Tanzania - Agricultural Research Project II

Report No. PIC4545 Project Name Tanzania-Agricultural Research Project II (@) Region Africa Sector Agriculture/Environment Project ID TZPA2804 Borrower Government of Tanzania Implementation Agency Ministry of Agriculture P 0 Box 9192 Dar Es Salaam, Tanzania F Shao, Commissioner Research and Training Fax: 255 51 46706 Phone: 255 51 24577 Environment Category C Date of Initial PID October 9, 1996 Date of This Update March 17, 1997 Pre appraisal Date February 1997 Projected Board Date September/October 1997 A. Background Country and Sector Background 1. The agricultural sector is a primary pillar of the Tanzanian economy, it contributes about 60 percent to the country's GDP, 61 percent to export earnings and provides 84 percent of to total employment. The sector continues to be important in Tanzania's drive to increase economic growth and reduce poverty. The priority of Tanzania's agricultural policy is to achieve internal self- sufficiency in food supply, to maintain adequate levels of strategic food reserves and to generate a surplus of crop and livestock produce for export. The agricultural economy is in the hands of some 3.5 million small holder farmers with average holding size of 0.9 hectares. Good agricultural land is plentiful but under utilized, and considerable potential for intensification and managed horizontal expansion exists. It has been realized that accelerated agricultural growth can be achieved by increasing the productivity of the land base focusing on the smallholder sector; and agricultural research plays a major role in this development as increased productivity depends on the application of scientific knowledge to generate improved technologies for the production systems. In a drive to increase smallholder productivity, a National Agricultural and Livestock Research Project (NALRP) (Credit 1970-TA) has been supported by IDA since August 1989; along with a National Agricultural and Livestock Extension Rehabilitation Project (NALAERP) (Credit 1994-TA) which became effective in July 1989. Both these projects have been considered as the first phase of the long-term national research and extension programs,  respectively, which are regarded as the top two core activities of the Ministry of Agriculture (MOA). 2. During the past seven years the NALRP has achieved several of its objectives; and a research master plan has been prepared; a zonal prioritization exercise has been completed; an Agricultural Research Fund has been established. Government initiatives in raising resources for research outside the budget through cess/levy and revenue retention schemes have made substantial headway; and research infrastructure has been improved. Research in crops and livestock has made satisfactory progress, 27 new varieties in food and industrial crops have been released, and there has been moderate to substantial increases in productivity of several food and industrial crops. Despite a 3t population growth, the country has remained self-sufficient in basic food grains, increased its agricultural exports and since late-eighties, recorded a growth rate of over 4 percent in agricultural GDP. NALRP is scheduled to close on March 31, 1997, and all the funding under IDA has been disbursed and/or is fully committed. B. Project Objectives 3. The main objectives of the project would be to continue to improve agricultural research in Tanzania for increasing efficiency and productivity of the crop and livestock production systems with sustainable use of natural resources, focusing particularly on the needs of the smallholder sector. The proposed project will emphasize client-oriented, demand-driven applied and adaptive research. It will continue to support (a) the institutional development of the national agricultural research system, and assist in decentralization of financial resource management, operational decision making and formulation of the research agenda to the zonal research stations; (b) support privatization of research as appropriate, while encouraging initiatives for raising extra-budgetary resources for research; and (c) further strengthen farmer-extension research linkages. The project will also assist in human resource development. C. Project Description 4. The project will have the following main components: (a) Institutional development: This will include further reorganization of the Department of Research and Training (DRT) particularly to effectively regionalize research to be more responsive to the users by conferring financial and operational autonomy on the Zonal Research Stations. The specific initiatives would include (i) redefining the roles of the DRT, the National Research council and the Zonal research Stations with emphasis on stakeholder participation; (ii) establishment of a Zonal Executive Council (with substantial representation of research users) to oversee planning and implementation of the zonal research agenda; (iii) a separate budget voted for each zonal station; which will provide financial and operational empowerment of the zones; (iv) an arrangement for donor coordination; and for promoting and -2 -  coordinating regional and other collaborative programs; and (v) a phased downsizing of the research establishment. (b) Research Programs: The project will (i) provide operating costs for the priority