Somalia - Semi-mechanized Rainfed Agriculture Pilot Project

Documet of The World Bank FOR OFmFCIAL USE ONLY C.q /OY-90 Report No. P-4474-SO -4 REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED SDR 10.6 MILLION (US13.4 MILLION) CREDIT TO THE SOMALT DEMOCRATIC REPUBLIC FOR A SEMI-MECHANIZED RAINFED AGRICULTURE PILOT PROJECT March 12, 1987 This document has a retricted distribution and may be used by recipients only in the perrormance 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 US$ 1.00 (at time of appraisal - = So.Sh. 70 (official rate) June, 1986) So.Sh. 152 (free market rate) US$1.00 (January 1987) So.Sh. 91.4 (official rate) = So.Sh. 135 (free market rate) W4EIGHTS AND MEASURES 1 Hectare (ha) = 10,000 m2 1 Square Kilometer (km) = 100 ha 1 Metric Ton (mt) = 1,000 kg ABBREVIATIONS ADC - Agricultural Development Corporation AFMET - Agricultural Farm Management and Extension Training (Project) ARI - Agricultural Research Institute ASAP - Agricultural Sector Adjustment Program AWP - Annual Work Program CARS - Central Agricultural Research Station FEA - Field Extension Agent FMU - Farm Management Unit GOS - Government of Somalia ITCZ - Inter Tropical Convergence Zone MOA - Ministry of Agriculture ONAT - Organizzazione Nazionale Agricultura Trattore (Government Tractor Hiring Agency) PIU - Project Implementation Unit SDA - Settlement Development Agency SOE - Statements of Expenditure SMR - Semi-Mechanized Rainfed T and V - Training and Visit System (of Extension) WFP - World Food Programme FISCAL YEAR January 1 - December 31  FOR oMcL4 USE ONLY SOMALIA SEMI-MECHANIZED RAINFED ACRICULTURE PILOT PROJECT Credit and Project Summary Borrower: Somali Democratic Republic Beneficiary: Ministry of Agriculture .mount: SDR 10.6 million (US$ 13.4 million equivalent) Terms: . Standard Cofinancing: US$ 0.1 million equivalent in food commodity aid from the World Food Programme. Project Description Objectives: This project is a continuation of the pilot field trials started at Kurtun Waarey and Sablaale in 1981 to develop an improved rainfed agricultural technology for Somalia's semi- arid zones. Overall, the project aims to put in place a technical and organizational system as part of a larger strategy which includes irrigation, livestock, health and range development projects. The project would (i) refine and improve semi-mechanized rainfed (SMR) technology in Somalia through onsite adaptive trials; (ii) study the institutional structure for semi-mechanized farming activities and propose a self-sustaining model for expansion of rainfed farming; (iii) transfer skills to Somalis to manage che enterprises and to farmers to use StR farming technology through training and extension; and (iv) within the narrow limits of the pilot area, increase smallholder crop and livestock production and incomes for 400 smallholder families. Benefits: This is a pilot project with broad potential impact. The immediate benefits would be the provision of a settled livelihood and increased income for 400 landless families as well as increased production of maize, sunflower, safflower animal feed and livestock and fuelvood self sufficiency. They would also benefit from better roads and water supplies. The project would generate incremental employment amounting at full developmnent annually to 135,000 man days of family farm labor and 32 man years of unskilled labor. The benefits from development of an environmentally sound rainfed agricultural system with suistainable productivity increases would enhance the prospects of Somalia's semi-arid zones. Risks: The project's economic viability is sensitive to yield levels which would be Influenced by drought, interruption of input supply and lack of proper and timely care of crops. The project is designed to minimize these risks and includes provisions for close monitoring and assessment of experience gained. The risks associated witlh foreign exchange availability and exchange rate fluctuations, and with the maintenance of adequate producer price incentives are being addressed by the Government, with IDA support through agricultural policy adjustment Lending. 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 - Project Components: Local Foreign Total ------US$ million--- PIU - Central Services 0.6 2.5 3.1 - Farm Development 0.3 1.5 1.8 - Farm Management Units 0.8 2.0 2.8 - Training _ 0.4 o.4 - Project Studies and Environmental Measures 0.6 0.6 SUB TOTAL 1.7 7.0 8.7 Ministry of Agriculture (MOA) - Monitoring and Evaluation 0.1 0.2 0.3 Settlement Development Agency (SDA) - Farmer Assistance - 0.3 0.3 Central Agricultural Research Station (CARS)/PIU - Adaptive Research 0.3 1.2 1.5 Agricultural Farm Management and Extension Training Project (AFMET)/PIU - Extension 0.1 - 0.1 SUB TOTAL 2.2 8.7 10.9 Physical contingencies 0.2 1.0 1.2 Price contingencies 0.7 2.2 2.9 TuTAL COSTS 1/ 3.1 11.9 15.0 Financing Plan: IDA Credit 1.6 11.8 13.4 World Food Programme (WFP) - 0.1 0.1 Government of Somalia 1.5 - 1.5 3.1 11.9 15.0 Estimated Disbursements: IDA FY 1988 1989 1990 1991 1992 1993 1994 1995 1996