Niger - Small Rural Operations Project

Document of The World Bank FOR OFFICIAL USE ONLY cZ I9v-N#E Report No. 6910-NIR STAFF APPRAISAL REPORT NIGER SNALL RURAL OPERATIONS PROJECT February 22, 1988 Agriculture Division Sahelian Department Africa Region This document has a reshicted dbitbuton and may be used by redpienb only In Me perormance of thdir offici dutes. Its contents may Dt otherwie be dicosed wibout Wodd Bank authoizaton.  CURRENCY EQUIVALENTS Currency unit = CFA Franc (CFAF) US$1.00=CFAF 295 SYSTEM OF WEIGHTS AND, MEASURES Metric System GOVERNMENT FISCAL YEAR October 1 - September 30  M0 CIJiciAL UIs ONLY ABBRVIATIONS AND ACRONYMS BDIN Banque de D6voloppement de la Republique du Nigor (National Development Bank. of Niger) CCCE Caisse Centrale de Coop6ration Economique (French Aid Loan Agency) CCM4 Commission Centrale des March6s (Central Procurement Commission) CDA Chef du district agricole (Agricultural extension agent at canton level) CID Canadian International Development Agency (Agence Canadienne de Ddveloppement International) OLD Conseil Local de D6veloppement (Local Development Council) CLUsA Cooperative League of the USA CNCA Caisse Nationale de Crddit Agricole (National Agricultural Development Bank) CND Conseil National de Ddveloppement (National Development Council) COTEAR Comitd Technique d'Arrondissement (District Technical Committee) COTEDEP Comitd Technique de Departement (Provindial Technical Committee) CPP Comptes Cheques Postaux (Postal Checking Accounts) CRD Conseil Rdgional de Ddveloppement (Provincial Development Council) CSRD Conseil-Sous-Rdgional de D6veloppement (District Development Council) CVD Conseil Villageois de Devel9ppement (Village Development Council) DDP Direction D6partementale du Plan (Provincial Directorate of Planning) DDRM Direction de Ddveloppement REgional et des Micrordalisations (Directorate of Regional Development and MicrordalleatiorA) Thi doument his a res ditbudon and may be ued by lsaoyaU ORh ,m A of dte obla dodeo. Its cotles may not owW be discot WO ank uumL  -iii - PAC Fonds d'Aide et de Coop4ration (French Aid Grant Agency) YAOICP Food and Agriculture Organization/Cooperation Program (Organisation pour l'Alimentation et l'Agriculture/Programme de Coopbration) FED Fonds Europeen de Developpement (European Development Fund) FORPROSA Formation en Analyse de Projets au Sahel (Training for Project Analysis in the Sahel) GV Groupement Villageois (Village Group) IFAD International Fund for Agricultural Development (Fonds International pour le Developpement Agricole) INRAN Institut National de Recherches Agronomiques du Niger (National Agricultural Research Institute) ISNAR International Service for National Agricultural Research (Service International pour la Recherche Agronomique Agricole) NDR Ministere du Developpement Rural (Ministry of Rtural Development) MHE Ministere de l'Hydraulique et de l'Environnement (Mlinistry of Water Resources and Environment) XINAG/E Ministare de l'Agriculture et de l'Environnement (Ministry of Agriculture and Environment) MP Ministare du Plan (Ministry of Planning) MAA/H Ministare des Ressources Animales et de l'Hydraulique (Ministry of Animal and Water Resources) NGO Non-Governmental Organization (Organisation Non-gouvernementale) ONAHA Office National des Amenagements Hydro-Agricoles (National Irrigation Authority) OPVN Office des Produits Vivriers du Niger (Grain Marketing Board) PPF Project Preparation Facility  - iv - (Mhcanism de Pinancement de la Preparation des Projets) PST Postes, T6lephone et T4lecommunications (Post Offices) 8AL Structural Adjustment Lending (Program. d'Ajustement Structurel) SCA Secr6taire G6n4ral Adjoint (Deputy Secretary General) 603 Statement of Expenditure 8B0 Small Rural Operations (Petites Operations de Developpement Rural ou Nicror6alisations) uLC Union Locale de Cooperatives (Local Cooperative Union) UNC Union Nationale des CoopEratives (National Cooperative Union) UNCC Union Nigerienne de Credit et de CoopEration (Nigerien Credit and Cooperative Union) URC Union Rdgionale de CoopEratives (Provincial Cooperative Union) USIC Union Sous-Regionale de Cooperatives (Distri,ct Cooperative Union)  - v - NIGER SMALL RURAL OPERATICNS PROJECT STAPF APPRAISAL REPORT TABLE OF CONTENTS ABBREVmATIONS AND ACRONYMS DOCMENTS CONTAINED IN THE PROJECT FILE CREDIT AND PROJECT SUMMARY I INTRODUCTION A. Project Background S. The Rural Sector C. Institutions D. Sector Issues and Strategy Z. On-going Small Rural Operations II PROJECT OBJZCTIVES AND DESCRIPTION A. Objectives and Summary Description B. Geographic Coverage C. Detailed Features D. Environmnt Impact III PROJECT COSTS AND FINANCIAL ARRANGEMENTS A. Cost Estimates B. Proposed Financing Plan C. Procurement D. Disbursement This report is based on the findings of an appraisal mlssion to Nlger in April-May, 1987. Mission members Included Mesdames Noriko Imase (Zconomist/Leader), Jann Masterson (Operations Assistant), and Messrs. Francis Mody (Operations Assistant, Resident Mission), G4rard Ribilre (Agronomist, consultant) and Christian Hoche (Training Specialist, consultant). The consultant to the then Ministry of Water Resources and Environment, Mr. Nguyen Quang Trac also contributed to the appraisal mission. This report was edited and processed by Ms. Josephine Armar and Mrs. JoAnne Nickerson.  - vi- IV ORGANIZATION AND NANAGEMENT A. Project Execution B. Financial Management, Accounts, Audit and Reporting C. Capital Replacement Accounts D. The Small Rural Operations Project Cycle Z. Training F. Project Coordination and Implementation V TECHNOLOGICAL AND PRODUCTION SPECIFICATIONS VI FINANCIAL REgSULTS A. Demand, Marketing and Prices B. Financial Implications for Beneficiaries C. Financial Implications for Governz*nt VII BENEFITS AND ECONOMIC ANALYSIS A. Project Benefits B. Economic Analysis C. Risks vIII AGREEMENTS REACHED AND RECOMMENDATIONS Annexes 2-1 Terms of Reference for Key Technical Assistance 3-1 Project Costs by Component by Year 3-2 Project Costs by Type of Expenditure by Year 3-3 Estimated Schedule of Disbursements 4-1 Organigrams 6-1 Farm Budgets 6-2 Government Project-related Cashflow 7-1 Economic Costs, Benefits and Rates of Return MaiDs IBRD 20646 IBRD 20647  -vii - NIGER SMALL RURAL OPERATIONS PROJECT DOCUMENTS CONTAINED IN THE PROJECT FILE A. Background and PreRaration Documents Code 1. FAO/World Bank Cooperative Program, Niger Small Rural Operations DOS2S9 Preparation Report (139185 CP-NER 10), December 19, 1985. 2. Dossiers des petites operations prepares par le Niger: D05254 - projet de mise en valeur de la mare de Sanono - relance du perimetre d'Egergarazegren - projet de bas-fonds de Bouzae - amenagement de bas-fonds pour la pratique intensive des cultures de contre-saison - projet appui aux maraichers d'Aouloumatt - projet de mise en valeur de la mare de Tiloa - projet fruitier et maralcher de Tombo - reprise des infrastructures hydrauliques du site CRD a Hounitan - ddveloppement de la production agricole dans le village de Karra - am6nagement et rEdynamisation de la coopdrativc de Bawadagida 3. Homont, F., Rapport de mission sur l'Etude des Circuits D0SS5 Financiers, le 28 fevrier 1987. 4. DDRM/Ministry of Planning, Rapport de mission d'evaluation des D05256 PPODR. Tama et Tara, mai 1986. S. DDPA/Ministry of Planning, Evaluation finale des deux D05257 sous-proiets de Tama, decembre 1986. 6. Direction de la Cooperation au Developpement et de l'Aide D05258 Humanitaire Suisse/Direction de l'Alphabetisation et de la Formation des Adultes, Rapport de la mission coniointe d'dvalua. tion du proiet de soutien au programme national d'alphabdtioation du Niger, juillet 1986. B. Vorkini Papers B.1 Les Ressources en Eau et l'Equipement Hydraulique, by consultant tlguyen Quang Trac. B.2 Aspect Agronomique, by consultant Gerard Ribibre. B.3 Mise en oeuvre des micror6alisations et formation, by consultant Christian Hoche.  - viii - 3.4 Gestion Financ1*re, by Francias Mody, (Resident Mission. Wlamey). B.5 Analyse Economique, by Francis Mody. 3.6 Project Cost Tables.  - ix - NIGER SMALL i4RAL OPERATIONS PROJECT CREDIT AND PROJECT SUMMARY Borrowers Republic of Niger. Beneficiarys Ministry of Planning. Credit Amount: SDR 7.1 million (US$ 9.3 million equivalent). Terest Standard, with a maturity of 40 years. Proiect Descriltions The project would help the Government improve its institutional capability to prepare, appraise, execute and evaluate small rural operations (SROs) as well as to provide effective exteneion services once SROs become operational. The project would be the first phase of a long-term national program to support the development of SROs. The project would finance equipment, vehicles and operating costs associated with preparationlappraisal/ execution of SROs and improvement of extension services; training and technical assistance; investments such as bottomland improvements, small irrigated perimeters, soil conservation and watershed management, and social forestry including village tree nurseries and studies. Beneficiary farmer groups would contribute part of the investment costs, bear all operating costs and accumulate savings to replace renewable assets such as pumps. Proiect Benefitss The most important benefit of the project would be the development of an institutional capability in Niger to make sound investment decisions for SROs and manage investment funds. By providing training for local staff and by stream-lining the organizational structure of the project cycle, the local capacity for project preparation and execution of SROs would improve. By clarifying the selection criteria and terms and conditions of financing, the utilization of funds would be rationalized and the total flow of external assistance for this type of operation would increase. In addition to the main project benefits, which are difficult to quantify, each SRO would also have substantial benefits such as increased income, better nutrition and protection of the environment.  Project Risks: Firstly, low motivation and poor qualifications of local technicians may slow the pace of development: this risk is expected to be minimized by substantial training, which has already been started, combined with the increasingly effective authority of the Governors. Secondly, assets created under the project may not be adequately maintained. This risk would be reduced by insisting on the cash downpayment for medium-term assets and by establishing *levelopment contracts to be signed by beneficiaries and local authorities laying down obligations and responsibilities. Thirdly, coordination with other donors and NGOs may prove difficult. This risk vould be reduced by regular coordination meetings to be held by the Government and by the organizational study to examine ways to harmonize procedures by various donors. Estimated Costs: a/ 2 of Local Foreign Total base cost US$ million Support to technical services 2.4 ..4 3.8 25 Training 0.8 0.4 1.2 8 Project management unit 0.8 1.1 1.9 13 BRO investment 3.2 3.1 6.3 42 Studies (including PPF refunding) 0.6 1.3 1.9 12 Total base costs 7.8 7.3 15.1 100 Contingenciess physical 0.3 0.3 0.6 4 price 2.0 0.3 2.3 15 Total project costs 10.1 7.9 18.0 119 a/ Inclusive of taxes and duties which are negligible. Financing Plan: US$ million 2 Government 0.9 5 IDA 9.3 52 Switzerland (SF12.5 million) 7.8 43 Total 18.0 100  - xi - Estimated Disbursementss (US$ million) FY88 FY89 FY90 FY91 FY92 FY93 FY94 FY95 Annual 0 2.5 0.9 1.2 1.6 1.5 1.1 0.5 Cumulative 0 2.5 3.4 4.6 6.2 7.7 8.8 9.3 Economic Rate of Returns Bottomland Models 222 Pump Irrigation Models 302 Mapst Nos. IBRD 20646 and 20647  NIGER SMALL RURAL OPKRATIONS PROJECT I. INTRODUCTION A. Proiect Background 1.01 A small rural operations (SRO) project was first proposed by an IDA mission which visited Niger in August 1980. In October 1981, IDA approved a credit advance of US$430*000 to the Government under the Project Preparation Facility (PPF) to support project preparation. A mission of the FAO/CP, the first in a series of FAO/CP and IDA missions, visited Niger In February-March 1982 to assist the Goversment in identifying a project for possible IDA financing and make arrangements for its preparation. Three pilot operations were launched in mid-1982 by the Ministry of Rural Development (MDR) with PPF funding. The PPF credit also financed operating costs of the Directorate for Regional Development and Microrealizations (DDRM), which was established at the Ministry of Planning (MP) in December 1984 to assume coordinating responsibilities for SROs, as well as consultant services and a nitional seminar on *micro-rdalisations' held at Zinder in February 1985. FAOICP conducted a feasibility study based on selected model SROs, which was submitted in early 1986. While these three operations did not fully meet expectations, important lessons have been learned about the need for careful preparation with the beneficiary community and effective follow-up by local staff. Subsequently, IDA requested that the Government prepare a work program consisting of a dozen or so SROo in conjunction with FORPROSA, the FAO training program for project analysis. 1.02 The preparation phase was thus unusually long because of difficulties in deciding on an appropriate institutional framework and in changing Government's perception that large-scale projects were more effective than small-scale projects. Preparation was finally completed at the end of March, 1987 and an appraisal mission visited Niger in April-May. Based on ten SROs already prepared by local staff, the appraisal team focused on the harmonization of selection criteria and the terms and conditions of the beneficiaries' contribution, the organization and management of the SRO project cycle, and local capability of preparation, appraisal, execution, and evaluation. B. The Rural Sector Resource Base 1.03 Niger is a land-locked country, bound by Algeria and Libya to the north, Chad to the east, Nigeria to the south, and Mali, Burkina Faso and Benin to the west. Niger's closest access to the sea is about 600 km from its southern border. The country covers 1.27 million km2, of which 75? is  desert, 152 semi-arid and less than 102 suitable for crop cultivation. The population, estimated at 6.1 million in 1983, is growing at an annual rate of 3.01. It is among the poorest countries in the world, with a per capita GNP of US$200 in 1985. Although agriculture remains the most important economic activity and the principal livelihood of the population; accounting for about half of the GDP and about 202 of the country's expotts, the country is constrained by poor agricultural resources. Per capita availability of arable land with at least 600 mm precipitation, and per capita availability of irrigable land are only one third of the average for the Sahelian countries. About 102 of the land receives an average 350-600 mm of rainfall, and about 12 of the land receives 600-800 mm of rainfall; there is no area receiving more than 800 mm. Soils are generally poor with little organic matter and poor capacity to retain nutrients. Rainfall is not only scant but also irregular, making Niger vulnerable to droughts. Rainfall during the last decade has been frequently below average, although it is not yet known if this !ower average is a continuous long-term phenomenon. 1.04 Nigerien agriculture is largely subsistence-based, producing low value crops such as millet (supplying about 752 of the total cereals production) and sorghum (providing about 202). The most important export commodity in the agricultural sector is livestock (cattle on the hoof) followed by cowpeas. With irrigated lands representing about two percent of the total cultivated area, the contribution of the irrigation subsector to national agricultural production is limited. 