Malawi - National Agricultural Research Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 5295-MAI STAFF APPRAISAL REPORT MALAWI NATIONAL AGRICULTURAL RESEARCH PROJECT January 24, 1985 Eastern Africa Projects Southern Agriculture This document has a restricted distribution and may be used by recipients only in the performance of their officWil duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Malawian Kwacha (MK) US$1.00 = M4K1.33 MK1.00 = US$0.75 SDR1.00 = WEIGHTS AND MEASURES 1 meter (m) = 3.28 feet {f) I kilometer (km) = 0.62 miles I square kilometer (km2) = 0.39 square miles I hectare (ha) = 2.47 acres 1 metric ton (ton) = 2,204 lb GOVERNMENT FISCAL YEAR April 1 - March 31  FOR OMCIAL USE ONLY PRINCIPAL ABBREVIATIONS AND ACRONYHS ADD - Agricultural Development Division ADMARC - Agricultural Development and Marketing Corporation ARC - Agricultural Research Council ART - Adaptive Research Team C&O - Chief Agricultural Officer (Extension) CARO - Chief Agricultural Research Officer CAS - Controller of Agricultural Services CDA - Cooperation for Development of Africa CGIAR - Consultative Group on International Agricultural Research CIAT - Centro Internacional de Agricultura Tropical CIDMMT - Centro Internacional de Maiz y Trigo CIP - Centro Internacional de la Papa CRSP - Collaborative Research Support Program (USAID) CRT - Commodity Research Team CTL - Commodity Team Leader DAR - Department of Agricultural Research DOA - Department of Agriculture EPA - Extension Planning Area GOM - Government of Malawi IARCs - International Agricultural Research Centers ICIPE - International Center for Insect Physiology and Ecology ICRAF - International Council for Research in Agroforestry ICRISAT - International Crops Research Institute for the Semi-Arid Tropics 1ITA - International Institute of Tropical Agriculture ILCA - International Livestock Center for Africa ISNAR - International Service for National Agricultural Research MFNR - Ministry of Forestry and Natural Resources MOA - Ministry of Agriculture NRC - National Reseerch Coordinator NRDP - National Rural Development Program ODA - Overseas Development Administration (UK) OPC - Office of President and Cabinet PO - Professional Officer PSC - Public Service Commission RDP - Rural Development Project RMEA - Regional Mission in Eastern Africa (IDA) RRI - Regional Research Institute SADCC - Southern African Development Coordination Conference SAL - Structural Adjustment Loan SMS - Subject Matter Specialist (Extension) SUCOMA - Sugar Corporation of Malawi T&V - Training and Visit System TA - Technical Assistant TDRI - Tropical Development and Research Institute TO - Tcchnical Officer TRA - Toibacco Research Authority TRF - Tea Research Foundation UNDP - United National Development Program USAID - Ur.ited States Agency for International Development Thisdocurnent ha a estrictd distiution and may be uwdby dpients onlyin theperfonnaineof tek ofrfe duduXIts cDntents maynot otherwise be discbsed without Wodd Bank authorintion.  MALAWI NATIONAL AGRICULTURAL RESEARCH PROJECT Table of Contents Page No. I. BACKGROUND A. Introduction and Economic Setting ..................... 1 B. The Agriculture Sector ........................... . 1 C. Government Financing of Agriculture .................... 3 D. Agricultural Development Strategy ......... .............. 4 E. The Project ........................................... 5 II. THE DEPARTMENT OF AGRICULTURAL RESEARCH A. Background .......... 5 B. Organizational Structure .............................. 6 C. Management ..................... ............... 6 D. Present Staffing ....... ............ ......... . ....... .. 7 E. Commodity Research ...................... 9 F. Technical Services ............o.................. *. ... 10 G. Research-Extension Linkages and Farming Systems Research ................ ....... 11 H. Linkages with International and Regional Research .................. ............ 12 I. Reports and Publications .............................. 12 J. Recurrent and Capital Budget ....................... ... 12 III. THE PROJECT A. Sector Strategy and Project Rationale ................. 13 B. Project Objectives and Summary Description ............ 14 C. Detailed Features ....... ........... .. . .......... ... 15 D. Project Cost Estimates and Financing .................. 28 E. Government Cash Flow ....... ........................... 31 This report is based on the findings of an appraisal mission comprising Mr. Andrew Spurling, Ms. Kreszentia Duer, Mr. John Coulter (IDA), and Mr. Peter Ahn (Consultant). The mission visited Malawi in February/March and June/July, 1984.  - li - IV. PROJECT IMPLEMENTATION A. Organization and Management ........................... 31 B. DAR Physical Consolidation and Improvement .............. 33 C. Systems Improvements .... 34 D. Technical Assistance and Training ....... .............. 36 E. Linkages with the Extension System .................... 38 F. Implementation Schedule ............................... 39 G. Procurement ........* ................. ...... 39 H. Disbursement .........................memm. 9.066.eme 41 I. Accounts and Audits ..... ....... 42 J. Supervision and Reviews ............ ................... 42 V. BENEFITS, JUSTIFICATION AND RISKS ......................see 43 VI. AGREEMENTSAND RECOMMENDATIONS ............................. . 47 LIST OF TABLES IN THE MAIN REPORT Table 2.1 - DAR Staff Establishment Table 3.1 - Consolidation of Research Infrastructure Table 3.2 - Project Cost Summary Table 3.3 - Project Financing Plan ANNEXES I. Selected Charts and Tables C-1 - Key Indicators of Implementation C-2 - Project Implementation Schedule C-3 - Current Organization of the Ministry of Agriculture C-4 - Structure of the Department of Agricultural Research (Pre-Project Appraisal) C-5 - Proposed Reorganization of the Department of Agricultural Research C-6 - Department of Agricultural Research Proposed Chain of Command C-7 - Proposed Distribution of Research and Services Management, by Main Station Table T-1 - Key Staffing Schedule Table T-2 - Training Schedule. Table T-3 - Technical Assistance. II. Cost and Financing Tables Table T-4 - Project Component Costs by Year (Base Costs). Table T-5 - Project Component Costs by Year (Including Contingencies). Table T-6 - Summary Account Costs by Project Component (Base Costs).  - iii - Cost and Financing Tables (cont'd) Table T-7 - Summary Account Costs by Year (Base Costs). Table T-8 - Summary Account Costs by Year (Including Contingencies). Table T-9 - Transfer of Operating Costs of New Activities. Table T-10- Government Cash Flow Projection. Table T-11- Schedule of Disbursement. Table T-12- DAR Administrative Costs. Table T-13- Implementation Costs of Research Programs. Table T-14- Implementation Costs of Technical Services. Table T-15- Facilities Overheads Costs. Table T-16- Advance for Preparation of National Agricultural Research Project. III. DAR Annual Planning and Review Exercise IV. Selected Documents Available in the Project File, DOC #109.606 HAP IBRD - 18287 - Agricultural Research Station Network.  MALAWI NATIONAL AGRICULTURAL RESEARCH PROJECT I. BACKGROUND A. Introduction and Economic Setting 1.01 Malawi, a land-locked country, has a total land area of approxi- mately 94,300 km2 of which approximately 36,200 km2 are generally defined as arable. Malawi has had one of the better economic performance records in the region; real GDP grew at an average rate of 5.5% per annum between 1967 and 1979, declining to 0.4% in 1980 and -0.8% in 1981, but recovering to 3.0% in 1982. The economy remains heavily dependent upon the export of three agricultural commodities (tobacco, sugar and tea) although Malawi has produced considerable surpluses of maize, its primary foodcrop, over the past two crop seasons (1982/83 and 1983/84). 1.02 Agriculture is the most important sector of the economy providing 40% of the GDP (down from 50% in the early 1970s), 85% to 90% of foreign exchange earnings and employing about 85% of the labor force. In 1983, the smallbolder sub-sector provided 78% of the agricultural GDP. 1.03 Since 1978/79, the country's fiscal position has deteriorated. Government deficits, rarely exceeding 9X of GDP before then, now average over 15% of GDP. Increased borrowing has accompanied the deficits and inflationary pressures have mounted. 1.04 An improvement in the future performance of the economy will be heavily dependent upon both the ability of the Government to restore traditional, and develop alternative low cost transport routes to the sea and the capacity of the farming community to intensify and diversify its agricultural production. In many areas, little arable land remains uncultivated and thus productivity of both food and cash crops will have to be greatly improved. This will be dependent upon both the development and use of appropriate technology and the timely availability of an adequate supply of agricultural inputs. B. The Agricultural Sector 1.05 Structure. Agricultural production derives from two sub-sectors, smallholders farming on customary land and estates farming on leasehold land (principally under private management). Over 70% of Malawi's total land area is farmed by smallholders on customary land and about 5% by estates. The estate sub-sector has fairly good research facilities (paras. 2.01 and 2.14) and has been a major earner of foreign exchange with exports of tobacco, sugar, tea, tung oil, coffee and macadamia nuts. 1.06 Climate, soils and land capability. Relatively fertile soils, fairly reliable rainfall and a widely ranging relief enables the production of a broad variety of food and cash crops. Many different crops have been grown either on an experimental or commercial scale. Nearly 90% of the arable land is cultivated.  1.07 Performance. Recent statistics indicate that annual real growth in smallholder and estate agriculture, measured in terms of agricultural GDP, averaged at least 4.3% and 2.9% respectively between 1980 and 1984. In the smallholder subsector, maize production exhibited the most rapid growth, largely at the expense of groundnuts, cotton, and fire and sun-air cured tobacco. Estate production of all the major commodities increased markedly between 1972 and 1982: annual growth rates for flue-rured tobacco, burley tobacco, tea and sugar were 10, 17, 6 and 18% respectively over the last decade. However, international price factors and high transport costs had a depressing effect on GDP for the estate sector. Productivity of the smallholder subsector is well below its potential. Better performance has been constrained by (a) poor price incentives until 1984; (h) the absence of appropriate technology for many smallholders; (c) the transfer of labor and cultivable land to the estate subsector; (d) limitation by Government regulation of smallholder participation in the production of selected high value agricultural export crops; (e) untimely and limited availability of fertilizer, which is being alleviated by the IFAD and IDA cofinanced Malawi Fertilizer Project (Credit 1352-MAI); and (f) the unavailability of locality-specific extension messages. 1.08 Agricultural Services. (a) Agricultural Extension. Crop and animal health extension services are provided to the smallholder sub-sector by the Ministry of Agriculture's (MOA) Department of Agriculture (DOA). Although under consideration, the Government does not yet provide extension services to the estate sub-sector; however, tobacco and tea estates do receive advice from their respective private research authorities. In 1980, the Government extension service was decentralized into eight Agricultural Development Divisions (ADDs) with Subject Matter Specialists at ADD level. Each ADD has crop, livestock and land husbandry, credit and marketing, womens' programs and visual aids divisions. Geographically, the ADDs are divided into a total of 40 Rural Development Projects (RDPs), which in turn, are divided into 180 Extension Planning Areas (EPAs) based on a compromise of ecological zones with administrative boundaries. Each extension field assistant, who provides the technical messages to farmers, concentrates on a section or "block" of an EPA, composed of several villages. The extension service uses a modified Training and Visit (T&V) system. Subject Matter Specialists based at ADD level provide advice directly to the extension field assistants within the various EPAs on what messages to deliver and how to deliver them. The extension messages themselves are provided primarily by research staff of the Department of Agricultural Research (DAR), while DOA's Extension Aids Branch edits and publishes tite extension materials. Recent performance of the sub-sector, partially attributable to poor price incentives, also indicates that the extension service has not provided enough stimulus to agricultural development. The quality of the extension services is variable across the ADDs; further, they have not been provided with sufficiently up-to-date and appropriate extension advice by research (See paras. 2.01 - 2.30 for Agricultural Research.). 1.09 (b) Agricultural Marketing and Input Supply is provided largely through the Agricultural Development and Marketing Corporation (ADMARC), a statutory company established to purchase smalLholder crops (food and non-food), sell food crops and sell and deliver crop production inputs (seed, fertilizer, agricultural chemicals and farm implements). ADMARC is  -3- a monopoly only with regard to sun-air and fire-cured smallholder tobacco and smallholder cotton. Until 1980, authorized prices permitted ADMARC to sustain a healthy financial situation. In 1980-81, higher transport costs, poor crop handling and higher costs of borrowing for large investments resulted in some financial deterioration; however, by 1981-82, ADMARC was again realizing profits on some of its crops (particularly non-food) and had fully recovered by 1982-83. ADMARC is one of the more effective crop handling parastatals in Eastern Africa. Fertilizers for the estate sub-sector are principally procured by Optichem, a locally incorporated company, and other agro-chemicals are marketed by various commercial firms. Estate produce is marketed almost entirely through the private sector. The National Seed Company of Malawi produces a wide range of agricultural seeds for both the smallholders and estates. 1.10 (c) Credit Services. A variety of agricultural credit channels exist in Malawi. The estate sub-sector obtains credit, which is primarily seasonal financing, from the two commercial banks. Smallholders have access to seasonal and medium-tern credit through MOA's rural development projects, which have their own credit funds and credit staff. 1.11 Smallholder Production. Smallholders, who account for nearly 80% of agricultural production, grow a wide range of crops of which the most important are maize, groundnuts, fire-cured tobacco, cotton, beans, cassava, rice, sorghum, and millet. Over the past few years, smallholder agriculture has been characterized by a steady swing into maize from a more diversified cropping pattern. Recently, considerable maize surpluses over self-sufficiency have enabled regional export. C. Government Financing of Agriculture 1.12 In 1983/84, the Government budgeted MK25.32 m, or about 12.7% of its total recurrent budget (excluding statutory expenditure) for the agricultural and natural resources sector. Agriculture received the second largest allocation in the recurrent budget after education (17%). Of the total amount budgeted on the recurrent account for agriculture, agricul- tural extension, agricultural research, veterinary services, fisheries and forestry received 48.8%, 12.7%, 16.7%, 3.3% and 15.3%, respectively. The remaining portion (3.2%) was allocated for the central administration of MOA. In the same year, Government budgeted K46.10 m, or about 30% of its total development budget, for agriculture and natural resources. 1.13 The agricultural GDP in 1983 was MK652 m in current prices, while both the private and governmental '-vestment in the sector totalled MK71.42 m, or 112 of the agricultural GDP. Investment in agricultural research in the same year was 0.67% of agricultural GDP, a level of investment that appears to have remained relatively constant over the last four years. This level of expenditure on agricultural research is far too low considering the importance of agriculture to Malawi's GDP (para. 1.02). Nevertheless, present fiscal constraints can be expected to prevent any substantial immediate increase in this investment in the immediate term. It is therefore imperative that the most efficient use is made of available resources (paras. 3.44, 3.47).  - 4 - D. Agricultural Development Strategy and IDA Assistance 1.14 The Government is attempting to provide a growth climate for both smallholder and estate production in order to support its overall strategy of maintenance of self-sufficiency in food staples with expansion of agricultural exports and imprnvement in rural incomes. Since the end of the 1970s the Government's National Rural Development Program (NRDP) has provided an extensive level of services to the smallholder subsector. NRDP was designed to increase smallholder productivity through the provision of agricultural inputs and farm services and to increase the scope and efficiency of extension, marketing and credit services. Cultivation of new land is discouraged and emphasis placed on increasing the productivity of areas already cultivated. Attention is given to soil conservation, watershed management and afforestation. The growth of village-run Farm Clubs throughout the NRDP areas has facilitated the delivery of extension and training to farmers and has enabled the effective delivery and recovery of farm credit. The importance of women to agriculture in Malawi has been recognized in the specific women's extension programs provided under the NRDP; the expansion of such programs has assisted women with both homecraft and agriculture. By 1984, 80% of the smallholder subsector was under the NRDP. 1.15 Prior to the establishment of the NRDP, IDA helped finance three of the four large integrated agricultural programs located in Lilongwe, Karonga and in the Shire Valley (Credits 550-MAI, 114-MAI, 363-MAI). Implementation of these programs was generally good and the projects were popular with farmers although crop production increases were often lower than originally forecast. Since 1978, IDA has assisted the Government with the development of the NRDP in the Lilongwe, Dedza, Thiwi-Lifidzi and Ntcheu a.eas (Credits 857-HAI, 1343-MAI, 857-MAI), Mzuzu and Mzimba (Credit 857-MAI) and Karonga and Chitipa (Credit 1183-MAI). dowever, average crop yields from the NRDP areas have remained disappointing. The 1981 Review of the NRDP highlighted the need for intensification of effort into the development of acceptable crop technical packages which could be integrated into an improved overall farming sytem. The proposed research project would assist in this effort. The Government is now also attempting to redress the recent shift of smallholder agriculture into monocropping of maize through better price incentives, support for problemroriented applied and adaptive research programs, improved input delivery and through the supply of better technical support for the extension service. IDA is assisting Government with this program through various credits, including a fertilizer project (cofinanced with IFAD), the proposed research pr^ject, a proposed Agricultural Extension and Planning Support Project credit (para. 3.01) and through a recent sector study on Agricultural Diversification. 