Cameroon - National Agricultural Research Project

rocumnt of The World Bank FOR OFFICIAL USE ONLY As pR2-C4 Report No. P-4152-CM REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO USg17.8 MILLION TO THE REPUBLIC OF CAMEROON FOR THE NATIONAL AGRICULTURAL RESEARCH PROJECT October 29, 1986 I This document has a restricted distribution and may be used by recipients only in the performance of their official duties Its contenis may not otherwise be disclosed without World Bank authorization.  CAMEROON NATIONAL AGRICULTURAL RESEARCH PROJECT CURRENCY EQUIVALENTS Currency Unit = CFAF Franc (CFAF) 1 US$ = CFAF 360 (as of July 1986) WEIGHTS AND MEASURES 1 Square kilometer (km2) = 0.3861 square mile 1 Hectare (ha) = 0.01 km2 = 2.4711 acres ABBREVIATIONS AND ACRONYMS CGIAR Consultative Group on International Agricultural Research DGRST Delegation Generale pour la Recherche Scientifique et Technique (General Delegation for Scientific and Technical Research) DRST Direction de la Recherche Scientifique et Technique (Directorate of Scientific and Technical Research) GTZ Deutsche Geselschaft fur Technische Zusammenarbeit Gmbh IRA Institut de la Recherche Agronomique (Institute of Agronomic Research) IRZ Institut des Recherches Zootechniques (Institute of Animal Research) ISNAR International Service for National Agricultural Research MESRES Ministere de l'Enseignement Superieur et de la Recherche Scientifique (Ministry of Higher Education and Scientific Research) MINAGRI Ministere de l'Agriculture (Ministry of Agriculture) MINEPIA Ministare de l'Elevage, de la Peche et des Industries Animales (Ministry of Livestock, Fisheries and Animal Industries) NARP National Agricultural Research Program NCRE National Cereals Research and Extension Project (USAID) ODA Overseas Development Administration (United Kingdom) PAID/CA Pan African Institute for Development/Cameroon TAC Technical Audit Committee TLU Testing and Liaison Unit FISCAL YEAR July 1 - June 30  FOR OFFICIAL USE ONLY CAMEROON NATIONAL AGRICULTURAL RESEARCH PROJECT LOAN AND PROJECT SUMMARY Borrower: Republic of Cameroan Beneficiary: Ministry of Higher Education and Scientific Research Amount: US$17.8 million Terms: Standard IBRD terms. Cc-financing: Overseas Development Administration, United Kingdom (US$1.6 million equivalent on grant terms) and Deutsche Gesellschaft Fur Technische Zusammenarbeit (GTZ), West Germany (US$0.8 million equivalent on grant terms). Project Description: The project aims at reorienting agricultural research towards solving problems of food crops and livestock production to enhance its effectiveness and relevance to needs of small farmers. The main actions of the project would be to (a) construct and upgrade the physical infrastructure and strengthen technical, operational and managerial capabilities of the Institute of Agronomic Research (IRA) an.! the Institute of Animal Research (IRZ); (b) create central documentation and analytic units to support the research system; and (c) introduce systematic procedures for the review and programming of research and for ensuring dissemination to the extension system. Project Benefits: In the long-term, the project would help to develop improved agricultural techniques and new farming systems focused on food crop and livestock production for local consumption. It would adapt the new technology to the needs of smallholders and herders by focusing on methods for speeding the transfer of research findings to them. Meanwhile, in the short-term, the project would aim at promoting self-sufficiency in the scientific, technical and administrative expertise of the research institutes by increasing the skills of nat4onal staff engaged in agricultural research. 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 autnorization.  - ii - Project Risks The major risk is that the project research findings may not be fully relevant to farmers' needs and therefore not be adopted by them. The project would minimize this risk by: (i) enhancing the ability of the regional centers and stations to undertake relevant research focused on the farming systems (ii) creating an effective interfacing of extension agencies; (iii) strengthening the research programming and administrative capacity of IRA and IRZ; and (iv) providing additional expertise and training for national staff. Estimated Costs % of Local Foreign Total Rase Costs US$ Million - IRA 13.8 9.0 22.8 68 IRZ 2.8 5.1 7.9 24 Joint Services 1.4 1.2 2.6 8 Total Base Cost 18.0 15.3 33.3 100 Of which: Civil works 7.3 2.9 10.2 31 Vehicles/Equipment 1.5 3.4 4.9 15 Technical Assistance 1.0 3.8 4.8 14 Training 0.4 3.1 3.5 10 Salaries local personnel/ 7.8 2.1 9.9 30 operating costs Physical Contingencies 1.1 1.2 2.3 Price Contingencies 5.2 2.4 7.6 Total Project Costs 24.3 18.9 43.2 Taxes and Duties 3.8 - 3.8 Total Project Costs 20.5 18.9 39.4 (net of taxes)  - iii - Financing Plan IBRD ODA GTZ Govt Total --S$ Millio -- Civil Works 6.3 - - 6.4 12.7 Vehicles/Equipment/ 3.1 0.2 0.1 2.9 6.3 Furniture Technical Assistance 4.1 1.2 0.7 - 6.0 Trainfng 4.3 0.2 - - 4.5 Salary/Operating Costs - - - 13.7 13.7 Total 17.8 1.6 0.8 23.0 43.2 Estimated Disbursement (US$ million) FY87 FY88 FY89 FY90 FY91 FY92 FY93 FY94 Annual 0.0 1.1 3.0 4.3 3.9 3.0 1.8 0.7 Cumulative 0.0 1.1 4.1 8.4 12.3 15.3 i7.1 17.8 Economic Rate of Return: n.a. Appraisal Report: No. 4796-CM. -aps: IBRD 17514R and 17515R.  INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECONMENDATION OF THE PRESIDENT- TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF CAMEROON FOR A NATIONAL AGRICULTURAL RESEARCH PROJECT 1. I submit the following report and recommendation on a proposed loan to the Republic of Cameroon for the equivalent of US$17.8 million to help finance a National Agricultural Research Project. The loan would have a term of 20 years, including a 5-year grace period, at the standard variable interest rate. Cofinancing by the Overseas Development Association (UK) and Deutsche Geselchaft fur Technische Zusammenarbeit (FRG) would be in the form of grants of US$1.6 million equivalent and $0.8 million equivalent, respectively. PART I - THE ECONOMY 2. A report entitled "United Republic of Cameroon-Economic Memoran- dum" (Report No. 2877-CM), was distributed to the Executive Directors on April 30, 1980. Since then, several economic and sector missions have visited Cameroon, the most recent one in February 1986. Their major findings, including preliminary work on the changed oil revenue prospects, are incorporated irn the following paragraphs. Background 3. Cameroon is one of Africa's most diverse countries, with a wide variety of climatic and ecological zones, ethnic groups, languages, and traditional cultures. It has an estimated population of 10 million (1985) znd covers an area of 475,000 km2. The overall density is low, but there are several densely populated regions in the west and the extreme north. The main centers of population and economic activity are widely separated. making the development and maintenance of an adequate transportation network vital but also costly. Cameroon's main opportunities for development lie in the expansion of agricultural, livestock and forestry production, as well as the processing of agricultural and forestry products for domestic consumption and export. Cameroon became an oil producer in 1978. Total production reached 8 million tons in 1985, of which 1.2 million tons were refined in Cameroon to meet domestlc demand. 