Cameroon - Food Security Project

Document of The World Bank FOR OFFICIAL USE ONLY Repor No. 9048-CM STAFF APPRAISAL REPORT REPUBLIC OF CAMEROON FOOD SECURITY PROJECT MAY 1, 1991 Agriculture Operations Occidental and Centrel African Department This doceument has a restricted distribution md may be used by recipients only in the performance of their oSldI duties. Its contests my not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit = CFAF Franc (CFAF) USSI = CFAF 260 a/ WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS APCU - Aerial Pout Control Unit CAA - Calsse Autonoms d'Amortissoment CARE - Cooperative for American Relief Everywhere, Inc. CCCE - Caisse Centrals do CoopAration Economiqu* (Franc.) CDC - Commonwealth Development Corporation CIDA - Canadian International Development Agency CFC - Cr4dit Foncer du Cameroun DEAPA - Direction des Enqu&tes Agro-iconomiques et d- Is Planification Agricole DPA - Direction des Projets Agricl[o EEC/EDF - European Economic Community/European Development Fund FAO - Food and Agriculture Organization of the U.N. FIMAC - Financement d'Investissoments pour des Micro-R6alisations Agricoles et Communautaires IFAD - International Fund for Agricultural Development IMF International Monetary Fund MESIRES - Ministry of Higher Education and Scientific Research MINAGRI - Ministry of Agriculture MINASCOF - Ministry of Social Affairs and Feminine Condition MINDIC - Ministry of Industrial Development and Commerce MINAT - Ministry of Territorial Administration MINEPIA - Ministry of Livestock, Fisheries and Animal Industries MINFI - Ministry of Finance MINSANTE - Ministry of Health NGO - Non-Governmental Organization OC - Office C6r6alier ONCP8 - Office National de Commercialisation des Produits do Se PDA - Provincial Delegate for Jariculture Qrs - Quantitative Restrictions SAL - Structural Adjustment Loan SAP - Structural Adjustment Program SDA - Social Dimensions of Adjustment WFP - World Food Program FISCAL YEAR July 1 - June 30 o/ Exchange rate, at end-DcCmber, 1990. The exchange rate of the CA Franc is fixed at 60:1 to the French Franc, which is a floating currency. FOR OFFICIAL USE ONLY CAM,ROON FOOD SECURITY PROJECT STAFF APPRAISAL REPORT TABLE OF CONTENTS Page DOCUMENTS CONTAINED IN PROJECT FILE...................... i KEY FEATURES OF THE AGRICULTURE AND FORESTRY SECTORSR........ii LOAN AND PROJECT SUMMARY............................................iii I. INTRODUCTION......... ...................... .......1 Background......................... ..........................1 The Economy.............................................. .. ....1 The Structural Adjustment Program................... ......2 Medium-Term Growth Prospects.....................2......2 Agricultural Performance.....................................3 Agricultural Prospects and Constraints ...................4 Government Policy and Strategy......................5 II. FOOD SECURITY POSITION AND STRATEGY..........................6 Food Security Position.......................... .....6 Availability of Food...............7...... ..........7 Regulations and Policies Influencing Food Availability........9 Food Accessibility.........................................10 Food Utilization/Nutrition. ...............11 Food Security Strategy: Past and On-Going Actions............12 Public Investments..........................................12 Policy Measures......................... ....................13 Supply Sidc Measures .........................13 Demand Side Reasures.........................................14 Administrative Organization and Institutions................16 Bank Invclvement in the Agricultural Sector....... .......18 III. THE PROJECT ............................... .......18 Project Rationale and Objectives.............................18 Project Description........................................19 Detailed Features.................. .........................20 Support to Rural Community Micro-Projects....................20 Locust Control Program.......................................22 Early Warning and Market Information System..................23 Market Infrastructure................. . ........23 Nutrition Education..........................................23 This report is based on the findings of an IBRD appraisal mission in November 1989 led by Ms. M. Nguyen, consisting of Mr. D. Mitchnik, Ms. Saadat, Ms. Eastwood (consultant), Messrs. Thomson (adviser), D'Arbre (consultant), Dinnechin (consultant). The appraisal was completed in June, 1990 by Ms. Y. Saadat (Mission Leader), L. Wardle, Messrs. K. Apara and D. Mitchnik. The project advisor has been Mr. P. Thomson of the Food Security Unit. Messrs. M.J. Gillette and K. Cleaver are Country Programs Director and Sector Division Chief, respectively. