Niger - Irrigation Rehabilitation Project

Documeni of The World Bank FOR OFnCIAL USE ONLY CR. 1618-lJiR Report No. 2-3944-1-- REPORT AND RECOMMENDATION OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 9.6 MILLION TO THE REPUBLIC OF NIGER FOR AN IRRIGATION REHABILITATION PROJECT May 31, 1985 This document has a restricted iIstribution mud my 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) US$1.0 = CFAF 460 CFAF 1 million = US$2,174 SYSTEMS OF WEIGHTS AND MEASURES: METRIC I Metric British/US Equivalents 1 meter (m) = 3.28 feet (ft.) 1 square meter (W2) = 10.76 square feet (sq.ft.) 1 cubic meter (mn) = 35.30 cubic feet (cu.ft.) 1 kilometer (kn) = 0.62 mile (mi.) 1 square kilometer (km2) = 0.39 square mile (sq.mi.) I hectare (ha) = 2.47 acres I metric ton (a ton) = 2,205 pounds (lbs.) ABBREVIATIONS AND ACRONYMS ADM Ader-Doutchi-Maggia, an intermitte' tributary of the Sokoto River in the Tahoua province of Niger BCEAO Banque Centrale des Etats de l'Afrique de l'Ouest (Central Bank for West African Monetary-Union) CCCE Caisse Centrale de Coop6ration Economique (French Aid Agency) CNCA Caisse Nationale de Cr6dit Agricole (National Agricultural Development Bank) GMV Groupement Mutualiste Villageois (Village Mutual Group) INRAN Institut National de Recherches Agronomiques du Niger (National Agricultural Research Institute) KfW Kreditanstalt ffr Wiederaufbau (Federal Republic of Germany Aid Agency) NIGELEC SocigtE Nig6rienne d'Electricitg (National Electricity Authority) OPVN Office des Produits Vivriers du Niger (Grain Marketing Board) ONAHA Office National des Am6nagements Hydro-Agricoles (National Irrigation Authority) RINI Socift6 Riz du Niger (Rice Processing Parastatal) FISCAL YEAR October 1 - September 30 NIGER FOR OFFICIAL USE ONLY IRRIGATION REHABILITATION PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Niger Beneficiaries: National Irrigation Authority (ONARA) and the Irrigation Cooperatives through ONARA Credit Amount: SDR 9.6 million (US$9.3 million equivalent) Terms: Standard On-lending Terms: The Government of Niger would pass on the total credit amount to ONAHA and cooperatives as a grant, except for the medium-term credit which would be passed on to cooperatives as a loan. Project Description: The main objectives of the proposed Project are to promote cooperatives'/farmers' self-reliance in management of irrigation schemes in order to ensure the sustainability of investments, reduce Government's recurrent costs, increase production, and improve farm incomes. The project comprises the rehabilitation of existing irrigation perimeters and includes the following components: (a) rehabilitation of irrigation infrastructure and equipment; (b) crop intensification; (c) assistance to cooperatives; (d) adaptive research and seed multiplication; (e) strengthening of ONAHA; and (f) strengthening of RINI. Project Benefits: The Project's main benefits would derive from: (a) incremental production of paddy, cotton, sorghum and onions on areas to be brought back into production and increased yield and cropping intensities; and (b) savings on operating and maintenance costs by substituting electric pumps for diesel ones. Lessons learned under this project, in particular with regard to cooperative management of irrigation schemes as well as the role of ONAHA, would be applied to future investments in this field. Risks: No significant technical risks are associated with the physical rehabilitation works. The only major foreseeable risk is that the irrigation schemes would be inadequately maintained. This risk has been minimized under the project by introducing a pump maintenance scheme by the private sector, by financing an important training program for cooperatives, and by providing the necessary framework (contracts between Government and cooperatives, internal regula- tions, etc.) to establish a reliable system of maintenance and operations. Other possible risks are related to financial risks of irrigated agriculture and management capability of ONAHA, the lead executing agency. The former appears to be small, given the 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. Government's sound pricing policies for paddy in recent years, and the latter would be minimized by financing a training program for ONARA's staff and technical assistance. Project Cost Estimate (net of taxes): Local Foreign Total ------ US$ million -- Rehabilitation Works 3.6 5.9 9.5 Crop Intensification 1.4 1.0 2.4 Assistance to Cooperatives 2.1 1.1 3.2 Applied Research & Seed Multiplication 0.2 0.4 0.6 Strengthening of ONARA 1.1 2.0 3.1 Strengthening of RINI 0.8 0.5 1.3 Project Preparation (PPF) 0.1 1.1 1.2 Total Base Costs 9.3 12.0 21.3 Contingencies: Physical 0.5 0.5 1.0 Price 1.2 1.7 2.9 Total Project Costs 11.0 14.2 25.2 Financing Plan: Government and Beneficiaries 1.6 1.1 2.7 IDA 3.8 5.5 9.3 CCCE 3.8 5.5 9.3 KfW 1.8 2.1 3.9 Total 11.0 14.2 25.2 Estimated Disbursements: 1986 1987 1988 1989 1990 1991 1992 ------------------------US$ million------ -- Annual 2.2 1.4 2.0 1.4 1.1 0.8 0.4 Cumulative 2.2 3.6 5.6 7.0 8.1 8.9 9.3 Economic Rate of Return: 18% Staff Appraisal Report: No. 5161-NIR Ma: IBRD 18074R INTERNATIONAL DEVELOPMNT ASSOCIATION REFORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF NIGER FOR AN IRRIGATION REHABILITATION PROJECT 1. I submit the following report and recommendation on a proposed development credit for the equivalent of SDR 9.6 million (US$9.3 million equivalent) on standard IDA terms to the Republic of Niger to help finance a proposed Irrigation Rehabilitation Project. Additional external financing for the project would be provided by loans from France (through the Caisse Centrale de Coop6ration Economique, CCCE) in the amount of US$9.3 million equivalent and by a grant from the Federal Republic of Germany (through the Kreditanstalt ffr Wiederaufbau, KfW), in the amount of US3.9 million equivalent. The CCCE loan would be for a term of 30 years, including ten years grace, at an interest rate of 1.5% per annum during the grace period and 2% per annum thereafter. PART I - THE ECONOMY 2. An economic mission visited Niger in August 1984 in connection with an IMF Standby mission, and the main findings of the mission are incorporatee. in the following paragraphs. These findings were subsequently updated by a mission in October 1984. Annex I contains updated country data. Background 3. With its 1.27 million kM2 of land, Niger is about 2.5 times the size of France. Niger is a landlocked country, and its closest access to the sea is about 600 km from Niger's southern border. Nearly 90% of the total population is concentrated in a thin band along the southern border. Only 12% of the land is considered arable, and only 2.5% is actually under cultivation. Rainfall is limited (150-750 mm) even in the agricultural zone and often irregular, and soil fertility is low and declining due to its intensive use. The total population was estimated at 5.9 million in 1982 and is growing at about 3.3% per annum. Per captta income was estimated at US$260 in 1983. Niger's social indicators are among the lowest in the world. Life expectancy at birth, which is only 43 years, is low even by African standards. The adult literacy rate is only 8% and the primary enrollment ratio only 23%. 4. Niger belongs to the West African Monetary Union which provides its members with a common currency (the CFA Franc) fully convertible into French Francs. The full convertibility of the CFA Franc and the liberal foreign trade policies pursued by the Monetary Union members have kept the Nigerien economy very open in the past. This openness was further strengthened by the very strong trade links that have always existed between Niger and its neighbors, particularly Nigeria. Another particularly important characteristic of the Monetary Union is the strong discipline imposed over monetary and fiscal policies - 2 - of the member countries, in return for the guaranteed convertibility of the currency. 5. Like other Sahelian economies, Niger's is dominated by sub- sistence agricultural activities with millet and sorghum accounting for 80% of the cultivated area. Livestock is also an important source of income for a large segment of the population and is one of the country's major export commodities. Despite its meager agricultural resource base, Niger has traditionally been self-sufficient in food production except during the Sahelian drought in the early 1970s and again in recent years. The discovery of large uranium deposits in the late sixties and their development propelled the mining sector into an important position in Niger's economy. The sector is now the country's principal foreign exchange earner and an important source of Government revenues. Economic Development in the Seventies 6. During the past decade Niger went from a period of despair to a period of almost unlimited hope for the future. In the early seventies, Niger experienced severe drought: its livestock herd was decimated, and food production declined dramatically. Real per capita GDP declined at an average annual rate of 0.5% during the first half of the decade. On the expenditure side, per capita consumption declined by 6% per annum although gross domestic investment grew at a modest annual rate of 3.2% with the help of increasing foreign aid. Uranium produc- tion and export began in early 1971, but the impact of the sector on the national economy was only moderate in the first half of th- seventies as prices were stable. 7. During the second half of the decade, Niger's fortune improved dramatically. More favorable climatic conditions allowed an accelerated recovery of the agricultural sector. With intensive Government programs the Nigerien livestock herd was rapidly reconstituted. Food production steadily increased and by 1979 Niger was once again self-sufficient and even managed to show a substantial surplus. Moreover, the uzanium sector experienced a boom. By 1977, uranium exports accounted for 53% of total exports of goods and non-factor services, and that share increased to 70% at the end of the decade. As uranium prices and quantities exported increased rapidly, Niger's total export receipts increased from CFAF 12 billion in 1975 to CFAF 85 billion in 1979. The contribution of the sector to public revenues followed the same trerd. The share of uranium in total Government revenues increased steadily from 18% in 1975 to an all time high of 46% in 1979. Government uranium revenues grew from CFAF 4 billion to CFAF 25 billion in the same period. As a result of the good performance of agriculture and mining sectors, real GDP grew at an average annual rate of 7.2%; per capita consumption grew at an annual rate of 4.5% and gross domestic investment at an average rate of 16.7%. 8. On balance, therefore. Niger's economic performance during the 1970s was very good, particularly by Sahelian standards. This was due to favorable world market prospects for uranium as well as sound economic policies of the Government which encouraged a rational use of - 3 - foreign aid and export earnings, and which limited pricing and other policy distortions that are common smong most West African countries. The Early Eighties, the Uranium Crisis, and the Drought 9. The decade of the eighties started with serious sigis pointing to a long lasting crisis for the uranium sector. Between 1979 and 1982 real prices of uranium exports fell by more than 50%. Uranium export earnings stagnated at around CFAF 95 billion and uranium revenues declined sharply from CFAF 25 billion in 1979 to CFAF 13 billion in 1982. During the same three years, agricultural production also * deteriorated. Unfavorable climatic conditions forced Niger once again to supplement its food production by increasing quantities of grain imports. Food grain deficits in 1981 and 1982 reached about 100,000 tons per year. During 1983/84, the country experienced a serious drought which hit the livestock sector in particular. As a result of these developments, real GDP stagnated in 1981 and 1982 and declined by nearly 3% in 1983. 10. Public finance. Unfortunately the serious slowdown in econo- mic activity was not followed by an equal slowdown in Niger's public expenditures. The lack of clear signals from the uranium market experts left the Nigerien authorities uncertain about the future of the sector. Expecting a quick recovery of uranium prices, the Government continued to implement its ambitious Five-Year Development Plan by increasingly relying on foreign borrowing to finance the public investment expendi- tures. It was not until 1982 that action was initiated to adjust to the reduced export and revenue prospects. 