Uganda - Agriculture Sector Management Project

Document of The World Bank Report No. 14889-UG STAFF APPRAISAL REPORT REPUBLIC OF UGANDA AGRICULTURE SECTOR MANAGEMENT PROJECT March 6, 1996 Agriculture and Environment Operations Division Eastern Africa Department Africa Region  CURRENCY EQUIVALENTS Currency Unit = Uganda Shillings (Ush) US$1.00 = Ush 1000 (November 1995) Ush 1.00 = US$O.001 SDR 1.00 = US$1.48649 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS AGSEC - Agricultural Secretariat APC - Agricultural Policy Committee APD - Agricultural Planning Department APRF - Agricultural Policy Research Fund BOU - Bank of Uganda CSR - Civil Service Reform EFMP - Economic and Financial Management Project EPRC - Economic Policy Research Center GOU - Government of Uganda ICBP - Institutional Capacity Building Project IMF - International Monetary Fund MAAIF - Ministry of Agriculture, Animal Industry and Fisheries MFEP - Ministry of Finance and Economic Planning MNRL - Ministry of Natural Resources and Land MOLG - Ministry of Local Government MPS - Ministry of Public Service PEC - President's Economic Council PMC - Project Management Committee RC - Resistance Council LC - Local Council This document is prepared by IDA in collaboration with the Government of Uganda. The IDA team members consisted of Messrs/Mmes T. Dejene (Sr. Agricultural Economist, Mission Leader) ; P. Ahuja (Financial Analyst); J. Silverman (Principal Institutional Specialist) J. Makanda.(Accounts and Audit Specialist); V. Ashworth (Agriculturalist. Consultant); C. Saavedra (Agr. Statistician, Consultant); Mohamed Alin (Financial Analyst, Consultant); F. Byarugaba (Management Specialist, consultant). GOU Working Groups prepared project report and core members of the team consisted of Messrs/Mmes R. Tumusiime, F. Sewankambo; G. A. Otim; E. Apali; S. Bikangaga; J. Magezi-Apuuli; J. B. Semacula and R. Sabiiti. Lead Adviser is Mr. Nat Colletta and peer reviewers are Gaiv Tata and Ian Knapp. The sector Division Chief is Ms. Sushma Ganguly and the Country Director is Mr. James Adams.  4-- REPUBLIC OF UGANDA AGRICULTURAL SECTOR MANAGEMENT PROJECT CONTENTS 1. BACKGROUND ............................................ 1 A. Macroeconomic Setting ......................................................1l B. Country Assistance Strategy .......................................................2 C. Agriculture Sector Assistance Strategy .......................................................2 D. Institutional Capacity Building and Public Sector Reform .......................................................2 2. THE AGRICULTURE SECTOR ............................................ 5 A. Overview and PerforTnance ........................................................5 B. Policy and Institutional Reforms ........................................................6 C. Strategy for Institutional Development ........................................................8 D. Implementation Experience and Lessons Learned ........................................................8 E. Rationale for IDA Involvement ........................................................9 3. THE PROJECT ........................................... 10 A. Project Origin and Concept ....................................................... 10 B. Objectives ....................................................... 11 C. Project Description ....................................................... .. 11 1. Policy Formulation and Strategic Planning ....................................................... 11 2. Management Systems Reform and Training ....................................................... 15 3. Agricultural Data and Information Systems Strengthening ....................................................... 18 D. Project Cost and Financing ....................................................... 19 E. Procurement ....................................................... 20 F. Disbursements ....................................................... 22 G. Special Accounts ....................................................... 24 H. Auditing ....................................................... 25 4. PROJECT MANAGEMENT AND IMPLEMENTATION ........................................... 26 A. Overall Organization and Management ....................................................... 26 B. Detailed Implementation Arrangements ....................................................... 27 C. Reporting, Monitoring and Evaluation ....................................................... 29  -ii- 5. BENEFITS, JUSTIFICATION AND RISKS ............................................... 31 A. Benefits and Justification ......................................................... 3 1 B. Risks ......................................................... 34 6. AGREEMENTS, CONDITIONS AND RECOMMENDATION .................................... 36 A. Conditions Met Prior to Negotiations ......................................................... 36 B. Assurances Obtained During Negotiations ......................................................... 36 C. Conditions for Credit Effectiveness ......................................................... 37 D. Conditions of Disbursement ......................................................... 37 E. Recommendation ......................................................... 38 TABLES Table 1: Summary of Project Cost ........................................................ 20 Table 2: Procurement ......................................................... 21 Table 3: Estimated IDA Disbursement ........................................................ 23 Table 4: IDA Disbursement Plan ........................................................ 23 ANNEXES Annex 1: Letter of Sector Institutional Policy Annex 2: Organizational Structure Annex 3: Agricultural Policy Committee Annex 4: Agricultural Policy Research Fund Annex 5: Sector Investment Program Annex 6: District Planning Capacity Building Annex 7: Result-Oriented Management Annex 8: Internal Systems Improvement Annex 9: Training Fund Annex 10: Agricultural Data and Information Systems Annex 11: Detailed Project Cost Annex 12: Estimated Schedule of IDA Disbursement Annex 13: Schedule of Technical Assistance and Studies Annex 14: Supervision Plan Annex 15: Project Performance Indicators Annex 16: Output Indicators Annex 17: Documents in Project File MAP: IBRD2488IR  -iii- REPUBLIC OF UGANDA AGRICULTURAL SECTOR MANAGEMENT PROJECT Credit and Project Summary Borrower: Govermment of Uganda Implementing Agency: Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), Ministry of Local Government (MOLG), and Ministry of Finance and Economic Planning (MFEP). Beneficiaries: Sectoral ministries involved in policy forrnulation and agricultural data collation and analysis, Local Governments, Government and non-Governmental Organizations. Poverty: Project supports the key elements of GOU's primary objective of poverty reduction by improving capacity to address poverty reduction issues with proficiency, and enhancing the provision of public services. Amount: SDR 12.1 Million, (US$17.9 million equivalent). Terms: Standard, with 40 years maturity. Commitment Fee: 0.5 percent on the undisbursed credit balances, beginning 60 days after signing, less any waiver. Financing Plan: See para. 3.44 Economic Rate of Return: No ERR calculated, as project benefits are not readily quantifiable. Nevertheless, the linkage between project and macroeconomic setting, alternative project designs, fiscal impact, cost recovery and cost effectiveness of the project are analyzed Map: IBRD 24881R Project Identification No.: UG-PA-37582   -1- REPUBLIC OF UGANDA AGRICULTURAL SECTOR MANAGEMENT PROJECT 1. BACKGROUND A. MACROECONOMIC SETTING 1.1 Since 1987, the Government of Uganda (GOU) has been implementing an economic rehabilitation and reform program. It has been supported by a large number of donors, including IDA. Donors have continued to support the removal of the remaining constraints to growth, to create an environment in which private initiatives can flourish, and the efficiency of the public sector can be improved. The program is based on prudent fiscal and monetary management, and reform of the regulatory framework. To achieve macroeconomic stability and external balance, the Government is pursuing tight fiscal policies and continues to be active in absorbing excess liquidity from the market. Stability in external balance is also pursued through prudent macroeconomic exchange rate policies. A competitive and market determined exchange rate is being maintained, and efforts are being made to reduce dependence on coffee as the main foreign exchange earner. 