1.05 Despite its meager resource base, Niger has traditionally been self-sufficient in food production except during the severe drought periods. However, production has been increased to keep up with population growth by shortening fallow periods and cultivating more marginal lands. The over exploitation of the vegetative cover caused by human and animal population pressure has led to a decline of soil fertility and to soil degradation. As a consequence, traditional farming systems, based on long fallow periods as a way to generate soil fertility, are breaking down. This degradation of the environment has been further compounded by repeated droughts. C. Institutions Local Government 1.06 The village (some 10,000 in total) is the basic territorial and social entity in Niger. Several villages make up a "canton' (of which there are more than 200), each governed by a chief who is elected by the chiefs of the villages concerned and receives a Government allowance. The 35 districts ('arrondissements*) are legal entities and have autonomous budgets funded from local fees and taxes, Government transfer payments and loans from the aCaisse des prets aux collectivites territorialesn. The districts are governed by district Governors ('sous-pr4fets'), who report to their respective provincial Governors. The seven provinces are the highest administrative subdivisioas. These are governed by provincial  -3- Governors (Oprofets0), appointed as the personal representative of the President. 1.07 The district and provincial Governors coordinate the Government services in their area through technical committees under their chairmanship ("comit6s techniques d'arrondissements' - COTEAR, "comites techniques de departementsn - COTEDEP). The provincial Governors are seconded by a Secretary General and his deputy ("Secr4taire General Adjoint' - SGA) who is the provincial Director of the MP. The SGA is specifically responsible for all development activities in his province. Development Society 1.08 The structure of provincial and district technical committees (COTEDEP and COTEAR) under the chairmanship of the provincial and district Governors is gradually being replaced by the Development Society ("Soci4te de Developpement"). The idea was first proposed by the President around 1974 as an organization through which each member of the Society conscientiously participates in the development of the country. The Development Society is a hierarchical structure of development councils (as stipulated in the ordonnance no.83-26 of August 4, 1983) at village ("conseil villageois de developpement" - CVD), 'canton ("conseil local de d4veloppement" - CLD), district ("conseil sous-regional de dUveloppement' - CSRD), provincial ("conseil regional de d4veloppement' - CRD) and national levels (Iconseil national de developpement - CND). These development councils are presided by the village chief, the 'canton' chief, the district and provincial Governors and the president of CND respectively. They are in charge of development activities from conception to decision making and management. Their members consist of representatives of cooperatives, Samarya (youth groups), social and professional organizations. 1.09 The Development Society thus calls for decentralization in decision-making and management of development activities from central ministries to provincirl and district authorities. Although the transition of power to the local authorities has been slow and there still exist centralized administrative procedures (e.g., procurement), there are strong evidences that provincial Governors exercise more control over development activities in their provinces than before. The proposed project would enhance the decentralization process by giving authority and responsibilities to the provincial and district Governors and SGAs in managing an important SRO investment program. Cooperatives 1.10 The cooperative movement is based on a system of collective membership covering villages, or sections of villages in the case of large villages. Village groups (*groupements villageois' - GV) have been formed and 5-10 GVs are grouped into a cooperative. A GV is constituted by heads of households in a village or each section of a village. Since May 1984, irrsgation cooperatives which carry out marketing operations have also been  -4- specifically recognized and are gradually managing their own financial operations. 1.11 Cooperative unions ("unions locales* - ULC, Isous-rdgionales* - USRC, 'r4gionalesa- URC) are constituted at the different local and regional levels. The "Union nationale des cooperatives' (UNC) is the cooperative apex organization, officially covering 10,628 GVs, 1,167 cooperatives, 213 ULCs, 40 USRCs and 9 URCs. It is the successor to the 'Union nigerienne de credit et de coop4ration' (UNCC) which, since its creation in 1962 until the late 1970s. gained a solid reputation for promoting cooperatives. UNCC's cooperative promotion and input distribution activities were combined with, and often subordinated to, other functions such as the assembling and manufacturing of agricultural machinery, the management of development projects and the supply of foodstuffs to remote areas. UNCC became heavily indebted and was disbanded in 1984. Its successor organization UNC inherited a cooperative system without an economic basis. UNC has a limited number of staff; four officials at headquarters, two at each URC, and one at each USRC. Most GVs and cooperatives are inactive due to the lack of common economic activities and of effective training of cooperative members. The proposed project may indirectly help vitalize the cooperative movement by financing group investments to be managed by village groups; such shared enterprises may well become the catalysts of other group initiatives. Government Technical Services 1.12 The main Government service agencies supporting SROs have been the Ministry of Planning (HP); the Ministry of Rural Development (MDR), which in 1985 was split into the Ministry of Agriculture (MINAG) and the Ministry of Animal Resources (MRA); and the Ministry of Water Resources and the Environment (MHE). The latter three ministries were reorganized again in September 1987 into two ministriess the Ministry of Agriculture and Environment (MINAG/E) and the Ministry of Animal and Water Resources (MRA/H). 1.13 The MP is responsible for planning national and regional economic and social development. It draws up development plans, prepares investment budgets and reviews their execution, evaluates pre-investment studies, and coordinates foreign aid. Three departments have a direct role in SROs: "Direction du developpement regional et des micro-realisations (DDRM)', "Direction de l'evaluation et de la programmation', 'Direction du financement des investissements". In November 1986, the MP reorganized and strengthened provincial and district services. At the provincial levels, Provincial Directorates of Planning (Directions Departmentales du Plan - DDP) were created by regrouping Provincial Services of Planning and of Animation. Each DDP has the following services: 'le Service des Etudes et de lAm6nagement du Territoire' (Studies and Regional Land Management); Ole Service des Projets et Micro-rdalisations* (Small Rural Operations); Ile Service de la Statistique et de la Documentation' (Statistics and Documentation); Ole Service du Developpement Communautaire' (Coamunity Development) and "la Division Administrative et du Mat6riel" (Administration and Equipment). DDP is administratively under the  Secretary General of the MP but hierarchically under the Ministry of the Interior and Provincial Directors of Planning are Deputy Secretaries General (SGAs). While the Secretary General of the Province assumes mainly administrative responsibilities, the SGA is responsible for coordinating development programs in the province concerned and for control over their implementation. At the district levels, District Services of Planning (Oles Services d'Arrondissements du Plan") were newls created, consisting of Divisions of Studies and Programming; of Monitoring and Evaluation; and of Community Development. The District Services have not yet been well staffed and are presently staffed with former "animation* agents (Annex 4-1). 1.14 Until recently the MDR was responsible for agriculture and livestock production, research and extension. It .tlso managed farmer training centers and supervised the public agencies which intervene in production (ONAHA), credit (CNCA), and marketing (OPVN). MDR had three operational departments: "Direction des services de l'agriculture', "Direction de l'elevage et des industries animalese and "Direction du genie rural*. In September 1985 the first two departments became two separate ministries, MINAG and MRA, and the last one remained a department of the MINAG. 1.15 The MINAG had five Directorates at the central level: Directorates of Agricultural Production (responsible for extension services, seeds production and cooperatives support); of Plant Protection; of Studies, Programming and Agricultural Statistics; of Rural Engineering and of Administration and Pinance. These five Directorates are also represented at the provincial levels. Agricultural services are provided at the district levels, dealing with plant protection, statistics and extension services. Below the district levels, there is little activity. There are extension agents at "canton" levels but they are immobile with no means of transport or operating costs. About half of the posts are vacant. Aside from externally financed development projects, extension services do not exist or have only limited activity and efficiency. In September 1987, the MINAG absorbed two Directorates from the former MHE, namely the Directorates of Forestry and Fishery, to become the MINAG/E. An organizational structure of the new Ministry has not yet been officially announced. 1.16 The KRA similarly absorbed two Directorates from the former MHE, namely the Directorates of Water Resources and Hydraulic Works, to become the MRA/H. The MRA/H also has an important role in supporting SROs, as it is in charge of livestock development as well as water resource inventories and hydraulic infrastructure. 1.17 Under the new structure of the Development Society, technical services participate in activities of development councils in a consulting capacity. In practice, COTEAR and COTEDEP prepare documents of project proposals to be submitted to respective development councils for approval. At the district levels where most of the preparation work is done, agriculture, forestry, livestock and planning staff are normally  -6- represented. Rural Engineering (MINAG/E) and Water Resources (NRA/H) are represented only at the provincial level. Financial Institutions 1.18 The National Development Bank of the Republic of Niger (BDRN) is the main commercial and development bank with 11 branches located throughout the country and in all provincial capitals. It collects around 702 of all deposits and provides about 802 of all domestic loans to the economy. The financial health of BDRN declined dramatically in the early 1980s due to the general economic slump, which resulted in a high level of repayment arrears on outstanding loans to both private and public enterprises, and because of weak structures and management within the bank itself. Under the Structural Adjustment Lending (SAL), BDRN has been rehabilitated with a view to consolidating its finances, improving its profitability and strengthening its management. 1.19 The National Agricultural Development Bank (CNCA) was established in 1967 from a service of UNCC to provide input supply and marketing credit for the cooperative movement. CNCA had virtually no field representation and depended on UNCC staff to handle operations. CNCA has outstanding credits of CFAF 7.5 billion (US$ 25 million), most of which are considered unrecoverabJe. CNCA was forced to deviate from its original mandate and turned to prefinancing operating funds for some externally financed development projects and financing seasonal credits and operating deficits of public enterprises, directing less than 20? of its resources to farmers. Also the lack of stringent criteria for credit allocation and repayment has led to a high delinquency rate. Under SAL (para. 1.28), the Government has stopped new credit operations of CNCA since the end of 1985. 1.20 Postal checking accounts ("comptes cheques postaux" - CCP) can be opened at post offices ("Postes, Telephone et Tel6covmunications' - PTT) in all the provincial and district capitals. CCP/PTT ar6 therefore the most widely represented financial institutions. CCP accounts are centrally- managed by the CCP Niamey office through PTT's network of telexes and telephones. Although CCP does not provide overdraft facilities nor credit, it provides other financial services such as payment by checks, transfer of funds between different financial institutions and weekly statements of accounts. Non-Governmental Organizations (NGOs) 1.21 More than 30 NGOs are active in Niger and each operates under an operating agreement with MP (DDRM). Some 21 are members of the Private Aid Group which coordinates their programs and serves as a communications channel with Nigerien authorities. The SRO projects implemented by NGOs are put forward by local NGOs and/or Government staff. In order to be implemented, an agreement is approved by the provincial Governor and DDRM. An executing agreement is then established at the district level between the NGO, the responsible technical service and/or the district Governor. Usually a Government technical agent and an NGO staff member are jointly responsible for the implementation of rural works and both their signatures  -7- are required to disburse funds from a special project account, which is opened at a local bank, usually BDRN. Accounting is generally handled centrally by the NGO. 1.22 The NGOs financial means are limited, and project approaches, subproject selection criteria, responsibilities of beneficiaries, and involvement of Government and NGO staff vary considerably among the different organizations. However, they have a privileged role in implementing SR0s. Their contributions are recognized especially at the provincial level where they are often approached directly for assistance. D. Sector Issues and Strategy Recent Policy Dialogue 1.23 The end of the uranium boom and the ambitious public investment program have left Niger with a heavy foreign debt which reached 54? of GDP in 1983. Faced with deteriorating economic conditions, the Government has taken various actions to reduce the domestic and external financial Imbalances, which have been supported by IDF Standby arrangements and complemented with an IDA Structural Adjustment Lending (SAL). 1.24 The first phase of the adjustment programs in the agriculture sector concentrated on the areas where inefficiencies are most acute and where policy reforms would improve the country's budgetary and balance of payments' position. Specifically, the following four areas have been addressed: (a) grain marketing and pricing policy; (b) agricultural input subsidy; (c) agricultural credit; and (d) agricultural research. 1.25 Grain Marketing and Pricing Policy. One of the key agricultural policy reforms relates to the operation of the cereals marketing and storage agency (OPVN). In the past, OPVN intervened in cereals markets in order to support producer prices, keep consumer prices down and minimize price fluctuations. The price stabilization operations were often ineffective, yet very costly in terms of public resources. Under the SAL, the Government has decided to reduce OPVN's mandate to managing security stocks only, which will contain no more than 80,000 tons of cereals. The system of official price regulation for coarse grains has been abandoned and OPVN is to perform most of its buying and selling operations through a tender system of competitive bidding. 1.26 The implementation of these reforms proved difficult during 198586, partly because of the exceptional circumstances which prevailed. The severe drought of 1984 was followed by a bumper harvest in 1985 and therefore a fall in cereal prices. This led OPVN at the end of 1985 to continue purchase operations, some of them at fixed producer prices, despite a record level of stocks due to late arrivals of food aid. At the mid-term review of the SAL, the Government agreed on an action plan to implement the agreed reforms by (a) no cereals purchase in 1986/1987 until its stocks reach below the maximum level of 80,000 tons; (b) destocking those cereals that run the risk of rapidly deteriorating; and (c) no announcement of an official price for the 1986/87 crop year, not even an  *indicative price". 