Niger - Irrigation Rehabilitation Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 5161-NIR STAFF APPRAISAL REPORT NIGER IRRIGATION RERABLITATION PROJECT May 30, 1985 West Africa Projects Department Agriculture C This document has a restricted distribution and may be used bv recipients only in the performance of| their official duties. Its contents may not otherwise be disclosed without World Bank antborization.  CURRENCY EQUIVALENTS Currency Unit = CFA Franc (CFAF) US$1.0 = CFAF 460 CFAF 1 million = US$2,174 SYSTEMS OF WEIGHTS AND MEASURES Metric British/US Equivalents 1 meter (m) = 3.28 feet (ft.) 1 square meter (m2) = 10.76 square feet (sq.ft.) 1 cubic meter (m3) = 35.30 cubic feet (cu.ft.) 1 kilometer (km) = 0.62 mile (mi.) 1 square kilometer (km2) = 0.39 square mile (sq.mi.) 1 hectare (ha) = 2.47 acres 1 metric ton (m ton) = 2,205 pounds (lbs_) ABBREVIATIONS AND ACRONYMS ADDM Ader-Doutchi-Eaggia, an intermittent tributary of the Sokoto River in the Tahoua Province of Niger BCEAO Banque Centrale des Etats de l'Afrique de l'Ouest (Central Bank for WTest African Monetary Union) CA Centrale d'Approvisionnement (Input Supply Center) CCCE Caisse Centrale de Cooperation Economique (French Aid Loan Agency) CFDT Compagnie Fran-aise pour le Developpement des Fibres Textiles (French Company for Cotton Development) CNCA Caisse Nationale de Credit Agricole (National Agricultural Develop- ment Bank) EDF European Development Fund FAC Fonds d'Aide et de Cooperation (French Aid Grant Agency) GMV Groupement Mutualiste Villageois (Village Mutual Group) INTRAN Institut National de Recherches Agronomiques du Niger (National Agricultural Research Institute) KfW Kreditanstalt fur Wiederaufbau (Federal Republic of Germany Aid Agency) NIGELEC Societe Nigerienne d'Electricite (National Electricity Authority) OPVN Office des Produits Vivriers du Niger (Grain Marketing Board) ONAHA Office National des Amenagements Hydro-Agricoles (National Irriga- tion Authority) RINI Societe Riz du Niger (Rice Processing Parastatal) UNCC Union Nigerienne de Credit et de Cooperation (Nigerien Credit and Cooperative Union) FISCAL YEAR October I - September 30  FOR OMCIAL USE ONLY NIGER IRRIGATION REHABILITATION PROJECT TABLE OF CONTENTS Page DOCUMENTS CONTAINED IN PROJECT FILE ................................... iii-v CREDIT AND PROJECT SUMARY ............................................ vi-vii I. INTRODUCTION... A. Project Background ....................................... 1 B. The Rural Sector ......................................... 1 C. Institutions ............................................. 3 D. Sector Issues and Strategy ............................... 7 II. PROJECT AREA .................................................. 10 A. Physical Resources ....................................... 10 B. Socio-Economic Features .................................. 12 C. Past Development and Present Situation of the Irrigation Sub-Sector ................................ 13 III. PROJECT OBJECTIVES AND DESCRIPTION ............................ 15 A. Objectives and Brief Description ......................... 15 B. Detailed Features ........................................ 16 C. Status of Project Preparation ............................ 22 D. Project's Ecological Impact .............................. 22 E. International Water Rights ............................... 22 IV. PROJECT COST AND FINANCIAL ARRANGEMENTS ....................... 22 A. Cost Estimates ........................................... 22 B. Proposed Financing Plan .................................. 24 C. On-Lending and Administration of Funds ................... 25 D. Special Revolving Fund Account ........................... 26 E. Procurement and Use of Consultants ....................... 27 F. Disbursement ............................................. 29 G. Accounts, Audits and Reporting ........................... 30 This report is based on the findings of an appraisal mission to Niger in November-December 1983. Mission members included Messrs. Djibril Av (Agriculturalist/Leader), Bernard Dussert (Financial Analyst), Jan Pruntel (Engineer) and Ms. Noriko Iwase (Economist), all from IDA, and Messrs. Jean-Frangois Barres (Rural Development Specialist, Consultant), Adolphe Chavancy (Agriculturalist, Consultant) and Hendrik Rozeboom (Rice Processing and Marketing Specialist, Consultant). This report was edited by Ms. Michale Moriarty (Editorial Assistant) and processed by Mr. Jacques Bourgoin and Ms. Jehanne Romain. This document has a restricted distibution and may be used by recipients only in the performnce of thir official duties. Its contents may not otberwise be discosed without World Bank authorization.  - ii - Table of Contents (continued) V. ORGANIZATION AND MANAGEMENT ................................. 31 A. Project Implementation .31 B. Financial Management ..................................... 32 C. Credit Management and Marketing .......................... 33 VI. PRODUCTION, MARKETS, PRICES AND FINANCIAL ANALYSIS .34 A. Production .34 B. Markets ...................,... 35 C. Prices ..................... 37 D. Cost Recovery .39 E. Financial Implications for Beneficiaries,., . 41 F. Financial Analysis of ONARA .44 G. Recurrent Costs and Impact on Government Finances .45 VII. ECONOMIC JUSTIFICATION AND RISKS .45 A. Project Benefits ...................... 45 B. Economic Analysis .......................,,.,,.46 C. Risks .48 VIII. AGREEMENTS REACHED AND RECOMMENDATIONS,....................... 48 ANNEXES 3-1 Evolution of Cultivable Areas 3-2 Input and Agricultural Equipment Requirements 3-3 Construction Schedule 4-1 Draft Terms of Reference for Technical Assistance 4-2 Estimated Disbursement Profile 6-1 Evolution of Area, Yield and Production: Rice, Cotton, Sorghum and Onions 6-2 Cost Recovery: Irrigation for Rice 6-3 Rice Crop Budget 6-4 ONAHA: Summary Financial Statement 6-5 ONAHA: Projected Income Statement 6-6 Government Project Related Cash Flow 7 Key Parameters Used in Economic Analysis MAP IBRD No. 18074R: Niger - Irrigitation Rehabilitation Project  -Wii- NIGER IRRIGATION REHABILITATION PROJECT DOCUMENTS CONTAINED IN THE PROJECT FILE A. Selected Reports and Studies Related to the Project Reports by SOGREAH and Louis Berger Ref. No. Document Code A.1 Donnees de base et diagnostic (vallee du fleuve - 126.823 (W1-3) Ader Doutchi Maggia), May 1982. A.2 Donnees de base et diagnostic (complement Ader- 126.823 (S1-3) Doutchi Mag