Upper Volta - West Volta Agricultural Development Project

Document of The World Bank FILE C 0 P Y FOR OFFICIAL USE ONLY Report NoYP-2049 -U REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON PROPOSED CREDITS TO THE REPUBLIC OF UPPER VOLTA FOR A WEST VOLTA AGRICULTURAL DEVELOPMENT PROJECT APR ? 9 1977 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.  CURRENCY EQUIVALENTS US$1.00 CFAF 245 CFAF 100 US$0.408 WEIGHTS AND MEASURES I metric ton 0.98 long ton (2,205 lbs.) 1 kilometer (km) 0.62 mile 1 hectare (ha) 2.47 acres ABBREVIATIONS ADF African Development Fund AP Association en Participation ARCOMA Atelier Regional de Construction de Machines Agricoles AVV Volta Valleys Authority BND Banque Nationale de Developpement CCDR Comite'de Coordination du Developpement Rural CESAO Centre d'Etudes Economiques et Sociales d'Afrique Occidentale CFDT Compagnie Francaise pour le Developpement des Fibres Textiles CSPP Caisse de Stabilisation des Prix des Produits CITEC Societe des Huiles et Savons de Haute Volta EAEW Equal Access to Education for Women FAU Financial Administrative Unit ICRISAT International Crops Research Institute for the Semi- Arid Tropics IRAT Institut de Recherches Agronomiques Tropicales et de Cultures Vivrieres IRCT Institut de Recherches du Coton et des Textiles Exotiques MRD Ministry of Rural Development OFNACER Office National des Cereales ONI3 Office National des Barrages et de l'Irrigation ORD Organisme Regional de Developpement SERS Services d'Entretiens des Routes Secondaires NATIONAL FISCAL YEAR AND PROJECT YEAR (PY) January 1 - December 31 IDA FISCAL YEAR July 1 - June 30  FOR OFFICIAL USE ONLY INTERNATIONAL bEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON PROPOSED CREDITS TO THE REPUBLIC OF UPPER VOLTA FOR A WEST VOLTA AGRICULTURAL DEVELOPMENT PROJECT 1. I submit the following report and recommendation on two proposed credits to the Republic of Upper Volta totalling the equivalent of IJS$6.5 million on standard IDA terms to help finance an agricultural development project. One credit of US$3.6 million would be made from IDA resources; a second credit of Can$3.0 (US$2.9 million equivalent) would be made from Canadian funds administered by IDA in accordance with the terms of the re- cently approved Agreement between the Government of Canada and the Associa- tion. The African Development Fund (ADF) will provide a loan on standard IDA terms equivalent to US$5.5 million and Swiss Technical Cooperation will provide a grant equivalent to US$3.6 million. PART I: THE ECONOMY 2. The latest economic report entitled "Current Economic Position and Development Prospects-of Upper Volta" was distributed to the Executive Directors on July 7, 1975 (RN'564a-UV). Annex I contains country data. Background 3. With a per capita GNP of US$95 in 1975, Upper Volta is one of the poorest African countries and classified as among the 29 "least developed countries" by the United Nations. The country's economy faces a number of development constraints including extreme variability of rainfall, generally poor soils, few exploitable minerals, long distances to the nearest seaports, uneven population distribution with regard to available land resources, a shortage of skilled manpower, and limited potential for industrialization. These disadvantages also explain Upper Volta's relatively slow rate of eco- nomic progress. For the period 1967-75, real GNP grew at an annual rate only slightly higher than population growth, resulting in virtual stagnation of per capita income. 4. Upper Volta is a rural economy and the economic structure has undergone little change over the last 15 years: agriculture and livestock provide a living for over 96% of the population but account for less than half of GNP. The modern manufacturing sector, consisting mostly of import- substituting industries, accounts for less than 10% of GNP, while the tertiary sector contributes-about one-third. Private and public consumption typically absorb 95% to 100% of GNP, which means that the bulk of capital formation (in the monetary sector) - usually ranging from 14%-18% of GNP - has to be financed by foreign capital. Exports consist almost entirely of agricultural and livestock products. 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.  -2- Recent Developments 5. The Sahelian drought of 1973 caused a severe setback in agri- culture and livestock production. Output of food grains (sorghum and millet) dropped by more than 20%, calling for emergency food imports of about 100,000 tons in 1973/74. Output of cotton, the principal export crop, fell by one- third. Drought-related herd losses were estimated at 10%. With normal rainfall in 1974, crop production rebounded, but recovery in the livestock sector was inevitably much slower. Production of food crops in 1975 equalled the record level achieved in 1970, while output of cotton also increased substantially. As a result, GNP as a whole rose by 8% in real terms. Indications are, however, that 1976 has been a difficult year for agriculture. 6. The external trade balance has continued to deteriorate in recent years following worldwide inflation for import goods and sluggish exports due to the drought: the resource gap more than doubled from US$64 million in 1972 to US$159 million in 1975. The overall balance of payments, however, was in surplus until 1974 thanks to increasing inflows of foreign capital and workers' remittances from abroad (mainly the Ivory Coast). These remittances have traditionally been a very important source of income for Upper Volta. In 1975 the overall balance of payments showed a small deficit for the first time since 1968, due chiefly to a recent border conflict with Mali. Preliminary indications for 1976 suggest a slight improvement. 7. Over the period 1968-74, Government's financial position has been relatively strong as a combined result of an austere spending policy, French budgetary subsidies, and surpluses generated by autonomous public institutions such as the Price Stabilization Fund for Agricultural Products. At the end of 1974, public sector deposits with the banking system stood at CFAF 9.3 billion (US$38.7 million), equivalent to about three-fourths of the corresponding year's current revenue. However, in spite of an extra-budgetary revenue of CFAF 2 billion originating from a special tax (Contribution Patriotique, intro- duced on January 1, 1975 for a one-year period following the border conflict with Mali), Treasury operations in 1975 showed a current account deficit of about CFAF 1 billion due mainly to exceptional military expenses. Although the budget for 1976 forecasts a current surplus of CFAF 1.8 billion, the overall deficit of CFAF 1.3 billion is of the same order as the deficit actually recorded in the preceeding year. 8. To accelerate development through public sector investments, in January 1975, the Government established the Caisse Nationale des Depots et Investissements (CNDI). It mobilizes savings from public and private bodies and channels them into public infrastructure projects and other economically and financially profitable undertakings. It aims at annual commitments of around CFAF 3.2 billion and by the end of 1975 committed CFAF 2 billion for various development projects. The CNDI also acts as the Government's agent in carrying out the so-called Voltaization policy, which aims at increasing local ownership in joint ventures with foreign partners. The Government's target is to achieve majority local ownership in more than half of the enterprises in priority sectors and one third of all other enterprises by the end of 1977.  - 3 - To achieve this target, the CNDI is authorized to purchase shares currently in possession of foreigners for resale to Voltaics later on. Funds required for this operation are estimated at CFAF 1.5 billion (US$6.2 million). Foreign Aid 9. During the period 1967-1975, Upper Volta received from its major donors annual average aid inflows of about US$42.0 million, with sharp increases during the last three years. Principal foreign donors are France, FED, Canada, Germany, USA, IDA and the UNDP. About 85% of all aid has been in the form of grants, and, of the remaining 15%, 90% consisted of loans on concessionary terms. Investment aid accounted for about two-thirds of the total, followed by technical assistance and budget support (10%). In recent years aid inflows increased considerably due to drought-related relief operations (1974). While new donors, in particular some of the Arab countries, are expected to increase their involvement in the country, tradi- tional aid sources are likely to remain dominant for many years to come. IDA is gradually becoming one of the main sources of aid: its total commitments stand at US$76.6 million as of December 31, 1976. 10. External public debt at the end of 1975 stood at US$185.6 million, (including an undisbursed amount of US$122.7 million), in which the IDA's share was about 26%. The ratio of debt service payments to exports of goods and non-factor services was about 6% in 1975. IDA's share in total debt service payments is still insignificant. By 1980 IDA's share in total out- standing debt is projected to fall slightly to 23.1%, while IDA's share in debt service payments is expected to rise marginally to 7.1%. Although the debt service ratio is expected to increase somewhat in the near future, no special problems are foreseen. Development Policies and Prospects 11. Since most of the potential for economic development in the medium and long term lies in the agricultural sector, emphasis should be put on increasing agricultural productivity in the rural sector and the improvement of supporting services. One of the basic problems facing the country's rural sector is an uneven population distribution with respect to available resources. About 61% of the total population live in the central region (the Mossi Plateau), which comprises only 34% of the total area and which is much less favorably en- dowed than the southern and southwestern regions with respect to rainfall and soil quality. The occurrence of riverblindness in the river valley areas ex- plains in part the concentration of population on the Mossi plateau. An impor- tant component of the country's long-term development strategy is therefore to redistribute population. This will require the development of regions which can support productive farming systems and consequently permit migration from the poorer Mossi Plateau. Such regions exist in the west and southwest. At the same time, the improvement of production and living conditions on the Mossi Plateau, through the financing of agricultural development projects (including the IDA supported Rural Development Funds), will also receive priority.  - 4 - 12. Like the first Plan, the current Plan (1972-76) is well conceived and essentially project-oriented; its targets are reasonable (GNP was expected to grow only 3.5% p.a.). However, external factors such as the drought and worldwide inflation have adversely affected the economy during the plan period, and actual growth (2%) has been less than expected. The Government has recently drawn up guidelines for the next Development Plan (1977-81) conceived in a longer-term "perspective" for tackling the country's structural problems. Rural development in the broadest sense, including the resettlement of people in the riverblindness-freed zones, will continue to occupy center stage. Education and employment will be given higher priority than in the past, and close linkage between the two will be actively sought in the form of a production-oriented education system, the content and form of which have yet to be determined. Increased mineral development is also one of Government's objectives, and serious efforts are being made to promote foreign interest in the exploitation of a medium-sized manganese deposit near Tambao. Due to the high infrastructure investment required, the economic justification and financial profitability of the project still remain to be demonstrated. 13. Foreign capital and technical assistance will continue to play a vital role in the development of Upper Volta. In view of the country's poverty and limited growth potential, it will be appropriate for external lending agencies to finance a high proportion of project costs, including a substantial amount of local costs. Furthermore, since lack of operating funds, limited absorptive capacity, and shortfalls in project preparation have more often than not been identified as principal bottlenecks in effective implementation of planned projects, intensive efforts should be made by foreign donors to assist the Government in its efforts to gradually remove these constraints. PART II: BANK GROUP OPERATIONS 14. To date, the Bank Group's contribution to Upper Volta's development has consisted of twelve IDA projects totalling US$76.6 million of which US$19.6 million has been disbursed as of March 31, 1977. Annex II contains a summary statement of these credits as of March 31, 1977 as well as notes on the execution of ongoing projects. 15. Experience with ongoing projects has generally been good. The Bank Group's strategy in Upper Volta is dictated by the extreme poverty of the country and the need to raise productivity in agriculture and livestock, on which the bulk of the population depends for a livelihood. Basic infrastruc- ture, necessary to the economy, is being developed with the assistance of IDA projects for road construction and up-grading, and in telecommunications. IDA lending, in line with Government's policy, is primarily directed to projects that improve conditions in rural areas, with special emphasis given to operations favoring the movements of peoples away from the over-populated and ecologically disadvantaged central plateau to the southwest, the proposed project region, where conditions are much better. The Banfora, Bobo-Dioulasso,  - 5 - Hounde road to be constructed under the Third Highway project provides the most important transport link in this region of substantial agricultural potential. 16. The proposed project would cover the same area as that of the West Volta Cotton project, i.e. the two "Organismes Regionaux de Developpement" (ORDs) of Bobo-Dioulasso and Dedougou, or slightly over 20 percent of the country's total area. The West Volta Cotton project, which became operational in 1972, was designed with the limited objective of promoting cotton production through the provision of inputs and advice on use and timing of field opera- tions for cotton; the extension service has therefore mainly served as an input supply and seed cotton collection service. Despite start-up difficul- ties due to delays in staffing, problems of coordination with the then newly created ORDs, and the Sahelian drought, the project has attained its cotton production targets: production in 1976 is estimated to exceed appraisal estimates by 17 percent. However, project experience highlights the need to strengthen the ORD management, reorganize the extension service in order to reach the large group of new settlers from the Mossi Plateau in the area, and to better serve established farmers. This is a central feature of the pro- posed project which aims at promoting more productive farming systems and better cultivation techniques for the area's main dryland crops, cereals and cotton, at developing the irrigation potential through small scale, simple water control schemes, and at improving the condition of women in the project area. 17. In addition to the proposed project, a number of other operations are under consideration for IDA financing. The appraisals of an urban and a related DFC project took place in Feburary 1977. The two projects will link a low-cost approach to urban development to employment creation in urban centers. The campaign for control of riverblindness in the Volta River Basin, is opening up new opportunities for land settlement and agricultural devel- opment to which IDA is planning to make a contribution. PART III: THE AGRICULTURAL SECTOR 18. Upper Volta has a traditional and overwhelmingly rural economy: approximately 90% of the population is involved in crop farming and about 6% are pastoralists. Farming is difficult because of erratic rainfall, a prolonged dry season, and poor or shallow soils in the populated central region of the country (the Mossi Plateau). Farming techniques have generally not evolved beyond the traditional system of shifting cultivation with little use of cash inputs. Consequently productivity is low in the agricultural sector, a condition which was exacerbated by the Sahelian drought; however, even under normal weather conditions, Upper Volta imports staple cereals from abroad. It is estimated that 8% of the land or about 2.2 million ha is cultivated with basic food crops, millet, sorghum, and maize, taking up some 85% of cultivated area. The land under irrigation totals about 5,400 ha, and is mainly devoted to import substitution crops such as sugar and rice. 750 ha of smallholder farms produce vegetables for export to Europe and the Ivory Coast.  - 6 - 19. Livestock constitutes one of the country's principal resources accounting for 10-12% of GNP and one third to one half of total export earn- ings. Farmers are increasingly turning to fattening cattle with crop residues and by-products. Most farmers also keep small stock. 20. Cotton is the most important cash crop and a major export which is grown mainly in the western and southwestern regions of the country. Seedcotton production was introduced in the early 1950s, and production in- creased rapidly after 1966. However, production stagnated at about 30,000 tons per year during the 1971-75 period due to the drought. Although western Upper Volta accounts for little more than 60% of the total cotton producing area, it represents almost 90% of the country's seedcotton production, with yields up to 880kg/ha compared with 185kg/ha in the rest of the country. 21. The production of cereals and cotton is closely related, as both crops are rainfed and grown during the same period in the rainy season. Sorghum is the main cereal crop grown by the majority of farmers. However, for those farmers living in areas where the average annual rainfall is 650 mm or less, the main cereal crop is millet. Yields are low, with the national average estimated to be 370 kg/ha for millet and 490 kg/ha for sorghum. Farmers produce cereals mainly for home consumption, only marketing between 5% and 15% of the harvest. Agricultural Planning, Research and Credit 22. The country is divided into eleven Regional Development Organizations (Organismes Regionaux de Developpement - ORDs), public agencies administered by their own boards of directors comprising appointed government officials and representatives of local authorities and farmers. Except for the valleys of the three Volta rivers, ORDs are responsible for planning and implement- ing agricultural operations in their regions, under the supervision of the Permanent Secretariat of the Committee of Rural Development (CCDR) of the Ministry of Rural Development. The ORDs are responsible for a wide range of activities, and for certain technical activities rely upon centralized govern- ment or private services. The most important government services providing support to the ORDs are Service d'Entretien des Routes Secondaires (SERS) for feeder road construction and maintenance, and l'Office National des Barrages et de l'Irrigation (ONBI) for the construction of buildings and wells. The Autorite pour l'Amenagement des Vallees de Volta--(AVV), an autonomous orga- nization under the supervision of the Ministry of Rural Development, is responsible for all development activities in the valleys of the Volta rivers. 23. Agricultural research is carried out by the Institut de Recherches du Coton et des Textiles Exotiques (IRCT) for cotton, and Institut de Recherches Agronomiques Tropicales et de Cultures Vivrieres (IRAT) for cereals. By and large, research has produced good technology packages for cotton, groundnuts, rice, vegetables, and maize, but to a lesser extent for the traditional staples, millet and sorghum. 