Malawi - Smallholder Fertilizer Project

Document of The World Bank IE Copy FOR OFFICIAL USE ONLY Report No. P-3469-MAI REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT IN AN AMOUNT EQUIVALENT TO US$5.0 MILLIO% TO THE REPUBLIC OF MALAWI FOR A SMALLHOLDER FERTILIZER PROJECT MARCH 28, 1983 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 Malawi Kwacha (K) SDR 1.00 = US$1.08995 US$ 1.00 = K 1.10 K 1.00 US$ 0.91 METRIC EQUIVALENTS 1 metre = 39.37 inches 1 kilometer (1,000 = 0.62 miles meters) 1 kilometer = 0.39 sq. miles ACRONYMS CMS - Central Medical Stores MCH - Maternal and Child Health MOH - Ministry of Health MOWS - Ministry of Works and Supplies PHAM - Private Hospitals Association of Malawi PHC - Primary Health Care UNFPA - United Nations Fund for Population Activities GOVERNMENT FISCAL YEAR April 1 - March 31  FOR OFFICIAL USE ONLY MALAWWI SMALLHOLDER FERTILIZER PROJECT BORROWER: Republic of Malawi BENEFICIARY: Ministry of Agriculture (MOA) AMOUNT: SDR 4.6 Million (US$ 5.0 million equivalent) TERMS: Standard IDA PROJECT DESCRIPTION: The proposed project would be the first in the fertilizer sub-sector and be co-financed with IFADo It is designed to increase the productivity of the smallholder by ensuring the reliable and timely availability of fertilizer throughout Malawi. Specifically, the project would help the Government realize this objective by: (a) improving the Agricultural Development and Marketing Corporation's (ADMARC) procedures for procuring and distributing fertilizer; (b) establishing a fertilizer revolving fund; (c) strengthening the institutional capacity of the Ministry of Agriculture (MOA) and ADMARC; and (d) setting in motion a process to bring about productive reform of relevant sector policies. MOA would have overall responsibility for project implementation. About 400,000 farm families would benefit from the project. The project would also enable MOA to monitor and evaluate data on fertilizer use and crop responses in order to develop specific recommendations for individual crops, locations and categories of farmers. The primary risk is the possible delay in fertilizer arrival, but yields would have to be near non-fertilized yields for the net present economic value to be negative. Since a major component of the project is the development of an effective and timely procurement system, this risk is not expected to adversely affect the viability of the project. 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.  - i~i - ESTIMATED COST: Local Foreign Total ---------US$millions--------- Revolving Fund 3.7 23.7 27.4 Technical Assistance 0.2 1.0 1.2 Base Costs 4.0 24.6 28.6 Price Contingencies 0.5 0.9 1.4 Total Project Costs 4.5 25.5 30.0 (Taxes and duties are negligible) FINANCING PLAN: Local Foreign Total U--------TJS$millions