1.2 Notable successes have been achieved in reforming and stabilizing the economy, and in implementing structural reform. Inflation fell to three percent in 1994/95 from a high of over 200 percent in 1988. Price controls on all commodities have been removed, and prices, in general are determined by market forces. In the financial sector, reform efforts have concentrated on freeing interest rates, increasing the efficiency of the banking system and increasing the autonomy of the Bank of Uganda. 1.3 During the initial phase of the reform, a growth rate of 6.6 percent in Gross Domestic Product (GDP) was attained. In 1993/94, real GDP growth slowed to about 5.1 percent (due to the sporadic drought) compared to 8.5 percent the previous year. Due to the substantial improvement in the terms of trade, GDP at market prices grew by about 10 percent in 1994/95. Overall economic growth during the period 1987 to the present has averaged about 5.8 percent, a gain of 2.9 percent per annum per capita. Agriculture contributes about 50 percent of GDP, provides employment for over 80 percent of the labor force and accounts for virtually all commodity exports. The manufacturing sector includes agro-based industries such as cotton, sugar, tea, coffee and tobacco, as well as import substitution sectors producing mainly consumer goods for the domestic market, and contributes well over 5 percent to GDP. The share of the service sector in GDP has remained at around 35 percent during the past ten years. The non- monitized economy is estimated at around 30 percent of GDP. 1.4 Reflecting the low international coffee price that prevailed since the collapse of the international coffee agreement in 1989, overall export performance was weak until the recent coffee boom. However, it was compensated by the rapid growth in the non-traditional export crops, such as maize, beans, fish, cut flowers and horticultural products, and private transfers,  -2- that resulted in an overall balance of payment surplus in 1994/95, and a significant increase in gross reserves over the previous years. On the other hand, Uganda faces a serious debt service problem. At the end of December 1994, its debt stock was more than 60 percent of GDP. The scheduled annual service payments accounted for around 52 percent of export value of goods and services in 1993/94; and about 24 percent in 1994/95. B. COUNTRY ASSISTANCE STRATEGY 1.5 The primary objective of the Bank's strategy for Uganda is to support the Government's strategy for poverty reduction and economic growth. This objective is consistent with the actions and measures laid out in the FY95-97 Policy Framework Paper agreed between the Government, IDA and IMF. Stimulating investment and growth in the private sector is the key to employment creation as the primary means of reducing poverty. IDA also supports the Government's emphasis on improving the delivery of public services through greater focus and prioritization of expenditures, and on the use of targeted programs and safety nets to assist the most vulnerable in society. 1.6 IDA's assistance will be focused on: (a) completing the on-going Government program of decentralization and civil service reform, (b) strengthening the poverty reduction strategy and programs of the Government, and (c) supporting agriculture, infrastructure and human resources development, with special emphasis on rural and gender aspects, poverty reduction and environmental protection. C. AGRICULTURE SECTOR ASSISTANCE STRATEGY 1.7 The Government's sector development objectives are to stimulate growth to meet the country's food requirement, generate foreign exchange and improve the living standard of the rural poor. The Government also intends to regain its market shares in traditional export crops such as coffee, tea and cotton, and diversify into new export crops, giving priority to commodities such as sesame, tobacco, hides and skins, spices, and fish. 1.8 At present, IDA supports the Government's objectives and programs in the sector by: (a) improving the impact and effectiveness of the existing portfolio of development interventions, (b) preparing and financing new projects that are in line with government priorities, and (c) undertaking pertinent sector work. IDA's future support to the sector will continue to include measures that: (a) strengthen institutional capacity in government and the private sector; (b) support agricultural technology generation and dissemination; (c) address the remaining reform agenda; (d) support diversification of agricultural exports; (e) facilitate the development of a market in rural finance, and ( f) address issues affecting natural resources management (land tenure, lake fisheries, wildlife, forestry) and environmental concerns. D. INSTITUTIONAL CAPACITY BUILDING AND PUBLIC SECTOR REFORM 1.9 The principal elements of the recovery and policy reform program, that started as early as 1981 and continued after the coming to power of the National Resistance Movement, are the  -3.- rebuilding and strengthening of the institutional structure of the Government. The Government's economic reform efforts were hindered by institutional structures and operating systems not suited to the new role of government, and to the country's present and future needs. Within the civil service, there are staffing and skills constraints, inefficient and cumbersome financial and operational management systems, low pay and low staff morale, weak management and organizational problems, poor records and data systems, and inadequate training. 1.10 Initially, the recommendations for alleviating these institutional constraints focused on providing technical assistance and training. In 1982, UNDP supported a program designed to strengthen the then Ministry of Planning and Economic Development's capacity to implement and monitor the Government's recovery program. As an early part of its efforts to assist the Government, IDA made available US$8.0 million to strengthen the planning capacity of the Ministries and other agencies under the First Technical Assistance Project (Cr. 1077-UG). The Agricultural Rehabilitation Project (Cr. 1328-UG), in addition to rehabilitating processing facilities for export crops and financing of imports of agricultural inputs, supported policy formulation capacity in the sector. It also supported the establishment of the Agricultural Secretariat of the Bank of Uganda and financed the Secretariat's Task Forces that formulated recommendations on agricultural prices, and prepared an agricultural development strategy that provided the basis for policy reform and served as a framework for government and donor investment. A Second Technical Assistance Project (Cr. 1434-UG), at a cost of US$15.0 million, was implemented to strengthen the Government's economic decision making, planning, project preparation and implementation capacity. The Third Technical Assistance Project (Cr. 1951 - UG) was launched (US$23.0 million) in 1989, along with the recovery program, to assist the Government to implement the agreed adjustment and reform measures. The objective of this project was to initiate a public sector reform program that addressed key management and administrative functions, including institutionalization of data collection and analysis in the Ministry of Finance and the Bank of Uganda, improving the budget process, strengthening the capacity for financial and economic policy formulation in the Ministry of Finance, and reforming the Government's procurement process. 