24. Agricultural credit is provided by the National Development Bank (BND) through the ORDs which on-lend in kind to farmers such seasonal  - 7 - inputs as insecticides and fertilizers on short term and agricultural equipment on medium term. Interest rates range from 10% for seasonal credit to between 8% and 12% for medium term credit. Marketing 25. The marketing of cotton is fully regulated by the Government and producer prices are announced annually. About 90-95% of that production is exported while the remainder is sold to the domestic textile industry. Export prices and costs from farmgate to export for cotton lint are established at the beginning of each season; any difference between actual and estimated prices and costs accrues to or is absorbed by the Stabilization Fund, a Govern- ment agency which also supports sesame and sheanut exports. CFDT (Compagnie Francaise pour le Developpement des Fibres Textiles) has a monopoly for cotton exports and is presently the largest contributor to Stabilization Fund sur- pluses. Since 1970, the organizational arrangements for the production, ginning and marketing of cotton have been governed by a "participation agree- ment" (Association en Participation - AP) between the Government and CFDT. Under this agreement, CFDT is responsible for production, ginning and marketing of cotton. The agreement specifies the allocation of costs and distribution of profits (or losses) between the two parties. A new agreement between the Government of Upper Volta and CFDT governing the arrangements for cotton production, processing, and marketing is under discussion and is anticipated to be finalized late 1978 or in 1979. It is expected that a new organization, SOFITEX, will be created with the Government as majority stockholder, to purchase seedcotton from producers and to gin and export cotton lint. In accordance with standing agreements (Cr. 496 UV) Government would consult with the Association on proposed changes to the AP agreement. 26. Marketing of other agricultural produce is in the hands of private traders, although government intervention is increasing. Vegetable exports are handled through a producers' cooperative which has not been very successful in domestic marketing, but which has developed an air-freight market for high quality exports to Europe and the Ivory Coast. The cereals market is character- ized by large inter-annual and seasonal price variations caused by fluctuating supplies. To improve cereal marketing and to stabilize domestic prices, OFNACER (Office National des Cereales) was created in 1971, but has mainly been involved in the distribution of relief foodgrains. In 1974-75, the Government established an official grain marketing system through the ORDs and OFNACER, but this has not been very effective, and its impact on grain prices has been small. Rural Development Strategy 27. Factors affecting long-term development perspectives can be summarized as follows:  - 8 - (i) The Mossi Plateau is heavily populated: 61% of the population lives on 34% of available land, and in many districts popu- lation density exceeds 40 inhabitants per sq km which is too high to permit sustained and even moderately high productive agricultural systems under presently available techniques. Owing partly to population density, efforts over the past 15 years to improve living standards have failed. A reduction in population could increase land availability and permit significant improvements in income. However, there is also both the opportunity and need for the implementation of a variety of small-scale projects designed to take advantage of limited areas of land of good potential. (ii) Upper Volta has large areas which are still relatively under- populated, and which, because they have good agricultural potential, could support satisfactory standards of living. People could be attracted to these areas through settle- ment projects, integrated rural development projects, and possibly irrigation schemes. Many of these potentially productive areas are in the valleys of the Black, Red, and White Volta rivers where onchocerciasis (riverblindness) has been endemic. The internationally supported onchocerciasis campaign, which began operation in 1975, will largely control this disease and open up these river valleys and other areas for settlement. Provisions have been made under the Second Rural Development Fund project to collect data on the basis of which a long-term development program can be prepared. 28. Intensive settlement would be possible through the development of irrigation for which a potential of some 130,000 ha is estimated to exist. However, given the high investment cost of fully controlled irrigation, the absence of experienced personnel, and the lack of farmers' experience with irrigated agriculture, it is advisable to concentrate initially on simple low cost irrigation or flow control schemes. 29. In summary, emphasis should be placed on the development of rainfed agriculture in the west and southwest regions where conditions could support reasonably productive farming systems and consequently alleviate population pressure on the Mossi Plateau. Research has shown that present systems of shifting cultivation can be replaced by cultivation methods which would not only increase current yields, but also shorten fallow periods in these areas of good agricultural potential. Such a strategy has been supported by the Govern- ment and by Bank Group operations in the agricultural sector. The Bougouriba Agricultural Development project (Cr. 496-UV) represents an integrated program to develop the agricultural potential of the Bougouriba ORD, located in the southwestern region. The West Volta Cotton Project (Cr. 225-UV) has resulted in increased cotton production in the southwestern ORDs of Bobo-Dioulasso and Dedougou (para. 16). The proposed project would reach farmers in this area with a more comprehensive package for the improvement of the cultivation of both cereals and cotton.  - 9 - PART IV: THE PROJECT 30. A report entitled "Appraisal of West Volta Agricultural Development Project" (No. 1380-UV of April 1, 1977) is being circulated separately. A credit and project summary is contained in Annex III and the project area is shown on the attached map (IBRD 12311). The project is based on studies prepared by consultants Berenschot - Moret - Bosboom. Field appraisal took place in October 1976. Negotiations were held in Washington from February 28 to March 7. The Upper Voltan delegation was led by M. Augustin Wininga, Minister of Rural Development. Project Description 31. The proposed project, to be carried out over a five year period (1977-1981), consists of: (a) strengthening the Permanent Secretariat of the CCDR with a technical assistant and support staff for the coordination and planning of agricultural projects and through the crea- tion of a Financial and Administrative Unit (FAU) to establish and maintain an accounting system and to monitor the progress of projects; (b) providing the ORDs of Dedougou and Bobo Dioulasso with the staff, equipment and transportation necessary to imple- ment an agricultural development program; (c) providing incremental seasonal inputs (insecticides, fertilizers, and seed); (d) constructing small-scale irrigation schemes totalling 1,120 ha; (e) building a 22,000 ton ginnery with storage facilities; (f) construction of some 75 small village grain stores; (g) creating a training center for project staff and farmers which would also serve the livestock project at Samorogoan (Cr. 557-UV); (h) carrying out studies and surveys, followed by pilot projects to help new settlers; and (i) carrying out a pilot scheme to improve the situation of women in about 40 villages.  - 10 - Project Execution 32. The project will be carried out as part of the overall activities of the ORDs of Dedougou and Bobo Dioulasso, under the supervision of the Permanent Secretary of the CCDR. ORD extension services will be reorganized into a separate specialized section, responsible for extension work only. The ORDs will recruit new staff to supply inputs, market seedcotton and collect debts. The Office National des Barrages et de l'Irrigation (ONBI) will carry out all irrigation construction works. The women's activities will be super- vised by the main office of the Equal Access to Education for Women (EAEW) program, located in the capital. Strengthening the Permanent Secretariat of the CCDR 33. The project would continue to fund the position of technical assist- ant to the Permanent Secretariat of the CCDR, initially created under the Bougouriba Agricultural Development Project (Cr. 496-UV), and provide secre- tarial support and transportation. In addition, a Financial and Administrative Unit (FAU) will be created to establish and maintain an accounting and budget- ing system and to monitor the progress of IDA financed agricultural projects. The FAU would report directly to the Permanent Secretary of the CCDR. The chief of the FAU will be assisted by a technical advisor. It was agreed at negotiations that consultants would be employed under terms and conditions satisfactory to the Association to prepare the FAU program prior to Nov. 1, 1977 and to assist in establishing the accounting and reporting system and that not later than six months following the approval by the Association of the FAU program, the chief of the FAU and the technical advisor would be appointed. (Section 3.04 (b) and (c) of the draft Development Credit Agree- ment). Strengthening ORD Management 34. In order to strengthen the project areas ORDs Government agreed to (i) appoint to each a qualified and experienced technical advisor to assist the ORD director in the definition and supervision of the work program and, (ii) establish and maintain under the Department of Community Development in each ORD a separate section responsible only for extension services whose head will be assisted by a qualified and experienced extension specialist. (See Section 3.06 of the draft Development Credit Agreement). Government also agreed that extension agents in the project area ORDs would be progressively withdrawn from the supply and marketing system and that a timetable would be drawn up whereby withdrawal would be completed during the first three years of project implementation. It was also agreed that new staff would be employed as and when necessary to take over these functions. (Sections 4.03 and 4.04 of the draft Development Credit Agreement). Agricultural Production Inputs 35. Under the West Volta cotton project (Cr. 225-UV), a revolving fund was established with BND to provide the ORDS with credit to enable them to  purchase inputs for on-lending in kird to cotton producers. The revolving fund has not worked as expected. The need for IDA disbursements from the fund did not arise, as credit funds were provided by the existing Central Bank discount facility to a consortium of local banks, including BND, which in turn channeled these funds to the AP. As sufficient short term credit would continue to be availablelfrom this source in the future, the proposed project does not include IDA financing of incremental inputs. Irrigation 36. The existing irrigation unit within the Office National des Barrages et de l'Irrigation (ONBI) in Bobo-Dioulasso would be