Morocco - Middle Atlas - Central Area - Agriculture Development Project

Do,cument of The World Bank FOR OFFCIAL USE ONTLY Report No. 1 0 8 0 7 PROJECT COMPLETION REPORT MOROCCO MIDDLE ATLAS - CENTRAL AREA - ACRITCULTURE DEVELOPMENT PROJECT (LOAN 2082-MOR) JUNE 30, 1992 Agricultural Operations Division Cour.try Department I Middle East and North Africa Regional Office This document has a restricted distribution and man be used bv recipients onlv in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit - Dirham (DE) Appraisal year US$1.00 - DH 5.17 Implementation average US$1.00 - DH 8.27 Completion year, average US$1.00 - DH 8.24 WEIGHTS AND MEASURES Metric System GLOSSARY OF ABBREVIATIONS CLCA Caisse locale de credit agricole CNCA Caisse nationale de credit agricole CT Extension Center DE Direction de l'1levage DPA Direction provinciale de l'agriculture DPAE Direction de la planification et des affaires economiques DPV Direction de la production v6getale F'AO/CP Food and Agriculture Organization of the United Nations/ World Bank Cooperative Program FKT Fes-Karia-Tissa Project FY Fiscal Year (Wcrld Bank) GDP Gross Domestic Product GOM Government of Morocco IAV Institut agronomique et v6t6rinaire, Hassan II MARA Ministere de l'agriculture et de la reforme agraire MTSAP Medium Term Agricultural Adjustment Programme ONEP Office national de l'eau potable PCR Project Completion Report SAL Structural Adjustment Loan SAP Special Action Program SAR Staff Appraisal Report T&V Training and Visit FISCAL YEAR OF BORROWER Government of Morocco: January 1 to December 31  FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A. Office of Director-General Operations Evaluation June 30, 1992 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on MOROCCO Middle Atlas- Central Area - Agriculture Development Project (Loan 2082-MOR) Attached, for information, is a copy of a report entitled "Project Completion Report on Morocco - Middle Atlas - Central Area - Agriculture Development Project (Loan 2082-MOR)" prepared by the Middle East and North Africa Regional Office. Attachment This document has a restricted distribution and may be used by recipients only In the performance of their official dvlies. Its contents may not otherwise be disclosed without World Bank authorization.  FOR OFFICIAL USE ONLY PROJECT COMPLETION REPORT MOROCCO MIDDLE ATLAS - CENTRAL AREA AGP'ICULTURE DEVELOPMENT PROJECT (LOAN 2082-MOR) T^BLE OF CONTENTS PafeNo. PREFACE ........ . . . . . . . . . . . EVALUATTON SUMKARY . . . . . . . . . . . . . . . . i. i PART I: PROJECT REVIEW FROM BANK'S PERSPECTIVE . . . . . . . . . .1 1. Project Identity . . . . . . . . . . . . . . . . . 2. Background . . . . . . . . . . . .1 3. Project .'bjectives and Description . . . . . . . . . . 2 4. Project Design and Organization . . . . . . . . . 3 5. Project Implementation . ... . . . . . . . . . 4 6. Main Project Results . . . . . . . . . . . . . . . . . 6 7. Project Sustainability . . . . . . . . . . . . . . . . 9 8. Bank Performance . . . . . . . . . . . . . . . . . . . 10 9. Borrower Performance . . . . . . . . . . . . . . . . . 12 10. Project Relationship . . . . . . . . . . . . . . . . . 12 11. Consulting Services . . . . . . . . . . . . . . 12 12. Project Documentation and Data . . . . . . . . . . . 12 PART II: PROJECT REVIEW FPOM BORROWER'S PERSPECTIVE . . . . . . 13 A. Confirmation of Factual Data Contained in Parts I and III . . . . . . . . . . . . . . . . . . . . . . . 13 B. Remarks on the Analysis Contained in Part I . . . . . . 13 C. Bank Performance . . . . . . . . . . . . . . . . . . 15 D. Borrower Performance.. . 15 E. Lessons Learned . . . . . . . . . . . . . . . . . . . . 15 F. Relationship between Bank and Moroccan Government . . . 16 PART III: STATISTICAL INFORMATION . . . . . . . . . . . . . . . . . 17 1. Related Bank Loans ..17 2. Project Timetable . . . . . . . . . . . . . . . . . . . 18 3. Loan Disbursements ..19 4. Project Implementation: Project Implementation Ratios 21 5. Project Costs and Finascing . . . . . . . . . . . . . . 24 6. Project Results . . . . . . . . . . . . . . . . . . 26 7. Status of Major Covenants (Ln. 2082-MOR) . . . . . . . 29 8. Use of Bank Resources . . . . . . . . . . . . . . . . . 30 ANNEXES 1. Land Use and Crop Yields in Ifrane . . . . . . I . . . 32 2. Land II.SP in Project Area . . . . . . . . . . . . . . . 33 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.  - 1 - PROJECT COMPLETION REPORT MOROCCO MIDDLE ATLAS - CENTRAL AREA AGRICULTURE DEVELOPMENT PROJE-T (Loan 2082-MOR) PREFACE This is the Prolect Completion Report (PCR) for the Middle Atlas - Central Area - Agriculture Development Project for which Loan 2082-MOR, in the amount of US$29 million, was approved on January 7, 1982. The loan was clo&ed on December 31, 1990, two and a half years behind schedule. US$5 million was cancelled from the loan in November 1984, followed by cancellation of US$8 million in January 1987, US$5 million in December 1989, and the balance of about US$2 million at closure. Total disbursements amounted to US$9 million or 31 percent of the original and 82 percent of the revised loan amount. The PCR (Preface, Evaluation Summary, Parts I and III) was prepared by sta:'f of the PAO/World Bank Cooperative Programme (FAO/CP) for the Agriculture Opneations Division of the Middle East and North Africa Regional Office of the Bank. Part II was prepared by the Borrower. Preparation of the PCR was started during a visit to Morocco by an FAO/CP mission in February 1991 and is based inter alia on a report prepared by the Directorate of Livestock of the Borrower, on material gathered in Morocco, discussions with Bank Project staff, the Appraisal Report, the Loan Agreement, supervision reports, as well as correspondence between the Bank and the Borrower and internal Bank memoranda.  - iii - PROJEBCT COMPLETION REPORT IIOROCCO MIDDLE ATLAS - CENTRAL AREA - AGRICULTURE DEVELOPMET PROJECT (Loan 2082-NOR) EVILUATION SUEARY Obiectives 1. The Middle Atlas Agriculture Development Project was the third of four projects appraised by the Bank, during the late seventies and early eighties, that demonstratod the interest of both Government and the Bank in the integrated development of rainfed agriculture. Previous governmeztal agricultural development policies had aimed almost solely at developing the large-scale irrigated agriculture sub-sector. Designed as an integrated agro- sylvo-pastoral development effort, the Middle Atlas project through the implementation in five communes (provinces of Ifrane and Khenifera) of a series of interrelated actions in the forest, on the range and on arable land aimed at: (a) bringing about production increases of meat, milk, fodder, cereals and wood; (b) increasing income and employment among the rural production; and (c) reversing the deterioration of the forest and rangelands in the areas, while restoring the role of tribal fractions in managing collective rangelands. The project comprised four major components: forestry development, livestock 'mprovement, cropping development and technical assistance/studies. Specifically, these included (i) infrastructure and equipment for the management and exploitation of the region's forest resources; (ii) forest and collective rangeland development activities; (iii) development of animal health facilities; (iv) on-farm development and working capital for agricultural production; (v) construction and improvement of forest range and feeder roads; (vi) improved extension and research; (vii) irrigation rehabilitation; and (viii) technical assistance. I-olementation Exoerience 2. In spite of severe budgetary constraints and management problems arising from frequent staff turnover, the project was successful in meating several of its objectives. Major physical targets (table 4) that were met at  - iv - more than 50 :rcent of appraisal estimates include the preparation of forest management pl.1B, forest production improvement and services as well as range- land z.avelopment, constructior. and equipment. Project performance was less satisfactory in the physical implementation of forest road construction (21 percent of target), forest range management (33 percent of area expected) and irrigation rehabilitation, where the Ifrane comuponent was cancelled during project restructuring and the Midelt area completed at only 7.5 percent. 3. From the first year of implementation (1983), this project, more than any of the above mentioned World Bank financed projects, was confronted with severely restrictive budget allocations. During fiscal years 1985 and 1986 the budget crisis reached a peak with shortage of allocated funds and delayed authorization of payments; as a result, project activities were severely reduced. Project implementation took two and a half years longer than anticipated (table 2). Ban.c disbursements (US$ 9 million) lagged throughout the whole period of implementation and 69 percent of the original loan amount was cancelled (Table 3). 