation on Agriculture (IICA) were
also identified. This collaboration would be done through the signing of a Memorandum of Understanding (MoU)
between the MoFA and the Institution which will be chosen to support the project.
Component

4- Contingent Emergency Response Component (CERC) (US$0 million). A CERC will be established and
managed in accordance with the provisions of World Bank Policy and World Bank Directive on Investment Project
Financing. The CERC will be triggered only when the GoB has officially declared an emergency and a statement of the
facts is provided, justifying the request to activate the use of the emergency funding.

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