reinforced by an irriga- tion engineer and a surveyor. Irrigation under the project would be limited to simple low cost schemes totalling 1,000 ha of bottomland development for paddy cultivation, 100 ha of vegetable production, and 20 ha of irrigation below existing dams. Ginnery 37. It is anticipated that incremental cotton production resulting from the project will justify the construction of one ginnery (22,000 tons) includ- ing storage facilities for lint and seed in 1978. As the three existing ginneries are located in the ORD of Bobo-Dioulasso, the new facility would be located in the main cotton producing area of the ORD of Dedougou. The ginnery would be owned by the Government and operated under the existing participation arrangements (AP) with CFDT (para. 25) until a new agreement is finalized. Village Storage Facilities 38. Some 75 small village stores are provided for with a grain storage capacity of about 25 tons each; a revolving fund will be established to pur- chase grains to be stored. Requests for the construction of the stores will have to come from "groupement villageois" and will be approved by the Commu- nity Development Department of the ORDs once it has been demonstrated that the groupement is able and willing to manage the store. The Community Development Department will also supervise the construction and monitor the operation of the stores. Training Center 39. A training center for extension agents would be built and equipped near Bobo-Dioulasso to accommodate 60 resident trainees, with additional facilities in Dedougou. Assurances were obtained at negotiations that the extension specialists would be recruited under terms of reference satisfactory to IDA prior to July 1, 1977, to prodice a training program prior to November 1, 1977 and that IDA would be consulted on these recommendations and arrange- ments for their implementation. (Section 3.09 of the Draft Development Credit Agreement.)  - 12 - Spontaneous Settlement 40. The project would provide for the collection of data to be used in the preparation and implementation of low-cost pilot settlement schemes. Basic maps of part of the area (topographical, soil, hydrological and popu- lation density) are being prepared with funds from the project preparation facility. Government agreed that IDA would be consulted on the terms of ref- erence for consultants to be employed to carry out the study on spontaneous settlement (Section 3.11 of the Draft Development Credit Agreement). Women's Activities 41. To improve the standard of living in rural village areas, the proj- ect would include a program to improve the condition of women in 40 villages in the project area. A regional center would be established in each of the two project ORDs to carry out a program including the introduction of labor- saving grain grinding mills and carts for the transportation of wood and water, and basic instruction in nutrition, sanitation and functional lit- eracy. Feeder Road Construction 42. The road brigade established under the West Volta Cotton project (Cr. 225-UV) has been transferred to the Department of Rural Roads (SERS) and will carry out the roads program in the project area with funds provided by the Rural Roads Project (Cr. 579-UV). The technical assistant will be retained under the proposed project to train SERS personal working in the project area. Retroactive Financing 43. Funds under the ongoing cotton project (Cr. 225-UV) were fully committed in December, 1976. The proposed West Volta Agricultural Devel- opment credit will not be signed prior to end May 1977. In order to avoid any financing gap between the projects, it is recommended that retroactive financing up to US$400,000 be made available to cover expenditures incurred between January 1, 1977 and credit signature. Cost Estimates and Financial Arrangements 44. The total cost of the project net of taxes, but including contin- gencies is US$17.2 million with foreign exchange costs of US$8.9 million. The proposed IDA credit of US$3.6 million together with the proposed IDA administered credit of Can$3.0 million (US$2.9 million) would finance 38 percent of project costs net of taxes. The two credits would cover 30 per- cent of the foreign exchange costs estimated at US$2.7 million (CFAF 669 million) and US$3.8 million (CFAF 931 million) of local costs, a proportion similar to that of other lenders. The IDA administered credit would be made in accordance with the terms of an agreement between  - 13 - the Government of Canada and the Association which was approved by the Board on April 12, 1977. The remainder of project costs net of taxes would be financed as follows: African Development Fund, US$5.5 million (32 percent of net project costs); Swiss Technical Cooperation US$3.6 million (21 percent); and Government US$1.6 million (9 percent). 45. The proposed IDA and IDA administered credits would jointly finance technical assistance to the CCDR, the establislhment and operation of the FAU, the ORD Dedougou headquarters and extension service except for the purchase of motorcycles, the Bobo Dioulasso headquarters, vehicles, equipment and oper- ating expenses, and the training program except the cost for the purchase and operation of a vehicle and office equipment for the SERS specialist. The remaining co-financing would be on a parallel basis. ADF's contribution would be utilized for the strengthening of the extension services in the ORD of Bobo Dioulasso, the construction of a ginnery, the purchase of motor- cycles in the ORD of Dedougou, and the purchase, operation and maintenance of a vehicle and office equipment for a training specialist in SERS. The Swiss assistance would finance motorcycles for the ORD of Bobo Dioulasso, fertilizers, insecticides and cereal seeds for 1,120 ha of irrigation, 75 village grain storage facilities, the irrigation and women's component and studies on spontaneous migration. The Government's contribution would cover the costs of fertilizer and insecticide subsidies. 46. Individual experts would be recruited internationally for the positions of: two technical assistants to the ORD directors; two extension specialists; training assistant to SERS; irrigation engineer and a surveyor for ONdBI, technical assistant to the Permanent Secretariat of the CCDR; and technical advisor to the FAU. Costs for about 42 man-months of consulting services are estimated at approximately US$7,800 per man month. Establishment of a Revolving Fund tc help Finance Project Expenditures 47. In order to ensure the prompt availability of funds to meet project expenditures it was agreed at negotiations that immediately after credit effectiveness, IDA would deposit in a Special Account that the Government agreed to open in a local bank'an initial amount not exceeding US$400,000 equivalent, which would serve as a revolving fund. (Sections 2.02 (b) and 3.12 of the draft Development Credit Agreement). IDA would replenish the revolving fund after verifying that disbursement claims presented were eligible for financing out of the proceeds of the Credit. Procurement 48. For the components financed from the proceeds of the IDA and IDA administered credits, all contracts over US$50,000 for the procurement of  - 14 - vehicles (totalling about US$0.3 million) would be through international competitive bidding in accordance with IDA guidelines. Purchases would be grouped in packages of least US$50,000 whenever possible. Contracts for the construction of houses and offices (totalling about US$0.2 million) would be too small and often too dispersed to attract international con- tractors and would therefore be awarded on the basis of competitive bidding advertised locally in accordance with local procedures acceptable to IDA, as would be contracts under US$50,000. For contracts under US$10,000 local shopping would be employed. The services of consultants would be obtained in accordance with IDA guidelines for the use of consultants. Goods financed by the Canadian Government will be procured in accordance with IDA procedures. Goods financed by ADF and Swiss Technical Cooperation will be procured in accordance with their procedures, but should not result in higher costs than if all procurement were made under IDA procedures. Domestically manu- factured goods would be allowed a preference of 15% or the level of appli- cable import duty, whichever is lower. Disbursement 49. For those Project items financed by the IDA and IDA administered credits, the Association would disburse on the following basis: (i) 100 percent of foreign or 90 percent of local expenditures for salaries and wages of foreign and local personnel totalling US$4.05 million; (ii) 100 percent of foreign or 90 percent of local expenditures for passenger cars and office equipment totalling US$0.24 million; (iii) 70 percent of total expenditures for operation and maintenance totalling US$0.54 million; (iv) 70 percent of total expenditures for civil works (construction of buildings) totalling US$0.16 million; US$1.51 million would be unallocated. The IDA and IDA administered credits would be disbursed in the ratio of 6:5. Disbursements from the ADF loan and the Swiss Technical Cooperation grant would be administered directly by these co-lenders. Benefits and Risks 50. The project's main direct economic benefits would be an increase in production of cotton and cereals. At the farmgate, the economic value of incremental production at 1976 constant prices is an estimated US$5.7 million annually for cotton, and US$7.8 million annually for cereals at full development. Cotton is one of the country's most important source of foreign exchange earnings. The project at full development would add 9,800 tons of cotton lint to the present production of 16,000 tons which at 1976 market prices represents increased net foreign exchange earnings of about US$11.0 million. A total of 46,500 families would directly benefit from increased crop production which would generate higher incomes. In addition, improved roads and women's activities would indirectly benefit some 30% of all project area farmers.  - 15 - 51. The economic rate of return of the project has been calculated at 30 percent over 15 years. The highl late of return obtained is due to (a) the fact that the investment represented by the project is small relative to the infrastructure available from the ongoing cotton project (CR 225-UV) which is treated as sunk cost; and (b) the early increase in production and benefits resulting from the introduction of a highly productive technology for annual crops. 