4. Basically an agricultural country at independence in 1960, Cameroon has experienced rapid rural-urban migration; over one-third of the population now lives in the cities. Douala, the major industrial center and port, has an estimated population of about one million; Yaounde, the capital, is the second largest city with an estimated 500,000 residents. Several other urban areas of significant size play important roles in the economies of the various regions.  5. The stated development philosophy of the Government of Cameroon is "communitarian liberalism," characterized by five-year indicative investment plans and a mixture of private and public ownerships. Market forces are tempered by extensive Government regulation in areas sucn as price control, investment, interest rates and credit allocation, the latter under the framework of the franc zone system for Equatorial Africa. In general, the Government's macroeconomic policies have been prudent and Cameroon's GNP per capita (US$810 in 1985) is one of the highest in Sub-Saharan Africa. Due to the Government's emphasis on balanced regional development and strong central authority, the country has enjoyed exceptional economic and social stability, and the surge in oil revenues at the beginning of the decade was handled without major economic disruptions. 6. The past few years have been a period of transition. In November 1982, after almost 25 years in power, President Ahmadou Ahidjo resigned and his constitutional successor, Prime Minister Paul Biya, became President. President Biya consolidated his power in September 1983 when he was elected president of the sole political party and in January 1984 when he was confirmed as President of Cameroon in a national election. However, the country was shaken in April 1984 when a group of soldiers launched an unsuccessful coup attempt. Over past years, Mr. Biya has promised a more democratic style of government, more rigor in the management of public funds and greater social justice. The new Government is committed to economic liberalization, although still within the context of "'communitarian liberalism". It has also endorsed the objectives of preserving a strong agricultural base, maintaining food self-sufficiency, and building up social and transport infrastructures. It has expressed a strong interest in improving the efficiency of state enterprises, 'n some cases through privatization. Economic and Social Developments 7. In recent years Cameroon has registered a remarkable overall economic and financial performance. Growth averaged 6.9 percent per annum in the second half of the 197-6 and is estimated at about 9.1 percent per annum for the first half of the 1980s. Fixed investment, which was only 10 percent of GDP in the early 1960s, grew to an average of about 20 percent in the second half of the 1970s and to an estimated 25 percent in 1985 while remaining in line Aith the country's absorptive capacity. Domestic savings have been more than sufficient to finance domestic investment since the end of the 1970s, largely because of the rapid expansion of crude oil production and exports that started in 1979/80. The fact that Cameroon managed to accumulate substantial overseas balances reflects a prudence, rare among oil-exporting countries, in keeping public spending within reasonable bounds. Recourse to external borrowing has been limited, and the debt service ratio has consistently remained around 10 percent. 8. The good overall economic and financial performance of Cameroon hides, however, a number of structural problems. Export crops have not performed particularly well over the past five years due to deteriorating real producer prices accompanied by the migration of the younger rural  population to the cities and an apparent shift toward food crops. Manufacturing growth took place through protection policy and the establishment of an inefficient public enterprise sectoL accounting for about 7 percent of GDP, which is an increasing burden on the budget. The financial sector is underdeveloped and thus unable to intermediate efficiently public savings to private investors or to mobilize private savings, especially in preparation for the post-oil era. Although part of government oil revenue has been saved, an increasing portion is used to finance rapidly growing recurrent expenditures, an expansion of the agricultural support programs (including input subsidies), and increased assistance to ailing industrial public enterprises (including the servicing of their debts). 9. Although steady progress has been made in the well-being of the population over the past two decades, much remains to be done in the social sectors. Student enrollment increased considerably at all levels of the educational system, but the quality and efficiency of education deteriorated. Health-related indicators are on the low side, considering Cameroon's overall level of economic development. Life expectancy at birth is a low 53 years, the result of a high infant mortality rate due to inadequate health coverage, poor access to water supply, lack of sanitation services in crowded urban areas, and poor nutrition and health practices. 