Mali - Livestock Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 6846 PROJECT COMPLETION REPORT MALI LIVESTOCK PROJECT (Credit 538-MLI) June 25, 1987 Western Africa Projects Agriculture C Division This document has a restricted distribution and may be used by recipients only in the pefornnance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  ABBREVIATIONS CBPI : Contagious Bovine Pleuro-Pneumonia CV : Curriculum Vitae DCA : Development Credit Agreement ERR : Economic Rate of Return FAC : Fonds d'Aide et de Cooperation FAO/CP: Program Cooperation FAO/Banque Mondiale FCFA : Franc CFA GR : Genie Rural (Rural Engineering Department) IDA : International Development Association (The Bank) IEMVT : Institut d'Elevage et de Medecine Veterinaire des Pays Tropicaux IER : Institut d'Economie Rurale ILCA : International Livestock Center for Africa ODEM : Operation de Developpement de l'Elevage de la Region de Mopti OED : Operation and Evaluation Department of the World Bank OMBEVI: Office Malien du Betail et de la Viande PCR : Rapport d'Ach&vement (Project Completion Report) PY : Project Year RMWA : Resident Mission in Western Africa of the World Bank SAR : Rapport d'Evaluation (Staff Appraisal Report) SEDES Societe d'Etudes pour le D6veloppement Economique et Social t : tons TOR : Mandat (Terms of Reference) WAN : Western Africa Regional Office of the World Bank  THE WORLD BANK Washtngton, D.C. 20433 U.S.A. Offc* of Oect(W-Cewal Opetatums ivahMtbo June 25, 1987 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Complotion Report on Mali Livestock Project (Credit 538-MLI) Attached, for information, is a copy of a report entitled 'Project Completion Report on Mali Livestock Project (Credit 538-MLIL" prepared by the Western Africa Regional Office. Further evaluation of this project by the Operations Evaluation Department has not been made. Attachment This document has a restricted distribution and may be used by recipients only in the peformance of their ofmcil duties. Its contents may not othenrs be disclosed without World Bank suthoufmtion.  FOR OMCIL USE ONLY MALI LIVESTOCK PROJECT (Credit 538-MLI) PROJECT COMPLETION REPORT Table of Contents Page ABBREVIATIONS PREFACE i BASIC DATA SHEET ii EVALUATION SUMMARY ............... ..........c...... v I.INTRODnXTIOIN.* ...................................... II. PROJECT FORMULATION AND PROCESSING................O.....O..03 A. Origin and Processing....... ............................3 B. Project Description and Objectives .......................5 I-I. PROJECT IMPLEMENTATION.. .............00.......................... 7 A. Start-up ........................ B. Revisions of Project Components ...........................8 C. Implementation ........... ...... ... ll D. Procurement . . . . . ... . . ..................... l9 E. Project Cost ............................................ 20 F. Financing........................................... 22 G. Disbursements ..... 0000o.00*.......0..o.o....00000 00...0o23 H. Covenants ..............eoooo.............o.oo.... . .023 IV. INSTITUTIONAL PERFORANCE. .................................. 24 A. Institutional Design ... 000000000000000000.0000000000000024 B. Government's/ODEM's Performance ...o00 0 o00..00000000..o24 C. Extension and Supervision 0000000000000000000000.0.000.0.26 D. Technical Specialists ..................................... Eo Training.......................................oo. 27 F. Technical Studies..........................8 G. Monitoring and Evaluation (M&E)o..oo ................ ooo oo29 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.  V. PROJECT IMPACT AND OPERATING PERFORMANCE ................ 30 A. Production Benefits. ........... . *o 30 B. Institution Building ..... C. Basis for Future Lending Operations....,.. ......32 VI. FINANCIAL AND ECONOMIC RESULTS................ s.....33 J VII. BANK'S PERFORMANCE.e...........o.... ..33 A, Project F,rmulation and Objectives.................33 B. Supervision ..... VIII. CONCLUSIONS AND RECOMMENDATIONS ........................37 A . Overview .*........X.X.*..*..