1.16 Agriculture has been a major focus of both of IDA's Structural Adjustment Lending Operations in Malawi (SAL 1, Credit 2026-MAI, and SAL II, Credit 1427-MAI). The major policy improvements under SAL I were to introduce greater incentives for smallholders through increased producer prices and to ensure a greater allocation of budgetary resources to the Ministry of Agriculture. A consensus was reached with GOM on the import- tance of prices to smallholder production; a methodology was developed and applied which set prices attractive to smallholders; and prices are being monitored on this basis. These measures have reversed the past real  -5- decline in prices of smallholder crops. As a result, In 1984, smallholder production of cotton and tobacco increased for the first time in nearly a decade. Agreement was also reached to Increase budgetary allocations to agriculture, education, and road maintenance. The allocations to these sectors are reviewed annually by IDA. Agricultural research was noted under SAL I as one of the subsectors most in need of increased Government resources. SAL II has stimulated improvements in the organization and staffing of ADMARC and rationalization of its assets. E. The Prolect 1.17 The proposed project, which would be the first phase of a 10 to 15 year program to restructure and improve Malawi's agricultural research system, was identified following the 1981 NRDP review which concluded that a strengthening and reorientation of agricultural research was essential for increased agricultural production. Following an overview of Malawi's agricultural research system carried out in April 1982 by the International Service for National Agricultural Research (ISNAR), the proposed project was prepared by the Department of Agricultural Research of the Ministry of Agriculture. The World Bank's Regional Mission in Eastern Africa (RMEA) undertook regular reviews during the preparation process. DAR were assisted in the final stages of project preparation by consultants; the final preparation documents were issued and submitted to IDA, and the USAID In September 1983, for consideration of possible cofinancing. Following review of the final documents by an IDA mission in December 1983, with USAID representation in attendance, DAR collated further data; the project was appraised by an IDA mission In March 1984 with USAID participation at selected meetings. The project comprises a comprehensive institutional development program for smallholder agricultural research in Malawi. II. THE DEPARTMENT OF AGRICULTURAL RESEARCH A. Background and Context 2.01 Agricultural research in Malawi Is conducted not only by the DAR in MOA, but also by the University of Malawi in its Faculty of Agriculture (at Bunda College), the Tea Research Foundation (TRF), and the Tobacco Research Authority (TRA). Limited research on sugar cane is conducted by the two commercial estates. The DAR has national responsibility for research on all commodities with the exception of tobacco, tea and sugar. It Is also responsible for the production of breeders' seed of agricultural crops; for the propagatlon and distrLbution of selected cultivars of fruit and nut trees; the provision of plant quarantine, produce inspection and plant protection services; soil survey and analytical services; and seed inspection and testing services. Both the Tea Research Foundation and the Tobacco Research Authority are funded from their respective industries. The University of Malawi in the Ministry of Education receives small grants in addition to its core funds for small programs of specific agricultural research. 2.02 DAR has contributed substantially to Malawi's agricultural success through technical improvements for its many subsistence and cash crops and through evaluation of a very wide range of crops in varied ecological sites. Specialist agricultural services have, inter alia,  - 6 - provided advice on pest and disease control and fertilizer use. The breeding and multiplication of high yielding hybrid and composite maize varieties has greatly increased potential productivity of Malawi's major food crop. Research on cotton to select varieties for high yields and pest and disease resistance has been supported by an effective system of bulk distribution of improved seed. Formulation of an effective pest scouting and control program has been developed by research. The confectionery groundnut preferred by the trade, Chalimbana, was developed by research; pest and disease control is continuously evaluated. DAR has selected the high yielding rice varieties now grown for export; water use and pest and disease control programs developed by DAR have improved rice husbandry. Horticultural research has resulted in the early and rapid establishment of macadamia nuts as an export crop and has provided production handbooks for both fruit and vegetables. Past research successes have thus established a strong base from which future research can be extended, and the quality of work carried out demonstrates Malawi's capacity for high quality research in the future. 2.03 Up to the mid-1970s, information about improved technology was made available to the farming community reasonably regularly. A wide range of district trials were conducted and annual reports published regularly. However, s!nce the mid-1970s DAR's management has deteriorated, and the continuity and coverage of trials has suffered during staff absences for training (para. 2.04). Recently, the district trials program has also deteriorated. DAR has not adapted new technologies to varying local conditions. The extension and adoption of much of the improved technology is also disappointing. Improved linkages between research and extension, including the development of adaptive research teams, is desirable. Coordination of research programs is currently weak and much of the recent research work is still to be analyzed, summarized and written up for extension and the farming community. B. Organizational Structure 2.04 DAR's Chief Agricultural Research Officer (CARO) is responsible to the Principal Secretary, MOA through the Controller of Agricultural Services (CAS) for agricultural research (Chart C-3). DAR research has been conducted at eleven major research stations, nine sub-stations and at about 220 district trial sites (Map IBRD 18287). Research stations are directed by senior research officers who are directly responsible to the CARO (Chart C-4), and who have control over the allocation of station resources and other activities conducted on their stations. Investments have not always reflected national or farmers' priorities and increasing expenditure on overheads and non-research work has greatly exceeded that invested in research (para 2.30). The only formal linkage with the extension service, headed by the Chief Agricultural Officer, has been through the CAS. C. Management 2.05 Effective management in DAR has been prejudiced by lack of staff continuity at both headquarters and on the research stations and by inad - quate support staff. Experienced Malawian research scientists are now returning from overseas postgraduate training in increasing numbers,  - 7 - enabling the establishment of both greater continuity and technical depth in the senior posts. Planning and coordination of research programs still need improvement; the delegation of considerable authority to station officers-in-charge to plan their research programs has led to duplication of effort and cost-ineffective allocation of expenditure. D. Present Staffing Staff Profile 2.06 As of July 1, 1984, the DAR had a total establishment of 491 technical and professional posts, of which 412 (84%) were filled. Present staffing, comprised of 85 (21%) professional and 327 (79%) non- professionals, is summarized in Table 2.1. Table 2.1: DAR Staff Establishment Staff ranks and responsibilities Establishment Filled Posts No. % No. Z I. Superscale Officers ranking professional officers at higher salary levels; 33 (7) 21 (5) primarily research station and department managers. II. Professional Officers (PO) B.Sc. or advanced degrees; researchers without rank. 68 (14) 64 (15) III. Technical Officers (TO) Agriculture diploma graduates; field staff who lay-out and monitor trials, laboratory technicians, research station 114 (23) 89 (22) farm managers. IV. Technical Assistants (TA) Agriculture certificate recipients; field assistants; 276 (56) 238 (58) Total 491 (100) 412 (100) 2.07 Of DAR's 85 professional research officers, only 21 now have advanced degrees (4 PhDs and 17 MScs) while 27 are engaged in advanced degree training overseas financed by USAID and ODA (13 PhDs and 14 MScs).  Even with this large training program, only 48 (56%) of DAR's professional research staff will be advanced degree recipients or candidates by the commencrment of the proposed project. DAR's sup3rscale vacancies are being held for those who are returning from advanced degree training and who are expected to contribute significantly to agricultural research. Staff Recruitment, Evaluation and Promotion 2.08 DAR recruits its professional and technical staff from Bunda College of Agriculture and the Natural Resources College. Professional staff have BSc degrees, Technical Officers have a three-year diploma and Technical Assistants a tw--year Certificate in Agriculture. DAR has not been aggressive in its recruitment and has not held career days at colleges or instituted summer intern programs, as have private enterprises. DAR has had less difficulty in filling openings for professional and technical staff than in attracting the highest quality of recruits. 2.09 Prior to the preparation of the proposed project DAR had no job descriptions for its staff, and thus criteria for the assessment of potential recruits for promotions were not clear. Currently, mnn gers prepare annual confidential assessments of their staff using standard evaluation forms which are finally transmitted to the Public Service Commission (PSC) for review. The evaluation format is fairly compre- hensive, but it lacks both an adequate assessment of quality of output and a system of feedback to the staff on their performance. The evaluation process has not been used in the assessment of staff training needs. Recommendations for promotion form part of the annual evaluation, although until recently promotion of both DAR professional and technical staff was by examination in which administrative procedure was a major component. Since 1983, PSC has ruled that promotion of civil servants should be by interview on issues related to their field of competence. Promotion to superscale posts has become the only method for government to remunerate staff for outstanding performance and is dependent upon the existence of a suitable vacancy. In DAR, the promotional ladder is constrained by the small number of lower level superscale posts. It is important that the allocation of posts be adjusted to conform to a more pyramidal structure. Promotion should not be dependent upon the movement into research station management; and to date this has imposed a considerable strain on the small pool of experienced scientists. DAR Staff Training 2.10 DAR's researchers generally have had little operational experience outside of the Department. To compensate, DAR in-service training has included advanced degree programs abroad and short courses delivered by the International Agricultural Research Centers (IARCs) and other overseas research institutions. CIP and CIMMYT have also conducted workshops in Malawi. Training at the IARCs provides valuable international contacts and exchanges of information, but careful selection is essential to ensure maximum value. The Department is aiming to have all its prefessional research staff trained to MSc level or above by the end of the e tlry.  - 9 - 2.11 To date, DAR has not actively planned its in-service training program, or sought out institutions to deliver the required training, either in Malawi or abroad. Until preparation of the proposed project, no-one in DAR was responsible for developing a staff training program and no evaluation had been made of the quality of research and staff capacity problems with identification of major degree and non-degree training needs. The program to date has not included management training, nor training in planning and budgeting for which there will be an increasing need under DAR's proposed reorganization (paras 3.10-3.13). Also, there is no program of short-term refresher courses for technical staff. E. Commodity Research 2.12 An analysis of the 1983/84 research program expenditure by commodities indicates the highest expenditure to be on cotton (21.5Z), horticulture (16.7%) and rice (15.2%). Contrary to the current production importance of maize and groundnuts, only 7.6Z and 5.2X respectively of the total was budgeted for those commodities. While research allocations are affected by many factors, the figures do indicate that commodity allocations have become seriously out of balance with current crop production and potential; the correction of this imbalance is important to making the research program more effective. 2.13 There is considerable overlap of responsibility for managing commodity research programs, but there has been inadequate communication and coordination between the researchers involved. This has particularly characterized the programs in maize and grain legumes (e.g., beans, ground- nuts, and soya). Quality (if the research is variable, and improvement has been prejudiced by the common failure to analyse and write up results. 2.14 The major crop commodity programs involve a combination of breeding, cultivar selection, agronomy and pest and disease control trials distributed over a number of sites. Livestock research by the DAR currently involves breed improvement and evaluation of different animal feeds. Other important research programs cover pasture improvement, farm machinery and grain storage. Programs supported by USAID since 1979/80 include those on maize, groundnuts, beans, wheat, sunflower, fruits and vegetables, rootcrops, livestock and pastures. A new ICRISAT regional program is concerned principally with the testing of groundnut germplasm for resistance to the various groundnut pests and diseases prevalent in the region. Phaseolus bean research for DAR has been conducted at Bunda College, with recent research principally focussed in the Northern Region. 2.15 Research on the five types of tobacco produced by Malawi is undertaken by the Tobacco Research Authority (TRA), a statutory body established under the Special Crops Act in 1980. The Authority is funded by the industry, a levy of MKO.07/kg being collected on all tobacco sold over the auction floors; technical assistance and training are provided by UNDP and ODA. Tobacco research is currently conducted at two main sites and covers breeding, agronomy and curing programs. Regular field days and annual reports help promote the transfer of research findings to farmers. Responsibilities for tea research were taken over from Government by the tea industry in 1959, and research is now largely funded from a cess raised on the sale of tea by the industry. This is supplemented by sale of tea from research plots and from a UNDP grar.t for research on smallholder tea.  - 10 - Agronomy, horticulture, plant protection and plant improvement programs are underway and the regular transfer of results to growers is achieved through distribution of quarterly newsletters and through the direct provision of advice on request. The Tea Research Foundation (TRF) currently leads international research on tea. F. Technical Services 2.16 Technical services provided by DAR include soil and plant analyses, soil survey, crop protection (pathology, entomology and nema- tology), plant quarantine, seed certification and library services. 2.17 Routine soil analyses are carried out at both Chitedze and Bvumbwe Agricultural Research Stations on samples submitted by research staff, the extension service and by the estate sub-sector. Samples sub- mitted by the extension service have declined steadily over the past ten years from relatively high levels. The Chitedze and Bvumbwe laboratories also carry out analyses of plant material, water samples, feedstuffs and fertilizers. Soil chemistry research is carried out in the Chitedze labor- atories and soil physics research at Bvumbwe. New soil laboratories have just been constructed under the USAID/University of Florida project at Bvumbwe for which selected equipment is also being provided. The dilapida- tion of the soils laboratories at Chitedze jeopardizes effective opera- tions. The Soil Survey Unit, which has operated separately from the soil physics and chemistry laboratories, is located in unsatisfactory buildings in Lilongwe. The Unit is responsible for soil surveys throughout Malawi. This comprises field investigations involving the description, sampling and mapping of soils, soil analyses and the preparation of soil survey reports. This relatively small Unit has been fully engaged in ad hoc soil surveys, and requests for such surveys have kept the unit fully occupied. Inade- quate staff time, laboratory and operating costs have prevented the imple- mentation of a planned systematic survey of the whole country. 2.18 Responsibility for crop protection is divided between the Ministry of Forestry and Natural Resources (MFNR) and DAR. The MFNR is concerned with vertebrate pests while DAR is concerned with crop protection against invertebrate pests, diseases and weeds. Within DAR, crop protec- tion activities are concentrated at the three m-jor research stations and reflect the agronomic specialization of the station. Coordination is weak, a well-defined program is lacking and individual specialists work on a day- to-day basis on problems as they arise. 2.19 Seed certification and the licensing of approved seed growers is carried out by the Seed Technology Unit at Chitedze. The Unit works closely with the National Seed Company, which gives it financial support. The unit examines seed purity, freedom from pathogens, physical condition and viability. 2.20 The present Plant Quarantine station at Bvumbwe consists of small quarantine greenhouses and pla-.t destruction facilities. A larger, taller greenhouse for imported sugar cane, supplied by SUCOMA, has also recently been installed. The plant quarantine station is poorly situated relative to the principal importation port of Lilongwe.  - 11 - 2.21 DAR's main library is located at Chitedze Research Station and houses 200 periodical titles, about 3,000 catalogued bound volumes and about 5000 uncatalogued volumes. About 500 additional volumes are on loan to other station libraries. A wide range of up-to-date journals is regularly received by CLitedze, including some highly specialized and. expensive journals that are rarely used. There is a need to update the collection of specialized reference books. 2.22 The DAR library system does not provide a useful reference service for research. As the collection is not subject catalogued, articles are difficult to locate; moreover no library systems are in place to facilitate broader reference searches. None of DAR's libraries has an up- o-date record of the other libraries collections, and inter-library loans are therefore not feasible. Periodicals are circulated from Chitedze to the other stations, but the process is slow and often results in losses; thus research staff have difficulty in keeping up-to-date. Due to chronic inadequacies in the libraries' operating budgets, journals were last bound in 1973 and there is now a backlog of roughly 2,200 volumes. The physical facilities at Chitedze library are cramped with inadequate reading room and shelving space. DAR has no library budget, and operating expenses are financed out of the general station budget. 