4. Project coordination and management suffered greatly from the frequent t.rnover in staff and delays in filling vacancies. In the project region of Ifrane, the transfer of the project management unit from Meknes to Azrou late in 1986, and the nomination of a new project director for the area, along with the subsequent stability of the staff, gave project implementation a new impetus. In the project region of Khenifra, however, despite a good start, project activities slowed as a result of personnel transfers, unfilled key posts and poor coordination. Results 5. The project objectives of bringing about increased inconme and production of meat (sheep), sylvo-pastoral fodder and reversing the deter'o- ration of the forests and rangelands were achieved in most areas where the related project activities took place. However, those pertaining to increased cereal and wood production and employment, were only partially achieved. 6. Forestry DeveloDment. The results of the recently completed management plans, forest demarcation and plantation of conifers can only be felt in the long term. Nevertheless, an appreciation of their positive impact can already te felt since encroachment on forests lands is diminishing and a better forest exploitation methodology is in effect at both Ifrane and Khenifra. in the other hand, spraying to cont_ol the processionary cater- pillar, thinning of holm-oak, forest range management and the construction of roads, forest offices and stations as well as the procurement of equipment all had an immediate and positive (even if unquantified) imnpact on the protection of the forest and on improving the production of wood. 7. Livestock Development. Collective rangeland management at Timahdite was undoubtedly the most successful activity undertaken by the project to improve animal nutrition. Fodder production in the managed areas  v increa. - from 250 UF/ha to 480 UF/ha. The animial health component was also success-il and was reportedly able to reduce sheep death rates from 13 to 7 percent. Genetic improvements, proper herd management and several related studies were not sufficiently adeKessed and therefore did not show the expected results. 8. Crogpina Development. As a result of the project, the extension services of the DPAs of Ifrane and Khenifra were strengthened and reorganized. The extension effort was modeled along the Training and Visit system and contacts with farmers were intensified. However, in view of the fact that extension reorganization and strengthening took effect relatively late in the life of the project, clear benefits accruing from them will only appear after a period of time. Data available from Ifrane (Annex 1) indicate that cropped areas for bread wheat and forage crops did increase as expected but crop yields have not shown significant improvements. Bustainability 9. The main aspects where the project has been most succissful, including improved collective and forest range management (Timahdite and Bouhsoussen), are considered to be sustainable. The first because the technology was demonstrated to be well adapted and mastered by project staff. The second because of local government support, real increases in fodder production and beneficiary participation and interest. The cereal, forage crops and wood production as well as livestock management have yet to reach their potential and will necessitate, for tneir suscainability, more technical assistance and support. Findings and Lessons Learned 10. The important lessons learned from this proje t are: (a) management staff stability, competence and dedication are an essential prerequisite to project success; key posts should be filled by competent staff before Bank loans are made effective; (b) lack of Government financial support will hinder the implementation and success even of well managed projects (such as Ifrane after 1986). (c) monitoring and evaluation needs to be designed as an integral part of project activities and should be in place before project implementation begins (way, loan effectivzeLses). Collection and analysis of monitoring data need not be complicated but have to be pursued with a sustained determination; (d) this project also demonstrated that, despite the difficulties involved, collective and forest rangelands can indeed be organized, improved and managed properly, if the traditional  - vi - rights of usage of the populations are not disturbed and if the rightholders are involved in defining the management plans they are supposed to follow; (e) integrating well-designed potable water supply schemes and other social infrastructural works (as in Timahdite) with agricultural development, improves the acceptance by the populations of the changes and risks advocated by the project; (f) the involvement of local authorities in sensitizing and securing the participation of the target populations is not only advisable but necessary; (g) while the project correctly promoted the integration of a number of different sub-sector activities, it suffered from the poor coordination between Directorates of MARA and was limited by having to fund all activities through the budget of tie livestoo2k Directorate. For projects involving different Directorates, project organization should be carefullv designed to allow for multisectoral buuget allocations and to ensure true integration of activities, knowing that coordinating committees do not guarantee success. (h) five years is too short an implementation period for projects of this type and complaxity. Project duration should be fixed according to disbursement profiles established on the basis of experience.  PROJECT COMPLETiON REPORT MOROCCQ MIDDLE ATLAs - CENTRAL AREA - AGRICULTURE DEVELOPtIENT PROJECT (Lorn 2082-MOR) PART I - PROJECT REVIEW FROM BANK'S PERSPECTTVE 1. Project Identity Project Name: Middle Atlas - Central Area - Agriculture Development Project Credit No.: 2082-MOR RVP Unit: MNA Regic. Country: Morocco Sector: Agriculture 2. Prc4ect Backqround 2.1 Economic Context. During the 1970's, the Moroccan Government launched a massive public investment program to stimulate growth of the economy. This caused GDP growth rate to increase to 7.3% per year in the period 1973-77 but a disequilibrium developed with an increasing debt service ratio. An initial stabilization program reduced investments and imports at the cost of reduced GDP growth and unemployment. In 1980, the Government adopted a strzctural adjustment strategy aiming at narrowing the external resource gap while accelerating growth through (i) import reductions, (ii) export promotion, and (iii) improved sectorial investment allocations. 2.2 Agricultural Context. The project was formulated in 1979 during a period when Moroccan agriculture's share in the economy was declining and its contribution to GDP was averaging about 13 percent down from about 20 percent at the beginning of the seventies. Growth of agricultural output averaged only about 2.4%, not enough to keep pace with the rising demand for foodstuffs of a rapidly growing population. In the mid 1970's, the agricultural trade balance changed significantly and move. into deficit (US$150 to 200 million per year). This decline ensued mainly from limited investment by the Government in the rainfed sector on which over 80% of the rural population depended for their livelihood, lack of a coherent price policy for the agricultural sector, and land tenure problems which limited the use of modern production techniques and agricultural credit. Insufficient attention had also been given to the livestock sub-sector which contributed about a third of agricultural GDP and to forestry production which was limited but could potentially be increased to satisfy national wood and energy requirements. 2.3 The Government's objectives for agriculture in the Five-Year Plan (1981-1985) were (i) to restore a high degree of agricultural self-sufficiency and maximize agriculture's contribution to the balance of payments by fostering export and import substituting production! and (ii; to reduce regional income disparitied and improve living conditions of the poorer  segments of the rural population by increasing their productivity and generating employment opportunities. To attain these objectives, the Government increased public investment i.n agriculture and reallocated investments to favor rainfed agriculture and livestock activities practiced by the majority of Morocco's rural poor, as well as for forestry development. The investment program in agriculture under the 1981-85 Plan reflects this strategy. Agriculture is allocated 22.5% of total investments, against 18 percent during 1978-1980. Within the sector, the share of large scale irrigation schemes fell from 61 to 40 percent, while that of rainfed agricultural development increased from 2 to 18 pe.cent, of smail-scale irrigation from 3 to 8 percent, of livestock development from 4 to li percent and of forestry from 4 to 8 percent. Since FY 1975, Bank lending in agriculture has emphasized improvement in the productivity of rain: I agriculture and livestock. A series of four rural development projects (Fes- Karia-Tissa FY 1978, Loukkos FY 1980, Middle Atlas i'Y 1982, Ouln,es-Rommani FY 1983) were prepared to aduress these ohjectives. 2.4 The Project. The issues addressed by the Middle Atlas Agricultural Deve.opment Project, i.e. increasing production of basic commodities, deveIGpment of forestry and rangeland resources in a relatively poor mountainous area in central Morocco, to bring about a rire of income and employment among the rural population, are fully comp.tible with the economic and agricultural development objectives of the country. 