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. table of Contents _g.ontined) IV. P1OJECT COSTS AND FIUANCINC................ ......24 Cost Estimates ............................................. 24 Financing .................................................. 25 Onlending Procedures.......................... ............ .25 Procurement ................................................ 26 Disbursements........... ...................... ..........28 Reporting .................................................. 29 Accounts and Audits ......................... ................30 Post-Project Incremental Recurrent Costs...................30 V. ORGANIZATION AND MANAGEMENT.................................. 31 FIMAC Program .............................................. 31 Locust Control.... .......... . .. . . ...........*..........32 Information Systems........................................ 32 Market Construction........................................,32 Nutrition .................................................. 32 VI. BENEFITS AND RISKS ................. ...... .................... .33 Benefits .... .. ................. . . .....................33 Economic Benefits ........ .................................. .33 Project Risks ..............................................34 Environmental Impact .......................................34 VII. AGREEMENTS AND RECOMMENDATION ................................ 35 ANNEXES 1. Food Security Strategy 2. Rural Community Micro-Projects 2.1. Village Storage 3. Locust Control Program 4. Early Warning and Market Information System 5. Market Infrastructure 6. Nutrition Education 7. Detailed Cost Tables 8. Procurement Schedule 9. Estimated Schedule of Loan Disbursements 10.1 Otganizational Chart 10.2 Implementation Schedule 10.3 Bank Supervision input into Key Activities 11. Economic Analysis of Micro-Projects, Village Storage, and Market Infrastructure Components Maps IBRD No. 22073 Food becurity Project - i.- CAMEROON FOOD SECURITY PROJECT DOCUMENTS CONTAINED IN THE PROJECT FILE A. DOCUMENTS AND REPORTS 1. Etude Preliminaire à la mise en place d'un Fonds d'investissements pour des Micro-Réalisations Agricoles et Communautaires (FIMAC), Mai 1989. Ministè:e de l'Agriculture, Direction des Etudes et Projets. 2. Les Populations à Haut Risque Alimentaire, Octobre 1989. Etude faite par CEGOS-IDET, Fonds Européen de Développement. 3. L'Amélioration de la Commercialisation des Produits Vivriers, Décembre 1989, Sema Group Management Consultants - Fonds Européen de Dévelo'pement - Tome 1: Le Stockage; Tome 2: La Transformation; Tome 3; Les Transports. 4. Etude de Faisabilité des Actions Visant à l'Amélioration de la Commercialisation des Produits Vivriers au Cameroun - Besoins en Infrastructures de Marchés - Volet III/CEGOS Etudes Conjointes SEMA- CEGOS. 5. Etude de la Commercialisation des Produits Vivriers, Juillet 1986 - G.F.S. - MIDAS. Fonds Européen de Développement. 6. An Assessment of Nutritional Factors Affecting Children Under 5, Pregnant and Lactating Women, Peggy Thorpe, CARE, Canada. May 1990. 7. Etude de Faisabilité d'un Projet Pilote de Stockage et de Transformation des Produits Vivriers dans la Province de l'Extréme-Nord, Greniers Villageois de Mise en Marché. Mars 1990, Ministère de l'Agriculture, DPA. 8. Etude en vue de l'Amélioration des Performances de l'UTAVA, Septembre 1990, Ministère de l'Agriculture, DPA. 9. Report on the Survey of Pesticide Stocks in Cameroon, Overseas Development Administration, February 1990. 10. Etablissement d'un Système National d'Information pour la Sécurité Alimentaire et d'Alerte Rapide, Programme de Coopération FAO- Gouvernement, Novembre 1989. B. WORKING PAPERS 1. Food Security, John Gray, Food Studies Grou?, Oxford, J.K., February 1988. 2. Crédit Foncier du Cameroun, Situation Financière au 30 juin 1989. 3. Crédit Foncier du Cameroun, Rapport d'Activité, Exercice 1988/89. 4. Detailed Cost Tables. 5. Protucole de Mise à Disposition d'un Equipment à un Groupe. 6. Note sur la Mise en Place de Financements du FIMAC (undated). - 11 - REPUBLIC OF CAMEROON FOOD SECURITY PROJECT KEY FEATURES OF THE AGRICULTURE SECTOR 1. Popula'lon (1988 estimates) Total a/ 11.2 million Rural as X of Total */ 61 Rural Families 1.0 million 2. Lconoeic Overview NP/Had of Total Population (US$ 1989) k/ 1916 Agriculture ONP as N of Total 1989 C/ 27 Agricultural GNP/Head of Rural pu ietion (USS)S/ 484 3. Land Us* #/ Land Area (km2) 479,4W Are* Perennial Crops (ha) 766,6n Are* Annual Crops (ha) 1,21,00 4. Development of Produclon (1988/84 production leves of 19o4ugirouct on VIVO a % / Cocoa 90 Robusta Coffee 152 Arabica Coffee 61 Maize 261 Millet and Sorghum (base year 1980/81) Rice59 Groundnute 250 Yame 133 Cassava 22 Plantains 110 Potatoes (base year 1902/83) 132 Sweet Banana 6 5. Principal Inputs Fertilizer (metric tons) g/ 16,4650 6. Trade (1988) ToVaT Exports (CFAF billion 1989/90)(3) 661 (100) of which Agriculture 216 ( Cocoa 68 (1 Coffee 52 Timber 8 6 Cotton 24 Other Agricusture 40 Total Imports (CFAF billion (X) 1967/86) 469 (1W) of which Food, Beverages, Tobacco h Agricultural Equipment 92 (20) 7. Government Expenditures (1990-91) f/ Total Investment Budget (CFAF billIon) 203.4 Amount of Investments in Agriculture (CFAF billion) 29.6 Percentage of Investments In Agriculture (X) 14.6 0 FAUTPr Preparation Report Bank Atlas C/Estimated 9/ Ministry of Agriculture 0/ National Accounts, Ministry of Plan Ty Public Investment Program, Ministry of Plan AFIAG September 1990 - iii - C,MEROON FOOD SECURITY PROJECT LOAN AND PROJECT SUMMARY Borrowers Republic of Cameroon Beneficiaries: Ministry of Agriculture (MINAGRI) Aerial Pest Control Unit (APCU) Crddit Foncier du Cameroun (CFC) Ministry of Health (MINSANTE) Loan Amounts US$23.0 million equivalent Terms: Standard IBRD terms, with 20 years maturity, including a five-year grace period. Onlending Terms: Aerial Pest Control Unit (APCU). For the aerial locust control program in the North and Extreme North Provinces, an amount of US$2.2 million equivalent would be passed on to APCU by the Govemnment in the form of a grant to replace obsolete equipment and provide training. CrOdit Foncier du Cameroun (CFC). For the market infrastructure component, part of the proceeds (US$4.1 million equivalent) would be on-lent from Government to CFC at an interest rate equal to the current Bank rate, plus 1.25% to cover for the foreign exchange risk assumed by the Government with 20 years maturity, including a five-year grace period, and from CFC to municipalities, at an interest rate of at least 13Z, providing CFC with an adequpa margin for its intermediation role. Loans to municipalities would be repayable over a maxim= of 10 years, including a two- year grace period. An amount of US$0.5 million equivalent would be passed on to CFC in the form of a grant for consultant services. Micro-Proiects Financing Scheme (FIMAC). For the micro- projects component, part of the proceeds (US$8.5 million equivalent) would be on-lent from Government to beneficiary groups for (i) commercial investments, at an interest rate of not less than 15Z, with a maximum repayment period of 4 years, and (ii) social-type and infrastructure investments, at no interest, with a maximum repayment period of 4 and 10 years respectively. Proiect: The project will create employment opportunities and raise the purchasing power of rural groups, particularly women, improve feeding and dietary practices through a pilot nutrition education program for high risk groups (children under five and pregnant and lactating women), increase efficiency in marketing and storage of foodstuffs, and -iv- reduce the impact of pest attacks on food production thtough the strengthening of APCU Crop Protection Service. Investments proposed under the food security project are designed to implement part of the Government's food security strategy. Other ongoing projects and projects under preparation vt:h include improved services and infrastructure to the poor in rural areas shall complete the strategy. The proposed project includes the following investment components which shall be implemented throughout the country, except as otherwise indicatedt (a) in all provinces financing of micro-projects to supports (i) commercial cash-generating group investments; (ii) non- commercial social-type investments by community groups which are non-cash generating (e.g) food processing and transformation equipment: and infrastructure investments such as on-farm and village storage, watering points for livestock, fish ponds, rural tLacks. Commercial investments shall be subject to commercial interest rates of at least 152 p.a. while non-commercial social-type investments shall be subject to cost recovery; a pilot village food storage program in the Extreme North Province; and institutional support to MINAGRI to assist in project implementationt (b) locust control in the North and Extreme North Provinces; (c) early warning for drought and other causes of food shortfalls, and a market information system over a three- year period; (4) construction and renovation of market infrastructure in rural and urban communes; (e) over a three-year period, formulation of a national nutrition education strategy based on the development and implementation of a pilot nutrition education program for high risk children and women in one department of the Extreme Northern, Eastern, and Western Provinces, and the urban slums of Douala City. assimsea rolecs .os4s PROJECT COST SUMMARY 1/ Foreign Local Foreign Total Exchange X Total ----US$ Millions----- X Beo Costs Micro-Projects 11.1 7.3 18.4 89.5 67.3 Locust Control Program 1.1 3.9 6.0 77.3 15.6 Information System 0.6 0.7 1.8 63.7 4.1 Market