Tanzania - National Agricultural and Livestock Research Project

Document of The World Bank /k FOR OFFICIAL USE ONLY Report No. P-4854-TA MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 6.0 MILLION TO THE REPUBLIC OF TANZANIA FOR A NATIONAL AGRICULTURAL AND LIVESTOCK RESEARCH PROJECT NOVEMBER 21, 1988 This document has s restricted distribution and may be used by recipients only In the performance of their official duties. Its contents may not otherwise be disclosed without World Dank authorizaton.  CURRENCY EQUIVALENTS US$1.00 = T.Sh. 90.OO1/ WEIGHTS AND MEASURES Metric System ABBREVIATIONS SPAAR - Special Program for African Agricultural Research GOVERNMENT FISCAL YEAR July 1 - June 30 1/ On February 1, 1988.  FOR OFFCL USE ONLY TANZANIA NATIONAL AGRICULTURAL AND LIVESTOCK RESEARCH PROJECT CREDIT AND PROJECT SUMMARY Borrower: The Government of Tanzania Beneficiary: Ministry of Agriculture and Livestock Development Am SDR 6.0 million (US$8.3 million) Terms: Standard with 40 years maturity Onlending Terms: Not applicable Financing Plan: Government US$1.6 million ADY US$8.2 million IDA US$8.3 million Netherlands US$2.7 million United Kingdoml/ US$2.9 million West Germany 17 US$1.6 minlion TOTAL US$25.3 million /I Includes US$0.75 million contribution as SPAAR member for financing the preparation of the Research Master Plan. Economic Rate of Return: Not applicable Staff Appraisal Report: Report No. 6926-TA MAP: IBRD - 20656 This document has a restited distibuion and may be used by recipients only in the performawe of their offical dutis Its contents may not otherise be disclosed without Wodd Bank authoidtion.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE GOVERNMENT OF TANZANIA FOR A NATIONAL AGRICULTURAL AND LIVESTOCK RESEARCH PROJECT 1. The following report on a proposed development credit to the Government of Tanzania for SDR 6.0 million (US$8.3 million equivalent) is submitted for approval. The proposed credit would be on standard IDA terms (with 40 years maturity) and would support the first phase of a long-term program to rehabilitate agricultural and livestock research in Tanzania. Cofinancing of the project by the African Development Fund for US$8.2 million equivalent, the Netherlands for US$2.7 million, United Kingdom for US$2.9 million, and West Germany for US$1.6 million, is also being proposed. 2. Background. Agriculture is the mainstay of the Tanzanian economy, accounting for 40-50% of GNP, 75% of exports and over 80% of all employment. While the economy and the agricultural sector in particular declined for more than 10 years, largely due to Government policies that discouraged the farmers from producing, the country's basic agricultural services, such as research and extension, also suffered considerable damage. Years of neglect of agricultural research and lack of foreign exchange led to the deterioration of facilities, the demoralization of staff and a high rate of attrition of experienced research scientists. The multiplicity of independent research institutions has led to duplicatioa and gaps in research. Coordination and a mechanism for setting priorities are absent, and planning, budgeting and financial control are lacking in all the research organizations, making it impossible to use resources allocated to research effectively. The limited research that is going on is seriously constrained by lack of trained staff, a shortage of laboratory and field equipment, and scarce operating funds that are largely misapplied due to the absence of clear priorities. Effective contact between research and extension staff is rare and even more uncommon between research staff and farmers. The research system in Tanzania has been unable to meet the challenge of providing technology to the agricultural sector for producing more food, raw materials and export commodities. Since 1980, very few new varieties have been introduced, and very few new technical packages have emerged from research services, partly because of the lack of research/extension dialogue. 