2.23 DAR has no professional level librarians; the Chitedze library being staffed with one TA and the other libraries by unspecialized clerical officers. Ten man-months of technical assistance is being financed by JSAID in 1984 to begin subject cataloging and identification and filling of some of the gaps in the journal series. Standard indexing is being used wherever possible, but the overall task is likely to be lengthy. G. Research-Extension Linkages and Farming Systems Research 2.24 The link between the research staff of DAR and the extension staff of the DOA (para 1.08) relies largely on contact between the CAO and CARO and informal initiatives of individual extension staff to ascertain information. The CARO has been assisted by a itesearch Liaison Officer who channels queries from extension to appropriate DAR staff, and requests researchers to summarize their technical recommendations for use by exten- sion staff. However, this approach has been fundamentally inadequate. inadequate. Although there is some direct contact between extension and research staff, information flows are inadequate; extension staff are unaware of recent research findings, and research progra.ns are inadequately focused on farmers' problems. Many extension recommendations have remained unchanged for many years. Extension Aids materials offer blanket rather than locally specific recommendations. Meanwhile, the Agricultural Handbook of Malawi, which includes all of the basic extension recommenda- tions, has not been updated since 1971. Its large format makes revision prohibitively expensive, and its size makes it unsuitable for field use. 2.25 Improvement of the formal and informal linkages between research and extension will be essential if the research/extension system is to become more effective. Establishment of farming system research capacity will have an increasingly important role in bringing agricultural research and extension more closely together, and should be responsible for rapid  - 12 - diagnosis of the farmers' major social, economic and technical problems within the existing farming system. In late 1983, DAR identified staff, some with considerable field experience, to form four adaptive research teams and began a series of orientation seminars with CIMMNT and USAID support. H. Linkages with International and Regional Research 2.26 As a small and relatively poor country, Malawi will never be able to generate all the research technology that it needs. Therefore, maximum use should be made of technology generated elsewhere that can be modified appropriately. There is already quite extensive cooperation with several of the IARCs, taking the form of research for center scientists, dispatch of materials for testing and participation in training programs. Several of these programs are regional in scope. Under recently initiated SADCC sponsorship, ICRISAT is initiating a major sorghum and pearl millet program centered in Zimbabwe. A CDA program on soil and water management is planned to be based in Botswana. IITA,.CIAT and ICRISAT are considering a possible grain-legume program to be based in Malawi. Plans for ECA/FAO to establish a regional maize research program in Zamiba are in an advanced stage. The potential benefits for cooperation in these iuternational and regional programs are likely to be in the areas of varietal improvement of several of Malawi's major food crops. 1. Reports and Publications 2.27 Analysis, interpretation and publication of results by DAR has been allowed to lapse and the last Annual Report on Research was published in 1974. Selected station reports have been printed more frequently. However, results relating to the full range of Malawi's ecological zones are not being drawn together for use. There is also no national journal of agricultural research and few, if any, Malawi-based articles have been published in the last few years in any of the international agricultural research journals. There is an urgent need, therefore, for the DAR to bring its publications up to date. J. Development and Recurrent Budget 2.28 DAR's development budget totalled nearly MK3.1 a (US$2.3 m equi- valent) for 1983/84 and is about MK2.6 m (US$2.0 m equivalent) for 1984/85. Ninety-two percent and 94% respectively were financed externally. From 1979/80 to 1983/84, DAR's development budget increased nearly thirtee-fold in real terms from a very small base, while the percentage financed exter- nally remained constant. Over the period, British ODA assistance declined, and external financing has been supplied by a USAID-financed NRDP Research Project and IDA financing of central services for NRDP. DAR has demon- strated a good record in providing the matching funds required for project financing. However, such local financing has often been accomplished by underfinancing other ongoing DAR activities. 2.29 As of FY84/85, DAR's recurrent budget allocation is about MK3.4 m (US$2.5 m equivalent), of which about MKO.17 m (US$0.13 m equivalent) is expected to be returned to the Treasury in revenues from bulk cropping. DAR's recurrent budget increased by 61% in real terms between FY8O/81 and FY82/83. This was in keeping with GOM's commitment under SAL I to provide  - 13 - adequate finance to the Ministry of Agriculture and particularly for criti- cal agricultural services including research (para. 1.16). However, with the onset of Malawi's fiscal difficulties in FY83, the budget allocated to MOA increased nominally by only 2% and declined in real terms by about 11% between FY82/83 and FY83/84. MOA's allocation to DAR's operating budget declined nominally by 1% and in real terms by 14% in that period; alloca- tion for DAR's research programs, services and overheads declined sharply, by over 20% in real terms (8.2% nominally). 2.30 Overheads and administrative costs for DAR's extensive station network currently absorb nearly 50% of its recurrent budget. These overheads are particularly excessive in the context of the small research staff of most scations: while overheads in DAR's three largest stations averaged about MK7,000 per researcher in FY83/84, overheads for the remaining stations averaged over MK 35,000 per researcher. In DAR's 1984/85 budget eq'4mates, research work absorbs only 31% of the recurrent budget. DAR's high fixed costs and GOM's current fiscal difficulties are together considerably restricting funds that DAR has available for research programs. III. THE PROJECT A. Sector StrategS and Project Rationale 3.01 IDA's assistance strategy to Malawi's agricultural sector is one of long-term institutional development. This focuses principally on strengthening national systems - principally agricultural research, extension and planning - that can be pivotal in expanding agricultural production, improving diversification and marginal productivity, and increasing export earnings. The proposed lending operation, focusing on research, and the proposed Agricultural Extension and Planning Support Project are thus interwoven as first stage efforts in the long-term program of central systems development. Proposed assistance to MOA's planning division aims to develop a consensus on its functions and to help strengthen its staffing so that it can provide continuing technical advice to policy-makers on investment priorities and sector structure in light of Malawi's comparative advantage, as well as pricing policy analysis. Strengthening of research capacity would help DAR to improve its planning, management, technical proficiency, and relevance of research to farmers' needs and economic priorities. Strengthening of the extension system would assist DOA to improve the technical competence and information base of extension staff, and the methods of farmer outreach. 3.02 The World Bank's recent report, Toward Sustained Development: A Joint Program of Action for Sub-Saharan Africa (1984), emphasizes the importance of strengthening agricultural research capacity in the region, including both applied and adaptive research; and of developing more effective use of existing research capacity by helping to improve both the focus, continuity and coherence of research programs and the linkages between research and extension. In the case of Malawi, as a recent IDA Malawi Agricultural Diversification Study and the NRDP Review have pointed out, improvements in the relevance and quality of agricultural research will be critical to developing suitable commodities for import substitution  - 14 - and export growth, and to expand smallholder output generally. With the land frontier being rapidly approached, at least for the smallholder sector, and generally low yields now being obtained, there is considerable need to increase yields and to increase efficiency of resource use by shifting production patterns into those with higher marginal returns. These objectives are particularly critical in light of Malawi's current fiscal problems and consequent need to improve cost-effectiveness and agricultural returns. Research in Malawi has a key role to play in this regard. B. Project ObJectives and Summary Description 3.03 The proposed project would aim to improve the focus and quality of Malawi's smallholder-oriented agricultural research program; formulate an overall strategy (master plan) for agricultural research; strengthen critical linkages, particularly between the research and extension pro- grams; and improve the efficiency and economy of DAR's ongoing activities. This echoes recommendations of the 1981 World Bank Agricultural Research Sector Policy Paper that Bank and IDA operations should assist in the development of systems, including long-term efforts to improve research planning and evaluation, cost-effectiveness, technical capacity, insitutional rationalization, and linkages between research and extension systems. The proposed project would focus on developing the human resource base and institutional framework needed to carry out relevant agricultural research. This would be the first phase of a long-term effort to build up this technical capability. New research priorities could emerge by Project Year 3 as a result of the master plan to be formulated and financed under the project. Systems of annual planning and review to be established under the project should be well underway by that time. The ultimate objectives would be the development of new varieties, husbandry practices and farming systems aimed at responding to farmers' regionally specific problems and significantly increasing smallholder production and incomes. 3.04 The main features of the project, involving investments, policies and institutional development, are as follows: (i) the creation of an Agricultural Research Council to advise on research priorities; (ii) the rationalization of DAR's station network including the elimination of some stations, and the relocation of staff; and parallel improvements in remaining physical facilities, including investments in civil works and equipment; (iii) the reorganization of DAR into multidisciplinary research teams, and the introduction of management and systems improvements (including task planning and budgeting, improved data processing and retrieval and routine planning and evaluation exercises) designed to improve cost-effectiveness; (iv) the introduction of a technical career stream, staff evaluation system, training need identification procedures, and the pr- vision of training and technical assistance for DAR staff;  - 15 - (v) intensified collaboration with International Agricultural Research Centers and Regional Research Institutes, and the introduction of a contract research program with national non-governmental research centers; (vi) improvement in extension-research linkages through the establishment of Adaptive Research Teams and research- extension workshops, and development of locally-specific extension recommendations; and (vii) improved economy and efficiency in ongoing activities, largely through reduction in administrative costs, overheads and vehicle running costs, and reallocation of DAR budgeting proceeds to sustain the above new activities. C. Detailed Features 1. Establishment of an Agricultural Research Council 3.05 An Agricultural Research Council (ARC), broadly representative of major Malawian interests in agricultural development, would be constituted under the project as a policy advisory board. The Council would include: the Controller of Agricultural Services as Chairman, the CARO (ex officio), the CAO, the Chief Veterinary Officer, the Chief Forestry Officer, Secre- tary of the National Research Council, representative(s) of the University of Malawi, representatives of the Tea Research Foundation, Tobacco Research Authority, the sugar plantations, the Estates Advisory Board, and the Economic Planning Division. Such representation would enable the Council to give policy guidance to DAR and to support DAR in its role as a major contributor to overall agricultural development. '.06 The ARC's policy responsibilities would include: gi) Ensuring that the agricultural research strategy is consistent with the availability of finances and the allocation of prior- ities, and conforms to national goals for agricultural develop- ment. A key element would be production of a flexible agricultural research master plan, which would be a blueprint laying out the research strategy over a 5-10 year period (para. 4.13). The ARC would review and recommend adjustments as needed in the master plan. (iii) Reviewing DAR's annual research program; ensuring that the needed resources for agricultural research are provided to DAR. (iv) Advising on areas where donor assistance is required; and coordinating and monitoring the activities of all donors to the agriculture research system of Malawi to ensure that these are consistent with the Master Plan and that they do not result in the distortion of research programs, the misallocation of resources and the commitment to programs which have excessive operatiotial costs in the long term.  - 16 - (v) Ensuring that funds are available for contract research (paras. 3.33 - 3.34), that such research is properly oriented to the needs of the country, and that the results are delivered in a timely fashion. To carry out its responsibilities in an effective manner the Council would set up a Secretariat which would be responsible for developing the research master plan jointly with CARO's staff, reviewing DAR's annual program and budget, and organizing triennial reviews of the research system. The pro- ject would finance an advisor to the ARC for a minimum of three person- years, particularly to assist in formulating the Master Plan, with the option to extend his contract for continued advice on program planning; salaries and benefits of incremental staff for the Secretariat; travel and subsistence costs for ARC members to attend the meetings; and other operating costs, principally for the Secretariat and Triennial Review. 2. DAR Infrastructure Consolidation and Improvement 3.07 A phased reduction of the present over-extensive research station network would reduce the escalating costs of maintaining stations with small research programs and would release such funds for more intensive and well-focused research work. The current network of eleven main research stations, nine substations, and over 220 trial sites would be reduced to three main stations, three substations, and nine trial sites (Table 3.1). This consolidation has been approved at the highest levels of Government. The three major stations would be Chitedze, Bvumbwe, and Lunyangwa in the Central, Southern and Northern regions respectively. One new trial site would be constructed in the North at Mkondezi, an otherwise unrepresented eco-agricultural zone, for research on tropical fruits and roots/tubers. Great care has been taken to ensure that all of Malawi's arable ecological zones are represented by this consolidated network and that research services (para. 2.16) are available regionally. Excess infrastructure would be taken over by other GOM departments (para. 4.06). 3.08 Most Commodity Teams would be located at the main stations, depending on the major commodities grown in the area. This consolidation of staff into teams with agreed work programs and a common home base would eliminate duplication and improve overall coordination of commodity research (para. 2.13). The three main stations would house the National (multicommodity) Research Coordinators (NRCs) and Commodity Team Leaders (CTLs) (Chart C-7). 3.09 The project would construct and rehabilitate research buildings and required housing; provide much-needed scientific equipment, farm machinery and vehicles, and office equipment/furniture; and relocate 215 staff. In terms of civil works: (i) the central buildings at Chitedze would be rehabilitated and expanded including construction of new admini- strative and library buildings, and soils and plant nutrition laboratories; (ii) Bvumbwe library, laboratories and selected other facilities would be renovated; (iii) Lunyangwa's laboratory, library and office facilities would be expanded; (iv) land will be prepared and laboratory, office, and other buildings would be constructed at Mkondezi for a new trial site; (v) 115 staff houses built and 62 rehabilitated to accommodate relocated staff in remote locations; and (vi) other minor works undertaken.  - 17 - Table 3.1: Consolidation of Research Infrastructure New Network Main Sub- Trial Station Station Site Closed Former Full Stations 1. Baka x 2. Lunyangwa/Choma x 3. Mbawa x 4. Chitala x 5. Lifuwu x 6. Chitedze x 7. Makoka x 8. Bvumbwe x 9. Kasinthula x 10. Ngabu x 11. Makhanga x I/ Former Sub- Stations 1. Meru x 2. Wovwe/Hara x 3. Bolero x 4. Limphasa x S. Lisasadzi x 6. Bembeke x 7. Tsangano x 8. Thuchila x Former Trial Sites 1. About 220 trial sites x 2. Nehenachena x 3. Liwonde x To Be Added 1. Mkondezi x 3 3 9 227 1/ Except for fruit trials, supervised by one TA. The rice team would remain at Lifuwu, a substation of Chitedze, and the sorghum/millet and irrigation/drainage teams would continue to be located at Kasinthula, a substation of Bvumbwe, to avoid the expense of duplicating their facilities elsewhere. Bunda College would remain the location for work on Phaseolus beans.  - 18 - 3. Reorganization, Management and Systems Improvements 3.10 Reorganization. DAR's proposed reorganization (Charts C-5, C-6) is designed to facilitate research priority-setting, relation of research resource allocation to the importance of commodities, and improvement in the quality and output of the research system. The Chief Agricultural Research Officer would be supported by two Deputy CAROs, one in charge of research programs, the other in charge of technical services and admini- strative matters. The arrangement would allow the CARO more time for managing the research system; it would also provide him with sources of information for planning and monitoring research and improving the allocation of staff and other resources. At the operational level the major reorganization would be a change in the research station management structure such that the officers-in-charge of some 11 stations, who formerly had direct responsibility for all activities at the station, would be freed of administrative duties in order to focus full-time on research programs, and the management of the station would be vested in station administrators with more limited purview. The responsibilities of the station administrators to be instituted under the project would include: (i) administration of the common services of the station including library facilities, maintenance of the experiment station and grounds, buildings, and utilities, and labor resource allocation; (ii) supervision of the farm manager; (iii) allocation of pooled resources at the station, including transport and farm ]3bor, to research programs, according to previously agreed priorities; and (iv) preparation of an annual budget for operation of station activities for which the administrator is responsible. The administrator would be assisted in these tasks by a station advisory committee, comprised of the station's scientists and chaired by the station's most senior scientist, which would meet at monthly intervals. 