Infrastructure 8.3 2.4 6.0 40.6 18.6 Nutrition 9.6 0.8 1.4 56.2 4.5 TOTAL BASE COSTS 17.0 16.: 82.1 46.9 160.8 Physical Contingencies 0.5 0.7 1.3 67.9 4.0 Price Contingencies 1.2 1.2 2.4 S0.9 7.4 TOTAL PROJECT COSTS 10.7 17.0 35.7 47.6 111.4 (Including Taxes) Taxes (6.4) (0.0' (0.4) TOTAL PROJECT COSTS 10.3 17.0 35.3 (Net of Taxes) Financins Plan Local Foreign Total ------- (US$ million) ---- Government 1.8 - 1.8 Beneficiaries 3.6 - 3.6 APCU 1.4 - 1.4 Municipalities 1.7 - 1.7 IBRD 8.9 14.1 23.0 Japan 0.9 2.9 3.8 World Food Program l/ - - - Total 18.3 17.0 35.3 1/ WFP would contribute food for trainers, food for work and grain as working capital for village storage construction under component (a) of project. Estimated IBRD Disbursements IBRD Fiscal Year 92 93 94 95 96 97 98 99 ---------------- (uS$ million) -------------- Annual 1.15 2.99 4.37 5.06 3.22 2.07 2.99 1.15 Cumulative 1.15 4.14 8.51 13.57 16.79 18.86 21.85 23.00 - vi - Benef its The project will improve food distribution and thus reduce the cost of food to consumers, increase producers' Jncome by averting loss from locust attacks, provide incentives for increasing production and consumption of domestically produced food. The project will also create employment opportunities for rural groups, especially women'R groups, and increase income of the poor. By supporting marketing, processing and transformation activities, the project will help reduce the time devoted by women to these tasks, enabling them to dedicate more time to family nutrition and child care. Finally, the project will encourage self-help initiatives, responding to community needs. The demand-driven character of group- investments is expected to be a major factor in ensuring project success. Risks The main risk foreseen is the complexity in project implementation and supervision due to the multisectoral approach of the project. Concentrating the implementation of most of the compcnents within a single Ministry, MINAGRI. and involving qualified NG0s at the field level will facilitate the project's implementation and supervision. The ability of farmers to respect management guidelines and repayment of funds is another potential risk. Training of group leaders, having repayments made in revolving funds at the local level managed by groups and their sponsors, use of group pressure, are administrative incentives designed to reduce the risk of associating farmers in the implementation of the micro-projects scheme. A third risk is related to the capacity of the financial intermediary to manage the line of credit, the municipalities and rural councils to appraise and manage market construction projects and repay loans contracted for such purposes. The implication of a viable financial intermediary, Crddit Foncier du Cameroun (CFC), in the management of the credit line to municipalities, and the provision of training for CFC and councils' staff will reduce the risk attached to this component. Economic Rate of Return Productive components: 15% 1l Maps IBRD No. 22073 Food Security Project 0 I/The ERR represents the minimum yield for eligible micro-investments under the FMAC component, and market construction projects to be financed by the line of credit. The economic analysis of micro- investment models shows that the minimum eligibility criteria of 15? can be easily attained. Market projects have a firancial rate of return of 18%, based on the average cost of a market module and current market user fees. CAMEROON FOOD SECURITY PROJECT STAFF APPRAISAL REPORT I. INTRODUCTION Background 1.1 Cameroon is a country of about 475,000 km2 with a population of about 11.2 million. Extending from the Atlantic Ocean north to Lake Chad and to the Southern tropical forest latitudes, Cameroon is one of Africa's most diversified countries, with varying climatic zones, altitudes, topography, hydrology, vegetation and soils. Population density is uneven with areas of bigh density alternating with vast tracts of empty land. The pressure of Cameroon's high population growth, presently at 3.12 per annum, is a factor both in rural land use and in the migration of youth to the cities. Agriculture, livestock, and forestry production are major potential sources of growth, given the favorable population/land ratio (20 per hectare), below- potential yields, and under-exploited natural resources. The mineral resource base is diversified with reserves of oil, bauxite, iron ore and natural gas. The Economy 1.2 After a period of robust growth from 1980 to 1985, the Cameroonian economy is in the midst of an economic crisis due to sharp deterioration in its termu of trade and falling oil production, exacerbated by economic mismanagement. Government intervention has been pervasive. Until recently, prices of both domestic and export crops were fixed and controlled, as were intermediary marketing costs and profit margins. Various regulations were imposed on internal and external trade. The proliferation of parastatals for a wide range of activities, particularly in the agricultural sector, further attests to the extent of public sector intervention. 