1.11 In addition to strengthening institutional capacity, the Government supported divestiture of largely inefficient public enterprises and addressed major parastatal reform issues. The Local Governments (Resistance Councils) Statute 1993 created a process of decentralization whereby functions, powers and responsibilities were transferred from the Central Government to Local Governments and from higher Local Government to lower Local Government Councils. An on- going civil servicc reform program is focused on: (a) reduction in the number and size of ministries, (and thereby a reduction in the size of the civil service), and (b) increasing financial remuneration for the remaining civil service. This program will redefine the role of government, streamline government structures, eliminate redundant staff, restructure management systems, introduce a minimum living wage and create effective incentives structures for improved performance and service delivery. 1.12 Building on the success of the implementation of various institutional capacity building and reform programs, the Economic and Financial Management Project (EFMP) and the Institutional Capacity Building Project (ICBP) were designed in the last few years and are now  -4- under implementation. EFMP is designed to strengthen institutional capacity in key government agencies, especially in the financial sector, and to implement important elements of the civil service reform program. ICBP is focused on creating greater local institutional and human capacity to develop and implement public policy. In the area of Public Administration, the project will support the implementation of the Civil Service Reform in the Central Government and assist the government in its decentralization program. It supports improved local delivery of training in implementation skills in both the public and private sectors.  -5- 2. THE AGRICULTURE SECTOR A. OVERVIEW AND PERFORMANCE 2.1 Agriculture is the mainstay of the Ugandan economy, accounting for 51 percent of GDP and 90 percent of merchandise exports (1994/95). Eighty-seven percent of the population is rural and about 80 percent of the employed population is engaged in agriculture. Except for some sugar and tea grown on large estates, 94 percent of agricultural production, and virtually all food production, comes from about three million smallholders. 2.2 The country is endowed with some of the best agricultural land in the Region. It has a favorable climate, with ample rainfall, and little temperature variability. Of the 17 million hectares of land estimated as arable, slightly more than 5 million hectares are estimated to be under cultivation. This, on average, is 1.6 hectares of cultivable land per farm family. Of the total area under cultivation in 1994, 31 percent is under banana, a major staple diet, 27 percent cereals, 19 percent root crops, and the rest pulses, oil seeds, industrial crops, etc. 2.3 In recent years, agricultural GDP has grown rapidly. It increased from 0.1 percent average annual growth between 1983/84 and 1986/87 to an average annual growth of 5.6 percent between 1987/88 and 1989/90. This is a significant improvement, and is mainly due to the restoration of peace and order in the country. The performance of the sector in subsequent years, i.e., 1990/91 to 1993/94, slowed to an average growth of 3.5 percent per annum. The average for this period could have been much lower had it not been for the exceptionally high growth rate of 9.2 percent, attained in 1992/93, due to favorable climatic conditions after a relatively bad year in 1991/92. Growth slowed to about 3.2 percent in 1993/94 because of pockets of drought in the country, but recovered to about 6 percent in 1994/95. 2.4 Traditional export crops are still important, accounting for 80 percent of total merchandise exports, with non-traditional export crops contributing 12 percent in 1994/95. Coffee exports alone accounted for 75 percent of merchandise exports in 1994/95. The increase in the international coffee price in 1994/95 significantly increased the share of coffee in total and merchandise exports, and has resulted in a substantial windfall estimated at 6.6 percent of the GDP. Both the volume and value of agricultural exports improved in the last four years. 2.5 The potential for continued increases in agricultural output and productivity are good, and could be stepped up by technological improvement. Regional markets for food can be expected to grow, although intermittently. Uganda's favorable rainfall, fertile soil and location provide it with an opportunity to supply food cheaply to neighboring countries that are affected by recurring droughts. Prices for traditional export crops are low, and demand for Uganda's products in these markets is elastic. With the exception of cotton and tea, most crops grown in Uganda today, including food crops, are competitive in price and quality, in the international market. This optimism, however, has to be qualified. Improvements in technology that would lead to higher production are limited. Much of the growth potential through import substitution in the dairy, sugar, tobacco subsectors has already been exploited. Most of the previously  -6- cultivated area, abandoned during the strife, has been re-occupied. New yield enhancing technologies have to be created, area expansion possibilities explored and high value-added products introduced and expanded in order to increase the momentum. B. POLICY AND INSTITUTIONAL REFORMS 2.6 Policy Reforms. The Economic Recovery Program and the Structural Adjustment Program, followed by successive PFPs, have made positive contributions to the rehabilitation and restructuring of agriculture in Uganda. As a result, the liberalization of foreign exchange markets and external trade, as well as the privatization of the majority of public-owned enterprises, the streamlining of the public sector, and the easing of the regulations governing agricultural business operations, have all created an environment more conducive to encouraging growth and investment in the sector. 2.7 The sector adjustment program focused on pricing, production and marketing arrangements, particularly for strategic commodities such as coffee, cotton and tea. Today, all farm-gate prices are determined by market forces. The Government has relinquished direct participation in the importation and distribution of agricultural inputs. The monopoly of parastatals such as the Coffee Marketing Board, Lint Marketing Board and Produce Marketing Board has been eliminated. To further improve producer incentives, the residual export tax system was first replaced in 1991 with an advalorem tax system. In 1992, the advalorem and all other export taxes were abolished. 2.8 Competition was enhanced in the coffee subsector by the government strategy to liberalize export marketing to allow private sector participation. A major accomplishment in the tea subsector includes the repossession by the former owners of the estates that hitherto had been under the Custodian Board. This has led to the rehabilitation of the estates. To restructure the cotton industry, the Government has opened the cotton subsector to competition. It has passed a Cotton Development Statute to break the monopoly of the LMB and to allow private sector participation in cotton exports. A regulatory body for cotton, the Cotton Development Organization, that will replace LMB, has been established. The implementation of the IDA- supported Cotton Subsector Development Project will further support reform in the subsector by creating a viable incentive, institutional and regulatory system. Tobacco production has increased from 940 tons in 1987 to about 7,000 tons in 1994, surpassing the highest level reached in 1970. In the food and non-traditional export crops, reform started with the liberalization of markets, prices and trade in the late 1 980s. The monopoly of parastatals on the marketing of maize, beans, simsim, soybeans and groundnuts, was gradually eroded. Private traders entered into the domestic and export business in large numbers. As a result, there has been a steady increase in export demand for food crops. 2.9 Institutional Reforms. Uganda's effort to promote agricultural development was hampered by overlapping, uncoordinated and conflicting institutional roles and responsibilities. Several ministries and agencies were involved with the agriculture sector prior to 1992, including: Ministry of Agriculture, Ministry of Animal Husbandry and Fisheries, Ministry of Cooperatives and Marketing, Ministry of Environment Protection, Ministry of Lands and  -7- Surveys, Ministry of Local Government, Ministry of Women Development and Ministry of Planning and Economic Development. 