Burkina Faso - Agricultural Support Services Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-4865-BUR MEMORANDUM AND RECOIMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 31.2 MILLION TO BURKINA FASO FOR AN AGRICULTURAL SERVICES PROJECT This document has a resticted ditribution and may be used by recipients only In the performance of their offlcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EqUIVAL1NTS Currency Unit - CPA Franc (ClAP) US$1.00 * CFAF 281 (as of April 1. 1988) WEIGHTS AND MEASUREMENTS Metric System ABBREVIATIONS AND ACRONYMS CRPA Centre REgional de Promotion Agro-Pastorale (Regional Center for Agricultural and Livestock Development) LNV Laboratoire National V6t#rinaire (National Veterinary Laboratory) MAE Ministere de l'Agriculture et de 1'Elevage (Ministry of Agriculture and Livestock) MACP Ministbre de l'Action CoopErative Paysanne (Ministry of Rural Cooperative Action) ONAVET Office National VEtirinaire (National Veterinary Agency) GOVERNMENT'S FISCAL YEAR January 1-December 31  FOR OMCIAL USE ONLY BURKINA FASO AGRICULTURAL SERVICES PROJECT Credit and Project Summary Borrower: Burkina Faso Beneficiaries: Ministry of Agriculture and Livestock (MAE) and Ministry of Rural Cooperative Action (MACP) Amount: US $42 million Terms: Standard IDA terms, with 40 years" maturity Onlending Terms: Proceeds of the Credit would be passed on by Government in grant form to MAE and MACP Financing Plan: Government $ 2.9 million IDA 42.0 million TOTAL $44.9 million Economic Rate of Return: Not applicable Staff Appraisal Report: No. 7397-BUR Maps: IBRD 21004, 21005 This document has a restricted distribution and m. y be use.: by recipients only in the performance of their official duties. Its contents may not otherwi;zp b'- esclosed without World Bank authorzton.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO BURKINA FASO FOR AN AGRICULTURAL SERVICES PROJECT 1. The following memorandum and recommendation on a proposed development credit to Burkina Faso for US $ 42 million is submitted for approval. The proposed credit would be on standard IDA terms with 40 years maturity and would help finance the first phase of a long-term program aimed at improving agricultural services to farmers and herders. 2. Background. With a per capita GNP of $200 in 1987 and a population of 8.1 million, Burkina Faso is one of the world's poorest countries and one of the most densely populated in the West African Sahel. The population growth rate is estimated at 3.52 per annum. Agriculture employs 80-902 of the population, and accounts for about 402 of GDP and almost all exports. Improved performance in the agricultural sector will be crucial for future growth. 3. The reorientation of traditional agricultural technology and animal husbandry practices towards greater productivity and improved protection of soils and grazing lands is a structural problem to be addressed on a priority basis. Departing from the area-specific rural development projects of the past, the Bank's present agricultural sector strategy for Burkina, devised in collaboration with the Government, is national in scope and focuses on support services and environmental management. The proposed Agricultural Services Project has been prepared on the basis of lessons learned during a pilot extension program undertaken by the Government and financed by IDA over the past two years, as well as on pilot programs in functional literacy. 4. The proposed Project would complement other Bank-assisted operations in Burkina Faso: the nationwide Agricultural Research Project (Cr. 1896-BUR), which is the first phase of a long-term program aimed at developing a unified national agricultural research capacity for crop, livestock and forestry production and conservation, and the nationwide Environmental Management Project (under preparation). The project also reflects design principles agreed upon by Government and the Bank, namely: (i) that technical assistance in general, and resident expatriates in particular, should be minimized; and (ii) that upgrading the skills of staff at all levels should have high priority. 