52. Sensitivity tests indicate that the rate of return would still be over 10 percent with a 25 percent reduction in benefits, a 33 percent increase in costs or a simultaneous reduction in benefits and increase in costs of between 10 and 15 percent. 53. Benefits are susceptible to sharp fluctuations due to erratic rainfall, and the recurrence of a severe drought would decrease production of both cotton and cereals. However, weather-related decreases in production would be partially offset by increases in cereal prices thereby lessening the impact on the rate of return. Delayed implementation of organizational changes with consequent delays in project benefits constitutes an important project risk. A sensitivity test shows that a delay of two years in project benefits would lower the rate of return to 9.5 percent. PART V: LEGAL INSTRUIENTS AND AUTHORITY 54. The draft Development Credit Agreement between the Republic of Upper Volta and the Association, the draft Development Credit Agreement between the Republic of Upper Volta and the Association as administrator on behalf of the Government of Canada, the Recommendation of the Commit- tee provided for in Article V, Section I (d) of the Articles of Agreement of the Association and the text of a Resolution approving the proposed Development Credit, are being distributed to the Executive Directors sepa- rately. 55. Special conditions of the project are listed in Section III of Annex IV. Special conditions for effectiveness of the IDA credit include: (i) the opening of the Special-Account (Sections 2.02 (b) and 3.12 of the draft Development Credit Agreement); (ii) the fulfillment of conditions of effectiveness under the ADF loan agreement (Section 6.01 (a) of the draft Development Credit Agreement); and (iii) the fulfillment of all conditions of effectiveness of the IDA-administered credit. (Section 6.01 (b) of the draft Development Credit Agreement). A special condition of effectiveness of the IDA administered credit would be the effectiveness of the IDA credit. 56. I am satisfied that the propused IDA credit would comply with the Articles of Agreement of the Association and that the IDA administered credit would comply with the criteria established by the recently approved agreement between the Government of Canada and the Association.  - 16 - PART VI: RECOMMENDATION 57. I recommend that the Executive Directors approve the proposed development credits. Robert S. McNamara President Attachments Washington, D.C. April 15, 1977  ANNEr I Page of 4 pagos TABLE 3A UPPER VOLTA - SOCIAL INDICATORS DATA SHEET LAND AREA (THOU KN21 ------------- - - ------------ --------------- UPPER VOLTA REFERENCE COUVTRIES (19701 TOTAL 274.2 MOST RECENT AGRIC. 1960 1970 ESTIMATE MALI MAUAlRIA S3&4ikL ** GNP PER CAPITA tUSSI 50.0 80.0 90.0 70.0 210.0 240.0 POPULATION AND VITAL STATISTICS _______________________________ POPULATION (MID-YR. MILLION) 4.3 5.4 5.9 5.1 1.2 4.4 POPULATICN DENSITY PER SQUAPE KM. 16.0 20.0 22.0 4.0 1.0 22.0 PER SO. KM. AGRICULTURAL LANO .. 28.0 .. 12.0 .. 39.0 VITAL STATISTICS AVERAGE BIRTH RATE l/THOUI 49.6 49.6 48.5 49.6 44.9 47.6 AVERAGE DEATH RATE (/THOU) 32.7 28.9 25.8 27.8 24.7 24.4 INFANT MORTALITY RATE l/THOU) 182.0 .. .. 120.0 .. 156.0 LIFE EXPECTANCY AT BIRTH (YRSI 32.2 35.5 38.0 37.2 41.0 40.0 GRnSS REPRODUCTION RATE .. 3.2 3.2 3.3 2.9 3.0 PCP'ILATICI GROWTH RATE (I) TOTAL 2.6* 2.2 1.8* 2.2 1.8 2.6 URBAN .. 4.0 .. 7.8 6.0 URBAN POPULATION (I OF TOTAL) 5.0 11.0 .. .. 14.2 29.0 AGE STRUCTURE (PERCENT) 0 TO 14 YEARS 42.0 43.0 43.0 49.1 41.8 41.2 15 TO 64 YEARS 55.0 54.0 54.0 49.3 55.1 54.9 65 YEARS AND OVER 3.0 3.0 3.0 1.6 3.1 3.9 AGE DEPENDENCY RATIO 0.8 0.9 0.9 1.0 0.8 0.8 ECONOMIC DEPENDENCY RATIO 0.8 /a 0.8/a * - 0.9 /a ..- 1.2 /a FAMILY PLANNING ACCEPTORS (CUMULATIVE. THOU) .. .. .. USERS (2 OF MARRIED WOMEN) .. .. .. EMPLOYMENT TOTAL LABOR FORCE (THOUSAND) 2500.0 3000.0 . 2800.0 .. 1600.0 LABOR FORCE IN AGRICULTURE (2) 92.0 89.0 / 91.0 85.0 73.0 UNEMPLOYED (2 OF LABOR FORCE) .. 3.0 E .. .. .. 7.0 INCOME OISTRIBUTION 2 OF PRIVATE INCOME REC0D BY- HIGHEST 52 OF HOUSEHOLDS .. .. .. HIGHEST 20S OF HOUSEHOLDS .. .. .. LOWEST 202 OF HOUSEHOLDS .. .. .. LOWEST 402 OF HOUSEHOLDS .. .. .. DISTtIBUTION OF LAND OWNERSHIP X OWNED BY TOP IOX OF OWNERS .. .. .. 2 OWNED BY SMALLEST IO OWNERS .. .. HEALTH AND NUTRITION ____________________ POPULATION PER PHYSICIAN .. 92760.0 75220.0 a 41490.0 17210.0 16640.0 POPULATION PER NURSING PERSON 4260.0 /b c4230.0 3890.0 Xb 3860.0 4320.0 2680.0 POPULATION PER HOSPITAL BED 1810.0 m 1670.0 d 1170.0 T 1390.0 A 2790.0/a 810.0 b PER CAPITA SUPPLY OF - CALORIES IS OF REQUIREMENTS) 85.0 82.0 72.0 92.0 89.0 97.0 PROTEIN (GRAMS PER DAY) 66.0 66.0 59.0 1 69.0 75.0 64.0 -OF WHICH ANIMAL AND PULSE .. 22.0/a . 23.0 / 44.0A 28.0 /c DEATH RATE I/THOU) AGES 1-4 .. .. .. EDUCATION ADJUSTED ENROLLMENT RATIO PRIMARY SCHOOL 8.0 13.0 13.0 A 20.0 /d 16.0 /c 38.0 /d SECONDARY SCHOOL .0/e 1.0 I 1.0 3.0 2.0 7- 15.0 L YEARS OF SCHOOLING PROVIDED (FIRST AND SECOND LEVEL) 13.0 13.0 13.0 12.0 13.0 13.0 VOCATIONAL ENROLLMENT (I OF SECONDARY) 21.0 15.0 17.0 Ia 40.0 7.0 ADULT LITERACY RATE (X) 7.0 .. .. 10.0 10.0 HOUSING PERSONS PER ROOM (AVERAGE) .. .. .. OCCUPIED DWELLINGS WITHOUT PIPED WATER 1I) .. .. .. ACCESS TO ELECTRICITY (2 OF ALL DWELLINGS) .. .. .. RURAL DWELLINGS CONNECTED TO ELECTRICITY (XI .. .. .. CONSUMPTION RADIO RECEIVERS IPER THOU POP) 1.0 16.0 16.0 12.0 47.0 69.0 PASSENGER CARS (PER THOU POP) 0.4 1.0 1.0 71 1.0 4.0 9.0 ELECTRICITY (KWH/YR PER CAPI 2.0 5.0 8.0 11.0 63.0 73.0 NEWSPRINT IKG/YR PER CAP) .. .. .. .. 1.3 0.1 SEE NOTES AND DEFINITIONS ON REVERSE  ANNEX I Page 2 of 4 pages NiOTES Unless otherwise noted, data for 1960 refer to sany year between 1959 and 1961, for 1970 between 1968 and 1970, and for Moat Recent Estinote between 1973 and 1975. r0 ff. ferene b.etwee 15BR population growth rate and U.N. rote of eaturel increase hone not yet been r-occilod. uuSenegSal has been selected o an. obJetti-e country for Upper Volta sInce its 1970 iNP in about four tinee that of Upper vo1tlta; they both are in the.sam geographical area (Sahelian region), share sculler nentary eyeten and bane the neo etonesic groth rate in the period 1960-71, and have the a-n literacy rote of 5-Il portent. UPPER VOLTA 1960 /sRatio of populatin ceder 15 wed 65 and over to total labor ferc; lb 1963, Ic Ineludee nldwie. assi-statore and ass istant aidaines Id Gnvern,cet honpitol establishnent; In 12-18 years of age. 1970 / Ratio of population ouder IS and 65 and -vr to total labor forte; lb EasPleYtnet in agriculture including liv-u-oc wooctc to 96 p-rceo of labor farce; /c Sn urban area, aboot 20 percent; /d Gonr--et hospital establith-ets; /c 1964-66; /f 12-ti years of age MSOT RUCENT fSTDiATE /s 1971, /b Uncleding ldoives,92 Ic Goweromnt hospital ostablilaleent, /d 1969-71 anerage, _______ _______ _____ - /. 12-18 oars of age, If 19 2 MAll 197U0 / Ratio of population under 15 and 65 and over to tocol lao oc, /b EC-rsnet hospital establishnents only, Ic19b4-66, Id 6-14 and 15-17 years of ago resp-utlely. NAURITANIA 1970 /aCucr-ot hospital enaleunnn b 1964-66, /c 6-12 Peace (1970) and 12-18 years (1968) repectincly. SENECAL 1970 I Ratio of populetioc under 15 and 65 and over to total labor force- lb Goveasnot hospital eutablisheonts, Ic 1964-66, /d Unadjusted, /c L-wo secondary loca. 84, Sept 0, 1976 DEFlNrrTonS OP IOCIAS. IISDICATOIDS Laod Area rhon kea2) Efr57 t'q lc20 ours Leg Porao - FPopsastin diodd bly oI, ,ber of -rcic ic Total -Tonal esef.c ...po is-,e land area and Inland watrs, male and fe-ut grad .... . araa, `trataed~~ or "re rrifto~d' n_,re,an Agri..- Most recess e stimate of agricultural area used temporarily or a..iliary personnel with training or euperlenc.. permanetly for crops, p-otr-s, narket & hitches gardens or to lie P-ewlation coo leosital had - Population dinided by nomber of hospital beds fallow. available ins public asd pri-ate genera an .d specialied hospital and rehabilitation centern; eacludas n-ring ho-sos and estab1isoeta for ONP per capit I(US$5 - NlP par capita estimates at Ourrent market prices. custodial and preventive coa. caclae by neo cnnrsUon etbod as World Bank Atlaa (1973-75 Per capita supyof colonies (2. of regairemsetnl - Couputed from energy basis); 1960,I1970 and 1975 data, eqivalent of set food supplies -oallble is cosotry per -.pita Per day, avoUla,blo aepis oprise do.tesit production, imports I... e-porte, Ppltion and vital statistics an ho.on is stonk; net supplies ocldeaieat feed, needs. q ...tl- Pepslato laid-nc. millionS - is of July first: if not a-ailable, ties weed In fond poceaoslig od loose in distributUo; eqirmet a_rage of two end-year estimats 1960. 1970 and 1975 data, were estimated by PAO based on physiological nee ds for tonens activity and health considering onviroonetal tonperature. body weights,. age and Popula,tion denalty-pnor 50am ksw MAd-year population per square bile- sea distributions of population, red allowiag 10%. for aaste at house- ene 10 otre)e total are, bold level. Peculation doetty- per euare .4 f racl. lend - Coputed as abov for Per .aeita pwoel of protsin (Urm- e ay rtI cnete e agricultural land only. capita net supply o f food per day; set supply of food is defined as ab=e requireesots f or all countries established by 818D6 Ecosnai Vite1 statistics Research Services provide for a Jisimso allownce of 69 Sra-n Of total Crude birth rate Per thousan.d, -eoecoa- Ann.. 1 line births per thousand protain per day, and 28 grano of animal and pulse preteEn, of which of mid-peer popoltion; ten-year arith.etic averages ending to 1960 end 10 gram should be animal protein; these standards are levr thas tbame 1970,edfn e-yar nrage -ndt i.I 1975 for mos t r-ct e-tiuate. of 75 scam of total procsia ned 23 grame of animal prncts s a Crude death rate con rthouand, average -_Aenuasi deaths_eec thou.s.nd of aid- epprage f or the world, proposed byPFAO in the Third Wecld read Sure)' year population; ton-year arithmetic averges ending in 1960 and 1970 and Pe vi,r~,nALeuppiv fr--om Hj aujeei ml.t.ag - Protein ncppln of fend fino-year aca.g ending, in 1975 for noel: recont e-tmmate. ,,S vdfo 'a"eas and pg."L.s in gre par dy. Sefant mortality rate i/thou - Annualdeths ofWinants ander one yea of Deaith_cret C/thou) sees 1-4 - Aannual deaths per thousand i. age gromp age per thousand live births. 