2.10 The Government recognized the inherent weakness and difficulties that arise from the proliferation of institutions and, therefore, took steps to improve the situation. The Public Service Review and Reorganization Committee undertook a study and recommended reduction in the number of ministries and the civil service. On the basis of its recommendations, the Ministry of Agriculture was merged with the Ministry of Animal Husbandry and Fisheries, and formed the Ministry of Agriculture, Animal Industries and Fisheries (Annex 2). The Ministry of Cooperatives and Marketing became part of the restructured Ministry of Industry and Trade. The committee also recommended that all research be coordinated under one organization, and created the National Agricultural Research Organization. The organization is an autonomous body managed by a Board of Directors, whose chairman is appointed by the Government. Along with the restructuring, the Government decided to devolve political and administrative power to the districts and self-accounting Urban Councils. As a result, most functions that were carried out by the central ministries were decentralized to local governments, including personnel and finance, under the Local Governments Statute of 1993. 2.11 During the time that institutional proliferation was making coordination of agricultural policies and programs difficult, the Government created an inter-ministerial body called the Agricultural Policy Committee (APC). The purpose of this committee was to serve as a high level policy formulation and coordination body in the agricultural sector reporting directly to the Presidential Economic Council (PEC). The APC, chaired by the Permanent Secretary of MFEP, drew its members from the Permanent Secretaries of Agricultural ministries and managers of agricultural agencies. It had an Agricultural Secretariat (AGSEC), recently renamed Agricultural Policy Committee Secretariat (APSEC), that initially provided technical backstopping and advice in the areas of pricing and agricultural policy related issues, and over time increased its scope of work to include cross-sectoral coordination. For administrative reasons, the AGSEC was attached to the Bank of Uganda (BOU). However, under an ongoing restructuring in the BOU, the AGSEC was declared non-core, and is now housed under the MFEP. In a recent review, the APC/APSEC's role and functions are redefined, its structure streamlined, and its relationship with other agencies agreed with among all concerned (Annex 3). 2.12 In the last few years, new non-governmental organizations emerged and others were strengthened, changing the institutional landscape in the agriculture sector. The Uganda Cooperative Alliance (UCA) has assumed a greater role, serving as an apex body for agricultural cooperatives in the country. The new Cooperative Societies Statute of 1991 paved the way for the restructuring of primary societies, district unions and apex organizations. Under the Statute, cooperatives are "private" companies owned by users. UCA is an apex organization that serves about 1.6 million of the 2.5 million cooperative farmers in the country. The Uganda National Farmers Association is another non-governmental organization, created in 1992 to bring together all farmers and farmers' organizations with the objective of promoting their activities and interests. These institutions are expected to play a critical role in the future agricultural development of the country.  -8- C. STRATEGY FOR INSTITUTIONAL DEVELOPMENT 2.13 The focus on institutional development and reform in the agriculture sector has resulted because of a shift from pervasive controls, in which the public sector was directly involved in production and marketing, to one of a decentralized, facilitative and market-driven approach. Government focus is now shifting to provision of basic agricultural and rural infrastructure services. This shift emphasizes the role of market forces and the active participation of the private sector in marketing and production of agricultural commodities and services. 2.14 The rapidly changing global and domestic economic environment also calls for a new approach to the way in which the Government does business. The role of the government in the sector has to be redefined and priorities clearly identified. Financial and management rules and budget systems, which free-up organizations, work units and individuals to achieve the strategic goals, need to be formulated. Finally, flexible organizational arrangements which facilitate performance and support the implementation of priority programs have to be in place. 2.15 The strategic objective of the Government is, therefore, to create an institutional structure and operational arrangement that is results-oriented, transparent, and flexible. In the agriculture sector this will be pursued by: (a) strengthening the analytic capability of public agencies with a view to developing a policy analysis, budgeting, project and program preparation capacity; (b) changing the legal and regulatory framework to promote an enabling environment for the expansion of production, trade and investment; and (c) improving the implementation capacity at the district and lower levels. The proposed project fits into the overall strategy for institutional development. The objectives of the project, i.e., enhancing analytic and implementation capacity at the National and district level, improving efficiency and effectiveness of public agencies and strengthening the information system, are consistent with the overall strategy, and its components would help to realize the institutional development objectives of the GOU. D. IMPLEMENTATION EXPERIENCE AND LESSONS LEARNED 2.16 IDA has financed several agricultural projects in Uganda. The Agricultural Rehabilitation Project, (Cr. 1328), Northern Uganda Rehabilitation Project, (Cr. 2362), and South West Region Agricultural Rehabilitation Project, (Cr. 1869), were designed to rehabilitate the sector after the devastating civil war. Major national agricultural extension and research operations are underway (Cr. 2446 and Cr.2424) to ensure the testing, development and dissemination of technologies to farmers. Reforms in production and marketing of critical agricultural commodities such as coffee, cotton and non-traditional export crops are also supported though the Agricultural Sector Adjustment Credit Project, (Cr. 2190), a hybrid operation consisting of a sector adjustment and a complementary investment component, and the Cotton Subsector Development Project (Cr.26090). In almost all cases, project performance has been adversely affected by inadequate counterpart funding, inadequate salaries and incentives for staff, weak management and financial systems. The issue of counterpart funding is being resolved through the prioritization of public expenditures and the salary and incentive issues will be addressed though the civil service reform process that under implementation by GOU, and supported by IDA and other donors. Support to line ministries to improve the capacity for policy  -9- analysis and formulation has been limited to date and, consequently, policy analysis and formulation remained ad hoc and weak. Support is now being directed to ministries and agencies who have the mandate and the appropriate institutional set-up to ensure sustainability. The IDA-supported Technical Assistance Projects in Uganda, Agricultural Sector Management Project I and II in Kenya (Cr. 1718 and Cr.2445), Agricultural Sector Management Project in Tanzania (Cr.2537) and other technical assistance interventions in the region have also provided useful lessons for the design of this project. The review of these and several other institutional development projects by the Bank's Operation and Evaluation Department shows that the "process" rather than the blueprint approach is the key for the success of most technical assistance projects. This approach is better equipped to: cope with uncertainties of the environment it is applied and enhance flexibility; nurture ownership and build commitment; and emphasize learning and capacity building. Based on lessons of experience, the process approach is applied in the design of the proposed project with the aim to adapt objectives to changing circumstances. Other