Cameroon - National Agricultural Extension and Training Project

v, lDocument of The World Bank FOR OmCL USE ONLY Repqt No. P-5135-CM MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$21.0 MILLION TO THE REPUBLIC OF CAMEROON FOR A NATIONAL AGRICULTURAL EXTENSION AND TRAINING PROJECT FEBRUARY 12, 1990 ; Thi document has a restricted distribution and may be used by recipiens only in the performane of their officaia dute& Its contents may not otherwise be disosed without World Dank authorization.  CURRENCY EQUIVALENTS Currency Unit - CFA (CFAF) US$1 - CFAF 332 a/ WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS DIRAGRI - Directorate of Agriculture EEC - European Economic Community PAOICP - Food and Agriculture Organization of the United Nations/Cooperative Program IFAD - International Fund for Agricultural Development IRA - Agricultural Research Institute MESIRES - Ministry of Higher Education, Computer Science and Research MIDENO - Mission for Development in the Northwest MINAGRI - Ministry of Agriculture MINEPIA - Ministry of Livestock, Fishery and Animal Industries SAP - Structural Adjustment Program T&V - Training & Visit USAID - United States Agency for International Development FISCAL YEAR July 1 - June 30 a/ Exchange rate at end June, 1989. The exchange rate of the CPA Franc is fixed at 50:1 with the French Franc, which is a floating currency.  FOl OmCIL USE ONLY REPUBLIC O? CAMEROON NATIONAL AGRICULTURAL EXTENSION AND TRAINING PROJECT LOAN AND PROJECT SUMMARY Borrower: Republic of Cameroon Beneficiaries: Ministry of Agriculture (MINAGRI) Ministry of Higher Education, Computer Science and Research (MESIRES) Amount: US$21.0 million equivalent Terms: Standard IBRD terms, with a five-year grace period and 20 years maturity Financina Plan: IBRD US$21.00 million Government USS 7.09 million Other Donors USS 2.96 million Total USS31.05 million Economlc Rate of Returns 20-401 Staff Arnraisal Renort: 8040-CH Map: IBRD No. 21849 National Extension and Training Project (NETP) This document has a estuicted distribution and may be used by recipients only in the porfmuaCe of their oficial dutie its contents may notherwise be disclosed without World Ban' iuthomn.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF CAMEROON FOR A NATIONAL AGRICULTURAL EXTENSION AND TRAINING PROJECT 1. The following memorandum and recommendation for a proposed loan to the Republic of Cameroon for US$21.0 million equivalent is submitted for approval. The proposed loan would be on standard IBRD terms with 20 years maturity, including a 5-year grace period, at the standard variable interest rate, and would help finance a national agricultural extension and training project. The project would be cofinanced by bilateral donors still to be determined. 2. Backaround. Agricultural potential in Cameroon is central to the renewal of economic growth. In recent years the economy has suffered a decline in world market prices of its principal commodities. The relative contribution of agriculture, including livestock and forestry, to Cameroon's GDP decreased from 40t in the 1960s to about 20? in 1984/85 with the development of oil production. Nonetheless, agriculture provides employment to 752 of the population, generates 25? of export receipts, and contributes about 152 to 202 of state revenues. With the recent slump in world oil prices and depletion of domestic oil reserves anticipated in the 19909, agriculture will again be propelled to the forefront of the economy. The rich ecological diversity of Cameroon provides an important potential for increasing both food and export crop production. Production increases are the key to renewed agricultural growth. The Government's Structural Adjustment Program is addressing a number of issues which have heretofore constrained agricultural growth, emphasizing both price and non-price incentives. 3. Agricultural extension programs have been ongoing in Cameroon since the 1960., financed by numerous donors, many as components of rural and/or area development projects. Problems and shortcomings in agricultural extension and training were recognized by the Government in the 19709 in a diagnosis carried out as a preparatory exercise for the Fifth Agriculture Development Plan (1981-1986). The problems include the high aggregate cost of the different extension systems, leading to fragmentation of services which results in duplication of extension efforts and confusion to farmers, lack of consistent training and supervision, and technological messages transferred to farmers which are often irrelevant or inappropriate. Recommendations for corrective actions included in this Plan were not implemented because of insufficient preparation and difficulty in translating intentions into actions. Consequently, the concept of a national agricultural extension and training strategy was introduced. At Government request, USAID and the Bank jointly sponsored an FAO/CP mission for a National Agricultural Extension and Training Project for which an Interim Report was issued on August 7, 1987. The Bank was requested by the Government to prepare a national agricultural extension project based on the findings of the FAOICP report. However, due to the lack of extension policy and the uncertainties surrounding the institutional features of extension, the Ministry of Agriculture proposed  .2 - that pilot scheme test some of the recomendations of the PAO/CP Identification Report prior to launching a national project. 