Announcement of Somalia Receives Ten Million Five Hundred Thousand Dollars IDA Credit for Agricultural Extension and Farm Management Training on May 14, 1979

. . RELEASE . - FOR IMMEDIATE . . •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/71 May 14, 1979 SOMALIA RECEIVES $10.5 MILLION IDA CREDIT FOR AGRICULTURAL EXTENSION AND FARM MANAGEMENT TRAINING The International Development Association (IDA), the World Bank's affiliate for concessionary lending, announced the approval today of a $10.5 mil lion credit to Somalia for an agricultural extension and farm management training project. The project wi 11, over a five-year period, strengthen the Agricul- tural Extension Service and establish a Farm Management Advisory Ser- vice (FMAS) both of which will bring essential knowledge to farmers. The emphasis of this project is to establish a foundation for the pro- • gressive building up of operational and efficient extension and farm management services in Somalia. Thus, it emphasizes training and insti- tution building. The design and scope of this project are based on past experience with similar extension projects in various countries. A Farm Management and Extension Training Center will be established at Afgoi to provide practical pre-service training for farm managers, assistant and field managers, and regional- and district-level extension staff. A 60-hectare training farm, library, classroom, and a dormitory will be built. The National Extension Service will be strengthened through the introduction of an extension methodology emphasizing con- tinuous training for extension personnel and regular contact with farmers. Two Farmers' Training Centers will be upgraded and converted into Exten- sion Training Centers. The FMAS will provide field back-up to existing and newly trained farm managers and advise the government on large-scale farming and related issues. A master plan will be developed to strengthen the National Agricultural Research System and its links with the extension service. The Central Statistics Department in the State Planning Commis- sion will be strengthened through technical assistance and staff training and this wi 11 set the stage for the development of a National Statistical Development Program. The Agricultural Secondary School at Afgoi will be strengthened through the provision of teachers and training equipment. Foreign train- ing will be provided for 38 faculty graduates as well as short field • trips for senior personnel in the Ministry of Agriculture, extension and farm management technical field staff, and district extension officers. I . .• NOTE: Money figures are expressed in U. S. dollar equivalents.  • - 2 - The project is expected to benefit directly about 195,000 farm families, as well as farm laborers working on state and cooperative farms. It will help to reduce dependence on food imports and assure a steadier domestic food supply. The rural population will benefit through the catalytic effect the extension service will have on general education, health, and nutrition. Somalia i~ heavily dependent on agriculture; sorghum, maize, and seasame are the principal crops, accounting for 90% of the cultivated land area. Bananas, sugarcane, vegetables, and fruit, as well as small amounts of groundnuts, sesame, cotton, and pulses are grown under irri- gation. Maize, rice, and other irrigated crops are grown on state farms. The severe drought of 1973-75 disrupted Somalia's economy, after which the country redirected its priorities towards agriculture, placing emphasis on achieving self-sufficiency in food. Cereal consumption is around 350,000 tons a year, of which 15% to 30% has to be imported. ·Considerable scope exists to increase the cultivated land under both rainfed and irrigated crops. In rainfed agriculture, the ineffective- ness of the extension service, and in irrigated agriculture, the lack of technical knowledge and management skills, are major impediments to increased agricultural productivity. Co-financing for this project is expected to be provided with a $1.5 million credit from the European Economic Community (EEC) Special Action Account. The $10.5 million IDA credit and the EEC credit of $1.5 million to Somalia are for 50 years, including 10 years of grace. They are interest free, except for a service charge of 3/4 of 1% a year to cover administrative costs. The African Development Fund and the US • Agency for International Development are also providing $8.9 million and $7.6 million respectively to the cost of the project. • FORM NO. 1121 (5-76) T E C HN I CAL • D A T A PROJECT: Agriculture Extension and Farm Management Training COUNTRY: Republic of Somalia TOTAL COST: $32. 4 mi 11 ion IDA FINANCING: $10.5 million, standard IDA terms OTHER FINANCING: African Development Fund, $8.9 million; European Economic Community (EEC) Special Action Account credit, $1.5 million; US Agency for International Development, $7.6 million; Government of Somalia, $3 • 9 mi 1 l ion • IMPLEMENTING ORGANIZATIONS: Ministry of Agriculture (for statistics component) Mogadishu, Somalia State Planning Commission Mogadishu, Somalia PROJECT DESCRIPTION: It will establish a Farm Management and Extension Training Center at Afgoi and a Farm Management Advisory Service; strengthen the National Extension Service and the Agricultural Secondary School at Afgoi; and provide for overseas training and study trips for post-graduate students, senior Ministry of Agriculture personnel, extension and farm management staff and district ex- • tension officers. It will also establish a Project Management Unit; develop a master plan to strengthen the National Agricultural Research System and its links with Extension; and strengthen the Central Statistical Department in the State Planning Commission. PROCUREMENT: Contracts for the supply of vehicles and equipment will be awarded after international competitive bidding in accor- dance with IDA guidelines. Orders wi 11 be bulked whenever possible. Technical assistance will be procured with the assistance of IDA in case of the Project Technical Manager and the Financial Controller. Technical assistance for the Farm Management Advisory Service will be procured by the government subject to IDA approval. Contracts for the supply of other project inputs, including office equipment and supplies, of $50,000 equivalent or more, will be awarded after international competitive bidding in accordance with IDA guide- lines. Contracts for less than $50,000, but in aggregate not exceeding $300,000, will be awarded locally fol lowing government procurement procedures which are satisfactory to IDA. Items financed under the EEC Special Action credit will be procured in accordance with the EEC Special Action Credit Agreement which limits bidding to EEC member countries and IDA member counLries that are eligible to receive Special Action Credits. CONSULTANTS: The services of 26 internationally recruited specialists in agricultural extension,farm management, technical agricul- tural training and statistics,a total of 87 man-years,will be req.uired over a period of about five years. Qualifications and experience·of these-specialists will need to be accep- table to IDA. The government has identified sources of recruiting the bulk of the re- quired technical assistance. Consultants will be needed also to prepare a study for the • development of an agricultural research strategy on which future research programs may be based. A team consisting of an economist/statistician, agriculturist/statistician, demographer/statistician, arid a data-processing specialist, headed by the economist/statis- tician, will be needed to provide technical assistance and improve the capability of the Central St~tistica1 Department. • .. I  • - 2 - ECONOMIC RATE OF RETURN: 27% for the National Extension Service and 39% for the·Farm Management Advisory Service. ESTIMATED COMPLETION DATE: 1984 • • ~ .........~, -'· . _,.' .