research programs in food crops, livestock and environmental programs (e.g. soil conservation, agroforestry); (ii) assist in establishing a Zonal Agricultural Research Fund (ARF) in a few zones on a pilot basis, and assist in working out modalities for its use in demand-driven research; (iii) strengthen research infrastructure in Sokaine University of Agriculture (SUA) and provide support for research programs, and (iv) help in breeder seed production at the zonal research stations. (c) Resource Development and Management: The proposed project will support strengthening human resource development in the areas of research planning, zonal research management, and monitoring and evaluation procedures by (i) providing in-country, regional and overseas training, based on the outcome of a needs assessment study, (ii) assistance to Sokoine University of Agriculture (SUA) for carrying out approved training and post-graduate courses and research; (iii) consulting services and short-term technical assistance, (iv) selective rehabilitation and renewal of research stations, relevant equipment and other infrastructure; and (v) improving documentation and library services, financial management information and communication sources, research monitoring and evaluation and accounting systems. 5. The project will cover the entire country and will closely coordinate with national extension programs. The project will be implemented by the Department of Research and Training and the zonal research stations of the Ministry of Agriculture. D. Project Financing 6. Although the final project cost will be determined during appraisal, the initial estimates show that the project costs would be around US$39 million, of which about US$21 million may be contributed by IDA, about US$17 million by other donors and the rest by Government, beneficiaries and other donors. E. Project Preparation 7. A Government Planning Team established by MOA and working closely with the Technical Task Group created under the Agricultural Sector Management Project prepared project proposals. These proposals formed the basis of project preparation and pre- appraisal carried out by a joint IDA/donors/Government mission in January/February 1997. F. Sustainability 8. Project sustainability is evidenced by the fact that Tanzanians are designing the project and would use existing Government channels for implementation. The Government's financial burden would be reduced by levying a cess on several cash crops for -3 -  research. Tanzania is also undertaking a restructuring of the research establishment, which includes reducing the number of research stations and substations to bring it to an appropriate size for efficient outputs. Funds thus saved by these cuts would be used for research programs and better maintenance of the research infrastructure. Strong Government ownership is further demonstrated by the Government's classification of national research and extension programs as the two top priority programs among the super core projects of MOA and would, therefore, receive priority resource allocation in the budget. An analysis to determine if the expenditures of the magnitude needed for the project would fit within Tanzania's finances would be carried out during the appraisal mission. G. Lessons Learned From Past Operation In The Country/Sector 9. The Government, the research and the other stakeholders are prepared to take into account the following main lessons learned; (I) The zones in which the main action stations for research are located should have financial and operational autonomy to carry our their mandate; (ii) the stakeholders (farmers, extension, industry and trade) should have an effective voice in the priority setting for the types of programs undertaken, and where applicable, in the generation of technology; (iii) focus should be on the financial sustainability of research; the industrial/commercial commodities should raise resources to meet costs of their research, research in these commodities should be privatized, as appropriate and the research establishment should be "right sized" to carry out its mandate cost-effectively; (iv) poor levels of compensations and incentives for the scientist have been responsible for an unsatisfactory "enabling environment" with its negative impact on efficiency and effectiveness of research; consistent with Government's civil service compensation policy the researches should have appropriate incentives commensurate with their unique working and living conditions; (v) more proactive measures (in addition to arrangements in place like bi-monthly workshops of researchers and field extensionists, zonal research technical and advisory committees, regional extension coordinating committees) are needed to foster effective research-extension-farmer linkages; these should be introduced in the institutional arrangements as well as in research planning and operations. These lessons would be incorporated in the proposed project. H. Poverty Category 10. The program has a poverty focus and is included in the Program of Targeted Interventions (PTI). Poverty alleviation is further addressed in para. 13, Program Objective Categories. I. Environmental Aspects 11. TARP II is ranked C for environmental purposes. Farmers in Tanzania are one of the major custodians of its natural resources. Generating technologies