1-4 years, to children is thia ago group; suggestd as as indicator of Llfet sxpecttany a birth lyre) - Aneroge nombr of yearn of life remaining malnutrition. at irh; toaly fin-yerenrges ending Us 1960, 1970 and 1975 for developing countries. dcto Cross reproduction rat -_Average somber of line daughters a oe ill Aditd -nrllmet ratio -rlrysbo-grlmntfalages as beer ins her norma reproductive period if ehe experiences prs....c ~g.- percetartge of primar scolae popultion , incledes children aged specific fe rtility rates; uasually fin-year_anregen eoding in 1960, 6-11 years but adjunntad for diffe...st lengths of primary education; 1970 end 1975 for develping coutries. for coutries with universal education, enrollmet ney es..ed 100% Pepulation growth rate (7.1 - total - Compossd annual growth rates of aid- since s.- pupils are below or show the official sehoni age. yea popaletion fec 1950-60, 1960-70 and 1 970-75. Adinted "eIrolma ratE - seondary school - Computed ma abowe; Pnltion growth rate (C.1 - urban - Computed lUbe growth rate of total secondary education requires at least four years of approved prImary population; different definitions of urbon areas may affect compara- i-ot-ution; provides gene ral, vonationa1 or teac.her training biliry of data namsg c-ssttrie. inetructions far pupils of 12 to 17 ysara of age; correspondence urban poZwlatdion (7. of total) - Ratio of echos to total population; ceurses are general ly ecldd. differetdfinitiona of urban areas may affect comparbility of data Years of schooling providedludfiret and second le-al) - Total yeara of among countries schooling; at secondary level, vocational instruction may be par- ARe structure ...roet) -Children (0-14 years), -kring-age 115-64 years), holly or wompletely exclded. and retired (5 years ad ownr) aso percentages of mid-year population. y ationt -eIllmo"t (7. of se.cndary) -Vntoa ntteim Age de.pendency ratio - Ratio of population under 15 and 65 and ovr to include tehnical, industrial ox other progres which sperata thm of agen 1throu,gh 6.independestly en as dprmtsoacndary immatitutUons. geonomc depndenc ratio -6Raio of population under 15 and 65 and ever Adulrt lite.racy resin (7. -t Litrae dst (ble to rea and write) me to the labor farce in age group 15-64 years. pretag of total adult population aged 15 yasos and over. Penile elenning - accptors (co_ultie ,thou5 - Comla tine asaber of acceptora of birth-control devicee onder auapices of national family Hme"ins plemeingprogrm anc icption. Persona pr room (urban) - A-erage unber of persons per r-m in family planig- usrs1 o mr~ried woe) - ..rcetngeo of married oncapied covetional dwellings in urban areas dwallipg ecluda w0omen of child-bearing age (15-44 years) who -e birth-control deicee- so-eiaetsrcue n nnuied)parta. to ellImrried womn in sam age group. Occuied dwellings without pipd wtr0. - Occupied conventional dwellings in arbaum ad rurel ares withou timnide sor outside piped mE.lemmet voter failities 0percentage of all oncu.plad dweling.M Total labor ferce Ithousend) - Econmically active persona, including .c."ao letict (7. ef all dwellings) - Convetionalldwellings seind forces end unemployed but ...cluding haoew"inen, studenst, etc.; with electrinity in living quarters as percen.t of total dwsllimg in definitU a invroncountries eat nor coparable. urban and rura areas. Labor foc in. agiclur . - Agricultural labor fore (in farming, Rural dwellings concted to electricity 17.) - Conputed as above for foretry, heasting end fishing) as percentage of total labor force, rural duelligo only. Seomplseed 17. of labor forceS - Usonplyed arm osually defined as persona whe are able and willing to take e Job, out of a Job on a givns day, Consunttion remined ou tof a job, and maeking work for a specified misim period Iladle receicers fper thou popS - All types ef receivers for radEo bred- not macending one waeek;-my set he comparable between countries due to casts to generaml publin per thousod of population. esclude. different definitiona of oneployed and sorce of data, e.g. , omple- onlicened receivers in ce-tries end in years when registretion of neat office statistics, saple euvey, compulsory unonpleysnt inosrsce. radio sets us in effect; data fo,r re.est ye-r may sot he coparable sinc mot cactries abolished lcoig inron dintribution - Percentage of private incom (both is cash and kind) Possa a e ler thou pOpS - Paaeger crs comprise motor cars received by richeet 57., richeet 207., poorest 207., and poorest 407. of setn lin than eight peroono; -ntude. aebuls1a.. hearse and households, military Vehicles. glectricity (kwh/yr per cap) - Anneal cons-ptios of induatria1, cn Distribution of lend oumrship - Percentsges of land easd by wealthiest mmiail, public and prIvate electricity in hilowtt hears per c-pita, 107. ad p moret 107. ef land ouneo. generaly based en produc tion dta, without allowance for tose oI grids but aIlTeogfer importa and esporte of electrIcity. Nealt and entritioLesrntIey e cap) - Per capIta annual toooption in kIlograms popuation pe ehyasicin - PepuLation divided by somber of practicing estimated from dosmetic production plus set import of newprint. pbysiciana qunlified from a medical school at omi-oreity level.  UPPER VOLTA ANNEX I ECONOMIC INDICATORS Page 3 of 4 pages . ~~Average Anrnual Growth Bale 1967 1970 1971 1972 1973 1I7* 15 1970-1975 (in millions of US dollars at 1967-69 prices and exchange rate) NATIONAL ACCOUNITS Gross Domestic Product 310.5 325.6 337.4 336.2 334.2 361.5 391.6 3.8 Grains from Termrs of Trade 0.2 -4.1 -1.6 5.8 3.4 -1.5 -0.9 . Gross Domestic Income 310.7 321.6 335.9 342.0 337.6 359.9 390.7 4.6 Imports (incl. NFS) 61.4 64.4 85.1 97.1 95.1 77.3 112.5 14.2 Exports (imoort capacity) -28.1 -29.3 -31.7 -4.9 -37.3 -31.5 -38.2 6.8 Resource Gap 33.3 35.1 53.4 56.1 5-oT 25 8 20.2 Total Consumption 315.5 319.4 346.0 352.0 345.6 357.6 417.2 5.6 Investment 28.5 37.3 43.4 46.2 49.8 48.2 47.8 5.3 National Savings 18.6 23.8 20.1 23.4 _18.9 21.5 -1.7 Domestic Savings -4.7 2.2 -10.1 -10.0 - 8.0 2.3 -26.5 VALUE ADDED BY SECTOR Agriculture 137.9 136.3 137.1 131.4 133.0 149.7 157.0 3.0 Industry 44.8 50.1 55.4 57.8 60.7 64.3 70.9 7.2 Services 113.1 122.1 126.9 129.0 121.2 120.4 134.2 2.1 Total 295.8 308.4 319.4 318.2 3124.9 334.5 362.1 3.3 LABOR FOPRF OLPUrT PER WORKER In Thousands of Persons % of Total In millions of US$ or 1976 % price 1974* 197i4* 19724* 122 Agriculture 2,830 95.5 72 46 Industry 45 1.5 1,956 1,262 Services 89 3.0 1,851 1,192 100.0 155 100 GOVERNMENT FINANCE (in billion of CFAF: current) 1972 1973 1974 1975 Current Receipts 11.46 12.92 15.14 19.60 Current Expenditure 9.69 11.26 11.78 20.63 Current Surplus 1.77 1.-6 3.36 -1.03 Capital Expenditure 1.78 1.27 1.26 2.00 External Assistance (Net) 0.55 0.68 0.92 1.65 Overall DBlance 0.56 1.07 3.02 -1.38 PUBLIC SECTOR INVESTMENT In billions of CFAF: current % of Total 1971 1972 1973 1974 1971 - Primary Sector 1.4 1.5 2.2 3.7 17.3 Industry and Services 1.4 0.9 5.6 4.4 24.1 Economic Infrastructure 3.6 4.8 6.5 8.5 46.1 Social Infrastructure 0.5 0.6 0.8 0.9 5.5 Research and Studies 0.5 - 0.3 0.5 2.7 Administrative Infrastructure - 0.8 0.7 0.7 4.3 Total :7 7 16.1 18.7 100.0 FINANCING 1971 1972 1973 1974 1971 - 74 Domestic 3.1 3.1 3.7 5.5 30.3 of which : Gov. Budget (1.4) (1.1) (1.3) (1.0) (9.5) Foreign 4.3 5.5 12.4 13.2 69.7 Public (4.0) (4-3) (10.2) (11.1) (58.3) Private l 4 (1.3 ( 2.a) ( 2.1) (1.4) Total 7.4 A.7 16.1 18.7 100.0 * Preliminary Not Applicable  TRADE BALANCE AND CAPITAL FIOW ANNEX I Page 4 of 4 BALANCE OF PAYMENT TRADE DETAIL (in millions of current US$) 1970 1972 1974 1975 (in millions of constant 1967-69 US$) EXPORTS 19,70-75 % Exports (ind. NFS) 32.1 46.8 67.7 81.7 Livestock 10.0 33.9 Imports (ind. NFS) 70.6 111.0 166.2 240.3 Cotton 6.2 21.0 Resource Balance (X-M) -38.5 -64.2 -98.5 -158.6 Groundnuts 1.5 5.1 Other Goods 11.8 40.0 Net Factor Service Income 14.4 23 .9 30.7 35.7 Total 29.5 100.0 Interest (Net) 1.0 1.5 1.8 2.0 Direct Investment Income -1.4 -3.0 -4.7 -6.o IMPORTS Workers Remittances 14.8 14.3 33.6 39.7 Food and Beverages 19.8 20.0 Net Current Transfer (+) 9.3 4.4 10.4 17.3 Petroleum,Oil,Lubricanss 6.5 6.6 Current Account Balance -14.8 -26.0 -57.4 -105.6 Other Intermediate Goods 36.2 36.7 Machinery and Equipment 36.3 36.7 Direct Investment (Net) 1.0 2.6 5.0 5.0 All Other Goods Official Capital Grant 21.4 31.3 53.2 84.2 Total 98.8 100.0 Public 14 and LT Loan Disbursements 1.5 4.7 16.7 22.5 Public M and LT Loan Repaynnents -1.6 -1.5 -2.6 -3.6 Net Public M and LT Loan 0 3.2 14.1 18.9 Net Transactions with IMF 0.8 0 0 0 Short-term Credit (net) 6.,2 0.4 0.5 1.0 Capital Transactions N.E.I -4.3 -9.1 -6.7 -10.5 Change in Reserves (- =. increase) -9.4 -2.4 -8.7 7.0 Reserves - End of Period EYThRNAL PUBLIC DEBT AND DEBT SEF-VICI (in millions of current US dollars and end year). 1972 1973 1974 1975 Outstanding Debt 41.3 123.5 146.5 185.6 of which: Disbursed (18.7) (29.9) (46.0o) (62.9). Debt Service 2.0 3.0 3.7 5.0 Interest ( 0.5) ( 0-7) ( 1.1) ( 1.4) Principal ( 1.5) ( 2.3) ( 2.6) ( 3.6) Debt Service as % of Exports 4.3 5.3 5.4 6.1 Debt Service as % of GDP 0.5 0.7 0.7 0.8 IBRD AND IDA LENDING AND ITS SHARE IN PUBLIC DEBT (in millions of current US dollars and end year) 1971 1972 1973 1974 1975 IDA Outstanding and Disbursed 0 1.6 3.2 5.5 11.4 IDA Share ir Total: (%) Commitments 0 37.1 11.2 59.6 32.2 Gross Disbursements 0.2 33.2 12.2 13.7 25.8 Net Disbursements 0.4 48.7 15.1 16.3 30.7 Debt Service 0 0 0 0 0.9 Total Debt 0.1 8.5 10.9, 12.0 18.1 RATE OF EXCHANGE 1971 1972 1973 1974 1975 1976 US$1.00 = CFAF 227.03 252.21 222.70 240.50 214.32 24,5.00  ANNEX II Page 1 of 6 STATUS OF BANK GROUP OPERATIONS IN UPPER VOLTA A. On-going Projects STATEMENT OF IDA CREDITS (as of March 31, 1977) (US$ million) Credit Amount (less cancellations) Number Year Borrower Purpose IDA Undisbursed Two credits fully disbursed 3.0 - 225-UV 1970 Republic of West Volta Cotton 6.2 0.5 Upper Volta 316-UV 1972 Republic of Roads 4.2 0.9 Upper Volta 430-UV 1973 Republic of Education 2.9 2.1 Upper Volta 431-UV 1973 Republic of Telecommunications 4.5 1.7 Upper Volta 442-UV 1973 Republic of Drought Relief 2.0 0.1 Upper Volta 496-UV 1974 Republic of Bougouriba Agricul- 8.0 6.0 Upper Volta tural Development 557-UV 1975 Republic of Livestock Develop- 9.0 8.8 Upper Volta ment Project 579-UV 1975 Republic of Rural Roads 7.5 7.5 Upper Volta 640-UV 1976 Republic of Rural Development 9.4 9.4 Upper Volta Fund II 653-UV 1976 Republic of Roads III 20.0 20.0 Upper Volta TOTAL 76.6 57.0 of which has been repaid - TOTAL now held by IDA* 76.6 TOTAL undisbursed 57.0 * Prior to exchange adjustment of US$0.2 million.  