5. Rationale for IDA Involvement. Agricultural development, the heart of our strategy in Burkina, needs to be supported by a strong national producer-support program. IDA's considerable experience in agricultural extension has made a valuable contribution to the above-mentioned pilot programs and will help Government to make a success of the proposed project. It is also important, as area-specific rural development projects are phased out, that IDA be seen by the donor community as fully committed to nationwide support services.  6. Prolect ObJectives. The project's three main objectives are: (i) to improve t.ne effectiveness and impact of agricultural and livestock extension services in transferring technology to farmers; (ii) to strengthen animal health services and adaptive research programs; (iii) to provide functional literacy training to farmers, thereby enhancing their ability to participate more directly in technology generation and dissemination. 7. Project Description. The project would seek to achieve the above objectives by means of three main components dealing with: i) agricultural extension; (ii) livestock services; and (iii) functional literacy. These components will be supported by strengthened monitoring units and a central accounting and procurement unit to be established under the project. The agricultural extension component includess the strengthening of nationwide extension; training for staff at all levels; improvement of research/extension links by strengthening the adaptive research units; and improving mass communication and audio-visual systems in. support of extension. The livestock services component includes the strengthening of nationwide livestock services; improved distribution of veterinary supplies, drugs and animal feeds; and the training of staff at all levels. The functional literacy component will support the young farmers' training and adult functional literacy programs of the MACPs existing training centers will be rehabilitated and equipped, and some support will also be provided to the Ministry. The project would financet civil works, principally the conctruction of 400 staff houses, 9 adaptive research centers, 100 vacciuation yards, 42 livestock posts, and renovation of some facilities; purchase of vehicles, motorcycles and mobylettes, and office and laboratory equipment; staff training; some additional staff, principally for monitoring and evaluation, accounting and procurement; studies of credit, input supply and marketing, and pilot operations in the provision of such other support services; short-term technical assistance; and operating costs. The total cost of the project is estimated at US$ 44.9 million equivalent with a foreign exchange component of US $ 16.9 million (37Z). A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and the disbursement schedule are shown in Schedule B. A timetable of key processing events and the status of Bank Group operations in Burkina are given in Schedules C and D, respectively. The Staff Appraisal Report dated December 8, 1988 is also attached. 8. Actions Agreed Upon. In addition to the usual covenants, it was agreed during negotiations that Government will: (a) not later than September 30, 1989, exchange views with the Association on the cost structure applicable to the distribution of veterinary products to livestock owners by the CRPAs; (b) not later than December 31, 1989, prepare and furnish to the Association, for its review and comments, a draft Protocole d'Accord, to be entered into between ONAVET and the CRPAs, spelling out their respective obligations to carry out the distribution of veterinary products, including, inter alia, the payment by ONAVET to the CRPAs of at least 502 of the retail price margin on the veterinary products effectively distributed; (c) not later than March 31, 1990, take all measures necessary to finalize said Protocole d'Accord, including the  recommendations made by the Association; (d) prepare and furnish to IDA for its review and comments a draft detailed first-year staff training program for MAE and MACP staff by September 30. 