11. As the uranium boom came to an end in 1980, overall Government revenues stagnated in 1981 and 1982 at a level of CFAF 75 billion and even declined in 1983 to CFAF 72 billion. Meanwhile, overall Government expenditures continued to grow rapidly, increasing from CFAF 124 billion in 1979 to a level of CFAF 173 billion in 1982. This was not only the result of the Government's aggressive investment strategy but also due to the unsatisfactory financial performance of the parastatal sector which had expanded rapidly during the late 1970s. Poor management and frequently uneconomic Government policies and regulations led to large operating losses in many public enterprises, adding an additional burden to the Government budget. The overall Government deficit increased from CFAF 65 billion in 1979 to CFAF 103 billion in 1982, requiring progressively higher levels of borrowing which, in turn, created a severe public debt burden. Public debt service as a percentage of Government revenues increased from 2% in 1979 to 20% in 1982. 12. Balance of payments and debt. The heavy investments in equipment and infrastructure associated with the opening of a second uranium mine and the implementation of a large public investment program resulted in increasing current account deficits for Niger's balance of payments, in particular after the uranium exports started to stagnate and agricultural imports increased during 19EO-82. The financing of this growing deficit forced the country to accumulate a heavy foreign debt which reached CFAF 296 billion in 1983. 13. Although official development assistance to Niger more than doubled between 1977 and 1981, nearly 50% of its foreign debt was contracted on commercial terms. As a result, external debt service payments increased dramatically from $9 million in 1977 to over $200 million in 1983, equivalent to 11% and 53% of the country's exports of goods and services, respectively. This ratio was expected to continue to increase rapidly during the next years unless debt relief was obtained. Niger's Reaction to the Crisis 14. Faced with the rapid deterioration of the country's economic and financial situation, Niger's Head of State instructed his Government in 1982 to (a) introduce urgent austerity measures in the 1982/83 budget and (b) prepare a consolidation program for 1983/84 and 1984/85 aimed at restoring balance to the financial situation of the public sector. Subsequently, in 1983, a number of changes in the Government's organiza- tional structure were made which strengthened the Ministries of Plan and Finance and gave the Prime Minister overall responsibility for the economic and financial management of the country. 15. A strict austerity program was implemented starting 1982/83. Government wages and salaries were frozen, benefits to high school students were discontinued and Government purchases of goods and services were tightly controlled. Most importantly, public investment expenditures were sharply reduced and a tighter control on foreign borrowing was imposed. During 1983, the Nigerien Government prepared, with the assistance of the World Bank, a two year consolidation program for the period 1983-85 to help the domestic economy adjust further to current financial constraints. This program was subsequently supported by a first IMF Standby Arrangement of SDR 18 million and a CFF of SDR 12 million for 1983/84. Recently, in November 1984, the Government nego- tiated a second IMF Standby Arrangement of SDR 16 million to support the continuation of its consolidation efforts during 1984/85. Both programs are aimed at a progressive reduction in the overall Government budgetary deficit and in the current account deficit of the country's balance of payments, as well as laying the foundation for a recovery in economic activity through selective supply oriented measures. To achieve these objectives, the Government is committed to: (a) implement a fiscal reform program and improve tax collections; (b) limit the growth of current expenditures; (c) initiate measures to stabilize the financial situation of major public enterprises; (d) liberalize marketing and pricing policies; (e) reduce and restructure public investment expenditures; and (f) reschedule the external debt. 16. During 1983/84, all measures envisaged under the stabilization program were effectively implemented and, so far, all the performance criteria under the IIF Standby Arrangements have been closely observed despite the emergence of drought conditions and the closure of the Nigerien border, both of which had an adverse impact on the economic and financial situation. The budgetary deficit is estimated to have been sharply reduced from 7.37 of GDP in 1982/83 to 4.7% in 1983/84, reflect- ing mainly a nearly 50% cutback in investment expenditures combined with a small increase in tax revenues as well as a containment of the growth of current expenditures to 8%. Also, a considerable reduction was - 5 - achieved in the arrears of public enterprises. On the external side, the current account deficit was reduced from 9% of GDP in 1982 to 4% in 1983, and is estimated to have narrowed marginally to 3.9% in 1984. External debt service payments, which were scheduled to be at a level of 40% of exports of goods and services in 1984, were reduced to 30% as a result of th2 debt relief obtained from the Paris Club in November 1983 and from foreign banks in early 1984. Further debt relief for 1985 was recently negotiated with the Paris Club in December 1984. Howev;r, due mainly to the adverse weather conditions prevailing in the Sahel region during 1983/84, real GDP continued to fall by nearly 4% in 1984. Poor agricultural harvests are estimated to have resulted in a record cereal deficit of about 500,000 tons for the crop year 1984/85. 17. The G3vernment fully intends to continue its austerity program in the coming years as indicated in the second Standby Arrangement which it has just concluded with the IMF. However, continued austerity will severely constrain Niger's development unless accompanied by further policy measures that will allow the country to restore -- and maintain -- a minimum acceptable level of growth momentum in the medium- term future. For this reason, the Government has requested the assis- tance of the World Bank to formulate a program of structural adjustment to be implemented in the coming years. This program of policy reform is currently under preparation. Structural Adjustment 18. The resources needed for the development of Niger -- human and financial, domestic and foreign, public and private -- are likely to remain severely constrained during the remainder of this decade and beyond. Major changes in domestic policies focused on increasing the efficiency with which these scarce resources are used are, therefore, critical if a significant turn-around in Niger's growth prospects is to be achieved. Broadly, this involves a reduction of dtstortions in the structure of economic incentives in the country as well as improvement in the allocation of public resources. 19. The structure of prices in Niger is considerably less dis- torted than in many of its neighboring countries because of the relative openness of the economy. Prices of most agricultural inputs and outputs, for example, are broadly in line with world markets as are energy prices. However, the overall incentives structure has favored a rapid expansion of the public sector to the detriment of private initiative. A large number of parastatals have been established to enable the Government to intervene directly in the domestic economy. But the efficiency of the public enterprises has generally been low. In agriculture, in particular, parastatal organizations have become both highly costly and inefficient in providing input supply services and marketing outlets to farmers and greater private sector involvement is needed to enable the sector to fulfill its leading role in the country's long-term development. Similar problems exist in other key sectors of the economy. A major reform of the parastatal sector, its policies and its institutional framework, is thus an important component of the structural adjustment program. - 6 - 20. Also, Niger's current industrial incentives system has con- siderable shortcomings. Industrial promotion policies, together with the trade regime, have favored activities which are not necessarily in line with the comparative advantage of the country and have resulted in an inefficient use of capital and only limited employment opportunities. Moreover, the allocation and administration of industrial incentives have, de facto, discriminated against small and medium-scale industry development and have given the Government excessive control over private investment decisions. 21. In general, the Government will need to focus its scarce financial resources and administrative capacity on only a limited and selective set of production growth and poverty alleviation problems for which market forces alone would be insufficient. Moreover, much more efficient allocation of budgetary resources will need to be achieved through improved planning/programming procedures to ensure that existing development projects are more fully utilized and maintained, and that new investments are only considered when they are of the highest priority. Besides taxation, public resource mobilization must also be improved through the introduction of new cost recovery mechanisms. Finally, the Government will need to restructure its large accumulated debt, which threatens to jeopardize the country's future economic and social development. 22. The Government of Niger fully recognizes the need for a program of structural reform if the country is to have any hope of maintaining a minimum level of development momentum. However, the preparation of such a reform program will take considerable time. Detailed studies are needed to formulate appropriate policy responses to the country's structural problems and, subsequently, time will be required by the Government to reflect on the proposed changes and arrive at a consensus with respect to the timing of their implementation. An Economic and Financial Management Improvement Project, which was recently approved by the Executive Directors, constitutes a first step in this process. Besides the strengthening of the country's public administration, the Project will assist the Government in defining a medium-term adjustment program to complement its short-term stabilization efforts. Niger's Future Development Prospects 23. Whereas structural adjustment is essential in Niger to permit the economy to realize its productive potential, it is, in itself, not a sufficient condition to achieve sustainable long-term growth. A con- certed development effort is required to reduce the country's severe real resource constraints and expand the production base of the economy. Primarily, this will involve further development of the agricultural sector and, to a lesser extent, of the energy and mining sectors. It will also require the accelerated development of Niger's human resources in combination with an active program to slow population growth. 24. With the fundamental change in its economic outlook as a result of the downturn of the uranium sector, Niger will, once again, have to rely primarily on its limited agricultural resources for its economic development in the medium term. However, the future of its - 7 - agriculture is uncertain. Past increases in production were achieved through more intensive use of better soils and greater use of marginal lands. Continuation of these practices would severely reduce soil fertility over time. Food self-sufficiency in the eighties and beyond can only be achieved through gradual improvements in yields on lands that are already under cultivation and through an effective .,opulation policy. Given past low levels of investment in human resources, the problems posed by recurrent droughts, and the limited state of the existing agricultural technology suited to Niger's conditions, the needed improvements will require a restructuring of the agricultural sector and will be very difficult to achieve without major and continuing support from the international community. Also, support for better use of modern agricultural inputs, the development of small scale irrigation schemes, and applied research will be crucial to the future development of Niger's agriculture. 