ANNEX II Page 2 of 6 B. STATEMENT OF IFC INVESTMENTS (as of March 31, 1977) NIL C. PROJECTS IN EXECUTION 1/ Credit 225: West Volta Cotton Project. US$6.2 Million Credit of December 30, 1970; Effective Date: May 1, 1971; Closing Date: December 31, 1976 - Extended to June 30, 1977 The project is part of a cotton production development program in West Volta, which originally started with FAC financing in 1963. It consists of expansion of cotton cultivation, improvement of yields, credit and extension services, and provision of better communications and processing facilities. The project also includes funds for detailed engineering of secondary roads and preparation of the Bougouriba Agricultural Development Project, both of which have been completed. The total area under cotton in 1976/77 will be 32,000 ha more than in 1970/71, about in line with appraisal estimates. However, seed cotton output in 1976/77 is expected to be 38,500 tons higher than that of 1970/71 thus exceeding appraisal estimates of incre- mental production by 17%. Due to lagging cotton production during early pro- ject years which were drought years, no additional ginnery was constructed at ilounde. Good progress was made in the improvement and maintenance of the feeder road network in the project area. Credit 316: Road Project. US$4.15 Million Credit of June 26, 1972 (As amended on March 25, 1974); Effective Date: December 31, 1974; Closing Date: December 31, 1977 The project originally comprised: (a) the reconstruction of the Solenzo-Koudougou (70 km) and Hounde-Bereba (27 km) roads, and (b) feasibility studies for about 400 km of primary roads, and engineering of those sections found to have the highest priority. Construction of the Solenzo-Koudougou road began in March 1974 and is now completed. Construction of the Hounde- Bereba road was deleted from the project as cotton production did not merit the construction of a ginnery at Hounde and without the ginnery there was no justification for the road. These funds were transferred to a drainage works construction component. Regarding part (b) out of four proposed roads only two, from Bobo-Dioulasso to Hounde and Bobo-Dioulasso to Banfora (a total of 190 km) were selected for feasibility studies as these were the only roads which showed a preliminary satisfactory rate of return. Construction is about to begin on the road component of the Third Highway project (Cr. 653-UV) on 1/ These notes are designed to inform the Executive Directors on the progress of projects in execution, and in particular to report any problems which are being encountered, and the action being taken to remedy them. They should be read in this sense, and with the understanding that they do not purport to present a balanced evaluation of strengths and weaknesses in project execution.  ANNEX II Page 3 of 6 the basis of these completed engineering and feasibility studies. Due to currency,realignment and to cost overruns on the road construction part of the project, the dollar cost of the project increased. Consequently, to enable project completion, on March 25, 1974 the Association approved an increase in the amount of the credit from US$2.8 million to US$4.15 million. Credit 430: Education Project. US$2.85 Million Credit of September 28, 1973; Effective Date: June 27, 1974; Closing Date: June 30, 1979 The project was designed to improve the quality and enlarge the scope of rural education in the ORDs of Dedougou, Koudougou, and Kaya. The project originally provided for: (a) the construction and equipping of 40 centers, and the equipping of 80 existing centers for the training of young farmers (CFJAs), (b) the organization, equipping, and servicing of 150 post- school cooperative groups for young farmers over 18 years of age; (c) the creation of three rural development training centers; (d) the provision of science laboratories for 21 secondary schools; and (e) related and supporting technical assistance for project implementation. The three rural development training centers were originally provided under the project to train graduates of rural education centers as rural development agents. However, as project implementation has been delayed, it is unlikely that graduates will be ready for further training as rural development agents during the project period. Therefore the component was deleted from the project, and the funds released will be used to provide additional support facilities and materials for the training of rural education instructors and agricultural agents for the group cooperatives. Physical implementation of the project is progressing satis- factorily; construction of most project buildings has commenced and most of the equipment has been ordered. Establishment of training centers is pro- ceeding well, but difficulties have been encountered in the training of instructors, and in the establishment of young Farmers' Cooperative Groups. Credit 431: Second Telecommunications Project. US$4.5 Million Credit of September 28, 1973; Effective Date: May 23, 1974; Closing Date: June 30, 1978 The Credit was approved on June 21, 1973, signed on September 28, 1973, and became effective on May 23, 1974. This credit, the second made to Upper Volta for telecommunications, finances the major part of Upper Volta's 1974-77 telecommunications expansion program. The project comprises provision of automatic and trunk switching equipment, local distribution networks and subscribers' apparatus, microwave links, auxiliary construction and equip- ment, consultants' services and training of personnel. The executing agency for the project is the "Office des Postes et Telecommunications de Haute- Volta" (OPT), a semi-autonomous public entity. The project execution is on schedule. All contracts were awarued by the end of 1975, and the project costs have increased only slightly, mainly for local costs, and the IDA credit is judged sufficient to cover the project's foreign exchange require- ments. Project completion is expected by December 1977. Preliminary financial statements for 1976 indicate a rate of return of 3.6% and a large cash deficit.  ANNEX II Page 4 of 6 The forecast indicates futther deterioration in future years. A tariff increase to yield about 30% additional revenue, increase in equity capital and exemption from import duties have been proposed to restore financial viability. Action by the Government is expected soon. Credit 442: Drought Relief Project. US$2.O Million Credit of December 7, 1973; Effective Date: April 24, 1974; Closing Date: June 30, 1976 - Extended to June 30, 1977 This is one of six credits made available to the Sahelian countries to help people in drought affected areas re-establish food self- sufficiency. In Upper Volta the project is executed by the Rural Development Fund established under Credit 317-UV. The project originally envisaged four sub-projects; (i) construction and equipment of 150 tube-wells; (ii) con- struction of three earth dams; (iii) purchase of road equipment for repair of feeder roads; (iv) construction of six seed storage warehouses. Procurement has been completed, but the execution of the tube-well drilling program, the most important component of the project, begari only recently. The delay of almost one year is due to default by suppliers of vehicle parts and drilling pipes. 75 wells have been completed thus far. Project completion was extended by one year to allow for completion of the tubewell drilling program. Credit 496: Bougouriba Agricultural Developmefit Project. US$8.0 Million Credit of July 19, 1974; Effective Date: July 18, 1975; Closing Date: May 31, 1979 The project, to be carried out over a four year period, is the first major effort to develop the natural and human resources of the Bougouriba ORD. The project will concentrate on the areas presently free of onchocerciasis and includes food crop and cotton development, a program for prophylactic vaccinations of livestock, provision of agricultural credit and extension services, well construction, feeder road improvement, intensive staff training, applied research and road studies. In its first year of operation, the project has made significant progress. Management is competent and has begun a substantial staff training-program, surveys of the ORD to monitor agricultural and livestock activities, the re-shaping of 263 km of roads, and the gravelling of 18 km of roads, the construction of earthworks and small structures, and the establishment of seed farms. The project account- ing service is fully operational. A follow-up project for the area is present- ly under consideration. Credit 557: Livestock Development Project. US$9.0 Million Credit of June 18, 1975; Effective Date: November 24, 1975; Closing Date: June 30, 1981 The project, to be carried out over five years, is a broadly based program to assist cattle production in the Dedougou and Bobo-Dioulasso ORDs through group ranch development, the improvement of veterinary services, livestock marketing, meat processing and the provision of technical assistance.  ANNEX II Page 5 of 6 It will help about 300,000 traditional cattle producers, and introduce com- mercial tanching to the traditional sector. The project is running slightly behind schedule; only the investment programs for the Project Unit and the animal health component are proceeding as originally projected; however, planning for the Group Ranch Center, the rehabilitation of the Bodo-Dioulasso abattoir and the livestock marketing component is sufficiently advanced, that no future slippages are expected to occur with regard to these three components. Group ranch development has proceeded slowly; nevertheless, the site for the first 18,000 ha group ranch has been selected, and Government has issued the group ranch statute. A consultant will be engaged to write up the accounts for audit, following the sudden departure of the expatriate project accountant. Credit 579: Rural Roads Project. US$7.5 Million Credit of August 13. 