Malawi - National Rural Development Program (NRDP) Project

Document of The World Bank FOR OFFICIAL USE ONLY Reprt No. P-2377-MAI REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO TE REPUBLIC OF MAIAWI FOR THE NATIONAL RURAL DEVELOPMENT PROGRAMME (NRDP) - PHASE I November 6, 1978 ThIs_ doeeumsi b a rtictd dlbdem an my be aned by redplmt emdy in the pedrfmace of Ihr dictad. lb eutmi may se etewie be ds_clod widbe Wrl eak autmtion.  CURRENCY EQUIVALENTS Currency Unit = Malawi Kwacha (MK) - 100 Tambala (t) US$1.00 = MK 0.90 MK 1.00 = US$1.10 WEIGHTS AND MEASURES 1 lb. = 0.453 kg 1 sh. ton = 2,000 lb = 0.9072 m. ton 1 acre = 0.405 h2 1 sq. mile = 2.59 km 1 bag maize - 200 lb 1 bag fertilizer - 110 lb 1 mile = 1.6 km 1 gallon = 4.546 liters ABBREVIATIONS ADD - Agricultural Development Division ADF - African Development Fund ADMARC = Agricultural Development and Marketing Corporation CADO = Chief Agricultural Development Officer CIDA = Canadian International Development Agency CSC = Cold Storage Company DA = Development Area DDO = Divisional Development Officer EDF = European Development Fund EPA = Ecological Planning Area FRG = Federal Republic of Germany INDEBANK = Investment and Development Bank of Malawi KRDP II = Karonga Rural Development Project - Phase II LLDP = Lilongwe Land Developmo,it Programme LRDP = Lakeshore Rural Development Project MANR = Ministry of Agriculture and Natural Resources MWS - Ministry of Works and Supplies mu = Management Unit NRDP = National Rural Development Programme NSSA = National Sample Survey of Agriculture TA = Technical Assistant TO = Technical Officer SVADP = Shire Valley Agricultural Development Programme UK = United Kingdom UNDP = United Nations Development Programme USAID = United States Agency for International Development GOVERNMENT FISCAL YEAR April 1 to March 31  FOR OFFICIAL USE ONLY MALAWI NATIONAL RURAL DEVELOPMENT PROGRAMME (NRDP) - PHASE I CREDIT AND PROJECT SUMMARY Borrower: Republic of Malawi Beneficiary: Ministry of Agriculture and Natural Resources Amount: US$22.0 million Terms: Standard Project Description: The project would assist the Government to implement the first phase of Malawi's National Rural Development Programme. Over a five-year period, it aims to increase output of four major crops (maize, groundnuts, dark-fired and oriental tobacco and rice) and expand production of milk and meat through strength- ening the Ministry of Agriculture and Natural Resource's Central Services, and four existing Management Units and establishing eight new development areas (DAs). It would also complete the consolidation phase of the Lilongwe Land Development Programme. About 90,000 farm families would benefit directly from the project which would enable them to increase their annual farm income by at least 40 percent. Major risks facing the project are: (i) adoption of improved husbandry practices by farmers may be slower than projected; (ii) fertilizer use may be reduced if the prices of fertili- zers rise faster than smallholder producer prices; (iii) dark-fired tobacco may prove difficult to market due to limited world demand. The project would be cofinanced with the United Kingdom's Overseas Development Ministry (ODM), European Development Fund (EDF), Canadian International Development Agency (CIDA) and the Federal Republic of Germany. The Association would administer the CIDA contribution. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Cost: (project is tax exempt) ------US$ million----- Local Foreign Total Percentage Central Services 2.9 5.3 8.2 12.4 Management Units 7.7 4.5 12.2 18.5 Development Areas 16.8 9.3 26.1 39.5 LLDP Consolidation 4.1 1.8 6.0 9.1 Sub-total 31.5 20.9 52.5 79.5 Physical Contingencies 1.8 1.0 2.8 4.3 Price Contingencies 6.3 4.5 10.7 16.2 Total 39.6 26.4 66.0 100.0 Financing Plan: -------------