1989 and, not later than May 31 of each year thereafter, a detailed training program for the following year; (e) take all measures necessary to ensure that all staff having received project-financed training abroad remain in their assignments at least until a suitable replacement is appointed; and (f) undertake annual implementation reviews and a mid-term review with IDA, and promptly thereafter implement the findings of such reviews. Conditions of Effectiveness would includes (a) the obtaining of land use rights for land to be occupied by the Project; and (b) the establishment of legally binding agreements between the various directorates involved in Project implementation. 9. Benefits. The main benefits would be (a) increased crop and livestock output, arising from improved land and animal productivity in the more densely populated areas, and from improved labor productivity in less densely settled areas; (b) more sustainable farming systems as recently introduced practices become more widely adopted; (c) training of a large number of farmers, herders and staff in management and communications skills as well as technical matters, whereby new techniques will be more effectively identified, tested and transmitted. 10. Risks. These are: (a) the possible inability of extension and research services to produce workable solutions to farmers' and herders' problems; (b) problems of inter-agency coordination; and (c) the possible failure of Government andlor donors to sustain the long-term commitment required to achieve durable improvements in the effectiveness of agricultural services. To minimize these risks, a two-year pilot operation was undertaken and the lessons have been built into project design. Inter-agency coordination has been simplified between the departments of MAE and MACP, where financial and management capabilities will be strengthened. Annual reviews of work plans and budgets, as well as the mid-term implementation review, will provide good opportunities for program review and long-term commitment building. In addition, a Bank staff member has been assigned to the Resident Mission for the first three years of the Project for the specific purpose of advising on its implementation. 11. Recommendation. I am satisfied that the proposed Project would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed Credit. Barber B. Conable President Attachments Washington D.C. December 12, 1988  Schedule A -4- BURKINA FASO AGRICULTURAL SUPPORT SERVICES PROJECT ESTIMATED PROJECT COSTS I n CFAf mllIIons.... .... InUSm Ii ton.... X ForoIgn S Total Boa* LWocal Poremn Total Local For-lsn Total Exchanno Costs A. Ag. Extension 4,845 2,01? 0,902 15.4 0.8 24.8 8s 64 S. Livestock ServIce 908 946 1,881 8.8 8.4 6.7 69 17 C. Functional Ut. Proo. 6U 866 1,201 3.9 '..3 4.8 30 11 D. Studios (Intl. PPF Vad PIlot Operations) 564 81 506 1.9 6.1 2.8 6 S E. Project Msnagemet and Admin. 1S0 188 205 9.9# 6. 1.1 46 8 Total aSeline Cn ost 6,88 4,014 10,024 24.2 14.6 86.8 S7 100 Physical Contlngecles 243 199 44$ 0.0 0.7 i.8 45 4 Prtce Contingence 08J0 Lo442 1.2?8 8.9 1.6 4. -a 12 Total Project Costa 7,910 4,738 12,645 28.1 16.6 4.9 87 116 Financing Plan Local Foreign Total -US$ million--- Goverament 2.9 0.0 2.9 IDA 25.2 16.8 42.0 Total 28.1 16.8 44.9  Schedule B Page 1 of 2 BURKINA FASO AGRICULTURAL SUPPORT SERVICES PROJECT PROCUJREMENT METHOD AND DISBURSEMENTS Procurement Method Total Category ICB LCB Other N.A. Cost -US$ million ------------ Civil Works - 5.4 - - 5.4 Vehicles 6.4 - - - 6.4 Cther Equipment and Furniture 1.0 1.7 0.5 - 3.2 Construction Materials - - 2.0 - 2.0 Training and Consultants. 