1.27 Agricultural Inputs. The reduction of subsidies for agricultural inputs aims at encouragin-g efficient production of agricultural implements and efficient use of agricultural inputs, while 1sssening the burden on the budget. The Government abolished the subsidy on agricultural implements in 1985 and is committed to gradually reducing rates of subsidization of other agricultural inputs. 1.28 Agricultural Credit. Measures in the area of agricultural credit under the SAL aimed at reducing the current system's (CNCA) financial losses while a new system is being studied. The Government decided to stop new credit operations of CNCA as from the end of 1985. Various studies made it clear that the limited demand for agricultural credit in Niger does not justify the existence of a specialized self-standing credit institution. The Government has, therefore, recently decided to create a task force to work out the details of another more cost effective system of agricultural credit. Until such a system is established, agricultural credit would be provided only on a limited basis through existing projects. The proposed project would not provide seasonal or investment credit (para. 2.06). 1.29 Agricultural Research. The future development of Nigerien agriculture largely depends on technological improvements which would make its limited resource base more productive at a reasonable cost. The standard technical package for rainfed agriculture based on chemical fertilizers, single cropping and animal traction does not respond to farmers' constraints and priorities and has failed to be widely adopted. Extreme variations in micro-climates and soil conditions make it difficult to apply a standard technical package to large areas. 1.30 While the prospects for a significant technological breakthrough are not bright, progress can nevertheless be achieved in improving farming systems by a cautious adaptation of some modern techniques to local systems and by inexpensive improvements in traditional agricultural techniques. The performance of the national agricultural research agency (INRAN), however, was disappointing. Its bias towards basic research neglected urgently needed adaptive and farming system research. Recognizing the need to redefine INRAN's research priorities, the Government has initiated a study, with assistance from ISNAR, to evaluate a current system of agricultural research and establish a long term research program. The draft report was completed in July 1987. 1.31 Public Investment Strategy. An important component of the adjustment programs in the agriculture sector is concerned with the reorientation of the investment strategy for the rural sector. The long-term investment strategy hinges on the potential of agricultural resources and on technological development. The Government has launched a major rural sector study, financed by SPPF, to reassess the agricultural potential and a survey of the agricultural research system. Until the studies are completed and can propose a long-term strategy, the Government interim strategy consists of a pragmatic investment selection policy, aimed  at making the best use of existing technologies with maximum participation of the rural population, while supporting long-term technological research for an integrated agricultural/livestock/forestry system. The Government also promotes improved cost recovery not only to reduce the burden on its budget but also to ensure sustainability of investment, by making beneficiaries more involved in decision making and responsible for operation and naintenance of investments made. Experience with Past Lending and Lessons Learned 1.32 Development efforts in the past decade or so have proven to be inadequate to increase the productivity of the agricultural resource base, or to even prevent further deterioration. The Bank has so far financed three projects in rainfed agriculture (Dosso, Maradi I and II); and two in irrigation (Namarigoungou and Irrigation Rehabilitation); two in forestry (Forestry I and II); and one in livestock. In rainfed agriculture, although Maradi I was successfully concluded, both Dosso and Maradi II have had implementation problems and failed to achieve the expected increase in crop production, largely because of inadequate technical packages under less favorable climatic conditions than a decade ago. While Dosso was terminated at the closing date due to the weak management in place, Maradi II has been extended and reoriented to (a) encourage farmers' initiative and participation and to make them more responsible for development activities; (b) develop a village-based extension system; and (c) gradually reduce technical assistance and cut operating costs. The experiences of SR09 under the Maradi II project are described in para. 1.41. 1.33 The Dosso project, approved by the Board in December 1979, became effective in February 1981 and was closed in June 1985 with only 162 (US$3.2 million) disbursed out of the total credit of US$20 million. The Project Completion Report (PCR) concludes that the impact of the Dosso project on production increases was marginal and that adoption of insufficiently proven technical messages by farmers was very limited. In addition to the technical problems, the Dosso project suffered from a weak management structure, which depended on the existing administrative institutions, such as provincial services of technical ministries, UNCC and CNCA for project execution. The project manager was supposed to coordinate technical and financial activities of various government services involved in the project, but his authority was never accepted by provincial chiefs of Government services. The PCR, however, points out some positive results of the project, in particular the development of bottomland for vegetable production, which apart from providing participating farmers with higher revenues has contributed to set up methods and rules for similar operations in other areas. However, most of the bottomland was rapidly neglected after the Dosso project wound up. This shows that land development is not sufficient to assure continuity of successful production. Institutional arrangements are indispensable to provide beneficiaries with technical assistance and advice over a number of years. 1.34 In irrigation, given the high costs of developing modern irrigation schemes, the less than satisfactory operation and maintenance  10 - practices of the existing schemes and the limited surface water availability, priority should be given to rehabilitating the existing systems and to developing small scale irrigation. The Irrigation Rehabilitation project, presented to the Board in June 1985, aims at establishing an effective system of operation and maintenance of the existing infrastructure including improved cost recovery measures. Because of continuously declining world prices of rice combined with the appreciation of the CFA franc vis-&-vis the US dollar, and the late reaction of the Government to temporarily protect local rice by import duties, marketing of locally prodused rice is facing a serious problem at the moment. 1.35 The major lessons learned from the past experiences are: (a) Heterogenous soils and localized rainfall patterns make wide application of a single technical package difficult; (b) Areas with good production potential exist but are quite localized and of a limited size; (c) Consequently, it is necessary to establish a system which is more flexible and cost effective than a large-scale productivity project with heavy management structures to tap this localized potential; 'd) Participation of rural population in decision making, execution and maintenance is crucial, and self-help endeavors and decentralization should be encouraged; and (e) Services and advice provided to farmers by the public administration have to be upgraded. Bank's Lending Strategy 1.36 IDA's lending program in the first half of the eighties consisted of an average of two projects per year amounting to about US$20 million. The program was small largely because of difficulties in project preparation. The strong policy dialogue that has developed over the last years between IDA and the Government has led to a substantial increase in lending. The total of the PY86 lending program was US$117.8 million to support structural adjustment program and operations in the health and transport sectors, followed by the FY87 lending program of US$98.4 million. 1.37 The objective of the Bank's lending and economic and sector work programs for Niger is to support the Government in its adjustment process and to address issues relating to long-term growth. To address the longer term development issues, IDA assistance will focus on alleviating the country's severe resource constraints, with particular emphasis on increasing agricultural production and human resource development, while promoting population control.  - 11 - 1.38 In rainfed farming at 600 mm/year or less, projects aimed at intensifying production through fertilizer and animal traction have failed (paras. 1.32 and 33). In recognition of these failures, an SPPF-financed rural sector study has been launched to reassess the agricultural potential of the meager resource base and to devise measures to realize such potential. In addition, a survey of the agricultural research system is well under way, aiming to prioritize research themes and to make the research institutions more effective, and this study is expected to lead to a research project. Meantime, the proposed project aims to make use of existing technologies where local conditions are favorable, albeit on a small scale, to generate rural income, thus complementing the broader IDA strategy. Moreover, the proposed project would strengthen the capability and credibility of technical staff of the public administration, which would lay a basis for the broader endeavors of improving agricultural support services in the future. In addition to the proposed project, IDA is helping the Government prepare a rural resource management project which will attempt to address issues of land management and integration of agriculture and livestock. E. On-Going Small Rural Operations 1.39 The concept of an SRO project arises from frustration over the limited success of past large-scale productivity projects. Recognizing this, the Government organized a seminar in Zinder in November 1982 on the organization of agricultural development projects and related policies, to search for new development approaches. The major thrust of the recommendations, proposed at the seminar and later endorsed by the Government, is a transfer of responsibility from parastatals to beneficiaries, with the intention of implementing self-management of development activities. 1.40 Local authorities and NGOs are carrying out SROs throughout the country. They have complemented the activities of regional and sectorial investment projects, and have helped to mitigate the food shortage caused by the recent 1984/85 drought by intensifying dry season crop production. Their activities, however, have been carried out according to many different rules imposed by various NGOs. Furthermore, disappointed with the failure of the large-scale productivity projects, major donors are increasingly interested in this SRO approach. Three existing projects have been revised to include SRO-type activities (Diffa-CIDA, Maradi II-IDA/CCCE/IFAD, Niamey-USAID). FED and CIDA have units in DDRM to finance SROs. Other donors and NGOs are already involved in or are considering getting involved in SROs. 1.41 Under the reoriented Maradi II project (financed by IDA/CCCE/IFAD), a program of SROs ("Programme d'actions d'interAt collectif") was initiated in 1985. Most demands have been so far for small irrigation schemes for vegetable production from shallow wells and cooperative input banks, whiclb have proven to be reasonably successful. Since the start-up of the program, the Maradi project financed 198 wells for vegetable production, a number of them using portable pumps, 48 input  - 12 _ banks, 25 mill dehullers, and 15 cooperative retail stores. Beneficiaries deposit 52 of the total costs as initial downpayment in a bank account and the funds deposited are to be used to renew medium-term assets and/or to finance other investments in the village. However procedures have in a number of cases been distorted. Farmers have been urged, under pressure r administrative authorities or project management, to request SROs wit little justification, without having been properly informed of thei commitments and of financial consequences. Downpayments have sometimes been made by the administration instead of the farmers and withdrawn as soon as investments were completed. Goods for retail stores have been procured by local officials at excessive cost. This illustrates the importance of a relevant institution in order to closely monitor a program which should not proceed too rapidly. At the request of the Bank, the Maradi It project has discontinued new investments and concentrates upon improving existing SROs. In the light of the Maradi project's experiences with SROs, the proposed project would reinforce training for district and provincial staff (paras. 2.15 - 2.17) and harmonize selection criteria applied by different sources of financing (para. 4.24). 1.42 In an effort to establish unified guidelines for SROs, the Government organized a seminar on the general rules of SRO operations in Zinder in February 1985 (*Sdminaire de Zinder sur les regles aen4rales de fonctionnement des micror4alisations") which defined the general selection criteria as follows: (a) existence of organized basic structures for SRO implementation; (b) physical and/or financial participation of beneficiaries: physical participation is mandatory in all cases; financial participation is required if renewable assets are involved; (c) existence of capacity of technical and administrative advices and supervision; (d) conformity with the technical and financial capacity of beneficiaries (levels of technology adopted and sufficient financial resources to bear recurrent costs); (e) capacity to sustain operation (replacement and reinvestment); and (f) conformity with the national and provincial development strategy. The above guidelines, however, are not yet specific enough for operational use. The seminar simply noted that specific criteria would be determined by the nature of operations (productive, non-productive, etc.), by sector and by objective of each operation. The proposed project is expected to help set up a unified approach (selection criteria, beneficiaries' participation, etc.) so that other donors could fund similar activities in a consistent fashion. 