25. Other development potential might ei.ist in (non-uranium) mining and energy. Limited geological surveys and exploration have produced mixed results. An important coal deposit of apparently good quality was identified in 1983, but the landlocked position of Niger and the transportation cost for even the local market casts serious doubt over the economic viability of the development of the coal deposit. Similar comments apply to the recent discovery of small oil reserves, the exploitation of which appears to be uneconomical at this stage. More efforts and better planning of geological surveys and exploration will be needed to have a better assessment of energy and mining development potential. 26. Efficient use of these potential resources will require further development of the education system. Primary education will need to be expanded as rapidly as feasible, and professional and voca- tional training designed to meet the specific needs of the Nigerien economy will need to be made available to develop human capital as a productive resource and reduce the country's skilled manpower con- straints. However, the increasing scarcity of public revenues will require original solutions to the financing of such human resources development. On the other hand, the current rate of population growth of 3.3% per year means that the economy would have to devote an in- creasing share of its resources just to maintain existing low levels of income. Consequently, reduction of the population growth must accompany the development program. PART II - WORLD BANK OPERATIONS IN NIGER 27. Twenty-five IDA credits have so far been approved for Niger, totaling US$233.4 million. Annex II contains a summary statement of these credits as of March 31, 1985. Nine credits have been for the rural sector (drought relief, rural development, forestry, irrigation and livestock), and eight for roads, primarily aimed at upgrading the main and feeder road networks. The eight other credits covered telecom- munication, education, power and industrial development, and economic and financial management support to the Government. The rural sector received a total of US$91.6 million, of which US$47.4 million was for rainfed agriculture, US$14.6 million for forestry, US$15 million for irrigation, US$12 million for livestock and US$2.6 million for others. - 8 - 28. While Government's macroeconomic performance has been quite satisfactory, its performance in project preparation and implementation has been rather mixed. This is particularly true for livestock and agriculture where ongoing projects (Second Maradi, Dosso and First Livestock projects) have encountered major difficulties due to a lack of proven technical packages for rainfed farming, land allocation problems in nomadic areas, as well as generally cumbersome administrative procedures and local funding problems. Admittedly, project implementation in these sectors has been seriously handicapped by the recent drought. Except for highway and feeder road construction, implementation of social infrastructure projects, i.e. education, has also been slow. Thus, environmental, institutional and managerial constraints explain why our lending program -- two projects a year amounting to about US$20 million -- remained rather limited in recent years and less than originally expected. This is, however, a situation we hope will improve in the near future (see paras. 30-32). 29. Moreover, due to the current slump in the world economy, the country is having difficulty meeting counterpart financing requirements which during the uranium boom were set at levels of 20-30% of total project costs. In view of the determined steps which the Government is taking to resolve its financial difficulties, IDA has, under its Special Action Program, introduced increased cost sharing arrangements for new, as well as ongoing projects and, where necessary, introduced revolving funds to pre-finance project expenditures. The proposed project includes both features -- 89% external financing of project costs and a revolving fund. In addition, to assist Government in alleviating the effects of the severe drought, the Bank has amended some of the projects currently under implementation to finance the purchase of animals for destocking, as well as seed and emergency food distribution. 30. The Bank's operational strategy in Niger is two-fold: to assist the country in the formulation and implementation of appropriate adjustment programs for the short- and medium-term future, and to help address the country's long-term growth and development issues. Faced with the severe financial crisis in 1982, the Government of Niger has increasingly turned to the Bank -- and to the IMF -- for technical and financial assistance in the preparation of appropriate policy responses. This has led to a rapid expansion of the Bank's dialogue with the country on macro-economic and sectoral policy issues during the last two years, both separately and in conjunction with project lending. As outlined in paragraph 22, the Economic and Financial Management Improvement Project approved in 1984 is specifically designed to assist the Government in analyzing these issues. A structural adjustment credit is planned for mid 1986 to support tLe adjustment efforts that the Government is now introducing. Depending on the success of the Government's efforts to define and implement a program of broad policy reform, Bank Group lending would include in the future other forms of non-project lending such as sectoral or structural adjustment type operations. 31. Lending operations will also support Niger's long-term development by emphasizing productive investment and institutional - 9 - reform, particularly in the agricultural sector. Here, the severity of natural constraints and the present state of technical knowledge make development slow and difficult. However, experience with ongoing projects has demonstrated that potential may exist, and the Bank is searching for ways both to stimulate production and to mitigate the impact of reLurrent droughts. Bank Group lending will support projects to increase production through gradual development of irrigation potential, provision of services to pastoralists, and crop-livestock integration. Future lending in the sector will continue in these directions, while seeking especially to improve technical packages, lower irrigation costs, and introduce smaller-scale, graseroots- . initiated development projects. 32. Other sectors that will continue to be the focus of Bank Group operations will be human resources (health and education), water supply, energy and transportation. Thus, our future lending strategy will consist of a mix of structural adjustment and project lending, a combination which we hope will assist Government in overcoming its present financial crisis and, in the long run, develop the country's productive resources in an optimal fashion. This should entail an increase in our lending program for Niger in the coming years if the Government is able to take the steps to prepare and implement Bank operations in a timely fashion. The proposed project would be the second operation during this fiscal year. A Power Engineering and Technical Assistance Project (Credit No. 1511-NIR) was presented earlier. Projects in the transport and health sectors are presently being appraised and are expected to be presented to the Board in FY86. PART III - THE AGRICULTURE AND RURAL SECTOR Sector Background 33. Agriculture remains the most important activity and the principal livelihood of the population, accounting for a little less than half of GDP and about a quarter of the country's exports. Never- theless, the country is constrained by poor agricultural resources. Per capita availability of arable land with at least 600 mm precipitation and of irrigable land is only one third of the average for the Sahelian countries. Rainfall is not only scanty but also irregular, making Niger vulnerable to droughts. In the early seventies, Niger experienced severe drought that reduced livestock herds and food production dramatically. Most recently, 1983/84 was poor and 1984/85 very poor: it is estimated that cereal shortfalls in 1984/85 may amount to more than 500,000 tons as compared with the estimated demand of about 1.3 million tons. The two consecutive years of poor rains in the pastoral areas may have led to a serious long-term impact on the natural pastures. The contribution of the irrigation subsector to national agricultural production is limited, with irrigated lands representing less than 1% of the total cultivated area. 34. Nigerien agriculture is largely subsistence-based. The principal crop is millet, supplying about 75% of the total cereals production, followed by sorghum, providing about 20%. Rice is a distant third, supplying 2% of the cereals production. The principal cash crops - 10 - are groundnuts, cowpeas and cotton. The main export commodity in agriculture is livestock (cattle on the hoof), followed by cowpeas. The once important exports of groundnuts have remained at insignificant levels since the 1973/74 drought. Cotton has been a minor cash crop 9nd its production does not meet the needs of the domestic textile industry. 35. In rainfed agriculture, the Government strategy has been to set up regional "productivity projects" in viable cultivation areas, which aim to provide smallholders with improved extension, input supply, credit and marketing. The results so far obtained from the "productivity projects" have been far below those originally expected, mainly due to lack of appropriate technical packages for below average rainfall situations. At a national seminar in November 1982 in Zinder on the organization of agricultural development projects and related policies, the constraints and difficulties in implementing current large-scale area development projects were recognized. The Government's stated policies following the Zinder seminar are to promote farmers' participation and self-management, to promote grassroot level technical packages through small-scale, village level tests and demonstrations, and to upgrade extension teams so that they can respond to changing local demands. In controlled irrigation, Government has set a modest goal of developing about 1,000 ha per year. The importance of improving maintenance of irrigation schemes and cost recovery was recognized at the Zinder Seminar, and self-management of irrigation schemes by cooperatives was recommended and later endorsed by Government. The proposed project is in line with this Government strategy. The Irrigation Subsector 36. The irrigation potential in Niger is estimated at about 270,000 ha. Of this, 140,000 ha is in the Niger valley. The rest is in the ADM (Ader-Doutchi-Maggia) valley (20,000 ha) in Tahoua Province, the area along the Romadogou River and Lake Chad in the east (50,000 ha), and in ancient river valleys called dallols and other small valleys (60,000 ha). Out of the irrigation potential in the Niger valley of 140,000 ha, only 30,000 ha are lowlands ("cuvettes"), which have generally good soils easily irrigable by low-lift pumping. The rest consists of upland terraces where soils are quite heterogenous and high-lift pumping is costly. As of end 1983, there are about 10,000 ha of irrigated land developed or under development in Niger, of which 6,000 ha are in the Niger valley and 3,500 ha in the ADM valley. 37. Niger valley. About 90Z of the areas developed in the Niger valley are rice monoculture. With the exception of Namarigoungou (1,450 ha), the 22 existing perimeters vary in size from 50 to 400 ha. Most pumping stations are equipped with diesel engines. 38. Potential yields as high as six tons of paddy/ha/crop are attainable if all recommended practices are followed, but actual performance has fallen well short of this production potential. In 1982, average yields were estimated at only 2.8 tons/ha. Moreover, one quarter of the total land developed was abandoned due to the deterioration of irrigation infrastructure, and farmers could not manage a second crop on 15% of the remaining area. The reasons for this poor performance are: (a) faulty design (e.g., some pumping stations are - 11 - located in parts of the river that dry up during the low-flow season); (b) too much reliance on parastatals for the design, operation and maintenance of the irrigation schemes; (c) unduly standardized agronomic packages that do not take account of different local conditions in the area; (d) lack cf a good seed multiplication and distribution system; (e) workload conflicts between the wet season rice crop and traditional rainfed crops, which could be resolved by providing animal traction equipment; and (f) lack of incentives for farmers (e.g., compulsory marketing of unduly high quotas imposed by Government and unattractive official prices until 1982). 