Upper Volta - Second Bougouriba Agricultural Development Project

Document of FILE CP The World Bank COPY FOR OFFICIAL USE ONLY Report No. P-2943-UV REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO"THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF UPPER VOLTA FOR THE SECOND BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT January 7, 1981 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 autborization.  CURRENCY EQUIVALENTS Currency Unit e CFAF Franc (CFAF) SDR 1 = US$1.29 - CFAF 271 US$ 1 = CFAF 210 WEIGHTS AND MEASURES 1 metric ton = 0.98 long ton (2,205 lbs.) 1 hectare (ha) = 2.47 acres 1 kilometer 0.62 miles ABBREVIATIONS CNCA National Agricultural Credit Bank MRD Ministry of Rural Development OFNACER National Cereals Agency ORD Regional Development Organization SOFITEX Textile Fiber Company (Parastatal) FISCAL YEARS Government: January 1 - December 31 Project: April 1 - March 31  FOR OFFICIAL USE ONLY UPPER VOLTA SECOND BOURGOURIBA AGRICULTURAL DEVELOPMENT PROJECT CREDIT AND PROJECT SUMMARY Borrower: The Republic of Upper Volta Amount: SDR 12.4 million (U';$16.0 million) Terms: Standard Project Description: This is follow up to the first Bougouriba Agricultural Develop- ment Project (Credil: 496-UV). It would seek to consolidate the experience of the first phase and, without expanding the extension service, would aim at including a greater number of farmers, further increasing agricultural and livestock produc- tion in the Bougouriba ORD. Attention would be concentrated on the technical management of rainfed agriculture by improved organization of the training and extension systems, input distribution and credit. Successful animal health activities would be continued and improved animal husbandry practices and increased use of animal traction promoted with modest adoption goals recognizing the relative novelty of these ideas in the area. About 22,000 of the 33,000 farm families in the area would be directly reached by the agricultural extension program, an increase of 9,001) from present levels. Emphasis would be upon increasing yieLds of the main foodcrops -- millet and sorghum -- by simple husbandry techniques; together with recom- mendations for the cash crops grown by farmers in the various regions - principaLly yams in the south, groundnuts in the east, and cotton in the north and south. The project also includes small prog-rams designed to encourage more fruit and fuelwood tree planting, and erosion control. Principal direct beniefits of the project would be the increases in annual crop and Livestock production. The reorganized project agricultural extensLon service would directly benefit over 200,000 people whose present per capita incomes are well below the estimated absolute poverty level. Farm incomes would increase significantly and better standards of living can be expected. The forestry and anti-erosion components, though limited, address funadamental problems facing Upper Volta. Indirectly, through provision of technical assistance and training, the project would improve the capability of nationals to operate and manage development projects. There are no unusuaL technical risks in the agricultural and livestock programs. The proposed approach (except for yams) has been tested elsewhere by Bank Group projects in Upper Volta. Perceived risks are: breakdown of the marketing system due to delays in implementing the road program or lack of services provided by OFNACER and/or private traders; non-use This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contenst may not otherwise be disclosed without World Bank authorization.  - ii - of inputs because of price rises or breakdown in the delivery system; speed of farmer response and difficulties on the part of the Government in meeting its contribution to project costs. The project has been designed to minimize these risks. Estimated Cost: Total project costs which exclude all identifiable taxes and duties are detailed in the table below: Local Foreign Total --------------US$ Million------------- 1. Agricultural Extension 2.8 0.6 3.4 2. Training and Extension Methods 0.2 0.5 0.7 3. Supply Service 0.5 0.8 1.3 4. Oxen, ox equipment and incremental inputs 1.1 1.4 2.5 5. Livestock 0.5 0.5 1.0 6. Tree planting 0.2 0.1 0.3 7. Headquarters 0.6 2.2 2.8 8. Monitoring and Planning 0.2 0.2 0.4 Total Base Costs 6.1 6.3 12.4 Physical Contingencies 0.5 0.6 1.1 Price Contingencies 1.8 2.2 4.0 Total Project Costs 8.4 9.1 17.5 Financing Plan: The IDA Credit of SDR 12.4 million (US$16.0 million) would cover 100 percent of all foreign exchange costs and 82 percent of local costs. IDA Government Total