Burkina Faso - Agricultural Research Project

Document of The World Bank FOR OFFICIAL USE ONLY crz jjLr-ILSOZ- Report No. P-4490-BUR MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 14.1 MILLION TO THE REPUBLIC OF BURRINA FASO FOR AN AGRICULTURAL RESEARCH PROJECT March 22, 1988 This document has a restricted distribution and may be used by recipients only hi the performance of their official dties. Its contents may not otherwise be disdosed without World Bank authoriztion.  CURRENCY EQUIVALENTS Currency Unit - CPA Franc (CFAF) US$1.00 - CFAF 300 (as of mid-July 1987) WEIGHTS AND MEASUREMENTS Metric System ABBREVIATIONS AND ACRONYMS CNRST Centre National de la Recherche Scientifique et Technologique (National Center for Scientific and Technological Research) ESFIMA Recherche sur l'Eau, le Sol, la Fertilisation, l'Irrigation et le Mechanisme Agricole (Research Program on Soil,. Water, Fertilization, Irrigation and Mechanization) INERA Institut d'Etudes et de Recherches Agricoles (Agricultural Research Institute) IRBET Institut de Recherche en Biologie et Ecologie Tropicale (Reseerch Institute for Tropical Biology and Ecology) ISNAR Service International pour la Recherche Agronomique Nationale (International Service for National Agricultural Research) MAE Ministere de l'Agriculture et de l'Elevage (Ministry of Agriculture and Livestock) HESRS Ministire de l'Enseignement Supirieur et de la Recherche Scientifique (Ministry of Higher Education and Scientific Research) PPF Project Preparation Facility (Macanisme de Financement de In Pr-rparation des Projets) RSP Programme de Recherche sur les Systemes de Production (Research Program on Farming Systems) GOVERNMENT'S FISCAL YEAR January 1-December 31  FOR OMCIAL USE ONLY BURKIRA FASO AGRICULTURAL RESEARCH PROJECT Credit and Proiect Surumary Borrower: Burkina Faso Beneficiary: Ministare de 1'Enseignement Superieur et de la Recherche Scientifique (MESRS) Amount: SDR 14.1 million (US$17.9 m.llion equivalent) Terms: Standard IDA terms, with 40 years maturity Onlending Terms: Proceeds of the Credit would be passed on by Government in grant form to INERA Financint Plan: Government $ 0.9 million IDA $17.9 million TOTAL $18.8 million Economic Rate of Return: Not applicable Staff Appraisal Report: No. 6683-BUR Map: IBRD 20120 iThs document has a rstricted distribution and may be used by recipients only in the performance of their official dutiet Its contents may not otherwise be disclosed without World Bank authorization.  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 RESEARCh PROJECT 1. The following memorandum and recommendation on a proposed development credit to Burkina Faso for SDR 14.1 mlilion (US$17.9 million equivalent) is submitted for approval. The proposed credit would be on standard IDA terms with 40 years maturity and help finance the first 5-year phase of a long-term national agricultural research program. 2. Background. With a per capita GNP of $140 in 1985 and a population of 7.9 million, Burkina Faso is one of the poorest countries in the world and one of the most densely populated in the Sahel of West Africa. The population growth rate is estimated at 2.6% per annum. Agriculture employs 80-902 of the population, and accounts for about 402 of GDP and almost all exports. Of the country's geographic area of 27.4 million ha, agricultural land (including forest and grazing lands) covers about 24 million ha, or nearly 90%. Improved performance in the agricultural sector will therefore be crucial for future growth. In July 1982, the Burkinabe Government invited FAD, the World Bank, and the International Service for National Agricultural Research (ISNAR) to help formulate a long term agricultural research program. After separate exploratory missions, a joint FAOIISNARIBank mission drew up an inventory of ongoing research programs, and presented its recomendations to Government in March 1983. The report, titled 'Agriculture and Livestock Research', detailed appropriate instit-utional infrastructures, outlined a plan for a long-term research program and provided a general framework for external technical and financial assistance. The report concluded that in the short and medium term, research and development activities should be aimed at eliminating constraints now hampering