1.3 Between 1985 and 1988 per capita income fell by 22 percent. The emergence of domestic arrears and the decline in foreign assets created a liquidity crisis in the banking sector which exposed past imprudent lending practices, especially to public enterprises, inadequate supervision of financial institutions, and a rigid interest rate structure. External competitiveness was eroded by a domestic inflation rate higher than that of Cameroon's trading partners, and by the appreciation of the CFAF against the U.S. dollar. Together, these factors led to a 27 percent appreciation in the real effective exchange rate between 1985 and 1988. 1.4 Government reacted by cutting expenditures on investment and material purchases, thereby contributing to the ongoing slowdown of economic activity. In September 1988, the Government signed a Stand-by arrangement with the IWF to continue with the stabilization measures. The Government also prepared a far reaching adjustment program to complement the stabilization effort. In 2 June 1989, the Aank's Executive Directors approved a US$150 million equivalent Structural Adjustment Loan (SAL) for Cameroon to be disbursed in three equal tranches over an 18-month period. The Structural Adjustment ProLram 1.5 The SAL supports the first phase of a comprehensive multi-year adjustment program aimed at restoring internal and external balances, reducing the domestic cost structure, and removing structural constraints to growth. A key result of the program would be an estimated 15 percent depreciation in the real effective exchange rate by 1995, which would help restore Cameroon's competitiveness vis-&-vis its trade partners to the level existing in 1977 (before oil revenues became important), when the current account and fiscal situation were in equilibrium. 1.6 Decisions have been taken to liquidate 15 State-owned enterprises, privatize 12 and restructure about 30. The Government has agreed to liquidate three state-owned banks and one mixed-ownership bank and esta*lished an institution to recover their bad loans. Performance contracts have been drawn up for the restructuring of agricultural parastatals, providing evidence of Government's announced withdrawal from productive and commercial activities. The Government has decided to liquidate or to divest a number of agricultural parastatals including those concerned with wheat production, the financial institution for agricultural credit, two rice producing enterprises, and the food supply and seed producing enterprise. Revenue producing parastatals such as SEMRY (rice), SOCAPALM (palm oil), CDC (rubber, palm oil, tea), HEVECAM (rubber), and CENEEMA (agricultural equipment), which have been retained in the public portfolio, are being restructurLd I.o become self-financing. Development parastatals such as SODECAO (cocoa), SODECOTON (cotton) and MIDENO (Rural Development in Northwest Province) are being restructured to increase efficiency and reduce costs. The Government's marketing monopoly for some food and export crops is being dismantled through the restructuring of SEHRY (rice) and ONCPB (export crop marketing board). Controls of domestic prices and trading margins were drastically curtailed .n June 1989 and now cover only a handful of basic consumer goods. Although much progress has been made towards the realization of public enterprise reform, iacluding that of the banking sector, substantial shortfalls in government revenue and poor internal coordination among ministries have delayed its implementation, and after significant delays the second Tranche of the SAL got released. Similarly, the IMF program lapsed because of revenue shortfalls. However, negotiations for a second Pund program are about to begin. Medium-Term Prospects for Growth 1.7 Medium-term prospects remain weak due to the slow response expected from reliance on internal adjustment measures (i.e. without any complementary change in the nominal exchange rate). GDP growth is projected at less than 2 percent per annum until 1995 and below 3 percent per annum thereafter. Growth in non-oil GDP is projected to be one percentage point higher in both periods, the difference reflecting the decline in the petrol"um sector. The agriculture sector, which remains the backbone of the economy accounting for 3 60 percent of the country's employment and 30 percent of its export receipts, is expected to grow between 3 and 4 percent per annum. These projections assume a positive growth in per capita food production, reversing the recent declining trend. The food sub-sector's performance is