for the sustainable use of these resources is one of the important objectives of the project. Through its - 4 -  emphasis on factor programs (soil and moisture conservation, integrated pest management, agroforestry) and participatory on-farm and farming systems research, the project aims at stabilizing and improving farming in a degrading environment. The environmental impact of the project would therefore be largely positive. J. Participatory Approach 12. The preparation process was designed to consult with and receive inputs from the concerned stakeholders such as the farmers, including female farmers, NGOs and donors who are active in the area of research. The Government Planning Team includes representatives of farmers and other research users, including the food processing industry and trade, and the Sokoine University of Agriculture. K. Program Objective Categories 13. The large majority of the poor in Tanzania live in rural areas. This project will contribute to broad-based poverty alleviation in the country by supporting technological change and innovation in agricultural production, which would improve returns to labor and land, increasing rural incomes, food security and improving nutrition levels. Smallholders and female farmers will benefit from the project. The project supports the Government's private sector development policy and the ASMP (Agricultural Sector Management Project) in its task of slimming down the MOA to its re- defined role and the re-allocation of budgetary resources to activities that are considered public goods, such as agricultural research and extension. The project would also encourage selective privatization of research. L. Project Benefits 14. By increasing livestock and agricultural productivity and output, the project will help to reduce rural poverty, increase food security and improve nutrition levels. Women farmers who constitute over 50 percent of the smallholders will particularly benefit from the project activities. Agricultural growth and exports will also improve. Through the generation of messages related to improved fallow, afforestation, and anti-erosion techniques the project would also have a positive impact on soil fertility, conservation and water management. The project will have impact on the rationalization of MOA, and on the quality of staff. The project will have complementarity with the NAEP II and assist in improved and more dynamic linkages with extension and farmers. The economic rate of return of the project based on standard methodology for research projects will be determined. M. Project Risks 15. The project is subject to institutional, financial and macro- economic risks. Arrangements for strengthening zonal research centers with financial and operational autonomy may take time to establish and may not work effectively, funding constraints may - 5 -  continue, research may not be adequately demand-driven and research findings may not be relevant. Safeguards against institutional risks will be included in the project by ensuring that the Government commits itself to the required institutional and administrative arrangements for effective operations of the zonal centers as envisaged. These arrangements will include Monitoring and Evaluation (M & E) systems at the zonal level and seminars held at all zones to familiarize research managers and scientist on key M & E methods. Results of the M & E will be reported annually. Considerable resources will be devoted to developing human resources and strengthening management and procurement. Financial risks would be minimized by appropriate downsizing of the research establishment and by raising extra-budgetary resources to supplement budgetary allocations. Agreement with the Government will be reached during appraisal about the phased downsizing process, and estimates will be made of the extra budgetary resources to be available for research in the project period and beyond for sustaining the research programs. Any readjustment to staff size will be based on a study to be carried out by the Ministry of Agriculture with regard to the scope of reducing the number of stations and of managing research establishment more cost effectively. These procedures would include representation of stakeholders on the zonal executive council and on the national research council. Linkages between research and extension services and adoption of research programs at the smallholder level would be strengthened through bi-monthly workshops, pilot initiatives for support to farmer seed grower and farmer research groups and joint implementation of on-farm trials, demonstrations, training and action research initiatives. These activities would be presented in the Project Implementation Plan (PIP). Demand-driven research by means of stakeholder representation in the zonal executive committees and providing an identified budget at the zonal level for these activities would ensure that priorities and programs would reflect the concerns of farmers. Contact Point: Mr. Ed Quisumbing, Task Manager The World Bank 1818 H Street N.W. Washington, D.C. 20433 Telephone No.: (202)- 473-4183 Fax No.: (202) 522-1500 Note: This is information on an evolving project. Certain components may not necessarily be included in the final project. Processed by the Public Information Center week ending April 4, 1997. - 6 -