Central African Empire - Livestock Development Project

Document of _ tU, The World Bank FOR OFFICIAL USE ONLY Report No. 2134-CAE STAFF APPRAISAL REPORT CENTRAL AFRICAN EMPIRE LIVESTOCK DEVELOPMENT PROJECT March 16, 1979 This document has a restricted distribution and may be used by recipients only in the performance of their officiai duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unil: = CFA franc (CFAF) US$1.00 = CFAF 220 CFAF 1,000 = US$4.55 WEIGHTS AND MEASURES 1 kilometer k2 = 0.62 mile 1 square kilometer (km ) 0.39 square mile 1 hectare = 2.47 acres 1 kilogram (kg) = 2.2 pounds 1 metric ton (t) = 2,205 pounds FISCAL YEAR JuLy 1 - June 30 LIST OF ABBREVIATIONS ADF - African Development Fund AdTE - Animal Health Technician (Adjoint Technique d'Elevage) AgTE - Animal Health Agent (Agent Te,chnique d'Elevage) ANEC - National Livestock Owners Association (Association Nationale des Eleveurs Centra:Ericains) EEC - European Economic Community IEMVT - Institute for Tropical Livestock and Veterinary Medicine - French (Institut d'Elevage et de Medicine Veterinaire des Pays Tropicaux) IFAD - International Fund for Agricu:Ltural Development FAC - French Aid Agency (Fonds d'Aide et de Cooperation) FAO - Food and Agricultural Organization FED - European Development Fund FRG - Federal Relpublic of Germany RMWA - Resident Mission, West Africa (World Bank Group) SEGA - National Abattoir Management Company (Societe d'Etat de Gestion des Abattoirs) UNDP - United Nations Development Program  FOR OFFICIAL USE ONLY CENTRAL AFRICAN EMPIRE LIVESTOCK IDEVELOPMENT PROJECT TABLE OF CONTENTS Page No. I. BACKGROUND ............................................. 1 A. General ........................................... . 1 B. The Livestock Subsector ..... ...................... 2 II. THE PROJECT AREA .............................. l III. THE PROJECT .............. ............................. 13 A. Project Objectives and Summary Description ...... .. 13 B. Detailed Features ........ ......................... 14 C. Cost Estimates .................................... 20 D. Proposed Financing Plani ...... ..................... 22 E. Procurement ....................................... 23 F. Disbursements ..................................... 24 G. Accounts and Audit ................................ 24 IV. PROJECT IMPLEMENTATION ................................ 25 A. Project Management ................................ 25 B. Staff Training, Incentives and Recruitment ........ 27 C. Administrative Procedures ......................... 28 V. PRODUCTION TECHNIQUES ........ ......................... 29 A. Animal Health and Production Measures .......... ... 29 B. Impact on Herd Productivity ...... ................. 31 VI. FINANCIAL ANALYSIS .................................... 32 A. Output ............................................ 32 B. Markets and Prices ........ ........................ 34 C. Cost Recovery ..................................... 35 VII. BENEFITS, JUSTIFICATION AND RISKS ..... ................ 36 VIII. ASSURANCES, CONDITIONS AND RECOMMENDATIONS .... ........ 39 This report is based on the findings of an appraisal mission comprising Messrs. A. Osei and R. Brown (IDA) and Messrs. Y. Cheneau and J. Coulomb (consultants) which visited the Central African Empire in February/March 1978. 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 Worid Bank authorization.  TABLE OF CONTENTS (Continued) Appendix 1 - Project Studies -- Summary Terms of Reference Appendix 2 - Initial Tasks of Pro ject Manager Appendix 3 - Reporting Format ANNEXES 1. Summary Project Cost by Years 2. Herd Development Model - Without Project 3. Herd Development Model - With Project 4. Incremental Milk Production 5. Incremental Benefits for Average Family 6. Disbursement ScheduLe CHARTS 1. 19122 - Topia Pilot Project - Implementation Schedule 2. 