39. The ADM valley. Irrigation in the ADM valley, obtained by gravity from three small catchment basins, is essentially a supplement to the rains. The main crops during the wet season are cotton and sorkhum in rotation. Average yields are already high at 2.6 and 1.9 tons, respectively. Dry season crops are vegetables (mainly onion), maize and wheat. On one perimeter, double cropping is impossible because of the small capacity of the reservoir. On the others, 10-50% of areas developed are double cropped. The main problem in the area is the increasing siltation of the reservoirs, which reduces their capacity and would eventually render them inoperative. Another problem is the poor maintenance of the irrigation and drainage infrastructure, which has led to the abandonment of parts of the perimeters. National Irrigation Authority (ONAHA) 40. The "Office National des Am6nagements Hydro-Agricoles" (ONARA) was created in 1979 as a financially autonomous public enterprise of an industrial and commercial character, charged with the preparation of studies and execution of irrigation works, the management of irrigation schemes, the provision of extension services and the recovery of water charges. Since its creation, ONAHA has acquired technical competence in civil works construction as well as in the areas of support activities for agricultural production. The Bank- and KfW-financed Namarigoungou project (paras 45-49) helped ONAHA to develop these skills. The new orientation towards self-management of irrigation schemes by cooperatives, recommended at the Zinder Seminar and later endorsed by Government, put emphasis on the role of ONAHA in: (a) developing new irrigation schemes and rehabilitating the existing ones; (b) acting as a manager until cooperatives take over management of perimeters; (c) providing services at full cost at the request of cooperatives; and (d) helping to ensure self-management by cooperatives. 41. A weakness, however, is found in administrative and financial management. Internal control over personnel and administrative procedures is weak. In addition, ONAHA has been confronted with severe finrncial problems because Government failed to provide it with funds buhgeted and would not allow it to charge cooperatives at rates which covered costs. As a result, ONAHA has been obliged to borrow funds from the National Agricultural Development Bank ("Caisse Nationale de Cr&dit Agricole" - CNCA), and is currently unable to repay its accumulated debt estimated at CFAF 900 million. As conditions of effectiveness for the proposed project, Government is to make satisfactory arrangements for the assumption or settlement of ONAHA's accumulated debts to CNCA, and to pay off ONAHA's overdues to its suppliers (CFAF 200 million) - 12 - (Section 6.01 of draft Development Credit Agreement - DCA). In general, the proposed project would strengthen ONARA's financial and administrative capability (para. 57). Cooperatives 42. Niger has a good legal framework for the development of cooperatives. Since 1966, Government has promoted a cooperative system which is based on collective membership of basic socio-economic enti- ties, i.e., villages. Several Village Mutual Groups ("Groupement Mutualiste Villageois" - GMV) comprised of heads of households in each village are combined to form a cooperative. A GMV is collectively responsible vis-&-vis the cooperative to which it belongs for obtaining credit, purchasing inputs, collecting water charges, etc. Almost all the territory is now organized into cooperatives. 43. Irrigation cooperatives formed by all the participating farmers in each irrigation perimeter are assisted by ONAHA for technical and financial management. Under the proposed project, cooperatives themselves would be in direct charge of the operations and management of irrigation schemes, with ONARA having only an advisory role and pro- viding training. Rice Marketing and Pricing 44. The national production of paddy is estimated to have been in the range of 25-40,000 tons per year and meets only some 40% of consump- tion estimated at 70-80,000 tons. The rice processing parastatal ("Sociitf Riz du Niger" - RINI) buys paddy from farmers through cooperatives at fixed prices set by Government and sells the rice to the Grain Marketing Board ("Office des Produits Vivriers du Niger" - OPVN) or private merchants at prices also set by Government. Official paddy prices were raised in 1982 to their current level of CFAF 85/kg, which provides adequate incentives to farmers. However, the Government is now considering full liberalization of cereal pricing as part of its future structural adjustment program. Government until recently imposed compulsory paddy sales by cooperative members to RINI at levels which left very little for their own consumption. However, farmers would now be given the option of selling to RINI or to the private sector any surplus of marketable paddy above what they owe to their cooperatives (e.g., for direct operating costs of irrigation and seasonal inputs) (Section 2.05 of draft Project Agreement - PA). Experience under Previous Irrigation Projects 45. Namarigoungou Irrigation Project. The project (Credit No. 851-NIR) became effective in October 1979 and construction started in early 1980, jointly financed by IDA and KfW. The project was completed in December 1983, and a project completion report is under preparation. 46. The project has increased Niger's agricultural production, especially rice (about 10,000 tons of incremental paddy production), through the development of 1,450 ha of irrigated lands (1,350 ha of rice perimeters and the rest for vegetables and other crops), and has been successful in raising the income of participating farmers. - 13 - 47. The project's main achievements were: (a) the setting up of two well-functioning cooperatives, which are models for other coopera- tives; (b) the successful introduction of animal traction and foot-operated threshing machines; (c) a good record of cost recovery (in addition to the cost of inputs, beneficiaries bore the full cost of energy and pumping set maintenance, and set aside a provision for equipment replacement); (d) effective seed multiplication at the farmers' group level (Namarigoungou even produces seeds for other perimeters); and (e) acceptable yields (despite serious pest attacks, present yields average 4 tons/ha of paddy) and the achievement of double cropping on the entire area developed. 48. The appraisal mission of the proposed project judged, however, that to sustain the present high performance, further support would be necessary. For this reason, the Namarigoungou perimeter would be included in the proposed project for such aspects as credit, follow-up training, agricultural extension, assistance to cooperatives, and monitoring of alkaline soils. 49. The lessons learned from the Namarigoungou Project have been included in the proposed project which in turn is expected to provide further experience in particular with regard to cooperative management of irrigation schemes and the role of ONAHA in irrigation development and monitoring. Thus, the implementation of the Irrigation Rehabilitation Project would provide Government and IDA with important information which would be most valuable for the preparation of future investment projects in this field. PART IV - THE PROJECT Project History 50. Preparation of the project began in February 1982 with a PPF advance of US$1 million and a CCCE advance of US$200,000. Based on the feasibility study, project appraisal was carried out by a joint IDA/CCCE mission in November-December 1983. Negotiations were held in February 1985 with a Nigerien delegation led by His Excellency Mr. Haladou Salha, Secretary of State of Rural Development. Two important problems concerning the rice processing agency "Riz du Niger" and medium-tern credit distribution remained unresolved during negotiations. However, satisfactory solutions to these two points have now been worked out and are discussed below. Project Objectives and Description 51. The principal project objectives are to promote cooperatives'/farmers' self-reliance in management of irrigation schemes, to ensure the sustainability of the irrigation schemes, and to increase production of paddy, cotton, sorghum and other crops, thus improving farm incomes. The project also aims at developing an institutional framework for future irrigation development by: (a) ensuring extensive participation of cooperatives/farmers in operating and managing perimeters; (b) setting up an efficient cost recovery mechanism; (c) involving the private sector in maintaining - 14 - pumping equipment; and (d) strengthening ONARA, the Government's irrigation development agency. These objectives would be achieved in existing irrigation perimeters through the following project components: (a) rehabilitation of irrigation infrastructure and equipment; (b) promotion of crop intensification, including promotion of animal traction; (c) assistance to irrigation cooperatives; (d) introduction of adaptive research and seed multiplication; (e) strengthening of ONARA's management capability, including setting up a monitoring and evaluation unit; and Cf) strengthening of RINI's management capability. The Staff Appraisal Report (No. 5161-NIR) is being circulated to the Executive Directors separately. Annex III contains supplementary project data. 52. Rehabilitation works would cover 16 perimeters, namely, 11 pump-irrigated perimeters in the Niger valley, totaling about 2,200 ha, and five gravity-irrigated perimeters in the ADM valley, totaling about 850 ha. The main improvement in the Niger valley would consist of the replacement of most diesel-driven pumping units with electric ones, which are easier to maintain and more economical. Diesel pumps would be repaired and kept as back-ups in case of power failure. In the ADM valley, the main works would be the rehabilitation of the three catchment dams, including raising the crest level of one dam (Ibohamane). In both valleys, rehabilitation works would also involve the reshaping and reinforcement of protection dykes, and the rehabilitation of portions of irrigation canals, drains and access roads. The rehabilitation of infrastructure would bring back into production an additional area of about 350 ha, included in the total of 3,050 ha, and introduce double cropping to the whole rice area in the Niger valley. ONARA would not start rehabilitation works on a given perimeter until it had concluded a contract, satisfactory to IDA, spelling out mutual obligations regarding operations and maintenance of irrigation works with the cooperative concerned and this cooperative had adopted internal statutes consistent with the model satisfactory to IDA (Section 2.05 of draft PA). 53. After rehabilitation, ONAHA would continue to be responsible for any maintenance of irrigation and drainage canals and dykes requiring heavy equipment. Terms and c-aditions for such maintenance would be set out in contracts between ONARA and each cooperative. The project would finance the establishment of two maintenance brigades attached to regional offices of ONARA. Any canal maintenance to be done by hand would be the responsibility of cooperatives. Maintenance of pumping equipment, on the other hand, would be entrusted to private - 15 - contractors, and bidders for pumping equipment have been requested to submit bids for pump maintenance. Pump maintenance contracts between each cooperative and an equipment supplier would be monitored by ONAHA. ONAHA would review maintenance performance under such cantracts annually. 