Somalia - Fisheries Exploration - Pilot Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 4658-SO STAFF APPRAISAL REPORT SOMALIA FISHERIES EXPLORATION/PILOT PROJECT April 9, 1984 Eastern Africa Projects Department Northern Agriculture Division | 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 AND EQUIVALENT UNITS Somali Shilling (So.Sh.) = 100 cents US$1.00 Up to June 30, 1981 = So.Sh. 6.295 July 1, 1981 to June 30, 1982 = A dual exchange rate with: = So.Sh. 6.295 (for essential imports) = So.Sh. 12.590 (for all other foreign transactions) July 1, 1982 = So.Sh. 15.227 October 24, 1983 = So.Sh. 17.58 WEIGHTS AND MEASURES Metric System ABBREVIATIONS CIF - Cost, Insurance and Freight DANIDA - Danish International Development Agency FAO - Food and Agricultural Organization FOB - Free on Board GDP - Gross Domestic Product GOS - Government of Somalia GRP - Glass Reinforced Plastic IBRD - International Bank for Reconstruction and Development ICB - International Competitive Bidding IDA - International Development Association IFC - International Finance Corporation NORAD - Norwegian Agency for International Development PPF - Project Preparation Facility SDB - Somali Development Bank SIDA - Swedish International Development Authority UNCDF - United Nations Capital Development Fund UNDP - United Nations Development Program  FOR OFFICIAL USE ONLY SOMALIA FISHERIES EXPLORATION/PILOT PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. I. AGRICULTURAL SECTOR .................................... 1 II. FISHERIES SUB-SECTOR ..........................1......... Background ........ 1 , ,. ...... I Artisanal Fisheries. 2 Fish Production, Processing and Marketing. 3 Commercial Fisheries. 5 Fish Resources. 5 Fisheries Administration and Government Policy. 6 III. THE PROJECT AREA. 7 Existing Infrastructure .. 8 Project Marketing .. 9 Related North Coast Development . . 9 Project Formulation .. 9 IV. THE PROJECT. 11 Project Objective .........11 Project Description ..................... 11 Detailed Features ..12 Project Costs ..16 Proposed Financing ..17 Procurement ..19 Disbursement ........................ 20 Accounts and Audit .................. ................... 20 Environmental Effects .............. .. .................. 21 V. ORGANIZATION AND MANAGEMENT ............................ 21 Enterprise .............................................. 21 Project Implementation ................................. 22 Reporting, Monitoring and Evaluation . .26 This report is based on the findings of an appraisal mission, composed of Messrs. B.H. Falconer, L.M. Sprague (IBRD), C. Hamlin, Y.N. Kim and R.L. Payne (consultants), that visited the project area in February/March 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.  Table of Contents (continued) Page No. VI. PRODUCTION, MARKETING AND PRICES ........................ 27 Artisanal ............................................... 27 Offshore Fishery ........................................ 28 VII. BENEFITS, JUSTIFICATION AND RISKS ....................... 29 Project Benefits ................ 29 Project Justification ................................... 30 Risks . ................................................... 31 Long-Term Development ................................... 31 VIII. RECOMMENDATIONS ......................................... 33 LIST OF TEXT TABLES Table 1. Project Cost Summary 2. Percentage Rates of Inflation 3. Proposed Financing Plan 4. Financing for Different Categories of Works, Goods and Services 5. Schedule of Disbursement by Categories  ANNEXES TO STAFF APPRAISAL REPORT Page No. ANNEX I: Fish Resource Estimates ............................. 35 II Terms of Reference - General Manager .36 - Financial Controller .36 - Consultants, Artisanal Fisheries. 37 - Consultants, Offshore Fisheries.. 39 III Financial Analysis - Supplementary Tables 1. Summary Account by Project Component .......... 42 2. Cash Flow Projection for Motorized Fishing Boat ... 43 3. Enterprise - Inshore Fisheries, Profit and Loss Statement. 44 4. Enterprise - Inshore Fisheries Processing Cost Per Ton .45 5. Estimated Schedule of Disbursements .46 IV Data Available In Project File .47 V Table of Contents of Implementation Volume .48 VI Charts 1. Organization Chart - Ministry of Fisheries .... 49 2. Organization Chart - Enterprise ...... 50 3. Implementation Schedule - By Task .... 51 4. Implementation Schedule - By Post .... 52 MAPS Map of Somalia with Project Location (No. 17262) Map of Somalia with Fish Densities, Northeast Monsoon (No. 17263) Map of Somalia with Fish Densities, Southwest Monsoon (No. 17264)   SOMALIA FISHERIES EXPLORATION!PILOT PROJECT STAFF APPRAISAL REPORT I. AGRICULTURAL SECTOR 1.01 Somalia is located in the northeastern corner of Africa, bordered by Ethiopia and Kenya to the west and south and the G-ilf of Aden and the Indian Ocean to the north and east (Map IBRD No. 17262). The length of the coastline is about 3,000 kilometers, and the land area is about 60 million hectares. The topography consists mainly of plateaus broken by chains of rugged mountains in the north which are especially prominent near the project area. 1.02 Somalia is amongst the poorest countries in the world and is classified by the United Nations as a least-developed country. Per capita income was estimated to be below US$300 in 1981. Not only is it among the poorest, but the general lack of infrastructure--physical and institutional--and the hostile physical environment, poor communications, lack of modern transportation systems and scattered population centers have created a serious obstacle to development of the country. 1.03 About 60% of the labor force are nomads and semi-nomads who depend on livestock for their subsistence, about 20% are settled rural dwellers and 20% are urban dwellers. The economy is dominated by the livestock sector which provides a living to the large nomadic population and generates about half of the GDP. Exports of live animals represent about 80% of total exports. Crop production which contributes about 7% of exports is small but growing. Fish and fish products account for about 3% of exports and their share of GDP does not exceed 2%. The present importance of fisheries within the overall economy is small. There are about 2,000 full-time and 7,000 part-time fishermen engaged mostly in artisanal fishing. 1.04 The Agricultural Sector Report of 1981 (Report Nos 2881a-SO) emphasizes the need to strengthen and develop certain key areas of the sector. Important are those activities which generate increased production and exports in the short-run. The sector strategy calls for development of underutilized resources (including activating sunk capital), the expansion of private sector incentives and opportunities and the establishment of additional export markets to increase foreign exchange earnings. II. FISHERIES SUBSECTOR Background 2.01 Along the Gulf of Aden, the coast typically consists of long stretches of sandy beach, interriupted at intervals by rocky outcrops and  - 2 - cliffs. There is a lack of natural harbors. The seasons of the coastal plains are governed by the southwest monsoon (June to September) and the northeast monsoon (November to March). Average annual temperatures vary between 27