agricultural productivity, economic development and existing production systems. In addition to the short-term objectives of increasing production of food and export crops, the long term plan for the agricultural sector called for the stabilization of farming systems and the protection of the environment, including soil, water, forestry, and grazing resources. To help the country act upon these recommendations, IDA in May 1982 provided a first tranche (US$275,000) of a * US$0.5 million Project Preparation Facility (PPE}. This financed a research adviser and seminars to elaborate and discuss a long-term research program. During a February 1985 seminar at Ouagadougou attended by national and international research staff and donor representatives, research priorities and ways to strengthen the national research capacity were agreed upon in principle. A second PPF tranche of US$225,000 was provided in 1985 to prepare a national agricultural research project for external funding, to start training a nucleus staff, and to initiate new priority tesearch activities. During the final stage of project preparation in mid-1986, it was decided that because of the importance of trees in the rural economy, a forestry research component should also be included in the proposed project. The Institut d'Etudes et de Recherches Agricoles (INERA) and Institut de Recherche en Biologie et Ecologie Tropicale (IRBET) are specialized institutes of the Centre National de la  -2- Recherche Scientifique et Technologique (CNRST) responsible for agricultural (including livestock) and forestry research, respectively. CNRST is an "Etabliasement Public de l'Etat 'a caractare Administratif" (EPA) in the Ministry of Higher Education and Scientific Research (MESRS). 3. Rationale for IDA Involvement. Agricultural development, the heart of our strategy in Burkina, needs to be supported by a strong national research program. IDA involvement is consistent with our broader leadership role towards agricultural research in Sub-Saharan Africa and it is key to ensure the coordination with international research and the donor community and preserve the continuity of this long-term endeavour. 4. Project Objectives. The proposed project would constitute the first phase of a long-term (10 to 15-year) development plan for agricultural research. One of the principal design criteria has been that it should be a financially and administratively sustainable and manageable project. The long-term plan would aim at developing a unified national agricultural research institution and organization dealing with crop, livestock and forestry production, and catering to the needs of the different categories of primary producers in the various agro-ecological zones of the country. Such an organization would be staffed largely by trained Burkinabi research specialists and a few short-term outside consultants. Accordingly, objectives of this first 5-year phase would be, to: (i) strengthen and consolidate the capacity of national agricultural research (including livestock and forestry) to plan, execute and evaluate research programs that are in line with Government agricultural policies, responsive to farmers' needs, and alert to relevant research conducted in neighboring countries and/or by international institutes; (ii) improve the balance and linkages between individual research programs, by placing greater emphasis on multidisciplinary, systems-oriented research, as opposed to the commodity-oriented research that has prevailed in the past; (iii) strengthen links between research and extension services. 5. Project Description. The proposed project would seek to achieve the above objectives by financing: a) improvements to INER&'s basic network of research centers, with emphasis on existing fr.cilities, and to the physical infrastructure at INERA and IRBET headquarters; b) short- and long-term technical assistance and staff training needed to strengthen the local capacity to plan, implement, monitor and evaluate a national agricultural research program, including livestock and forestry; c) equipment, vehicles and supplies, and the operating and maintenance costs associated with the implementation of the priority research programs; d) equipment and operating costs (travel allowances and vehicle