Guinea - Rice Development Project

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Report No. P-2516a-GU1 REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REVOLUTIONARY PEOPLE'S REPUBLIC OF GUINEA FOR A RICE DEVELOPMENT PROJECT August 28, 1979 This document has a restricted distribution and may he used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Syli US$1.00 = 20 Sylis Syli 1.00 = US$0.05 Syli 1 million = US$50,000 MEASURES 1 kilogram (kg) 2.20 lbs. 1 ton (t) 1.1 US tons 1 millimeter (mm) = 0.04 inch 1 meter (m) = 3.28 ft. 1 kilometer (km) = 0.62 miles 1 hectare (ha) 2.47 acres ABBREVIATIONS ADB - African Development Bank ADF - African Development Fund BGCE - Banque Guineenne du Commerce Exterieur BMP - Brigade Mecanisee de Production (Farmer Cooperative) BNDA - Banque Nationale de Developpement Agricole CGR - Commissariat General de la Revolution (Regional Authority) EDF - European Development Fund IITA - International Institute for Tropical Agriculture IRAT - Institut de Recherche Agricole Tropicale ONADER - Operation Nationale pour le Developpement de la Riziculture ORG - Operation Riz Gueckedou PPF - Project Preparation Facility PRL - Pouvoir Revolutionnaire Local WARDA - West Africa Rice Development Association FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY THE REVOLUTIONARY PEOPLE'S REPUBLIC OF GUINEA RICE DEVELOPMENT PROJECT CREDIT AND PROJECT SUMMARY Borrower: Revolutionary People's Republic of Guinea Amount: US$10.4 million Terms: Standard Colender: African Development Fund: US$4.9 million on IDA terms. Project Over five years the project would assist the Guinean Gov- Description: errment to develop its rice sector. Through its national component the project would: (a) strengthen the Ministry of Agriculture by establishing a specialized unit for the planning and coordination of the country's rice develop- ment program including consultant assistance and fellowship funds for the training of Guinean cadres; (b) upgrade the country's agronomic rice research in order to provide a testing and demonstration capacity for introducing technical improvements; (c) undertake a pricing study to assist Govern- ment to restructure agricultural prices so as to provide appropriate incentives to its rural sector; and (d) prepare for a future agricultural development project in Upper Guinea. The project also contains a regional component, a pilot project to be carried out in Guinea's Forest Region to test and develop technical improvements to rice cultivation prac- tices of farmers. If the pilot operation is a success, it would constitute the basis for a follow-up project in that area. Project risks relate to Guinea's financially con- strained and unwieldy administration, economic distortions affecting farmer incentives, shortage of trained staff, and the newness to the country of most of the measures that would be introduced under the project. Such risks have been mini- mized through: special financing and procurement procedures designed to guarantee foreign exchange and local funds for project operations and to facilitate advance planning of procurement; the project's credit procedures and arrangements for increasing the availability of consumer goods for purchase by project participants; special arrangements and guarantees concerning the autonomy of the project executing agency; the provision of substantial technical assistance in key areas and of training fellowships for upgrading the technical expertise of Guinean staff; technical proposals for the pilot project which are simple, based on successful experience elsewhere in West Africa, and which would not require project participants to make significant departures from their existing farming systems; and, finally, rigorous reporting requirements and arrangements for internal monitoring and forward planning of project activities. 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.  Estimated Cost: % of (Net of Taxes) Local Foreign Total Base Costs (US$ million)------ ONADER and Training Fellowships 0.4 3.0 3.4 22 Agric tural Research on Rice Cultivation 0.7 1.2 1.9 12 Agricultural Pricing Study /a 0.4 0.4 2 Project Preparation Study /a 0.4 0.4 3 Pilot Project 2.3 7.3 9.6 61 BASE COST 3.4 12.3 15.7 100 Contingencies Physical 0.2 0.7 0.9 Price 0.7 2.3 3.0 TOTAL PROJECT COST (net of tax) 4.3 15.3 19.6 Taxes on Fuel and Lubricants 1.4 - 1.4 TOTAL PROJECT COST (inclusive of taxes) 5.7 15.3 21.0 /a Less than US$50,000. Financing Plan: Local Foreign Total