3. 7roiect Obiectives and Description Project Obiect..ves 3.1 Through the implementation in five communes (provinces of Ifrane and Khenifra) of a series of interrelated actions in the forest, on the range and on arable land, the project aimed at: (i) bringing about production increases of meat, milk, fodder, cereals and wood; (ii) increasing income and employment among the rural population; and (iii) reversing the deterioration of the forest and rangelands in the areas, while restoring the role of tribal fractions in managing collective rangelands. Proiect Description 3.2 The project consisted cf the following four components: (a) Forestry developmenS implementation of forest management plans over 124,000 , including the preparation of neu plans over 3E,000 ha, the provision of infrastructure including the construction of 185 km of forest roads, installation of nurseries, planting of trees (3,200 ha), thinning of cedar and holm-oak trees (17,800 ha); pest management (46,000 ha); and the strengthening of forest services through construction of offices and housing and provision of equipment and vehicles. (b) Livestock Development: development of fodder resources at the farm level, in the forest (20,80C ha) and on collective rangeland; introduction of range management systems based on  -3- fixed stocking rates and )n deferred and rotational gra:zing (51,000 ha); provision of infrastructure on the range such Ps water supply schemes and access roads at Timahdite; construction of animal health faciliLies; improvement of herd management; and provision of short, medium and long term credit. (c) Cropping Development: reorganization and reinforcement of extension services; problem-specific research programs linked with extension; provision of credit; rehabilitation of some 2,000 ha of small traditional irrigation perimeters; construction of access roads; and introduction of forage conservation methods. (d) Consultants and Studies: techiiical assistance (124 mm) for extension, range management, research, training of loggers, pest management, project monitoring; scudies for irrigation rehabilitation and for the establishment of a cheese factory. 3.3 In November 1985, the project description was amended to include the funding of training, vehicles, equipment and operating costs for up to 30 pilot extension centers (28 were eventually funded). A total of US$1.1 m of loan funds were set aside and a revolving fund of US$200,000 was set up at the Central Bank. This was part of a program introduced under the first agricultural sector adjustment loan to develop a T&V based extension service in the rainfed areas to be eventually extended throughout the country. Subsequently, the Government requested that the special account cover all components, that it be increased to $2 million and that its location be changed from the Central Bank to the Treasury. In March 1988, the Bank agreed to close the original special account with the Central Bank and to open a new one in the Treasury for all categories under the Loan (with a subaccount for the pilot extension program), and to increase its amount to the equivalent of $2 million in local currency. 4. Project Design and Organization 4.1 The conceptual design of the project was based on a realistic assessment of the development alternatives available to the zone which integrated forestry. range and crop production improvements. Project objectives were shared and weli understood at the central level of the Directorate of Livestock, where the staff were fully involved in preparing the project. This was much less the case, however, at the regional level, where project objectives were often insufficiently understood, especia lv during the latter years of project implementation. 4.2 The fact that the already establ_shed prc\'incial management directorates (DPAs) of Kenifra and Ifrane were the imiain executing agencies for project activities in their respective provinces, definitely helped project execution and the project was able to create, albeit to varying degrees, a sense of renewed dynamism in the two DPAs. However, the planning and decision making ability of the DPAs was greatl.y hampered by the lack of financial autonomy (contract approval and payment). This was compounded by frequent staff changes (paras. 5.4, 5.5), particular'y at Khenifra. With one  - 4 - separate project unit in each DPA, coordination was practically inexistent and in hindsight it is easy to note that the project would have benefited from a sing'.e project coordinator responsible for supporting project implementation by the two DPAs. In addition to the DPAs, whose responsibilities extend far beyond the project areas and activities, a stronger project management unit could have taken the lead in continuously focusing the attention of the DPA 'service chiefs on the activities of the project and on the need to keep to the agreed upc.n timetable. 5. Project Implementation 5.1 Project costs at appraisal were estimated at US$92.2 million, project duration was to last 5 years, ending in June 1988. Actual costs were considerably less than anticipated and project duration was extended to 7.5 years. At completion, Bank disbursements were US$9 million instead of the estimated US$29 million. This reduction in project cost was mainly due to the variation in the exchange rate where the US Dollar appreciated significantly against the Mioroccan Dirham, very severe budget limitacions (paras. 5.2, 5.3), poor project coordii.ation (para. 4.2), the high turnover in management staff (paras. 5.4, 5.5) and the low use of technical assistance (para. 5.6) which resulted in low implemenzation ratios. 5.2 Budgetarv Constraints. The project (along with most of the Bank supported projects) suffered from the very begi- ning from a shortage of local funds caused by the tight budgetary situation in Morocco. This led to repeated postponement of approval of contracts and late availability of approved financing for the project. Despite approval of the Special Action Program in 1987 (see below) and repeated requests by the Bank to the Government to speed up budgetary transfers, this situation persisted throughout the life of the project causing delays in implementation. This situation, coupled with the exchange rate diUferentials, lowered project costs significantly from DH 443 million expected at appraisal to DH 135 million at project completion. 5.3 In order to compensate for the financing shortages and improve project implementation, agreement was reached in 1987 on a Special Action Programme (SAP) which increased Bank disbursement percentages for the first two categories of the Loan (oroject works, spraying program, construction of water supply system and roads). Subsequently, the Bank agreed to extend the applicability of the higher disbursement rates of the SAP until the closing date of the Loan, to restructure the project by reducing the forestry, livestock, agricultural development and the rural road programs to their most essential production components, and to authorize the use of the special account (para. 3.3) for all categories and increase its amount from US$200,000 to US$2 million equivalent in local currency. 5.4 Project managemert. The second and probably the most important factor that affected the pace of implementation was the high turnover in project management staff. After a slow start, project implementation in the Ifrane region picked up speed after the transfer in September 1986 if the project management unit from the DPA of Meknes to the newly created DPA of Ifrane. A new dynamic management team came or. board. Management stability and dedication of the staff were instrumental in achieving major successes,  . 5 - especially in the phytosanitary treatment of cedar forests and the organization of clans for improved management of collective rangelands. 5.5 In the Khenifra Region, a good start was followed by the nomination and subsequent transfer of at least three provincial directors and almost all service chiefs. This resulted in insufficient focus on project activities and delays in getting project activities and studies funded and executed. A case in point is the study of irrigation rehabilitation in Midelt, where the aerial photography and mapping took more than three years to complete and by the end of the project only 7.5 percent of the area to be rehabilitated was fully completed. 5.6 Technical assistance, The insufficient use of technical assistance (only 15 mm were used against 124 mm planned/1) due to late availability of financing, and delays in processing of consultant contracts at the Ministry of Finance, also had a negative effect on project implementation, particularly the range management, extension, and monitoring and evaluation programs. 5.7 Project risks were correctly identified in the SAR. However, high staff turnover and the financial crisis, as described above, and the unusual severe incidence of drought had a far greater impact on the project than had been anticipated at appraisal. While the poor initial quality and long delays in producing studies for the Timahdite and El Feija range perimeters (para. 6.3) could not have been foreseen either, they were nevertheless responsible for substantial delays in the implementation of those components. 