---.v@3 B. Lessons Learned .......37 Annex - Actual and Appraisal Cumulative Disbursements MAP: IBRD No. 11004R  - i - PROJECT COMPLETION REPORT MALI LIVESTOCK PROJECT (CREDIT 538-MLI) PREFACE This is the Project Completion Report (PCR) of the Livestock Project in Mali, for which Credit 538-MLI in the amount of US$13.3 million was approved on December 2, 1974. The original Loan Closing Date was December 31, 1979. The final disbursement was made on August 20, 1985. The project was the fourth credit for agriculture and the first for livestock development in Mali and was prepared by RMWA. It was followed by the Mopti Area Development Project 'Credit 1597-MLI) which was approved on May 21, 1985. This PCR was prepared by the West Africa Region following a mission to Mali from June 2 to 13, 1986 and is based in part on a Project Completion Report prepared by the project implementing agency (ODEM), a review of the Staff Appraisal Report 'No. 538a-MLI), the President's Report (No. P-1516a-MLI), the Credit Agreement of April 11, 1975, relevant Bank files including correspondence with the Borrower, internal Bank memoranda, minutes of the Board's discussions, Bank supervision reports, project progress reports prepared by the Borrower as well as interviews with officials both in the Bank and in Mali who have been associated with the project. The draft report was sent to the Borrower in April for comments. However, no comments have been received. This report has not been subjected to audit by OED.  - ii - Page 1 PROJECT PERFORMANCE AUDIT REPORT 1(ALI - LIVESTOCK PROJECT - CREDIT 538-MLI Basic Data Sheet Appraisal Actual or Actual as % of KEY PROJECT DATA Estimate Estimated Actual ALuraisal Estimate Total Project Cost (US$ million) 17.3 19.0 110 Total Project Cost (MF billion) 7.8 8.9 114 Credit Amount (USS million) 13.3 13.3 100 Date Board Approval 02/11/7S Date Loan Agreement 04J11/75 Date Loan Effectiveness 07/24/7S 07/24/7S Closing Date 12/31/79 06/30/84 Economic Rate of Return (%) 51 NA Financial Rates of Return (%) NA NA Institutional Performance satisfactory Number of Jobs Created 400 NA CUMULATIYE DISBURSEMENTS FY76 FY77 FY78 FY79 FYso FY8l m2 FY83 PY84 FV85 Appraisal Estimate (US$ million) 4.7 7.8 10.4 11.8 13.3 Actual (US$ million) 0.2 1.1 3.9 5.9 7.9 9.6 ll.S 12.4 12.8 13.3 Actual as % of EstLqate 4.0 14.0 37.0 S0.0 59.0 74.0 86.0 93.0 96.0 100.0 Date of Final Disbursement: August 20, 1985  - iii- Page 2 OTHER PROJECT DATA BORRNWER-. Republic of Mali EXECUTING AGENCY: Opdration de Developpeoent de l'Elevage de Mopti (ODEM) ON-LENDING INSTITUTION: N.A. FISCAL YEAR OF BORROWER: January 1 to December 31 CURRENCY EX1ANGE RATES: Average Exchange Rates V/ Used at Appraisal 1975 US $1 a CFAF 225 2/ 1975 US s1 - CFAF 214 1976 US S1 - CPAF 239 1977 US $1 - CPAF 246 1978 US $1 - CFAF 226 1979 US S1 - CFAF 213 1980 US S1 - CFA? 211 1981 US S1 - CPAF 272 1982 US $1 - CPAF 329 1983 US $1 - CFAP 381 1984 US $1 - CFAF 437 1985 US $1 - CFAF 449 I/ From International Financial Statistics published by IMF I/ CPAF 1 - MF 2 RELATED PROJECTS: Preceding Projects Follow-Up ProJects Name Mopti Rice Drought Rel Int Rural Rice II ODIPAC Mopti ADP Forest SUD II Credit Number 277-MLI 443-MLI 491-MLI 753-MLI 1174-MLI 1597-MLI 883-MLI 1415-MLI Credit Amount (US$ million) 6.9 2.5 8.0 15.0 6.5 19.5 4.5 25.9 Date Bd Apprvl 1972 11/1973 07/74 11/77 4/30/82 5/21/85 5/25/79 1/23/84  MISSION DATA Date No. of Man-days Specializations Performasce Types of mod./Yr.) Persons in Field Represented a/ Rating b/ Trend ce Problems dl Identification - RHWA 10/1970 Preparation - RMWA + FAC financed SEDES and IEMNT studies Preparation (FAO/CP) - Appraisal - IDA 02/1974 6 155 Subtotal Supervision 1 04/75 1 3 A 2 1 M Supervision II 09/75 1 4 B 2 1 T Supervision III 02/76 1 4 D Supervision IV 03/76 1 7 B Supervision V 06/76 2 21 A,B 2 1 T,M Supervision VI 11176 2 25 A,B 2 1 F,T Supervision VII 05177 3 30 2A+1C 2 2 T,M Supervision VIII 08/77 1 7 A 2 2 F,T Supervision IX 11/77 2 20 A,D - -- Supervisic X 12/77 1 7 A,C - - T,M,F Supervision XI 03/78 2 46 A,D 3 3 M,F,T Supervision XII 07/78 l 6 D Supervision XIII 10/78 2 30 A,D 3 3 M,f,T Supervision XIV 03/79 1 21 D 3 1 M,T,O Supervision XV 10/79 1 20 D 3 2 M,T,0 Supervision XVI 02/80 2 12 D,D - - Supervision XVII 06/80 3 42 D,D,C 3 2 M,T,P Supervision XVIII l0/80 2 16 D,C 2 1 T Supervision XIx 01/81 1 10 D - Supervision XX 04/81 1 11 D 2 1 F,T Supervision ZXI lO/81 1 8 A 2 2 F,T Supervision XXII 06/82 2 23 D,A 2 1 F Supervision XXIII 04/84 1 12 A 2 1 F Subtotal aJ A Agriculturalist; B Agric. Economist; C - Financial Analyst; D Tech. Specialist I/ 1 no or minor problems; 2 - moderate problems; 3 - major problems c/ 1 = improving; 2 - stationary; 3 - deteriorating d| F Financial; M - Managerial; T - Technical; P - Political; 0 - Other  PROJECT COMPLETION REPORT MALI LIVESTOCK PROJECT (CREDIT 538-MSI) EVALUATION SUMARY Introduction 1. Tlhis was the first livestock project the Baik financed In Mali. It was preceded by three credits for agriculture which had extended some assistance to the veterinary service. In 1970 the livestock population included 5.4 million cattle and about 11 million sheep and goats. Fifteen to twenty percent of the cattlet were lost during the 1972173 drought. An international emergency effort was launched in an attempt to relieve some of the effects of the drought on the livestock industry. Small, short-ternm projects were financed, including the IDA-finnmced Drought Relief