3.11 DAR would organize its researchers into multidisciplinary commodity (applied) and adaptive research teams,and service teams. The applied research program would be organized into five commodity-oriented programs: cereal crops; fruits, vegetables and tree crops; grain legumes, oliseeds and fibers; livestock and pastures; and engineering and land husbandry. Each applied research program, the adaptive research program (for more locally-specific testing), and DAR's technical services would be managed by a National Research Coordinator responsible to a Deputy CARO. In cereals, for example, there would be four multidisciplinary teams, one each for maize, wheat and barley, rice and sorghum/millet, each led by a Commodity Team Leader who would be responsible for the development and implementation of the research program. 3.12 The above commodity research teams would be structured to develop generally applicable recommendations on varietal use and animal and land husbandry techniques. However, their findings could not be expected to be suitable to each locality. Adaptive research teams would therefore also be established: (i) to identify farmers' key problems and the available blanket recommendations that could be relevant, and (ii) to develop recommendations regarding input use and husbandry, tailored to local agronomic, social, and economic conditions. The commodity teams would operate nationally, while the adaptive research teams would operate locally. The commodity research programs would operate principally within the research station network, including trial sites covering all of  - 19 - Malawi's major ecological zones. The adaptive research program would be conducted on farmers' fields. Thus, commodity research teams would conduct their research under experiment station conditions with optimum levels of management. On the other hand, adaptive research would test inputs under prevailing farm conditions, as well as test various farm management regimes to develop models that would be agronomically productive and socio-economically acceptable to the farmer. 3.13 To make this system work, the adaptive research teams (ARTs) would work closely with the ADD level extension service to identify farmers' problems, conduct on-farm trials, and generate locally-specific extension recommendations (paras. 3.36 - 3.38). The commodity research teams (CRTs) would confer regularly with both adaptive research and extension staff (paras. 3.38 - 3.42). 3.14 Management and Systems Improvements. The project would provide for introduction of a task-oriented program and budgeting system. Instead of research and technical service funds being allocated by station, they would be assigned through the relevant National Research Coordinator to each Commodity Team Leader, Adaptive Research Team Leader, or Technical Service Unit Chief and, through them to the manager of each specific project. Funds for station overheads would be allocated to the facilities' administrative officers. In this manner, the budget system would support the new management functions to be introduced under the reorganization (paras. 3.10 - 3.11). Personal accountability would be introduced by placing researchers in charge of managing the budgets for their projects. During project preparation, budget accounting categories were redesigned by DAR's Financial Controller to identify each specific research program, each type of service, and overheads. Though trial runs were done in FY83/84 and 84/85, these were primarily to test flows of reporting; funds could not be allocated on this basis as commodity and adaptive research teams were not yet operating. Assistance being provided under a Project Preparation Facility and proposed under the project would continue to further refine the system, help in planning and managing its implementation, and monitor- ing performance. This assistance would include financing of technical assistance, staff training, and operating costs. 3.15 The proposed system would permit DAR to come to grips with the real costs of each research activity. This would permit them to (i) make informed choices about redesign of research proposals to increase cost- effectiveness, and (ii) ensure that resource allocations are adequate to yield results, and rationed according to relative priorities of the con- tending programs. The proposed budget system would therefore provide a mechanism for (i) assigning priorities to various activities; (ii) ensuring that the planned funds are available for the identified research projects; and (iii) monitoring expenditures to help control overspending and excessive reallocations. 3.16 Program Planning and Review. The focus and therefore relevance and quality of research would be improved through a structured annual review and planning exercise (para. 4.12). A draft indicative research program for 1985/86 has already been prepared by DAR and improvements suggested by IDA during post-appraisal discussions (para. 4.09). The program proposed for 1985/86 includes continued programs on the major commodities produced by smallholders in addition to new initiatives on land  - 20 - preparation and fertilizer use. The finalized 1985/86 program would be of a pro tea nature, since the development of the research master plan might lead to substantial changes in the decisions on priorities and implemen- tation of research over the next 5 years. Research programs would focus on production constraints of crops and livestock that have current or poten- tial comparative advantage and reasonable marketing prospects, domestically or internationally. Research on farming systems would also be a priority since it focuses on the value of output froma the combined resources of land, labor and other inputs. Research would address the sub-optimal use of existing technology and also focus on the generation of new technology, in order to expand the overall production function. 3.17 Prior to submisslon of each subsequent fiscal year's budget, the DAR management, including the NRCs, would review and evaluate the quality, productivity, and cost of each research program from the previous season. They would also evaluate each program proposed for the next year in terms of its content and budgetted cost, and importance to the national economy as reflected in DAR's strategic long-term plan (para. 3.06(i)). The man- agement would also present a program and budget paper annually to the ARC for review and adjustment. 3.18 Every third year, the whole research program would be reviewed in depth by a group consisting of a distinguished, experienced research administrator with international and tropical experience (serving as the Team Leader), two other experienced external reviewers, with specializa- tions in two of the major commodities of the research program, an experi- enced social scientist from the University of Malawi community, and a senior member of the extension staff. One member of the team would have particular responsibility for assessing the efficiency and effectiveness of the adaptive research program. The ARC would organize these triennial reviews (para. 4.13). The project cost includes the operating costs of such annual and Triennial reviews. 3.19 Strengthening of DAR Library and Data Processing System. Technical assistance, operating costs, civil works, equipment, furniture, and publications acquisitions would be provided to strengthen DAR's library system and data processing capacity. Library services would be improved, the main library at Chitedze expanded, and DAR's smaller libraries consolidated into two satellite libraries at Bvumbwe and Lunyangwa Research Stations. DAR would appoint a full-time Head librarian at Chitedze, assisted by a librarian TA, and two full-time librarian TAs at Bvumbwe and Lunyangwa. The Head Librarian would be trained to Master of Library Science level and the TAs would participate in short-term training including workshops organized by the Malawi Library Association. With 3.5 person years of foreign expert assistance, this staff would put the library collection in order and make it accessible. This would entail subject cataloging of the entire collection, filling gaps in journal series, and binding or replacing journal volumes. An inclusive set of the DAR core collection will be maintained at Chitedze. After stock has been taken of the libraries' current collection, the project would provide for acquisition of materials to complete a relevant core collection in agricultural research. For certain specialized parts of the collection germane to the research programs of the other main stations, originals will be retained at the main station specializing in that field (e.g., horticulture at Bvumbwe) and copies will be retained at Chitedze.  - 21 - 3.20 A new main library building would be constructed, equipped and furnished. This will be 820 sq. m., roughly 4.5 times the present library's size, dimensioned to permit a 5% per annum increase in the collection for 10 years, and to enable longer-term expansion of the collection into a Ministry-wide library. Equipment would be supplied to permit the cataloging and circulation of the collection, with reduced risk of losses. This would include a microfiche printer/reader for the main library and two microfiche readers for the satellite libraries. This would ensure that all research staff, wherever posted would have rapid access to the scientific literature essential for their work. 3.21 Measures would be established to improve the acquisitions procedure of the library; circulation of matcrial; library utilization; and predictability of operating funds. An explicit budget for the library would be established. This would be part of the proposed DAR programming and budgeting system to be instituted under the n-nject. The library would acquire the journals necessary to support the research program, including the abstract journals. Additional materials, books, periodicals would be procured as necessary, following consultation between the librarian and a small group of the scientists, organized as a Library Advisory Committee. By project completion, it is expected that the library would become a more responsive reference system, entailing (i) an accessible and complete data base of DAR, including files and computer records; (ii) a responsive, well- trained staff, and (iii) utilization systews and software that are compat- ible with the possibility of a broadened future mandate to serve the entire ministry. 3.22 Thie orientation of DAR's biometrics and data processing Unit woud be changed under the project from providing routine data processing services to providing economic analyses to support strategic planning of the research program (paras. 3.06, 3.16-3.17). The capacity of this unit would be strengthened with long-term internationally recruited technical asaistance in production economics and a staff of at least two Malawian agricultural economists. To permit this shift in emphasis and improve DAR's data processing and retrieval capacity, the commodity and adaptive research teams would be trained in biometrics and other data processing techniques; computers would be provided under the project, with work stations at headquarters, the Commodity Research Teams, and library. The hardware would be compatible with the MOA computers utilized for central planning purposes and by ADD management. This capacity would be used to record, adjust and monitor planning and budgeting information and research results. The library's computer would be used to tap into a global data base for agricultural reference information. Further, all trials records and annual reports would be deposited in the Chitedze library at the end of each crop year. 3.23 Publications Development. The project would provide financing for DAR to re-introduce the timely publication of an annual report. Such reports would provide an opportunity for a critical evaluation of the past years' research and by presenting negative as well as positive results, prevent the repetition of unproductive work. The project would also assist DAR to publish a Research Bulletin regularly, summarizing research work being carried out over a number of years. Staff of DAR would also be encouraged to publish their more important findings in international journals.  - 22 - 4. Strengthening of DAR Technical Capacity and Improved Career &z-elorment 3.24 Job description development. As part of project preparation, DAR has prepared summary job descriptions for all types of positions from CARO to TO (Table 2.1), delineating major administrative and substantive responsibilities and formal qualifications. During project implementation these job descriptions would be adjusted as needed, and the jobs disaggre- gated into tasks and skill requirements. Special attention would be given to tasks which the staff member should be able to accomplish without close supervision, and the sorts of guidance managers should be able to give, and to whom. Taken in aggregate, these job descriptions would describe DAR's operational system. Most importantly, they would provide clear criteria for assessing potential recruits and making judgments about staff perform- ance and promotional aspects. Costs of this exercise would be subsumed in DAR's current administrative costs. 3.25 Recruitment. Guided by the above criteria, DAR has undertaken to recruit degree graduates more aggressively. DAR would organize career days at the University of Malawi early in the students' recruitment cycle and would publicize the DAR staff training program and promotional possibili- ties and solicit applications from outstanding graduates. 3.26 Staff evaluation. The task and skill breakdowns of DAR's job descriptions to be introduced under the project (para. 3.24) would be used to help managers analyze staffs' skill gaps. A system would be established to link staff supervision and evaluation with development of staff work programs and the staff training program (para. 4.22). The formal annual evaluation process would be modified to allow staff members themselves to ci) identify the areas in which they feel they need increased guidance, work experience, and training and (ii) review and discuss their managers' comments before they are finalized. A revised staff evaluation form which would supplement the standard civil service format would be reviewed at negotiations. These changes in the evaluation system are within MOA's purview and would not require approval by the Personnel Management Training Division of the Office of President and Cabinet (OPC). Additional costs would be negligible. 3.27 Incentives and Career Growth. During negotiations agreement was reached that by end-April, 1987, GOM would develop and formallv approve the necessary regulations to implement a scientific career stream for DAR, satisfactory to the Association (para. 6.05(vi)). This career stream should permit high level advancement of scientists based on the auality and contribution of their research, without requisite movement into managerial roles. This would provide compensation for DAR's best scientists roughly on a par with that at the University or in the Malawian private sector. The current regulations, permitting such high level advancement only on very exceptional grounds, could not establish adequate incentives to retain DAR's best scientists. A Civil Service Review Commission financed by ODA is now reviewing all aspects of civil service structure, including the institution of scientific career streams,across a spectrum of ministries. GOM has undertaken to make no changes in civil service policy pending its review of the Commission's report in early 1985. By late 1985, it would be reasonable for MOA to request a suitable promotion policy for DAR.  - 23 - 3.28 As part of project preparation, DAR has also changed the number of posts assigned to each of its current civil service ranks, without increasing the total posts, to create a more pyramidal structure. This has removed past blockages to promotion, and DAR has begun to promote qualified staff accordingly. 3.29 Inservice Training. The project would finance both degree and nondegree training, consisting of: (i) postgraduate training at Ph.D. level for National Coordinators and selected Commodity Team Leaders, and at M.Sc. level for Commodity Team Leaders a-d selected research officers, to provide them with the necessary depth of academic background to undertake research in their respective specialized fields; (ii) visits or attachments to research centers abroad for research officers and senior research staff to broaden their experience of research practices appropriate to their work program; (iii) short-term management and technical courses and workshops, largely delivered in country in order to: - provide PO, TO, and TA staff with technical specialized knowledge and job-specific skills; - ensure satisfactory performance of support staff (e.g., labor- atory technicians, equipment operators, research station administrative officers); - upgrade managers' skills in planning and management of research programs, government procedures, and practical management techniques; - orient research staff towards adaptive research and farm systems concepts, and foster interchange between research and extension staff; and - make researchers more effective in communication skills, to improve their dissemination of existing and new research information (Annex I, Table T-2). The degree training schedule is one phase of a coherent long-term plan to upgrade DAR's scientists. About 65% of the degree training, to be financed by USAID, would be provided principally in the United States; the balance, to be financed by IDA, would be provided in Europe and elsewhere. The training and technical assistance schedules have been synchronized to maximize collaboration between National Coordinator designates or Commodity Team Leader designates and their consultant counterparts before and particularly after training. DAR has attempted to select individuals for training based on the importance and complexity of the Commodity program they would manage; passage of the Graduate Record Examination for United States programs would also be a determinant.  - 24 - 3.30 An internationally recruited Training Advisor would be financed by USAID under its proposed National Agricultural Research and Extension Project (para. 3.49) to assist DAR and DOA to develop an inservice training program for research and extension (para. 4.21). An average of about 1,000 person- weeks of training would be delivered per year under the project, covering all of DAR's management, scientific, and technical staff who are in- country. This would amount to an average of 2.5 person-weeks of training per annum for each DAR professional or technical staff member currently in Malawi. An indicative training program for Project Year 1 was developed during appraisal (Annex II, Table T-2, pages 3-7); the final plan would be confirmed at negotiations. To facilitate the logistics of this short-term training, reduce operating costs, and preserve the Chitedze library for research purposes, the Colby College buildings located at Chitedze Research Station, which have been vacated and donated to DAR, would be rehabilitated as a DAR training center. These would include classrooms, a conference room with audiovisual capacity, and dormitories. 