operating costs) incurred by research staff for the periodic training of extension staff (subject matter specialists). In order to concentrate, rather than disperse, scarce resources and skills, and to allow a critical mass of  - 3 - research staff to work effectively, emphasis during the first years of the project would be on consolidating research programs; on rehabilitating and equipping existing infrastructure and facilities at Kamboinse, Saria and Farako-Bi; and on financing the operating expenses of priority research programs and activities. Funding would also be provided for initial investments in support of applied research programs, including exploratory surveys within the farming systems and physical resources (Water, Soils, Fertilization, Irrigation and Agricultural Machinery) research programs, varietal testing, and improved seed production at the three locations - Kouare, Di and Katchari - where full fledged regional research stations would be developed at a later stage. The 5-year project is estimated to cost US$18.8 million equivalent, with a foreign exchange component of 49Z. A breakdown of costs, and the financing plan are in Schedule A. Amounts and methods of procurement and of disbursements, and the disbursement schedule are in Schedule B. A timetable of key project processing events and the status of Bank Group operations in Burkina Faso are in Schedules C and D , respectively. A map No. 20120 and Staff Appraisal Report No. 6683-BUR dated September 15, 1987, are also attached. 6. Actions Agreed Upon. In addition to the usual covenants, it was agreed during negotiations that: (i) Government would hold annual meetings with IDA and other major donors participating in the financing of agricultural research, to review the previous year's results and to discuss the following year's research work programs; and (ii) during the third year of the project, Government would conduct an in-depth mid-term review of project progress and of the appropriateness of organizational and institutional arrangements for agricultural, livestock and forestry research. Conditions of Effectiveness include the requirement that (a) the tenancy of land assigned to INERA and IRBET has been legally attributed to HESRS; (b) an internationally recruited Research Management Specialist has been appointed; and (c) the members of INERA's Management Council have been appointed. 7. Benefits. The project would contribute to the development of INERA and IRBET's research management capacity. Joint planning and coordination of the national research programs with those of international research institutions, and improved linkages between research and extension are expected to lead to more efficient use of scarce human and financial resources and thereby increase the impact of other investments in the agriculture and rural sectors. The project is also designed to address the increasingly serious problems of environmental degradation and decreasing productivity. 8. Risks. As with all such projects, there is necessarily uncertainty concerning the eventual impact of the research programs and, hence, what the precise benefits may be. One potential risk resides in the adequacy of the linkages between research and extension services. However, good working relationships already exist at headquarters and in the field between these two technical branches of government. The direct participation of research staff in the training of extension workers, the representation of MESRS and the Ministry of Agriculture (MAE) on INERA's  -4- planning would all help lessen the risk and further strengthen research-extension linkages. Other risks are those inherent in all research projects, namely difficulties in obtaining adequate staff and funds. These risks are considered relatively small, however, in the case of Burkina, where in recent years the Government has shown a strong commitment to research. Moreover, the project's technical assistance and training components would help minimize those risks, and project design has minimized the incremental recurrent cost implications for the Burkinab; Government. 9. 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 Conable President Attachments Washington D.C. March 22, 1988  Schedule A -5- _BURKINA FASO AGRICULTURAL RESEARCH PROJECT ESTIHATED COSTS AND FINANCING PLAN Local Foreign Total Estimated Costs ........ US$ million INERA INERA Headquarters 1.9 4.8 6.7 Farako-B; 1.3 0.8 2.1 Saria 0.9 0.4 1.3 Kamboinse 0.6 0.4 1.0 Di 1.1 0.6 1.7 Kouare 0.8 0.4 1.2 Katchari 0.6 0.4 1.0 Subtotal INERA 7.2 7.8 15.0 IRBET 0.5 0.7 1.2 TOTAL BASE COST 7.7 8.5 16.2 of which: Civil Works 2.2 0.8 3.0 Vehicles 0.2 1.2 1.4 Equipment 0.2 0.8 1.0 Furniture 0.06 0.08 0.1 Technical Assistance 0.7 2.3 3.0 Training 0.01 1.1 1.1 PPF 0.3 1.2 1.5 Local Salariesloperating Costs 4.0 1.2 5.2 Physical Contingencies 0.2 0.2 0.4 Price Contingencies 1.9 0.3 2.2 Total Project Costs 9.8 9.0 18.8 Financing Plan Local Foreign Total -------US$ million- Government 0.9 -- 0.9 IDA 8.9 9.0 17.9 9.8 9.0 18.8  Schedule B Page 1 of 2 -6- BURKINA FASO AGRICULTURAL RESEARCH PROJECT PROCUREMENT METHOD AND DISBURSEMENTS Project Item Procurement Method TOTAL ICE LCB OTHER N.A. COST 11 ---(US$ mill0on-------------------- Civil Works - 3.8 - - 3.8 (3.8) (3.8) Vehicles 1.5 - - - 1.5 (1.5) (1.5) Agricultural Equipment 0.7 - - - 0.7 (0.7) (0.7) Office Equipment - 0.1 0.1 - 0.2 (0.1) (0.1) (0.2) Laboratory & Scientific 0.3 - - - 0.3 Equipment (0.3) (0.3) Furniture - 0.1 0.1 - 0.2 (0.1) (0.1) - (0.2) Technical Assistance - - 3.2 - 3.2 (incl. Audit) (3.2) (3.2) Training - - 1.2 - 1.2 (1.2) (1.2) Local Salaries & - - O.B 4.8 5.6 Operating Costs (0.8) 4.1 (4.9) PPF - - 1.5 - 1.5 (1.5) (1.5) 2.5 4.0 6.9 4.8 18.2 (2.5) (4.0) (6.9) (4.1) (17.5) Note: Figures in parentheses are the respective amounts financed by the IDA Credit. 1/ Based on a five-year project implementation period. As a result, the total cost figures shown in this schedule do not correspond to the figures shown in the project cost summary table (Schedule A).  Schedule B Page 2 of 2 DISBURSEMENTS Catetory Amount Z of total expenditures USS milllon Vehicles 1.4 100 * Furniture, Office and agricultural equipment 1.0 100 Scientific and laboratory equipment 0.2 100 Civil works 3.1 100 Consultants' and specialists' services and audits 3.0 100 Training and training- related travel 1.1 100 Operating costs 4.2 100 PPF Refunding 1.5 100 Unallocated 2.4 17.9 Estimated IDA Disbursements: IDA Fiscal Year FY93 FY3 FY3 FY91 Flat FYI! FY94 FY95 FY96 FY97 Annual 0 4.5 2.9 2.6 3.6 2.2 1.4 0.7 0.4 9.2 Cumulative 0 4.5 7.4 16.6 13.6 15.2 15.6 17.8 17.7 17.9  - 8 - Schedule C BURKINA FASO AGRICULTURAL RESEARCH PROJECT Timetable of Key-Prolect. Process nmR Events (a) Time to prepare: 36 months (b) Prepared by: Government with ISNAR and IDA assistance (c) First IDA mission: January, 1984 (d) Appraisal mission departure: December, 1986 Ce) Date of Negotiations: July 13-16, 19B7 (f) Planned date of Effectiveness: September 30, 1988 (g) List of relevant PCR / PPARs: N/A  SCHEDULE D STATUS OF MANM GROUP OPERATIONS IN NURKINA FASO A. STATEMENT OF BANK LOANS AND IDA CREDITS (as of March 31, 1988) Amount in USS million (less cancellation) Loan or Fiscal Credit No.- Year Borrower Purpose IDA Undisbursed 17 credits closed Cr. 1097 81 Country Bougouriba Agr. Dsv. II 16.0 6.22 Cr. 1164 81 u Highways IV 46.0 2.72 Cr. 1218 82 N Rural Dev. Fund III 16.02 5.77 Cr. 1235 82 Telecommunications III 17.0 3.72 Cr. 1284 83 0 Volta-Noire Agr. Dev. 6.8 4.79 Cr. 1285 83 n Hauts-Bassins Agr. Dev. 4.7 3.38 Cr. 1293 63 N Koudougou Pilot Agr. Dev. 7.0 4.73 Cr. 1482 84 Govt/BOMIGEB Perkoa Mining Ex. & T.A. 7.4 3.48 Cr. 1550 85 Country Fertilizer 9.23 7.21 Cr. 1598 85 Min. Education Education III 71.6 19.18 Cr. 1607 85 Min. Health Health I 26.6 22.33 TOTAL 284.55 83.54 of which repaid 10.49 TOTAL now hold by Bank and IDA 274.06 TOTAL undisbursed 83.54 B. STATEMENT OF IFC INVESTMENTS (as of March 31, 1988) Investment Fiscal Types of No. Year Obligor Business Loan Equity Total (------i(n USS million)---- 431-UV 78 SOVOLPLAS, S.A. Plastic 0.41 0.13 0.54 Total gross commitments 0.41 0.13 0.54 Less: cancellations, terminations, repayments and sales 0.0 0.0 0.0 Total commitments now held by IFC 0.41 0.13 0.54 Total undisbursed 0.0 0.0 0.0 AFTAG 3.21.88  IBR2012 MAUAITANIA3 I BURKINA FASO ' * * A LI NATIONAL AGRICULTURAL RESEARCH PROJECT , PROJETNATIONAL DERECHERCHESAGRICOLES r 5 A H t L Research Station Network * A r NICfRIA Centres de Recherches Agricoles . ! o,DibO 5 A H f L Katcharl>DOrn D . *b ,04%. ,O.p