critical to that of the entire sector as it accounts for more than 50 percent of total agricultural production and offers interesting export prospects to neighboring markets in Gabon and Nigeria. Agricultural Performance 1.8 Agriculture'. performance has been modest relative to its resource base. During the 1960s, agriculture grew at a rate of about 5.21 p.a. mach higher than the national growth of about 1.42. Its growth rate fell to 3.41 p.a. between 1970 to 1975, regained its momentum between 1975 and 1982, with a rate of 72 p.a., mainly due to expansion of export crops. After 1982, while the economy grew at 5.61 p.a., agriculture was almost stagnating (1.99 p.a. 1982188), mostly because of slow growth of export crop production and unfavorable prices. While food crop production data varies widely, it appears that until recent years, the subsector largely kept pace with population growth. Per capita food production peaked in mid-1970 and has since declined. Area expansion largely accounted for the growth in food crops, although recently area-based growth has been constrained in the main food producing centers of the country due to land scarcity. Foodcrop yields have virtually stagnated, or even declined, due to inadequate research and, until recently, extension services to the majority of food growers, exacerbated by limited availability of credit, input supply and market outlets. The exception has been in rice production, where parastatals have been lavishly financed to develop irrigated rice. The livestock subsector has suffered from a high cattle mortality rate, resulting in substantial imports of meat of about 40,000 tons a year. 1.9 The performance of export crops has been mixed over the past 25 years. Its very good performance in the early 80s (1981/85-262 growth p.a. in current terms) was followed by an average decline of 62 p.a. between 1985 and 1988. Production of conoa and arabica coffee has declined at a rate of 2 to 3 percent per year. Low relative prices, which have discouraged investments and caused an aging of plantations, plus an aging workforce have been at the root of this decline. Other export crops. cntton, robusta coffee, palm oil, and rubber have had a better growth record. Relatively attractive producer prices for robusts coffee and cotton have encouraged the renewal of coffee plantations and the expansion of both area and yield of cotton., Rubber and palm oil production have increased significantly with government investment in large estates. Smallholder plantations of these crops have not yielded good results. Forestry exports have expanded, mostly in the form of logs. Forest resources remain substantial, but their exploitation has not been rationalized, resulting in depletion of a few popular species, and the risk of the ultimate loss of the entire forest resources if a rational exploitation regime is not adopted. 4 Agricultural Prospects and Constraints 1.10 With its diversified resource base and high agricultural potential, Cameroon's agriculture has the capacity to feed its fast growing population, rrovide higher income levels in rural areas, attract more investment, and earn substantial foreign exchange for the economy. 1.11 Traditional and New Exports. Cameroon is physically well endowed to produce most traditional export crops. However, at current world prices, financial losses on cocoa, coffee, and cotton exports resulted in a net drain of CFAF 50 billion in 1988/89 for the Government. Policies of fixing producer prices, independent of world prices, and establishing price schedules for every intermediate step of the marketing process for cocoa and coffee have proven to be very inflexible and costly. The system effectively imposed heavy taxation on farmers when world prices were higher, while the deficit accumulated in recent years as world prices dropped could not be sustained and farmers' incomes were not protected. Under the Structural Adjustment Program and the Bank-supported Cocoa Rehabilitation Project, the Government has taken steps to restore the financial equilibrium in the cocoa, coffee, and cotton sub-sectors, including reductions of intermediary costs and producer prices for 1989/90. Increased productivity is being promoted through an effective plant protection program, the use of high yielding varieties to replace old trees and other yield improving cultivation methods. 1.12 Market prospects for Cameroon's non-traditional exports, such as of f- season vegetables, tropical fruit, and processed products, appear promising. Cameroon has preferential access to the European Economic Community (EEC) market under the Lomd Convention, which has not been exploited fully. Moreover, trade logistics such as freight capacities are favorable relative to other competing countries. Cameroon should pursue an aggressive strat.