10. In 1981, about 40 percent of the rural population was considered to live in absolute poverty, i.e., with an annual per capita income of less than US$105. This may partly explain the heavy rural migration to Yaounde and Douala, where high average incomes fueled in part by the expenditure of increasing oil revenues give rise to expectations of employment in the formal sector under favorable conditions. In fact, conditions are not much more favorable in these cities since one quarter of the population is classified as absolutely poor. Development Prospects and Issuies II. The basic problem that Cameroon must address in the near future is the recent sharp downturn in oil prices. Since lower world prices have reduced the reserves which can be profitably exploited, Cameroon must absorb, within a period of a few years, not only a 15 percent cut in GDP, but a 45 percent drop in current revenues and a 50 percent cut in exports of goods and services. Fortunately, because of cautious policies and large financial savings, the Cameroonian economy is basically strong enough to deal with the new situation. Per capita private consumption has been growing rapidly in real terms so that some reduction will not necessarily become a hardship. However, while Cameroon is in a privileged situation because of its presently small external debt, its borrowing capacity is limited by the expected decline in export receipts. 12. Essentially, Cameroon's adjustment to the new situation will come through measures aimed at (a) reducing private and public consumption and, to a substantial extent, the investment rate, and (b) reorienting the economy toward exports. With respect to the first, private consumption  -4- growth should be sloved through fiscal and other measures. Simultaneously, current public expenditures, which considerably outstripped nominal GDP growth during the oil era, must be restrained and non-essential investments curtailed. While most of these measures would tend to offset budgetary losses in oil revenues, if well-designed they could also bring about lower real wages and a depreciation of the real exchange rate, which in turn would tend to redress the trade balance. However, far reaching actions for stimulating exports must also be undertaken. In particular, producer incentives for export crops must be substantially improved if the nearly stagnant sector is to play its role in partially offsetting the balance of payments impact of the drop of oil exports. Such measures would have to be coupled with increased institutional support to the agriculture sector. Moreover, incentives will also be required to orient industrial activities more toward exports through, among others, tax and tariff reforms. Finally, reforms in the financial sector will be necessary in the longer run if the financial system is to mobilize adequate private financial savings and intermediate their flow to more productive investments. 13. In the longer term, the major issue will be to cope with a fast- expanding population. Altbough Cameroon's population growth rate was 2.3 percent in the 1970s, it is accelerating and currently projected at 3.2 percent for the remainder of the century. The urban population is expected to triple by the end of the period. Providing meaningful employment opportunities to a sharply expanding urban labor force is and will remain a major challenge for the Cameroonian authorities. External Borrowing and Creditworthiness 14. Total public external debt outstanding and disbursed rose from US$371 million at the end of 1976 to US$1.7 billion at the end of 1985. Debt service payments rose from US$39 million in 1976 to US$286 million in 1985, while exports increased from US$700 million in 1976 to about US$2.3 billion in 1985. As of end-1985 the World Bank Group's share of the estimated total public and guaranteed private debt was 30.2Z; its share in total debt service payments was 16.2%. However, Cameroon's traditionally modest reliance on external financing has been followed, during the oil era of increased financial independence, by diminished recourse to external borrowing and some prepayment of foreign loans. Gross disbursements against public and publicly guaranteed external borrowing bave dropped from a peak of US$564 million in 1980 to US$188 million in 1984. Net transfers have fallen from a peak of US$389 million in 1979 to minus US$98 million in i985, When debt service payments exceeded gross disbursements. Increased borrowing will be required before the end of the decade to compensate for declining oil revenues. However, the debt service ratio, presently at below 10 percent, appears likely to remain below 15 percent for the rest of the decade. Cameroon is fundamentally creditworthy.  -5- PART II - BANK GROUP OPEn&TIONS IN CAMEROON 15. Bank and IDA commitments in Cameroon as of June 30, 1986 amounted to US$966 million equivalent and covered 48 projects: 22 in agriculture, 15 in transportation, 4 in education, 3 in public utilities, 1 small- and medium-scale enterprise project, 2 technical assistance projects and 1 urban project. Transport and agriculture account respectively for about 50 percent and 38 percent of these commitments. IFC had invested in eight enterprises, with total net loan/equity commitments of US$10.9 million. 16. Project implementation has, overall, improved over past years. The Government has generally shown willingness to collaborate with the Bank in finding solutions, but slow project processing and implementation delays are still a problem. In particular, the overall disbursement rate, which used to compare favorably with that of most other countries, has slowed down due to administrative bottlenecks, notably in the central procurement agency. Technical assistance is being arranged to help streamline procurement procedures, and a procurement seminar is scheduled for FY87. 17. The Bank's initial investment strategy in Cameroon was to support the Government's development efforts in three main directions: (a) strengthening and extending the road and rail trunk systems and improving the port of Douala; (b) raising agricultural output and exports; and (c) improving education. Until 1975, apart from one water supply project, Bank lending was concentrated in the transport, agriculture and education sectors. Since 1975, it has diversified into forestry, small- and medium-scale industry, urban development, technical assistance and telecommunications. For the immediate future, projects are being prepared in agriculture to support the Government's objectives of increasing agricultural exports, enhancing smallholders' productivity and improving the quality of rural life; in transport, to upgrade as well as expand and maintain the network; in urban development, to build up the local governments' capabilities to cope with fast growth; and in education/manpower training, to meet the rapidly increasing skill requirements of the economy. The Bank's Country Strategy 18. The Government wishes the Bank to maintain an active assistanec program in Cameroon to ensure a steady flow of resources for developm.Aat and to be the vehicle for technical assistance in project design and implementation and the source of advice for policy reform. The rationale for the Bank's program lies in the need to meet the country's increased and more complex development assistance requirements. To make up for a fast declining oil sector, the Government must make critical decisions concerning the removal of major development bottlenecks and the composition of a reduced domestic investment program. The Bank's major objectives are to help (a) increase the efficiency and international competitiveness of the productive sectors and those which directly support production; (b)  promote private initiatives and reduce the role of the parapublic sector in the economy; (c) strengthen Government policy-making, investment planning and implementing capabilities; (d) develop the country's human resource base; and (e) improve the living conditions of low-income greups. 