3. This situation is particularly unfortunate since the Government has embarked on an Economic Recovery Program aimed at remedying the defects of past policies and reversing the decline in agricultural production. In addition to continuing real adjustments in the exchange rate, the Government has introduced several major reforms in the agricultural sector, designed to give farmers the incentive to increase their production. Had an effective agricultural research system been in place for the last several years to generate the normal flow of new and improved technology, undoubtedly the supply responses of farmers to improved economic incentives would have been greater. While the recent and anticipated macroeconomic and sectoral policy reforms can be helpful in stimulating a short-term  -2- *iupply response from farmers, sustaining productivity growth over the long-term requires the continuous generation of new technical packages that only a well organized and managed agricultural research system can provide. 4. Project Objectives. Rehabilitation of the research sVstem in Tanzania is a major undertaking that can only he accomplished in carefully planned stages which realistically take Into account the country's limited human and financial resources. The main objective of the proposed project would be to implement the first stage in this longer term process. During this first stage, a consolidated and streamlined organizational structure and management system for research would be put in place, staff would be trained, the capacity for planning and managing research would be strengthened, some priority research programs would be rehabilitated and other programs sustained, while a research master plan is prepared. The Plan would allow effective resource use for a sustainable research program to address identified research priorities, and would be the framework for coordinated foreign assistance for Tanzanian research. 5. Project Description. The project would comprise: (i) the establishment of the new organizational structure for agricultural/livestock research, including construction of a new headquarters building; (li) the preparation of the Master Plan; (iII) staff traiaing to meet immediate needs for management and research methodology; (iv) vehicles, equipment and materials to sustain ongoing programs; (v) cotton, root/tuber and farming systems research programs for which priorities have been established; and (vi) a research fund for priority crop and livestock research programs identified in the Master Plan. Civil works, vehicles, equipment, technical assistance, training, and foreign recurrent costs would be financed. Five donors will cofinance the project. Because the Special Program for African Agricultural Research (SPAAR) is participating, close and lasting donor coordination would be assured. The Federal German Republic and United Kingdom agreed to provide the SPAAR financial contribution to the project (Schedule A), but other members are expected to join them. The project would be implemented over eight years. A project preparation facility of US$0.5 million was used for project preparation. Tlip Ministry of Agriculture and Livestock Development has decided to consolidate the research parastatals into a Research and Training Department within the Ministry. The Government has given its approval and the Ministry is developing an implementation plan and timetable. The total project cost is estimated at US$25.3 million equivalent, with a foreign exchange component of US$20.5 million (81%). A breakdown of costs and financing plan are shown in Schedule A. Amounts and procurement methods, disbursements and the disbursement schedule are shown in Schedule B. A timetable of key project processing events and the status of Bank Group Operations in Tanzania are given in Schedules C and D, respectively. A map (No. IBRD 20656) and the Staff Appraisal Report No. 6926-TA dated May 6, 1988, are also attached. 