3.31 Technical Assistance. The project would provide 537 person- months of long-term internationally recruited technical assistance and 57 person-months of short-term internationally recruited assistance (Annex I, Table T-3). Long-term assistance would include 228 person-months of assistance in DAR's institutional development in the form of a Programr- ming and Budgeting Specialist/Financial Controller, adviser to the ARC, librarian,and adaptive research economist a:- agronomist. The balance of long-term technical assistance would entail a procurement specialist, and a training advisor to assist both DAR and DOA, scientific and economic specialists, primarily to assist selected National Coordinators and Commodity Team Leaders to plan their research programs, and to help manage these programs while the coordinators or team leaders are away for advanced degree training. Short-term technical assistance would consist of brief interventions (e.g., one to three months) to provide advice in specialized areas. 5. Research Collaboration 3.32 Under the project, DAR's National Coordinators would be in close touch with relevant international and regional programs and would be pro- vided with funds for periodic visits (once every 2 to 3 years) to the major centers of research. Commodity Team Leaders would also participate in regional and international consultations (every 2 to 3 years) with research centers in their fields. This would be programmed as part of the proposed DAR training calendar. Areas of anticipated collaboration would include: (i) sending trainees to CIMMYT and CIMMYT participation in the annual program review, to advise on the maize breeding program; (ii) access to a wide range of geruplasm for varietal testing through ICRISAT's regional groundnut and sorghum programs and the CRSP supported Phaseolus bean program at Bunda College; (iii) exchange of information with and an annual visit to ICIPE on insect control; (iv) access to ILCA's comprehensive literature survey on livestock research in Africa; and (v) closer links with Zimoabwe's research service, especially on cotton research. 3.33 The very size and diversity of the many international, regional, and bilateral programs cffering help to Malawi's research system (para. 2.26) inherently entail some risk of channelling DAR's attention and resources into comparatively low priorities. Therefore, it would be one of  - 25 - the important objectives of the research master plan (para. 3.06) to decide, in discussion with these organizations, where the major inputs are needed, and for the ARC to monitor these and to decide that they are indeed contributing to the country's overall research objectives. Likewise under the project, DAR both would evaluate training offers by international and regional centers or institutes in terms of DAR research and staff develop- ment priorities and would request the centers to design specific types of training in such areas. Though CGIAR technical assistance is generally not charged to national users, similar assistance from certain international and regional centers (e.g., ICRAF) has been costed for the project. Assistance by the Institute for Research in Agro-Forestry (ICRAF) would be financed under the project to ensure an increased input and improved focus on agro-forestry, including its inclusion in the adaptive research programs. 3.34 Contract Research. The project would capitalize on the human resources of the University of Malawi (para. 2.14) and private research entities (para. 2.15) by providing funds for contract research. DAR would both elicit research proposals on areas of particular interest and vet proposals in light of DAR's overall priorities. The ARC would manage the funds for contract research, and would review and adjust the program annually to ensure that DAR is mobilizing sufficient non-governmental research expertise and that sufficient socio-economic analysis is being undertaken to help DAR shape its program. Bunda College of Agriculture and the Center for Social Research at Chancellor College are expected to be involved immediately, followed by Chancellor's Planning Center of Applied Sciences, and the Biology and Earth Sciences Departments. The Center for Social Research would assist the Adaptive Research Teams to diagnose smallholder problems and analyze reasons for non-adoption of available extension packages. 3.35 The project would also fund development and operating costs of a small estate coffee research facility at the Tea Research Foundation (TRF) and support for two person-years of technical assistance to begin the estate coffee program there. At project completion the coffee industry would be responsible for financing the operating costs of estate coffee research, exclusive of salaries/benefits of the DAR researchers. As a condition of disbursement for estate coffee contract research, DAR would provide the Association with: (i) an outline of the kind of support that TRF would provide, including research guidance, library facilities and laboratory back-up; and (ii) the proposed staffing pattern to carry out the research, probably initially consisting of an agronomist and support staff from DAR to be located at TRF and provision for a second research officer in Project Year 3, as the problems of estate coffee research become more defined (para. 6.04). 6. Linkages with the Extension System 3.36 Development of Adaptive Research Capacity. Technical assistance, M.Sc. and short-term training, civil works, equipment and vehicles, and operating costs would be provided under the project to establish eight Adaptive Research teams (ARTs) (para. 3.12) - 7 at ADD level and a coordi- nation unit at headquarters. Each ART would be comprised of an agricul- turalist and a socio-economist from DAR, supported by three technical assistants, one from DAR and two from the extension service. The ART would  - 26 - operate as part of the ADD, responding to the ADD's particular problems and sharing information and advice with its extension staff. The intended result of the program would be generation of locality-specific production recommendations to be used by the ADD extension services. These would include inter alia development of appropriate technical recommendations for women, many of whom are heads of households. 3.37 To permit the ARTs to develop a modus operandi while tackling relatively manageable problems, they would focus first on densely populated areas which also have potential for relatively rapid increases in produc- tion from technological improvements. The ARTs' work would have two major stages: diagnostic and experimental. Through diagnostic surveys and use of information from the ADDs' data banks, the ARTs would identify priority problems in the above areas and the constraints impeding production, as well as conditioning factors such as the flows of labor, material inputs, input and farmgate prices and returns. In this process, the teams would identify groups of farmers with common farming system problems which appear amenable to common solutions. 3.38 The ARTs would consult relevant Commodity Team Leaders for information on available technology that might be adapted to local conditions; if a relevant solution could not be located, the problem would be considered for inclusion in the DAR's applied research program. Potentially relevant technology would be tested in three stages of trials, over a number of years. The ARTs would design the experiments jointly with the Commodity Research Teams and ADD Subject Matter Specialists. The degree of farmer participation in managing the trial would depend on the trial's objectives. ADD extension field assistants would help establish, monitor, and harvest the second and third stages of trials. This would acquaint them with the possible impact of the new technology on local farming systems and the reactions of local farmers; contribute to adjustment of trial design and interpretation of results; and facilitate demonstration of the new techology to other extension staff and farmers. The involvement of extension TAs would amount to no more than two weeks each per cropping season, phased in small bits of time, to help in such tasks as trial layout, planting, supervising treatments by farmers, and trial harvesting. Involvement of extension staff has been carefully planned, in collaboration with the Department of Agriculture, to ensure their availability without undue interference in their other extension activities. 3.39 Development of Extension Recommendations. Under the project, CRTs would immediately start to update the basic text of the extension service, the Agricultural Handbook of Malawi, which would be published in looseleaf form. Preparation of locally-specific extension recommendations would be a direct outgrowth of the adaptive research program (para 4.27). Though implementation arrangements to prepare these materials would be established under this project, the time and costs involved would be minimal and covered by DAR's and DOA's current operating expenditures; this sub-component is therefore not costed separately. 3.40 Research-Extension Workshops. Operating costs would be financed by the project to introduce regular research-extension meetings at ADD level and re-institute MOA's annual research-extension workshop.  - 27 - 3.41 The ADD level meetings would have two objectives: (i) to draw upon Commodity Research Specialists to help solve problems arising during the growing season; and (ii) to make these researchers more cognizant of field problems. Their contribution would take two forms: (i) programmed visits by researchers to each ADD once a month to advise on routine predictable issues (e.g., fertilizer application) and (ii) ad hoc responses to crises, principally pest and disease outbreaks. Each CRT would be represented at least once per season in each ADD, as relevant to that ADD; considering the importance of maize to Malawi's economy, maize specialists would participate in each ADD's research-extension meeting every other month. In addition to responding to ADD-level extension problems, these meetings would strengthen the link between the CRTs, ARTs and ADD Subject Matter Specialists and assist in the increased familiarization of research staff with farmers' problems. For the sake of economy of ADD staff time, the normal monthly ADD management meeting would usually provide the forum for these research-extension meetings. 3.42 ADD review meetings would be held at the end of the growing season. These would be used to (i) prepare the ADD report for presen- tation to the annual National Research-Extension Workshop (para. 3.43) and (ii) systematically review the various extension messages being issued to ascertain what updating and local specification is required. 3.43 Two crop-specific national research-extension meetings would be held each year, and an annual National Research-Extension Workshop would be held after the main growing season. The latter would be a strategy meeting to review problems occurring in research-extension linkages, agree on aspects requiring improvement, and propose suitable measures. To facili- tate discussion and decision-making, participation would be narrower than in the original national workshop, which was discontinued when its cumber- some size made it unproductive. Improvements would be sought in: Ci) the scope and effectiveness of the regular ADD workshops; (ii) the adequacy including suitable local specificity of crop recommendations in available extension publications and other aids; (iii) the programs, priorities, operation and organization of the ARTs; and (iv) the relevance of DAR's applied research program to ADD problems. To assist in clarifying the agenda for (v) above, the meetings would discuss reports prepared by each ADD on problems and future research needs, and by each commodity group on the major elements of its research and proposed future priorities. 7. Efficiency and Economy in Ongoing Program 3.44 Reduction in DAR's infrastructure network, elimination of redun- dant technical services, and relocation of staff on a research team basis would significantly reduce DAR's real level of expenditures on station overheads, general administrative costs, and staff travelling (Annex II, Tables T-12 to T-15). At project commencement, administrative and facili- ties overheads costs are expected to account for about 47% of DAR's recur- rent budget. As of PY5, these costs are expected to have declined to 37% of the budget. The proportion of the DAR budget allocated to research programs is expected to increase from about 31% in 1984/85 (pre-project) to 46% in 1989/90 (PY5). This reallocation of resources, and general reduc- tion in administrative and overheads costs is expected to result from several factors: (i) reductions in utilities costs as stations are closed;  - 28 - (ii) control of vehicle running costs (for largely non-research activities) as the fleet becomes centralized under the project; and (iii) reallocation of some labor time from plant upkeep to research trials as the physical plant is consolidated. Expenditures on staff salaries and benefits are expected to account for about 50% of the DAR budget throughout the project period. Over the five years of the project, the cost of sustaining ongoing types of activities (administration, implementation of research programs, implementation of technical services, and facilities overheads) would decline by a total of about MK1.1 m (US$0.8 m) in constant 1984 prices. Costs of ongoing activities would be 16.3% lower in Project Year 5 than in Project Year 1, in constant 1984 prices. Over the project period, this would entail a 27.6% reduction in the real cost of technical services, 26.8% reduction in real administrative costs, 15.22 real reduction in facilities overheads, and 4.3% real reduction in the cost of implementing ongoing research programs. These estimates are conservative and do not include the effect of efficiencies from introducing improved planning and task budgeting systems under the project. D. Project Cost Estimates and Financing 3.45 The costs of the above components are summarized in Annex II, Tables T-4 to T-8. The total cost of the proposed project including all capital and recurrent expenditures, and physical and price contingencies, is estimated at MK66.4 m (US$49.9 m equivalent), of which MK42.8 m (US$32.2 m) or 65% is foreign exchange. As the project involves improve- ments in DAR's ongoing program as well as introduction of new activities, the project cost includes the total DAR program for the five-year period. A project cost summary appears overleaf. 3.46 Project base costs have been estimated on the basis of July, 1984 prices, updated to reflect prices as of negotiations. Physical contingen- cies have been included at 15% for civil works, 10t for vehicles and equipment, 10% for utilities, to account for potential delays in station closures, 5% on vehicle operation and maintenance and 10% on adaptive research running costs. Local price contingencies for all items have been included at 11% for 1985, 10% for 1986 and 1987, and 9% thereafter. Foreign price contingencies have been included at 8% for 1985, 9% for 1986- 1988 and 7.5% thereafter. Though unit costs of institutional housing in Malawi are within the norm for Eastern Africa, the cost burden of construc- tion and maintenance on GOM has become untenable as Government fiscal constraints have increased. Housing costs under the project would be reduced by about 372 from those pertaining if the normal costs and entitle- ment structure were used. This would be accomplished by: (i) redesigning prototypes to reduce unit casts (financed under the Project Preparation Facility, Annex II, Table T-16); (ii) eliminating higher cost house types; (iii) rehabilitating rather than constructing wherever possible, and (iv) using the Government housing pool or renting rather than constructing consultants' houses. Project cost estimates assume such cost reductions. 3.47 Efforts have been made under this project to minimize incremental recurrent cost. This Is an attempt to tailor the project to Government's fiscal constraints (para. 1.03), which are expected to be protracted.  - 29 - Table 3.2: Project Cost Summary TFU COIITT _1 (gmo" '0000 CM 'mi S TOtal Z For"m kwg Lal Foreuln Ttal Lol Fouim Total E[ii Cots asmm. - - Mm mumma ml xmm. l. WIL EI MJICIL 54.3 924.0 m.3 40. 4".7 735.6 4 2 5. DMl IIIIMTICTE OISIAIMTIU 1M IIREIT 6.032.2 972A 15,734.6 4951.5 7P2951 11.U.6 62 31 C. 1AM N nIWMI An SYTS iwRgWfl /a 1. Fhh S 1DMETTI 164.4 I.125.3 1.2F1.7 125.1 34.1 971.2 p 3 2.' _O I t An KmEU 2.0 33.4 35.1 1.5 253.1 26.6 4 0 3. ULE1 NO MTA EIUIE 'b 920. 2.00.3 2461.3 0.2 14M5.9 1625.0 9 4 4. PULKATIUS IIELIOET 32.0 36.8 48. 24.1 27.7 51.7 53 0 lh-lotIa N UWAEET AN TST PIPJIS_ A 292.4 3r2H4.7 3tW.JI 219.3 2,454.7 2PP4.5 92 7 3. 3 STIfF ItEW DJ 332.5 p.3250 9.7.4 250.0 7,011.2 7261.2 7 19 E. ESMOI CLllMmnol Np UCalT IEAOII 1. INTDIISTZII.. E CES U. CAN - 134.9 134.9 - 101.5 101.5. 10 0 2. CEUC 13ENIM 117.2 709.4 34.4 103.1 53.4 .5 U 4 2 WhiTt al EE CILAIIEIIT ID AMCTC REAHCN 137.2 344.3 931.5 103.1 34.3 733.0 36 2 F. A1410 - EXW6111 LWlEIE. /c I * MTVIVE 1ES1ICN KIELEPIU 517.6 2.3X.1 2,662.7 404.2 1W741.2 2,152.4 a1 4 2. FA0R WBWSI inuRs 22.4 67.4 19. 168. 50.7 67.5 75 0 Wilola 1E551 - ETENIION L115E /c 560.0 2,392.5 2,952.5 421.0 1.793.9 2M219.9 a A B. 16 ONUB PROO0AN 1. IENTATIU CF W JEA5 P&IWM 5,326.4 1144.5 6U472.9 4,004.3 342.0 4e66. 13 13 2. IIIT4TDI IIF TW JICIL SEIIJCES 2p00.35 83.1 2444.7 1510.2 30.2 2t140.4 29 6 3. MlIIIISTlITIU 1Y208.3 I.pIZ.2 34131-9 M.3 1,446.0 2,154.3 Al 6 4. FACILITIES WIETI 3 IAnNINTIWE UU122.7 21Tt.2 3wV9.1 1t220.2 I.651.3 2171.5 53 I -Totd NI t M 3609 _MI I0.166.6 6,104.0 16271.6 7.644.1 4549.5 129233.6 3 32 Total ELINE COMS 17.575.2 32.556.Y 501302.1 13,24.4 24,473.9 37s693.3 65 100 PhsIca Coamin 133.7 2,703.8 3,737.5 7.2 2,033.0 2310.1 72 7 Price C nogtcia 4.l2.5 7562.6 12495.1 37.7 5161.1 9394.3 U1 25 Toal MULECT CTS 23 S41.4 42,823.3 66364.7 17.700.3 32.193. 4-933.3 65 i32 /a Stff rlwcation has baa inclodd .ir il lInratiucture Conolidatn ned frv eomt. lb Costs of librars civil works re covered der DO Inrastntmctwn Eoldati and IwroA,am,t. /c Praarsium o locaIIY specific extanm atrials is not costad saaratalv an vch costs am sinia ,dW are cved by. go M currant aratisn dim tum. wamorv 14. m5 17:37  - 30 - In light of this budgetary squeeze and the primary importance of achieving a durable long-term agreement to stop the real erosion of DAR's recurrent budget, the financing of this operation has been structured so that donors would finance all investment costs, and incremental operating costs which would be incurred early in the project. GOM would progressively increase its finance of the operating costs of new activities through reallocations from DAR's discontinued cost-ineffective activities. 