Upper Volta - Second Bougouriba Agricultural Development Project

Document of The World Bank FILE r FOR OFFICIAIl USE ONLY Report No. 3126-UV UPPER VOLTA SECOND BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT STAFF APPRAISAL REPORT December 15, 1980 Western Africa Projects Department Agriculture Division 4 This document has a restricted distribution and may be used by recipients only in the performance of their officiai duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS SDR 1 = US$1.29 = CFAF 271 US$1.00 = SDR 0.75 = CFAF 210 CFAF 1,000 = US$4.76 = SDR 3.69 WEIGHTS AND MEASURES Metric system FISCAL YEARS Government January 1-December 31 Project/ORD April 1-March 31 IDA July 1-June 30 ABBREVIATIONS AAVV Volta Valleys Development Authority BCEAO Central Bank of West African States CERCI Irrigated Crops Study and Research Center CNCA National Agricultural Credit Bank ICRISAT International Crops Research Institute for the Semi- Arid Tropics IRAT Tropical Agriculture and Foodcrops Research Institute IRCT Cotton and Textiles Research Institute IRHO Oils and Oilseeds Research Institute MRD Ministry of Rural Development OFNACER National Cereals Agency ORD Regional Development Organization PY Project Year SOFITEX Voltaic Textile Fibre Company (Parastatal)  FOR OFFICIAL USE ONLY UPPER VOLTA SECOND BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT TABLE OF CONTENTS Page No. I. The Rural Sector ..................... ............ 1 Agricultural Sector , .................. 1 Sector Strategy and Issues .................... 2 Principal Agricultural Institutions . . 4 II. The Project Area. 6 Location and General Characteristics. 6 Land Features and Climate . . 7 Roads ..................................... 7 Farming Systes.. . 8 Power, Water Supply, Education and Health Services ........... 8 The First Project. 9 III. The Project .................................... il General .il Summary Description .il Detailed Features .13 Cost Estimates .16 Proposed Financing .16 Procurement ........... 17 Disbursements . 18 Accounts, Audits and Reports .19 IV. Project Implementation and Executing Agencies 19 Project Organization . . 19 Farner Participation . .19 Staffing . .20 Extension and Training . .21 Supplies and Credit ................ - 24 Livestock Service . .26 Forestry ....................... 26 Monitoring and Evaluation . .26 This report is based on the findings of an appraisal mission consisting of Messrs. Notley, Ameur, de Wit, and Ms. Mikitin (IDA); and Messrs. Argoullon, Finnegan and Tacher (Consultants), which visited Upper Volta in February-March 1980. This document has a restricted distribution and may be used by recipients only in the performance of theiJ officia) duties. Its contenst may not otherwise be disclosed without Worid Bank authorization.  TABLE OF CONTENTS (continued) Page No. V. Production Specifications ..... .................... 26 Agricultural Practices. . . ........... 26 Cereals and Legumes ...... ........................ 27 Other Crops ............... ............ ........... 29 Crop Recommendations ...... .. . ................... 31 Livestock .... . ...................-32 VI. Markets, Prices, Financial Analysis and Cost Recovery ..................................... 32 Markets and Prices .................................. 32 Farm Incomes ...................................... 34 Financial Implications for Government ............. 34 VII. Benefits and Justification ....................... 35 Project Benefits ......... ......................... 35 Economic Rate of Return ..... ...................... 36 Risks and Sensitivity ............................ 37 VIII. Agreements Reached and Recommendation ........... .. 38 Annexes 1. Project costs 2. Estimated IDA disbursements 3. Organization chart 4. Staffing 5. Production 6. Crop returns 7. Farm budgets 8. Government cash f low 9. Economic analysis 10. List of working papers Map IBRD 15127R: The Project Area  UPPER VOLTA SECOND BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT I. THE RURAL SECTOR 1.01 Upper Volta has an area of 274,000 km2 and a population of 5.7 million (1979) growing at an annual rate of 1.6%, with urban population growth estimated at 4%. While average population density is 20/km2, it rises to 80/km2 in parts of the central plateau, where over half of the population lives. The urban population represents somae 8%; the main towns are Ouagadougou, the capital (225,000), and Bobo-Dioulasso (135,000). Per capita GNP was US$180 in 1979, which puts Upper Volta among the 25 poorest countries of the world. The proposed project would be located in the agriculturally favorable southwest, in an area with a population density of 22/km2, but per head incomes significantly lower than the national average. The Agricultural Sector 1.02 The agricultural sector is the dominant sector of the economy, pro- viding a livelihood for over 80% of the population and producing 40% of CDP and nearly all exports, with cotton and livestock leading the list. Practically all agriculture is rainfed. Crop farming, under shifting cultivation, produces 25-30% of GDP and 60% of recorded exports. Live- stock contributes 10% to GDP and 30% to exports. About 8% of the land, or 2.2 million ha, is cultivated each year. The basic food crops, sorghum, millet and maize, account for 85% of the cultivated area and 80% of pro- duction value. Cotton, groundnuts, sesame, rice, and vegetables account for most of the remaining cultivated area and production value. 1.03 Although the country is relatively flat, there are pronounced regional differences in climate and soils. The climate changes gradually from Sahelian in the north, with average rainfall of 600 mm, to Savannah in the south, with average rainfall of 1,200 mm. The low and erratic rainfall in the north results in unreliable harvests and greater reliance on livestock for survival, and consequently low population densities. There is also a striking contrast between the central plateau and the western and southwestern regions. On the plateau, crop farming is at the subsistence level because of population pressure, over-exploited soils and unreliable rainfall, whereas in the west and southwest soil and rainfall conditions are more favorable, population density is lower, and production more market-oriented. The Sahelian droughts of the early 1970s emphasized these differences: in the north and center, they virtually eliminated cotton production and reduced grain production by as much as 35%; in the west and southwest, they affected production much less severely. 1.04 Cotton is the most important cash crop and a major export. Pro- duction began in the early 1950s and had reached some 36,000 tons in 1969/70. During the following drought years, production stagnated at around 30,000 tons annually, but has since increased,