1.43 The Government and NGO staff have reported that considerable demand for SROs exists, but that only a small part is articulated by the  - 13 - communities in the form of concrete project proposals. As of June 1985 an inventory compiled by DDRM showed that about 400 SROs were either on-going or submitted as proposals by local Government services and NGOs. The inventory contains information for each project on location, type, cost, funding agency and status. Out of 400 SROs, around 180 were being implemented, 90 were under consideration for external financing and 130 were awaiting financing or lacked project documents. Some 290 of the SROs were for agriculture; the main demand is for irrigation (30?), general agricultural support (252), forestry (201), animal production and fishery (102) and various other activities including soil protection (152). The experience of DDRM suggests that some 80-100 SOs are requested annually. II. PROJECT OBJECTIVES AND DESCRIPTION A. Obiectives and Summary Descrintion 2.01 Proiect Obiectives. The proposed project would aim to develop a local capability to prepare, appraise, execute, and evaluate small rural operations with active participation of the rural population as well as to provide effective extension once SROs become operational. The project would strengthen the capabilities of the provincial and district technical staff who would assist farmers in the design, preparation and execution of SROs. The project is seen as the first phase of a program of IDA support for SR0s which would eventually have a national scope. Although the project is to finance productive investments (both in the short and long terms) in grant form, an increase in production is not in itself the primary objective; rather, it is a result of a concerted effort to support local initiatives by providing adequate technical advice and clearly defined rules for financing. More than two-thirds of investments to be financed under the project are consistent with four models which were elaborated based on ten SROs prepared by Nigerien staff as well as on an examination of requests in the DDRM inventory. The specific SRO models would increase crop, fruit and fuelwood production, enhance security of production, generate employment, protect the environment and raise rural living standards. 2.02 Summary Description. The project would finance the following specific items during a seven and half year disbursement period: (a) support to field technical services; (b) training of local personnel and beneficiaries in project preparation, appraisal, evaluation and management; (c) strengthening the management structure within DDRM (the DDRM unit) with the required technical and administrativo staff and logistical support; (d) development of bottomlands averaging 15-20 ha each for production of cereals, root crops, vegetables, and fruits;  - 14 - (e) construction and equipment of irrigation perimeters of an average 18 ha each for production of vegetables, fruits and cereals; (f) execution of soil conservation projects of about 150 ha each; (g) establishment of village forest and fruit tree nurseries (these would be included in SROs (d)-(f) above or independent); (h) execution of some 8ROs which have not yet been identified, such as aquaculture and apiculture; and (i) studies. 2.03 An investment program for the year zero prepared by beneficiaries with assistance from technical staff includes eight bottomlands development from shallow wells (1 with portable pumps) and two small-scale irrigation schemes with storage and irrigation basins and PVC distribution pipes. Host of them have village nurseries for live fences and some erosion control works (windbreaks). It is difficult to estimate how many SROs per each model would be requested by beneficiaries. However, it is assumed that around 45 bottomlands development, 15 small irrigation perimeters, 15 soil conservation works, and 20 village forest and fruit tree nurseries would be requested during a five year project implementation period. It is likely that one SRO would include more than one model. 2.04 Subproiect Selection Criteria. In order to be selected for financing under the project, SROs would have to meet the satisfactory criteria, demonstrating that they: (a) are directly productive farming activities in conformity with the national and provincial development strategy; (b) are financially self supporting; (c) are within the project area; (d) are requested by and are manifestly in the interest of a group or groups of producers; (e) can be easily maintained by beneficiaries; and (f) are environmentally sound. For SROs which are other than the models already identified, IDA would thoroughly examine the financ14l and economic viability of a representative model when such activities are requested for the first time (para. 4.21). 2.05 It is essential that a test of the beneficiaries' strong commitment to maintain investments made by the project in grant form be made. In addition to unskilled labor and locally available construction materials (e.g. sand, gravels), beneficiaries would therefore have to make a downpayment on a Capital Replacement Account to be followed by anaual  - 15 - payments if there are medium-term assets (motor pumps, animals etc) (para. 4.16). Furthermore, beneficiaries would be required to reimburse the costs of materials financed by the project for the construction of wells (cement, iron, etc.). The reimbursement funds would be used for other investments to benefit those who did not benefit from the grant investment. An exception to the reimbursement rule could be made, however, to self-standing erosion control works and village nurseries, benefits from which are deferred, In these cases, physical contribution alone in the form of unskilled labor would suffice. Assurances were obtained during negotiations that the above selection criteria (paras. 2.04 and 2.05) would be applied to SROs yet to be prepared as well as to unidentified SROs. 2.06 In spite of the absence of a reliable agricultural credit bank in Niger, the project would not finance seasonal or investment credit, given the small size of the subprojects, their wide geographic dispersion, and the difficulties and costs which would be involved in supervising and recovering the credit. Medium-term renewable assets would be provided to beneficiaries by the Government on condition that beneficiaries contribute and initial downpayment, prior to start-up, on capital replacement accounts and pay an annuity thereafter. Agricultural inputs could be financed as part of investment costs only for the first year if financial analyses indicate that revenues generated from operations would cover such annual expenditures which beneficiaries are responsible for financing thereafter. Since grant financing for SROs would not substitute for individual short term or commercial credit, commercial activities such as livestock fattening programs, grain mills and village retail stores would not be included. 2.07 Tracks, schools, dispensaries and other non-productive investments would not come under the scope of the project, in a deliberate effort to (a) avoid duplicating existing national programs such as primary health and education; (b) concentrate effort on production in light of the lack of productive investment opportunities; and (c) simplify the coordination task. B. Geoaraphic Coverage 2.08 Project actions would initially concentrate on selected districts in the Niamey, Dosso and Tahoua departments. The selection of these three departments is based on (i) the criteria of opportunities of mobilizing scarce management resources (e.g. outside the already heavily organized Maradi -IDAICCCE/IFAD and Zinder -CCCE/FAC projects); (i) demand (i.e. where potential beneficiaries would generate significant clusters of requests for subprojects); (iii) obvious sectoral concentrations (e.g. small-scale irrigation based on lift from surface water, bottomland development, for which there is potential in all three departments); and (iv) localization of project actions within a reasonable radius from the DDRM unit in Niamey. 2.09 The phasing in of individual SROs is based on a gradually increasing capacity to identify, prepare and appraise operations. This capacity would be strengthened under the project. In order not to disperse  - 16 - efforts too thinly over wide geographic areas from the outset, project actions would initially (during project years 1-2) mainly be implemented in two districts in each department, increasing to three in PY3, for a total of six districts in PY1-2 and nine districts in PY3-5. Over five years the project would cover half of the districts in the three departments. 2.10 The selection criteria of the districts which have been proposed by the Government concerned a number of aspects which aret geographical (ease of access, climate, demographic pressure); administrative and technical (proximity to provincial capitals, coverage of technical staff); human (participation of population in previous projects, experience of technical and administrative staff in managing SROs); and economic diversity of development potential (irrigated crops, livestock, small-scale rural industries). These criteria as a means of defining the core project area are satisfactory and the project could be implemented in the following districts: Province District PYl-2 PY3-5 Niamey Tillaberi Tillaberi Filingue Filingue Say Dosso Dogondoutchi Dogondoutchi Birni-N'Gaoure Birni-N'Gaoure Dosso Tahoua Madaoua Madaoua Bouza Bouza Birni-N'Konni C. Detailed Features Support to Field Technical Services 2.11 Proiect Preparation/Appraisal. Provincial and district staff of technical ministries (MINAGIE and MRA/H, in particular), as well as the the MP, would play an important role in the identification, preparation, execution and evaluation of SR0s. They are poorly equipped with inadequate means of transport and little operating funds and are often inexperienced in performing these functions. The project would therefore provide a 4-wheel drive vehicle at each province and district as well as vehicle operating costs. In order to strengthen field services, the project would finance a development volunteer in each province, a total of three, (e.g. rural works advisors, community development trainers, etc.) to assist the SGAs who would be responsible for coordinating activities in their provinces. Vehicles for the provinces would be placed under the responsibility of the SGAs of DDP and would be used jointly by development  - 17 - volunteers, financial controllers and any provincial technical service staff who would provide technical assistance to SROs. Likewise, vehicles for the districts would be under the joint responsibility of the district staff working as a team (agriculture, livestock, forestry and planning). The project would also finance incremental office equipment. The terms and conditions of the services to be rendered would be specified in framework agreements between the DDRM unit and the provincial and district development councils concerned (para. 4.10). 2.12 Extension Services. Technical support would be provided to farmers through extension services after SROs become operational. Many farmers indeed are not familiar with irrigated crops. However, agricultural extension agents at ucantons levels ('chef de district agricolel--CDA) often have no means of transport nor operating funds and do not visit farmers and yet are occupied with various administrative tasks such as collecting agricultural statistics. At levels below that of the CDA, no extension agents are in place except for externally financed projects. 2.13 Small scale irrigation would provide an opportunity to upgrade and revitalize extension services, given that technical improvements can be achieved more easily and faster on irrigated perimeters than in rainfed farming. This would serve as a starting point to gradually improve other activities as well through better extension: erosion control, rainfed crops, integration of agriculture and livestock, and better management of land resources in general. 2.14 The project therefore would improve the efficiency of extension services, in the areas where SROs would be developed. All the CDAs in place and contractual extension agents (12 in PYl-2 and 18 in PY3-5 to be financed by the project) would be provided with transport (motor cycles), vehicle operating costs and training to improve their technical as well as communication skills. Vacant CDA posts would be filled as much as possible through internal transfer. They would be regularly supervised by district and proviacial agricultural staff along the principles of the Training and Visit system. Each contractual extension agent would ultimately provide extension advice to about three villages. Training 2.15 Staff Training. A training program under DDRM's responsibility, executed by FAO and financed by Switzerland, has assisted in training Nigerien staff on project analysis ("Formation en analyse de projets au Sahel' -FORPROSA) since the end of 1984. The project is managed by a resident expert from FAO. At the request of DDRM, this training program has concentrated since the end of 1986 on training sessions exclusively for local staff in the six districts where the SRO project would be implemented during the first two years. The program consists of two training modules, the preparation of SROs and tCe other for their organization, monitoring and evaluation. Staff at the district level (two each from Agriculture, Forestry, Livestock and Planning) and some staff at the provincial level (Planning and Rural Engineering) participated in the module for project  - 18 - preparation. To make the training more practical, participating teams prepared the ten SROs of the project's year zero work program, which would be financed with advances from the PPF. 2.16 Although the FORPROSA program has helped district staff in developing multidisciplinary team work and the ten SROs have provided a good basis for project appraisal, preparation suffered from a number of shortcomingss (a) SRO proposals often consist of a list of requests from villagers, without an analysis of technical feasibility and options nor consideration of the absorptive capacity of the villagers and the administration; (b) project documents lack information on proposed sites and their environment due to the absence of base line data; (c) analysis of agronomic aspects is usually insufficient; and (d) coordination at district level remains unsatisfactory (e.g., district staff did not consult the MHE to assess the long-term availability of water resources for irrigation). 2.17 In spite of these shortcomings, it would be essential that the FORPROSA training program be continued considering the shortage of qualified staff and the frequent staff transfer. However, the FORPROSA program has only modest human resources and cannot provide continuous follow-up support to staff already trained. The project would complement the FORPROSA program by financing short-term consultants to follow-up on local staff who have received initial training and by providing regular recycling sessions. 2.18 Extension Agents Training. Training to improve technical as well as communication skills would be provided to contractual extension agents, CDAs, district chiefs of agricultural services ("chefs d'arrondissements de services agricoles") and provincial chiefs in charge of extension services. Training would be provided through service contracts by locally available trainers from two agricultural and livestock schools, research .taff as well as short-term extension consultants/specialists. An extension specialist for a newly created post in the Bank's Resident Mission in Niamey would also assist. 2.19 Beneficiaries' Training. Literacy and management training for beneficiaries would be indispensable to enable them to manage assets created by the project, and would be provided through service contracts by CLUSA (Cooperative League of the USA). The USAID-financed CLUSA project aims to train trainers for cooperatives and to train members of cooperatives and GVs. Former UNCC agents were trained to become 'cooperative technical assistants' and subsequently trained about 400 cooperative members in management and functional literacy. The project would finance services rendered by the CLUSA project in functional literacy and management training to beneficiary groups of the proposed project.  - 19 - DDRM Unit 2.20 A unit would be set up in DDEM of the MP (the DDRM unit) which would include a Nigerien Project Coordinator, one local specialist in project analysis and management, and one local accountant. The services of an internationally recruited Financial Director would be financed during project implementation. The staff would be based in Niamey, but would spend much of their time in the field. The project would also finance support staff in the DDRH unit (three drivers and one secretary), three local accountants at provincial levels, and one bookkeeper at each district (6 in PYl-2 and 9 in PY3-5). DDRM and DDP would provide the use of existing office space. The project would provide two four-wheel drive vehicles, two station wagons and office equipment for the Niamey office. It would also finance data processing services for monitoring and evaluation of ongoing SROs at DDRM. SRO Investment 2.21 The specific locations of the sub-projects have not yet been identified, except for ten SROs already prepared for the year zero work program, since they will depend on the interest manifested by particular farmer groups. The information about the extent to which SR0 will be requested corresponding to the four models described below is, of course, imperfect because their selection is based on ten SROs and on the existing SR0 inventory, which are believed, however, to reflect reasonably well a mix of these rodels. 