Guinea - National Agricultural Research and Extension Project

Document of The World Bank FOR OFFICIAL USE ONLY CR I9656 Sv , Repor.No. P-4826-GUI MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT IN AN AMOUNT OF SDR 14.2 MILLION TO THE REPUBLIC OF GUINEA FOR A NATIONAL AGRICULTURAL RESEARCH AND EXTENSION PROJECT August 24, 1988 This document has a restricted distribution and may be used by recipients only In the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Guinean Franc (GF) US$1.00 = GF 445 a/ WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS DNRA - Direction Nationale de la Recherche Agronomique IFAD - International Fund for Agricultural Development FAC - Fonds d'Aide et de Cooperation (France) FED - Fonds Europeen de Developpement MARA - Ministere de l'Agriculture et des Ressources Animales PPF - Project Preparation Facility SED - Secretariat d'Etat I la Decentralisation SERS - Secretariat d'Etat a la Recherche Scientifique SNATC - Service National d'Assistance Technique aux Cooperatives FISCAL YEAR Government: January 1 - December 31 PROJECT YEAR January 1 - December 31 a/ West Africa regional rate for February 1988  FOR OFFICiL USE ONLY REPUBLIC OF GUINEA NATIONAL RESEARCH AND EXTENSION PROJECT CREDIT AND PROJECT SUMMARY Borrower: Government of Guinea Beneficiaries: Ministry of Agriculture and Animal Resources State Secretariat for Scientific Research State Secretariat for Decentralization Amount: SDR 14.2 million (US$18.4 million) Terms: Standard, with 40 years maturity Onlendinx Terms: Not applicable Tentative Financing ."lan: Government US$ 2.9 million IDA US$18.4 million FED US$ 6.1 million FAC US$ 1.6 million IFAD USS 1.9 million TOTAL US$30.9 million Economic Rate of Return: 20Z (Extension) Staff Appraisal Reportt No. 7277-GUI Mb: IBRD No. 20896 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorizatio: .  I MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF GUINEA FOR A NATIONAL RESEARCH AND EXTENSION PROJECT 1. The following report and recommendation on a proposed development credit to the Republic of Guinea for SDR 14.2 million (US$18.4 million) is submitted for approval. The proposed credit would be on standard IDA terms with 40 years maturity and would assist in financing a project to reestablish the national research and extension network and to provide support to the development of farmer organizations. 2. Background. After two decades of economic mismanagement and deterioration, the Government of Guinea launched an ambitious economic and financial reform in late 1985. Major progress was made during 1986 and 1987 toward liberalizing the economy, with priority given to the agricultural sector. This encouraged a significant supply renponse. However, the policy changes alone have not been sufficient to realiza the sector's full potential. The prospect for significant growth is constrained by farmers' lack of confidence in even the meager support services which exist, lack of suitable technical advice for farmers, uon existent credit and input supply mechanisms, and dilapidated infrastructure. Gainea has some capable staff, and certain research stations still have some infrastructure with a stock of suitable genetic materials. However, because- of lack of equipment and operating funds and of a nationally oriented strategy, research and extension services have not been operational. In addition, the Government's former direct involvement created distrust in farmer organizations, and only now are farmers beginning to organize into cooperatives. 3. Recognizing these problems the Government has given priority to the improvement and rehabilitation of rural infrastructure and agricultural support services. Its strategy is to produce and transfer messages by developing the local capacity to conduct decentralized adaptive research and mass extension programs with the full participation of farmers. It is also aware of the need to develop farmers' confidence in these services and suitable farmer organizations to facilitate input supply, credit and marketing. This strategy is already being implemented through the recently approved IDA-financed National Seeds Project and the IDA-financed Extension and Research Pilot Programs. 4. Project Obiectives. The proposed project would respond to the Government's request for further assistance in rehabilitating the research apparatus, establishing a sustainable extension system, and reestablishing farmers' confidence in cooperatives to help the sector reach its potential. This would be achieved by providing assistance in planning and management; conducting research and extension; creating and consolidating links among research, extension, and farmers; training staff; and developing an institutional framework to promote farmer organizations.  - 2 - 5. Rationale for IDA Involvement. The development of agricultural support services has so far concentrated on area development or crop development projects financed by various donors. This has resulted in a duplication of efforts, inconsistent advice to farmers, and unsustainable services. The Government's efforts to develop cooperatives have been isolated and insufficient. IDA's involvement in the project is regarded by the Government as key in helping to develop the national agricultural services. In doing so, the project would help to consolidate and harmonize the various doncrs' approaches and prevent the emergence of programs outside the national strategy. Once short-term area development projects are completed, the services established under these projects would be consolidated into the national service, rather than disappearing. The project is consistent with IDA's strategy for Guinea. It would build on existing crop varieties and technologies, infrastructure and staff, ongoing pilot programs, and organizations. It is an essential link in the chain of agricultural projects financed by IDA in Guinea (Agricultural Services, Livestock, Forestry, and Seeds Projects) and prospective investments affecting the sector (Structural Adjustment Credit II, Rural Infrastructure Project). 