Burkina Faso - Food Security and Nutrition Project

~~~~C_ / , C|I( / 'I,. Document of The World Bank FOR OFFICIAL USE ONLY Report No. 10615-BUR STAFF APPRAISAL REPORT E JUNE 17, 1992 Africa Region Sahelian Department Agriculture Division This document has a restricted distribution and may be used by recipients only in the performrance of their offici'al duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EOUIVALENTS Currency Unit = CFA franc (CFAF) US$ 1.00 CFAF 272 CFAF 1 million = US$ 3,676 SYSTEM OF WEIGHTS AND MEASURE: METRIC FISCAL YEAR January 1 - December 31 is report is based on the findings of a World Bank mission composed of essrs. Cadman Atta Mills (Senior Economist and Mission Leader), Ms. Tonia arek (Nutritionist and Co-Task Manager), Mr. Abdou Salam Drabo (NGO Advisor), d Mr. Celestin Bado (Operations Officer at the Resident Mission), which sited Burkina Faso in January/February 1992 to appraise this project. The ssion was held jointly with the GTZ of Germany. Further assistance was )rovided by Mr. Albert Djigma (Local Consultant), Ms. Kate Lifanda (Consultant an Nutrition), Mr. Yves Prevost (Consultant on Information Systems), and Mr. 'afando (Local Consultant, provided by UNICEF). Messrs. Jim Greene and J. W. van Holst Pellekaan were peer reviewers. Mrs. Katherine Marshall is the Department Directcr, Mr. Emmerich Schebeck, the Department Projects Advisor and the lead advisor for this project, Mr. Frangois Laporte, the Department Lead Economist, and Mr. Salah Darghouth, the managing Division Chief.  FOR OFFICIAL USE ONLY ABBREVIATIONS AND ACRONYMS AfBD s African Development Bank AGETIP : Agence d'Execution des Travaux d'Interet Public Contre le Sous- Emploi (Senegalese public works executing agency) BCEAO s Banque Centrale des Etate de L'Afrique de l'ouest (Central Bank of (Francophone) West African States) BSONG Bureau de Suivi des ONG (in the Ministry of Finance and Planning) CAPU : Central Accounting and Procurement Unit (in the Finance and Administration Department of the Ministry of Agriculture and Livestock) CBC s Conseil Burkinabe des Chargeuro (Burkina Council of Shippers) CCCE Caisse Centrale de Coop6ration Economique (French Development Bank for Economic Cooperation) CCI s Comite de Coordination de l'Information (an interministerial committee headed by the Directorate of Studies--DEP--in MAE) CEAO s Communaute Economique des Etats de L'Afrique de l'Ouest (Economic Community of West African States) CEDRES s Centre d'Etudes, de Documentation, de Recherche Economique et Sociale (Center for Economic Research and Social Studies) at the University of Ouagadougou. CESAO : Centre d'Etudes Economiques et Sociales de l'Afrique de l'Ouest (Center for Economic and Social Studies in West Africa) CFDT : Compagnie Frangaise pour le D6veloppment des Fibres Textiles (French Textile Development Corporation) COP Caisse Generale de P6r6quation (price stabilization board for imported basic commodities) CILSS : Comite Inter-Etats de Lutte Contre la Secheresse dans le Sahel (Inter-State Committee to Combat the Drought in the Sahel) CNCA s Caisse Nationale de Credit Agricole (National Bank for Agricultural Credit) CNCPC s Comite National de Coordination de la Politique Cerealiere (National Cereals Policy Coordinating Committee) CNLES : Commission Nationale de Lutte contre les Effete de la Secheresse (National Commision to Combat the Effects of Drought in the Ministry of Health and Social Affairs) CRPA : Centre R6gional de Promotion Agro-pastorale (Regional Centers for the Promotion of Agro-pastoral activities. There are currently 12 "CRPA regions" which cover 30 provinces.) CSPPA s Caisse de Stabilisation des Prix des Produits Agricole (Price Stabilization Board for (export) Agricultural Products) DIAPER : Systeme de Diagnostic Permanent (Permanent Survey of the cereals and livestock sectors) financed by CILSS DEP s Direction des Etudes et de la Planification (Directorate of Studies and Planning) EC European Community EPIC E Itablissement Public Industriel et Commercali (Publicly-owned Industrial and Commercial Establishment) EWS s Early Warning Systems FAC s Fonds d'Aide et de Cooperation (French Aid Agency Fund) FAO s Food and Agriculture Organization of the United Nations FEER Fonds pour l'Equipament et l'Eau Rural (an investment fund) FEWS s Famine Early Warning System ( a USAID project) GIE s Groupement d'Interet Economique (Economic Association) GMB s Les Grands Moulins du Burkina (Burkina Flour Mill) GRAAP s Groupe de Recherche et d'Appui pour l'Autopromotion Paysanne (and NGO Group for Research and Promotion of Participatory Training in rural areas) GTZ s German Technical Cooperation GV s Groupement Villageois (village cooperative unit) HHFSU s Household Food Security Unit ICB International Competitive Bidding 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.