4. The pilot phase* which introduced the Training and Visit (T&V) system of extension, has been under implementation in four ecologically distinct areas of the country since 1988. In addition, existing extension services in Cameroon have been revIewed to determine their relevance to a national program. Since 1982, the Northwest MIDENO rural development agency financed by IFAD, the federal Republic of Germany and the EEC has operated a successful extension service following a modified T&V system as a component of its area development project. Under MIDENO, one authority coordinates all extension In the Province, virtually eliminating duplication of effort. However, the absence of a systematic national coordination program explains the lack Qf adoption of the MIDENO extension model elsewhere In the country. Under the pilot program, MIDENO's experience has begun to spread through the extensive field extension training provided in the Northwest for extension staff from other areas of the country. The pilot phase succeeded in testing a number of new initiatives and resolving implementation issuess (a) creating action- oriented provincial and technical committees to coordinate extension with other development activitiess (b) organizing provincial orientation and training seminars for extension staff and their supervisors; (c) training extension staff fortnightlys (d) deploying staff effectively; (e) establishing field adoption plotst and (f) creating a mechanism for flow of funds to the Provinces. S. Proie_t Obiective. The project would aim to assist the Government in implementing a national agricultural extension strategy. The short to medium-term objective would be the introduction of a unified extension system in certain areas of the country, which would include the rationalization of existing overlapping provincial extension services and the establishment of a national T&V system. The priority objective is to increase farmer productivlty by establishing operational systems for managing the extension services and by providing training tc facilitate improved delivery of the services. Special attention would be given to meeting the needs of women farmers under the project. By integrating extension services to Incorporate food crops as well as cash crops, women farmers would be more likely to receive extension advice. The project's aims would be achieved through* (a) enhancing the Implementing agencies' capacity to plan, manage, monitor and evaluate a national agricultural extension and training programs (b) ensuring adequate transfer and diffusion of production techniques through the expansion of a time-bound management and training system for front-line extension agents; (c) supporting the above actions through a major training program to develop local capacity for designing, managing and implementing extension operations; (d) improving the relevance of production techniques through Increased verification trials and improved research-extension linkagest and te) increasing the availability of Improved seed. 6. Proiect Description. An institutional management support program at the natlonal and provincial levels would strengthen the capacity to plan, manage, monitor and evaluate a national agricultural extension and training program. A central mechanism would be established to standardize the T&v extension methodology and training provided to all extension  -3 services staff to ensure the transfer and diffusion of production techniques. An improved adaptive on-farm research network, complementing the ongoing National Agricultural Research Project (Ln. 2766 CM), would be carried out by Testing and Liaison Units which, working closely with the extension service, would field test the adaptability and acceptability of varieties and technologies to provide more realistic recommendations to farmers, thus establishing permanent links between research and extension. The successful introduction of certain crops (e.g., new export crops, fruits and vegetables) and other new technologies will demand more * sophisticated extension messages and a knowledge of market availability, which will be addressed by the research establishment. The extension program would address: (a) smallholders who represent 902 of all farmers, * and within the smallholder group the special needs of women farmers, by selecting women and women's groups as contact farmers (about 302 of contact farmers will be women); and (b) larger farmers, the traditional recipients of extension advice, who produce export crops. Seed multiplication activities would be supported and a publications program would assist in disseminating extension advice. The proposed project would finance civil works, transport, equipment, technical assistance, incremental staff and incremental operating costs. 