6. Project Description. The proposed project would be the first five-year phase of a long-term plan for developing and strengthening research, extension, and farmer organizations in Guinea. It would include: (a) strengthening research stations to identify, select and test crop varieties and production technologies; (b) establishing an off-station research network to test the adaptability and acceptability of these varieties and technologies in strict interaction with farmers; (c) training local staff in commodity and cropping systems research, research and extension methodologies, and management; (d) strengthening and reorganizing extension services including activities aimed at improving women's agricultural productivity; (e) strengthening the capacity of the State Secretariat for Decentralization (SED) for developing cooperatives through the creation of a national cooperative support agency (SNATC); (f) strengthening the capacity of the Ministry of Agriculture and Animal Resources (MARA) and the State Secretariat for Scientific Research (SERS) for overseeing project impact through the creation of small monitoring and evaluation cells; (g) funding the preparation of projects and start-up activities needed to achieve sector development; and (h) strengthening the capacity of the research and extension structures for planning and managing activities. 7. The total cost of the five-year project is estimated at US$30.9 million equivalent, of which US$21.6 million (701) in foreign exchange. A breakdown of costs and the tentative financing plan are shown in Schedule A. Amounts and method of procurement and disbursement, as well as the disbursement schedule, are given in Schedule B. A timetable of key project processing events and the status of Bank Group operations in Guinea are given in Schedules C and D, respectively. A map showing project coverage and location of research centers is also attached. The staff Appraisal Report No. 7277-GUI dated August 24, 1988, is being distributed separately. Two Project Preparation Facilities (PPF) have been awarded: one to start the Pilot Extension Program and the other to begin the training of key research staff to prepare for project implementation.  -3 - 8. Agreed Actions. The Government has agreed on the following: (a) project management units would maintain records and accounts; have accounts audited; submit annual budgets, progress reports and a Project Completion Report; recruit a financial manager or appoint an accounting firm and establish a balance sheet at December 31, 1988; (b) key project staff would be auth,orized to approve project expenditures; (c) the Government's portion of incremental funding would be deposited; (d) the Di.ector of the National Directorate for Agricultural Research (DNRA) would report to the State Secretary for Scientific Research, DNRA would maintain its status as a national directerate, and research centers would depend directly from the Director, DNRA; (e) a mid-term review would be carried out, (f) the National Research/Extension Committee to be created with membership satisfactory to IDA would carry out, in consultation with IDA an annual review of programs, strategies and budgets; (g) an agreement would be signed by MARA and SERS for the execution of adaptive research; (h) SNATC would operate on the basis of an organization and structure satisfactory to IDA; (i) local staff would undertake tests before engaging in training; (j) technical specialists would be recruited; and (k) two M&E cells would prepare a Monitoring and Evaluation program. Conditions of effectiveness would be (a) the opening of project accounts in local currency, in which the Government would have made an initial deposit of GF 55 million, and (b) the submission of a satisfactory action plan for compliance with the Government's debt reporting obligations to the World Bank. The ct.;:ation of SNATC and the initial deposit by Government of GF 10 million by June 30, 1989, would be a condition of disbursement. 9. Benefits. Important benefits are expected from (a) MARA's and SERS's increased ability to plan, coordinate, and implement research and extension programs at the national level; (b) increased production of food crops (about 1? per annum), and of root and fruit crops, thereby contributing to food security and increased exports; and (c) increased incomes for most of Guinea's rural community. The increase in food production and the participation of women in extension activities would directly benefit women as heads of rural households and as an important labor force in crop production. Readily available technology delivered through the renewed extension service would rapidly benefit over 200,000 rural families; research results would, in the medium- to long-term, benefit the majority of the rural families. A modest yield increase of 15? would give a 202 Economic Rate of Return to the extension component. Additional benefits would derive from the training of local staff and support to cooperative development. 10. Risks. In the current Guinean context, the project faces the risks of ineffective management and coordination of research and extension programs, failure to adhere to agreed priorities and balance in research programs, and low adoption of research findings due to lack of confidence on the part of farmers and inappropriate research conducted in isolation. The first risk would be minimized by establishing an ad hoc committee for research and extension, by providing technical assistance, and through the establishment of contractual arrangements between the services to jointly carry out adaptive research. This would ensure that adaptive research is directed toward providing early results and that planning and coordination are efficient. The second risk would be reduced by establishing research priorities through an annual review of programs and budgets involving all donors and farmers. The third risk is being addressed by the Pilot Extension  - 4 - Program which has reestablished farmers' confidence and by emphasizing on-farm research and linkage among research and extension staff and farmers to make research and extension responsive to farmers' needs. 11. Recommendation. I am satisfied that the proposed credit 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. September 15, 1988  -5- Schedule A REPUBLIC OF GUINEA NATIONAL RESEARCH AND EXTENSION PROJECT ESTIMATED COSTS AND FINANCING PLAN Estimated Proiect Costs a/ Local Foreign Total