5.8 As a result of the difficulties mentioned above, the project was able to implement only parts of its components and therefore did not fully attain its objectives (see Table 4, Part III). In the forestry development and exploitation component, the forest management plans (36,000 ha), insect control (on 31,500 ha), construction of forest services buildings, as well as equipment and nurseries, were successfully implemented and almost totally completed. The forest production activities, consisting mainly of cedar forest regeneration and thinning of holm-oak, as well as the forest range improvement and management, were implemented respectively at 39 and 63 percent of appraisal expectations. 5.9 In the livestock component, while the husbandry practices and nutrition did not receive the necessary attention, pastoral development achieved a major success in the organization and management of the Timahdite (25,000 ha) collective range and the Bouhsoussen public forest range (4,800 ha). Collective pastoral sites were divided into manageable units according to tribal fraction distribution rather than phyto-ecological criteria. This allowed for the adherence and participation of the rightholders to the development program. This same methodology is being used in other collective range sites in Morocco and could have application in other countries of the region. 5.10 The agricultural development component permitted the reorganization of the extension system and its strengthening with new staff. 1 12 man months were used to produce the national extension plan.  - 6 - However, the use of fertilizers and other farm inputs had only an erratic development and increases of crop yields and livestock production were not sufficiently evident. The irrigation activities for the Azrou region were cancelled during project restructuring in 1987 and those for the Khenifra area suffered long delays and were only partially completed. The third tranche of works has been taken over by the Small and Medium Scale Irrigation II project. 6. Main Project Results 6.1 The project objectives of bringing about increased income and production of meat, sylvo-pastoral fodder as well as reversing the deterioration of the forests and rangelands, were achieved in most areas where the related project activities took place. However, those pertaining to increased cereal and wood production and employment were only marginally achieved. Forestry Development 6.2 The results of the recently completed management plans, forest demarcation and plantation of conifers can only be assessed in the long term. Nevertheless, an appreciation of their positive impact can already be felt since encroachment on forest lands is diminishing and a better forest exploitation methodology is in effect at both Ifrane and Khenifra. On the other hand, spraying to control the processionary caterpillar, thinning of holm-oak, forest range management and the construction of roads, forest offices and stations, as well as the procurement of equipment, can all be expected to have an immediate effect on the protection of the forest and on improving the production of wood. Due to the lack of monitoring and evaluation, no meaningful data is available to quantify the degree of success or failure achieved. Nonetheless, the "ollowing observations can be made: (a) Insect control was implemented wherever the treatment was necessary with visible positive effects on the cedar forest of the area. A monitoring and research unit for forest phytosanitary protection was established and is operational. (b) As a result of oak thinning and other forest exploitation activities, a total of 250,000 m3 of sawlogs and 465,000 steres of fuelwood were produced between 1983 and 1989. This is less than the anticipated incremental production of 300,000 m3 of sawlogs and 850,000 steres of fuelwood. The shortfall in wood production is mostly due to the decision not to establish the planned mechanized forest exploitation units and to the partial implementation of forest roads. (c) Of a total of 12,000 ha in Bouhsoussen forest, range management enabled the fencing and rational exploitation of only 6,600 ha, with the participation and adherence (between 1984 and 1987) of about 700 stock owners organized in 28 groups. 'orest inanagement and fencing have been accepted by the neighbouring populations who have asked the forest service to step up the pace of its activities. Fodder production, as a result of sylvo-pastoral management and  -7 - improvement, has been reported to have increased in some areas by 200 per cent (from 250 to 750 UF/ha) instead of the 62 per cent planned. Revegetation efforts showed that fodder shrubs, namely Acacia Ciano2hyla and oDuntia Ficus Indica Var Inermis, did not succeed because of poor adaptation to prevailing edaphic conditions. Livestock Development 6.3 The collective range menagement component suffered substantial delays (about 5 years) due to social and organizational problems which had been underestimated at appraisal. The principal reason for the difficulty in implementing the main part (Timahdite and Ain Leuh) of the component was the lack of information relating to the ownership of rights to the collective lands by the prospective beneficiaries. The lack of commitment from both Government and the communities involved resulted in a standstill of most of the operations in 1985 for about a year. An additional problem was that locally adapted technical packages for pasture development did not exist and had to be devised and demonstrated to prospective beneficiaries to obtain their full cooperation. Thus, a great deal of preparatory work needed to be undertaken with the participation of the beneficiaries before appropriate management systems could be established for Timahdite and Ain Leuh (late 1988/early 1989). Once implemented, collective range management, particularly at Timahdite, was undoubtedly the most successful activity undertaken by the project to improve 'odder production. Animal health was also successful and was reportedly able to reduce sheep death rates from 13 to 7%2 Genetic improvement, herd management and several related studies were not sufficiently addressed and therefore did not show the expected results. 6.4 As mentioned above, in 1988, the Agronomic and Veterinary Institute Hassan II (IAV) produced in collaboration with the Livestock Directorate (DE) and the DPA of Ifrane, a range management plan for the communal range perimeter of Timahdite (25,000 ha), base.l on participation of the graziers. It was put into effect that same year and by 1990, 7,500 ha were managed under a deferred grazing management plan. Under this plan, specific areas of the range were closed to grazing during the early part of spring which allowed plant growth and biomass production co increase from 250 UF/ha to 480 UF/ha. For areas where the dominate species is Atemisia herba alba, a perennial shrub, a multi-year .'sferment plan was put into effect and should show with time an increase in production. While the range is closed, sheep herds move to other parts of the range, to the forests or to arable land left fallow. During the rest periods, a symbolic compensation, in the form of barley grain was given to the range users. Committees and cooperatives were organized with the local population to manage the rangelands and collect the 3 DH/sheep/year fee from the users for operation and maintenance of the water supply scheme and the other infrastructure (concrete marking posts). In Feija, the other collective pastoral development perimeter of about 4,000 ha, the whole area has been closed to grazing. Several shrubs and herbaceous species were tested there, which showed that Agropiron sp and Atriplex numularia were well adapted to the area. 2 Project staff estimates (Ifrane).  6.5 The results obtained in Timahdite are worthy of consideration and could serve as a model not only for other communal rangelands in Morocco, but also in neighbouring countries. The most important and probably most durable result is securing the participation and involvement of the range rightholders. This was made possible by the involvement of the communal affairs services of the Ministry of Interior, the construction of the water supply scheme, which served as a potent incentive, and the adoption of lenient grazing deferment schedules. The second result was the improvement in range fodder production which increased by 87% as planned. Coupled with the veterinary services provided, the improvement in range fodder production was responsible for increasing sheep daily weight gains to 150 g, corresponding to an increase of more than 30%. 6.6 Collective and forest range management as well as insect spraying in the forest, have had a positive impact on the physical environment of the area covered by the project. The vegetative cover was improved reducing erosion on the rangelands, and cedar trees of many forests in the area were preserved. 