2.22 Development of Bottomlands/Swamps Forty five groups of producers (60 farmers per site on average) would be assisted to develop irrigation perimeters of around 15-20 ha each in bottomlands or swamps usually with permanent surface water, drawing on shallow groundwater resources. The proposed type of development is much in demand by producers, is technically simple, and a large number of suitable sites are available. Typically this type of SR0 would involve two cement-lined open wells for each 1 ha area with an average depth of lOm, of which 5m is under water; one storage and two metal irrigation basins per each well; 70m of PVC underground pipes per each well connecting three basins; installation of one 'delou", lifting device with one ox per well; small agricultural tools; and agricultural inputs such as seeds and fertilizers for the first yeaz only. In addition, it would typically include live fences to protect irrigation perimeters, plantation of windbreaks and village nurseries of plants for live fences and windbreaks. The total construction cost per ha including skilled labor and the cost of transportation of materials, but excluding village nurseries, is estimated at CFAF 1.5 million (US$5,080), of which about 40? is for the construction of the well. For illustration purposes, it is assumed that each family would cultivate 0.25-0.33 ha of irrigated land. Farmers would grow mostly sorghum and cowpeas with complementary irrigation and rice, groundnuts and fodder during the wet season, and cassava, maize, sweet potato, onions, and vegetables during the dry season. The choice of crops would, however, be left to the farmers. The project would finance construction materials, inputs, skilled labor and transportation while beneficiary groups would provide all the unskilled labor for well  - 20 - construction, locally available materials such as sand and gravels, perform all farming operations and bear all the operating costs from the second year. 2.23 Construction and Eauioment of Small-Scale Irrigation Perimeters Fifteen groups of producers (72 farmers on average) would be assisted to construct and operate. small irrigation perimeters, using portable motorpumps, averaging 18 ha each near urban centers. The typical model would consist of one cement-lined open well for 1.5 ha with an average depth of 10m, of which 5m is under water; installation of a 8 l/s capacity motorpump for each 1.5 ha plot; construction of one storage and six irrigation basins per well; 300m of PVC underground pipes connecting seven basins; small agricultural tools for cultivation and distribution of water; and agricultural inputs such as seeds and fertilizers for the first year only. Like bottomland development, it would include live fences, windbreaks and village nurseries. The total construction cost per ha including skilled labor and transportation of materials, but excluding village nurseries, is estimated at around CFAF one million (US$3,390). Producers would have the same responsibilities as for the bottomlands operations. In addition, they would pay for the operation and maintenance of their pumps and save for their replacement. Sites for this typa of operation would have to be chosen in relation to their easy access to markets because of the relatively high operating costs. The choice of crops would be left to the farmers, but the farmers would be expected to grow a greater proportion of high value crops such as vegetables to meet their annual financial obligations. 2.24 Soil Conservation Operations This component would aim to rehabilitate sterile areas where no cultivation is currently possible as a result of erosion. The 150 ha SRO model would consist of constructing rock bunds which would allow more time for water infiltration and disrupt heavy rainwater flow. It would also consist of mechanized plowing to break compacted soils between rock bunds so that conditions become adequate to grow millet or sorghum. The project would provide the necessary design and supervision services, and finance tractor rental costs for land preparation and donkey carts to transport rocks. The beneficiaries would provide a substantial amount of labor to transport and construct bunds (8-10 days/ha and 1200-1500 days per site). Investment costs per hectare are estimated at CFAF 1,000 (US$54) excluding labor. Fifteen operations are expected to benefit around 100 families. 2.25 Village Nurseries Hedges and tree windbreaks would be planted to protect the agricultural areas and increase their productivity by reducing evapotranspiration. The establishment of 20 nurseries would be financed to meet the tree requirements of the above models and to cater for other purposes such as tree plantation for dune stabilization and village forestry. The experience of NGOs suggests that these nurseries can be managed by villagers who have previously been adequately trained. The model nursery would cover 2500 m2 which would be equipped with a cement-lined well and udeloum. The cost per nursery is estimated at CFAF 1.2 million (US$4,070). It would have a capacity of 50,000 plants annually which would be sufficient for live fences and windbreaks for about 3  - 21 - irrigation models (15-20 ha) and it would therefore be capable of supplying other villages. The capacity of the nurseries and the selection of trees would have to be adjusted to meet the requirements of the village concerned and demands for plants from other villages. Unidentified Activities 2.26 The models described in the previous paragraphs, such as small scale irrigations and soil conservation projects, are considered priority actions, aiming to increase production and income on the one hand, and to protect the environment on the other. SROs would, however, be an integral part of village development programs and once these priority actions have been taken, other accompanying activities including livestock activities, input banks, and storage as well as other productive projects, such as aquaculture and apiculture, may emerge during project implementation. The proposed project would therefore provide a large allocation of funds (about 252 of total cost of sub-projects) to finance SROs which do not fall within the category of models already identified and appraised, following the procedures specified for the SRO project cycle (paras 4.19-4.22). Studies 2.27 The project would finance a number of studies to provide better knowledge of physical environment and socio-economic conditions, such as complementary hydrogeological studies, monographs of selected areas, studies on land tenure, etc. These studies would be subcontracted to local or international consultants, the University of Niamey (e.g., monographs), the Rural Code Commission (land tenure) and NGOs. In addition, a major organizational study with the objective of harmonizing the financing procedures of SROs would be undertaken with the Swiss bilateral funds. D. Environmental Impact 2.28 The project, through the financing of erosion control works and tree plantation, would have a beneficial effect on the environment. The project would help beneficiaries build simple works to minimize erosion caused by violent run-offs. It would also finance tree plantations for sand fixation and wir,dbreaks, often as part of bottomland and small-scale irrigation development. III. PROJECT COSTS AND FINANCIAL ARRANGEMENTS A. Cost Estimates 3.01 Total projeot costs, including contingencies as well as taxes and import duties, which are negligible, for the five year implementation period (1989-1993), are estimated at CFAF 5.2 billion (or US$17.7 million equivalent), with a foreign exchange component of 442. On the basis of the standard disbursement profile for agricultural credit projects in all regions, it is projected that it would take 7 1/2 years to disburse the proceeds of the credit. Through the increase in price contingencies, this  - 22 - would increase total project costs to CFAF 5.3 billion (or US$18.0 million). Project costs are summarized below. PROJECT COST SU MARY Local Forolgn Total Local Foretgn Total X Foreign X Tot&l CFAF millton CFAF million exchange base cost Support to technical services 716 402 1,120 2.4 1.4 3.0 se 26 Training 289 le 846 0.8 0.4 1.2 81 8 DORM Unit 228 838 682 0.6 1.1 1.9 80 18 SRO Investment 969 907 1,658 8.2 8.1 6.8 49 42 Studios (lnluding PPF refunding) 177 888 580 9.6 1.8 1.9 s8 12 Total baseline costa 2,819 2,184 4,458 7.6 7.8 16.1 46 1s physical contingencies 97 98 t9o 9.8 0.8 0.6 49 4 price contingencies So8 82 679 2.0 0.8 2.8 14 15 Total projcct costs 8,094 2,8e9 5,318 10.1 7.9 10.0 44 119 3.02 Unit costs are based on May 1987 prices, adjusted to November 1987 -- the date of negotiations -- using an adjustment factor of 4? on local and 0.72 on foreign costs. Costs include physical contingencies of IOZ on subprojects and office equipment and furniture. The total allowance for physical contingencies amounts to 42 of base costs. Price contingencies, which amount to 152 of base costs or 13? of total costs, have been calculated at the following annual percentage rates: Assumed price contingencies (in 2) costs 1988 1989 1990 1991 1992 1993 foreign costs 1.0 1.0 1.0 3.5 3.5 3.5 local costs 6.0 6.0 6.0 6.0 6.0 6.0 The price escalation factors follow forecasts of international inflation for foreign supplied goods and services, and estimated annual inflation in Niger for local costs. Total contingencies amount to approximately 19? of base costs and 16? of total project costs. Cost estimates are detailed in Annexes 3-1 and 3-2 and in the working paper, B.6. 3.03 Indicative Proaramming. It is assumed that, for the purpose of determining project costs, the pace of preparation and financing of SROs would be as follows:  - 23 - number of districts 6 6 9 9 9 number of ROs 2 2 2 3 3 per district total number of BROs 12 12 18 27 27 (96 in total) B. Proiosed Pinancina Plan 3.04 In view of the Government's tight financial situation, it is proposed that its contributiot be limrited to the salaries of incremental civil servants, the provision of office space and utilities. It is estimated at US$0.9 million and would constitute about 52 of the total costs. 3.05 The Government of the Swiss Confederation would contribute SF12.5 million, or US$7.8 million, as a grant. IDA would finance the remaining US$9.3 million. The financing plan is thus as follows: Financint Plan US$ million (a) Government 0.9 5 IDA 9.3 52 Switzerland 7.8 43 TOTAL 18.0 100 IDA and Switzerland would jointly finance. (502 each) all the disbursement categories with the exception of category (8), the refunding of IDA's PPF. C. Procurement 3.06 Given the limited number of SROs, their small size, wide geographic distribution and phasing over time, foreign firms are less likely to bid for contracts. However, orders for vehicles and equipment would be grouped whenever possible at the central or provincial levels. Any such grouped purchase order with a value in excess of US$100,000 (CFAF 30 million) would be let after international competitive bidding following IDA guidelines. For orders valued between US$100,000 and US$20,000 (CFAF 6 million), competitive bidding in accordance with local procedures which were reviewed and found acceptable by IDA, would be employed. Local competitive shopping would be used for those valued under US$20,000 (CFAF 6 million).  - 24 - NIGER SMALL RURAL OPERATIONS PROJECT PROCUREMENT METHOD AND DISBURSEMENTS PROCUREMENT METHOD a/ PROJECT ELEMENT ICB LCB OTHER N.A. TOTAL COST (US$ MILLION) Civil works and supplies - 4.4 _ - 4.4 (2.2) (2.2) Vehicles 1.0 - - - 1.0 (0.5) (0.5) Equipment & furniture - 0.3 - - 0.3 (0.15) (0.15) Agricultural inputs 0 0.9 0.3 - 1.2 (0.45) (0.15) (0.6) Consultants' services - 2.5 - 2.5 studies and audits (1.25) (1.25) Local personnel, training, - - 2.8 bI 2.1 El 4.9 operating costs (1.4) (0.6) (2.0) Goods and services for - - - 2.2 2.2 unidentified SROs (1.1) (1.1) Refunding of Project - - - 1.5 1.5 Preparation Advance (1.5) (1.5) Total 1.0 5.6 5.6 5.8 18.0 (0.5) (2.8) (2.8) (3.2) (9.3) aI Figures in parentheses are the respective amounts financed by the IDA credit. b/ Fuel to be purchased in bulk without taxes, and training. cl Personnel and non-fuel operating costs. 3.07 Until recently, all contracts of over CFAF one million (US$3,390) had to be approved by Primary Commissions at the level of technical ministries and then by the Central Procurement Commission (CCM). Moreover, provinces and districts could not procure without the authorization of the central ministries. Under the Public Enterprise Sector Adjustment Program, the Government agreed and has changed the procurement rules to (a) increase the threshold below which contracts are not required, from CFAP one million  - 25 - to CFAF five million; (b) create provincial procurement commissions; and (c) authorize provincial procurement commissions to launch, review and approve procurement valued below CFAF 15 million. Procurement valued at more than CPAF 15 million has to be approved b' CCH. These measures already taken are in line with the decentrali ed decision-making and financial management of the proposed project Agricultural inputs totalling US$0.9 million would be procured by LCB since such inputs would be provided in small quantities to widely dispersed SRO sites, and only during the initial year of each SRO. Animals valued at US$0.3 million would be provided by the villages concerned or purchased at local markets. LCB procedures have been adopted for procurement of construction materials because the scope for grouping is limited, given the scattered and dispersed nature of the individual operations and small volumes to be procured and in any one year about US$0.9 million would be spent, which includes the cost of skilled labor and transport as well as the cost of construction supplies and materials. In order to speed up execution and make district staff more responsible, procurement of goods for SRO investment such as cement, iron rods and pumps would be carried out at the district level as far as suppliers of such goods are available in the districts. District staff would receive technical assistance in procurement practices from provincial staff and the DDRH unit. 3.08 Expatriate staff (including volunteers) and short-term consultant costs amount to about US$1.4 million, including contingencies. Assurances were obtained at negotiations that consultants with qualifications and experience acceptable to IDA would be recruited following IDA guidelines. A Financial Director and financial controllers in the provinces would be recruited through a package contract with an accounting firm preferably represented in Niger and associated with a Nigerien firm. 3.09 Contract Review. Bidding documents for contracts estimated to cost the equivalent of US$100,000 or more would be cleared with IDA before tendering, and recommendations for contract awards would be submitted to IDA for comments prior to award. This would cover about 6? of the total estimated value of contracts for goods. D. Disbursement 3.10 DA credit would be disbursed over 7 1/2 years in accordance with the standard disbursement profile for agricultural credit in all the Regions and against the following categories:  - 26 X US$ SDR 2 of total exDenditures a/ (1) Civil works and supplies 1.8 1.37 1002 (2) Vehicles, equipment and furuiture 0.6 0.46 1oo0 (3) Agricultural inputs 0.45 0.35 1002 (4) Consultants' services, studies 1.15 0.88 1002 and audits (5) Operating costs 1.05 0.80 1002 (6) Training 0.4 0.31 1002 (7) Goods and services for 0.85 0.65 1002 unidentified SROs (8) Refunding of project preparation advance 1.5 1.14 1002 (,' Unallocated 1.5 1.14 TOTAL 9.3 7.1 aI Percentage of total expenditures for IDA financing. The total expenditures to be financed by external sources would be US$17.1 million. IDA and Switzerland would finance 502 each of the total expenditures of categories (1) to (7). Category (1) includes construction materials and supplies for wells, irrigation basins, soil conservation works, and tree nurseries. Category (3) for agricultural inputs includes fertilizers, pesticides, agricultural tools and animals. Category (5) for operating costs includes the salaries of contractual local staff and vehicle operating costs. Category (6) for training includes service contracts with training institutions and subsistence payments to training participants. 