1975; Effective Date: February 11, 1976; Closing Date: December 31, 1979 The project, to be carried out over four years, provides for the improvement and subsequent maintenance of about 1,200 km of rural roads, and maintenance of about 2,100 km of existing roads, the strengthening of the Service d'Entretien des Routes Secondaires (SERS) through technical assistance to the Ministry of Public Works, and the implementation of the above road program and procurement of highway equipment. Bids for equipment for feeder road improvement and maintenance works have been received and the total cost of the lowest evaluated bids are slightly below appraisal estimates. All equipment should be delivered on schedule. Recruitment of local personnel is advancing well. Terms of reference for an evaluation and impact study have been discussed with the Government. Credit 640: Rural Development Fund II Project. US$9.4 Million Credit of June 21, 1976; Effective Date: January 24, 1977; Closing Date: December 31, 1980 The project will be carried out over five years (1976/77 through 1979/80), and will provide a line of credit to the Rural Development Fund (Fonds de Developpement Rural - FDR) for investment in small-scale rural projects, the main purpose of which would be to increase crop production and improve village water supplies. Program activities will include: bottomland development (2,700 ha); erosion control works (9,200 ha); small scale irriga- tion and improved bottomland development (500 ha); construction of 520 wells, 180 tube-wells, 400 village warehouses and 20 village centers; provision of medium term credit for agricultural equipment, US$0.5 million equivalent; and provision for unidentified projects. In addition, studies for economic dev- elopment of areas freed from onchocerclasis will also be financed under the project. Project Management has begun staff recruitment and the procurement of vehicles and equipment.  ANNEX II Page 6 of 6 Credit 653: Third Highway Project. US$20 Million Credit of July 15, 1976; Effective Date: December 15, 1977; Closing Date: June 30, 1980 The project consists of (a) the reconstruction to paved standard of the Banfora-Bobo-Dioulasso-Hounde road (182 km) comprising the most import- ant transportation link in the high potential agricultural region of the South- west, (b) the procurement of equipment for vehicle weight control including provision of fixed facilities for installation and traffic counting equipment, (c) consulting services for a study of road maintenance and pre-investment studies for about 150 km of roads. Consultants will also be expected to formulate a long-range maintenance study, (d) technical assistance for strengthening the Directorate of Transport (DOT) and assisting the Office de Promotion de l'Entreprise Voltaique (OPEV) in the promotion of the domestic civil works industry.  ANNEX III Page 1 of 4 UPPER VOLTA - WEST VOLTA AGRICULTURAL DEVELOPMENT PROJECT Credit and Project Summary Borrower: Republic of Upper Volta Amount: (a) IDA Credit of US$3.6 million equivalent (b) IDA administered Credit of Can$3.0 million Terms: (a)' Standard IDA terms (b) Standard IDA terms Co-lenders: African Development Fund, Canadian Government, Swiss Technical Cooperation Project The project would be carried out over a five year period Description: (1977-1981) and would comprise: (a) strengthening the Permanent Secretariat of the CCDR through technical assistance and through the creation -- of a Financial and Administrative Unit (FAU); (b) providing the ORDs of Dedougou and Bobo Dioulasso with the staff, equipment and transportation necessary to implement an agricultural development program; (c) providing incremental seasonal inputs (seed, fertilizer and insecticides); (d) constructing small-scale irrigation schemes totalling 1,120 ha; (e) building a 22,000 ton ginnery with storage facilities; (f) construction of 75 small village grain stores; (g) creating a training center for project staff and farmers 'which would also serve the livestock project (Cr. 557'-UV) at Samorogoan; (h) carrying out studies and surveys, followed by pilot projects to help new settlers; and (i) carrying out e pilot scheme to improve the situation of women in -bout 40 villages. Estimated The project is estimated to cost US$17.2 million net of taxes Costs: (at end-1976 prices) with foreign exchange costs of US$8.9 million or 52%. Taxes are estimated at US$1.7 million equi- valent. Details of cost estimates are summarized in the following table:  ANNEX III Page 2 of 4 UPPER VOLTA West Volta Agricultural Development Project Summary of Project Costs (net of taxes) Source of US$ Million Financing Local Foreign Total I. Permanent Secretariat of the CCDR IDA/Canada 0.1 0.2 0.3 II. Financial and Administrative Unit IDA/Canada 0.2 0.4 0.6 III. ORD Dedougou 1. Headquarters IDA/Canada 0.2 0.3 0.5 2. Extension Services IDA/ADF 1.8 0.4 2.2 IV. ORD Bobo-Dioulasso 1. Headquarters IDA/Canada 0.2 0.3 0.5 2. Extension Services ADF/Swiss 1.5 0.4 1.9 V. Training a) ORD Dedougou IDA/Canada 0.1 0.1 0.2 b) ORD Bobo Dioulasso IDA/Canada 0.3 0.2 0.5 c) SERS IDA/ADF - 0.2 0.2 VI. Inputs a) Rainfed Government - 1.2 1.2 b) Irrigated Swiss - 0.2 0.2 VII. Ginnery ADF 0.9 1.4 2.3 VIII. Cereal Storage Swiss 0.3 0.1 0.4 IX. Irrigation Swiss 0.2 0.6 0.8 X. Women's Activities Swiss 0.3 0.2 0.5 XI. Studies and Surveys Swiss 0.1 0.6 0.7 Total (I-XI) 6.2 6.8 13.0 Physical Contingencies (3.3%) 0.2 0.3 0.5 Expected Price Increases (26.6%) 1.9 1.8 3.7 Total Project Costs 8.3 8.9 17.2  ANNEX III Page 3 of 4 Financing Plan: The proposed IDA credit of US$3.6 million together with the proposed IDA administered credit of Can$3.0 million (US$2.9 million) would finance 38 percent of project costs net of taxes. The remainder of the project costs will be financed as follows: African Development Fund (ADF) US$5.5 million or 32 percent of net project costs; Swiss Aid US$3.6 million or 21 percent of net project costs. IDA has extended a US$25,000 Project Preparation Facility to the Government to finance the costs of pre- liminary studies and surveys. Total Costs Net of Taxes US$ million % Total IDA 3.6 21 IDA administered 2.9 17 credit ADF 5.5 32 Swiss Technical 3.6 21 Cooperation Government 1.6 9 Total 17.2 100 US$ Million Estimated Annual Cumulative Disbursements: Fiscal IDA Admin- IDA Admin- Year IDA istered Total IDA istered Total 1977 0.3 0.3 0.6 0.7 0.3 1.0 1978 0.7 0.6 1.3 1.0 0.9 1.9 1979 0.6 0.6 1.2 1.6 1.5 3.1 1980 0.7 0.4 1.1 2.3 1.9 4.2 1981 0.6 0.6 1.2 2.9 2.5 5.4 1982 0.7 0.4 1.1 3.6 2.9 6.5 Procurement Arrangements: For the components financed from the proceeds of the IDA and IDA administered credit, all contracts over US$50,000 for the procurement of vehicles and fertil- izers and insecticides would be obtained through in- ternational competitive bidding in accordance with IDA guidelines. Purchases would be grouped in pack- ages of at least US$50,000 whenever possible. Con- tracts for the construction of houses and offices would be awarded en the basis of competitive bidding advertised locally in.accordance with local procedures acceptable to IDA, as would contracts under US$50,000. For contracts under US$10,000 local shopping would be employed. Their services of consultants would be obtained in accordance with IDA guidelines for the use of consultants. Goods financed by ADF and Swiss Technical Cooperation will be procured in accordance  ANNEX III Page 4 of 4 with their procedures, but should not result in higher costs than if all procurement were made under IDA procedures. Domestically manufactured goods would be allowed a preference of 15% or the level of applicable import duty, which is lower. Consultants: 36 man months of consultants services will be required to prepare feasibility studies for low-cost pilot re- settlement projects to control spontaneous migration. Approximately 6 man months of consultants services will be required to provide training to extension staff. Total costs of Consulting Services are esti- mated at an average of US$7,800 per man month. Economic Rate The overall economic rate of return has been calcu- of Return: lated at 30 percent over 15 years. Appraisal Report No. 1380-UV of April 1, 1977. MAP: IBRD 12311  ANNEX IV Page 1 of 2 SUPPLEMENTARY PROJECT DATA SHEET Section I: Timetable of Key Events (a) Time taken by the country to prepare the project: 8 months. (b) The agency which has prepared the project: Berenschot- Moret-Bosboom (c) Date of first presentation to the Bank: June 1975; date of first Bank mission to consider the project: May, 1976 (d) Date of departure of Appraisal Mission: October 8, 1976 (e) Date of completion of negotiations: March 7, 1977 (f) Planned date of effectiveness: August 15, 1977 Section II: Special Bank Implementation Actions The project will require close supervision, especially during the first year, of the Financial and Administrative Unit (FAU) and the implementation of the extension service program. Section III: (a) Special Credit Conditions (1) IDA would be consulted on the terms of reference for consultants services for studies on spontaneous settle- ment (para. 40); (2) A timetable would be drawn up by which ORD extension service staff would be gradually withdrawn-from their supply and marketing tasks, to be completed during the first three years of project implementation (para. 34); (3) Different staff would be recruited and employed by the ORDs to perform the duties of input supply, seed cotton marketing and debt collection (para. 34); (4) A detailed training program for extension agents would be drawn up prior to November 1, 1977 (para. 39); (5) Prior to November 1, 1977, an management consultants firm satisfactory to IJiA would be engaged to implement and supervise the FrAU program (para. 33);  ANNEX IV Page 2 of 2 (6) The positions of: technical assistant to the Permanent Secretariat of the CCDR (para. 33); the technical advisor to the FAU (para. 33); two technical advisors to the ORDs (para. 34); two extension specialists for the ORDs (para. 34); the irrigation engineer and surveyor for ONBI (para. 36); and the training assistant to SERS (para. 42) would be filled with specialists recruited with qualifi- cations, experience and terms of reference satisfactory to IDA. (7) Special conditions of effectiveness of the IDA credit include: (i) the opening of the Special Account for the revolving fund (para. 47); and (ii) the fulfillment of conditions of effectiveness under the ADF loan agreement and the IDA administered credit (para. 55). Section IV: (b) Special Conditions of the IDA Administered Credit (1) A special condition of effectiveness of the IDA admin- istered credit would be the effectiveness of the IDA credit.  I B R D 12311 @,! i X , v 4e 3> SEPTEMBER 1976 ' ALGERIA , MAURITANIA UPPER VOlTA , ,k j1)i NIGER WEST VOLTA AGRICULTURAL A,.. rerx~-s DEVELOPMENT PROJECT 5IXUIEA I\VORY i W t NIGERIA PROJECT AREA L E O E, ,4. COAS ,, j A T L A N T I C O C E A N 14