Upper Volta - Third Rural Development Fund Project

Document of FILE Copy The World Bank FOR OFFICIAL USE ONLY Report No. P-3233-UV REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TC THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF UPPER VOLTA FOR A THIRD RURAL DEVELOPMENT FUND PROJECT March 9, 1982 Western Africa Region 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.  CURRENCY EQUIVALENTS Currency Unit - CFA Franc (CFAF) SDR 1.00 = US$1.18 CFAF 319 US$1.00 - CFAF 270 WEIGHTS AND MEASURES 1 metric ton - 0.98 long ton (2,205 lbs) 1 hectare (ha) - 2.47 acres 1 kilometer - 0.62 mile 1 meter - 3.28 feet ABBREVIATIONS AVV: Volta Valleys Development Authority BOAD: West African Development Bank CNCA: National Agricultural Credit Bank FAER: Rural Equipment Fund HER: Water Supply Division MDR: Ministry of Rural Development OFNACER: National Cereals Agency ORD: Regional Development Organization RDF: Rural Development Fund SOFITEX: Voltaic Textile Fiber Company FISCAL YEARS Government: January 1 - December 31 Project: October 1 - September 30  FOR OFFICIAL USE ONLY UPPER VOLTA THIRD RURAL DEVELOPMENT FUND CREDIT AND PROJECT SUMMARY Borrower: The Republic of Upper Volta Amount: Special Drawing Rights 20.2 million (US$23.8 million equiva- lent, of which US$7.8 million equivalent would be provided under a participation arrangement with the Kingdom of the Netherlands.) Terms: Standard Project Description: The main objective of the proposed project is to follow the successful process pursued under the preceding two projects in further supporting and strengthening a well-managed and cost- effective institution, the Rural Development Fund (RDF)-- responsible for organizing, managing and supervising small- scale rural investments. The project would be executed in a four-year period (1982-86) and contain funds for the following sub-projects: (i) land development, comprising anti-erosion, bottomlands, and small scale irrigation works; (ii) support to the Regional Development Organizations (ORDs) for training, credit and input supply administration and trials; (iii) credit to farmers and farmers groups; (iv) storage sheds; (v) water supply; (vi) tree plantations; (vii) project management offices; and (viii) funds to finance small-scale rural projects to be identified during project execution. Benefits: Beneficiaries of the investments are primarily the rural populations i.e., (i) about 17,000 families will benefit from the land development works, (ii) some 60,000 villagers will have access to clean water with consequent improvements in health and (iii) the village stores and associated credit programs will complement the land development works to increase agricultural production. A further principal benefit of the project would be to complete the development of an institutional capability within Upper Volta for effectively channeling and managing funds affecting small-scale rural development projects. Risks: Technical risks of the proposed investment program are minimal because it involves well known and successfully tried tech- niques in both the investment and operating stages. Risks derive from the possibility that assets created during the development period would be inadequately maintained either because funds for such maintenance are not provided by Govern- ment or because beneficiaries lose interest. Several measures are envisaged which would reduce these risks. Works would be I~~~~~~~~~~~~~~~~~~~~~~~~ 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 - designed in such a way that maintenance would not require skills, materials and tools not readily available at the village level. The project provides for training of village artisans in the simple repair and routine maintenance of pumps. Spare parts and tools would be readily available for sale to villagers. In addition, no investments would be made unless farmers partici- pating in the creation of such assets have fair and equal access to the ensuing benefits. Estimated Costs (net of taxes and duties): Local Foreign Total