Rwanda - Lake Kivu Coffee Improvement and Food Crop Project

Document of FILE COPY The World Bank FOR OFFICIAL USE ONLY Report No. 3192-RW RWANDA LAKE KIVU COFFEE IMPROVEMENT AND FOOD CROP PROJECT STAFF APPRAISAL REPORT March 12, 1981 Eastern Africa Region Central Agriculture Division This document has a restricted distribution and inay be used by recipients only in the performance of their official duties. Its contents may not otherwise he disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Franc Rwandais (RF) US$1.00 RF 91.91 RF 100 = US$1.09 WEIGHTS AND MEASURES Metric System Metric British/US Equivalents 1 meter (m) 3.3 feet 1 hectare (ha) 2.47 acre 1 are (100 mn3) 0.02 acres 1 kilometer (km) 0.62 miles 1 square kilometer (km2) 0.39 square mile (sq. mi.) 1 kilogram (kg) 2.2 pounds (lb) 1 liter (1) 0.26 US gallon (gal) 0.22 British gallon (imp gal) 1 metric ton (m ton) 2,204 pounds (lb) GLOSSARY AND ABBREVIATIONS BGI - Bugesera/Gisaka/Migongo Project IAMSEA - Institut African et Mauricien de Statistiques et Economies Appliquees (African Mauricien Institute for Statistics and Applied Economics) ISAR - Institut des Sciences Agronomiques du Rwanda (Agricultural Research Institute of Rwanda) OBM - Office du Bugesera et Mayaga (Agency for Bugesera and Mayaga) OCIR-Cafe - Office des Cultures Industrielles du Rwanda - Cafe (Agency for Industrial Crops of Rwanda - Coffee) OCIR-The - Office des Culture Industrielles du Rwanda - The (Agency for Industrial Crops of Rwanda - Tea) OPROVIA - Office National pour le Developpement et la Commercialisation des Produits Vivriers et de la Production Animale (National Agency for Development and Marketing of Foodcrops and Animal Products) PAK - Project Agricole de Kibuye (Agriculture Project - Kibuye) SSS - Service des Semences Selectionnees (Selected Seed Service) TRAFIPRO - Cooperative de Vente et d'Achat (Travail-Fidelite-Progres) (Transport and Marketing Co-operative)  FOR OFFICIAL USE ONLY RWANDA Lake Kivu Coffee and Foodcrop Improvement Project Table of Contents Page No. I. BACKGROUND ................................................. 1 A. Project Background ..................................... 1 B. The Agricultural Sector ................................ 2 C. Government Services .................................... 6 II. THE COFFEE SUB-SECTOR ...................................... 9 III. THE PROJECT AREA ................................ 16 A. General ................................ 16 IV. THE PROJECT ................................ 19 A. General Description ................................ 19 B. Detailed Features ................................ 20 C. Project Costs ................ ................ 25 D. Financing ................ ................ 25 E. Procurement .................. .............. 26 F. Disbursement ................ ................ 27 G. Accounts and Audit ................................ 28 H. Environmental Impact ................................ 28 V. ORGANIZATION AND MANAGEMENT .29 A. Project Organization and Staffing . .29 B. Management of Project Components .. 30 C. Project Implementation Schedule .. ...................... 35 D. Monitoring and Evaluation .............................. 35 VI. TECHNICAL AND PRODUCTION ASPECTS ....... .................... 36 VII. GOVERNMENT BENEFITS ........................................ 40 VIII. MARKETS AND PRICES ......................................... 41 IX. BENEFITS AND JUSTIFICATION ......... ........................ 43 X. SUMMARY OF AGREEMENTS TO BE REACHED ON CREDIT CONDITIONS ... 46 This report is based on the findings of an IDA appraisal mission to Rwanda in June 1980, composed of A. Levi, R. Egli, R. Rambocus (IDA) and A. Bialer (consultant). 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- Supporting Tables and Charts Table 1 Summary of Project Costs Table 2 Government Cash Flow Table 3 Estimated Schedule of Disbursements Table 4(a) Economic Rate of Return Analysis - Cost Summary 4(b) Economic Rate of Return Analysis - Benefit 4(c) Economie Rate of Return Analysis - Cost/Benefit Table 5 Farm Model - Coffee Growing Areas Table 6 Farm Model - Highland Area Table 7 Incremental Production a Table 8 Project Preparation Facility Chart 1 Proposed Project Organization Chart 2 Pre-Project Implementation Schedule 3 Project Implementation Schedule Material Available in Implementation Volume Map s - Coffee Growing Areas in Rwanda - IBRD 15210 - Project Area - IBRD 15211  RWANDA APPRAISAL OF THE LAKE KIVU COFFEE IMPROVEMENT AND FOOD CROP PROJECT I. BACKGROUND A. Project Background 1.01 A coffee project was first prepared in early 1974 (wiLth major input from RMEA) as a component of a larger industrial crops project,, which included the construction of a tea factory, measures for cinchona development and a soil improvement program. The project was appraised by an IDA team in late 1974/early 1975. During the appraisal and further discussions with Govern- ment, the project was reduced to its cinchona component for wh: