Mali - ODIPAC Technical Assistance Project

Document of FILE COPY The World Bank FOR OFFICIAL USE ONLY Report No. P-2993-MLI REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF MALI FOR AN ODIPAC TECHNICAL ASSISTANCE PROJECT July 9, 1981 I This dcumnt bas a restricte distribution and may be used by recipients only In the performance of | their official duties. Its contents may not otherwise be dislosed witbout World Bank autherlzatle.  CURRENCY EQUIVALENTS Currency Unit = Malian Franc (MF) MF 1 million = US$2,000 US$1 = MF 500 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AV - Association Villageoise (mutual guarantee group) CMDT - Compagnie Malienne pour le Developpement des Textiles DNAFLA - Direction Nationale de l'Alphabetisation Fonctionelle et la Linguistique Appliquee FAC - Fonds d'Aide et de Cooperation (France) IER - Institut d-Economie Rurale OACV - Operation Arachide et Cultures Vivrieres ODIPAC - Office de Developpement Integre des Productions Arachidieres et Cerealieres PPF - Project Preparation Facility SCAER - Societe de Credit Agricole et d'Equipement Rural ODIPAC ACCOUNTING YEAR October 1 - September 30  FOR OFFICIAL USE ONLY MALI ODIPAC Technical Assistance Project Credit and Project Summary Borrower Republic of Mali Beneficiary : Office de Developpement Integre des Productions Arachidieres et Cerealieres (ODIPAC) Amount : SDR 5.5 million (US$6.5 million) Terms : Standard. Borrower to beneficiary: grant. Beneficiary to participating farmers for input loans: 11 to 14% p.a. Project Description The project would support a recently created rural develop- ment institution (ODIPAC) in defining a new approach to agricultural development in the groundnut belt and in inves- tigating the scope for further investments. It would com- prise a three-year program aimed at (i) increasing the efficiency of agricultural production by retraining extension staff, improving seed production, distribution and storage, and strengthening the credit and marketing system; (ii) promoting selfmanaged farmer organizations able to take over village development activities; and (iii) testing diversification programs to reduce the area-s dependence on groundnuts as an export crop. Six internationally recruited experts would be engaged to strengthen key services of ODIPAC (finance, marketing and credit, seed multiplication, agricultural research, extension and cooperatives, workshops). The project would also include: a functional literacy program, replacement of essential vehicles; purchase of incremental fertilizer and equipment; a monitoring and evaluation unit;. applied research and studies; and audits. The main project risk concerns the financial arrangements for ensuring adequate capitalization and recurrent cost funding of ODIPAC. Although availability of Government counterpart funding is limited by continuing public finance constraints, the Government attaches high priority to agri- cultural diversification to tap the considerable potential of the project area. 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.  - li - ODIPAC Technical Assistance Project Estimated Project Cost: Project costs net of duties and taxes (which are not applicable to ODIPAC) are detailed below: Local Foreign Total -----US$ million- Extension & Cooperative Development 0.9 0.8 1.7 Applied Research & Seed Programs 0.7 0.5 1.2 Functional Literacy Program 0.4 0.3 0.7 Incremental Farm Inputs 0.9 1.3 2.2 Monitoring, Studies and Audits 0.1 0.7 0.8 Institutional Support 0.8 1.6 2.4 Base Cost 3.8 5.2 9.0 Physical Contingencies 0.2 0.3 0.5 Price Contingencies 0.8 1.1 1.9 TOTAL COST 4.8 6.6 11.4 a/ Financing Plan: _ IDA 2.0 4.5 6.5 57 FAC 0.4 2.1 2.5 22 Government 2.4 - 2.4 21 Total 4.8 6.6 11.4 100 Percentage 42 58 100 Estimated Disbursements: FY82 FY83 FY84 FY85 -