7. Rationale for IBRD Involvement. Cameroon's economic growth will continue to depend heavily on agriculture. The proposed project is central to the Bank's sector strategy and is one cornerstone of the agriculture component of Cameroon's Structural Adjustment Program, supported by a Bank loan (Ln.3089-CH.) approved by the Board in june 1989. Investment in a reorganized, streamlined extension service is essential to long-term agricultural and economic growth, since it will be the major vehicle for transmitting improved agricultural knowledge to farmers. The project is integral to the Government's strategy of food security, enhanced export earnings, and employment generation. A number of donors continue to follow a crop, or area development approach. The Bank would play a catalytic role in transforming progressively the existing system into a streamlined, minimum cost approach. The project would complement the National Agricultural Research Project (Ln.2567-GM) by strengthening researchlextension linkages. It would also complement the recently approved Livestock Sector Development Project (Ln.3110-CM) through integration of livestock and crop extension in areas of the country where dual farming systems exist. 8. Actions Agreed. Agreement has been reached with the Government as follows: (a) maintenance of a National Coordinator within the Extension Service, and maintenance of support staff to coordinate national extension activities; (b) agreement between MINAGRI and MINEPIA on a program for training extension staff to provide advice on both crop and livestock production; Ic) agreement between MINAGRI and IRA on annual work plans for research, seed production and seed certification activities; td) agreements between MINAGRI and cooperating parastatals on agricultural extension and training; Ce) preparation of agreed annual work plans and budgets; and (f) establishment of, and operating procedures for special accounts. 9. Benefits and Risks. The project would help increase agricultural productivity, thereby contributing to food security and increased exports. In the near term, improved cultivation techniques would  result in increased yields. Smallholders and women represent about 90t of farmers in Cameroon. Women are the chief producers of food crops for home consumption and the market. The project would improve women's access to extension services and raise their agricultural productivity. The principal project beneficiaries would be about 700,000 (602) of small farm households. Benefits accruing to families would vary depending on the crop and region of the country, but results of the pilot project indicato that farmers frequently obtain yield increases in excess of 50*, not only in well developed farming areas, but also in areas characterized by low level, yields and basic farming knowledge. The use of small adoption plots by farmers minimises the financial risk at the farm level. Public expenditures for agricultural services would be reduced as duplication would be eliminated. In the medium-term, savings are estimated to be about US$5.5 million annually, well in excess of the proposed project recurrent cost estimate of US$3.3 million per annum. The project is consistent with the parastatal reform program being implemented under the Structural Adjustment Program. The main risk foreseen is the possibility of farmers' low adoption rate of extension advice, due to lack of timely availability of inputs, credit or adequate marketing channels. With USAID assistance, in 1987, the Government introduced privatization of fertilizer distribution as a first step to alleviating input constraints. The Government is proposing to establish a new agricultural credit institution with assistance from the Federal Republic of Germany. A proposed rural cooperative credit program is included in the Bank's development strategy, aimed at sobilizing rurai savings as a source of credit for. smallholders. Under the Structural Adjustment Project, a rational pricing policy is being introduced. A Food Security Program (FY91) is also proposed in the Bank's lending program for Cameroon which will address marketing issues. 10. Recommendation. I am satisfied that the proposed loan would comply with the Articles of Agreement of the International Bank for Reconstruction and Development and recommend that the Executive Directors approve the proposed loan. Barber B. Conable President Attachments Washington, D.C. February 12, 1990  services staff to ensure the transfer and diffusion of production techniques. An improved adaptive on-farm research network, complementing the ongoing National Agricultural Research Project (Ln. 2766 CM), would be carried out by Testing and Liaison Units which, working closely with the extension service, would field test the adaptability and acceptability of varieties and technologies to provide more realistic recommendations to farmers, thus establishing permanent links between research and extension. The successful introduction of certain crops (e.g., new export crops, fruits and vegetables) and other new technologies will demand more * sophisticated extension messages and a knowledge of market availability, which will be addressed by the research establishment. The extension program would address: (a) smallholders who represent 902 of all farmers, * and within the smallholder group the special needs of women farmers, by selecting women and women's groups as contact farmers (about 302 of contact farmers will be women); and (b) larger farmers, the traditional recipients of extension advice, who produce export crops. Seed multiplication activities would be supported and a publications program would assist in disseminating extension advice. The proposed project would finance civil works, transport, equipment, technical assistance, incremental staff and incremental operating costs. 