3.11 Disbursements for categories (1) through (6), for all expenditures valued at less than US$20,000, would be made against Statements of Expenditure (SOEs) certified by the Project Coordinator and the Financial Director. The minimum amount for reimbursement for direct payments would be set at US$20,000. Accounting procedures for the project will be set up with PPF funding and would be designed to provide justification for SOEs for the project. The documentation of expenditures would be retained by the project and made available for inspection by IDA during project supervision. The MP would issue withdrawal applications. An estimated disbursement schedule for the project is shown in Annex 3-3. The closing date of the IDA credit would be June 30, 1996.  - 27 - 3.12 In order to expedite disbursements and ensure that funds for the project are available when needed, the Government would open two special accounts (revolving fund); one for IDA and the other for Switzerland in a commercial bank in the name of the project. Immediately after credit effectiveness, IDA and Switzerland would make an initial deposit of CPA? 220 million each (US$0.7 mAllion equivalent) into respective special accounts. A total of CFAF 440 million would represent about four months' expenditure. The account would be used to finance the local and foreign costs of eligible expenditures financed by IDA. The special account would be replenished on a monthly basis or when it is reduced by a third, whichever comes first. IV. ORGANIZATION AND MANAGEMENT A. Proiecc Execution 4.01 The project would be executed by the DDRM unit, which would be established in the DDRM of the MP, with assistance from Government technical services, groups of producers and possibly NGOs. Proliferation of management units by various donors in the DDRM, however, is not an ideal situation (Annex 4-1). An organizational study would be undertaken with the Swiss bilateral funds to analyze the existing organizational structure of DDRM, procedures of financing SROs by different donors and possible options for harmonization of procedures, including an autonomous structure of a Rural Development Fund. The organizational structure of the project would be amended if necessary once the study is completed and a decision is taken by the Government in consultation with IDA. Central Organization 4.02 The DDRM unit would retain ultimate responsibility for project execution, although decision-making would be decentralized in most cases to the Provinces. The technical committee was created by larrdte* no. 01/MPlDDRM of July 10, 1935 with representatives of nine ministries. Its roles are to approve overall annual programs of SROs proposed by each province, carry out financial arbitration if necessary, taking into account the regional balances and overall availability of funds, and ensure the coordination of technical assistance required for the preparation and execution of SROs through their provincial and district services. 4.03 The "Comit4 Interministeriel de planification et de mise en oeuvre des micrordalisations', created by "arrAte* no. 27 of September 28, 1984, would be responsible for defining policies for SROs ('microrealisations"). The technical committee would raise any questions pertaining to policy implication to the 'Comit4 Interminist4riel'. Responsibilities of the DDRM Unit 4.04 The unit would be responsible for (a) diffusing information on project selection criteria and procedures to be followed through to appraisal; (b) assisting technical services and villagers in subproject  - 28 - preparation by issuing guidelines; (c) participating in appraisal coordinated by DDP; (d) coordinating training activities; (e) monitoring progress of SROs under preparation as well as under implementation and undertaking periodic evaluation of ongoing operations; (f) overall financial control and accounting; and (g) preparing annual progress reports which would include the consolidated project accounts and statement of the status of each Capital Replacement Account. Responsibilities of Develogment Councils 4.05 Development councils at village, district, and provincial levels would be a major decision-making structure. Proposals would be submitted to the development councils from the lower to higher echelons for approval. At each level, the presidents of the respective development councils would be assisted by the technical services to prepare SROs. The Government would take all necessary measures to grant authority to CRDs presided over by provincial Governors to approve their respective provincial program of SROs. Once an SRO is approved, provincial and/or district technical services with the possible assistance of NGOs would be designated by the provincial Governor to help the village implement the SRO. In addition, district Governors would be responsible for monitoring regular payments by beneficiaries to the Capital Replacement Accc nts and bring attention in case of non-compliance for notifying the provincial Governors and the DDRM unit, in order that they take the necessary action. Responsibilities of Administrative and Technical Services 4.06 The Provincial Director of the MP in his capacity as SGA to the CRDs would be responsible for coordinating and supporting SRO programs in his province. His specific responsibilities are tos (a) diffuse information about the project; (b) make sure that selection criteria and terms and conditions of the beneficiaries' participation are met; and (c) make sure that provincial technical services provide adequate technical assistance to the preparation/appraisal/execution of SROs. 4.07 Various technical services would be called on to help beneficiaries prepare SRO proposals at the request of development councils. District Governors would designate responsible technical services as coordinators of SRO programs in their districts. The designated technical service wotuld have technical responsibility for the execution and supervision of works and would report quarterly to the Project Coordinator on progress. Participation of NGOs 4.08 Given their long experience in SRO-type operations and widespread presence in the field, the NGOs' competence would be tapped as much as possible for the execution of the project. Although it is up to the DDRH unit and the CRDs and CSRDs to decide what types of participation are needed from NGOs, they could include technical advice to district staff, execution of SROs, training and execution of specific studies.  - 29 - Responsibilities of Beneficiaries 4.09 The beneficiary groups would have to provide all the unskilled labor required during construction and locally available materials; collect the cash to be deposited prior to the initial installation of medium-term assets, if any, and subsequently collect the annuity to be paid; allocate land; devise and make operative rules for access to common goods and services; and collect the cash andlor provide the labor for operation and maintenance of shared facilities. Each group would maintain simple accounts for common expenditures and receipts, and the technical services/NGOs would assist them as requested, using guidelines on accounting procedures to be prepared by DDRM with PPF financing. Contracts for SRO Execution 4.10 SROs would be executed according to the terms and conditions specified in the contracts. Two types of contracts are envisaged; (1) a framework agreement between the DDRM unit, and CRD and CSRD; and (2) a development contract between the CSRD and the group of producers, representing the beneficiaries. The framework agreement would cover an overall annual program for each province, and, based on the national policy concerning rules and conditions for eligibility, would define the respective roles of the project, provinces and districts in technical assistance, logistical support, supervision and training. It would also mention the frequency and type of reporting required. The development contract for each SRO, written in the local language, would define responsibilities between the local authorities (CSRD) and beneficiaries (group of producers). In particular, it would indicate the physical and financial contributions of beneficiaries, project contribution, management mechanism, operating Lechanism of the Capital Replacement Account, etc. The Government is requested, as a condition of disbursement for civil works and supplies, and agricultural inputs (categories (1) and (3)), to present drafts of the framework agreement and the development contract satisfactory to IDA. B. Financial Management. Accounts, Audits and Reporting 4.11 Project accounting would fall under the overall responsibility of the Project Coordinator. For expenditures other than direct investment of SROs (vehicles, vehicle operating costs, salaries, training and studies), the Financial Director, together with a local accountant in the DDRM unit in Niamey, would be directly responsible for purchase, payment and bookkeeping. For expenditures related to the direct investment of SROs, whose financial management would be decentralized to the district and provincial levels, the Financial Director would regularly supervise, ensuring that proper accounts are kept of each operation by a bookkeeper in each district with assistance from financial controllers in the provinces, and ensure that adequate justification for expenditures is submitted regularly from the districts through the provinces to the DDRM unit. He would prepare SOEs and disbursement requests and consolidate annual accounts.  - 30 - 4.12 In line with the decentralization of decision-making regarding SRO investments, financial management for expenditures directly related to SRO investment would also be decentralized to the district levels, the closest level to the center of actions, i.e. villages. Secondary accounts would be opened in the name of the SRO program at each district, either at branches of the BDRN or post offices (six accounts during the first two years and then nine accounts), and an advance would be issued for amounts equivalent to about three months' expenditures of district SRO programs from the central special account. An initial deposit to each secondary account is estimated at around US$65,000. A district Governor and a coordinator of the district SRO program would cosign checks. Bookkeepers at each district financed by the project would keep receipts and invoices and send them to the DDRM unit through provincial financial controllers every month. Provincial financial controllers also financed by the project would regularly visit districts to ensure that funds allocated are used in conformity with their purposes and budget. Based on receipts and invoices on the one hand and provincial financial controllers' ex-post evaluation on the other, the DDRM unit would replenish district accounts. 4.13 The accounting system of the project would be established by a consultant with PPF financing. Assurances were obtained at negotiations that the project establish and maintain separate project-related accounts in accordance with sound and accepted accounting principles and practices. It would be a condition of credit effectiveness that the project accounting system and procedures satisfactory to IDA would be established and that the Financial Director would be recruited. Assurances were obtained at negotiations that three financial controllers in the provinces and bookkeepers at each district would be recruited no later than October 1, 1988. 4.14 The project-related accounts would be audited annually during project implementation by independent auditors acceptable to IDA and financed by the Project. Audited financial statements and reports, of such scope and in such detail as IDA may reasonably request, would be submitted to IDA within six months of the end of each fiscal year. The auditor's report would include a statement on the adequacy of the accounting system and internal controls, and whether or not IDA funds have been used for their intended purposes. The report would also confirm that SOEs submitted as justification for disbursement under categories (1) through (6) of para 3.10 correctly reflect detailed records kept by the Project. Assurances on the above were obtained at negotiations. 4.15 The Project Coordinator would be responsible for issuing annual progress reports and submitting them to IDA, including budgeted and actual expenditures, the progress achieved in the preparation and execution of SROs, and the status of each Capital Replacement Account. He would also submit to IDA in draft, for information, annual work programs and budgets prepared by the provinces (para. 4.21). Within one year of the credit closing date, the Project coordinator would be responsible for preparing a project completion report which would summarize the project's performance and evaluate lessons learned. Assurances on all the above were obtained during negotiations.  _ 31 - C. Capital Replacement Accounts 4.16 One of the features of the project would be a replication of the generally successful precedent in Senegal, that medium-term assets would be provided to groups of producers on condition that the producers contribute to the Capital Replacement Accounts at levels which would permit the replacement of the assets instead of through medium term credit. The total value of such assets (mainly pumps and animals for "delou') for the model SROs at current prices would be about CFAF 150 million (US$480,000). The use of Capital Replacement Accounts would avoid delays while awaiting the reorganization of the agricultural credit system. This would avoid the use of commercial banks, which are reluctant to lend for rural equipment due to the lack of adequate loan security and guarantees, and disappointing collection performance cf medium-term credit. It would also contribute to small groups of producers becoming credit-worthy in the judgment of the local banking system. Closely supervised replenishment of Capital Replacement Accounts would also ensure that the original medium-term equipment could be replaced. The DDRM unit would retain ownership of the assets which would be lent to producers while they build up enough savings to be able to purchase the replacement assets if they are needed. 4.17 For each medium-term asset provided, the producer group would open a Capital Replacement Account at the nearest branch of BDRN or post office; the withdrawal from such accounts would be made by the group with the agreement of the district Governor. As a condition for receipt of the asset, the group would pay an amount of 5s of its delivered cost into its Capital Replacement Account; this would be verified by the DDRM unit. The asset would remain the property of the DDRM unit until the group has put sufficient funds into the account for its replacement. By that time the group would own the asset in full property. The development contract between the CSRD and the producer group would specify the amount of the annual payment and the date of payment. Assurances on the above were obtained at negotiations. As an example, for a pump with a three-year life span, the procedure would be as followss an initial payment of 52 of the delivered cost and an annual payment of one half of the estimated replacement cost would be made, except that for the first year the 5s down payment would be deducted. An illustrative farm model shows that producers would be able to meet this schedule of payments. In the case of animals, resale proceeds would normally buy new animals after three to four years of use. Funds accumulated in the accounts would therefore be used for repurchase in case of mortality or for other purchases decided among the group, in agreement with district authorities. 