19. To reach its objectives the Bank will combine lending, economic and sector work and technical assistance to the central and technical ministries. & financial sector analysis was recently produced with active Cameroonian participation, and strategy papers for other major sectors are being discussed with Government with a view to reaching broad agreement on a macroeconomic and sectoral policy framework. Key topics in this dialogue are the role of the public enterprise sector, reform of the financial sector, skilled manpower constraints and needs, and administrative reform. Official Development Assistance 20. Disbursements of official development assistance during the second half of the 1960s amounted to about US$45 million a year, mostly in the form of grants. France provided most of the assistance. In the 1970s, foreign aid increased to about US$90 million a year, with only one-fifth in the form of grants. Bank and IDA financing amounted to about 23 percent of total disbursements and the Bank Group became the major source of public assistance. Cofinancing has been featured in 25 of the 48 Bank-financed projects and is being actively sought for several projects under consideration to improve aid coordination and support a gradual shift to private financing. 21. In 1985, disbursements from private sources accounted for 10 percent of 'otal disbursements under public debt, down from 61 percent in 1982. Public external debt outstanding and disbursed as of December 31. 1985. amounted to US$1.7 billion, 20 percent of which was in the form of World Bank loans and 14 percent in IDA credits. By end-1985, Bank loans and IDA credits accounted for about 14 percent of debt service. PART III - AGRICULTURAL RESEARCH A. Background 22. Aware of the critical importance for Cameroon's future development to preserve a strong agriculture and of the need to address the problems induced by fast increasing urban food demand, Government continues to give priority to agriculture. Cameroon's considerable agricultural potential is only partially tapped. The varied topography, soils, and climate enable the couutry to grow a wide range of agricultural crops for local processing and consumption, as well as for export, predominantly in smallholdings, but also in large commercial plantations, medium-size estates, and cooperative farms. Two key Government goals are to increase agricultural exports and maintain food self-sufficiency despite an aging and slow growing rural population, and to stem the exodus of youths from  rural areas, by raising rural incomes and living conditions. These goals require increased productivity per hectare and farm worker. However crop yields and herd productivity have remained relatively low, partly because the many innovations proposed by agricultural research were unsuited to the socio-economic circumstances of the producers. The Government is emphasizing agricultural research as a means of increasing productivity. This is apparent in the budget allocations to the Institute of Agronomic Research (IRA' and the Institute of Livestock Research (IRZ) which bave increased at .n annual rate of about 30Z for IRA and 40Z for IRZ over the past seven years. The proposed National Agricultural Research project would be part of this effort, particularly geared to increasing the relevance of research to smaller farmers. B. The Institutions 23. The Ministry for Higher Education and Scientific Research (hESRES). In 1974, Government assumed direct responsibility for agricultural research which was previously carried out by specialized French institutions, which are still making a large contribution to agricultural research through the provision of expatriate researcbers and training. In 1979, the Government created the General Delegation for Scientific and Technical Research (DGRST), attached to the Office of the Prime Minister to manage scientific research. At the same time, crop and forestry research activities were grouped into one institute (IRA), and livestock and fisheries research into another (IRZ). In 1984, higher education and scientific and technical research activities were regrouped into a newly created ministry, the Ministry of Higher Education and Scientific and Technical Research (MESRES). MESRES administers not only the two agricultural research institutes, but also three other research institutes for human sciences, medicine and medical plant studies, and geology and mining research, as well as two national scientific committees concerned with environment and technology transfer. MESRES is responsible for the policy direction of its research institutes and chairs the Management Boards in charge of approving the respective IRA and IRZ program and budget proposals. 24. Agronomic Researcb Institute (IRA). The institute has expanded rapidly in recent years in spite of difficulties in recruiting a sufficient number of qualified scientists and technicians. Its staff of 2,400 includes 139 researchers and executives, of whom 48 are expatriates. IRA's headquarters near Yaounde controls administration and finance, accounting, and logistical services for a still incomplete network of stations and antennas managed by four regional centers. Although these services do not meet current needs, IRA's research work is often of value to the cash crop sub-sector; however, there is still a lack of adequate knowledge of the local small farm conditions. 