Ghana - Agricultural Services Subsector Investment Project

Document of The World Bank Report No: 20366-OH PROJECT APPRAISAL DOCUMENT ONA PROPOSED ADAPTABLE PROGRAM CREDIT IN THE AMOUNT OF SDR 50.9 MILLION(US$67.0 MILLION EQUIVALENT TO THE REPUBLIC OF GHANA IN SUPPORT OF THE FIRST PHASE FOR AN AGRICULTURAL SERVICES SUBSECTOR INVESTMENT PROJECT JUNE 8, 2000 Rural Development III Country Department 10 Africa Regional Office  CURRENCY EQUIVALENTS (Exchange Rate Effective March 31, 2000) Currency Unit = Cedis Cedis 4000 = US$1.00 US$1.00 = 4000 Cedis FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AAGDS Accelerated Agricultural Growth and Development Strategy ADB Agricultural Development Bank AEA Agricultural Extension Agent AESD Agricultural Engineering Services Division AEZ Agro-Ecological Zones AfDB African Development Bank AFFSD Agriculture, Forestry and Fisheries Sector Directorate AGDP Agricultural Gross Domestic Product AgSSIP Agricultural Services Subsector Investment Program Al Artificial Insemination APD Animal Production Department APL Adaptable Program Lending ARI Animal Research Institute ARPC Agricultural Research Policy Committee ASSA Annual Sample Survey of Agriculture ASSS Agricultural Sector Structural Survey CARGS Competitive Agricultural Research Grant Scheme CAS Country Assistance Strategy CEPA Center for Economic Policy Analysis CIDA Canadian International Development Agency CMC Consultative Management Committee COCOBOD Cocoa Marketing Board CSD Crops Services Directorate CSIR Council for Scientific and Industrial Research DA District Assembly DAES Directorate of Agricultural Extension Services DANIDA Danish Development Agency DCO Departrnent of Cooperatives DDO District Development Officer DflD Departmnent for International Development DOF Directorate of Fisheries Vice President: Callisto Madavo Country Manager/Director: Peter Harrold Sector Manager/Director: Jean Paul Chausse Task Team Leader/Task Manager: Solomon Bekure  ABBREVIATIONS AND ACRONYMS (cont'd) EIA Enviromnental Impact Assessment EPA Environment Protection Agency EU European Union EWFIS Early Warning Food Information System FAO Food and Agriculture Organization FAO/CP Food and Agriculture Organization/Cooperative Program FASS Food and Agriculture Statistical Services FBO Farmer-Based Organization FC Fisheries Commission FIVIMS Food Insecurity Vulnerability Information and Mapping System FMPOC Fisheries Management Plans Operations Committee FSCBP Fisheries Sub-Sector Capacity Building Project GAINS Ghana Agricultural Information Network GCC Ghana Cooperative Council GDP Gross Domestic Product GIS Geographic Information System GOG Government of Ghana GSS Ghana Statistical Service GTZ Gesellschaft fuer Technische Zusammenarbeit HAG Horticultural Association of Ghana HRDD Human Resources Development Directorate ICA International Cooperative Alliance ICB International Competitive Bidding IDA International Development Association IEA Institute of Economic Affairs IFAD International Fund for Agricultural Development IFOR Institute of Fisheries and Oceanographic Research ISSER Institute of Statistical and Social Economic Research ISU Information Support Unit GIDA Ghana Irrigation Development Authority JICA Japanese International Cooperation Agency LACI Loan Administration Change Initiative LAN Local Area Network LPIU Livestock Planning & Information Unit MCS Monitoring, Control and Surveillance MDA Ministries, Departments and Agencies MESW Ministry of Employment and Social Welfare MEST Ministry of Enviromnent, Science and Technology MFRD Marine Fisheries Research Division MLF Ministry of Lands and Forestry MLGRD Ministry of Local Government and Rural Development MOE Ministry of Education MoF Ministry of Finance MOFA Ministry of Food and Agriculture MOH Ministry of Health MRACSP Multi-round Annual Commodities Survey Program MTEF