4.18 The DDRM unit would examine at least twice a year the status of each Capital Replacement Account and in the case of delinquency, issue the necessary instructions for all appropriate measures to be taken to ensure that all arrears are paid promptly. Assurances on this were obtained at negotiations.  - 32 - D. The Small Rural Onerations Proiect Cycle 4.19 Identification/preparation. SROs would be identified by beneficiaries, technical services, particularly extension agents or NGOs, in response to local needs for investment and the diffusion of information on eligibility for funds. Identification documents would be prepared by potential beneficiaries with the help of district staff and would be submitted to CRD through CSRD to prepare annual provincial programs (para. 4.21). Preparation would be undertaken by beneficiaries with the help of local technical services at district levels or NGOs. The DDRM unit would facilitate the preparation process by providing detailed guidelines on techniques and costs, holding training sessions, and undertaking frequent field trips to review ongoing preparation. The development councils would enlist technical services as necessary to help beneficiaries prepare SROs. 4.20 Appraisal. Appraisal of the request would be undertaken at two levels, namely by COTEAR and then COTEDEP coordinated by DDP with the participation of the DDRM unit. Appraisal would involve visits to the sites of proposed SROs, discussions with potential beneficiaries, in particular to clarify their financial commitments, and reviewing technical and financial viability as well as ensuring satisfaction of selection criteria. SGAs are ultimately responsible for ensuring that selection criteria are met. For financial analysis, appraisal would make sure that farm budgets indicate that an SRO would generate enough cash flow to cover all the operating costs and to sufficiently remunerate labor. If costs per ha are 30X higher than those presented in para. 6.04, the DDRM unit would reappraise financial viability. 4.21 Apprcval. There would be two levels of approval; approval of overall annual provincial programs and approval of each SRO. Annual provincial programs would be prepared, based on identification documents and submitted to the DDRM and the technical committee by June 30 each year. The technical committee would approve provincial programs as a whole, taking into account the distribution among the provinces and the funds available. Assurances were made during negotiations that the Government would submit to IDA for information the annual provincial programs of SROs not later than August 31 of each year. If the annual provincial programs include SROs which are other than the models identified, DDRH would submit a representative model to the technical committee which invites local representatives of IDA and the Swiss Development Cooperation to determine whether the new model meets the selection criteria. IDA's approval of such a new model would be a condition of disbursement for goods and services for unidentified SROs (category (7)). Once overall provincial programs are approved, the district and provincial technical staff would proceed with further preparation and appraisal of each SRO. Once the final appraisal has shown that the request is justified, it would be sent with modifications, if any, to the CRD for approval. The CRD thus has the power of final approval for each SRO in the province. 4.22 Execution and Monitoring. After an SRO is approved, district technical services would be designated by the district Governor to help the village implement the SRO with possible assistance from provincial services  - 33 - and NGOs. A development contract between the CSRD and the beneficiaries would be signed, specifying the technical and financial conditions of execution (para. 4.10). Coordination, monitoring and control would be the joint responsibility of DDP and the DDRM unit. E. Training 4.23 Given the existence of reasonably successfully run training programs for regional planning and project analysis (FORPROSA) and cooperatives (CLUSA), and of underutilized agricultural and livestock schools and their trainers, the project would mobilize as much as possible locally available human resources through service contracts in order to provide training and recycling. The project would finance short-term services of training specialists to assess training needs and set up training programs. The project coordinator would be responsible for coordinating training activities. F. Project Coordination and Imlementation 4.24 It is important to harmonize principal rules and procedures to be applied to SRO-type operations financed by all donors including the Government, otherwise different rules and procedures would confuse beneficiaries and technical service staff and would make implementation ineffective. The organizational study to be financed by the Swiss bilateral funds would improve coordination by examining and proposing ways to harmonize rules and procedures imposed by various donors. In addition to the study, the Government would convene regular meetings, at least once a year, with local representatives of the donors involved in SRO-type operations, to discuss their investment programs, rules and procedures, evaluation of past activities, etc., with a view to better coordination and programming. Assurances on the above were obtained at negotiations. 4.25 Prior to effectiveness, the PPF advance would finance (a) the execution of the year zero program of SROs already prepared by district staff; (b) the preparation activities of the first year program to be financed right after project start-up; (c) the consultant services to set up an accounting system fir the project; and (d) the consultant services to set up a monitoring and evaluation system at DDRM. Presentation to IDA of the first year program of SROs to be financed after project start-up would be condition of effectiveness. In addition, the Swiss bilateral funds would finance the organizational study. Its terms of reference and the consultant were agreed by IDA and initial work started in December 1987. Upon completion of the organizational study, the Government and IDA would review the recommendations of the study and not later than December 31, 1990, the Government would carry out those recommendations approved by IDA. Assurances on the above were obtained at negotiations. In addition, the Government would conduct a mid-term review not later than December 31, 1990, and present the findings and recommendations of the review, including the suitability of rules and procedures and their effective application, quality of prepar.tion/appraisal/eva.uation of SROs, adequacy of training, and impact of extension services, to IDA for review and comments.  - 34 - V. TECHNOLOGICAL AND PRODUCTION SPECIFICATIONS 5.01 Investment. The technical specifications for the model SROs are given in Working Papers B-1 and B-2 as technical guides. These guides are prepared to facilitate the selection of technical solutions, technical preparation of SRO proposals, and estimation of costs. The design and construction methods are simple so that beneficiaries would be able to operate and maintain them. It is recommended that a pump be used to lift up water while digging so that the well-diggers can dig sufficiently deep (5m below water table), rather than using divers who would dig 2-3m below the water table, which is often not deep enough to provide water during the last period of the dry season. In accordance with Government policy, costly metal fences to protect irrigation perimeters would be discouraged. Beneficiaries would have to keep animals away from irrigation perimeters until the live fences grow. A Od4loul with an ox or pumps would be used as a means of lifting water, rather than manual lifting, which although widely practiced at the moment, is insufficient to meet water requirements. 5.02 Inputs. The production specifications for irrigated crops are based on acquired experience with similar small-scale projects already under implementation in or close to the areas. There would be no innovations in respect to input types, quantity, and production methods unless technical service agencies present new evidence that changes were warranted. The input requirements for each crop are presented in Annex 6-1. These inputs, as well as pesticides, would be financed by the project for the first year due to the lack of formal agricultural credit, but thereafter would be financed by the beneficiaries out of their revenues. Inputs for the first year would be purchased in provinces or districts and transferred to the beneficiaries, and subsequently would be purchased directly by the beneficiaries, either from the "Centrale d'approvisionnement" or from private traders. 5.03 Production Methods. Water would be lifted either by a Id6loul to irrigate a small plot of 0.5 ha each or by a pump to irrigate a plot of 1.5 ha each. In both cases, water would be stored in a storage basin and be then distributed to irrigation basins through underground PVC pipes. From irrigation basins, farmers would transport water in watering pots to irrigate. Although manual distribution of water is labor intensive, water loss is much lt.as as compared with earth canals for gravity distribution and labor for water distribution would be made available by savings from water lifting by delou and pumps. Since these activities would be undertaken during dry seasons, the adequacy of labor would not be a problem. Labor requirements for crop cultivation and irrigation are presented in Annex 6-1. 5.04 Yields and Output Yield forecasts are based on acquired experience with similar small-scale operations. Incremental output under the project would come from an extension of the cultivated irrigated area and an increase in yields. Production of firewood would also increase as a result of project actions. Yields, areas and production are presented in Annex 6-1 and anticipated incremental outputs of the major crops at PYS are shown below.  - 35 - ExRected Production of Maior Crops Bottomland Model (15 ha) Pump Irrigation Model (18 ha) crops incremental production incremental production per perimeter (tons) per perimeter (tons) onions 36 57 cassava 60 -6 sweet potatoes 29 -22 vegetables 27 78 fodder 24 17 sugar cane 15 sorghum 13 23 potatoes -- 41 5.05 Improvement in Rainfed Farminz. Although SROs may not make a direct investment in rainfed farming, SRO investments in irrigated areas would improve productivity in rainfed areas. With an increased production from irrigated areas, farmers could afford to leave a part of their rainfed areas as fallow, and longer fallow periods would contribute to better productivity. Moreover, increased fodder production from fodder crops and by-products of cereals and cowpeas would facilitate an integration of livestock and agriculture. Finally, extension agents who would be trained and become more effective would give advice not only on irrigated crops but also on rainfed farming as an integral part of farming. VI. FINANCIAL RESULTS A. Demand. Marketing and Prices 6.01 Demand. For the model operations, outputs would be either additional supplies to the domestic market (vegetables, cereals) or exports mainly to Nigeria (onions, cowpeas). Output volumes would be small both in aggregate and per perimeter or group of producers. Most of the perishable vegetables are likely to be consumed by the producers themselves, or be sold in small towns close to the project sites that are presently poorly supplied. However, too much concentration on the perishable vegetables would quickly saturate small local markets and a balance between high value but perishable crops and low value cereals which can be stored has to be sought. Although farmers are free to choose which crops to grow, agricultural services would give advice on crop composition based on marketing and price information, as well as upon technical considerations. 6.02 Marketing. Producers would continue to sell directly to private buyers as at present, and therefore the project would not attempt to provide any direct marketing support. Onions and peppers would usually find ready export markets in Nigeria and the Ivory Coast. Tomatoes would be sold in nearby local markets or are often dried on the farm for sale to the Agadez and desert areas. Cassava, sweet potatoes and sugar canes would be sold in nearby local markets.  - 36 - 6.03 Foodcrop markets in Niger are free from effective regulations and prices are competitively determined. All crops originating in the project area are traded within the country, and the quantities that are exported are freely traded. Therefore, in subsequent economic analysis of the project, observed market prices are assumed to be economic prices for regionally and locally traded crops. For rice, sorghum and maize, which are internationally traded, import parity prices are used as economic as well as financial prices. The assumed prices of the irrigated commodities at farm-gate, taking into account transport costs and losses, are set out belows Estimated Farm-Gate Prices of Haior Crops (CFAF/kg) Commodity Financial and Economic Prices (1987) onions 62 cassava 52 sweet potatoes 63 vegetables 50 fodder 10 sugar cane 25 sorghum 52 potatoes 64 maize 51 paddy 70 B. Financial Imolications for Beneficiaries 6.04 Two farm models representing the characteristics of the model SROs have been constructed to illustrate the anticipated impact of the project on individual participants. The modals are detailed in Annex 6-1 and summarized in the table below, with other financial features of the project.  37 - Financial Features bottomland puMp development irrigation specific operations no. 45 15 families per operation no. 60 72 cost per operation CFAF 23 million 18 million US$ 78,000 61,000 cost per ha CFAF 1.5 million 1 million US$ 5,080 3,390 cost per family CFAP 375,000 250,000 US$ 1,270 850 net revenue per producer per year without project CFAF 000/year 67 123 with project ClAF 000/year 211 163 net revenue per man-day without project CFAF 250 268 with project CFAF 568 473 C. Financial Imnlications for Government 6.05 Thereo would be no directly generated revenue to the Government since none of the project outputs are comodities on which taxes are levied with the exception of onions (CFAF 1,100/bag). Beneficiary incomes would, however, increase by about 1001, thereby raising incomes and expenditures on consumer goods subject to indirect taxation. Incremental Government revenue can therefore be expected to be significant. This effect cannot be quautified with much accuracy and therefore is not included in the Government cash flow in Annex 6-2. VII. BENEFITS AND ECONONIC ANALYSIS A. Proiect Benefits 7.01 The most important benefit of the project would be the development of an institutional capability in Niger for making sound investment. decisions for small rural operations and for managing investment funds. By providing intensive training for local staff and streamlining the organizational structure of the project cycle, a local capacity of project preparation and execution of SROs would improve. By focussing on the principle that beneficiaries manifest, both In cash and in kind, their interest in participation and by instituting Capital Replacement Accounts  - 38 - for renewal of medium-term assets, the sustainability of operations would be enhanced. By clarifying the selection criteria and terms and conditions of financing, utilization of funds would be rationalized and the total flow of external assistance for this type of operation would increase. 