Nepal - Agricultural Extension and Food Production Projects

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 9994 PROJECT COMPLETION REPORT NEPAL AGRICULTURAL EXTENSION AND RESEARCH PROJECT (CREDIT 1100-NEP) AND HILL FOOD PRODUCTION PROJECT (CREDIT 1101-NEP) OCTOBER 16, 1991 Agriculture Operations Divisioi Country Department I Asia Regional Office This document has a restricted distribution and may be used by recipients only in the perfonnance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIYALENTS 1 Nepalese Rupee (NR) - US$0.036 (1989/90-project completion) 1 US$ - NRsl2.0O (1980-appraisal) - NRs2l.50 (1986/87-original completion data) - NRs27.87 (1989/90-project completion) WEIGHTS AND MEASURES (Metric System) 1 hectare (ha) * 2.47 acres (ac) I kilomster (km) - 0.62 miles (mi) 1 metric ton (m ton) - 2.205 pounds (lb) 1 kilogram (kg) - 2.2 pounds ABBREVIATIONS AA Agricultural Assistant AADO Assistant Agricultural Development Officer ADBN Agriculcural Development Bank of Nepal ADO Agricultural Development Officer AED Agricultural Engineering Division AERP Agricultural Extension and Research Project AIC Agricultural Inputs Corporation APROSC Agricultural Projects Service Center ASC Agricultural Service Center ASD Agricultural Statistics Division CF Contact Farmer CTC Central Technical Committee DCA Development Credit Agreement DCC District Coordination Committee DDG Deputy Director-Ceneral DFAMS Department of Food and Agricultural Marketing Services DG Director-General DOA Department of Agriculture DOLD/AH Department of Livestock Development and Animal Health DTC District Technical Committee ERR Economic Rate of Return FAO/CP Food and Agriculture Crganisation/World Bank Cooperative Programme FIWU Farm Irrigation and Water Utilization Unit FRIP Fertilizer and Related Inputs Program FSR Farming Systems Research JT Junior Technician JTA Junior Technical Assistant HFPP Hill Food Production Project HMGN His Majesty's Government of Nepal IDA International Development Association LAC Lumle Agricultural Center 'DO Local Development Officer M&i: Monitoring and Evaluation MFAI Ministry of Food, Agriculture and Irrigation MOA Ministry of Agriculture MU Monitoring Unit NARC National Agricultural Research Center NFC Nepal Food Corporation PC Project Coordinator PLAA Panchayat Level Agricultural Assistant PO Programme Officer PPVT Pre-Protection Verification Trials RDA Regional Director of Agriculture ROO Regional Outreach Officer RRS Regional Research Station RTC Regional Training Centre RW Regional Workshop SAR Staff Appraisal Report SMS Subject Matter Specialist T&V Tr-ining and Visit TO Training Officer HMGN (BORROWER'S) FISCAL YEAR July 16 - July 15  T-E WOtLD BANK OFFCAL US ON W.is.n1,on. D C 20433 USA 04ke M Ovoct.weah61 Owat0_ Fvai.hasu Octobor 16, 1991 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECTt NEPAL - Agricultural Extension and Resoarch Project (Cr. 1100-NEP) Hill Food Productlon Project (Cr. 1101-NEP) Proiect Completion Report Attached, for your information, is a copy of a report entitled "Project Completion Report on Nepal - Agricultural Extension and Research Project (Cr. 1100-NEP) and Hill Food Production Project (Cr. 1101-NEP)", prepared by the Asia Regional Office. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment This document ha a trictcd distribution and may be used by repients only In the prfornamae of their olllcial duties Its contents may not otherwise be diclsed without Word Bak authorization.  FOR OFFICIAL USE ONLY PROJECT COMPLETION REPORT NEPA AGRICULTURAL RESEARCH AND EXTENSION PROJECT (Credit 1100-NEP) and HILL FOO" PRODUCTION PROJECT (Credit 1101-NEP) TABLE OF CONTENTS Page No. PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . .i EVALUATION SUMMARY .i. PART I. REVIEW OF PROJECTS FROM IDA'S PERSPECTIVE I. Background .1 II. The Projects . . . . . . . . . . . A. Agricultural Research and Extension Project . . . . . . . . 1 Project Identity . . . . . . . . . . . . . . . . . . . . . . Project Objectives and Description . . . . . . . . . . . . . 2 Project Design and Organization . . . . . . . . . . . . . . 