6. Rationale for IDA Involvement. This, and the National Extension Rehabilitation Project that has just been appraised, form part of the IDA core program to rehabilitate the Tanzanian agriculture. Improvement of agricultural and livestock research is badly needed to sustain production increases stimulated by economic reforms. The Bank Group has been considering ways of assisting Tanzanian research for some time, but the Government has only recently agreed to consider the institutional restructuring necessary to revitalize research. In the meantime, the international donor community has become concerned at lack of impact of its  -3- considerable, but piecemeal and uncoordinated, support for Tanzanian research. This and similar experience elsewhere in Africa gave r.se to the founding of SPAAR, under Bank Group leadership. The SPAAR has selected Tanzania as the first country for coordinated funding of agriculture/ livestock research on the basis of an agreed plan. The donor community is looking towards the Bank Group, with its wide international expitrience in funding research and its standing In Tanzania, to take the lead in rehabilitating Tanzanian research. The project would be the first step in such a process and is likely to generate considerable international support, once institutional restructuring and research planning have been completed. However, all along, interested donors' participation has been conditional on successful Bank Group processing and managing of the project. The project would complement the Extension Rehabilitation Project in which IDA would play a similarly central role. Research would feed the extension system, while extension would transfer the benefits of research to farmers and feed their needs oack to research. 7. Actions. During negotiations, agreement was obtained that the Government will; (i) send the research services consolidation plan for IDA review within six months of effectiveness, and subsequently implement the plan according to the atreed timetable; (ii) maintain recurrent budget allocation for research at least at 1987/88 level in real terms, and invite all donors to the annual research planning meeting to coordinate assistance for research; (iii) establish the National Agricultural Research Council by December 31, 1988 and send the Research Master Plan to IDA for review by December 31, 1990; (iv) submit an annual work plan satisfactory to IDA by September 30, each year; (v) organize a joint Government-IDA mid-term review within 36 months from project effectiveness to which all donors would be invited; and (vi) introduce a four yearly review of the research program by an independent panel of eminent local and international research scientists on terms satisfactory to IDA. Prior to effectiveness, the Government would need to dissolve the existing research parastatals; establish the new Research and Training Department; and appoint: the head of that Department and its Division heads, a task force to consolidate and restructure the research services, and working parties to draw up the Master Plan. 8. Justification. The project aims to lay the basis for transforming the existing sizeable but virtually moribund research services into an effective organization capable of implementing sustainable programs based on national priorities. There would be major institution building benefits. In addition, the strengthening of key research programs and closer research-extension-farmer linkages should translate into technology messages to help farmers increase production and improve their incomes and produce the food, raw ma.erials and export crops needed by the country. While all research prograws would safeguard the environment, some programs would enhance it by improving fertility and soil cover. Women farmers would benefit particularly from Farming Systems Research to find measures to ease their labor problems.  -4- 9. Risks. The main risks are organlzational problems in connection with the proposed institutional consolldation, Inadequate funding, irrelevant research, and lack of adoption of results by farmers. Strong technical assistance over several years would minudize organisatlonal problems. To safeguard adequate funding, assurances would be obtained that present budget provislons would be maintalned in real terms. Farming systems research, attention to close research-extension-farmer linkages and research program reviews by local experts and independent.panels should help to ensure program relevance, while the recently appraised Natlonal Extension Rehabilitation Project would Improve the delivery of results to farmers. Economic dialogue and IDA lending programs focussing on Incentives, inputs and marketing should foster farmer acceptance of economically useful messages. 