|  IEC Information, Education and Communication IFPRI I Internetional Food Pol' 2y Research Institute IMF t International Monetary Fund INADES s Institut Afric& -. pour l D6v.loppement Economique et Social (African Institute for Economic and Social Development) INERA s Institut National d'Etudes et de Recherche Agricole (Agricultural Research Inatitute) INSD s Institut National de la Statistique et de la D6mographie (National Institute for Statistics and Demography) LCB Local Competitive Bidding LIW s Labor Intensive Works MACP s MinistAre de l'Action Coop6rative Paysanne (Ministry of Cooperatives) MOAL s Ministry of Agriculture and Livestock (Minist&re de l'Agriculture et de l'Elevage--MAE) NGO s Non-Governmental Organization NSAS 2 Fational Survey of Agricultural Statistics OFNACER s Office National des C6r6ales (National Cereals Marketing Board) ONAC s Office National do Commerce Exterieur (National Foreign Trade Agency) ONBAH s Office National des Barrages et des Amenagements Hydro- Agricoles (A state institution for sapervising dame and irrigation schemes) PAS s Programme d'Ajustement Structurel (Structural Adjustment Program) PASA s Programme d'Ajustement Sectoriel de l'Agriculture (Agricultural Sector Adjustment Program) PFP s Policy Framework Paper PNGT(V) t Programme National de Gestion des Terroirs Villageois (National Village Land Management Program) PRSAP : Projet de Renforcement des Services d'Appui aux Producteurs 'Agricultural Support Services Project) SAL Structural Adjustment Loan SE s Soci6to d'Etat (state-owned enterprises) SECAL s Sector Adjustment Loan SEM s Societ6 d'Economie Mixte (Joint Venture Company) SIM s Systeme d'Information our les Marches (Market Information System) SOFIVAR s Soci6te de Financement et de Vulgarisation de l'Arachide (Grcundnuts Promotion Company) SONACOR s Societo Nationale de Collecte du Rim (rice processing company: subsidiary of CGP) SOSUCO : Societe Sucriere de la Como6 (Comoe Sugar Company) SPA Service Provincial de l'Agriculture SPONG s S6cretariat Permanent des ONG (an NGO consortium in Burkina) SOFITEX : Soci6te Burkina des Fibres Textiles (mixed state cotton company) SSA : Service de Statistiques Agricoles (Agricultural Statistical Service) UCECB s Union des Coop6ratives d'Epargne et de Cr6dit Burkinabi (Union of Savings and Loans Cooperatives of Burkina) UCOBAM s Union des Cooperatives Agricoles et Maratchares du Burkina (Union of Agricultural and Vegetables Cooperatives of Burkina) UGPT : Unite de Gestion Provinciale des Terroirs (provincial environmental management unit) UMOA : Union Mon6taire Ouest Africaine (West African Monetary Union UNDP : United Nations Development Programme WFP s World Food Programme  BURKINA FASO FOOD SECURITY AND NUTRITION PROJECT TABLE OF CONTENTS Credit and Proiect Summarv . . . . . . . . . . . . . . . . . . . . . . . . . i I. BACKGRQUND . . . . . . . . . . . . . 1 A. Introduction . . ........ ... .... .. ... 1 B. Agricultural Sector Performance and Food Inoecurity . . . . 1 C. Food Security and Nutrition: Government Strategy . . . . . . . . S D. Government Institutions Dealing with Food Security . . . . . . . 10 E. Role of NGOo . . . . . . . . . . . . . . . . ... . . . . 12 F. Links between Food Security and Nutrition and IDA Projects . . . 13 G. History of Bank Involvement and Sector Issues . . . . . . . . . . 14 H. Status of Project Preparation. . . . . . . . . . . . . . . ... 15 II. THE POPOSED PROJECT. . . . . . . . . . . . . . . . . . . . . . . . . . . 16 A. Project Rationale .a.l.e. . . . . . . . . . . . . . ...... . . 16 B. Project Objectives and Design . . . . . . . . . . . . . . . . . . 