0.2 0.7 2.9 - 3.8 Studies & Pilot Operations . - 0.6 - 0.6 Other operating costs - - - 16.0 16.0 Incremental staff salaries - - - 5.9 5.9 PPF - - 1.6 - 1.6 Total 7.6 7.8 7.6 21.9 44.9 ____________________________ Notet IDA finances 1002 of all categories except salLries of which 5O0 would be financed.  Schedule B -6 - Page 2 of 2 DISBURSEMENTS Category Amount Z of total expenditures US$ million Civil works and rehabilitation 5.9 100 Vehicles 7.2 100 Veterinary equipment 0.3 100 Other equipment and furniture 0.9 42 Consultant and specialist services 0.7 100 Staff training 1.7 50 Studies and pilot operations 0.8 100 Operating Costs 1.6 10 PPF 1.5 100 Unallocated 4.4 Total 25.0 Estimated IDA Disbursements; IDA Fiscal Year FY89 FY90 FY91 FY92 FY93 FY94 FY95 FY98 FY97 Annual 2.6 8.6 4.0 4.0 4.0 3.8 2.8 1.8 0.6 Cuma&utlve 2.5 6.6 9.6 13.6 17.6 20.8 28.1 24.4 25.0  Schedule C BURKINA FASO AGRICULTURAL SERVICES PROJECT Timetable of Key Project Processing Events (a) Time to prepare: 30 months (b) Prepared by: Government with IDA assistance (c) First IDA mission: May 1985 (d) Appraisal mission departure: November 23, 1987 te) Date of Negotiations: November 28-Dec 2, 1988 (f) Planned date of Effectiveness: March 31, 1989 (g) List of relevant PCRIPPARs: Vest Volta Agricultural Development (OED Rpt. No. 5175, June 20, 1984) Bougouriba Agricultural Development (OED Rpt. No. 4547, June 15, 1983) Second Rural Development Fund (OED Rpt. No. 4541, June 15, 1983)  SCHEDULE D STATUS OF BANK GROUP OPERATIONS IN B1UIA FASO A. STATEMENT OF BANK LOANS AND IDA CREDITS (as of December 12, 1988) Aiunt in Dt dillion Uess Ca0cellations) Loan or Fiscal Uds Credit No. Year . orrowe Purpos iank 10 buried . ._._.. .._. ...._.__. .... _.... Credits 20 Creditmts) closed 114.72 C1070>-UR1991 DURNA FASO s11 Cl1i640-NE 191 MINA FABO HID C12190-DUR 1 ~NA FASO IAOT FUND II0I C12350-BUR 1982 BURKINA FASO TElECOM III 17.00 :li C12940-BUR 193 BURKINA FASO VOLTA NOIRE A6. O 5.59 C12950-DUR 1983 BUREINA fASO HAUtS RUBINS A6RIC. 4.70 3.81 C12930-SUR 1963 BURKINA FASO K0UDDU6OU PILOT 7.00 5.25 C14920-NUR 1984 DURKINA fASO PERKOA NIH'B E.4 TA 7.0 4.33 C15500-hIR 19tS DURKINA FASO FERTLIZER CREDJT 9.23 9.6U C159I 0-0R 1195 BURKINA FASO EDUCATION III 21.40 24.49 C160t0-6UR 195 6URKINA FASO HEALTH I 26.0* 26.77 C18960-DUR 1998 BURKINA FASO AE.RSEARCN 17.90 19.27 TOTAL nuober Credits 1 12 194.24 115.18 TOTAL### 310.97 of which recaid 4.74 TOTAL held by Dank I IDA 306.24 Asount sold l.S5 of which repaid TOTAL undisbursed 115.1t UwuJu B. STATEMENT OF IFC INVESTMENTS (as of June 30, 1988) Investment Fiscal Type of No. Year Obligor Business Loan Equity Total ------(i US$ million)---- 431-UV 78 SOVOLPLAS, S.A. Plastic 0.41 0.13 0.54 Total gross commitments 0.41 0.13 0.54 Lesst cancellations, terminations, repayments and sales 0.3 0.13 0.43 Total commitments now held by IFC 0.11 0.0 0.11 Total undisbursed --- --- ---  IBRD 21004 MAURITANIA LA BURKINA FASO JNIGE AGRICULTURAL SERVICES PROJECT B OURKINA FASCI f-Y PRojEr DE RENFORCEMENT DES SERVICES > )*o' g- D'APPUI AUX PRODUCTEURS SOUM 0 /XOO ( COTE (&.ANA9 I" IGERIA ADMINISTRATIVE UNITS . -*oga ,K *? ID VOI REIH T DIVISIONSADMINISTRATIVES -t oDPib SAHEL $ aR1 0L 20 40 6 0 90 100 {YA TENGA G ohE KILOMETERS/KiOMit.e YATENGA1 ' OUAHIGOUYA CEN NRE -NRD B2 52 ~ 5 \ \ 3AM ' \NAMENTENG ASebba M A L I SOO E j W) / < O SANMATENGA ) N I G E R <@ KOSSI gi Tougao / GNAGNA d<.. d I {i S~~~OURUPSSOR KAYA *t 5 l Nounob 0,.,,,, ^ <y Nouna p- AT. Kolbila '1. +Vr._CdEd S) / A \Ri { g ~CEN TR E 0 bl _/> .- (So \ .iBOULKIE UBRI UNGA InIm . - . 9 s8"~~~~DEDOUGOLl-, eo f KADIG2@)K r DEDOUGOUW @OUAlGOU Zorghe GOURMA J TAPOA ,\ Ir .-*-h2- MOUHOUN @ 0. 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