7.02 The subprojects, the models of which have been identified in the course of preparation and appraisal, would also have substantial benefits. The project would benefit in total about 7,000 families, or 50,000 people. It does not follow that project beneficiaries would be among the poorest of the poor, since those who choose to take advantage of the investment opportunities are likel1 to be among the more enterprising and innovative beneficiaries. The recipients of project funds are likely to be either groups of similarly enterprising individuals or people organized and motivated by a few, or even only one, entrepreneurial type. In the latter case, the leader(s) would plausibly take a disproportionate share of revenues accruing and/or pay an unduly low share of the group's obligations. Such rewards may nonetheless be a necessary incentive for the emergence of local leadership. B. Economic Analysis 7.03 No attempt has been made to measure the main project benefits stated in para 7.01. Economic rates of return have been calculated for two prototype models. Direct investment costs based on standard specifications have been compared with incremental output from a typical site. Basic assumptions are: (a) 10-20 year economic life depending on the type of development and no residual values; and (b) villagers' voluntary labor for construction, cultivation and irrigation maintenance priced at CFAP 300/day, the estimated opportunity cost of labor during dry seasons. On these bases, the economic rates of return for individual types of subprojects are summarized as follows and are detailed in Annex 7-1 and Working Paper B-5. Summary Results of Economic Rate of Return Calculations rate of return base case bottomland development 222 pump irrigation 302 C. Risks 7.04 The technical risks associated with the proposed investments are minimal because they involve well-known and simple techniques. The project, however, faces a few other risks. First, low motivation and poor qualification of local staff may slow the pace of development. The risk is expected to be minimized by substantial training, which has already started, combined with increasingly effective authority of the Governors. Second, assets created under the project may not be adequately maintained because beneficiaries lose interest. Several measures are envisaged which  - 39 - would reduce this risk under the proposed project. Intensive discussion between beneficiaries and field technical staff during identification and preparation phases and a development contract between beneficiaries and local authorities laying down all the responsibilities and obligations would ensure their commitment. In addition, works would be designed in such a way that maintenance would not require skills, materials and tools not readily available at the village level. Finally, coordination with other donors and NGOs may prove difficult. This risk would be reduced by regular coordination meetings to be held by the Government and by the organizational study to recommend how the harmonization of the rules and procedures imposed by various donors would be achieved. VIII. AGREEMENTS REACHED AND RECOMMENDATIONS Sd1 During negotiations, assurances on the following major points were obtained: (a) for selection of small rural operations to be financed, the criteria would be that the project be: (i) directly productive farming activities in conformity with national and provincial development strategy; (ii) financially self-supportive; (iii) within the project area; (iv) requested by and manifestly in the interest of a group or groups of producers; sv) easily maintained by beneficiaries; and (vi) environmentally sound. Beneficiaries would have to make a downpayment of 5X on a Capital Replacement Account if there are medium term assets, and except for self-standing soil erosion control works and village nurseries, would be required to reimburse costs of materials financed by the project for wells construction (paras. 2.04 and 2.05); tb) consultants with qualifications and experience acceptable to IDA would be recruited following IDA guidelines. (para. 3.08); (c) the project would establish and maintain separate project-related accounts in accordance with sound and accepted accounting principles and practices (para. 4.13); (d) three financial controllers in the provinces and bookkeepers in each district would be recruited not later than October 1, 1988 (para. 4.13); (e) the project-related accounts would be audited annually during project implementation by independent auditors acceptable to IDA and financed by the Project. Audited financial statements and reports of such scope and in such detail as IDA may reasonably request, would be submitted to IDA within six months of the end of each fiscal year. The auditor's report would include a statement on the adequacy of the accounting system and internal  - 40 - controls on whether or not TDA funds have been used for their intended purposes. The report will also confirm that SOEs submitted as justification for disbursement under categories (1) through (6) of para. 3.10 correctly reflect detailed records kept by the Project (para. 4.14). (f) the Government would submit to IDA annual progress reports including budgeted and actual expenditures, the progress achieved itn the preparation and execution of SROs, and the status of each Capital Replacement Account (para. 4.15); (g) as a condition for the provision of medium term assets, including animals, to any group of producers, the group would open and pay into its Capital Replacement Account an amount of at least St of the delivered cost of such assets, and such payments would be verified by the DDRM unit (para. 4.17); (h) the DDRM unit would examine at least twice a year the status of each Capital Replacement Account and in the case of delinquency, is4ue the necessary instructions for all appropriate measures to be taken to ensure that all arrears are paid promptly (para. 4.18); ii) the Government would submit to IDA for information annual provincial programs of SROs not later than August 31 of each year (para. 4.21); (j) the Government would convene regular meetings at least once a year, with local representatives of the donors involved in SRO-type operations, to discuss their investment programs, rules and procedures, evaluation of past activities, etc., in order to improve coordination and programming (para. 4.24); and (k) upon completion of the organizational study, the Government would review with IDA the recommendation of the study and not later than December 31, 1990, the Government would carry out those recommendations approved by IDA (para. 4.25). 8.02 Conditions of effectiveness would be that: (a) the project accounting system and procedures satisfactory to IDA be established and that the Financial Director be recruited (para. 4.13); and (b) the Government has presented to IDA the first year program of SROs to be financed after project start-up (para. 4.25). 8.03 Conditions of disbursement would be that: (a) for civil works and supplies, and agricultural inputs, the Government presents drafts of the framework agreement and the development contract satisfactory to IDA (para. 4.10); and  - 41 - (b) for goods and services for unidentified SRoe, if annual provincial programs include SROs which are other than the models already identified, DDRM submits a representative model to the technical committee which invites local representatives of IDA and the Swiss Development Cooperation to assess the new model and ensure that it meets the selection criteria (para. 4.21). 8.04 With the indicated assurances and conditions, the project would be suitable for an IDA credit equivalent to SDR 7.1 million (US$9.3 million) to the Republic of Niger.  -42 - ANNEX 2 - 1 Page 1 of 2 NIGER SMALL RURAL OPERATIONS PROJECT DRAFT TERMS OF REFERENCE FOR TECHNICAL ASSISTANCE A. Financial Director 1. Under the direction of the Project Coordinator, the expert would have primary responsibilities for: (a) establishing and maintaining separate project-related accounts by consolidating the central and districts accounts; (b) processing of tender documents and supervision of all procurement procedures for expenditures not related to direct investments of SROs; (c) ensuring that proper accounts are kept of each district program of SROs by bookkeepers and that adequate justification for expenditures is submitted regularly from the districts through the provinces to the project management unit; (d) regularly supervising the financial controllers at the provinces who would in turn carry out ex-post checking of expenditures made at district levels; (e) preparing withdrawal applications and Statements of Expenditure and maintaining disbursement records; (f) monitoring secondary accounts at the districts and replenishing them as necessary from the Central Special Account; and (g) training a local accountant in the project management unit, financial controllers and bookkeepers. 2. The qualifications and experience of the Financial Director would be: (a) a post-graduate degree (or its equivalent) or membership in a recognized professional lobby evidencing formal knowledge of modern accounting theory and practice in accordance with generally accepted international standards; (b) at least ten years' professional experience, preferably in a country using the OCAM or French accounting plans in Africa; (c) experience with data processing on computers; and (d) fluency in French.  43 ANNEX 2-1 Page 2 of 2 B. Development Volunteers (each in the Niamey, Dosso and Tahoua Provinces) 1. Under the direction of the Provincial Directors of Planning, three development volunteers would have responsibilities for: (a) assisting the Provincial Directors of Planning in coordinating the preparation/appraisal/execution of the Provincial SRO programs; (b) providing technical assistance to district staff in preparation work through frequent field visits; (c) participating in appraisal of SROs; and (d) identifying needs for complementary studies. 2. The qualifications and experience of the development volunteers would be: (a) a university degree in agronomics, regional economic planning or rural engineering as basic training; (b) complementary training in cooperative management, ecology and pedagogy; (c) five years' experience in rural development or planning; and (d) fluency in French.  1116ER OE1I O PEITITES OPER*IIOhS K KVELOPPIEUET E L_ Project CaqIpfiots by Year totals Includlng Coitiapmpes totals Including Coati -gueies Uif ' 000l (US$ ' 001 1961/1989 1989/t990 190/1991 1991/92 1992/19J3 Total 1981/1989 1989/1990 t990/199t 1991/1902 1992/1993 Total *nsssionoxmt. 9s.:2sasu n::s.sXs 392:s::: ::::5: . nszsu ass:sss S::::sz.n san::::: cnn::: .s a::::::::: a:sx:s:: razz::z A. PTIIES OPEIRATIONS DE DVELOPPENFXT ItUAL 306.488 3t9.51 424.7t4 626.8S1 653.265 2.333.0t8 1.041 1.084 1.440 2.125 2.214 7.909 G. M7ITE Kt uStIO 140.318 08 ON8 Itt.U42 138.654 121.374 819.946 476 368 376 470 411 2.102 C. APlUI AUX SEVICES TECNUIWES 2M5.095 1t0,147 29t 752 282.28 295. 65 1,285.478 865 S43 989 959 1.002 4.358 D. PSUATION 101.232 85.14S 79.939 63.412 61.640 3S1,370 343 289 271 215 209 1.32t E. ETUDES 480.437 27,399 28. 608 29.996 31.572 5t8.012 1.56t 93 97 102 10t 1.959 Total PlUlECT COSTS 1.265.570 700.401 936,605 1.141.771 1.163.508 5.207.855 4.290 2.374 3.175 3.870 3.944 17.654 _Ut-st _::s ___._. as.n_ _. .... Soso _ .s_s.g.. .. ... __ss .a.. ...... X__. . 2ah ...____s. ..s.._ _ _ . _ _ _ . . I b~st IS. 198? 21:20 I  NIGEh P80.8T DE PEIITES OPER6ATIONS Of DVEtOPPENENT RUAL Sw ory Accoue ts bY Ywr Totals Including Continrqg c." lotatl ll*tuding Contipmlie.s IFCrF 'oOtl UISS lo") ....... ... .. ... ........ .......... .. . .. .,,.,,.......................... ------------------------------------------ 1981/1988 1989/1990 1990/1991 1991/1M 19992/1993 TotWl 191/1989 1989/1990 1990/1991 t1991 9M 19921t993 lotal sS*a.*s*tS zs.a *tus#%assta:.. ssszs ssssssssss sssssssas S tssssS. gstts2 xsttttst ss ts2sags alt2s:sss a.nsssnt .:ss.s. 1. INmSTHENT COSTS A. GENtE CIVIt 202.257 210.424 289.609 306.338 297.532 1.306 .s0 688 713 982 1.038 I.009 4.430 a. vtiNCUIES 107.377 - 70.298 79.010 15.636 313.252 364 - 238 271 IS9 1.091 C. EqutouEtiul N7OT1'SI 7.045 7. 155 7.289 7.46? 7.752 36.688 24 24 25 25 26 124 EOttlPEtNtE BUREAU 24.985 - 7.133 - 32.118 85 - 24 - - 109 ........ ....... .. ...... ... .. ........ .... ...... .... ... ....... ......... .. ... . .. .. .. ..... ...... ... .... Sib-lotal EQUIPElENT 32.029 7. III 14.402 7.467 7. 752 68I so 109 24 49 25 26 233 D. INUTS 6AgICOLfS 53. 191 55. 110 75. 1" 84.302 81.278 353. 049 80 16? 268 286 276 1. I97 E. IMV&SISSNENITS NON I-DENTMIES 45.296 48.962 48.716 228.773 266.703 636,452 14 ts9 t6s 77S S04 2.157 F. ASSISTANCE TECUNIUIt ......... ....... ... ASSISTANCE TECMIUIf a LONG team 63.638 64.987 68.393 8. 490 71. 312 334.819 216 220 225 232 242 1. 13 CONSULITNTS 47.285 28.9 73 29.569 10.178 S. 29 121.334 1SO 98 oo 35 t8 41t . ... ........ .. .... ................. ............. .......... ............. ..... ...... .... ..... . ......... .. ........ ... ... ... ... ......... ............ ....... S4-rotal ASSISTAICE TEOUI4UE 1 0.923 93.960 95.992 78.668 76.610 456. 153 376 319 325 267 260 1.546 GC E1U1 S5 460.437 27. 9 28. 08 29.998 31.572 57S.012 1.561 93 97 102 l07 1. 95. v. ntSItlER s.s8t - - - sSst t9 * - * - s ............... .... ..... .... . ...... ......... .. . ... ... ... ... .. .......... ......... ... ... . .. . ... ... ... .. ... ..... ......... ........... ... Total Im ESthENT COSTS 1.017.790 44t.009 626.795 A8S.486 817.083 3.716.184 3.450 1.495 2.12S 2.764 2.770 12.604 .s4*3=s:t .. .... a ...s.........lsSZlttS ........&f . ..zA-SS ...3S SS....... *Az-...st ~a. . i.... ..*..4.....~ *. It. RECtMN 1 COSIS cs ............ A. PtNSONSit LOCAI . ....... ...... PERSONNI lOCAL IONCTIONAIRE It, 124 18. tSt 29.059 30.802 34. 6 129. 792 58 62 99 104 1I? 440 PERSONNEL tOCAt CONTRACtUEt 43.339 45929 52.712 51,875 59.228 257.094 147 156 179 to6 201 872 S,tilolaI PERSONNEl IOCAt 60.463 64.091 81. 7 . 677 93.884 31 6.886 20s 217 277 4 318 1.311 s. FAtlS N FONCTIONNENENt VENICULES 61.483 85,459 t19.764 126.019 132.945 545.670 276 290 406 427 451 . 850 C. IRMAS Of IINCTIOUINFmtN FOMItION 53. 947 56. 174 50.340 b3.234 56.342 270.036 1i63 9o 171 180 l9o jtS 0. LIRES FrS DE FNClOUiINENI 22.333 23.488 27.103 28.146 30.138 131.610 76 so 92 97 102 446 E. AUDIT 29.553 30.1t0 30. A32 31.S07 33. tl7 1ss. 48 too 102 lOs W08 1:2 527 .. ..,___. .__. ... ...... _._,,_... - --.-, ....... .......... ............. ..... ....._ ........... ....... _... .... ..... _. .. _._._._........_ . .... .... . . . total RicIJU1Nt t COStS 247. 779 259. 392 309.8tO 326.26b 346.425 1.489. 691 840 879 1. o0o . 106 1. 174 5.0bo .-.:s ...:S..# C.2St ::S:.s:. ::::::::.. ..;..s:-s t. .s.Z .* .. s.s*hs: ssst:.s:. ::s..s.. ::: -ss:z:t Z-::;:-.: *sf:s;: total PIOtcI COSIS 1.26b.570 700.401 936.605 1.141.771 t.163.508 5.207.855 4.290 2.374 3. t7b 3.870 3.944 11. 654 *.. sa:m ssn*s st : g, as;.t: s ;sn.s3 .s8:*s s: t3t* t tt.:: 3;ns: sstss tZ,t. t _veet 19. 1987 21 20 x t4  - 46 - Annex-3-3 NIGER SMALL RURAL OPERATIONS PROJECT Estimated Schedule of Disbursements Fiscal yearlsemester Disbursements cumulative All Regions (ending on dates shown) Semester cumulative disbursement agricultural credit profile (2) (US$106) (2) FY 1988 June 30, 1988 1/ 0 0 0 1 FY 1989 December 31, 1988 2/ 2.2 31 2.2 24 4 June 30, 1989 0.3 2.5 27 10 FY 1990 December 31, 1989 0.4 2.9 31 19 June 30, 1990 0.5 3.4 37 29 FY 1991 December 31, 1990 0.5 3.9 42 40 June 30, 1991 0.7 4.6 49 51 FY 1992 December 31, 1991 0.8 5.4 58 61 June 30, 1992 0.8 6.2 67 70 FY 1993 December 31, 1992 0.8 7.0 75 78 June 30, 1993 0.7 7.7 83 85 FY 1994 December 31, 1993 0.7 8.4 90 91 June 30, 1994 0.4 8.8 95 95 FY 1995 December 31, 1994 0.3 9.1 98 99 June 30, 1995 0.2 9.3 100 100 1/ Expected date of Board Presentations February 1988 21 Expected date of Credit Effectivenesss July 1988 3/ Includes refinancing of PPF (US$1.5 million) and initial deposit into Special Account (US$0.7 million)  Annex 4-1 47 Page 1 of 3 Ir -~~~~~ L------<--111 Eli @ L______Et