6.7 The establishment of the range management and the forestry monitoring and research units, and the strengthening of the DPAs in Azrou and Khenifra have had a major impact on improving the capabilities of these institutions to address technical and social development issues. The water supply scheme (at ':imahdite) and wells (at Ain Leuh) made the task of fetching water easier for -;omen and improved the health and well-being of the rural population in the project area. Extension 6.8 The funding of 28 pilot extension centers (CT) (para. 3.3) in addition to extension activities funded in Ifrane and Khenifra, brought to a total of 43 (15 being covered by the four area development projects) the CTs receiving the transport and operating budget required to provide at least a minimal extension service. However, significant improvements in extension services were not possible until late in the life of the project. This was due to the fact that extension activities, particularly in Khenifra, were affected by the frequent management changes described above, and by the lack of extension chiefs and financing for purchase of vehicles and operating expenses. A number of other factors affected smooth implementation of extension activities: (a) it proved difficult to detach subject matter specialists from their day-to-day administrative duties; (b) a number of the CTs were in the arid areas where extension had little to pass on; and (c) field staff had a limited education and capacity to diagnose problems and were sometimes less well informed than the farmers. The equivalent of US$1 m was disbursed for these activities and experience with these centers contributed to the preparation of the National Agricultural Research and Extension Project which was appraised in 1987.  -9- Cropping Development 6.9 Due to the late improvements made in extension effectiveness, clear benefits in terms of increases in crop and livestock yields would only accrue after a period of time. Data available from Ifrane (annex 1) indicate that between 1983 and 1988 surface areas planted to durum wheat and barley did not change significantly, while cultivation of bread wheat increased by 100 per cent (from 4,000 to 8,000 ha) and of forage crops by 81 per cent (from 1,425 ha to 2,580 ha). On the other hand, no significant yield increases were registered. 6.10 Credit. As a result of the agricultural investment code, farmers in the project area had access to credit to finance farm equipment and crop establishment through the regional and local branches of the "Caisse nationale du Credit Agricole" (CNCA). Total credit granted increased from DH 30.8 million in 1983 to DH 54.4 million in 1987 with Khenifra accounting for 54% of the total amount. At the time of PCR preparation, no information had been made available on the number of beneficiaries, the nature of the investments for which the credit was used nor its impact on agricultural production. Special credit facilities such as those implemented in the Fes-Karia-Tissa project would have contributed to a faster uptake of better farming techniques and equipment. 6.11 Monitoring and Evaluation. Neither DPA involved in the Project has established a monitoring and evaluation unit. The short training and inadequate use of consultant support by the project management unit did not enable it to collect any meaningful data to evaluate the impact of the project. Little relevant data, particularly on the effect of extension on crop yields or of range improvement on livestock production parameters were available at the time of PCR preparation. 6.12 Internal Rate of Return. Due to the lack of monitoring and evaluation data, it is not possible to carry out an internal rate of return calculation for the project. Field visits and discussions, conducted by the mission with the staff of the DPAs, indicated that the project had, at best, only a marginal impact on agricultural and forestry production. In view of the potential importance of the small Timahdite range sub-component which appears to have been successful in developing an approach to collective rangeland improvement, an analysis was carried out and resulted in an ERR of about 37% for this activity (Table 6 of Part III)3. 7. Project Sustainability 7.1 The most successful components of the project, which include forest management and improved collective and forest range management (Timahdite and Bouhsoussen), are considered to be sustainable. The first because the technology was demonstrated to be well adapted to prevailing conditions and 3 This compares to an SAR estimate of 21%, but a comparison between the two results is difficult as the assumptions of the original calculations were not fully available.  -10 - mastered by the DPA staff. The second because of Government support and beneficiary participation and interest. The proven success in conserving the natural resources in the forest and in achieving increased biomass production on the rangelands will also contribute to the sustainability of these activities. 7.2 Continued government support and willingness to seek beneficiary participation and support is essential to future success of these interventions in other areas. In order to obtain the full participation of the population, the Government (MARA) may need to bear the cost of some form of compensation to the herders during the initial periods when the rangelands are closed for rest periods. In the past, the construction of infrastructure (water supply schenes ancd wells) and/or the distribution of free animal feed (50 kg of barley per ha of closed range per year) atLd provision of veterinary services have provided sufficient incentives for the population until the improvement in biomass production of the grazing lands became visible. Replication of the experiences of Timahdite and Bouhsoussen is being actively sought by the local populations of other areas and the Government (MARA) has come forward with the necessary support. As the populations become more committed and the success of the various improvement techniques become more visible, Government compensation should diminish. 7.3 For crop and livestock production, a more dynamic effort in extension will be required to reap the maximum benefits from the organization and infrastructural investments put in place. Training and staff continuity will be instrumental in providing the extension effort with the high quality competent staff required. This in turn will give greater credibility to both the extensicnists and their messages. Staff motivation and dedication will have to be enhanced through the provision of adequate technical messages by research, and the provision of inputs, transport and other working means and materials. 8. Bank Performance 8.1 Project identification, preparation and appraisal were done well and in close cooperation with a national team and the FAO-CP. Bank strengths were the frequent (16 missions in 8 years) and high calibre supervision missions mounted throughout the project life. The Bank's supervision effort was highly appreciated and helped to build a constructive dialogue with project staff particularly in Ifrane. The Bank proved responsive and flexible in restructuring the project under the SAP in 1987 to permit the execution of a limited program of priority investments. However, the SAP could have been approved earlier in 1985 rather than two years later. Also, although the Bank made continuous attempts to draw the attention of MARA and the Ministry of Finance to the need to reverse the funding const.aints which were particularly hard for the Middle Atlas project, it was not successful in this regard. New budgetary and disbursement procedures introduced in 1988/89 came too late to affect this project. Another Bank weakness was that it did not press harder for technical assistance.  - 11 - Lessons Learned 8.2 The important lessons learned fron, this project are: (i) management staff stability, competence and dedication are an essential prerequisite to project success. Key posts should be filled by competent staff before Bank loans are made effeccive; (ii) lack of Government financial support will hinder the implementation and success even of well managed projects (such as Ifrane after 1986); (iii) monitoring and evaluation needs to be designed as an integral part of project activities and should be in place before project implementation begins (say, loan effectiveness). Collection and analysis of monitoring data need not be complicated but have to be pursued with a sustained determination; (iv) this project also demonstrated that, despite the difficulties involved, collective and forest rangelands can indeed be organized, improved and managed properly, if the traditional rights of usage of the populations are not disturbed and if the rightholders are involved in defining the management plans they are supposed to follow; (v) integrating well-designed potable water supply schemes and other infrastruactural works (as in Timahdite) with agricultural development, improves the acceptance by the populations of the changes and risks advocated by the project; (vi) the involvement of local authorities in sensitizing and securing the participation of the target populations is not only advisable but necessary. (vii) while the project correctly promoted the integration of a number of different sub-sector activities, it suffered from the poor coordination between Directorates of MARA and was limited by having to fund all activities through the budget of the livestock Directorate. For projects involving different Directorates, project organization should be carefully designed to allow for multisectoral budget allocations and to ensure true integration of activities, knowing that coordinating committees do not guarantee success. (viii) five years is too short an implementation period for projects of this type and complexity. Project duration should be fixed according to disbursement profiles established on the basis of experience.  - 12 - 9. Borrower Performance 9.1 The national team was able to put together, with the collaboration and assistance of the FAO-CP and World Bank, the necessary information for a rapid appraisal of the prrject. During project implementation, the borrower's main strergth resided in its enactment of t:he necessary decrees to improve collective rangelar.ds and the creation and staffing of the new DPA of Ifrane at Azrou in 1956. Main weaknesses were in the high project management staff turnover particularlv in Khenifra, inadequate project funding, insufficient use of technical asistance and training, and insufficient back-stopping by central Directorates, especially in monitoring and evaluation which was not pursued to any meaningful extent. In addition, coordination among and within central Directorates and project management units was weak. 10. Proiect RelationshiD 10.1 The relationship between the Bank and project management was good, and the exchange of technical views helped in upgrading certain studies such as those prepared by IAV Hassan II for rangeland development. However, there was lack of support for the project in certain departments of the Ministry of Agriculture, which caused the project to suffer even more drastic cuts at the Ministry of Finance than the other ongoing rural development projects. This situation led the Bank to recommend the allocation of available funds in priority to the agro-sylvo-pastoral components which are the core of the project and to reduce the scope of components which were not essential to the project (para. 5.3). 11. Consulting Services 11.1 Aside from the entomology and analytical accounting consultancies totaling 3 man months and the extension expert, who during 12 mm, worked on the national extension plan, none of the remaining 109 man months were used. Project implementation and staff, particularly in crop and livestock development and in monitoring and evaluation, could have gained substantially from the selective use of the funds provided for technical assistance. 12. Project Documentation and Data 12.1 The DPAs implementing the project prepared detailed annual reports describing the activities undertaken. For the PCR, the livestock Directorate (DE) prepared a synthesis of two reports by the DPAs of Ifrane and Khenifra, where the major physical achievements of the project were highlighted. However, the document lacked specific information on most aspects of project activities. Concerning the credit component, for example, the report showed only global amounts per province, with no details on credit distribution per type of credit (short-medium or long term) or on rates of credit repayments. As mentioned previously, due to the lack of monitoring and evaluation, the impact of the project on forest, range and agricultural production and on the preservation of natural resources cannot be measured. The qualitative assessment of project results was based on observations made by the mission during field visits and on discussions with staff of MARA, the DPAs and project participants.  - 13 - PART II: PROJECT REVIEW FROM BORROWER'S PERSPECTIVE (Translated from the original French version) A. Confirmation of factual data contained in Parts I and III on the whole. the information presented in Parts I and III agrees with that available in the two DPAs. Note: The Borrower requested some minor corrections to the text of the PCR and these corrections have been made. B. Remarks on the analvsis contained in Part I PAge iii (para. 7) 7. Livestock Development. The genetic improvement program has been carried out according to the sheep management plan guidelines. The project area - birthplace of the Timahdite breed - has created several farmers associations, all members of the ANOC (Association nationale ovine et caprine). Page 8 (b) Differences between estimates and realizations of sawlog and fuelwood exploitation activities: it must be remembered that the whole a4ea of forest exploitation, with which the project was concerned, is developed. Forest production is regulated and forecasts as to volume exploitation are based upon forest management plans. These forecasts, which take into consideration some specific cropping rules, remain nevertheless lower than the appraisal forecasts. It should be noted that even thougi. the elimination of mechanized forest exploitation has a negative impact on sawlog exploitation, it also has a positive impact by eliminating a management burden for the authorities. Improvement of exploitation methods will on the other hand give good results as far as fuelwood exploitation is concerned.  - 14 - Pages 8 and 9 Livestozk develolment: Positive results have been obtained by the ANOC Association (Boumia-Itzer and Tounfit) because of herd management, health, nutrition and genetic improvement measures. The National Commission has selected 1,680 from the 2,519 ewes presented, i.e. 66,75%. These results served as an example to other farmers who created an association at Aguelmouss-Mrit. Grazing improvement: Concerning pastoral improvement, the Feija range was not studied sufficiently. It should be noted that research triala have been conducted, which have resulted in the current range improvement program: the closing of the range has resulted in a spectacular regeneration. But lack of monivoring and evaluation has not allowed quantification of the impact of those actions. Goat zenetic improvement: Epidemiological circumstances in France and Spain did not allow the achierement of the program. In 1990, a goat station in the El Hammame rural district, financed by the capital budget of the Livestock Department, was established instead. It should also be noted that the infrastructure provided, in terms of breeding stations and equipment, particularly vehicles, permits the control of diseases reputed to be legally contagious. In addition, strengthening of equipment for conservation and processing of milk and its derivatives at the Zayane and El Ayachi milk cooperatives has improved milk production; 230 to 250 tons/year are currently being sold by the two cooperatives. Page 10 Para 6.9: "The funding of 28 ... ." is not clear and needs to be rewritten, pointing out that financing came from different sources, i.e. Middle Atlas Project, etc.. In any case, the methodology used by the Khenifra DPA was greatly appreciated during the supervision missions. Para 6.11: The project management is fully aware of the importance of monitoring and evaluation. This activity was only partially fulfilled because of project managers' frequent rotations and budgetary constraints. Monitoring of activities (physical and financial achievements) has been carried out in the two DPAs; but monitoring and evaluation of the impact of the transfer of new technology and of project activities were lacking, except for some short-lived actions which took place in the Ifrane area.  - 15 - C. Bank Performance The participation of the Bank har been active throughout the project's life, from, identification through completion. Through the frequent supervision missions it has contributed to the removal of several constraints during project execution. D. Borrower Performance The Moroccan authorities, aware of the importance of livestock and range development in arid zones, have undertaken the following actions in order to make the project a success: - establishment of the Ifrane DPA in 1986; - promulgation of decrees for the establishment of the grazing improvement perimeters of Timahdite and Ain Leuh; - establishment of a cooperative for the management of the water supply system; - active participation of staff of the Ministries of Interior and Information; - introduction of the national regional and inter-regional committees; In addition, the following actions have also been undertaken: - establishment of clan committees where farmers consult with each other on range improvement operations; - creation of a water charge for use of the water supply scheme at Timahdite, to cover recruitment of skilled manpower and spare parts for maintenance of the water supply scheme. E. Lessons Learned For future projects which are similar to the Middle Atlas Project in terms of size, climatic conditions, etc., the pctential delays in project execution generated by climatic conditions should be taken into acc ant at the appraisal stage. While it is true that the project was extended several times, the need for a longer implementation period should have been foreseen from the start in order not to adversely affect the project.  - 16 - Moreover, this type of project should be designed for a reasonable duration as natural resource development issues are often complex, in view of the diverse and sometimes difficult economic, social, institutional and agronomic environments. An eight-year project duration is estimated t.. be reasonable, with an eventual two-year excension. In order to ensure successful operations, a number of increasingly complex actions need to be undertaken as follows: (a) First, an observation phase allows for the creation of the p.oject's institutional and legal framework, the establishment of pastoralist groups, communal rangeland and extension. This phase mainly aims at securing the involvement of the range rightholders. Trials on range improvement and introduction of rainfed fodder crops are initiated. (b) A second phase is mainly dedicated to range management and to crop diversification in marginal areas. (c) The third phase is the full development s:age with a proper management of the environment taking into account the impact of livestock combined with appropriate techniques. F. Relationship between the Bank and the Moroccan Government Relations between the Bank and the Moroccan Government were good and this contributed to the satisfactory execution of the Middle Atlas Project.  - 17 - PART III - STATISTICAL INiFOTIQN Table 1. Related Bank Loans | oan/Credit 'itle Purpose Ye.an of Approval Status Loan 2590-M1OR Suppor- the irst phase if implementation aC the FYA py Cloed Jiunc 24 Amrculrhl Sector Advustrent Covemment's arogramme of adjustments in the 1997 agpicuIt.ral sector. The priaciphi objectives of E i ~~~~~~~the seotr adjustment programma are to uSnprove '; the growwt rate in agrieulture vithin the Overal' coi srra.,,ts in public rcsourcds. Loan 285-MOR Second Sipport the second phuecof implementatios of FY i8 Third Tranc " e Azricultural Sector Adiustment the Government's medium-term agicultural Releued |oa ft sector adjustment programme within the framcwork of a general macroeconomic restrucruring progSamme. Th essential a objectives are to foster effictent agriculturat grown' and to contribute to the reduction oat I)udgetay and current account d'eficius to ' ; i'' - 60M 2 0 ;'' 0 '; 0 tnitmanageable revecs.L If S60^MOR FCVYA Pia-Mis;t fImprove rural income and social well-beigof( e Y7" CloIseO 6/,O/ At ichI rw Poiee t ; 33,90 farm ra iTiea io t e Proje area througli'-: (a) -mnrvmenct to the =csarch andmeastoetsio cgnlcof~~ serAces,. (b) Lcreased credit avai[aoility, (c) , dat: 06/30186 improved input supp y, (d). erosion control, (e) -aasreland rehabiliWa:on and (fQ investments in infrastructure such a: roads, schools, health. i faciiities, and water supply. ___ _ _i LoarL 2217-MOR Oulmes- rImprove the living standards of the FY 83 Under superAsioh o Rommani Azncu _turat predominanlcy rural population living within the Development Proiect projecr area through development of agriculture Oriialt clossing 6 i . 0 X livestockand forestry and through provision. of dutc 12/31/8'' better social and agriculture services. Current closing. i______________________ j_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _i date 06130/92 Loan 134.-MOR Loukkos Runl Improve the agiculaurl systems prevaiiing in EY 80 Original c4osing .. Develoopmnt Proiect I.oukkcs watershed intot sustainable systems5 by . .date 6/1987 * , allevatirn the destructive efrects of soil erosion and increasing agricultural productiviry and Effeente closin:.. incomes of poor farmers. Project activities were date 12/71.98 to serve as a model. for wider replication, in the Rif region. j ,_-:_:,_ .._ Loan 1704 Fourth Avricultuni The projecr aims ar increasing Morocco's . :'Y 79 ;osed 6/30/83 Credit Proiect agricultural production thereby improving the: stndar- of living of abc it 475,000o Morocce&' farn famnlies. The proect, wil cover most of the : .. C,isse Nationalede Credit (CNC) ) me..u. : . and long-term endingprgmme and fartt ., investment programmt througth August I198Z :,. financing of TJSS75 rillion is provided by FAD: and KiW. Disbursemens are on schedule. To alleviate CNCA's short-term liquidity problems due to the recent drought, its lenders, including the Bank. have inecreased their disbursement percentages under their respective loans. ,_ ::___ Loan 2367-MOR Fnancing of etdvides of FY 84 Cosd 03/17/87 Firth A6&catunw Credit CNCA 196246. Total cc 8t Proiw USSl96 rulion Financed by . BM, FADES, &AID and KM. Loan 2731-MOR Finanos of advities of FY 87 Cosed M/90 Sixth nculntWat Credit CNICA 1967-1990 Total cosFt tUSS101 million co-fimaneed by BM and KXW.  - 18 - Table 2 - Projed T;metab Item Date Planned Date Revised Date Actual Identification (Executiv. May 1979 Project Summary) Preparation July 1980 Pre-appraisal Nov. 1980 Nov. 1980 Apprais mission April 1981 Oct. 1981 Loan/Negotiations Dec. 1981 Dec. 1981 Board Approval Jan. 1982 Jan. 1982 Loan/Signature March 1982 March 1982 Loaa/Effectiveness Sept. 1982 - Nov. 1982 Loan/Closingt June 1988 June 1989-Dec. 1990 December 1990 Loan/Completion June 1987 April 1991  - 19 - Table 3. Loan Disbursements A. Cumulative Estimated and Actual Dlsbursements IBRD Fiscal Year Appraisal Estimate AdJusted :stlmate Actual. % of Adjusted Semester Ending Eit 1/ A : : Estimate .......... ......... 4 USS million).... ... . . FY 83 December 31, 1982 0.2 0.0 June 30, 1983 1.0 0.11 0.0 FY 84 . December 31, 1983 2.5 0.33 0.7 212 June 30, 1984 5.0 0.66 1.1 166 December 31, 1984 7.8 1.1 1.3 118 June 30, 1985 11.0 1.59 1.8 113 December 31, 1985 14.6 2.25 2.0 89 June 30, 1986 19.0 3.02 3.2 100 EY 8 December 31, 1986 23.0 3.9 3.9 100 June 30, 1987 26.0 4.89 4.3 88 December 31, 1987 28.0 5.94 4.7 :80 June 30, 1988 29.0 7.31 5.3 72 December 31, 1988 8.69 7.3 84 June 30, 1989 9.79 7.5 77 December 31, 1989 10.67 7.6 71 June 30, 1990 11.0 8.7 79 EY21 December 31, 1990 8.7 79 June 30, 1991 9 82 1/ Basedon cancellationsof USSS million (November 1984), USS8 million (April 1987), and USSS million (December 1989).  - 20 - B. Planned and Actual Disbursements by Category Category Planned Revised Actual Actual/Revised _____......... ... - US$ million .............. % 1. Project works otber than 10 3.1 3.7 119 for water supply system and road construction A+B 2. Spraying program and 8.4 2.4 2.3 96 water supply system and road construction 3. Equipment, vehicles and 4.2 2.7 2.3 85 acquisition of selected animals 4. Consultants' and specia- 3.0 1.4 0.5 36 lists' services and training abroad 5. Operating costs 0.0 1.1 0.2 18 6. Unallocated 3.4 (J.3 TOTAL 29.0 11.0 9.0 c/ 82 a/ Loan agreement of March 1982. Total loan amount US$29 million. h/ Based on total loan amount of USS11 million after US$5 nillion cancellation (November 11, 1984), 2nd cancellation of US$8 million (Jan. 13, 1987), project restructuring and cancellation of US$5 million (December 18, 1989). c/ Balance of about US$2 million was cancelled at Loan closing (April 1991).  - 21 - Table 4. Project Implementation: Project Implementation Ratios Components Unit Projected SAR Revised in 1987 Actuil Act/Projected I-Forestry Devtlopment I. Forest ManaLement Plans Plans prepared for ha 36,000 36,000 100 a> :thfamucturqe: Fire towers units 9 5 1 it RAdioa units 37 48 130 Fire breaks kmn 40 7 18 ForeA demarcation posts 11,000 6,510 59 with posts Road Construction kmn 185 73 333/ 21 Road maintenance units 2 2 100 units Nurterics units 4 4 100 Forest reserve ha 180 0 0 (Seheb) b) Forest Production improvement Regeneration of ha 3,200 1,256 39 cedar forest Tihinning young ha 2,500 0 0 cedar Thinning holm-oak ha 15,300 13,25$ 9,619 63 coppice (of which 9,000ha Bouhsoussen) Plantation of conifers ha 250 2 00 80 2. Forest Services a) Construction Offices unihs 2 I0C Forest stations 8 25 Housing 59 98 166 Workshops 2 2 100 Hangar I I 100 b) Equipment Forest exploitation units 2 0 V equipment (for 2 unuts) Equipment for2 * 2 2 100 road-construction units Fir fighting equip. units 10 6 60 tankers 1/ Because contractor abandoned work.  - 22 - Components Unit Projeted SAR Revisd 19i 7 Actual Act/Projected Motocycles 49 10 20 Motorgrader 1 1 100 Mobile verk shop . 1 0 0 (rp airshop) Van 1 1 0 3. Forest xoitation units 2 r a Devartmental units: 4 insect Ctog= Spraying ha 59,000 31,464 53 Monitoringf/research uni t 1 1 100 units 5. Forcst RnC. Improved Mt (of which ha 202800 6,6001/ 23 12.000 ha Bouhsoussen Fodder shrubs ha 3,000 950 32 Other sylvopastoral ha 7,000 4,452 64 (rmseeding, fertilization) lI-Livestock Development a) Animal nutrition Range/Pasture fencing & ba 51,000 2,C0002/ 57 Management (Imnahdite, Ain leuh, Faija) Water suppfy system unit I I 100 (Timahdite) Water points units 14 6 43 Range fertilization ha 13,000 60 Range reseeding ha 2,000 Fodder shrubs (Faija) ha 500 30 6 Access roads (Tirnahdite) km 16 16 100 Training in rang staff B b) Animal husbandry health agns staff 183/ 254/ 138 study (cheese faetory) wnit 1 0 0 study (use of by I 0 0 products) study (animal I t improvemert) Construction Animal health centres uniu 9 6 66 1/ at Bouhsousn 2/ 7,500 ha at Timahdite are being managed with short or long term deferment 3/ incremental. 4/ total.  - 23 - Components Unit Projected SAR Revised in 1987 Adual Act/Pj eced Housing. 63 Z5 40 | Breeding statons: units for equines 6 5 3 60 forcratl 35 4 2 40 Livestock Ustions 3 0 4 Di'ps 1 * t8 8 44 0 Milk collection centres , 2 0 0 Sheeps station I 0 O.. Equipment Form equipment 70 4 6 Milk collection equip. is I 1 Cl Vehicles 24 24 IOO lUAgrcult. e Delopment I.Extenio Extesuion suff (new) suff 271" 40Y 14 local training study trips 0 o Extension Managemnent units 2 2 100 unit (subj.Mat.spec.) Conatction Construction unit. 16 7 44 rehabilitation of extension centres and sub-centres Housing 44 29 66 Warehouse 17 5 29 Workshop 2 2 100 Equipment for units 21 10 48 etcentres. Audio for resarch UNRA wor4hop etc... Vehicles units 45 22 49 Motorcycles . 