Somalia - North-West Region Agricultural Development (Phase II) Project

Document of The World Bank FOR OFFICIAL USE ONLY CA /S3 C S Report No. 5292-SO STAFF APPRAISAL REPORT SOMALIA NORTH-WEST REGION AGRICULTURAL DEVELOPMENT PROJECT - PHASE II November 26, 1984 Eastern and Southern Africa Regional Office Northern Agriculture Division 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.  CURRENCY AND EQUIVALENT UNITS Somali Shilling (So.Sh.) = 100 cents US61.OU = So.Sh. 26.26 WEIGHTS AND MEASURES 1 Hectare (ha) = 10,O00 mZ 1 Square Kilometer (km2) = 100 ha 1 Metric Ton (mt) = 1,000 kg ABbREVIATIONS ABC = Agricultural Development Corporation EEC = European Economic Community GOP = Gross Domestic Product GUS = Government of Somalia 1BD = International Bank for Reconstruction and Development ICB = International Competitive Bidding IDA = International Development Association IFAD = International Fund for Agricultural Development MIUA = Ministry of Agriculture DIES National Extension Service ONAT = Tractor Hiring Agency PMC = Project Ministerial Committee PMU = Project Management Unit PPF = Project Preparation Facility SDA = Settlement Development Agency SDB Somali Development Bank FISCAL YEAR January 1 - December 31  FOR OMCIAL USE ONLY SOMAL IA NORTH WEST REGIUtl AGRICULTUkCAL DEVELOPMENT PROJECT - PHASE II CREDIT AND PROJECT SUMMARY Borrower: Somali Democratic Republic beneficiary: Ministry of Agriculture Amount: SDI 10.7 million (US$10.6 million equivalent) Terms: Standard Cofinancing: SI( 7.05 million (US$7.0 million) equivalent from the International Fund for Agricultural Development and US$5.4 million equivalent grant from the European Economic Community. Project Description: Objectives: Over a five-year period, the project would (i) increase small rainfed farmer incomes and subsistence through improved production of grains (sorghum and maize) by soil and moisture conservation, adaptive research, extension, farmer training and the supply of farm inputs, (ii) increase fruit and vegetable production from the small irrigated gardens through construction of new gardens, rehabilitation of existing gardens, technical support, research, extension and the supply of fara inputs and (iii) strengthen local institutional capacity to implement projects and to improve services to farmers. Components: (a) Rainfed components would include soil and water conservation works onto 25,000 ha, a pilot watershed program and appropriate extension and research. (b) Irrigation components would include 50 small irrigated farms, appropriate extension and research and establishment of a new horticultural research farm. (c) Water points (d) Farm input and equipment supply (e) Training (f) Project Management Unit (g) Semi-Mechanized Rainfed Agricultural Development at Kurtun-Waarey and Sablaale. I This docunent has a resticed distribution and may be used by recipients only in the performance of their offia duties. Its contents may not otherwise be disclosed without World Bank authorzation.  - ii - Benefits: The principal benefits would be increased production of sorghum, maize, fruits and vegetables estimated at full development (year 10) to be about US$3.4 million annually; farm household income for rainted farmers raised from So.Sh. 12,530 (US$480) to 33,170 (US$1,260) and for irrigated farmers So.Sh. 81,120 (US$3,090). The project would affect 42,000 persons in rainfed and 3,000 persons in irrigated farming and create additional job opportunities in the agricultural sector in the region. The project would continue the process of institution building to sustain the provision of services to farmers and involve private sector participation in input supply and marketing. Risks: Project risks include security in the region and continuity of staff employed in the project. Security problems have diminished but such risks in this area of Somalia cannot be excluded. Staff incentives applied in the first project would continue to be used in Phase II, thus helping to attract and retain qualified staff. Project Components Local Foreign Total - US$ Million---- Rainfed Components 2.8 6.6 9.4 Irrigation Components 0.5 2.2 2.7 Water Points 0.3 0.3 u.6 Farm Input and Equipment Supply 0.2 3.z 3.4 Training - 0.7 0.7 Project Management Unit 1.0 1.4 2.4 Semi-Mechanized Hcainfed Agricultural Development 0.X 0.4 0.6 bubtotal 5.0 14.8 19.8 Physical Contingencies 0.5 0.7 1.2 Price Contingencies 1.1 3.5 4.6 6.6 19.0 25.6 Financing Plan IDA Credit 2.0 8.6 10.6 IFAD 1.5 5.5 7.0 EEC 0.' 4.9 5.4 Government of Somalia 2.6 - 2.6 6.6 19.0 25.6 Estimated Disbursements IDA FY 1986 1987 1988 1989 1990 1991 -