Togo - Third Coffee and Cocoa Development Project

Doc_nt of The World Bank FOR OFFICIAL USI4 ONLY Report No. 6220-To STAFF APPRAISAL REPORT REPUBLIC OF TOGO THIRD COFFEE AND COCOA DEVELOPMENT PROJECT November 11, 1986 Western Africa Projects Department Agriculture A This document has a restricted distribution and may be used by recipients only in the performance of thei, official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENT Currency Unit CFA Franc (CFAF) US$1 CFAF 350 CFAF 1 US$0.0028 CFAF 1,000,000 - US$2857 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS CNCA - Caisse Nationale de Credit Agricole du Togo National Agricultural Credit Agency DAF - Direction Administrative et Financiare Administration and Finance Department DOA - Direction des Operations Agricoles Agricultural Operations Department DRA - Direction de la Recherche Agronomique Directorate of Agricultural Research FAC - Fonds d'Aide et de Cooperation (France) French Development Aid Agency ICO - International Coffee Organization IRAT - Institut de Recherches Agronomiques Tropicales Research Institute for Tropical Agronomy IRCC - Institut de Recherche du Cafe et du Cacao Research Institute for Coffee and Cocoa MBR - Direction Matgriel, Batiment et Routes Civil Works Department OPAT - Office des Produits Agricoles du Togo Agricultural Commodities Marketing Agency SRCC - Socifte Nationale pour la Renovation et le Developpement de la Cacaoyare et de la Caffitre Togolaises National Cocoa and Coffee Development Company STCP - Socifte Togolaise de Commerce des Produits National Marketing Agency UCP - Unite de Credit du Projet Project Credit Unit FISCAL YEAR Government January 1 to December 31 SRCC January 1 to December 31 UCP : October 1 to September 30  FOR omCAL us: ONLY REPUBLIC OF TOGO THIRD COFFEE AND COCOA DEVELOPMENT PROJECT TABLE OF CONTENTS age DOCUMENTS CONTAINED IN PROJECT FILE ...................... v CREDIT AND PROJECT SUMMARY .................................. vii KEY FEATURES OF THE AGRICULTURAL SECTOR ................. . xi I. INTRODUCTION ...................................1..... II. ECONOMIC PROSPECTS . ................................. 1 III. THE RURAL SECTOR ................... . . 2 A. The Agricultural Sector ........................ 2 B. The Institutional Framework . ................ 2 C. The Cocoa and Coffee Subsector ............... .. 3 D. Experience in Past Lending ..................... 4 E. Project Formulation and Rationale for IDA Involvtnent ....... . . . ...... ............ 6 F. The Project Area ........ ....................... 7 IV. THE PROJECT .............. 9 A. Project Objectives and Description ............ . 9 B. Detailed Features .. ........................... . 10 1. Coffee and Cocoa Plantings ................ . 10 2. Coffee Maintenan ee Program . ............ 11 3. Plant Protection Program .......... 11 4. Fooderop Development ................ 12 5. Applied Research ....... .................... 12 6. Feeder Roads ................ ... ................ 13 7. Farmers' Associations ................... #-- 13 8. Institutional Support ... ................... 14 This report is based on the findings of an appraisal mission which visited Togo in February 1986, comprising Ms. Nguyen (Mission Leader), Messrs. Fayd'herbe, Gray, Bah, Levy, (IDA), Caumel (Consultant), Borderon (CCCE) and Felix (FAC). Ms. Gabre Maskal was responsible for the typing. 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.  - ii - C. Organization and Management ......................... 14 1. Organizational Structure of SRCC ................ 14 2. Technical Assistance ................ ..... 15 3. Criteria for Selecting Farmers ................... 16 4. Credit .......*.................................. 16 5. Strengthening of Extension Services ............. 17 6. Monitoring and Evaluation ....................... 18 7. Present Status of the Project ................... 18 D. Project Costs and Financing ... ...................... 18 1. Cost Estimates .. ****.... . . ... ....... .. ..... ..... 18 2. Financing Plan ........ ..... .......... 19 3. Recurrent Cost and Government Financlng......... 20 4. Project Preparation Facility ..................... 20 5. Procurement and Disbursement ..................... 