3.48 This project provides a vehicle for agreement with GOM on the level of financing required for DAR's recurrent budget as a whole. Though earmarking funds for particular subsectors may not be generally preferred, it is justified where such a prescription is based on a thorough analysis of requirements for a program-wide effort in the subsector, so that distortions would not occur. The approach is warranted in this instance, considering (i) DAR's past real decline in recurrent resources (para 2.29) and (ii) Government's tendency to finance its share of externally-supported projects by switching resources from the Departiuent's regular activities. Agreement was reached during negotiations that at a minimum, the Government would sustain the 1984!85 value of its annual contribution to DAR's operating expenditures in real terms (para. 6.05(ii)). This would be sufficient to finance total DAR recurrent costs, including the full operating costs of new activities, by Project Year 5. A best case scenario of timeliness in introducing efficiencies would permit GOM to finance such operating costs at the following percentages per project year: 0, 0, 45%, 91Z, 100%. To protect against underfinancing due to delays in instituting efficiencies (primarily due to civil works delays), the financing plan assumes GOM financing of the following percent- ages of new activities' total operating costs over the project period: 0, 0, 27%, 71%, 100%. The annual plan and budget review instituted under the project would identify the maximum allocation to new activities within the above prescribed DAR budget, which could be financed by GOM in the coming year. Though credit savings could result, this is preferred to the risk of underfinancing. According to this conservative scenario, as of Project Year 3, GOM would wholly finance recurrent costs of the Agricultural Research Council (except for the first Triennial Review, which would be financed by IDA and potentially USAID), the planning and budgeting system, annual planning/review process, library and data processing operations, the publications program and scientific and office equipment maintenance and repair. As of Project Year 4, GOM would also wholly finance recurrent costs of adaptive research and research extension meetings including vehicle O&M (preparation of locally-specific extension materials would be financed by GOM from the outset). As of Project Year 5, the balance of recurrent project costs - for contract research and incremental building maintenance and repair - would be taken up by GOM (Annex II, Table T-9). 3.49 Under this financing plan, IDA would finance US$23.8 m (47.7%, net of taxes). GOM is planning cofinancing with USAID, of the order of $9.2 m (18.4%) for research; GOM would finance the balance, amounting-to $16.9 m equivalent (33.9%) (Table 3.3 overleaf). USAID participated in the negotiations for this project. It was ascertained at that time that USAID's financing, in the form of a National Agricultural Research and Extension Project, would be expected to be committed as of June, 1985.  - 31 - Table 3.3: Financing Plan NMI . ~ ~ SIE .IU Mam F MT_ n"TL H PoM FiarScird Pln be Iromiwt Cawamitu (KSS 01 0 U941D N liOI Mleb --1-.1 ______- Lwa (Excl. Amult I Amo u t Z hosZ I I For. sleh. Tam) gggm =mm AuMRum = .U mmm MWuinin ugUUingu A. MOIULEL ESEM OICOlI 25.1 2.5 927.7 92.6 48.9 4.9 1,001. 2.0 947. 54.0 3. DM INFIlSTURE COIULITXTIXU AG IN IW - - ,79M.6 99.3 103.6 0.7 IS90.3 I1.9 ? 9402.6 6,411.7 C. M MANEIEINT AO 5911 IrMDV_T /a 1. PR0ll MlIcOTEMN - - 1.#1.4 92.7 92.5 7.3 1,260.9 2.5 1M104.4 156. 2. PLRO I.UMIU AM 0EV - - 21.1 67.7 10.1 32.3 31.2 0.1 29.1 2.0 3. LISUMY AN 3** K E. /b - - 1,713.0 84.1 324.7 I5. 2037.1 4.1 1I949.3 0.4 4. IJLIrATIUS EUELE - - 21.7 34.6 44.4 0.2 .1 0.1 36.3 31.3 Sib-Toal MW Nfw MD 5 1TE I NS /a - - 2.t2.2 86.1 471.7 11.9 31397.9 d.l M119.6 213.1 3. 3 STAFF IE8II S.133.6 81.5 1.f.0 13.5 0.0 0.0 9,933.6 20.5 9,21.6 362.1 E. ESEMOI C.LUATJUN AN6 COINT E MD4 1. INIEAnTZUIL KECH CmllMnIU - - 125.6 100.0 - - 125.6 0.3 125.6 - 2. CNMTUCT llESCNI - - 77M.3 92.3 64. 7.7 834.3 1.7 667.9 146.4 sub-Tatl fEEf II cLLhIAT AO CEfRACT RESRI - - 396.0 93.3 64.0 6.7 90.0 1.9 813.6 146.4 F. RE9ACH - EllE1610M LINKWAS /C 1. ANMVF E bESAO in aWNT 19061.4 36.0 1,350.7 46.8 471.2 16.3 2963.2 5.6 275.2 0.1 2. ESEAWII EXTEIISIE UhI0DPS - - 46.2 54.8 38.2 45.2 84.4 0.2 62.3 21.4 Sib-Total ESARC - EXTENSIUN L21K A e bD1.4 35.8 1.39.9 47.1 509.4 17.2 2,967.7 5.J 2.138.0 6.7 6. 3M CEGNE PRII 1. IIULE01TIOt CF 1SEA 115 FRM - - - - 6460.0 110.0 6,260.0 12.5 1.15.2 5,174.7 2. 11RWJATINI OF TEC)IUIAL SEM:C - - - - Z.72425 100.0 20724.5 5.5 130.3 1,943.7 3. ANIIISTPATIN - - - - 3011.4 100.0 3,011.4 6.0 11153.5 1,157.3 4. FACITIES wIMTIP AN MINTEUE - - - - 3.690.1 100.0 3,690.1 7.4 2i155.1 13s5.0 Sub-Total BAR lOIN P M - - U1560 100.0 15686.0 31.4 5374.1 9,611.3 Totlu Disbursgt 9220.1 16.5 23,794.5 47.7 16.83.7 33.3 49.M.3 100.0 32,193.0 17,700.3 /a Stafr relocgtinn km bon included under NM Intrstreturo Cnwlidation ad lwrovOrt.. b Cots af librarv civil works are covered under D Intructoe CogoidaUim ad Imfrvr t. kc Preparation ot locallv swcitic extenin materials is not costed soparatelm n asdh costs arn minial ar re r cownd h 3M rd M current operation _it . Jaare 14, 195 17:40  - 32 - USAID would finance roughly two-thirds of DAR's training program and scientific technical assistance (aside from that in coffee research) including expertise in adaptive research and production economics, horticulture, and agroforestry (Annex I, Table T-2). IDA would finance the balance of training, including that in research management; technical assistance for planning and budgeting, library development, ARC advice and procurement; operating costs of activities initiated under the project until picked up by GOM (para. 3.48), and civil works, equipment, vehicles, furniture, and staff relocation. E. Government Cash Flow 3.50 Annex II, Table T-1O shows the Government's project-related cash flow over a period of 20 years. Receipts would consist of the proceeds of the USAID grant and IDA credit while expenditure would include all capitaland operating costs net of the operating and administrative cost savings resulting from the project. As fiscal revenues from indirect taxes and duties on construction materials, vehicles, and equipment would be negligible, they have not been calculated. It is unlikely that the project would generate other significant Government revenues as the income of the main ultimate beneficiaries (i.e., smallholders) is far below the taxable level. The cash flow to the Government would range from a deficit of MK3.2 m (US$2.4 m) in Project Year 1 to an inflow of about MK2.8 m (US$2.1 m) in Project Year 4. From the sixth year onwards, the recurrent costs net of capital replacements are expected to stabilize through the remainder of the project period at around MK5.0 m (US$3.7 m) per annum in constant 89/90 prices. These net Government outlays would average in real terms no more than the 84/85 annual budgetted amount for research. However, during years 6 to 20, funds would also have to be provided to meet the capital replacement costs of equipment and vehicles, which would average about M0K0.5 m (US$0.4 m) per year. The producers and consumers would be the primary beneficiaries of the project. However, because of a general association of national economic welfare with the Government's fiscal position, eventual fiscal benefits from the project could be expected to accrue to Government. IV. PROJECT IMPLEMENTATION A. Organization and Management 4.01 As the project would have no separate identity from the overall DAR program, its organization and management would be that pertaining to DAR as a whole. Creation of an ad hoc project-specific institution to manage the project would not be required. The Agricultural Research Council (ARC) which would be created, inter alia, to provide guidance on DAR's research priorities and program, and to manage contract research, would perform these services for the entire DAR program. The project would also lay the groundwork to establish an MOA Professional and Technical Training Office (para. 4.2i-L under the upcoming Agricultural Extension and Planning Support Project (para. 3.01).  - 33 - 4.02 In preparation for the project, DAR has been phasing staff into newly-created management posts. A well-qualified CARO supernumerary was selected in 1983, given increasing responsibilities for overall DAR man- agement, and full control of DAR in September 1984. A suitably qualified Deputy CARO (Research Programs) has been appointed. A suitably qualified Assistant Deputy CARO (Technical Services) is in post; it was agreed at negotiations that a suitably qualified Deputy CARO (Technical Services) would be in post no later than November 1, 1985. Suitably qualified sta- tion administrators would be appointed and in post prior to Credit Effec- tiveness (para. 6.03(ii)). Staff have been appointed in an acting capacity to all National Research Coordinator posts, all twenty-two Commodity Team Leader posts, and to head up three of DAR's proposed four technical ser- vices. Agreement on a key staffing schedule (Annex I, Table T-1) was confirmed at negotiations (para. 6.05(i)). DAR has also produced a staff list for the proposed Commodity Research Teams and ARTs. As movement of 38 (60%) of DAR's professional staff is entailed, implementation of this reorreorganization will be phased in as housing and laboratory facilities are made available under the project. (See Chart C-2 for civil works implementation schedule and scheduled movement of staff). 4.03 GOM agencies have had difficulty recruiting and retaining qualified Financial Controllers due to the higher incentives in the private sector and the poor supply of suitably qualified applicants. At negotia- tions it was agreed that Government would ensure that a Malawian coun- terpart would be assigned to the consultant Financial Controller. To facilitate his retention, DAR would, in addition to providing training to accounting technician level, provide the Malawian counterpart with such a grade as the Government and Association consider satisfactory once he assumes line responsibilities. Agreement to this effect has been reached during negotiations (para. 6.05(ix)). 4.04 The proposed ARC would perform significantly different functions from Malawi's National Research Council (NRC), which organizes external financing for individual research projects in several sectors. Never- theless, in the area of structuring external assistance, there could be slight overlap if the ARC and NRC activities were not coordinated. Con- sidering the importance of clarity about ARC's responsibilities and the need to avoid duplication of effort (a) a Government proposal on the structure, composition, and functions of the ARC, including its Secre- tariat, and its links with the NRC would be formulated and reviewed by IDA prior to negotiations (para. 6.01(i)), and (b) formation of the ARC would be a condition of Board Presentation (para. 6.02). The establishment of the ARC Secretariat and its full staffing at professional level would be a condition of credit-effectiveness (para. 6.03(i)). 4.05 An IDA staff member would attend the first meeting of the Coun- cil, as an observer, to explain the details of IDA's support for the proj- ect. The Council would meet as often, probably quarterly, as would be necessary to carry out iLs duties effect- vely (para. 3.05 - 3.06). B. Physical Consolidation and Improvement 4.06 Civil Works. The Ministry of Works and Supplies (MOWS) through its Building Department would be responsible for the overall management of construction under the project. Construction and daily supervision would be performed by private contractors and by clerks of works supplied by the  - 34 - Architect. MOWS would be responsible for monitoring and evaluating bids and awarding contracts, based on technical evaluations carried out by the proposed DAR procurement unit (para. 4.33). Detailed designs, working drawings and tender documents for civil works under the project are being prepared by a firm selected on technical grounds by GOM. The first phase of this design contract, relating to construction to be put out to tender in Project Year 1, is being financed by a Project Preparation Facility (Annex II, Table T-16). The second phase of the design contract, which would come into effect upon credit-effectiveness, would pertain to the remaining civil works. At negotiations, a plan for the disposition of sites not to be retained by DAR would be discussed and agreed. 4.07 Staff Movement. Relocation of all staff would be essentially completed by the end of Project Year 4, except for the ARTs and those who would be overseas for training (Chart C-2). DAR is preparing a detailed staff relocation program to ensure that these staff shifts are coordinated, movement of goods and equipment organized efficiently, and the research program is not unduly disrupted; this will be reviewed at negotiations. By mid-PY4, Chitedze would house five out of DAR's seven National Coordi- nators, and be the headquarters for 12 out of 22 Commodity Research Teams and all central technical services. 4.08 Laboratory, Office and Farm Equipment and Vehicles. As part of DAR's annual review and planning exercise, all equipment and vehicle requirements for the upcoming fiscal year would be reviewed by DAR before preparing tender documents (Annex III). This would allow DAR to phase equipment procurement with civil works completion and relocation of the Commodity Teams and ARTs. The scientific equipment (amounting to about MK1.25 m or US$ 0.94 m equivalent - base costs) would be installed at DAR's three full stations, primarily at Chitedze, and at the two substations. C. Management and Systems Improvements 4.09 Research Program. Planning and implementation of the appLLed research program would proceed in five stages: (i) development of overall priorities in a national master plan; (ii) articulation of commodity priorities; (iii) annual program planning; (iv) implementation of trials; and (v) suitable quality control and review of results. The research program FY85/86 has already been reviewed with the Association in light of the need for: (i) clearer definition of priorities for the various commodities, in line with their national importance and the research that has already been done; (ii) clarification of priorities for adaptive research, to benefit smallholder farmers; and (iii) work to improve efficiency of input utilization, including timing, type, and quality of inputs, to improve cost-effectiveness. The program would also indicate the kinds of collaboration and help that would be received from the interna- tional and regional research programs, e.g., with ICRISAT on groundnuts, sorghum and millet, Bunda on beans, and CIMMYT on maize. A revised detailed FY85/86 research program will be brought to nego-iations for review. Longer-term planning of the research programs would be a function of the research master plan to be developed under the project.  35 - 4.10 Development of the master plan would take nearly three years. Agreement was reached at negotiations that the master plan would be com- pleted and dispatched to IDA for review and comment by March 31, 1988 (para 6.05(vii)). The first phase would be for the ARC to set the major goals to which Malawian agricultural research should contribute. These would estab- lish a context to evaluate past research results and set more explicit priorities for the applied research programs. In the context of such goals, DAR would assess the results of past research to ascertain what useful knowledge and technology already exists, and provide this informa- tion to ARC as background for the Master Plan. This evaluation would focus particularly on research since 1978, when annual reports ceased to be pro- duced even by individual stations. The ARC Secretariat with DAR assistance would then identify gaps in the research program and unresolved issues that would need to be addressed, including crops that require particular focus. 4.11 It is expected that a considerable proportion of the commodity programs would concentrate on crop improvement, including the testing of varieties suitable for intercropping, pest and disease resistance and varieties of specific maturities. Research to increase the efficiency of inputs, e.g., fertilizer use, would be an important part of the research program as would work on intensifying production in the more adverse ecological areas. 4.12 The steps involved in the proposed annual program planning and review exercise are indicated in Annex III. This exercise would take place before September 1 each year. beginning in 1985. Agreement was reached at negotiations that the ARC review of DAR's proposed program and budget would occur by end-October each year, beginning in 1985 (para. 6.05(v)). By end- November of each year beginning in 1985, the ARC would send a supporting statement to the Treasury and to IDA with the DAR budget submission, in which priorities for DAR expenditures would be highlighted and ranked. The Treasury (Undersecretary for Revenue) would participate in the annual ARC program and budget review. An informal understanding has been reached in Government that a satisfactory rationalization of the DAR budget at this stage, supported by clear priorities and task budgeting, would obviate the need for cuts at item level during the January Treasury review of MOA's budget submission. This would prevent distortions in DAR'S program from emerging at that stage. Further, the annual ARC review with Treasury participation, and in which IDA would participate as an observer, would undertake to ensure that the real value of DAR recurrent budget is, at a minimum, being sustained (para. 3.48). 4.13 Agreement was reached at negotiations that the first in-depth Triennial Review would take place soon after preparation and endorsement of the research Master Plan, and no later than March 31, 1988 (para. 6.05 (viii)). The ARC would develop the terms of reference for the reviews, and appoint the members of the review team, receive and review the team's report. 4.14 Library and Data Base Development. Implementation of the library component would proceed along four tracks: (i) institution of library systems, including DAR-wide budgeting improvements; (ii) development of local library management capacity; (iii) construction and relocation into suitable physical facilities; and (iv) acquisition of books, journals and  - 36 - related materials to upgrade the core collection. The consultant librarian and local counterpart would develop a work program in Project Year I to catalog and organize the collection, including binding or microfiche purchase for back journals; institute a library budget; plan circulation and reference procedures and software; and develop recommendations to stimulate library use. 4.15 The Joint World Bank/IMF Library has agreed to assist the Librarian Consultant in procurement of publications and their shipment to Malawi, and in cataloging new acquisitions. Specialized assistance in cataloging the current collection would be financed under the project, to permit the Librarian Consultant to focus attention on establishing appro- priate reference and management systems. It is e-pected that initial stock-taking to ascertain gaps in the collection would be completed in the first 9 months of Project Year 1. About 40X of new acquisitions financed under the project would be ordered in Project Year 2 and the balance in smaller annual installments. DAR Library Committee to be instituted und-r the project would annually review the library's program, with particular attention to establishment and management of appropriate planning, budgeting and circulation systems, and would provide guidance on acquisitions (See Chart C-2 for details of implementation). 4.16 Publication Program. Inputs to DAR's Annual Report would be reviewed by the National Research Coordinators within the Department's proposed annual research evaluation and planning exercise (Annex III). A research editor in the office of the Deputy CARO (Administration), appointed under the project, would be responsible for final preparation of the report between September and March each year. 4.17 An internal review process would be established under the project to evaluate and provide feedback on submissions for the proposed DAR Research Bulletin and international journals (para 3.23). This would include review of commodity papers by the Commodity Team Leaders and by individuals in the same professional discipline across commodities. The DAR Research Editor would be available to assist in finalizing these submissions in times of the year not devoted to production of the Agricultural Handbook (para. 3.39) and Annual Report. 