experiences incorporated in the project design include fostering government commitment and ownership, harnessing local/domestic capacities and striving for improved project quality at entry into the portfolio. E. RATIONALE FOR IDA INVOLVEMENT 2.17 The Bank's assistance strategy for Uganda is to reduce poverty. One of the key elements of this strategy is to enhance the provision of public services, through appropriate measures including capacity building, with emphasis on ensuring that the services reach the poor. The other key element is maximizing labor-intensive economic growth. The proposed project is aimed at institutional capacity building in the agricultural sector, to address poverty reduction and growth issues through strengthening the public and private sector. Growth of the economy, particularly, growth in the agricultural sector, and the reduction of rural poverty would largely depend on the soundness of policies, strategies and programs that the Government would adapt in the medium and long-run. It would also depend on the capacity to carry out the policies and strategies. IDA's support to improve public and private sector capability to formulate strategic polices and programs would make a significant contribution to achieving the Government's objectives of growth and poverty reduction. 2.18 IDA's involvement in this regard is essential to address in a systematic manner both the institutional constraints (weak personnel, financial and asset management, poor information systems, weak analytical and implementation capacity, etc.) that on-going projects face, as well as to lay the foundation for future agricultural operations which would require a sound policy and regulatory framework in order to be implemented effectively. ASMP has strong linkages with all agricultural sector and institution capacity building operations of the Bank. It would improve overall agricultural sector policy formulation and implementation capacity, strengthen the management and administration of projects, assist the Government to move towards sector investment programming, and strengthen linkages with other sectors.  -10- 3. THE PROJECT A. PROJECT ORIGIN AND CONCEPT 3.1 The GOU originated the project concept and design, and had full responsibility for project preparation. In July 1994, the GOU requested IDA's support to strengthen MAAIF's strategic planning and policy formulation capacity, and for human resource development in the sector. A project identification mission visited Uganda the same month and an agreement was reached to work on a project aimed at improving the policy formulation and strategic planning capacity, improving internal management systems, and assisting in the upgrading of skills and knowledge in the sector. The GOU set up a Project Steering Committee (PSC) to oversee project preparation, with the Permanent Secretary of MAAIF as its Chairman. Membership in the PSC included: Commissioner, Local Government Department, MOLG; Commissioner, Economic Planning Department and Commissioner, Statistics Department, MFEP; Commissioner, Administrative Reform, Ministry of Public Services (MPS); Director, Agricultural Secretariat of APC; the three MAAIF Directors - Animal Resources, Crop Resources, Agricultural Extension - and the Commissioner, MAAIF, APD. Four Working Groups were set up for technical preparation of the project: Sector Planning and Analytic Capacity Building, Human Resources Development, Internal (MAAIF) Systems Improvement; and Agricultural Data and Information systems. Sub-groups were formed within the working groups to carry out distinct tasks, and local and international consultants were recruited to fill skill gaps identified during project preparation. 3.2 Apart from its capacity building benefits, the participatory approach to project identification and preparation brought together officials, within and outside MAAIF, who have a much clearer understanding of issues and constraints faced by the sector. The participation of decision-makers also ensured adequate coverage of pressing issues and Ugandan ownership of the project. 3.3 The preparation of the draft project proposal took about six months, and IDA was invited to pre-appraise the project in April/May 1995. As part of the pre-appraisal process, a workshop attended by participants from various government agencies and donors was organized to discuss the Government's project proposal. IDA's pre-appraisal mission actively participated in the workshop and benefited from the interaction with participants. After completing the pre-appraisal in Uganda, the team that was responsible for coordinating project preparation came to Washington to participate in the drafting of the white cover SAR and to initiate the preparation of the Project Implementation Plan (PIP). The project was appraised in July 1995, jointly with the GOU. The joint mission consulted all the major stakeholders, including major donors, about the project design and the activities proposed therein. The heads of agencies who will participate in the implementation of components or sub-components of the project were asked for their comments and all of them provided useful inputs to the review process. Finally, the draft  -11- report was discussed in the APC meeting and in a wrap-up meeting with the Project Steering Committee. B. OBJECTIVES 3.4 The proposed Agricultural Sector Management Project (ASMP) will support the implementation and enhance the effectiveness of the Government's ongoing civil service reform and decentralization programs. These programs have the broad objectives of creating a liberalized enabling economic environment, conducive to promoting the private sector as the engine of economic growth, and decentralizing to the districts the responsibility for providing core services and fostering rural development. 3.5 Within this framnework, the three broad objectives of ASMP are: (a) to enhance analytical capacity for policy formulation and monitoring in the agricultural sector, in general, and within MAAIF, in particular; (b) to improve the responsiveness, efficiency and effectiveness of the MAAIF in carrying out its redefined role in agricultural sector management through reforming management systems and improving internal procedures; and (c) to strengthen agricultural information systems. 3.6 These objectives would be implemented through three main components: (a) policy formulation and strategic planning; (b) management systems reform and training; and (c) agricultural data and information systems strengthening. These components are described below. C. PROJECT DESCRIPTION 1. Policy Formulation and Strategic Planning (US$8.3 mil.) 3.7 This component would have four sub-components: analytical capacity building focused on APD; an Agricultural Policy Research Fund to foster sector-wide policy research and analyses; preparation of an agricultural sector investment program (ASIP); and district-level planning and capacity building. 3.8 Analytical Capacity Building (US$2.8 mil.). This sub-component would aim to strengthen analytical capacity to formnulate agricultural policy and define strategic priorities within the agricultural sector in general and the APD in particular. It would provide selective technical assistance in policy and strategy formulation and analysis, financial analysis and business management, and production economics and farm management. Staff skill capacity would be strengthened in parallel through advanced education fellowships, and short courses in relevant subject matters. 3.9 Capacity building would be further facilitated through a twinning arrangement with the Makerere-based Economic Policy Research Center (EPRC), an autonomous institution (supported by the African Capacity Building Foundation) engaged in policy  -12- related research. This arrangement would allow APD and APSEC staff to participate in selected research programs with a view to gaining first hand experience. 