10. I am satisfied that the proposed credit complies with the Articles of Association and recommend that the ixecutive Directors approve the proposed credit. 3arber B. Conable President Attachments Washington, D.C. November 21, 1988  Schedule. A TANZANIA NATIONAL AGRICULTURAL AND LIVESTOCK RESEARCH PROJECT Estimated Costs: Local Foreign Total A. Research Programs -- USS mllion - Roots and Tuber Research 0.5 1.3 1.8 Cotton Research 0.6 2.4 3.0 Farming Systems Research 0.6 1.9 2.5 Sub-total Research Programs 2/ 1.6 5.7 7.3 B. Organization and Management 3/ 1.7 5.6 7.3 C. Unallocated Research Fund 0.8 4.0 4.8 D. Vehicles, Equipment & Materials Fund - 3.0 3.0 Total Baseline Cost 1/ 2/ 4.1 18.3 22.3 Physical Contingenciesi 0.2 0.2 0.4- Price Coutingencies 0.6 2.0 2.6 Total Project Cost 2/ 20.5 25.3 Financing Plan: IDA 3/ 1.9 6.4 8.3 ADF 0.9 7.3 8.2 Netherlands 0.4 2.3 2.7 United Kingdom 4/ - 2.9 2.9 Federal Republlc of Germany 4/ - 1.6 1.6 Government 1.6 - 1.6 Total 4.8 20.5 25.3 1/ Taxes and duties negligible. 2/ Minor inconsistencies in totals and sub-total due to rounding to nearest US$0.1 million. 3/ Includes a PPF of US$0.5 million. 4/ Includes US$0.75 million contribution as SPMAR member, for financing the preparation of the Research Master Plan.  Schedule B Procurement Schedule US$ Million Other Expenditure Research Donors' Category ICB LCB Other NA Fund Method Total Civil Works 1.4 _ _ _ _ 1.9 3.3 (1.4) _ _ _ [1.91 (1.4) Vehicles/ 1.0 0.4 0.1 - - 3.3 4.8 Equipment (1.0) (0.4) (0.1) - - [13.1 (1.5) Technical _ - 0.3 - - 5.1 5.4 Assistanc - - (0.3) - - (5.11 (0.3) Training - - 0.9 - - 1.9 2.8 - - (0.9) - [ 1.9] (0.9) Administrative - - 0.1 - - - 0.1 Costs - - (0.1) - - _ (0.1) Recurrent _ - - 0.7 - 2.0 2.7 Costs - - _ (0.5) - [1.21 (0.5) Research Fund - - _ _ 3.3 2.4 5.7 _ _ _ _ (3.2) 12.21 (3.1) .P*P. F _ 0.5 _ _ _ 0.5 - - (0.5) - _ _ (0.5) Total 2.4 0.4 1.9 0.7 3.3 16.6 25.3 (2.4) (0.4) (1.9) (0.5) (3.1) [15.41 (8.3) Notes: (1) Figures In round parentheses () represent IDA finance. (2) Figures in rectangular parenthese (I represent other donors finance. (3) Research Fund investments could be in any or all of the other expenditure categories except PPF, and could be procured by any of the procurement methods used by IDA or by other donors. Disbursements Proposed Amount Disbursement US$ Million Percentage (a) Civil Works 1.4 100 (b) Vehicles and Equipment 1.5 100 (c) Technical Assistance 0.3 100 (d) Training 0.9 100 (e) Administrative Capital Costs 0.1 100 (f) Foreign Operating Costs 0.5 100 (g) Research Fund 3.1 100 (h) PPF repayment 0.5 100 Estimated Disbursements from IDA Credit IDA FY 89 90 91 92 93 94 95 96 ----- (US$ Million)--_ Annual 0.8 1.6 1.6 1.4 1.3 0*8 0.6 0.2 Cumulative 0.8 2.4 4.0 5.4 6.7 7.5 8.1 8.3  Schedule C TANZANIA NATIONAL AGRICULTURAL AND LIVESTOCK RESEARCH PROJECT Tiimetable of Key Project Processing Events 1. Time taken to prepare: Nine months 1/ 2. Prepared by: Government with IDA financed consultants' assistance 3. First IDA Mission: July/August 1985 2/ 4. Appraisal Mission Departure: May 1987 5. Negotiations: April 1988 6. Planned Date of Effectiveness: October 1988 7. List of Relevant PCRs and PPARs: None 1/ Preparation started September 1986 2/ Reconnaissance  Schedule D Page 1 of 2 TANZANIA NATIONAL AGRICULTURAL AND LIVESTOCK RESEARCH PROJECT I. STAM OF IDA CREfITS (As of 9/30/88) * axt in a9$ itlin (lon ceeltionsl Loin or Fiscl .. c"i.sitl Credit No. T or t row purpom Dak IA hrsdW lit# Credits 45 Creditsts) cloe - 520.2I COOSO1U 17 TANZANIA CASHEI NUTS 11 24.50 Lii $61Ro49IRu C06610.TAN 197 TANZANiA tOUCATIOl-VI 12.00 I." WM3016811) CIoISOTAN 1990 ToANZAIA GRAIN STORAGE It RILL 43.0 32.3V 0613019(U C10370-I0 I6 TANZANIA SNALLULH TEA 14.0* 6.70 t 2131u66aR C1056*-TAN 59111 TANZANIA EDICATIII viI 25.00 I.4 12131I110 C10700-tAN 191 TANZAIA 1.t.11 A1.00 2.93 330IMSIU) ;lOt00-tAM Im MlZl COCONU PILO 6.8 .17 3/3)490) CIOI90TAN 562 TANZANIA m PO . 0301)