2 Project Implementation . . . . . . . . . . . . . . . . . . . 4 Project Results . . . . . . . . . . . . . . . . . . . . . . 5 Project Sustainability . . . . . . . . . . . . . . . . . . . 13 IDA's Performance . . . . . . . . . . . . . . . . . . . . . 13 Borrower's Performance . . . . . . . . . . . . . . . . . . . 14 Borrower/IDA Relationship Under the Project . . . . . . . . 15 Consulting Services . . . . . . . . . . . . . . . . . . . . 15 Project Documentation and Data . . . . . . . . . . . . . . . 15 B. Hill Food Production Project . . . . . . . . . . . . . . . . 16 Project Identity .16 Project Objectives and Description .16 Project Design and Organization . . . . . . . . . . . . . . 17 Project Implementation . . . . . . . . . . . . . . . . . . . 17 Project Results . . . . . . . . . . . . . . . . . . . . . . 19 Project Sustainability .27 IDA's Performance . . . . . . . . . . . . . . . . . . . . . 27 Borrower's Performance . . . . . . . . . . . . . . . . . . . 28 Borrower/IDA/UNDP Relationship under the Project . . . . . . 28 Consulting Services . . . . . . . . . . . . . . . . . . . . 28 Project Documentation and Data . . . . . . . . . . . . . . . 29 PART II. REVIEW OF PROJECTS FROM BORROWER'S PERSPECTIVE .35 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.  PART III. EVALUATION OF EXTENSION SERVICE A. Organization and Administration . . . . . . . . . . . . . . 36 Review of Extension Approaches . . . . . . . . . . . . . . . 36 DOA Standard App- -ch . . . . . . . . . . . . . . . . . . 36 The Block Production Approach . . . . . . . . . . . . . . 37 The Tuki System . . . . . . . . . . . . . . . . . . . . . 37 The Lumle Agricultural Center Approach . . . . . . . . . 38 The Co.munity-based Approach . . . . . . . . . . . . . . 39 The Training and Visit System . . . . . . . . . . . . . . 39 Advantages and Disadvantages of T&V Over Other Approaches . . . . . . . . . . . . . . . . . . . . . . 40 Analysis of AERP and HFPP Approaches . . . . . . . . . . . . 41 Structure . . . . . . . . . . . . . . . . . . . . . . . . 41 Staffing . . . . . . . . . . . . . . . . . . . . . . . . 42 Program Planning . . . . . . . . . . . . . . . . . . . . 44 Budgeting and Finance . . . . . . . . . . . . . . . . . . 45 Monitoring and Evaluation . . . . . . . . . . . . . . . . 45 Findings and Recommendations . . . . . . . . . . . . . . 46 B. Quality and Relevance of AERP and HFPP Extension Services 47 Relevance of Strategies Used by AERP and HFPP . . . . . . 47 Trials and Demcnstration Strategy . . . . . . . . . . . . 47 Advisory Strategy . . . . . . . . . . . . . . . . . . . . 49 Institution Building . . . . . . . . . . . . . . . . . . 49 Facilitation Strategy . . . . . . . . . . . . . . . . . . 49 Conclusions and Recommendations . . . . . . . . . . . . . 49 Quality of Field Level Operations . . . . . . . . . . . . . 50 Work Assignments . . . . . . . . . . . . . . . . . . . . 50 Use of Contact Farmers . . . . . . . . . . . . . . . . . 50 Use of Trials and Demonstrations . . . . . . . . . . . . 51 Use of Extension Aids .... . . . . . . . . . . . . . . 51 Supervision . . . . . . . . . . . . . . . . . . . . . . . 52 Control . . . . . . . . . . . 52 General Conclusions and Recommendations . . . . . . . . . 52 Relevance of Applied Research and Extension . . . . . . . . 53 Commercial Agriculture . . . . . . . . . . . . . . . . . 53 Subsistence Agriculture . . . . . . . . . . . . . . . . . 53 Women Farmers . . . . . . . . . . . . . . . . . . . . . . 53 Farmers' Financial Situation . . . . . . . . . . . . . . 54 Recommendation Specificity . . . . . . . . . . . . . . . 55 Fertilizer Recommendations . . . . . . . . . . . . . . . 55 Conclusions . . . . . . . . . . . . . . . . . . . . . . . 55 General Recommendations . . . . . . . . . . . . . . . . . . 55 Quality of Staff . . . . . . . . . . . . . . . . . . . . . . 57 Qualifications and Experience . . . . . . . . . . . . . . 57 Quality of Training Within the Extension Program . . . . 58 Conclusions and Recommendations . . . . . . . . . . . . . 59 C. Linkages of Extension and Research . . . . . . . . . . . . 59 Linkage Mechanism . . . . . . . . . . . . . . . . . . . . 