25. Animal Research Institute (IRZ). As with agronomic research, animal research was essentially carried out by French institutes until IRZ was created in 1979. IRZ also has grown rapidly and is now responsible for all livestock and fisheries research. Its staff consists of 42 researchers  -8- (10 expatriates)-two and a half times more than in 1978/79-but many of the newly recruited staff are young and lack adequate training or practical knowledge of the traditional livestock sector. IRZ shares IRA's inadequate headquarters facilities. While considerable investment is being made in infrastructure, the need to upgrade staff and orient research toward pastoralism and mixed smallholdings is becoming more acute. C. Agricultural Research 26. The major problems related to agricultural research in Cameroon have been: (i) that the programs have lacked overall coherence and tended to reflect the intellectual interests of researchers rather than needs of local, smaller farmers and, therefore. have been too focused on technological problems of large-scale producers and on exotic rather than local livestock; (ii) inadequacy of research installations; (iii) inadequate numbers of qualified researchers and technicians; (iv) cumbersome administrative procedures of IRA and IRZ; and (v) inadequate linkage between these organizations and field level agricultural extension staff and farmers. 27. Agronomic Research. The country is divided organizationally into four regions for crop research, which largely follow the major ecological zones. Each region is, or will be, provided with a hierarchical network of a research center controlling research stations and antennas (Map 17514). In the past, the overall program was essentially a compilation of the activities and interests of individual researchers. The result was an emphasis on the production of scientific papers and research findings which had little applicability to the conditions of the average smallholder and, therefore, rarely interested the extension services. However, important efforts have been initiated to improve program preparation and to reorient research programs to provide high quality research applicable to food crops and to accelerate the dissemination of the results to farmers. A beginning has been made in establishing a well-defined research programming process for agronomic programs, such as cereals and rootcrops. A total of 22 such programs now exist which are crop and crop group oriented, including a small forestry program. National coverage is good, but thinly spread. More results with potential applicability to smallholders are emerging. However, performance remains patchy and weaknesses still exist. Physical infrastructure remains inadequate for the current needs and, although review processes are being improved, there are still inadequacies in external review of each region's research activities and in overall coordination and programming of research activity. 28. Animal Research. The main emphasis has been on beef and dairy cattle through the introduction and testing of exotic breeds. However, the high level of management required by this vulnerable stock has occupied much of the attention of the research staff, to the detriment of more relevant research. Also, the specialized breeds (for meat or milk) on which research has concentrated, do not interest the pastoralists since they need hardy, multi-purpose animals. Promising results have been obtained in pasture research, but grazing trials on farmer's fields have  -9- yet to be started. The pig and poultry research program concentrates on intensive rearing for the emerging commercial production sector. Thus, little of the preaent research is relevant either to the actual situation in the field or to the needs of the livestock owners. 29. Facilities. Although recurrent funding for research has been dramatically increased, physical facilities at most of the field stations are inadequate to support the expanded programs. Field stations lack accommodations for visiting staff and sufficient housing for staff at all levels, thus inhibiting both recruitment for remote research stations and staff reassignment, and hampering on-site supervision by technicians. Some existing scientific and field equipment is old or dilapidated and there is insufficient transport to provide mobility for the researcb staff. This latter problem is exacerbated by the lack of radio communications between the centers end their stations, which results in unnecessary travel. There is also a critical need for improved headquarter facilities for IRZ, and for upgraded analytical and documentation facilities. 30. Staffing. The Ministries of Agriculture and Livestock who have control over the careers of most graduate agriculturalists assign only a handful of them to research, while, the lack of an attractive career profile for technicians acts as a deterrent for potential recruits. However, there has been some recent improvements in the number of graduates being made available to research and the institutes have been able to recruit directly for fixed-term contracts. To attract technicians, a statute is being formulated by MESRES which provides for bette-r career prospects. A problem still ramoins, however, with the number of administrative staff. The low status and reward system inherent to the position do not attract staff witb the desired qualifications and experience. 31. Organization. IRA and IRZ are not organizationally and financially independent. Their research programs, organization, funding, personnel and information policies, and management structures are determined by various ministries. For the execution of work programs and budgets, these institutes must follow Government administrative procedures which are inappropriate for efficient research management. This leads to sub-optimal programs, considerable delays in execution and, sometimes, a waste of funds. 32. Extension. Responsibility for extension, particularly in crop production, is divided among several agencies, and there is no structure for ensuring effective research-extension communication. The major role in crop extension lies with parastatals, generally built around one major activity,.e.g., cocoa, coffee, cotton, rice etc. Most of these report to the Ministry of Agriculture (MINAGRI), but some report to the Ministries of Plan or Commerce. The weak interministerial links, typical of Cameroon, adversely affect communication between these agencies and the research establishment. Under the National Cereal Research and Extension (NCRE) Project, supported by USAID, a Testing and Liaison Unit (TLU) has been established to facilitate such exchanges, and this effort would be expanded  - 10 - in the proposed project. Livestock extension rests entirely with the Ministry of Livestock, Fisheries and Animal Industries (MINEPIA). However, its provincial delegation and field staff are mostly concerned with animal health and few have any knowledge of livestock production or husbandry. As a consequence, there has been little effective contact between MINEPIA and IRZ, although steps have recently been taken to set up regular meetings at the regional level. E. The Bank's Involvement and Strategy in Agricultural Research 33. Since 1967 the Bank Group has been involved in 22 agricultural projects, amounting to US$369 million in loans and credits. Much of the Bank's earlier lending was for nucleus estate smallholder plantation projects. Since the mid-1970s, smallholder projects and regional rural development projects integrating productive and infrastructural components have been given priority. The Bank is now moving toward sub-sector projects which would address key issues identified as bottlenecks to achieving productivity growth, such as research, input supply, extension, marketing, and credit. Most past projects have included adaptive researcb components, which were most useful but contributed little to national research. It became clear that a free-standing national research project was an important building block in the Bank's program of assistance to agriculture in Cameroon. 