Sierra Leone - Third Eastern Integrated Agricultural Development Project

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Reort No. P-2929-SL REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO SIERRA LEONE FOR AN EASTERN INTEGRATED AGRICULTURAL DEVELOPMENT PROJECT III December 19, 1980 This documet bas a restricted distibution and may be _ed by reclpients only In the performance of their official dutis. Its contents may not otherwise be disciesed without Wold Dank authrlantion.  CURRENCY EQUIVALENTS Currency unit - Leone (Le) US$1.00 = Le 1.05 Le 1.00 = US$0.95 FISCAL YEAR July 1 - June 30 ABBREVIATIONS BADEA - Banque Arabe pour le Developpement Economique en Afrique CARE - Cooperative American Relief Everywhere DOPC - Daru Oil Palm Company EEC - European Economic Community FFC - Farmers Finance Company IADP - Integrated Agricultural Development Project IDA - International Development Association IFAD - International Fund for Agricultural Development LBA - Licensed Buying Agent MAF - Ministry of Agriculture and Forestry MOW - Ministry of Works PAC - Project Advisory Committee PAO - Principal Agricultural Officer PEMSU - Planning, Evaluation, Monitoring and Services Unit PESU - Project Evaluation and Services Unit RMWA - Regional Mission in Western Africa (World Bank Office) SLPMB - Sierra Leone Produce Marketing Board UNDP - United Nations Development Programme  FOR OFFICIAL USE ONLY SIERRA LEONE EASTERN INTEGRATED AGRICULTURAL DEVELOPMENT PROJECT III CREDIT AND PROJECT SUMMARY Borrower: Republic of Sierra Leone Beneficiaries: In addition to Borrower, Farmers Finance Corporation (FFC) and Daru Oil Palm Company (DOPC). Amount: SDR 9.2 million (US$12 million) Terms: Standard Relending Terms: To FFC and DOPC as Government equity. Project Description: The project seeks over a five-year period to consolidate and expand the assistance to small farmers in the Eastern region which was begun under the previous two Bank Group integrated agricultural projects. By extending coverage to farmers in the entire Eastern Region, it would further increase food and export crop production and raise agricul- tural incomes. It provides: agricultural inputs, credit, extension services, feeder roads, and village wells in the project area; and technical assistance to the Ministry of Agriculture to support and plan future agricultural develop- ment projects throughout the country. About 12,600 farm families, all of whom earn per capita incomes below US$200 per annum, would earn significantly higher incomes under the crop improvement and credit programs. Taking into account the improvement in agricultural services and the road and well components, altogether some 50,000 (or 50 percent) of the rural families in the province would benefit. Normal risks associated with projects of this kind would be reduced by the fact that this is the third phase in the area and would build upon the organizational structure and techniques developed in the previous phases. The main risk would be that difficulties in strengthening the extension and credit facilities would have an adverse effect on achievement of production goals. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Cost 1/ ------------US$ million----------- Local Foreign Total Project Management 0.8 0.9 1.7 Extension and Training 1.5 1.3 2.8 Civil Works a. Administration and Workshops 0.8 1.0 1.8 b. Wells 0.3 0.2 0.5 c. Roads 0.8 2.5 3.3 Production Inputs 0.9 1.6 2.5 Daru Oil Palm Co. 0.4 0.6 1.0 Farmers Finance Co. 0.3 1.2 1.5 PEMSU and Projects Coordinator 1.0 2.0 3.0 Monitoring and Evaluation Cell 0.4 0.2 0.6 Consultancy Services - short term - 0.3 0.3 Total Base Cost 7.2 11.8 19.0 Physical Contingencies 0.1 0.5 0.6 Price Contingencies 1.9 3.5 5.4 Total Project Cost (net of taxes) 9.2 15.8 25.0 Financing Plan: -----------US$ Million --------