4.18 The Annual Report would be printed privately, to ensure timeli- ness. The Government Printer would subcontract this printing without a fee for service. DAR would contract with the MOA Extension Aids Branch to print the proposed Research Bulletin and revised Agricultural Handbook. The project would also fund researchers' fees for submission to international journals. D. Technical Assistance and Training 4.19 The Librarian, Planning and Budgeting Specialist/Financial Controller, and long-term scientific specialists would fill line posts while their counterparts are being trained overseas. Such technical assistance would be phased to permit sufficient overlaps (from 0.5 to 1 year) before and after the local staff's training to permit briefing and collaboration. The Programming and Budgeting Specialist/Financial Controller is expected to be in post four months prior to the planned  - 37 - credit effectiveness date, and would design both a new budgeting system and a phased program to introduce the system. In the first 18 months of the project, he would train staff to use the new system and help manage its institution. He would be recruited initially for 2.5 years to fill the line function of Financial Controller. As the project progresses his duties would shift from performing a line function to advising a local counterpart trained under the project (para. 4.03). During negotiations agreement was reached that by April 30, 1987, a review would take place between the Government and the Association to ascertain whether the consultant's contract should be renewed for the latter 2.5 years of the project and whether he would at that stage, i.e., after October 1987, (i) continue to operate as the Financial Controller, (ii) begin to function as an advisor, or (iii) shift to an advisory role during the term of the second contract (para. 6.05(ix)). 4.20 To ensure that key advisors - particularly the ARC Advisor, P&B Specialist/Financial Controller, and Librarian - would not form a shadow management" structure, which could undermine the authority of the CARO, they would be hired as individuals rather than from a firm. Terms of reference for these posts have been sent to the Associetion for review and comment. DAR is preparing short-lists of candidates. Agreement was reached at negotiations that the posts of ARC Advisor, Librarian, and Procurement Specialist, and Program and Budgeting Specialist/Financial Controller would be filled by credit-effectiveness (para. 6.03(iii)). DAR has made its initial selection of candidates for interview for the posts of ARC Advisor, Programming and Budgeting Specialist and Librarian. Funds to bring candidates to Malawi for interview and briefing have been provided under a Project Preparation Facility* Consultant scientists, to be financed by USAID would be provided under contract with a United States university. 4.21 During negotiations agreement was reached that a Training Advisor to be financed by USAID would be in post not later than end-July, 1985 (para 6.05(iv)). Initially this advisor would be financed out of USAID's ongoing National Agricultural Research Project. As of October, 1985, it is expected that the financing would be picked up by the proposed USAID- financed National Agricultural Research and Extension Project. This advisor would initially assist DAR to implement the training plan for Project Year 1, based on needs assessed and the training program developed during appraisal. To a lesser extent, he would advise the Ministry on the establishment of an MOA Professional and Technical Training Unit to be instituted and staffed as a condition of effectiveness under the proposed Agricultural Extension and Planning Support Project. This office would service both DAR and DOA. At effectiveness of the extension and planning support project (estimated for November 1, 1985), his duties would broaden to advising this new MDA Training Unit. 4.22 Planning of the short-term training program would continue on from the annual staff evaluation process (para. 3.26). Commodity Team Leaders and National Coordinators would meet at least annually with the Deputy CARO (Technical Services/Administration) to identify the main areas in which training would be needed, the number of candidates and how long individuals could be freed for training. The office of Deputy CARO (Administration) would be responsible for providing training requests to the proposed Training Unit. The Deputy CARO (Research Programs) would be consulted on the phasing of training to minimize disruption of research. DAR is preparing an indicative training calendar for Year 1 of the project which would be reviewed at negotiations.  - 38 - E. Linkages with the Extension System 4.23 Establishment and Management of the Adaptive Research Teams. Project Years 1-5 would be devoted to training 8 ARTs in the farming systems approach and establishing them. ARTS would be established at headquarters and in three ADDs (Lilongwe, Kasungu, and Blantyre) in or before Project Year 1; in Mzuzu and Salima ADDs by Project Year 3; in Ngabu in Project Year 4; and in Karonga ADD in Project Year 5. A schedule of ART M.Sc. training has been agreed with Government to maximize both continuity in team participation and the formal preparation of team members before they are put into the field. 4.24 The ARTs would operate as part of the ADD staff, in terms of day- to-day operations, and part of DAR in terms of technical back-up. The budget for their operations would be assigned from DAR to the ADDs. Administratively, each ART would be responsible to the ADD Program Manager and would form a section within the ADD structure. The ART Team Leader would join the existing ADD Management Team, which comprises all Section Heads and plans and implements the ADD Work Program. This would give the ARTs an opportunity for regular, substantive discussions with other ADD staff. The DAR National Adaptive Research Coordinator would be responsible for liaison between the different ARTs and would facilitate communication and collaboration between the CRTs and ARTs. 4.25 Before the beginning of the growing season, the annual work plans of the ARTs would be discussed and agreed upon at a meeting of the ADD Management Team, at which the National Adaptive Research Coordinator would be present. Meetings of the ADD Management Team at the end of the growing season, also including the National Adaptive Research Coordinator, would evaluate the work of each ART in relation to the work agreed upon earlier. 4.26 The Triennial Review (para. 3.18) would assess the progress of Adaptive Research in the initial three ADDs in which they were first established, and ascertain whether significant changes need to be made in the ARTs' structure and operations (para. 6.05 (viii)). This evaluation would build upon the annual research-extension evaluation process at national and ADD levels (paras 3.40 - 3.43). The Triennial Review would focus on: (i) the ARTs links with ADD and research staff and the way the ARTs have functioned on the ADD Management Team and in the ADD workshops; (ii) the ability with which the ARTs had been able to diagnose the problems of farmers and feed back these findings to the research staff; (iii) the nature and results of trial work on farmers' fields, and (v) the ARTs' progress in moving toward formulation of productive new recommendations. 4.27 Locality-Specific Extension Recommendations would be prepared by the ART Team Leader in each ADD, reviewed inter alia by the ADD Extension Subject Matter Specialists and approved by the ADD Program Manager (Chart C-2). The recommendati ns would then be formulated into suitable extension messages by the ADD Subject Matter Specialists. When these extension recommendations require changes in smallholder input packages under the credit system, ADD SMSs would: (i) work with the ARTs to design the new packages; (ii) arrange with ADMARC for their adjustment; and (iii) train extension field staff in their best use. In those ADDs awaiting estab- lishment of adaptive research teams, ADD staff would undertake to develop interim locality-specific recommendations, based on existing technology and  - 39 - available information regarding the ADDs' particular problems. To assist, the ART National Coordinator would identify adaptive research recommenda- tions potentially suitable to other ADDs' conditions, and circulate this information to their Senior Agricultural Extension Officers for incorporation in ADD extension material. 4.28 Workshops. Agendas for the ADD meetings would be drawn up by the ADD Management Teams, with inputs from the extension staff and ARTs. Participation by the CRTs would be organized by the Deputy CARO (Research); requests would be sent to him and copied to the CARO, ART Coordinator, and Commodity Team Leader concerned. Such routine requests would be submitted by end-August each year. Requests for ad hoc or emergency participation would be submitted directly to the CRT. 4.29 Participation in the National Research-Extension Workshops would be at a high level and small enough to allow for consensus on overall strategies, priorities, and ameliorative measures. Participation would be restricted to: the CARO, two Deputy CAROs, CAO, Chief Veterinary Officer, ART Coordinator and Team Leaders, other National Research and Services Coordinators, the ADD Program Managers (or a Senior representa- tive), the ADD Principal Agricultural Officers, and a representative of the ARC. Though this would not include the ADD Subject Matter Specialists, their attendance would increase total participation from about 35 to much as 90, an impracticably high number for the purposes outlined. The agenda of this workshop would be agreed by the CARD and CAO no later than May of each year and would address the issues previously noted (para. 3.43). Recommendations from the meeting would be prepared by the office of the CARO, cleared by the office of the CAO, and circulated to all participants for wider distribution to all ADD extension staff, no later than end-September each year. F. Implementation Schedule 4.30 The project execution period would be May 1, 1985 to April 30, 1990 (Chart C-2). The major controlling factors in the project's overall implementation schedule would be the timing of the cropping season (November-May) and the civil works construction schedule. Timing of staff relocation and equipment procurement would follow directly upon substantial completion of civil works. 4.31 Evaluation and planning of the research program, preparation of DAR's annual report, preparation of extension materials, and planning of the DAR inservice training program would be timed during the dry season (June-October). G. Procurement 4.32 Procurement of project requirements would be in accordance with World Bank Guidelines and is summarized overleaf. 4.33 Procurement would be managed by a suitably qualified expatriate Procurement Specialist recruited from a general procurement agency and at least one Malawian procurement officer, satisfactory to the Association and in post by credit-effectiveness, whom he would train (paras. 6.03(iii and iv)). This DAR procurement unit would be responsible for expediting all procurement under the project, including preparation of bid evaluation reports to be sent to the GON Tender Board for its review. Civil works  - 40 - estimated to value $1.0 m or more would be procured under International Competitive Bidding (ICB). Construction and renovation of the Chitedze Research Station and Lilongwe ART; Lunyangwa, Mkondezi, Baka, Meru, Research Station and Lilongwe ART; Lunyangwa, Mkondezi, Baka, Meru, Nchenachena; and Chitala, Lifuwu, and Bembeke; amounting to about MK10 i (US$8.2 m) (including contingencies), would be bulked into one contract and procured by International CompetitiveBidding (ICB). Other civil works construction and renovation would also be grouped into suitable contract packages. These would be procured by Local Competitive Bidding (LCB) in accordance with Bank Group Guidelines, as they consist of small, scattered works, which would not attract international bidders. The average size of contract to be procured locally would be about US$0.4 m equivalent; more than half would be valued at MKO.2 a (US$0.15 m) or less (including contingencies). For civil works contracts estimated to cost US$1 X and above, documents would be submitted to the Association for review before tender and award. There are numerous local contractors capable of executing the required smaller works. Table 3.1: Consolidation of DAR Infrastructure Project Element Procurement Method Total ICB LCB Other N.A. Cost (US$ m) Civil Works 8.2 2.7 10.9 (8.2) (2.7) (10.9)1/ Staff Relocation .1 .1 (.1) (.1) Equipment, Vehicles, 3.35 .5 .05 3.9 Furniture, Books (3.35) (.5) (.05) (3.9) Training and 17.1 17.1 Technical Assistance (7.7) (7.73 Operating Costs .3 17.6 17.9 (.2)2/ (1.0) (1.2) 11.55 3.2 17.45 17.7 49.9 TOTAL (11.55) (3.2) (7.95) (1.1) (23.8) 1/ Figures in parentheses are the respective amounts financed by IDA. 2/ Recurrent costs of contract research. 4.34 Equipment, Vehicles, Materials, and Services. Procurement of all equipment, vehicles, and furniture would be bulked to the extent possible, within compatible contract packages. Contracts for scientific equipment, farm equipment and machinery, vehicles, and office equipment and furniture estimated to value S150,000 or more would be procured by ICB. A preference limited to 15% of the c.i.f. price of imported goods, or the rustoms duty, whichever is lower, would be extended to local manufacturers of such items in the evaluation of bids. Such contracts estimated to value less than $150,000 but more than $25,000 would be procured by LCB in accordance with Bank Group Guidelines not to exceed $500,000 in aggregate. Equipment and  - 41 - furniture contracts estimated at $25,000 or less would be procured locally using prudent shopping, including at least three price quotations, or through the Central Government Controller of Stores of the Stores Depart- ment, not to exceed $150,000 in aggregate. Contracts for vehicles and farm machinery and equipment would require the supplier to maintain adequate after-sales inventory of spare parts. Books and publications would be procured through direct purchase from sole suppliers or competitive shop- ping where several suppliers are available. For contracts for equipment, vehicles, furniture, or materials exceeding $150,000 in estimated value, documents would be submitted to the Association for review before bidding and award. Technical assistance would be procured in accordance with World Bank Guidelines. Similar criteria would apply in selecting consultants for contract research, although these consultants would be local. R. Disbursement 4.35 The schedule of expected disbursements over 5.5 years is given in Annex II, Table T-11. The closing date would be April 30, 1991. The proposed disbursement schedule is slightly more rapid than the country disbursement profile related to Malawi Agricultural area development projects, which shows actual disbursement at 98% at PY6 but lower rates (14% at mid-PY2 and 36% at mid-PY3) earlier in the project period. A more rapid disbursement rate for this project, peaking at PY3 (15% by mid PY2 and 46% by mid PY3) is due to the lumpy civil works investments character- izing 48% of the costs of the credit, which would be largely completed by end-PY3. The anticipated disbursement schedule assumes 1.5 year's delay in construction of major civil works from the schedule which appeared realis- tic during appraisal. There are advantages to be gained from adhering to this pace, in terms of the onset of (i) economies from consolidating DAR's infrastructure (para. 3.44) and GOM's consequent ability to finance new DAR operations through reallocations within the budget by PY5 (para. 3.47); and (ii) benefits from moving researchers into commodity teams. Differences in the management of project procurement from that in IDA-financed area- development projects - particularly the establishment of a procurement unit of a suitably qualified expatriate specialist and Malawian counterpart - should facilitate more rapid procurement and disbursement than has charac- terized past investments. Use of ICB for the bulk of civil works, equip- ment and vehicles procurement should enhance timeliness of implementation over that characterizing LCB and force account implementation in past Malawi projects. 4.36 Disbursement of funds from the credit would be as follows: Proposed Disbursement Amount Percentage (net of US$ m taxes and duties) (1) Civil works 9.4 100 (2) Staff relocation (transfer allowances) 0.1 100 (3) Vehicles, equipment, spare parts and publications 3.4 100  - 42 - Proposed Disbursement Amount Percentage (net of US$ m taxes and duties) (4)(a) Technical Assistance and Training [other than 5.7 100 (b) below] (b) Contract research and small items of local training 1.0 100 (5) Operating Costs of new activities 1.2 100 (on a declin- ing number of activities (para 3.48 and Annex II, Table T-9)). (6) Refunding of Project Preparation 0.6 Repayment to Association Advance of all charges on PPF account as of effec- civeness. (7) Special Account 0.4 Amount deposited to ini- tiate Special Account. (8) Unallocated 2.0 Total 23.8 Disbursement against (1), (3), and (4)(a) would be against full documenta- tion. Disbursements against (2), (4)(b) and (5) would be against State- ments of Expenditure (SOE), signed by the DAR Financial Controller and certified by the CARO. Documents for expenditures covered by SOEs would be retained by the Borrower and made available for IDA inspection during normal project supervision. In order to expedite the flow of funds for disbursement, a Special Account (Revolving Fund) would be established in US dollars with the Reserve Bank of Malawi or at such other location satisfac- tory to the Association. The initial deposit of the Account would be approximately $0.4 m, equivalent to the first of four months of expendi- tures averaged for all categories. A condition of Credit effectiveness would be that the Special Account has been opened by the Government (para. 6.03 (v)). I. Accounts and Audits 4.37 During negotiations, agreement was reached that DAR and ARC would each maintain a separate account for their activities, separating all development expenditures from recurrent budget expenditures. Both these accounts would be managed by DAR's Financial Controller. With the tech- nical assistance and counterpart training being provided under the project to improve DAR's planning and budgeting procedures and financial control, the Department is expected to have adequate capability to maintain project accounts. DAR would have those accounts audited by independent auditors acceptable to the Association. The annual audit of project accounts would include a specific audit of SOEs. DAR would submit audited project finan- cial statements, together with the auditors' comments, to the Association within six months of the close of each fiscal year (para. 6.05(iii)).  - 43 - J. Supervision and Reviews 4.38 Three types of reviews would be established under the project: (i) an annual DAR and review exercise (paras. 3.16-3.17 and 4.12); (ii) the ARC review of DAR's proposed plan and budget (paras. 3.17 and 4.12); and (iii) triennial in-depth reviews of the research program (paras. 3.18 and 4.13). 