54. Crop intensification programs would be carried out on the 16 perimeters to be physically rehabilitated as well as the two rice perimeters of Say and Namarigoungou where no physical rehabilitation is necessary (4,700 ha altogether). The intensification would aim at: (a) an average paddy yield of 3,850 kg/ha/season on the 13 rice perimeters (3,835 ha), compared with the present average yield of 2,600 kg/ha on the perimeters to be rehabilitated; (b) a double cropping on all rice areas; and (c) average annual yields of 2,800 and 2,000 kg/ha for cotton and sorghum, respectively, in the ADM region, compared with the present yields of about 2,600 and 1,850 kg/ha, respectively. These improvements would be achieved by: (a) increasing fertilizer dosages based on results of trials carried out in Namarigoungou; (b) providing medium-term credit for the purchase of 2,000 pairs of draft animals with equipment and 1,500 pedal threshers to enable timely land preparation and threshing; and (c) supplying pure seed. 55. Assistance to cooperatives. The success of the project in the long run hinges on the participation of beneficiaries and on their adequately maintaining the assets put at their disposal. While con- siderable progress has already been made in this field, clearly defined responsibilities and a strong training program are still required to achieve self-management by cooperatives in the maintenance of irrigation works and pumps, marketing of paddy and preparation of proper cooperatives' accounts. To provide a favorable environment for cooperative self-management in irrigation schemes, Government has taken actions to clarify cooperative accounts viS-A-vis banks, suppliers, collection agencies and individual members, as well as to draw up a draft contract between Government and cooperatives, and a draft of the cooperatives' internal statutes. Government has also been requested as a condition of effectiveness to prepare a plan for reconstructing cooperatives' debts including recommendations, if necessary, through a Government-appointed committee, for debt rescheduling, cancellation, or expulsion of defaulters and to take concrete steps to implement such a plan. This exercise is well under way. Functional literacy and numeracy programs, executed by the Literacy Service of the Ministry of Education and the "Animation" Service of the Ministry of Planning, and coordinated by ONAHA, are at the core of the training program for cooperatives. Simple accounting procedures suitable for cooperatives were also developed as part of project preparation. ONAHA would supervise cooperative management and ensure enforcement of contracts and statutes. It would also help them establish village woodlots on soils unsuitable for crops. In addition to animal traction equipment and pedal threshers (para 54), the project would provide medium-term credit for blacksmith equipment and collective agricultural equipment as well as seasonal credit for inputs, as outlined further in paragraph 70. 56. Adaptive research and seed multiplication. The National Institute of Agronomic Research (INRAN) would conduct on-site fertilizer - 16 - trials and would introduce and test new rice varieties. INRAN would also produce, on a contract basis, rice foundation seeds to be multi- plied by cooperatives. Two agronomists, financed by the project and posted at ONAHA headquarters, would be the key liaison between research and extension. They would assist ONAHA regional offices in testing the packages proposed by INRAN, plan the production of foundation seed and monitor the quality of cooperatives' and contract farmers' seed multiplication. 57. Strengthening of ONAHA. Given the weak administrative and financial management of ONAHA, the project would finance additional staff including an expatriate financial manager and a chief accountant, office equipment, vehicles and operating expenses, as well as revolving funds for UNAHA to prefinance expenditures to be reimbursed under external financing. In addition, ONAHA would establish a unit for coordination, monitoring, evaluation, financial planning, budgeting and budgetary control. ONAHA would set up this new unit to be fully operational not later than December 31, 1985, and would appoint personnel with qualifications and experience satisfactory to IDA to staff the unit (Section 2.06 of the draft PA). Due to lack of effective internal control over administrative procedures, the most recent accounts (1982/83) of ONAHA were not certified. In order to redress this situation, a condition of effectiveness of the IDA credit would be that ONAHA employ a financial manager, a chief accountant and three regional accountants whose qualifications would be satisfactory to IDA (Section 6.01 of draft DCA). ONAHA would put order in its accounts by September 30, 1986, the date by which these accounts must be certified by independent auditors (Section 4.01 of the draft PA). 58. Strengthening of RINI. RINI's technical and financial capa- bilities have improved significantly since mid 1983. However, in order to run its rice mills effectively and become financially viable, RINI would need financial and managerial assistance. The project would finance additional storage capacity, minor equipment, and technical assistance for RINI to enable it to process the paddy purchased from the project cooperatives and farmers and to improve its overall efficiency. Government is in the process of negotiating a management contract for RINI with the French Company for Cotton Development (CFDT). As a condition of effectiveness, Government would cause RINI to sign a management contract satisfactory to IDA (Section 6.01 of draft DCA). International Water Rights 59. Since works would be limited to the rehabilitation of existing perimeters, the project would not cause the consumption of river water to exceed the consumption capacity that was originally foreseen for these perimeters under optimal conditions. Water consumption would, however, be marginally increased over the current level because some areas are not under cultivation at present due to the deterioration of irrigation works. The project would not have significant adverse effects on downstream riparians. All Niger river riparians have signed the 1980 convention creating the Niger Basin Authority, which is charged, inter alia, with harmonizing and coordinat4ng national development plans on the Niger river. The convention requires member states to inform the authority of any works undertaken on the river. At - 17 - negotiations, the Government confirmed that they had complied with this requirement. Project Implementation 60. The project would be implemented over a five year period, starting in October 1985, with ONAHA as the lead agency. ONAHA's General Manager would act as Project Manager, except for the RINI component, which would be managed separately by RINI. ONAHA's three Regional Offices (Tillabery, Niamey and Tahoua) would be responsible for day-to-day project activities and field level coordination. ONAHA would be directly responsible for implementing the physical rehabilitation of the irrigated perimeters and for carrying out crop development activities (extension, crop intensification, monitoring and evaluation). Adaptive research and the production of foundation seeds would be subcontracted to INRAN. The electrification of the pumping stations would be subcontracted to the National Electric Authority (NIGELEC). For cooperative training, ONAHA's Regional Offices would coordinate and supervise the implementation of training activities by regional teams composed of representatives of the Literacy Service of the Ministry of Education, the "Animation" Service of the Ministry of Planning and ONAHA. The Forestry Service of the Ministry of Hydrology and Environment would, under ONAHA's supervision, help establish village woodlots on soils unsuitable for crops. Cost Estimates and Financing Plan 61. Total project costs, net of identifiable taxes and duties, are estimated at US$25.2 million equivalent, of which about US$14.2 million (57%) in foreign exchange costs. Cost estimates are based on price quotations as of December 1983, adjusted to February 1985, the date of negotiations. They include physical contingencies totaling 5% of project base costs, and price contingencies on local costs of 6% annually, and on foreign costs applied as follows: 1985, 5%; 1986, 7.5%; 1987-89, 8%. 62. The proposed financing plan is based on a combination of joint and parallel arrangements among the external donors and reflects their particular preferences on the terms and conditions of their participation in the project. External sources, including IDA, would provide US$22.5 million equivalent, or about 89% of total project costs, net of taxes. IDA would finance US$9.3 million equivalent (37% of the total); CCCE, US$9.3 million equivalent (37%); and KfW, US$3.9 million equivalent (15%). IDA would finance rehabilitation of the catchment dams in the ADM valley (US$1.2 million), the earthmoving equipment (US$1.2 million) and pedal threshers (US$0.3 million), expatriate staff (Chief of Monitoring and Evaluation of ONAHA, Chief of Financial Planning, Budgeting and Budgetary Control of ONAHA) and short-term consultarts (together US$1.4 million). Jointly with CCCE and EfW, IDA would also finance rehabilitation works on force account (excluding equipment and expatriate staff), miscellaneous construction, local operating costs, miscellaneous equipment and seasonal credit funds for cooperatives. In addition to the above, CCCE would finance the pumping equipment, civil works related to pumping stations, vehicles, farm implements, the revolving fund for RINI and consultants (US$6.8 million) - 18 - under a parallel arrangement, and KfW would finance the electrical equipment, works and equipment for RINI and consultants (US$1.8 million) also under a parallel arrangement. 63. The Nigerien Government contribution to project costs would be about US$1.3 million equivalent (5.0%) to finance the overhaul of the Namarigoungou equipment used for the rehabilitation works and incremental civil servant staff salaries. Beneficiaries' contribution, consisting of down-payments for agricultural equipment and medium-term credit repayment, is estimated at US$1.4 million (5.7%). Procurement and Disbursement 64. Engineering designs are available for all works to be con- structed. Preparation of bidding documents was completed in May 1984. In order to minimize the risks of cost overruns, bids have been called and are currently being reviewed, and the results do not affect the cost estimates. 65. Procurement. Works and goods to be financed under parallel arrangements by CCCE and KfW (para 62) would be procured through procedures acceptable to these agencies. Works and goods to be financed exclusively by IDA would be procured under international competitive bidding (ICB). Except for rehabilitation of the catchaent dams in the ADM valley (IDA under ICB) and civil works related to pumping stations (CCCE), rehabilitation works on irrigation/drainage systems, roads and protection dykes would be done on force account, since the dispersed and sporadic nature of the works and the need to work around cropping schedules give an advantage to ONAHA. Force account work done under the Namarigoungou project has proven less expensive when compared with the quotations for similar works by local contractors. Contracts for other civil works totaling US$0.2 million would be awarded in accordance with local procedures acceptable to IDA. Contracts for miscellaneous equipment valued at less than US$50,000, to be financed under a joint arrangement, would be awarded on the basis of local competitive 'idding procedures, which are acceptable to IDA. Amounts and methods of procurement are shown in tabular form at Annex IV, where the IDA amounts are in brackets. 66. Consultants. Expatriate staff and short-term consultants costs amount to about US$3.6 million, including contingencies, for 246 man-months of resident expatriate staff (for force account works, ONAHA's financial, agricultural and monitoring staff, RINI's rice processing expert) and 39 man-months of short-term consultants. Expatriate staff and consultants to be financed by IDA would be selected in accordance with procedures satisfactory to IDA and their terms of reference, qualifications and experience would also be acceptable to IDA. 67. Contract review. All bidding packages for works and goods over US$100,000 financed by IDA would be subject to IDA's prior review of procurement documentation. Such packages are expefted to constitute about 90% of the total estimated value of works and goods contracted other than force account works. The remaining contracts would be - 19 - subject to random post-review by IDA after contract award. Civil works done on force account would be reviewed through annual budget approval. 