Fund Project. The effects of the 1972/73 drought, howeverv spurred recognition of the need for long term projects aimed at more rational land and pasture use in the Sahelien Zone and development of more efficient beef and milk production in parts of Mali. Responding to this need, the Bank's Regional Mission in West Africa identified the project in 1970 and also prepared it. The appraisal followed in January/February 1974, and the credit was approved in February 1975. Objectives 2. The project's objectives were to assist rural poor in particu- lar pastoralists in the 5th Region and to rebuild their ecologically fragile resources especially after the drought of 1972173. It was to help about 100,000 pastorallst families by rationalizing the use of land and water. The project was designed to (a) introduce livestock exten- sion services and grazing control, (b) provide improved veterinary services and training, (c) assist in the construction of water points for stock watering, an abbatoir, livestock markets, and a pasture trial station, ard (d) assist in the preparation of a livestock development plan for the whole of the 5th Region and of a follow-on project. Total project costs were estimated at US$17.3 million. The IDA credit of US$13.3 million was to be disbursed over four and a half years. Implementation Experiznce 3. The project was expected to begin In July 1975 and to be com- pleted by June 1979. However, the project closing date, originally set at December 31, 1979, had to be extended three times, the final closing  - vi - date being June 30, 1984. This interim phase of four and one-half years nearly linked the project to the now ongoing Mopti Area Development Project. Final disbursement was made in August 1985. Total project cost increased by local expenditure during the interim phase and brought Government's participation from 20% (appraisal estimate) to 26.5% while the Bank's credit remained unchanged at US$13.3 million of total project costs of US$19 million (actual) against US$17.3 million (appraisal estimate). 4. The proposal that pastoralists manage their natural resources and control grazing made the projecst innovative and risky. Risks were taken into consideration when designing the project. However, two non- livestock specific factors prevented the project from attaining all of its objectives: (i) the late (only towards the end of the interim phase) discovery of adequate groundwater resources for stock watering, which delayed the formation of pastoral associations and pasture management; and (ii) the unpredictable catastrophic drought of 1983184. The groundwater resources crucial to project success should have been more carefully appraised, or re-appraised when the project was classified a problem project in April 1978 (para. 3.14). Results 5. Production figures, measured by livestock marketing and slaughter data, had increased prior to the 1983/84 drought, and it appears that the project had positive financial and economic results until the recent drought in 1983/84 (paras. 5.01-5.03). The successful veterinary component of the project was largely responsible for this. Even were sufficient quantifiable informatiorn available (para. 4.23) rates of return - which have not been calculated - would remain questionable compared to those calculated at appraisal for the entire project. Sustainability 6. The implementing agency, ODEM, recognized by Government and pastoralists for its technical assistance, was instrumental in the reconstitution of the livestock population in the 5th Region after the drought. Its organization and re-organization, to become an effective agency, took far longer than expected, yet its experience is important to the continued formation of pastoral associations and their participation in development for on-going and future lending operations (paras. 4.01-4.09). This experience led to a follow-on, livestock component in the Mopti Area Development Project (Credit 1597-1LI).  - vii- Findings and Lessons 7. Lessons to be learned from the project includet (a) The project corresponded to the Bank's and the Borrower's objectives. Its possible risks were taken into considera- tion. However, more intensive project preparation and especially hydrological testing and socio-economic studies would have permitted correct pre-project assessments. A project duration of ten years rather than five should have been considered from the start to allow long term planning and continuity. More intensive prepitration would also have prevented overly optimistic assumptions. (b) Local institutions responsible for pre-investment studies need to be assessed at appraisal or early supervision. Their need for outside assistance can become crucial for project implementation -ind the preparation o