34. The project is in line with the Bank's agricultural strategy in Sub-Saharan Africa, which gives high priority to agricultural research. The project would complement other Bank-assisted agricultural projects by developing a range of improved techniques for crop and livestock production, and would facilitate the implementation of the research components under these projects. The project would also aim at increasing coordination with bilateral programs and at strengthening the links between the Cameroonian agricultural research institutes and the Consultative Group on Internati.onal Agricultural Research (CGIAR) network of international centers. PART IV - THE PROJECT A. Project Origin and Objectives 35. The proposed project was identified in May 1981 and prepared in February 1983 by World Bank/FAO Cooperative Program missions. It was appraised by a Bank mission in May 1983. As a result of successive cabinet reshuffles (including the creation of MESRES in 1984) Government was slow in reacting to Bank's proposals, but the project appraisal was updated by a mission in June 1985. Throughout project preparation and appraisal, close coordination was maintained with external assistance agencies, especially French and U.S. agencies (paras. 23 and 32). Negotiations were held in Washington, (July 28 - August 1, 1986). Details of the project are in the  - 11 - Staff Appraisal Report No. 4796-CM, dated October 14, 1986, which is being circulated separately. 36. The project aims at reorienting and strengthening research to enhance its effectiveness and relevance. It emphasizes research on small- holder food crop production systems, as development of suited technologies has lagged and hampers the implementation of Government's agricultural programs. It pays particular attention to adapting these technologies to small farmers' and herders' circumstances and to accelerating the transfer of technology to them, with a view to raising their productivity and incomes. The Project would emphasize improved facilities, research methods, management principles, planning, and training activities that would reinforce the effectiveness of staff and research facilities and would include investments for specific needs. B. Summary Description 37. The project would have a nationwide coverage and would reorient the emphasis of the IRA and IRZ research programs towards smallholder production systems and expand the capacity of these institutes to undertake such research programs through actions at three levels: (a) within the institutes; provision of essential infrastructure, equipment, communications and other facilities at field stations; provision of technical assistance for critical aspects of priority research activities such as root crop nematodes and small livestock nutrition; increase in the number of Cameroonian staff, particularly at the technician level and expanded in-service training programs; and provision of technical assistance for improvement of research programming and management, and of administration and control systems; (b) support of the researcb system through provision of basic computing and documentation facilities serving both institutes; and (c) measures to improve botb overall research programming and supervision, and dissemination of research results. C. Detailed Featuics 1. Agronomic Research. 38. Regional Research Facilities. To assist IRA in emphasizing food crops and in adopting a systems approach to research, the project would strengthen and expand the relevant research centers and their stations and antennas, by (a) creating a new center at Foumbot to serve the west and northwest regions; (b) establishing two new field trial grounds at Minkomayos for the Nkolbisson Center and at Mouda for the Maroua Center; and (c) upgrading the other regional agronomic research facilities. Specialized equipment for a textile laboratory at Maroua and a plant pathology laboratory at Ekona would also be provided. Forestry research would be selectively strengthened at Nkolbisson, Maroua, and Foumbam through provision of some additional infrastructure and facilities, and funds would also be earmarked to support the research activities of the -eeds units. The estimated base cost of these facilities is US$12.4 million.  - 12 - 39. Staff and Expertise. Critical gaps in IRA expertise would be filled by provision of a full-time specialist in nematology for the Nyombe Center. In addition, the project would finance 30 months of short-term consultant inputs in soil and fertilizer and pest and disease problems, mechanization, and rural sociology, where full-time expatriate positions are not justified. Provision would also be made under the project for the creation by IRA of 20 additional positions for Cameroonian researchers and executives at the regional Centers, 11 of which would be agronomists working on food crops and three sylviculturalists, and 54 positions for research technicians and administrative assistants, 84 for skilled support staff and 74 unskilled support staff. 40. Provision would also be made for the upgrading of agricultural research management and methods through an institutionalized training program. Training seminars would be organized annually for both IRA and IRZ (para. 43) and conducted by organizations such as the International Service for National Agricultural Research (ISNAR), and the Pan African Institute for Development/Cameroun (PAID/CA) in Douala. Provision would be made for the formal post-graduate training of selected researchers and experienced technicians respectively. Study tours would be organized to help senior staff to keep abreast of new research techniques, especially crop systems research. Finally, local training wiould be provided to upgrade the specific skills of technicians and senior support staff. To ensure the adequate programming of training, assurances were obtained at negotiations that a five-year training plan would be established by April 30, 1987, together with a detailed program for 1987/1988; annual programs would be prepared thereafter. Both the plan and the programs would be submitted to the Bank for comments. 