3.10 Provision has also been made under this component for undertaking relevant policy-related surveys and studies, in areas such as, cost of production, social accounting and policy analysis matrices, policy impact evaluations, markets and price analysis, competitiveness analysis, etc. The activities under this component will not include technical research. This aspect of research is presently carried out by the National Agricultural Research Organization (NARO) under an IDA supported national program (Agricultural Research and Training Project). However, the two sets of research activities are mutually supporting and would be coordinated through the Agricultural Policy sub-Committee of the EPRC whose membership would include a representative from NARO. Procurement of vehicles, computers, office equipment and facility improvement for enhancing the work environment and improve the operational facilities available to APD staff, would also be supported under the project. 3.11 The project would also support the APC/APSEC to effectively implement its new and redefined role and functions after the support under the Cotton Subsector Development Project comes to a close in 1998. Provision has been made under ASMP to enable the APC to periodically review strategies and policies of the agricultural sector, and coordinate and harmonize reform and sector programs. This support would include training of staff, consultancies for short-term assignments and replacement of vehicles and equipment. 3.12 Detailed description of the revised role of APC/APSEC is provided in Annex 3. 3.13 Agricultural Policy Research Fund (APRF) (US$1.2 mil.). The aim of the APRF would be to foster policy-related analytical skills-building and to contribute to a deepening of understanding of issues among a wide spectrum of agricultural sector stakeholders. Any qualified public or private sector institution or agency would be entitled to apply for assistance from the APRF to finance research and analysis which would enhance local knowledge and skills in agricultural policy formulation. The fund would be administered through the EPRC under an agreement which would, inter alia, specify the procedures and the criteria to be used for approving grants. 3.14 A key result of the component would be to: (a) identify opportunities, key areas of growth, benefits, and risks related to implementing sector policies, programs and projects; (b) amend regulatory, infrastructural and institutional arrangements which affect the performance of the sector; and (c) provide decision support and facilitation services to the Ministry and the Government, as policies and legislation affecting the sector are developed and implemented. 3.15 As part of the process of initiating the Fund, EPRC would convene a National Agricultural Policy Forum every year. The aim of the forum would be two-fold: first to build consensus on what are the current priority policy and strategic issues; and second, to promote debate and interest among a wide range of agricultural stakeholders. All  -13- interested stakeholders would be invited to participate, and raise any agricultural policy related issue which they considered important. EPRC would synthesize the views from the Forum and present its recommendations to the Agricultural Policy Sub-committee of the Board of Management of EPRC, and seek approval on the broad priority areas and topics for research and analysis. The Board of Management, in close collaboration with MAAIF officials, would also ensure that the findings and recommendations of the research and analysis would be translated into actions by the decision-makers as needed. 3.16 Within the framework of the key research areas and the priority issues approved by the sub-committee, proposals for research would be divided into two groups depending on their suitability for assistance from the proposed two APRF windows -- the competitive research window and the capacity building window. As the name suggests, the first or the competitive window, would be used to fund comparatively elaborate and technically demanding policy related research on a competitive basis. EPRC would, by way of public advertisement, invite qualified Ugandan institutions, consulting firms or individuals to bid for research on a priority agricultural policy related topic or issue. The analysis would be elaborate, and would take longer to complete. Accordingly, an applicant's experience and qualifications would be of a high standard. The research, under this category would qualify for a large grant from the APRF. 3.17 The second window, the capacity building window, would be used to finance less elaborate analyses requiring lower level input and time. A much wider participation would be encouraged. Any experienced and qualified individual or institution (universities, colleges, institutes, government agencies, etc.) could make a proposal to EPRC for assistance from the fund. Once a proposal has been broadly accepted, EPRC would, if necessary, provide guidance to the applicant(s) on how to carry out the work. Topics to be analyzed would be within the broad bounds of priority areas agreed upon at the annual agricultural policy forum. 3.18 Detailed description of the operation of the APRF is provided in Annex 4. 3.19 Sector Investment Program (US$1.5 mil.). To facilitate GOU's desire to replace the present discrete project approach with coherent national programs, development as the vehicle for promoting investment and growth in agriculture, a nationwide medium-term agricultural sector investment program (ASIP) would be prepared. It is envisaged that ASIP preparation would take about two years. The participation of all major stakeholders (private and state) and donors would be a critical feature of the process. The ASIP preparation would be carried out in two phases. The first phase would define sector priorities and strategies and the roles of the various stakeholders in implementing these strategies. An ASIP Task Force comprised of representatives from MAAIF, MFEP, and other concerned Ministries and agencies including districts, universities, NGOs and private sector institutions would be formed. The task force would be led by a qualified and senior Government appointed manager. Working groups, each comprising of about four members, would review the public versus private sector role and strategic objectives. These could also include: the remaining  -14- policy reform agenda; the role of district administrations in agricultural development; the regulatory role of public institutions in agriculture to ensure efficient provision of public goods and sustainable natural resource development; and food security as a national goal; rationalization of roles and functions within the agricultural sector in general and MAAIF in particular. Their findings and recommendations would be incorporated in an Agricultural Sector Strategy Paper which would be produced within six months of project effectiveness, and would be presented to the Agricultural Policy Committee (APC), and the Cabinet or the Presidential Economic Council (PEC) for review and approval. 3.20 Once the strategic results have been endorsed, through the Agricultural Sector Strategy Paper, the second phase would begin with the creation of subsectoral working groups which would identify key areas and prepare a number of high priority subsector investment programs. The main subsectors could include: agricultural services, including agricultural research and extension; livestock production and animal health; agribusiness, processing and marketing; rural infrastructure; food and export crop production and marketing; agricultural education and training; and agricultural institutions' development including farmers' associations and cooperatives. These proposals would provide the basis for ASIP, and would be finalized within two years of credit effectiveness. Project support for the ASIP preparation would include provision of transport facilities, secretarial services, limited office equipment, local and limited foreign technical assistance, and sundry task force related expenses. 3.21 Detailed description of the ASIP is provided in Annex 5. 