17 C. Summary Project Description . . . . . . . . . . . . . . . . . . . 18 D. Detailed Project Features .... . . . ...... . . . . . . . 19 III. PROJECT COSTS AND FINANCING . . . . . . . . . . . . . . . . . . . . . . . 29 A. Costs ...... . .. . .. . .. . . .. 29 B. Financing . . . . . . ........... . 29 C. Procurement .. . . . .. . . . . . . . . . . . ... . . . . . . 30 D. Disbursements . . . . .. . . . . . . . . . . . . 33 IV. PROJECT IMPLEMENTATION . ......................... . 35 A. Organization and Management .... . . . ...... . . . . . . 35 B. Implementation of Project Components . . . . . . . . . . . . . . 36 C. Project Monitoring and Reporting . . . . . . . . . .. . .. . . . 39 D. Accounts and Audit .. . . . . .......... . 40 V. BENEFITS AND RISKS ..... . .. . .. . . .. . . . . . . .. . . .. . 42 VI. AGREEMENTS. ASSURANCES AND RECOMMENDATIONS . . . . . . . . . . . . . . . . 43 I. Medium- to Long-Term Prospects for Growth II. Existing Information Systems for Food Security III. Links Between Food Security and Nutrition and Current IDA Projects IV. NGO Working Group Report V. Basic Statistics on the Four Selected Provinces VI. Existing Nutrition Education Programs VII. Cost Tables VIII. Draft Decrees: CNCPC and its Permanent Secretariat IX. Draft Project Key Indicators X. Supervision Schedule XI. Projected IDA Disbursements by Semester XII. Project Design, Criteria for Selection of NGOo and Income Generating Activities, Implementation Arrangements and Schedule  BURKINA FASO FOOD SECURITY AM) NUTRITION PROJECT Credit an" Proiect Summary Borrowert Burkina Faso Amount: SDR 5.5 million (US$ 7.5 million equivalant) Cofinancina: Germanj US$ 2.7 million, WFP US$ 1.1 million Terms: Standard IDA terms, with a maturity of 40 years Proiect Deecriotions The proposed project, which will run concurrently with the Agricultural SECAL, would extend and deepen the impact of reforms supported by SAL I and the Agricultural SECAL on food security and improved nutrition. The project will: at the national level, (a) reduce the Government's response time for reacting to national food crises, (b) improve the targeting of food security programs to concentrate on low income groups in drought-prone provinces, and (c) provide a data base and logistic frame for rational decision-making on food security and nutritional issues; and, at the household level, improve household coping mechanisms by (a) diversifying income sources of the rural poor for improved food security and nutrition, and (b) improve the efficient use of available household food resources to achieve better nutritional status for children below the age of three. The proposed project would provide assistance for^ (a) an institutional focal point within the Ministry of Agriculture and Livestock (the Permanent Secretariat of the CNCPC) for fcod security management; (b) an integrated Early Warnina Systems (EWS), and improving the data gathering and analysis capacity of the Ministry of Agriculture and Livestock (MOAL) which is essential for reducing the lead time for Emeraencv Preparedness (EP); (c) income-earnina opoortunities in some of the most drought- prone provinces during the dry season and period of low labor demand. A part of the existing WFP-supported food- for-work program, complemented by cash-for-work, will be redirected and focussed on poor households in drought-prone provinces; (d) income aeneratina activities directed oredominantlv at wgoen--essential for improved nutritional status of children; and (e) a nutrition Information. Education Communication JIEC) camoaian to bring about behavioral changes in child weaning and feeding practices.  - ii - Estimated Rroieot fiosts and Financina Plan: Summary of Proisect Cost Eatimates % Total Local Foreign Total Base (US$ Million) Costs A. Institution Building 0.6 0.9 1.5 13.5 B. Early Warning System 0.4 0.8 1.2 10.7 C. Labor Intensive Works 2.6 1.8 4.4 39.8 D. Income Gen. Activities 2.2 0.6 2.8 25.0 E. Nutrition IEC 0.6 0.4 1.0 9.5 F. Project Preparation (PPF) 0.1 0.1 0.2 1.5 Total BASELINE COSTS 6.5 4.6 11.1 100.0 Physical Contingencies 0.3 0.2 0.5 4.8 Price Contingencies 0.7 0.5 1.2 11.1 Total PROJECT COSTS 52 .3 12.8 115.9 Financing Plan By Source Local Foreian Total Percentaae