41. Research Management. The capacity of the IRA Directorate to coordinate and manage this expanded research program would be strengthened under the project through the international recruitment of a research management specialist and the creation of 2 biometrical unit and of the joint computer center. The creation of an editorial and reporting service, headed by an internationally recruited scientific editor, would assist in the preparation of technical documents and IRA's and IRZ's documentation services would be expanded into a joint IRA/IRZ library/documentation center (para. 45). IRA and IRZ administrative and financial management would be improved through training, and revised procedures. These would be based upon an organization and management study to be carried out by ISNAR. Assurances were obtained from Government that the recommendations of the study would be sent to the Bank for review and agreement on a time-bound implementation program would be reached by December 31, 1987. The employment at post of either the IRA research management specialist or the IRZ research management specialist, whichever occurs first, would be a condition of loan effectiveness. Whichever of these alternatives does not occur first will be a condition of loan disbursement for that project component to which it relates.  - 13 - 2. Animal Researcb 42. Bambui and Wakwa Centers. To assist IRZ in reorienting its research program towards the needs of local pastoralists and small-scale livestock producers, a livestock systems research team would be established at each center to facilitate the adoption of the new research objectives. It would concentrate on defining the key constraints of traditional producers and on developing improved livestock management systems which they can readily adopt. Both centers would receive additional vehicles and equipment, and their infrastructures (including housing) would be upgraded and expanded, at an estimated base cost of US$1.1 million. 43. Staff and Training. Provision would be made under the project for 8 additional positions for Cameroonian researchers and executives, 13 for technicians and administrative assistants, 14 for skilled support staff and 13 for unskilled support staff. Training seminars would be carried out to upgrade agricultural research methods and management (para. 40). Study tours would be organized to get acquainted with the systems approach to livestock development. Finally, fellowships would be provided to selected technical support staff to improve their capacities in laboratory and field recording techniques. To ensure the adequate programming of staff training, assurances were obtained at negotiations that a five-year training plan would be established by April 30, 1987, together with a detailed program for 1987; annual programs would be prepared thereafter. 44. Management. The research management and technical capacity of the Directorate would be strengthened under the project through the creation of a Technical Assistance position for a livestock research management specialist (para. 40). A TA position for a biometrician would also be created to initiate the storage of IRZ research data and provide advice on the statistical aspects of livestock systems research and trials. In addition, the project would provide for 45 man-months of short-term consultancy to address problems in specific fields, e.g., animal traction, mineral nutrition, forage seed agronomy, and sociology. 3. Joint Facilities 45. In order to support these research programs, there is need for improved computer and documentation services. Since these facilities can be readily shared, the project would establish a joint library and documentation center and one joint computer center. Besides saving resources, the development of these joint s'arvices would help foster collaboration between the two arms of the agricl-ltural research system. 46. Computer Center. The joint computer center would be equipped with a mini-computer and the ancillary hardware compatible with the IRA and IRZ network of regional micro-computers. It would be headed by a computer specialist, initially an internationally-recruited expert, and later by a Cameroonian counterpart who would have received graduate training overseas in computer technology. Although the center would primarily serve as a  - 14 - data bank, it would also handle meteorological data, statistical and economic computations, and the institutes' payroll, bookkeeping and inventory control. 47. Library and Document -ion Center. Provi-sion would be made under the project to expand the exis-ng IRA and IRZ documentation services into a central agriculture library and documentation center at Nkolbisson, equipped to access international data banks and to carry appropriate reference material. Four regional satellite documentation centers would also be established. Assistance in initial management of the facilities would be provided by a TA librarian. The finalization of an agreement between IRA and IRZ, in a manner satisfactorily to the Bank, governing the joint use of the computer center and library/documentation center would be a condition of disbursement for the construction and equipment of these facilities. 4. Research Programming and Dissemination 48. Project Coordination. The Director of the Department of Scientific and Technical Research (DRST) of MESRES would be responsible for the coordination of the project with other ministries and agencies involved, and for undertaking the planning and programming of agricultural research. DRST's major role would be to ensure that the institutes research programs are consistent with the Government's Agricultural strategy and specific research policies. Therefore, under the project, systematic procedures for the review of research activities would be introduced, a well articulated National Agricultural Research Program (NARP?) prepared and a review system established, including regular technical audits of regional centers. It was agreed at negotiations that Government would submit a draft of the NARP to the Bank for review not later than December 31, 1988. 