3.22 District Planning and Implementation Capacity (US$2.8 mil.). Districts would be assisted in strengthening their strategic planning and implementation capacity through: (a) training of individuals and groups in districts and below district levels in strategic planning, (b) preparing guidelines for agricultural development plan preparation, and (c) supporting plan formulation, that would feed into the overall agricultural sector strategy and ASIP. 3.23 The sub-component would be implemented in two phases. The first phase would be the Guidelines Preparation for District Agricultural Plans. Representative districts would be selected and would be used for developing the guidelines. The first phase would be completed by credit effectiveness. The second would be the actual plan preparation for all the districts, based on the guidelines. The plan preparation would be carried out in two years, covering 20 districts the first year and the remaining 19 districts the second year. Therefore, part of the district agricultural plan preparation would be completed within one year, and the rest within two years after credit effectiveness. A key objective of the proposed planning process would be to progressively build up a broad data base on district and community resources, production constraints and potential. 3.24 Successful introduction of strategic planning at the district level and below would depend largely on the scope, relevance and quality of training, and the project would  -15- provide financing for this purpose. Broad areas of training could include participatory planning, identifying needs and opportunities, defining constraints, appropriate resource allocation, inter-sectoral linkages, gender sensitization, etc. Training recipients would include farmers, members of Local Councils (LCs), staff of the District Production and Marketing Departments and other stakeholders such as NGOs that provide support to the agricultural sector. The project would support the preparation of plan guidelines, and plan preparations. Districts would have access to resources for procuring the services of technical experts for this purpose, and the APD would play a central role in providing technical backstopping. 3.25 A detailed description of the District Planning and Implementation sub- component is provided in Annex 6. 2. Management Systems Reform and Training (US$5.9 mil) 3.26 Management reform and training would aim to enhance the performance of the key public institutions in the agriculture sector, by: (a) improving internal systems; (b) reforming the management system, and (c) supporting demand-driven training. The reforms would include: the design and implementation of internal operating systems and procedures; and second, preparation and introduction of a result-oriented management (ROM) system, while a training fimd would be established to finance demand-driven training under the project. 3.27 Internal Systems Reform (US$1.7 mil). As an integral part of the preparation for ROM introduction and ASIP implementation, new internal systems and procedures would be designed and introduced. Managing MAAIF's transition to a new role calls for reforming the internal administrative and management systems, including: (a) accounting and financial management; (b) procurement, maintenance and asset management; (c) internal audit; (d) personnel management; and (e) information systems. The respective improved systems would be designed through an Internal Administration and Management Systems Improvement Study, that comprises integrated studies in financial management and accounting; procurement; asset maintenance and management (including vehicle management); computerization; and human resource development in areas relevant to the activities covered under the study. The studies would, inter alia, critically examine the new structures of MAAIF and the information needs for various users, and design appropriate systems to meet these needs. In each case, the studies would develop a time-bound implementation plan for the recommended systems, and would be designed to be compatible with the principles and needs of ROM and ASIP. The studies would be completed within six months of credit effectiveness, and implementation of the study's recommendations within one year of completion of the study. 3.28 As part of the internal systems reform it is proposed to introduce specialized management units for financial management, procurement and maintenance, personnel management and internal audits. Through a large number of projects, MAAIF receives  -16- significant investment assistance from donors which are currently accounted for outside the Government system. The accounting and financial management and procurement systems, which have proliferated under various donor-financed interventions, would be rationalized. This would be achieved through the creation of a Financial Management Unit and a Procurement and Maintenance Unit to manage all accounting, procurement and asset management. The project would provide support for the recruitment of a local Financial Adviser and a Procurement Specialist charged with operationalizing the new system, setting procedures, and strengthening capacity. Staff training programs on accounting and donor procurement procedures would be supported under the project. Project support would also include logistic improvement through computers and other office technology to be identified under the studies. In addition to government and donor procurement functions, the procurement specialist would implement an asset management and maintenance systems. By December 1996, the units needed to implement the internal system improvement component would be established and staffed, and a unified financial and procurement system would be fully operational. 3.29 The project would also support: (a) the recruitment of an internal auditor to set up the internal audit, recruit and train support staff, and design the appropriate internal audit procedures; and (b) the requisite office technology for this function. The internal auditor would work closely with the MFEP responsible for the internal audit under the EFMP. Support for personnel management would complement the ODA support to MPS for the strengthening of personnel records management. Building on the pilot program carried out in the Ministry of Trade and Industries, the project would support the piloting of the records management system in the MAAIF personnel unit and the acquisition of the appropriate computer hardware and software. MAAIF currently lacks a central library and documentation center to serve as a repository of both technical and other relevant sector information. A central library and documentation center to serve the needs of all MAAIF directorates, departments, districts and other stakeholders would be established under ASMP. Support would include appropriate library equipment and furniture, an initial stock of reference and technical books and librarian training. The library would be operational within two years of project effectiveness. 3.30 A detailed description of the Internal Systems Improvement component is provided in Annex 7. 3.31 Management Reform(US$O.8 mil). The future adoption of ROM throughout the civil service is a key feature of the on-going CSR in Uganda. Under the ICBP, it is planned to introduce ROM into the Local Governments and GOU's budgeting procedures by FY1996/97. The initial preparation for ROM adoption in a number of priority Ministries, including MAAIF, would be done under the ICBP. Under ASMP, provision would be made for the detailed preparation for, and transition to, ROM within MAAIF. It would be done in close cooperation with MPS and MFEP. The introduction of ROM would maximize the effect of CSR and facilitate a fundamental change in the institutional work culture. The detailed preparation and implementation of ROM would commence with in one year of project effectiveness.  -17- 3.32 Until the full introduction of ROM, the project would support APD to introduce improved management systems. This would include completion of ar. annual work agreement, at the beginning of each fiscal year, with MAAIF Departments and other agencies who seek its services. The agreement would, inter alia, specify the principal assignments to be undertaken by APD, expected output or service, and completion time. APD would charge fees for the services rendered to MAAIF Departments/other agencies. Likewise, the other MAAIF Departments would also be encouraged to do the same with the aim of introducing a Ministry-wide cost recovery mechanism. This mechanism would ensure that public services are demand-driven. Assurances that these practices would be adopted, were obtained during negotiations (see para. 6 2a). 