Medium Term Expenditure Framework NAEP National Agricultural Extension Project NARP National Agricultural Research Project NARS National Agricultural Research System NATC National AgSSIP Technical Committee  ABBREVIATIONS AND ACRONYMS (cont'd) NDPC National Development Planning Commission NPCC National Program Coordinating Committees NSFI National Soil Fertility Initiative NRM National Resource Management NRMP Natural Resources Management Project ND Newcastle Disease NGO Non-Governmental Organization ONBS Open Nucleus Breeding System PPRSD Plant Protection and Regulatory Services Directorate PPMED Policy, Planning, Monitoring and Evaluation Department PCU Procurement Coordination Division PCD Program Coordination Division PIM Project Implementation Manual PMR Projects Management Reports PU Procurement Unit RAD Regional Agricultural Director RDA Regional Directorates of Agriculture RDO Regional Development Officer RELC Research-Extension Liaison Committee RSIPD Research, Statistics and Information Directorate RTIU Rural Technology Information Unit SMS Subject Matter Specialists SIP Sector Investment Program TF Task Force UNIDO United Nations Industrial Development Organization VPEAG Vegetable Producers and Exporters Association of Ghana VSD Veterinary Services Directorate WRI Water Research Institute WVI World Vision International  GHANA AGRICULTURAL SERVICES SUBSECTOR INVESTMENT PROJECT CONTENTS A. Program Purpose and Project Development Objective Page 1. Program purpose and program phasing 3 2. Project development objective 4 3. Key performance indicators 4 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 5 2. Main sector issues and Government strategy 5 3. Sector issues to be addressed by the project and strategic choices 6 4. Program description and performance triggers for subsequent loans 9 C. Program and Project Description Summary 1. Project components 11 2. Key policy and institutional reforms supported by the project 14 3. Benefits and target population 14 4. Institutional and implementation arrangements 15 D. Project Rationale 1. Project altematives considered and reasons for rejection 18 2. Major related projects financed by the Bank and other development agencies 19 3. Lessons learned and reflected in proposed project design 21 4. Indications of borrower commitment and ownership 22 5. Value added of Bank support in this project 22 E. Summary Project Analysis 1. Economic 23 2. Financial 25 3. Technical 27 4. Institutional 27 5. Environment 33 6. Social 36 7. Safeguard Policies 37 F. Sustainability and Risks 1. Sustainability 38  2. Critical risks 38 3. Possible controversial aspects 39 G. Main Conditions 1. Effectiveness Condition 39 2. Other 40 H. Readiness for Implementation 40 I. Compliance with Bank Policies 40 Annexes Annex 1: Project Design Summary 42 Annex 2: Project Description 51 Annex 3: Estimated Project Costs 82 Annex 4: Cost-Effectiveness Analysis Summary 83 Annex 5: Financial Summary 94 Annex 6: Procurement and Disbursement Arrangements 96 Annex 7: Project Processing Schedule 110 Annex 8: Documents in the Project File 111 Annex 9: Statement of Loans and Credits 112 Annex 10: Country at a Glance 114 Annex 11: Letter of Development Program from the Govermnent of Ghana 116 Annex 12: Environmental Assessment 122 MAP(S) IBRD 30924  GHANA Agricultural Services Subsector Investment Project Project Appraisal Document Africa Regional Office AFTR3 AIate: June 8, 2000 Team Leader: Solomon Bekure Country Manager/Director: Peter C. Harrold Sector Manager/Director: Jean-Paul Chausse Project ID: P000968 Sector(s): AA - Agriculture Adjustment Lending Instrument: Adaptable Prograrn oan (APL) Theme(s): Poverty Targeted Intervention: Y Lrogram Fin)ncing na _ M (B~~~~~~~~~ank FY) IDA Others Total Commitment Closing US$Sm % US$ m US$ m Date Date APL 1L| 67.00 54.2 56.73 123.73 10103/2()00 10/02/2003 11