21 6. Accounts, Audit and Reporting Requirements ...... 23 E. Production, Marketing and Pricing .................. 24 F. Benefits and Risks ..... 26 1. Project Benefits ... ***.. *... ................. 26 2. Financial Impact on Government's Revenues ....... 26 3. Environmental Impact ....... .................... 21 3. 2conomic Rate of Return ......................... 27 4. Project Risks .................................. 27 V. AGREEMENTS AND RECOMMENDATIONS ......... . .... . ................. 27 ANNEXES 3 Historical Production and Prices of Coffee and Cocoa 4-1 Implementation Schedule 4-2 Applied Research 4-3 Feeder Roads 4-4 Vehicles and Equipment 4-5 Training Plan 4-6 SRCC: Organization Chart 4-7 Credit Programs for Coffee/Cocoa and UCP Cashflow 4-8 Summary of Cost Estimates 4-9 Disbursement Schedule 4-10 Coffee and Cocoa Production Estimates 4-11 Producers' Incentives Analysis 4-12 Summary of Farm Budgets  - iii - 4-13 Governusut Revenues and Cash Flow 4-14 Economic Analysis MAPS IBRD No.19606 Project Area IBRD No.19605 SRCC Extension Sectors  14oo ` - r ow,P 0(-Z $4,* AoT  - v REPUBLIC OF TOGO THIRD COFFEE AND COCOA DEVELOPMENT PROJECT DOCUMENTS CONTAINED IN THE PROJECT FILE A. REPORTS Code No. 1. Rapport Interimaire de Preparation (FAO/CP 226.365 August 1985) 2. Supplementary Volume (FAO/CP) 320.284 3. Rapport Annuel SRCC 1984, 1985, 1986 SRCC-YBR 84/85, 86 YFR 84 4. Rapports d'Audit (SRCC, UCP) SRCC-YAR-84 CR 945 YAR 84 YBR 85/86 B. WORKING PAPERS 1. Technical Papers 1.1 Propositions pour une Amelioration des 320.285 Composantes Vulgarisation et Formation du Projet - M. Levy 1.2 SRCC Road Program - A. Bah 320.286 1.3 Research Programs for Cocoa/Coffee 320.287 and Foodcrops - B.Gray. 1.4 Promotion des Groupements Villageois 320.288 A. Felix 1.5 Composante Vivri6re - Volet Semencier 320.289 A. Borderon 1.6 Credit Administration - J.C. Fayd'herbe 320.290 1.7 Composantes Cacaoyare et 320.295 Cafeiere - G. Caumel 2. Detailed Project Cost Tables 2.1 SRCC 320.291 2.2 Project Administration 2.3 Rural Tracks i 2.4 IRCC " 2.5 IRAT " 2.6 Planting Material and Mirid and Blackpod Control 2.7 Project Credit Unit " 2.8 Summary Project Cost Table i 3. Crop and Farm Budgets 320.292 4. Economic Analysis 320.293  No > ,i i I .*  - vii - REPUBLIC OF TOGO THIRD COFFEE AND COCOA DEVELOPMENT PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Togo Beneficiary: Societe Nationale pour la R&novation et le Developpement de la Cacaoyare et de la Caf6i4re Togolaises (SRCC) Amount: SDR 14.9 million (US$17.9 million equivalent) Terms: Standard IDA terms Flow of Credit Proceeds: Borrower to SRCC (US$17.9 million); Grant Project Description: The project would aim to increase coffee and cocoa production through both improving the productivity of investments under the first and second cocoa-coffee development projects and by plantings in new areas. It would be implemented over five years and would include: (a) provision of inputs and technical advice to farmers for the planting of 7,500 ha of coffee and 2,000 ha of cocoa, maintenance of existing 16,600 ha of coffee planted under the first two projects, and development of some 22,000 ha of foodcrops; (b) implementation of annual plant protection programs against pest attacks on existing cocoa trees (mirid and blackpod); (c) applied research in coffee, cocoa and fooderops; (d) construction (250 km) and maintenance of feeder roads; (e) establishment of about 250 farmers' groups for marketing, input distribution and saving purposes; (f) support to SRCC, including 14 man-years of technical assistance and 12 man-months of short-term consultants' services; and (g) studies of land tenure problems in the project area and a future strategy for cocoa-coffee development ill Togo.  - viii - Estimated Project Costs a/ Local Foreign Total ------- US$ million ---------- Agricultural Development 1.5 5.1 6.6 Applied Research 2.2 1.7 3.9 Feeder Roads 1.4 4.4 5.8 Institutional Development 5.2 4.2 9.4 Total Base Cost 10.3 15.4 25.7 Physical Contingencies 0.3 0.8 1.1 Price Contingencies 2.7 3.7 6.4 Total Project Cost 13=3 19.9 33.2 a! including US$1.1 million for taxes and duties and US$1.5 million for activity financed under the Project Preparation Facility. Financing Plan Local Foreign Total