19123 - Proposed Projec:t Organization MAPS IBRD 13642 IBRD 13643 PROJECT FILE - (Available on requejst) (a) Central African Empire -- Livestock Development Project, Preparation Report - RMW1A; 1977 (in French) (b) Working Paper on Animal Health in CAE; March 1978 (in French) (c) Working Paper on Animal Production in CAE; March-April 1978 (in French) (d) Le Cheptel Bovin de la Republique Centrafricaine by Lacrouts, Sarniguet et Tyc; 1966 (e) Miscellaneous Working Papers (i) Detailed Terms of Reference for Consultants (ii) Herd Numbers - M'Bororo Cattle (iii) Comparative Statistics on Meat Demand 1965 and 1976 - A. Basis - Official Slaughter Data - B. Basis - Per Capita Consumption (iv) Imports of Live Cattle (v) Meat Demand Projections (vi) Meat Price Structure - Bangui (vii) Detailed Project Cost 1 - Investments 2 - Operations, Maintenance and Supplies 3 - Studies 4 - Personnel (viii) Economic Rate of Return Calculation (ix) Reporting Format  I. BACKGROUND A. General Project Background 1.01 The Government of the Central African Empire has asked the Inter- national Development Association to assist in financing a livestock develop- ment project that would increase dornestic beef production through an improve- ment in livestock services to traditional herdsmen, the M'Bororo, who own most of the nearly 700,000 cattle in the western half of the country. The project was identified in 1975 by RMWA which completed a preparation report in late 1977 on behalf of the Goverrument. Appraisal took place in February/ March, 1978. The Economic Setting 1.02 The CAE is a thiniy populated country with 1.9 million inhabitants distributed over 620,000 km in a landlocked position. The vegetation changes from equatorial forest in the south to sudanian savannah in the north, with large areas of transitional wooded savannah which are more suitable for animal husbandry than for crop production. The transport connection with the Atlantic Ocean is via the Oubangui-Congo river to Brazzaville (1,300 km) and then by railway to Pointe Noire (510 km). River traffic is very limited during the dry season, between January and ApriLl. There is a road connection with Cameroon which is currently in poor condition. The section from Bangui to Bossembele is to be upgraded under a Third Highway Credit recently approved (Cr. 847-CA). 1.03 In 1976, GNP per capita wis estimated at US$230 equivalent, about the same level as it was in 1970. Agriculture and forestry together account for about 38% of GNP, including four percentage points contributed by the livestock subsector. Population is concentrated in the south and the west of the country, where the principal economic activities and Bangui, the capital and only principal city (with 250,000 inhabitants), are located. The other provincial cities, such as Bouar, M"Baiki, Bambari, Berberati, and Bossangoa, have populations no greater than 30,000 each. Industrial activity is limited to processing agricultural products (mainly cotton, coffee, tobacco and wood) and the production of some consumer goods (e.g., beer and soft drinks). Alluvial diamonds are prodluced although there are no large-scale mines. The only other mineral resource of importance is the yet unexploited deposit of uranium in the northeast. The service sector -- transport, com- merce and public administration -- accounts for the balance of wage employment. The provinces of the east2and northeast have only about 100,000 inhabitants dispersed over 250,000 km The Agricultural Sector 1.04 Agriculture accounts for about 80% of export receipts and supports about 80% of the population. There are about 300,000 farms with average farm size of 1.75 ha. Cassava is the presdominant food crop except in the northeast where millet is widely grown. Other food crops are groundnuts, maize, yams, sesame, rice and vegetables. The main cash crops are cotton, coffee and  - 2 - tobacco, which are 100% marketed; cassava, 40% marketed; and groundnuts, 10-15% marketed. The fore2try zones, in the southwest and center-south, cover a total of 34,000 km . After a decade of rapid progress, the wood industry entered a recession in 1974/75 following the reduction of demand 3 in traditional export markets. In