7. Rationale for IBRD Involvement. Cameroon's economic growth will continue to depend heavily on agriculture. The proposed project is central to the Bank's sector strategy and is one cornerstone of the agriculture component of Cameroon's Structural Adjustment Program, supported by a Bank loan (Lu.3089-CM) approved by the Board in June 1989. Investment In a reorganized, streamlined extension service is essential to long-term agricultural and economic growth, since it will be the major vehicle for transmitting improved agricultural knowledge to farmers. The project is integral to the Government's strategy of food security, enhanced export earnings, and employment generation. A number of donors continue to follow a crop, or area development approach. The Bank would play a catalytic role in transforming progressively the existing system into a streamlined, minimum cost approach. The project would complement the National Agricultural Research Project (Ln.2567-CH) by strengtheuing researchlextension linkages. It would also complement the recently approved Livestock Sector Development Project (Ln.3110-CM) through integration of livestock and crop extension in areas of the country where dual farming systems exist. 8. Actions Agreed. Agreement has been reached with the Government as follows: (a) maintenance of a National Coordinator within the Extension Service, and maintenance of support staff to coordinate national extension activitiest (b) agreement between MINAGRI and MINEPIA on a program for training extension staff to provide advice on both crop and livestock production; (c) agreement between MINAGRI and IRA on annual work plans for research, seed production and seed certification activities; (d) agreements between MINAGRI and cooperating parastatals on agricultural extension and training; (e) preparation of agreed annual work plans and budgets; and (f) establishment of, and operating procedures for special accounts. 9. Benefits and Risks. The project would help increase agricultural productivity, thereby contributing to food security and increased exports. In the near term, improved cultivation techniques would  - 4 - result in increased yields. Smallholders and women represent about 900 of farmers in Cameroon. Women are the chief producers of food crops for home consumption and the market. The project would improve women's access to extension services and raise their agricultural productivity. The principal project beneficiaries would be about 700,000 (60Z) of small farm households. Benefits accruing to families would vary depending on the crop and region of the country, but results of the pilot project indicate that farmers frequently obtain yield increases in excess of S02, not only in well developed farming areas, but also in areas characterized by low level. yields and basic farming knowledge. The use of small adoption plots by farmers minimizes the financial risk at the farm level. Public expenditures for agricultural services would be reduced as duplication would be eliminated. In the medium-term, savings are estimated to be about US$5.5 million annually, well in excess of the proposed project recurrent cost estimate of US$3.3 million per annum. The project is consistent with the parastatal reform program being implemented under the Structural Adjustment Program. The main risk foreseen is the possibility of farmers' low adoption rate of extension advice, due to Lack of timely availability of inputs, credit or adequate marketing channels. With USAID assistance, in 1987, the Government introduced privatization of fertilizer distribution as a first step to alleviating input constraints. The Government is proposing to establish a new agricultural credlt institution with assistance from the Federal Republic of Germany. A proposed rural cooperative credit program is included in the Bank's development strategy, aimed at mobilizing rural savings as a source of credit for smallholders. Under the Structural Adjustment Project, a rational pricing policy is being introduced. A Food Security Program (FY91) is also proposed in the Bank's lending program for Cameroon which will address marketing issues. 10. Recogmendation. I am satisfied that the proposed loan would comply with the Articles of Agreement of the International Bank for Reconstruction and Development and recomend that the Executive Directors approve the proposed loan. Barber 3. Conable President Attachments Washington, D.C. February 12, 1990  -5- Schedule A REPUBLIC OF CAMEROON NATIONAL AGRICULTURAL EXTENSION AND TRAINING PROJECT ESTIMATED COST AND FINANCING PLAN Estimated Proiect Costs a/ Locai Forelin Total --------