4.39 During negotiations, agreement was reached that by September 30 of each year, beginning in 1985, DAR would make the report from its annual planning and review exercise available to the Association (para. 6.05(v)). While the Association would not participate formally in DAR's annual plan- ning and review exercise, it would review the planning and budget documents and give comments to the DAR directorate. Discussion of the results of the annual review. including research program proposals, the annual training program, and equipment requirements, would form a substantial part of supervision missions. The Association would participate as an observer in, and review documentation from the annual ARC program and budget review (para. 4.12) and would participate in the in-depth triennial reviews. IDA would also participate in the interim review of adaptive research develop- ment. During negotiations agreement was reached that within six months of the completion of the project, DAR would submit a project completion report to the Association (para. 6.05(x)). V. JUSTIFICATION, BENEFITS AND RISKS Justification 5.01 While Malawi's investment in the extension system, through NRDP, has been expanding rapidly since 1978, the incremental investment in agricultural research has been comparatively small (para. 1.13). The success of the extension service depends very heavily on the availability of extension messages suitable for the economic and social conditions of both the small commercial and the subsistence farmers of Malawi. Without the right kind of research to provide these messages, the extension system will not be able to increase or even maintain its credibility among the farmers. The present and planned expansion of the extension service and its efforts to reach more widely into the farming community will exhaust the stock of research information already available in the fairly near future. A more vigorous research program is vital to meet this need, focused on the small farmers' key problems and capable of developing locally relevant solutions. 5.02 Malawi presently spends about 0.67% of its agricultural GDP on research (para. 1.13). This is inadequate considering agriculture's importance in .:he national economy (para. 1.02). The strong dependence of the country on agricultural production would warrant the increase of this investment to at least 1% of its agricultural GDP. As a recent World Bank Agricultural Research Sector Policy Paper (1981) indicates, for a country dependent on agriculture and in which the agricultural research systems are still poorly developed, an annual expenditure (capital plus recurrent) of 2% of agricultural GDP would be a desirable target. In Malawi's case, this type of increase may require a 10-15 year period. However, such an  - 44 - increase could be justified only by increasing the efficiency and effectiveness of the research system. The reorganization and development of the system under the proposed project is designed to justify that increase in resources. Benefits 5.03 As in most other Bank Group assisted agricultural research projects, no attempt has been made to quantify the economic rate of return, ex ante, due to: (i) inherent uncertainties regarding the timing and value of research findings, and the timing and extent of adoption of research findings by farmers; (ii) difficulties in dividing potential benefits between research and complementary investments (e.g., planning, extension, training); and (iii) the problem of assessing the value of negative research results, which add to the pool of knowledge and frequently benefit subsequent research efforts. 5.04 Nevertheless, while it may not be possible reliably to forecast the economic benefits from research, it is possible through a break-even analysis to come to some judgment regarding the soundness of the proposed level of additional research expenditures above what would otherwise be expended without the project. For example, merely to break-even in economic terms (i.e., for the level of additional research expenditures to yield a minimally satisfactory economic rate of return of say 10%), net smallholder agricultural GDP would have to grow by an additional 0.1% per annum on average over the next twenty years. This compares with an average annual real increase of 4.3% in smallholder production since 1980. As project induced growth seems highly likely to exceed 0.1% per annum, the level of additional research expenditures would appear to be quite modest and well-justified. 5.05 Further, reinforcing this conclusion is the fact that ex post evaluations have virtually always shown high returns from research. In Latin America during the late 1960s the economic rates of return for research on maize, sugarcane, wheat and cotton are reported to have ranged between 35% and 90%. I/ A study of the green revolution in India 2/ gave a rate of return to research of 72%. Estimated economic rates of return for developing countries average 42% for applied research and 60% for scientific research related to agriculture. 3/ 1/ Arndt, T.M., D.G. Dalrymple and V.W. Ruttan (eds.), Resource Allocation and Productivity in National and International Agricultural Research, University of Minnesota Press, 1977. 2/ Kahlon, A.S., Cost-Benefit Analysis of Agricultural Research Projects,Punjab Agricultural University, 1977. 3/ Evenson, R.E., and Y. Kislev, Agricultural Research and Productivity, New Haven and London, Yale University Press, 1975.  - 45 - 5.06 Moreover, it is possible to describe the potential benefits in qualitative terms, by developing a series of key indicators of progress toward institutional objectives that should yield relevant, cost-effective, and adaptable research. In the context of this project, progress should be assessed toward developing: (i) a more efficient research system with closer links with extension and the farmer, and (ii) a research program that will support the agricultural development goals of the country and the priority needs of small farmers. 5.07 Benefits within three to five years would arise from critical evaluation and adaptations of past research. Immediate evaluation of research covering the past six to eight years shouild culminate within 18 months in updating of the Agricultural Handbook of Malawi (para. 3.39), to get the latest recommendations out to extension staff and in routine production of annual reports to provide findings to extension Subject Matter Specialists. Further, this evaluation would assess the usefulness of available research results for the farmers' present problems, and form a basis for the re-orientation of extension messages toward more specific agro-ecolopical regions and more clearly defined farming systems. The adaptive research teams would provide additional qualitative information on the resources of the different groups of farmers, and the constraints they face in adopting existing extension messages, and would modify available messages to better suit the range of conditions. Planning of the adaptive research program is beginning prior to effectiveness, so that some trials would take place in Project Year 1, yielding verified recommendations by Project Year 4. 5.08 Overall, the project would focus research on on-farm problems and link research and extension into an integrated system, through continuing meetings of applied researchers, adaptive researchers and extension staff, priority-setting at field level, and development of technological adaptations suitable to local conditions. 5.09 Major gaps and potential priorities for future research should be identified during the initial year of evaluation, and continuously by the adaptive research diagnostic work. These should lay a basis for preparing DAR's research Master Plan, which would set priorities in light of national goals, known local problems and constraints and inputs that can be mobi- lized from both DAR and non-DAR sources. This process should yield a far better focused and cost-effective research program with greater benefits in terms of foreign exchange earnings, smallholder incomes, and basic nutri- tion. DAR's efficiency in using research resources would also be improved by developing a program and budgeting system that would plan the use of financial resources and monitoring of expenditures in terms of objectives and tasks. Costs of DAR'F ongoing activities are also expected to decline by about 16% in real terms over the project period, largely due to reduc- tions in station overheads, general administrative costs, and vehicle operating costs as facilities are closed. The manpower development program would develop the essential human capital of the agricultural research system and the improved physical facilities, promotion structure and library facilities would tend to attract and retain trained scientists. 5.10 In qualitative terms, some of the prospective benefits that could be expected from a well-managed and properly focussed research system in Malawi would include:  - 46 - (i) recommendations that would optimize the use of purchased inputs such as fertilizers and other agrochemicals; (ii) selection of improved varieties of important crops that would be well adapted to the various agroecological regions of the country and would have resistance to important pests and diseases and good storage qualities; (iii) crop husbandry systems that would ease major constraints of the small farmer such as labor shortages at peak periods; (iv) a range of options for the small-scale farmer (made available via the extension service) that would enable him to maximize the return on his labor and land resources, and increase his income; (v) improved farming systems for presently underutilized land; and (vi) conservation and improvement for utilization of the natural resources of the country in the shape of soil, water and forestry. These would be longer term results: it would be five to ten years before new varieties and related agronomic regimes of fertilizer, pesticide and herbicide applications developed under the project would appear in the field. Risks 5.11 The focus and productivity of research would depend on: [i) timely reorganization and relocation of commodity researchers into multidisciplinary teams, (ii) consolidation of DAR's infrastructure to free up resources for the incremental activities proposed, and (iii) the success of DAR's proposed staff development program, including timely recruitment of technical assistance and sufficient overlap with Malawian counterpart staff; institution of a suitable technical career stream and timely degree training. Significant risks affeeting any such long-term institutional development effort would include under-funding preventing the Department from adhering to a continuing research program, poor execution of research programs, and the difficulties of developing suitable technology for the subsistence farmers, particularly in the adverse ecological regions. The technical difficulties are exacerbated by the fact that the external trans- port system on which Malawi depends leads to high input costs and low export prices. Major increases in production will require additional agricultural inputs and while research can make their use more efficient, it cannot obviate the need for them. 5.12 This project has addressed Lhe issue of adequacy of funding directly by obtaining an agreement from Government that at a minimum, the 84/85 real value of DAR recurrent budget would be sustained. This would be sufficient to continue to finance the systems and other operating improve- ments introduced under the project. While this is a modest level of finance and would not allow for significant incremental research expendi- tures, it is realistic and represents a more durable agreement at this stage, in light of GOM's fiscal constraints, than a request to increase the DAR budget in real terms. At a later stage, after DAR has reorganized and demonstrated its improved efficiency in managing its resources, GOM should be more favorably disposed to real increases in DAR's recurrent budget.  - 47 - Environmental Effects 5.13 Research programs would be designed to develop technclogies which safeguard the delicate balance of agro-ecosystems, and at the same time minimize health hazards. Sound integrated pest management practices will be developed for major pests and diseases. Farming system research pro- grams will investigate methods of soil management which will ensure soil productivity and conservation, including the application of minimum tillage to production systems. Agroforestry development would maximize use of integrated farming systems and aim to increase soil and water conservation as well as food, fuelwood, and fodder production. Further, the restoration of the diversity of cropping in Malawi, which is expected to be a benefit from this project, should build up the fertility of the soil due to more even mineral use, and decrease erosion through better soil coverage and varied root depth. VI. AGREEMENTS AND RECOMMENDATIONS 6.01 The following step was taken prior to negotiations: A Government proposal on the structure, composition, and func- tions of the ARC, including its Secretariat and its links to the NRC was formulated by GOM and reviewed by the Association (para. 4.04). 6.02 The following would be a condition of Board Presentation: The Agricultural Research Council would be formed (para. 4.04). 6.03 The following would be conditions of credit-effectiveness: Ci) The Agricultural Research Council Secretariat would be estab- lished and fully staffed at professional level (para. 4.04). (ii) Suitably qualified Station Administrative Officers for Chitedze, Bvumbwe, and Lunyangwa would be in post (para. 4.02 and Annex I, Table T-l). (iii) Consultants to be in place throughout Project Year 1 would be in post (para. 4.20); (iv! DAR procurement officer satisfactory to the Association would be in post (para. 4.33). (v) The Special Account for disbursement of the credit would have been opened by the Government (para. 4.36). 6.04 Prior to disbursement against estate coffee contract research, TRF would provide DAR with an outline of the support that TRF could provide and, DAR would provide a staffing plan (para. 3.35). 6.05 The following other agreements were reached during negotiations: (i) The key staffing schedule for DAR would be confirmed and staff would be in post accordingly (para 4.02), including a suitably qualified Deputy CARO (Administration and Technical Services) not later than Norember 1, 1985;  - 48 - (ii) At a minimum the Government would sustain the 1984/85 value of its annual contribution to DAR's operating expenditures in real terms (para. 3.48); (iii) DAR would maintain an account for the project, including that of the ARC, separating all development expenditures from recurrent budget expenditures, have these accounts audited by Independent auditors acceptable to the Association, and submit audited finan- cial statments, together with the auditors' comments, to the Association within six months of the close of each fiscal year (para. 4.37); (iv) A suitably-qualified internationally recruited training advisor would be in post not later than end-July, 1985 (para. 4.21); (v) By September 30 of each year, beginning in 1985, DAR would make the report from its annual planning and review exercise available to IDA (para. 4.39). The annual ARC review of DAR's proposed program and budget would take place no later than end-October of each year, beginning in 1985 (para. 4.12) and by end-November of each year, beginning in 1985, the ARC would send a supporting statement to the Treasury and to IDA with the DAR budget subais- sion, in which priorities for DAR expenditures would be high- lighted and ranked. (vi) By end-April, 1987, GOM would develop and formally approve the necessary regulations to implement a scientific career stream for DAR satisfactory to the Association (para 3.27); (vii) The agricultural research master plan would be completed and sent to IDA for rev.'ew and comment not later than March 31, 1988 (para. 4.10) (viii) In-depth reviews of the DAR research program, chaired by the ARC, would be held once very three years, beginning no later than March 30, 1988 (para. 4.13); review of the progress of Adaptive Research Development would be combined within this Triennial Review (para. 4.26); (ix) The Government will ensure that a Malawian counterpart will be assigned to the Consultant Financial Controller, that such counterpart shall have training to accounting technician level and be given such a grade as Governient and the Assoc&ation consider satisfactory. By April 30, 1987, a review shall take place between the Government and the Association to ascertain whether the contract of the Consultant Financial Controller should be renewed and if so, whether he would operat-, in a line function or advisory capacity, or shift to an advisory role during the term of the second contract (paras. 4.03 and 4.19). (x) Within six months of the completion of the project, DAR would submit a project completion report to the Association (para. 4.39). 6.06 With the above assurances, the project would be suitable for an IDA credit of US$23.8 m to the Government of Malawi.  - 49 - Chart C-1 Page 1 of 2 MALAWI NATIONAL AGRICULTURAL RESEARCH PROJECT Key Indicators of Implementation Civil Works Construction Contract including Chitedze works: Documents sent to IDA: not later than end-October, 1985. Bid opening: not later than end-January, 1986. Evaluation: completed not later than aid- April, 1986. Award: not later than mid-July, 1986. Construction of Chitedze vorks: completed not later than mid-July, 1988. Relocation of Applied Research Staff Essentially relocated by end-PY4. Establishment of ARTs Headquarters LADD, XADD, BLADD: mid-PYl MZADD, SLADD: mid-PY3 NADD: mid-PY4 KRADD: mid-PY5 Master Plan Completed end-PY2 Technical Assistance ARC Advisor, P&B Specialist/Financial Controller, Procurement Specialist, Librarian: by effectiveness Training Advisor: end-July, 1985 Staff Evaluation Process: Revised by end-PYI  - 50 - Chart C-1 Page 2 of 2 Scientific Career Stream Introduced by end-PYl Training of Malavian Counterparts Financial Controller: September 1985 - June 1987 Librarian: September 1986 - June 1987 Publications Agricultural Handbook of Malawi: end-PY2 Annual Report: end-PYl Workshops and Reviews Annual Planning and Review: DAR: not later than end-September per annum, beginning PY1. ARC: not later than end-October per annum, beginning PYI. Triennial Review: not later than end-PY3. National Research-Extensioa Workshops: annually, beginning PYI1 ADD Research-Extension Workshops: minimum '5 per annum per ADD, during growing season. Contract Research First contract(s) let to University: not later than end-PY1. Coffee research facility: completed and staffed not later than end-PY2. Library Utilization Systems established: end-PYI. Cataloging of backlog completed: end-PY2.  rt I Z I ; I j A a. I i .l i cf f 1m I i i i{} 4ta I~~~~~~~~~~~~I It a 0.0 -1 IS I U ~~~.. ... . . ... .. ... ...1 .. . 1. ... .. . ... .. ........ i * * a1 = a S . D .... ma. j . 'V' ., *r- , _. ._. *1t' ' p 'V' ... .... . . *@. -. . .............. ... .... .. ... . ..... ^C"C^Cs~~ .n .a 4- . ;'S;W;...' ..... .......... I.................... ......... ; t: t: t~. . -r a. S .-. . -. . .. .... . ~~~~~.r .t . .t . . . . .. .. .. .. .. .. .. .. .. ...... . . ... ....... ...... I .... L i ............. ... . ... ...... I . . . .... . . . I '1-  F. '1~~~~~~~~~ .... ~~~~~ Iv. I)~~~~~~~~~~~~~~~~ .... zz Z- :Z I U ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ 2 I I .I. ~~~~~... ...... *1 I~~~~~~~Z. . Z- Z . .. .. .. .. .. .. .. Z . --I . . . .. . . .. . .. .. ... .. . . I.-. -.=. Q ....... . .I H I~~~~~~~~~~~~~~~~~~zz I-z - 1 4~~~~~~~~~~~~~~~~ 1,  - * _______E _______ *.......... ...... -. . A-4 ('S-,~~~~~~~~~.; . . .,. ,. . . ;. . Ii W l . . .. . . I E ~ ~ ~ ~~ .... ....... i . ......- . .. tl~~~~~~~~~~I TI~~~~~~~~ I  %4~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ . .. .. ...u u .... .. ... ... ... . . . . . . . .. ... ... .. --- --- .. .. . . . . . . . . . . . . . . .. .. .. . . -- - - - Vl.olffn* .IMI . .l*I.*I* IvvI. I