68. Disbursement. Disbursement of the proposed IDA credit is expected to be completed in six years under the following categories: (1) Civil works: (a) rehabilitation of catchment dams (US$1.1 million) -- 100% of total expenditures; (b) other (US$1.3 million) -- 49% of total expenditures; (2) Equipment: (a) construction (US$1.1 million) -- 100% of total expenditures; (b) agricultural -- threshers (US$0.3 million) -- 90% of total expenditures; (c) agricultural -- other (US$0.1 million) -- 44% of total expenditures; (3) Salaries of ONAHA's incremental staff on contract, training and operating costs and office equipment (US$1.4 million) -- 49% of total expenditures; (4) Services of consultants, experts and specialists and studies (US$1.4 million) -- 100% of total expenditures; (5) Seasonal credit fund (US$0.2 million) -- 49% of total expenditures; (6) Special Account (US$0.8 million); (7) Refunding of PPF (USS1.0 million); and (8) Unallocated (US$0.6 million). Withdrawal applications would be fully documented, except for cate- gories (1)(b) and (3) above, for which statements of expenditures (SOE) would suffice. In the case of the SOE procedures, supporting documentation would be kept by ONAHA for verification by the auditors financed under the project and for review by IDA supervision missions. On-Lending and Administration of Funds 69. The proceeds of the IDA credit would be passed on by Govern- ment in grant form to ONAHA and as a line of credit to cooperatives at an annual interest rate of 1.0% to purchase agricultural equipment. Assets created or upgraded by investments (rehabilitation works) would belong to Government, while ONAHA would act as a manager for the assets. Funds for applied research and the -electrification of the pumping stations would be passed on to other subcontracting Government agencies (INRAN and NIGELEC) by ONAHA. ONAHA would furnish the appropriate Government services with all the means necessary (except civil servant salaries) to carry out training activities and the establishment of woodlots. - 20 - 70. Credit management. The project would finance two types of credit. Credit would not be channelled through the National Agricultural Development Bank (CNCA) which, because of past questionable lending practices, is facing increasing recovery problems. Being practically bankrupt it has now ceased all lending operations. Hence, until a long-term solution for agricultural credit is worked out, credit under the project would be handled in the following way. First, seasonal credit would be provided by cooperatives to their members out of their seasonal credit funds (a total of US$0.9 million), to be established at each cooperative by the project as a grant. With this fund, cooperatives would purchase seasonal inputs for the use of members and prefinance collective charges for irrigation operations. After the initial establishment of seasonal credit funds, individual members' repayment against seasonal credit would be paid into the revolving fund administered thereafter by each cooperative. Seasonal credit extended to individual members by cooperatives would bear annual interest of not less than 12% to cover administrative costs, bad debts and expected inflation (Schedule 4 of draft DCA). Secondly, medium-term credit would be provided for farm implements (US$1.9 million), blacksmith equipment (US$34,000), threshers (US$0.6 million), and collective equipment (US$0.35 million). Medium-term credit would be managed by cooperatives, with technical assistance provided by ONAHA. Farmers would make a minimum 10% down-payment and repay the rest to the cooperatives at an annual interest rate of 12% over a period of a maximum of five years. Cooperatives would in turn repay Government at an annual interest rate of 1.0% over a period of a maximum of eight years (Schedule 4 of draft DCA). Since further details on terms and conditions for credit remain to be laid out, Government would, as a condition of disbursement for agricultural equipment and seasonal credit funds (Categories (2)(b), (2)(c) and (5)), make contractual arrangements with cooperatives satisfactory to IDA for seasonal and medium-term credit (Schedule 1 of draft DCA). 71. Revolving funds. In view of Government's limited capacity to prefinance expenditures for rehabilitation works, each of the cofinanciers would establish a revolving fund for a total amount of CFAF 720 million (US$1.6 million) immediately after credit effectiveness. IDA would make an initial deposit of its share (49% of the total), CFAF 353 million (US$0.8 million), into an IDA Special Account. IDA would replenish the revolving fund upon receipt of satisfactory evidence that related expenditures were eligible for financing. Auditing and Reporting Requirements 72. ONAHA would keep separate project accounts at its three regional offices and would consolidate them in accordance with sound and acceptable accounting principles and practices. In additior, ONARA would complete the design, installation and operation of r cost accounting system by December 31, 1985. Annually audited financial statements and reports for ONAHA, as well as bi-annual reports on physical and financial progress of the project, would be submitted to IDA for review according to an agreed schedule. Cooperatives' accounts would also be audited by an independent auditor every other year starting from fiscal year 1985/86 and ONAHA would provide assistance for - 21 - the design and installation of an appropriate accounting system for cooperatives, and training of local bookkeepers capable of running the system. Recurrent Costs and Cost Recovery 73. All the direct mai.ntenance and operating costs for irrigation, including energy, maintenance of infrastructure and pumps, replacement of pumps and salaries of perimeter managers, would be borne by beneficiaries (Section 2.05 of draft PA). ONAHA would charge the full cost of maintenance services for irrigation infrastructure to allow it to replace maintenance equipment. Recovery of investment costs (irrigation infrastructure and initial installation of pumps) is aot envisaged, at least at the beginning of the project. However, once yields improve and farmers accept the principle of paying all the direct maintenance and operating costs, there may be room for a "capital tax" to recover a part of investment costs. Therefore, the imposition of the "capital tax" is subject to a detailed review in PY3 (1987/88) and may be introduced in PY4 (1988/89) if the results of monitoring and evaluation of farmers' income demonstrate its feasibility. While cooperatives would thus assume increased responsibility for irrigation operations and maintenance, Government would retain responsibility for ane finance the costs of a nucleus extension network, the adaptive research program and the operation of technical and support services at central and regional levels. These incremental recurrent costs (CFAF 55 million) and ONAHA's non-incremental overhead costs (public service functions) would amount to CFAF 255 million per year in 1984 prices, for which Government would provide timely and sufficient funds to ONAHA (Section 4.02 of draft DCA). This amount is less than two thirds of ONAHA's present budgetary requirement. Government's project-related cash flow is positive prior to debt service buz slightly negative, except for a few years, after debt service; the proposed capital tax would render the post-debt service cash flow positive. 74. The Government originally established a policy of subsidized agricultural inputs as a means of transferring some of the uranium revenues to the rural sector. Although the uranium revenues were severely depleted, the subsidies were retained, with the consequence that quantities of inputs available were reduced. Since the benefits of improved inputs have been demonstrated, there is little justification for a subsidy on farm implements (current subsidy rates ranging from 40 to 60%), although there is some justification for a subsidy on seasonal inputs as a proxy for the absence of any form of insurance against crop failure. At negotiations, the Government confirmed that it is the Government's stated policy to gradually abolish all agricultural input subsidies and that, in fact, under a recent USAID agricultural sector grant, the Government is already committed to reducing the average rate of subsidy on agricultural equipment to 15% by end-1988. IDA agreed for the purpose of this project to accept the Government's present efforts. Reduction of subsidies both on agricultural equipment and seasonal inputs would continue to be reviewed in the context of the structural adjustment program currently under preparation. - 22 - Project Benefits and Risks 75. The project would directly benefit about 80,000 people. They are essentially subsistence smallholders. engaged in rainfed farming as well as in irrigation with a small parcel of about 0.25 ha each and are therefore somewhat better off than others who do not have access to irrigation. The main quantifiable benefits of the project would be increased production of paddy in the Niger River valley, increased production of cotton, sorghum and onion in the ADM valley, savings on operation and maintenance costs, and time savings resulting from the use of pedal threshing machines for paddy. At full development, annual incremental production is estimated at 11,000 tons of paddy (PY5), 990 tons of seed cotton (PY15). 740 tons of sorghum (PY15), and 1,710 tons of onion (PY4). Non-quantifiable project benefits are expected to come from the improvement in institutional arrangements, which aims at establishing a reliable and sustainable system of irrigation operations in the country. 76. The economic rate of return on the overall project is esti- mated at 18%. In the event of a 20% decrease in benefits and 202 increase in costs, the rate cf return would fall to 14% and 15% respec- tively. The rate of return for the 14 Niger valley perimeters alone is 20% and for the ADM valley (five perimeters), 12%. 77. The technical risks associated with the physical rehabilita- tion works are minimal. The only major foreseeable risk is related to maintenance and operations. The maintenance contracts of pumping stations entrusted to the private sector are subject to an annual performance check to keep maintenance costs to a minimum and at the same time to prevent poor maintenance. The other risk would be the failure on the part of cooperatives to establish a reliable system of maintenance and operations. To minimize this risk, the project would finance an important training program covering functional literacy, numeracy and management, and would ensure that the necessary framework (contracts between Government and cooperatives, internal regulations and clearing-up of accounts) is in place before any rehabilitation work starts. The fact that all the perimeters are independent would substantially reduce the risk of a major project failure. 78. Other possible risks are financial and managerial. One risk would be failure by Government to provide a sufficient budgetary allocation to ONAHA. This risk cannot be entirely ruled out but the amount at stake is less than ONAHA's present budgetary requirement and Government's project-related cash flow would be favorable. The risk related to ONAHA's management capability would be minimized by financing a training program for its staff and technical assistance and by Government's strong commitment to this project. PART V - LEGAL INSTRUMENTS AND AUTHORITY 79. The draft Development Credit Agreement between the Republic of Niger and the Association, the draft Project Agreement between the - 23 - Association and ONAHA, and the Recommendation of .:he Committee provided for in Article V, Section 1(d) of the Articles of Agreement of the Association, are being distributed separately to the Executive Directors. 