49. The emphasis would be on regionally developed research programs to meet identified local needs, but with the ultimate coordinating responsibility remaining with the DRST. In this context, emphasis would be on increased autonomy for regional research centers. An in-depth review of each region's research program would be carried out every two years. To accomplish this task a Technical Audit Committee (TAC) would be established for each institute, chaired by the Director or his Deputy. This committee would be joined by a regional team including representatives of local parastatal enterprises and farmers for the review of regional research programs. Assurances were obtained at negotiations that the two TACs would be established by June 30, 1987. As part of their contribution to the drafting of the NARP, these TACs would, no later than June 30, 1988 perform a diagnostic review of all IRA and IRZ centers and an in-depth review of each center every other year. The summary reports of these reviews would be forwarded to the Bank within three months after the completion of the review. 50. The Extension Interface. As a key element in the research-extension structure, the project will expand the effort to create  - 15 - TLU's (para 32). Three units would be assigned respectively to the Foumbot (West), Nkolbisson (center-south) and Ekona (Littoral) research centers, to complement the existing unit at Bambui (North-west). Each unit would be composed of an internationally recruited extension agronomist and an agro-economist, and IRA counterpart staff. The TLUs would play a leading role in identifying farmer problems and constraints hindering increased production and would have a vital input to regional research programming. As research results become available, the TLU staff would also conduct on-farm testing in collaboration with NCRE, IRA researchers and extension agency personnel. They would be responsible for evaluating the field trials and recommending any further studies or modifications. 51. Technical Assistance Under the project a total of 43 man-years of long-term internationally recruited technical assistance would be provided, of which 26 man-years would be for research programming and specialized support services and 17 man-years for disciplinary and systems research. Approximately 21 man-years of this assistance would be provided by ODA, and 6 man-years by GTZ, both on a grant basis. In addition, the project would provide for 147 man-months of short-term consultancies for specific problems for which a full-time position would not be justified. To ensure the timely start of project activities, Government agreed at negotiations to employ specialized agencies to recruit TA staff and short-term consultants. D. Pro ect Cost Estimates and Financin 52. Cost Estimates. Project costs cover incremental research activities as the project either expands, strengthens or reorients present research activities, they do not cover current operations. These incremental costs for the five year implementation period (1987-1992) are estimated at CFAF 15.6 billion (US$43.2 million) with a foreign exchange component of about 44%. The net-of-tax project cost is estimated at US$39.4 million. Cost estimates are based on mid-1986 prices and include no physical contingencies on local wages and salaries, 5% on expatriate assistance and consultancy, and 10% on all remaining investments and operating expenses. Price contingencies have been computed at 6.8% for 1987 and 1988 and at 7.0%, 7.1% and 4.0% respectively for 1989-91 the following three years for the foreign exchange component of costs, and at 12% throughout for their local currency component. Contingencies amount to approximately 29% of base costs. 53. Proposed Financing and Budgetary Implications. The proposed IBRD loan of US$17.8 million would be made to Government for a 20 year period, including 5 years of grace, at the standard variable interest rate. Cofinancing by ODA and GTZ would be in the form of grants of US$1.6 million equivalent and US$0.8 million equivalent, respectively. The remaining costs (US$23.0 million) would be borne by Government. All funds would be passed on to MESRES budget for deployment as follows: IRA, US$29.9 million; IRZ, US$10.0 million; and joint services, US$3.3 million. ODA financing would cover technical assistance (US$1.2 million), supporting equipment including vehicles, micro and mini-computers, photocopy equipment (US$0.2 million),  - 16 - and training (US$0.2 million). The GTZ grant would cover technical assistance (US$0.7 million) and equipment (US$0.1 million). The fulfillment of all conditions prior to the ODA and GTZ effectiveness would be conditions of effectiveness of the IBRD loan. Assurances were obtained at negotiations that Government funding be provided to IRA and IRZ at the beginning of each fiscal year as separate allocations sufficient to cover the approved budgets. Following project completion, Government would continue to fund IRA and IRZ on a permanent basis, taking into account the recurrent project costs. In addition a condition of effectiveness would be that Government had deposited in separate project accounts for IRA and IRZ an amount equivalent to six months of operating expenditures for the project. Following project completion, annual MESRES budget appropriations for IRA and IRZ would be adjusted to take account of recurrent project costs on a permanent basis. The project would strengthen IRA and IRZ accounting and financial control services to ensure that they are fullv capable of managing incremental project funds under the project (paras 43 and 46). E. Procurement and Disbursement 54. Procurement. Procurement arrangements are summarized in the following table; figures in parentheses show respective amounts to be financed by IBRD.  - 17 - AMOUNT AND METHODS OF PROCUREMENT (US$ million) Total Procurement Methods -- Project Items to be Procured ICB LCB Others N/A Costs 1. Civil Works - 12.8/ - 12.8 (6.4) (6.4) 2. Vehicles 1.6 0.4 0.2 L 2.2 (0.9) (0.2) - _ (1.1) 3. Equlpment 1.9 b/ 0.4 0.4 c/ 2.7 (1.0) (0.3) - - (1.3) 4. Furniture - 1.3 - - 1.3 (0.6) (0.6) 5. Techoical Assistance and Consultancy Services - - 6.0 - _ 6.0 (4.1) (4.1) 6. Training/Fellowships - - 4.5 t 4.5 (4.3) (4.3) 7. Local Salaries/ e Operating Costs - - - 13.7 - 13.7 Total 3.5 14.9 11.1 13.7 43.2 _~- -- - (1.9) (7.5) (8.4) (17.8) a/ Cimil irks for buldings and odtr nfrasttures wo'd be aired tenox local Ccqpetitive Biddig (B) sinc it Is unllhly that they vzld attract foreign bidders becmes of lo unit cost, resnte locatin andphmsig over time. b/ Cotracts of US$100,000 or nire, uamnly for inported equizznt and vebicls, vould be warded tbrigx International Ccpetit