59 Bi-monthly Workshops ................. . 60 The Research Program Plan .... . . . . . . . . . . . . 60 The Research Outreach Program . . . . . . . . . . . . . . 60 Supporting Agencies .... . . . . . . . . . . . . . . . 61 Commercial Organizations .... . . . . . . . . . . . . 61 D. Issues and Follow-up ................... . 62  PART IV. STATISTICAL INFORMATION . . . . . . . . . . . . . . . . . . . 68 A. Agriculcural Extension and Research Project . . . . . . . . 69 Related IDA Credits . . . . . . . . . . . . . . . . . . . . 69 Project Timetable . . . . . . . . . . . . . . . . . . . . . 70 Credit Disbursement . . . . . . . . . . . . . . . . . . . . 70 Project Implementation . . . . . . . . . . . . . . . . . . . 71 Project Cost and Financing ... . . . . . . . . . . . . . . 73 Project Results . . . . . . . . . . . . . . . . . . . . . 74 Status of Covenants .... . . . . . . . . . . . . . . . . 75 Use of IDA Resources . . . . . . . . . . . . . . . . . . . . 76 B. Hill Food Production Project . . . . . . . . . . . . . . . . 78 Related IDA Credits . . . . . . . . . . . . . . . . . . . . 78 Project Timetable . . . . . . . . . . . . . . . . . . . . . 79 Credit Disbursement . . . . . . . . . . . . . . . . . . . . 79 Project Implementation ... . . . . . . . . . . . . . . . . 80 Project Cost and Financing . . . . . . . . . . . . . . . . . 82 Project Results . . . . . . . . . . . . . . . . . . . . . . 83 St.tus of Covenants . . . . . . . . . . . . . . . . . . . . 84 Use of IDA Resources . . . . . . . . . . . . . . . . . . . . 85 TABLES 1. Rate of Return Calculation . . . . . . . . . . . . . . . . . . 30 2. Sub-Component - Minor Irrigation Crop Budget Seasonal Irrigation to Perennial Irrigation . . . . . . . . . . . . . 31 3. Sub-Component - Minor Irrigation Crop Budget Rainfed to Perennial Irrigation ... . . . . . . . . . . . . . . . . . 32 4. Sub-Component - Minor Irrigation Crop Budget Improving Indigenous Seasonal Irrigation . . . . . . . . . . . . . . . 33 5. Sub-Component - Minor Irrigation Crop Budget Rainfed to Seasonal Irrigation . . . . . . . . . . . . . . . . . . . 34 CHARTS 1. Extension Organization . . . . . . . . . . . . . . . . . . . . 66 2. Linkages Between Research and Extension . . . . . . . . . . . . 67 MAP IBRD 15049R IBRD 15167R  i PROJECT COMPLETION REPORT AGRICULTURAL EXTENSION AND RESEARCH PROJECT (Credit 1100-NEP) and HILL FOOD PRODUCTION PROJECT (Credit 1101-NEP) PREFACE This is a combined Completion Report of the Agricultural Extension and Research Project (AERP) and the Hill Food Production Project (HFPP) in Nepal. In addition, this Project Completion Report (PCR) provides, in Part III, an in- depth analysis of the experience gained in introducing a reoriented extension service vtnder AERP and HFPP and suggescions for its improvement. IDA credits for the two projects, amounting to US$17.5 million and US$8.0 million respectively were approved on February 3, 1981. The two credits closed on July 15, 1990 after three extensions. A balance of US$3.2 million (SDR 2.52 million) for AERP and US$2.4 million (SDR 1.88 million) for HFPP remained unspent and was canceled as of August 29, 1990 for HFPP and January 2, 1991 for AERP. The PCR (Preface, Evaluation Summary, Parts I, III and IV) was prepared by an FAO/World Bank Cooperative Programme mission which visited Nepal in February 1991, and revised by the Agriculture Operations Division of the Asia Region. The format is e departure from the norms in that an in-depth evaluation and analysis of the extension service common to both projects is inserted as Part III, while Part IV provides the statistical information. The PCR is based on the respective Staff Appraisal Reports and Reports to the President, the Development Credit Agreements, supervision reports, a review of project files and discussions with Bank staff in Washington D.C. and Kathmandu, as well as with staff of various implementing agencies of His Majesty's Government of Nepal. On May 31, 1991, the Bank sent the Borrower Parts I, III and IV with the request to prepare Part II by June 25, 1991, but no reply was received.  i