80. Special conditions of the proposed project arq listed in Section III of Annex III. A condition of disbursement for medium-term and seasonal credit is that Government make contractual arrangements with cooperatives satisfactory to IDA for credit distribution (para 70). Conditions of effectiveness are as follows: (a) Government would make satisfactory arrangements for the assumption or settlement of ONAHA's accumulated debts to CNCA (para 41); (b) Government would -ay off ONARA's overdues to its suppliers (para 41); (c) Government would prepare a plan for reconstructing cooperatives' debts including recommendations for debt rescheduling, cancellation, or expulsion of defaulters and would have taken concrete steps to implement such a plan (para 55); (d) ONAHA would employ a financial manager, a chief accountant and three regional accountants whose qualifications would be satisfactory to IDA (para 57); (e) Government would cause RINI to sign a management contract, satisfactory to IDA, with a qualified firm (para 58); and (f) Government would meet the conditions of effectiveness of the CCCE loan and KfW grant. 81. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association. PART VI - RECOMMENDATION 82. I recommend that the Executive Directors approve the proposed credit. A.W. Clausen President Attachments date Washington, D.C. -24- ANNEMEI Page 1 of 5 NICER - SOCIAL INDICATORS DATA TOTA1 MicaL REFERTNC GROUPS (TUIRATLD AVERACU) HOST (HOST RcfT mu). on LOW INCOME AgicA HIDDLE INCcr (KILO1RANSTd S OF SASRA AFRICA S. O U LAEM mu (MMMM&WI SQ. INj TOTAL 1207.0 1207.0 1267.0 AGRICULTUR.AL 126.0 130.0 131.2 a" mCAPIT CUSS) 120.0 140.0 310.0 249. 1 1112.9 -no Cmmillmol MR CAPIT (KILOGRAMS OF OIL EQUIVALENT) 4.0 11.0 32.0 02.6 529.0 rOULAuOl A- VrrAL STATIrICS POPULATION.NID-TEAR (THOUSANDS) 287.0 4008.0 3678.0 URBAN POPULATION (Z Or TOTAL) 5.8 8.6 13.5 29.7 POPULATION PROJECTIOMB POPULATIOH IN TEAR 2000 (HILL) 10.5 STATIONARY POPULATION (KILL) 40.0 POPULATION HONENTIUM .9 POPULATION DENSITT PER SQ. m1. 2.3 3.2 4.5 32.5 33.8 PER SQ. mH. AGRI. LAND 22.5 30.8 43.5 119.2 111.5 POPULATION AGE STRUCTURE (I) 0-14 TRS 44.8 46.3 47.0 45.6 43.4 L-64 TRS 52.7 31.1 50.7 51.3 31.7 65 AND ABOVE 2.6 2.6 2.5 2.9 2.9 POPULATION GROWTH RATE (1) TOTAL 2.3 3.3 3.2 2.6 2.6 URBAN 4.1 7.0 7.1 0.2 5.2 CRUDE BIRTH RATE (PER THUS) 51.9 50.7 51.3 48.6 47.0 CRUDE DEATH RATE (PER THOUS) 26.8 23.8 20.1 17.7 15.2 GROSS REPRODUCTION RATE 3.5 3.5 3.5 3.2 3.2 FAMILY FLAHNING ACCEPTORS. ANNUAL (THOUS) USERS (2 OF HARRIED WOMEN) FOOD A- aTRITION INDER OF FOOD PROD. PER CAPITA (1969-71-100) 112.0 96.0 33.0 83.8 91.6 PER CAPITA SUPPLY OF CALORIES C OF REQUIREMENTS) 101.0 89.0 102.0 86.4 98.2 PPOTEINS (CRANS PER DAT) 65.0 17.0 69.0 49.9 56.7 OF WHICH ANIMAL AND PULSE 20.0 19.0 26.0 Ic 18.3 17.0 CHILD (ACES 1-4) DEATH RATE 44.7 35.0 27.0 23.8 16.7 LIFE EXPECT. AT BIRTH (TEARS) 37.2 40.5 4.9 48.4 31.7 INFANT MDRT. RATE (PER THOUS) 178.0 1s8.0 232.0 117.5 102.7 ACCESS TO SAFE WATER (ZPOP) TOTAL 20.0 27.0 /d 21.8 33.6 URBAN 37.0 38-07W 61.5 54.1 RURAL 19.0 26.07r 14.2 27.3 ACCESS TO EXCRETA DISPOSAL (I OF POPULATION) TOTAL 1.0 1.0 Id 32.0 URBAN 10.0 36.07r 69.2 RURAL 3.07W 24.8 POPULATION PER PHYSICIAN 82170.0 56090.0 38790.0 /a 27477.a 11948.3 POP. PER NURSING PERSON 6460.0 f 7020.0 4650.0 7r 3396.2 2248.9 POP. PER HOSPITAL BED TOTAL 2210.0 2220.0 1440.0 /a 1089.0 986.9 URBAN 360.0 420.0 7r 395-2 368.7 RURAL 4230.9) 2020.07r 3096.0 4012.1 ADISSIONS PER HOSPITAL RED 10.4 34.7 l H-U1IS AVERAGE SIZE OF HOUSEHOLD TOTAL URBAN RURAL AVERAGE HO. OF PERSONSIROON TOTAL URBAN RURAL ACCESS TO ELECT. (2 OF DtELLINGS) TOTAL URBAN RURAL . - 25 - ANwTX I PIge 2 of 5 t.. :1 - SOCIAL INDICATORS DATA SHEET N :mR AEFERENCE GROUPS (WEIGHTED AVERAGES) is HUST [MDST RECENT ES"ATI) /b RECENT LOW INCOME AFRICA MIDDLE INCOME 19 197o ESTInATE SOUTH OF SAHARA AFRICA S. OF SAHARA ROUCArtI0 ADJUSTLD ENROLLNENT RATIOS PRIMARY: TOTAL 5.0 14.0 23.0 Is 69.2 91.0 MALE 7.0 18.0 29.07 78.5 90.5 FdMal.F 3.0 9.0 17.07; 57.6 73.6 SECONDARY: TOTAL 0.3 1.0 4.0 /a 13.1 17.4 KALE 1.0 2.0 5.0 17.6 23.7 FEMALE 0.1 1.0 2.0 8.3 14.8 VOCATIONAL (2 OF SECONDARY) L.3 2.7 1.3 /a 7.2 5.3 PUt?L-TEACHER RATIO PRIMARY 43.0 If 39.0 41.0 I 46.1 38.6 SECONDARY 11.0 7T 20.0 28.0 W 25.9 24.3 ADULT LITERACY RATE (2) 0.9 .. 9.8 44.3 35.6 CONSIPrtIo PASSENGER CARS/THOUSAND POP D.3 1.4 2.4 /s 3.8 20.7 RADIO RECEIVERS/THOUSAND POP 3.3 36.2 45.2 41.9 100.8 TV RECELVERS/THOUSAND POP .. ** 0.9 2.0 18.5 NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION 2ER THOUSAND POPULATION 0.3 0.5 0.6 /s 5.4 17.2 CINEMA ANNUAL ATTENDANCE/CAPITA .. 0.2 .. L.4 0.3 LABOR FORCE TOTAL LABOR FORCE (THOUS) 946.0 1276.0 1821.0 FEMALE (PERCENT) 9.0 9.7 10.2 36.) 33.8 AGRICULTURE (PERCENT) 95.0 93.0 91.0 77.4 37.1 INDUSTRY (PERCENT) 1.0 2.0 3.0 9.8 17.4 PARTICIPATION RATE (PERCENT) TOTAL 32.9 31.8 31.0 41.0 36.3 MALE 60.2 58.1 56.4 52.1 47.6 FEMALE 5.9 6.1 6.2 30.2 25.1 ECONOMIC DEPENDENCY RATIO 1.4 1.5 1.6 1.1 1.4 INME DISTREMUTIOR PERCENT OF PRIVATE INCOME RECEIVED BY HIGHEST 5% OF HOUSEHOLDS .. .. .. .. .. HICHEST 20% OF HOUSEHOLDS .. .. . - LOWEST 20X OF HOUSEHOLDS . . LOWEST 401 OF HOUSEHOLDS .. -- POWERTY TACET CROUPS ESTIMATED ABSOLUTE POVERTY INCOME LEVEL (USS PER CAPITA) URBAN .. .. 133.0 Ic 168.3 525.3 RURAL .. .. 63.0 71 90.8 249.0 ESTIMATED RELATIVE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. 133.0 /i 107.7 477.4 RURAL .. .. 53.07c 65.0 186.0 ESTIMATED POP. BELOW ABSOLUTE POVERTY INCOME LEVEL (Z) URBAN .. .. .. 34.7 RURAL .. .. 35.0 /1 65.4 NOT AVAILABLE NOT APPLICABLE NOTES The group averages for eact Indicator are population-weIghted arithmetic means. Coverage of countries among the indicators depends on availability of data and is not uniform. /b Unless otherwise noted, "Data for 1960" refer to any year between 1959 and 1961; "Data for 1970" between 1969 and 1971: and data for "Moat Recent Estimate" between 1980 and 1982. /c 1977; /d 1976: / 1978; /f 1962; 1& 1964: lb 1966; /1 1975. JUNE, 19864 - 25 - ANNEX I ...,,!*1�. а,а1ц 1,•le,rl.. Page 3 of 5 ыиг NвМвМ гь гвгв вм Чви 1rw гигги Мигвllf 1+�М гМ вввl вwМгlиЧw ввг и11Уlв. 11 вМг1е в1и вв виМ еввг гьr и. .и в. 1мвв.вгlивlll ...г•иви •в.мв п rw [м м нмииw NftпЧiw w rwвqtr иМ у ilffмwt вввипи 1л мУ7иг[У 11r гпвв 11r дмв вм. wмвгввИn. игh[ 1в Чвгг1У вМ.гв Л ьрllмв. 1мlивв виw. W виввваиlи ивtвlв и1и мГhмвw btwвв вмггlr. [ы мг.м,.. в..л. .м [ 5+ г1. .� г..пгг в+.w .г ги вw]иг мииq w tn . иwn ««r •1[и w5ви 15[гмг .лrл. [,.... гвм 1ь гвмгn гмр .г ев. wвJпг ввиггв гв.г.л гвг 'в1р [вwи 0[ 1 lвввгlвм' вмв вв+и 1tlЧЧ lвwr /вп11 Уг1и вМ 111Уи 1.гв' 1в еиим в..м. вГ пиувг вк1.-ввlмиl дПмгlмl. 1п гв. г.мw. М.и 1вг. еь п.гуw .м ppl.uw и[/МЛ вrlNrw ьи. м и.в 1м[мw .м м.и «1r вмв и1п1[f ц г� .имгем [. . �.иг ввс в.г. .и гмг [мини. сг.к. ги. .«.гу. л.ммгw вrу гь 1мlгпвгг 1вr.вв и сМ ви1lвМ11гг вГ М1в W и иг п1Гви, wеlи w1 Ь .иг.1..а [. м[виу вммвв .r и. 1мг.г.г [..мгмг. 7вм м..М• .м мр ...н1 1в мw.w г1ь ииr вг w 1мlиг.в п. ги ....м гм м.,ел w в евв....м .,.ь..1 ми�уr5 м п.�ис-и - г...и.1и u.w вг миг •г вгюгмиl в в1 - твевl нггм гм гвввгlвlг. 1.М вмв вwi 1w1W гигвиl 1м0, �пг. м рrв.г�й гм в вN1 в1 всhиl и и/ииlгг tви1. 1 о.М 1м[ гвев. ��уΡ�����1 гвгвlвг[и в1с1М М ьвbг вг lгиипу цг1_�7cirвl - brlиn с1 уг[евlммl вмв вие г.утгll► в иrwмИ :в�м7 вл в�iи г.�.+�ми. и.и[иа лгм. вгиеlиl мгw ие вв� ►и1вNв. rгьм W Уlггив гвмвм вг га 1lв Гв1Мry 1гг0. гМ.Тв15р ид11вГ1N. ` 1г!п w 1и1 в.г.. ��1��� в�.1в1. rYn. мi гwвl - ггМ1lваlw (ап•1, .г�.в. й5i п5г.�. ГLr-La в в мl "Т-вGг ег вwгlсвl ►вМ �д���■ �w1т�� �1 j- т рг иргв ииrги и игиq rrвсг вгlив. нвllввИ 1в рв11е ив ввlии ввммl W вгк1в11иi 1ьвв11и1 w н в-Т1 �вi-�г мгв[л ыМг и гв�вlа Увв М1в [1..Пв7 W1в11 вв11вв1l1впlм мгвм. Nвгlавlс в вгдl[гМввtв рввивмlТ пмгМ �rм. 1•п, .м 1и1 ем.. Ч л 1.re ви г11гв1ди. Осввlмlвввtв вгиlгlу п1и1м11► м[мгвl ввм вм иг lпиNr. в.м1 Mq[tв1в. 15sвлг. мв[.й И.вtгв мг • �M{11Сг�P!1!рΡ� [tи пв ЧгI7в - имвl .виме гвм�вгlм вг г.1.1 ..а[и1 ивг.м мг и•ввмлгц .г.гм вг в гувlгlм lвггг yr в м1ы г�вс�]-иьГfС.с1[в. Мгг•1вн. мгасвl .п .У bдг.- rгlив ввlвгвм. м в. УМ[гв. вtг.1 rвlд дlвг lмввгlвм Ммидпlм вМ впа рвгМмl .1.еггlгfгв) и ь1lуг.ь .1 .11 Nмл[м: иr ивlгвl 1ЧО, вм1М в 11м1М гмМ п ид1и1 Гм1111[и. 1•1q. иМ 1М1 Лпв. lдвlи(ви wг Meltвl г1М - lсгвl гьвввг Ч.ьlиlм и и диеАввгвв гг- .Мгьгввв в..ввw в1 гвв пвlвг в1 ввМ. в а r а1. пст гисс lв вl м. г1 -iввг 11вгвММJ - У в1 1•и 1{ 1и0, 1rt0, вгу [в17 р"Гs �,г.М и.. г г �ив.и�{�г.м. мм в.lv _ tвlвс. .гг.е. .м игг! . .уЧ�в�.ег� г1и� м.1 вг г.г м- п.г1. л.гsм г ..г.1 в.в,вl.гlм5 - в+.и.CfT�.i .Тв вг.�.гг.�.7'1Т� г^....п"� :[у •lиггс Т7� г Г.1Тдг1-и.-! � иг .гип мммвииг вг вп. w амц rи wи. в вигиг и tW.. иг и rs мг ь[мlмм 1в в мг ...пв.[и1 1•и. 1•+о, вМ 5ви авгв. гм мгwвиtд мг вмивипl игв•иь. � • :ав г - • с с..ни пии. Ч иг ваоv - агмг pwe.u., гм1•гим вм и.м м 1wn w рии в•г ии 1л ц п , нм .енг1 им.мlмl [огвг иТг п н мв ввг иа вМ гв.1г ьп.llав иа ил1[lq диlUув. мвввггlл[г. Овв111ув ме1Wв wвв-лввги+f пмгим вМ Nвlмгlи итвигвгв Гвг ьпвllгf гпвв иlгlи в1 е15ги иькеqlм Мгев. илlв ивrlлl 11M1 ввргг.всТ п в[пв игггиtу пг\ анвсг,'в гвг v�.ри �[о S{ $,���1.�y�(q е гвв111 - в ли1 - гвгlгв lwмв lвw1. вМ Гви1в 11/в ввипв.Л всвмlиlу вt [!.1 �ив�СТ-iL�ТвЙ • t1 с у гrггвм r л •млгУ ивм. 7и wrrscn 1м гв.гНlгг ли в1.в Mw Чм ими вг [вев1. .ли. вм г.ггвl М111.р ивгкплll. ...1,. мги,. и г.гnlг.г .гг.Мlвг г. г«.и t.ot вМ л.г гrц ��..,иг в••г•гипи. г.а млгп t• гии виlвиг .в. .Г г1r.. м.. ....г1ми... г ьг[вигг вМ ггггl[1гг г..мг есг в.вlиии иггм«. ..еМ lигииим ы1 }.[.п.�м вп - и. . лии ..._ w и.-гг..и[е ...е.lагт гми г�' -Г' г:г.L� 7с в г.иьг - оги. иг.1. r1. w rr1. .г[.вв иим .а11и у.-q.гlпг гвггll[ет м�lТй . вМвii-:г гмо�"�впигf им[ и r•re.uyr л м.лгиw . .1иlгиииl. г...1м п г....гви,г и«1 гw п[игт .ми1-у. rивиг[м.[ .мду lииив г+11+ги ы н1 глимгга, ..-и. 1л Mrn в вивtвпм. er в[пи г.[. .... . вw Мlиы м агимм 1.уг[. м п1..п .+.мг1и1 гм вм в,и1 г. гь дмгА гвtв. t�. ув в вrм lв в1и гвиtмс. вм сМ ммгг/и r[!► иlмгввl Ч.евгlи ммllиwг вв/ Мгвм 1а0 имwг вгмаw г. 1. r ы Тгв с иlв[lп • немвсм w ем в1wе+ Ми ryу11в вм и.1м м в4л ггь вгГlеиl веlвеl ув. ыи лгв.5. ян1«гм гм .<...[.г[и м г[в юМп1и 1л г[. мг gew.o uM.L- гмвl 1. .r rwи - д..веМ и.вм1 ивмип г5а\. в .г ьгци •г г•rгиlг• и1. в. ивl.гwл. 1м1. мг-�ввв :1 � «-i..n Ч.rгг..и rrlrr/ 1игг.сгlи5 Ммввгl.т Мывлl.в - 1в ггь гмамес Гог иМив{и rrwrtlг ге rвмlввв lмlМ гвиевl. лсвгlвввl, в lмСлвГ leвlвltl lиtмetlNв fп и..ве г1r ггл гbг г.гlвилм-iм1 гвгг111гr "и ивл гАlвлдi гМг мР/1в ввrltг •[ 17 гс l' wм д мв5 иглвМвми гнии вм .rf.r [N п мвиа..ггlи г в ввв f вг+.е «1г7. пr гвигвlи вв.[.rг. в ry.r•.1п/w 1в гвr и ггlв wв мд и вТ в Уsигlивl ммllилг .Г ввспвввг .r1w1 5иг[г.гвмв л1.5.и.. п1л..г• глг.[.гги г гвв rnwlвtiм in нr мг у. вмв 1ве гк fи . 1Миг.и . г вгмми лlги вwм. .......гегь г rвггп[.. г...1и .. ив1п..�м [.иt гси г. _ [мвгвwлгtf м r е.лпим..г иеwм.п lмпгмlив. и.а. 1мп гл..г 1- в 1 - г1.. .М и - ма .a.r..c. . т.11.а и и1.г 5и и.м[м вм..г1 м 1...1в в1.1ьа М м�ьм N г.пмм 1. ев. имг с - ни-.иг г.иигi.., и.. ви ьи...г.. пм в.ггвмl .г гаггивиагу 1и.1.. м.1 в•м1 1гЧ:, 1в7п, вМ 5Ч1 авгв� м+1е 11ггг«: ми (игмгl - L[г.г•гв вь1г. [вв[в ге г..д r иц.1 и г., в.. �. �[....1 i.м - с..и•.гМ .. ,ми г.. ввмг.lг..в[ 1..д в rвге.му. :1'��.Г лг+иггм уМ 1, л.м д а.... м1г: 1•.Т 1в� мА 16.1 Лвгв. м,.�в1.г�.� вгигnи [мггии -[.пllдгм г+-5а мм1. +..ьlвr.и 11Т- тиим[о1 ..м ..г1.- ы'Г+Ти п..а . гг и r•тг.мв...г аа-мг Т�вввwиг мт. irr гlwввм млlbиwl - г...вувг свм м.вгtвг .квг ииlвии5 1ми, wa. «ю nы а.1..и ипь.в . .['�Т и�м.1 .•гlwл иwим.. ь.ми. ид [rиiвгlи г.гигn bu (�.гг - гии! - иw..1 вгw.аи гаги .г гм.[ цh и 11им wиlеlи.г . г,�. . и[.г 1ма-и�г� ь ..в гом7. 11Мав ис.lwл г ггwиМ 1aW - У1 qw Л гмlwи tsr гми гамl.гlи сгsгв лг. (овг ] ..гв.в . алw..[ лиг+ гки .г .rw м г..г. гв Миn wв 1е в.г гввп...в .r д.1м1и1 .вс[rи ,..г�.1.гг... глг г -.Тnм.ь +ntfw.и ммlлг. и м.гтw w м л..в +м игы[гк[н ц rrt. с..м иги и1. г vмгил.влеl - ии.1 п.. ысгв. л.ь�.вг-+.г .1+- и. м гRкгS двг. гг. г.мм мг..п л.г r гау.ивiв в[вм r.г - .. гл1•.�п[и1 5ги. 1в •., иа 1м7 еви. ииггlи .rtгвм игм[ч. l'..д. Ав г�� М1 - с..и.1 Мг1в гвт гwпивМ вг вl.-Мвг �г Уи1им {7вг iMCUM fвwlNtиl - Т вмгlwсв [п \eWrиt lв вwГв1.. ;и1 .мП 1•М, иа гм7 двгв. � Т� 1е иг s� �.�wwT.[Tw5 ис1Ми впtимМ }11 лл7лм ' �+дипlи 4t. - вигвР л.�иг af авуввв с г111 Wг 1л 1w еавв[rlM вМ lв гввм м5иw гв�И[иtlи д вв ввгв и 1в вгlк[. - . nо.�а....г» в..1м [1 cn. у.г[.мигвг.wм .w�игlпг _вwв.виг С1гсс1в�lи .вг гиива Nи[в[1и) - 71гви 1hв влгвр ..м с. ..ив11г ггпгввг вигувв .ва1у 1w 1гм. 1•Ю, иJ г[ваrlвсlи вТ � lвмиl гwгвм .в+ввввв.- Мf1лМ r в NгlNгевl ryвllмсlи двлгм вгlrгllв г. гогбl+г Мrгв1 wм It 1в еаrlмМ 1вп11в Гввмlлв - ив1 Lгвr.всМв1 - Мл+1 вrв.г о[ кс.Осwи а и"dtltl 11 Lв ллвм п 1иrt Теьс [lввв в . лlггл .мг.л1 авсг.и .М.г мг1.w вГ wвеlлwв! ги11г о1мМlwг С1ии МвМ1 \tгввав+и г Gг 1[в г гиг - 4вМ и,[м лwУвг N гТи r1v гм мг. 1вг у .пол. ге нtм-1л еlмw м л[5тггг.