36 26 71 2. lrriemtion investment a) Azrou Studies for rehabilitstion study I 0 0 of 9.60ha of exiting L,rigation Feeder road& km 44 22 0 0 Il incremennt! v/ total  - 24 _ Components Unit Projected SAR Revised In 1987 Actual i Act/Projected Planting of fruit trees ha 750 0 0 b) Midell Hiouiing units 9 4 44 Study unit I I 100 Rehabilitation of irtg. ha 2,000 398" .20 infrtnuctuhre Access roads km 27 0 0 0 Fruit tree plantation ha 250 0 0 0 Vehiclcs unit 6 IV-Technieal Assistance Exieasion long terrm TA m/m 72 12 17 Short term TA in n/rm 52 3 6 Research, Range, Forestry, Monitoring Table 5. Project Costs and Financing A. Project Costs 1. Estimated and Actual Costs Item SAR Estimate (mDh) Actual (mDh) Studies na 17.1 Forestry 140.9 46.8 Agriculture Developmentt 145.8 7.1 Livestock 66.3 32.8 Sylvo Past.' 31.4 na Small Scale Imgation' 31.5 1.0 Infrastructure 26.7 29.9 Total Project Cost5" 442.6 134.68 Total Cost- USS' 92.2 15.92 Note: Insufficient data is available to distinguish between foreign exchange and local costs. of which 248 ha are 25 % completed v Including incremenutl credit in SAR estinate 31 SAR did not distinguish separate categories v Probably not entire actual cost Excluding incremental credit. Actual estimate, it is not certain that all costs between 1988 and 1990are included. Actual estimate also excludes estimate on farm costa. 4' Using average USS/Dh exchange rates as Table S A2.  - 25 - 2. Estimated Actual Project Cost (mlDh) 1983 1984 1 1985 1986 1987 1988 1989 1990 1991 Total Studies1' 1.75 1.49 1.56 0.90 1.35 1.55 6.91 0.70 0.93 1?.14 Inf.lintucthre 6.52 0.90 2.55 3.57 2.80 6.28 1.49 2.31 3.45 29.S7 Agricultural 0.34 0.54 2.28 1.86 0.49 0.98 0.17 0.43 : 7.09 Uvestock 0.67 0.73 2.39 5.16 6.95 2.98 4,26 5.20 4.48 32.82 0ev. Forestry Dev. 2.48 5.97 8.68 3.63 8.58 6.28 3.78 4.49 2.90 46.79 0 Smaltl scale 0. 10 0.14 0.26 0.38 0.09 . - 0.97 imgation_ 11 86 9.77 17.72 15.5 20.26 18.07 16.61 13.13 11.76 134.61 Crd4iL4 Total project 11.86 9.77 17.72 15.5 20.26 18.07 16.61 13.13 11.76 134.68: Dh/USS 7.10 .8.80 10.10 9.10 8.40 8.20 8.48 8.00 8.00 Total USt$ 1.67 1.11 1.76 1.70 2.41 2.20 1.96 1.64 1.47 15.92 mrilion I_f_I__:_ B. Project Financing (US$ million) Source Planned Actual Loan Agreement IBRD 29.0 9.0 Govemmenel 41.9 12.7 CNCA credit 14.8 n.a contribution'/ Farmer's contribution 6.5 n.a TOTAL 92.2 21. 7 It is not excluded that part of the small-scale irrigation component is included in this item. 2v Mostly extension development 3/ No data available since 1988 4/ No reliable or indicative CNCA data on Incremental credit Costs. Project area available. Vt Mission estimate based on balance of the IBRD and other sources. di No CNCA data available at the time of PCR preparation.  - 2 6 - Table 6. Project Results A. Direct Results 1. Forestry Production Indicators Unit Appraisal Actual Actual % Projected (Total) projected incremental (year 5) - Cedar Sawlogs u3 300,000 250,039 na - Cedar Fuelwood Steres 50,000 na na Oak Fuelwood Steres 850,000 380,624 na Oak Charcoal Quintal 86,133 na  - 27 7 2. Range Forage Production Perimeter Situation at Appraisal Projected Situation Actual (1991) Actual % (Year 12) projected - - _____ - - -____ - - prodiu iAre Yield Production Area Yield Production Area Yield Productidon ion (000 ha) (FV/ha) (MiUion (000 ha) (FU/ha) (Million (000 ha) (FU/ha) (Million 1 f:: ::: 1'/ E1 J ) L EI)__ l. : .o :et 30.1 169 5.! 30.1 213 64na na n |-7Ranqge; ?76.0 173 13.2 76.0 228 17.3 na Da na n i Bouhsoussen Forest 67.3 326 21.9 67,3 528 35.7 4.8 7502/ 3.6 10 IAirS2 L 0.nf -Foste 44.3 173 7.7 44.3 271 12.0 no activity3' -Rang 71.7 350 25.0 71,7 547 39.2 no activity Timaltdite : FPOrea: 12.8 164 2,1 12.8 235 3.0 na na na | Range 39.5 250 9.9 39.5 467 18 4 7.5 480 ; 3.6 X: 20 FU - Feed Unit; Nutritive equivalent of Ikg of barley 2t Reported estimate 3/ With the exception of the sinking of water wells  - 28 - B. Economic Impact | URnderlying AssuLmptLons Appraisal Estimate ReestimnatedL ERR~~~~~~~ (at full development) Timahdite collective range 21 37 a/ Note: Reestimated ERR is based on an incremental annual production of 'Unite Fourrag6re' (UF = 1 kg of barley grain) from 250 to 480 UF/ha. Conversion rate UF/Kg Lw of 30 takes into account higher energy requirement of grazing sheep. Analysis also includes benefits from the animal health component on the basis of a decrease in mortality from 13 to 7% p.a. on the estimated herd on the managed range of 7,500 ha. Analysis carried out over 20 years. a/ Small Timahdite range component only. C. Studies Studies Purpose Status Impact of Study.: Forest road programme Implement 244 km Completed Better forest u.f forest roads on 148 km management -.Irrigation rebabitation Rehabilitate 1,640 Completed for 398 ha ha at Boumiia Khenifra rehabilitated' - Detail working plans at tribal level foi the development of: Midelt na na na Azrou Range Study done Fodder de% elopment for 25,000ha at production Timahdite increased by 92% Moulay Bouazza (Bouhssousen) Sylvo pastoral partially Fodder prod. Develop,ment completed reportedly increased by 2309 4/ d wt2S4 h aS nid  - 29 - Table 7. Status of Major Covenants (Loan No. 2082-MOR) Section of Loan Short Description Compliance Agreement Section: 3.01(c) Borrower shall ensure that CNCA make Full compliance agri. credit available to farmers in project area. Section: 3.02 Borrower shall appoint a manager for each Full compliance of the 2 road maintenance units assisted by staff. Section: 3.03 Borrower shall employ a logging consultant Cancelled on recommendation of and shall reorganize and monitor the the National Forest Council. results of the forest exploitation. Section: 3.04(a) Limit dimilin to 10% of spraying and a) Use of dimilin eliminated by provide the Bank with evidence of prior project mnanagement. warning and access control. Section: 3.04(b) Monitor and evaluate the results of the Full compliance. spraying programme and hire qualified consultants. Define pest management system and implement it shortly thereafter. Section: 3.05 Establish and staff a rural construction Full compliance agency in Borirnia and a sub-agency at Moulay Bouazza. Section: 3.06 Enter a contract for research between Full compliance DPAs of IFRANE and INRA annually. Section: 3.07 Select and employ consultants according to Partial compliance the Bank's guidelines. Section: 3.09 Devise a monitoring and evaluation system Partial compliance with consulting assistance and affect its operation Section: 4.02(c) Annual audit report Full compliance Section: 4.04(a) Establish annual grazing rates on forest Full compliance rangeland. Section: 4.05 Establish watering fee and fee recovery Full compliance system for Timahdite water supply system. Section: 4.07(a) Prepare guidelines for recovery of Full compliance investment costs on collective rangelands Partial compliance at (Timahdite and Bouhsoussen). Bouhsoussen Section: 4.07(b) Implernent collective rangeland cost Full compliance recovery proposals. Section: 4.08 Propose guidelines for cost recovery for Partial compliance Vsm.l!-scale irrigation investments. sma~~~~~~~~ .s  - 30 - Table 8. Staff Inputs A. Staff Inputs (staff weeks) TO TASK FY82 FY83 FY84 FY85 FY86 FY87 FY88 FY89 FY90 FY91 FY92 Total Preparation 209.6 - - - 209.6 Appraisal 85.4 - - - - - - - - - 85.4 Negotiations/Board 1.7 - - - - - - - - 1.7 Loan Processins (LOP) 10.0 - - - - - - - - - - 10.0 Sub-total 306.7 0.0 - - - - - - - - 306.7 Supervision 12.5 16.0 14.3 9.9 21.7 5.6 6.6 8.4 3.5 1.0 - 99.5 Annual Implementation - - - - 0.1 0.1 - - - - - 0.2 Review Project Administration - 0.4 - 0.3 0.4 - 0.1 - - - 1.2 Project Completion - - - - - - - - - 0.3 0.6 0.9 Report Sub-total 12.5 16.4 14.3 10.2 22.2 5.7 6.7 8.4 3.5 1.3 0.6 101.8 TOTAL 319.2 16.4 14.3 10.2 22.2 5.7 6.7 8.4 3.5 1.3 0.6 408.5  - 31 - B. Missions Stage of Project Cycle Month/Year No. of Persons Specialization Performance rating of project Identification 05/79 Preparation j/ 07/80 Appraisal - Pre-appraisal 11/80 - Appraisal 04/81 5 Economist, Rural Engineer, Agriculturalist, Livestock Specialist, Forestry Specialist Supervision - Supervision 1 05/82 4 Lcononists (2), Engineer, 1 Agronomist - Supervisioni 1 06/82 1 Forester 1 - Supervision 2 12/82 3 Agronomist, Livestock 2 Specialist, Forestry Specialist - Supervision 3 5/83 1 Agronomist 3 - Supervision 4 11/83 1 Agronomist 3 - Review 2/84 1 Forestry Specialist - Supervision 5 5/84 1 Agronomist 3 - Supervision 6 7/84 1 Forestry Specialist - Supervision 7 7/85 5 Agronomists (2), Livesto;k 3 (mid-term review) Specialist, Economist, Agronomist (consultant) - Supervision 8 10/85 2 Forestry Specialist - Supervision 9 5/86 1 Agronomist, Livestock Specialist 3 - Supervision 10 / 12/86 3 Agronomist 3. - Supervison 11 n.a.a/87 7 Agronomist, Livestock n.a. Specialist, Agronomist - Supervision 12 gj 7/88 2 n.a. n.a. - Supervision 13 11/88 1 Agronomists, Livestock na. Specialist - Supervision 14 5/89 1 Agronomist, Livestock Specialist 2 - Supervision 15 11/89 Agronomist 2 Supervision 16 6/90 Agronomist n.a. a_I Project preparation was essential'y undertaken by Moroccan staff with the assistance of FAO/CP. Several FAO,CFmissions took place between 5/79 and 7/80 for reconnaissance, pre-identification and preparation. Staff details are not available. 12/ Supervision reports for period 12/86 to 10/88 could not be found in project files.