3.33 A detailed description of the Management Reform through result-oriented management systems is provided in Annex 6. 3.34 Training Fund(US$3.6 mil) The project would introduce demand-driven training in the sector by placing the requisite fund in the hands of institutions needing the training. The training to be supported under this component would be targeted to meet Government and other public sector demands. It would focus on middle and high level staff involved in policy analysis and formulation, strategic planning, agricultural information generation and dissemination throughout the sector. It would attempt to meet training demands that are not met through existing IDA and other donor-funded programs, and would not cover training of farmers or field extension workers, etc. The latter is supported under the on-going Agricultural Extension Project. Initially, a needs assessment study would be carried out to identify the gaps in technical, implementation and management skills of senior and middle grade staff of MAAIF, and staff of other institutions participating in the implementation of the project. The study would identify skill gaps; develop a set of training modules that are appropriate to fill the gaps identified; establish the detailed criteria and pre-requisites for evaluating and approving training requests/proposals, and recommend the appropriate allocation of funds. In addition to the skills enhancement scheme in-country, long-term and short-term overseas training needs would be identified. The recommendations of this exercise would be used to develop a comprehensive training plan, which subsequently would be used to develop annual training plans by the Department of Training and Information (DTI). The needs assessment study would be completed within six months of project effectiveness, and implementation of the recommendations and the proposed training modules would commence immediately after the completion of the study (see para. 6.2e). 3.35 A key element of the training component would be the skills enhancement scheme. The objective of this scheme would be to provide work-related, and comparatively low-cost training, and to act as a change agent for promoting improved productivity and efficiency. It would have in-service training modules, that would be defined by the needs assessment study, and an on-the-job training program that would complement the in-service training. Skills acquired through in-service training or other training opportunities are quickly lost if not applied in day-to-day work. On-the-job training would, therefore, form an integral part of the in-service training, and would  -18- enable trainees to apply the skills acquired and to work on selected and priority issues and problems. 3.36 Detailed description of the Training Fund component is provided in Annex 9. 3. Agricultural Data and Information Systems Strengthening (ADIS)(US$3.6 mil) 3.37 The broad objective of the ADIS component would be to strengthen the country's agricultural, livestock and fisheries data base. Priority areas for support would aim at improving the national and district capacity to produce reliable agricultural information and data. The four main activities would be: (a) the establishment of a Primary Agricultural Data Base (PADB) at the national, district and community level; (b) the design and implementation of the Annual Agriculture Sample Surveys (AASS); (c) the preparation for a National Sample Census of Agriculture and Livestock (NCSAL), and (d) the design and implementation of the Integrated Fisheries Surveys (IFS). 3.38 Strengthening the primary agricultural data base would include a country-wide enumeration of a few key agricultural variables (tentatively 10 to 15, most of them concerning crops and livestock), using the District RC's as enumerators. Work on primary agricultural data base would commence by project effectiveness, and would be completed within one year of project effectiveness. The design and implementation of the annual agricultural sample surveys would focus on crops and livestock to provide updated data for planning and for detecting trends and changes in the main variables. Except in the first year of the project, when the primary agricultural data base is compiled, the annual survey would be conducted every year. Preparation for the National Sample Census ofAgriculture and Livestock would be completed under the project. The sample design, data tabulation plan, questionnaire design and data editing specifications would commence by the year 2000. The computer programs for all the data processing phases would also be developed, tested and documented by 2001 in preparation for the national sample census in the year 2002. 3.39 The design and implementation of the Integrated Fishery Surveys would aim to enhance the MAAIF's capacity to plan and manage surveys that provide reliable information about the fishing activity, and to undertake continuous monitoring and evaluation of the fishery resources. The fishery surveys would consist of four modules: (a) catch assessment survey, a monthly sample survey aiming to provide reliable estimates of the weight and value of the fish-catch landed, by species, at both the district and national level; (b) frame survey, to be conducted every two year to provide information about fishing factors (number and location of fishing communities and fish landings, number and type of fishing boats, fishing gear, etc.) for all the water bodies (except Lake Victoria, which will be funded under the GEF/IDA supported Lake Victoria Environmental Management Project); (c) socio-economic survey, to be conducted every two years to provide reliable information about the fishing communities as well as technical and economic data about post harvest fish handling, transportation, marketing, consumption and distribution at the national level; and (d) an aqua-culture survey, that  -19- would be carried out every two years to produce basic information about the incipient fish farming industry. 3.40 Short-term local and external technical assistance in survey design and data processing, as well as long and short-term training in sampling and survey methods would be funded under the project. Adequate logistical support (vehicles, data processing facilities and sundry equipment) would also be provided for the districts, MAAIF and the Statistics Department of MFEP. 3.41 A key issue with regard to the agricultural data and statistics is the sustainability of the process. In the past, considerable donor assistance and government resources have been allocated for agricultural statistics. Systems and methodology have been designed and established only to fall into disarray once donor support ended. Under the proposed project, a special study would be completed by mid-term review which would examine the issue of sustainability of agricultural data collection, analysis and publication, and agreement would be reached with GOU on setting up a sustainable system. 3.42 A detailed description of the Agricultural Data and Information Systems Strengthening component is provided in Annex 10. D. PROJECT COST AND FINANCING 3.43 The project costs have been estimated at roughly US$19.9 million including physical and price contingencies. Base cost estimates are US$17.8 million. The foreign exchange component of the project is estimated at 54 percent of the total cost. Price contingencies are estimated at US$1.2 million, 7 percent of the base cost, and assume domestic inflation of 5 percent in 1996 and thereafter, and foreign inflation (Value Index of Manufactured Exports) of 3.5 percent. An exchange rate of US$ 1=950 Ushs. up to negotiations and US$1=1000 Ush. for the project life has been used. It is assumed that the exchange rates will vary during the period to adjust for the difference between local and foreign inflation. Detailed cost tables are provided in Annex 11. 3.44 The proposed IDA credit of US$17.9 million equivalent will finance 90 percent of the project costs net of taxes and duties over a five year period. The local contribution made by Government would be for an estimated amount of US$2.0 million, or 10 percent of project cost.  -20- 3.45 A summary of the estimated costs is presented in the following table: Table 1: Summary of Project Costs (in US$ million) Components Local Foreign Total Foreign (