�.ле i ' . [г.ггс+[ -г пггlва .м..в1 - rьмлг.и .г rгг1Ч �ви. и[г.. ., лг ..и.-+..г�ч .а .л.. .. rг.в[.7у .. .м... мв.,гв . «. ..е.в ...и.. ьи. �±�п. ги� .+��е•ь...1,в v � . ..•.г.n.�..�.л ц.а�11-.с, .tcw•rь ыг �ег.Т1ё. .г ввг . lгыимо - ив...lг.п• .гг1.. л . [.г[.вw ...r ..н.,г.г.. .иг.. г.. ..ч г. мм..и г,. .гм. вв. в.+ас � гсгм .м.У .пЧ ыг ..пw1у л.илм.. .гвьr.. м ...му wwt«ви .г .и и. мnмиив гл ипмв гмrпи м мг ппг лr.. �м5т1о• иq.nвгс5 1и+. 1ио пе Пв7 Ми. -i'�: Тгг...ы...ь., v.. �л п. ии.-[5-lаог - 1м.. .г иг мв1е. в�.и�и�(г.� �е- гв..1. iвм им и иггмг.а .г гпвl имг г.м.. ...1 v.•ю.мп... ..г .15 гы г.гь„д1и.в. rr,rwгiи ..г1Ми ...а ..r в�г�ем) - 1.тг г. .. [. гп.1ц. г.г..гп. м.г[у .и .. м г. -, .ыМ.г .иг ав,и. г +ии. смс пiмг7 гиа. и.в. n.му в. игг•муе .г [мпгииг еем5 iно. м7о иr iм1 емв . ..._.. . ,. ..1ны .м г г.1, м.1.м. аа. 1лтв.[п [w еме7 - г.мг гоги и.глlла. -ие мгии, w.,игиЛ.r .м . • в.гlМваlАS V[г•.вtв вгадиггlи ef с мtи 1в •lвгtгlгllf. w вг вМ ви п лвмwгва• и игсl lв�вг гем: 1вм. 1гт0 �- ,.5 �,a ...гч- vгм.г.. ггlм и/мгв5 1гн+е�ьl�м, ид 1м1 иr 1и1 ы.. г гиг[ .[и •.v м.5 ь1. м г...[. - nггггlнии . ."[г. и ы..г ..ип.с i. лг лг.ы.г. - tа+нгr rм мгf.lгс г мwг ии. .r rи 1вм г.ги и vp .,.. ..t.•п иг 1ме •вргlгw мllвw в и гwвмН лв свОtгв лг ввгсм[увв вГ • гв1. всlв вп 1w1в гвиlпlм п1 в11 цвс илггfл[в5 • .в11вь1. wN11и .нугlи лии.lг вгд.ггlи. ги в 1.в. 1W5, 1в1л� wa 1вг1 4гв. Т.вл .л МвЧ и 110'в М lгlл[1и rвгвв в,а ....и 1, в в.урltи .в.lWв мlиlггМ. Wв. и11кг1у вМ-ив в в1 [г.в лгвlвtlи. ввд lлцг[1и tгм[. l . « .н+.. .�м [и... г, а1.ггlыrви. ..,.гм- [.. «nre« .и гм...гi.игвl ..., ггг .в�1...r ![ вц5 виМ м/liгсиiу[ы1 ввМв [... лмввl [�гивв�lг 6 М.м �bги - Уггв л rpry[.г1е+.вМ.. 1, ..J „.м вwг ел • .. 1,.11в cwA лвсlвь .мв11.г1ц вл.lгв.ввгвl L.исгвгви. ьм1 и1/вгв, ггв rгь[вв ув инГУlм [tМн. врд 14-гв1. вм ь. 15.г.1у.г1м +t гwг..гмгп-. мl .1[в.1М 1п г.гипг l..г им. . м1а 1-..1. ги1 -ь+, 5нгг .М 1s+n ави. lвсае vlтемтtм _г5г. ...гv1..г о л 5.г.м иг ar5 - ггм.и мг ..г и. моln w�.eu. оТ'iT . кмм еиц 1л мл вм_вlлг - ьиlм и,1гм.[ а �- иfгlг n г+ид Мггавв. ..и1в лг fe.I 1 4[1W и L- 1гв..г 7л v г...г. гитог 10 гвг . вМ гвегиг в. иггвw[ е! w. .11 г.у ггlи . гв.11сМ ьв UЧМ .гаг14 fnr в1в1У виввМlМ. 51+.вw ^+[ г.1 v .1п рг авг в :О.гви и1и1 вМ w1r гм .1п. w! .а. гь 1л ггвr вМг1А Ов вwlиlвггоsвlл. lМв �в.IR�ПТ ТМС Еи�11п впе.w5. . 1..,.г г г.м.. �Г г+.м ег гмвl вмг.т м 17 г.... �гi : Гв�к1r г мrмl+.г..и. о[ в.мгt. им1в. вМ м.tд. ггwиМ ьс sм и гы вгввlа пв tлигвиги .1г\+гиrlМгвl.lв гигlиУви n.e.a�r.nn п..е�sмlт.•iм1r+, lвгп r 1ие дмв. [.г1rм вьпигв в...гг 1к.ь е+л1 lивf -.гь.. .М .г_t - мг лви. о wм[т 1ги ..[ м[ мw . пм.1л ..Му ы Тид и.л вг. м•сгл [лг.� . г игаи t.мвы« мlгл ..t.1и1 иг[«а •гм м1r1. .м .а...�и гг г.г ас.: 1м1+г. агм .М иn спаtп.[и .+wиг. а.л Ни .вс..п+[ w.-г..л г.,.[гwпг. и пм Авг.. вf[оNввlв. ъиа ts. г-• .[г.г гмv.мl - мw[ r.гм иг г■ил�r 1, иеlиги ..lвгtм г...гп 1.гль 5лг.1 Фn г� [г.1 -.rrn rи мм1 - -у.:м.г 1-<5м �мlагм [л м1. и = г.г wr ьи1..�в.ц г йТlкl.в ии лo-.. [...1 в и.-свггд� .игу. в. wв5г. ...л.г5.. л... а..[:.л ...� ur. иг1..: lслп`гi.;л .м 1м ыгв. ии.в.1 iпги..[ ew г ивм ил1 1в евг5м гм гм нг.1 им +1м п�и г г.. чв�. г м u./s 1в + eцtw п_л!7r[м впwlп�м__r[и аьиl..г. в...гг: t.г.и ии7 tигм.г7 -+гы. ТГ Свигlвwг г г1гв, lив .- .r4. мввг ..! ивгв вf 11fв 'r1c1q вЧ� �Гвl - мгс.пг wГ pp.Ic[1м в�iвво[м. • 1•'п wA 5вв]'А уеег. IwfвпггbгlвI![_в5 4гв (рг гhлвибl•- и.wв1 bвtьв в[ 1л[wtв мlвг в.г. - вМ вп г.rгвwв 51л 5. ггМ: 1вМ. 11'л wa 1у1 двtв. вгмев е1 4гв W<.г [в.гг.пс ег .пs.lвг 1е.1 - г.1- иеви- ..[ г г.1 - ви..г ef [rл[в +•+м. сМ гиваf � в7гЪ гwми5.[. м и ввfв гловгвtlw виlии вм 6[в П1.1в1ап и. гг5. [1л.1'и.. ..r.e мrгм. . мги+..г� сгw.г. м.1ли ив виумlи. ыв.г[ь.г иtине .. гмг гм sгм.гги ыммlи. ив[и.. .М 5..� 5м. и1lвгу в/1в1 и г.ги+гУвв пг [авlг мввг[1л рв.1в[[аи. [п в в.в1[г г .гмсриг [всвг.д wвг сМ ЮО и. гги . м... иs r гы.lа.гr .. ыlгs +1см. мм.в1. . .г гм.г• м..•. 1. .м.7 .г.и ..иьи иг.и .ь1д 1yq г[rг [.мi«мм .г ьМ.м лг гг. ии.мlе во п.г е.и г. .г..в . е1.гг.икг.в.е. sмг .r го. as м агм,у г1r гrlг'с ииг иМ.. м. г. г.амг. т.г..с1 (игмпс ег в.в.1п[пл1 - г.г.L .. ..е мгл -- в-Г� мв Ч игr.и д1вр. в[ гвв7г r..r.eelw рввlпlгам. биг.и дlв.вввi вв 1вгиМ . гИ. мllкгlм вМ дlврввl. в1[в аг .lгьиt [мгвие. еГ в.rв ммгв ив ипмсп 4 и г-ьм. вввгив вг t5r r аТ 0!г вг(Чи ид вlвllсг 1п[в1lпl.wв.в 27 - ANNEX I Page W of 5 ECONOMIC INDICATORS MOSS NA71ONAL PRODUCT IN 1993 Annual compound rate of grouth (2, constant 1972 prices) US$ KID. INO-63 GNP AT MARKET PRICES 1319.0 100.0 3.0 -2.0 GROSS DOMESTIC INVESTMENT 257.0 11.3 7.3 - GROSS MA71ONAL SAVINGS 78.3 5.9 - CURRENT ACCOUNT BALANCE -190.11 -14.5 - - EXPORTS OF GOODS, NFS 400.1 30.3 5.0 -15.2 IMPORTS OF GOODS, WS 486.6 37.1 6.1 -15.1 OUTPUT, LABOR FORCE AND PRODUCTIY17Y VALUE ADDED IN 1983 US$ "In. I AGRICULTURE 592.0 42.0 INDUSTRY, MINING 297.0 20.4 SERVICES 530.0 37.6 TOTALJAYERAGE 1409.0 [00.0 GOVERNMENT FINANCE CENTRAL GOVERNMENT CFAF billion I of GDP 19BO 1981 1982 1963 1980 i9ol 19B2 19B3 ----- ----- CURRENT RECEIPTS 72.9 74.6 73.7 68.9 16.2 16.1 14.4 12.0 CURRENT EXPENDITURES 65.6 68.4 75.0 76.2 16.4 14.7 14.7 14.2 CURRENT SURPLUS 7.3 6.4 -1.3 -7.3 1.8 1.4 -0.3 -1.4 CAPITAL EXPENDITURES 77.9 110.4 91.4 06.9 19.5 23.0 17.9 16.2 OVERALL BALANCE -70.6 -104.0 -941.7 -94.1 17.6 -22.4 -10.1 -17.5 RONEY. CREDIT AND PRICES 19BO 1981 19B2 19B3 (Billion CFRF Outstanding End Period) MONEY AND PURSI-NONEY 77.9 94.0 P3.0 80.1 BANK CREDIT TO PUBLIC SECTOR -7.5 -3.0 16.3 20.7 BANK CREDIT TO PRIVATE SECTOR 89.8 102.0 110.4 113.4 (Percentages or Index Numbersl MONEY AND QUASI-RONEY (I GOP) 19.4 20.2 16.2 14.9 IMPLICIT GOP DEFLATOR 11910=100) 100.0 110.0 121.2 IJO.9 Annual Percentage Changes in: SDF DEFLATOR 10.0 10.0 10.2 6.0 BANK CREDIT TO PUBLIC SECTOR - - - 217.0 BANK CREDIT TO PRIVATE SECTOR 17.6 13.6 11.7 2.7 ------------------------------------------------------------------------------------------------------------------------------------------- DATE: 1,70;35 -28 - ANNEX I TRADE PAYMENTS AND CAPITAL FLOUS Page 5 of 5 BALANCE OF PAYMENTS MERCHANDISE EXPORIS (Average 1981-83) 1981 1982 1993 -- ---- USS MN. Million US$ EXPORTS OF GOODS & NFS 538.8 417.5 400.1 LIVESTOCK PRODUCTS 56.6 14.7 IMPORTS OF GOODS & NFS 596.9 611.0 411.B URANIUM 297.4 77.2 RESOU&CE GAP -58.1 -196.5 -BB.7 OTHER GOODS 31.0 9.1 NET FACTOi' INCOME -91.3 -90.4 -67.2 TOTAL 305.0 100.0 of mhich: MLT int. payments 65.9 71.9 52.9 NET TRANSFERS -43.0 -36.5 -34.9 BALANCE ON CURRENT ACCOUNT -409.0 -320.4 -190.8 EXTERNAL DEBT (DECEMBER 31, 19031 OFFICIAL GRANT AID 147.2 144.5 119.4 US$ "n. NET OFFICIAL HLT 8ORRuING 292.9 46.3 75.1 PUBLIC DEBT, INCL. UNDISBURSED 603.4 Disbursements 376.0 195.0 159.6 NONGUARANTEED PRIVATE DEBT 120.7 Amortization B3.1 148.7 93.5 TOTAL OUTSTANDING & DISBURSED 724.1 NET CREDIT FROM THE IMF - - 32.3 OTHER CAPITAL (NET) - - 8.9 CHANGE IN RESERVES (increase -2 -36.9 129.6 -44.9 - DEBT SERVICE RATIO FOR 1983 36.8 RATE OF EXCHANGE PUBLIC DEBT, INCL. GUARANTEED 15.7 USS 1.00 = CFAF 271.7 320.6 381.1 IDA/IBRD LENDING, AUGUST 17, 1984 USS "In. OUTSTANDING & DISBURSED 102.5 UNDISBURSED 106.0 TOTAL 210.5 DATE: 130/85 - 29 - ANNEX II Page 1 of 2 REPUBLIC OF NIGER IRRIGATION REHABILITATION PROJECT STATUS OF BANK GROUP OPERATIONF IN NIGER A. STATEMENT OF IDA CREDITS (as of March 31, 1985) Borrower: Republic of Niger US$ Million Credit Fiscal Amount (less cancellation) c/ Number Year Purpose IDA a/ b/ Undisbursed Fourteen credits fully disbursed 79.0 - 885 1979 Livestock 12.0 4.6 886 1979 Feeder Roads 10.0 2.0 967 1980 Dosso Agr. Dvt. 20.0 17.7 1026 1980 Second Maradi Rural Dvt. 16.7 10.9 1151 1981 Education 21.5 7.9 1225 1982 Industrial Development 16.0 9.5 1226 1982 Second Forestry 10.1 6.7 1309 1983 Water Supply 6.5 4.9 1394 1983 Fourth Highway 23.6 13.1 1493 1984 Economic & Financial 11.7 10.3 Management Improvement 1511 1985 Power Eng. and T.A. 7.5 7.1 Total 234.6 94.7 of which has bjen repaid (3.3) Total now outstanding and held by IDA 231.3 Total undisbursed 94.7 S a/ Prior to exchange adjustments. b/ Computed at the rate of the approval dates. c/ Computed at the March 31, 1985, rate of US$0.991273=1 SDR. - 30 - ANNEX II Page 2 of 2 B. STATEMENT OF IFC INVESTMENT AS OF MARCH 31, 1985 Loan Amount Number Year Borrower Purpose of Loan Equity Undisbursed -(US$ Million) 619-NIR 1982 Les Moulins Flourmill 2.22 0.33 0.32 du Sahel S.A. (MDS) Bank Group Operations/NIG3 - 31 - ANNEX III Page 1 of 2 NIGER IRRIGATION REHABILITATION PROJECT Supplementary Project Data Sheet Section I Timetable of Key Elements (a) Time taken to prepare the project: two years. (b) Project prepared by: SOGREAH/Louis Berger and Helios. (c) Departure of Appraisal mission: December 1983. (d) Completion of negotiations: May 23, 1985. (e) Planned date of effectiveness: October 1985. Section II Special IDA Implementation Actions None. Section III Special Conditions (a) Farmers would be given the option of selling to RINI or to the private sector any surplus of marketable paddy above what they owe to their cooperatives (para 44); (b) ONAHA would not start rehabilitation works on a given peri- meter until it has concluded a contract, satisfactory to IDA, with the cooperative concerned and this cooperative has approved internal statutes that are consistent with the model satisfactory to IDA (para 52); (c) ONAHA would set up a unit for coordination, monitoring, evaluation, financial planning, budgeting and budgetary control not later than December 31, 1985, and would appoint personnel with qualifications and experience satisfactory to IDA to staff the unit (para 57); (d) ONAHA would put order in its accounts by September 30, 1986, the date by which these accounts must be certifiable by independent auditors (para 57); (e) Cooperatives would be required to charge an interest rate not less than 12% on the seasonal credits they extend to their members (para 70); (f) All medium-term credits would be managed by cooperatives, with technical assistance provided by ONAHA. Farmers would make a minimum 10% down-payment and repay the rest to the cooperatives at an annual interest rate of 12% over a period - 32 - ANNE III Page 2 of 2 of a maximum of five years. Cooperatives would in turn repay Government at an annual interest rate of 1.0% over a period of a maximum of eight years (para 70); (g) Cooperatives would bear the full cost of operation and maintenance of irrigation infrastructure, including provisions for the renewal of pumping equipment (para 73); and (h) Government would provide adequate financing for ONAEA's overhead expenditures for services performed on Government's behalf, which are not covered by external sources. This financing would be transferred to ONAHA on a quarterly basis at the beginning of each quarter (para 73). - 33 - ANNEX IV Amounts and Methods of Procurement (US$ million) Procurement Method Total Project Items to Be Procured ICB LCB Other N.A. Cost Earthworks, structures, buildings 1.2 0.4 3.5 a/ b/ 5.1 and forestry plantations (1.2) (0.1) (1.6) - (2.9) Pumping stations - - 1.6 b/ - 1.6 Electric power lines - - 0.7 c/ 0.7 Construction equipment/vehicles 1.2 - 1.3 0.6 d/ 3.1 (1.2) (1.2) Agricultural equipment 0.6 0.4 1.9 b/ 2.9 (0.3) (0.1) (0.4) Local staff, training, operating - 0.5 - 4.0 4.5 costs and misc. equipment (0.2) (1.7) (1.9) Expatriate staff, consultants, - - 4.5 e/ 4.5 audits and studies (1.4) (1.4) Revolving funds for cooperatives - - - 1.6 1.6 and RINI (0.5) (0.5) Project preparation facilities - - 1.2 - 1.2 (1.0) (1.0) Total 3.0 1.3 14.7 6.2 25.2 (2.7) (0.4) (4.0) (2.2) (9.3) a/ Construction by force account. b/ Parallel-financing by CCCE and procured through procedures accept- able to them. c/ Financing by KfW and procured through procedures acceptable to them. d/ Depreciated replacement value and reconditioning cost of the Namarigoungou equipment. e/ Expatriate staff, of which IDA finances Chief of Monitoring and Evaluation, ONAHA (36 man-months) and Head of Financial Planning, Budgeting and Budgetary Control Unit, ONAHA (36 man-months), CCCE finances Chief Engineer (21 man-months) and Works Supervisor (21 man-months), both for force account works, Rice Processing expert, RINI (24 man-months) and Administrative and Financial Director, ONARA (36 man-months), and KfW finances Administrative and Financing Manager for force account works (24 man-months) and Agriculturalist/Rice Expert (36 man-months). f/ Including the preparation studies financed by CCCE. 므