-gy to diversify into new products. The private sector rather than tne Government has the dynamism to develop new products. However, the private sector will respond only in a favorable macro-economic environment. Considerable progress has been made in liberalizing trade, removing price controls, and revising the investment code. 1.13 Food Subsector. Prospects for increasing food production are favorable given Cameroon's wide range of agro-climatic resources, presently low yields compared to potential, growing urban population, and relatively free marketing system. However, inadequate marketing outlets and post- harvest facilities for storage, preservation, processing, and transportation discourIge sustained expansion in food products. These constraints are likely to be felt more keenly following the recent reduction in official producer prices for traditional export crops, which would, ceteris paribus, encourage substitution by food crops.1 Livestock is a major source of income for 302 of the rural population and offers immediate growth 1This is already the case in the North West Province where male farmers are shifting out of coffee into potato production as a means of securing cash income. This has depressed market prices for potato because of increased supply, with a negative impact on women's income. 5 opportunities. The internal and external markets eAist given annual imports of 40,000 tons and neighboring Nigeria as a potential export market. High mortality is a major cause of production losses. Input supply of medicines. credit and adequate extension in production and marketing are the main constraints to further expansion. Government Policy and Strategy 1.14 The Government's objectives for the sector emphasize food security, promotion of exports and crops used by local industry, and an increase in rural employment and income. The Government has initiated a number of important actions to create a policy environment conducive to meeting its objectives, reducing public sector intervention in many spheres. This strategy is to be achieved through: (a) intensification of agriculture; (b) rationalization of public expenditures in the sector to cut casts and increase efficiency of public investments; (c) rational development of the country's rich natural resources, particularly in the forestry sub-sectorg and (d) greater reliance on the private sector for agricultural development. 1.15 Review of an Agriculture Sector Report (Report no. 7486-CAM, March 1989) by the Government and the Bank served to orient the Bank's involvement in the sector for the next three years. An agreement was reached to shift emphasis from traditional investments in large estates and parastatals, government owned industrial plantations, and regional rural development projects towards sectoral operations which would emphasize policy reforms; institution building; private sector investments and improved national agricultural services in research, extension, cooperative credit, forestry and animal health. 1.16 Harmonization of extension services, stronger linkages between extension and research, and intensification of agricultural production is being developed under the Bank financed National Agricultural Research Project (FY88), and a National Agricultural Extension and Training Project (FY90). Reforms and institutional support to enhance a liberal marketing environment in the food sector, and increase the participation of the private sector and the poor in the development process are addressed under the proposed Food Security Project (FY91). Veterinary services are being privatized, and institutional issues of the sub-sector being addressed under the Bank financed Livestock Sector Development Proiect (FY89). The Forestry Code and the forestry tax regime are to be modified, as a condition of release of the third tranche of the SAL, to provide a legal basis for a rational exploitation of resources, for promoting agro-forestry and involving local populations in the protection of national parks and reserves. These reforms are to take place in the context of a rationalized exploitation and conservation regime to be developed under the Forestry and Environment Project (FY92), under preparation. The Bank is in the process of assisting the Government prepare an Export Promotion and Diversification Project (FY92), to create a favorable institutional and policy environment for private investments, and to diversify markets for both traditional and non- traditional agricultural and agro-industrial exports. 6 11. FOOD SECURITY POSITION AND STRATEGY Food Security Position 2.1 Food security in Cameroon is defined as access to sufficient quantities of food to ensure a healthy and active life for the entire population. Essential elements of the food security strategy ares (a) the availability of adequate food resources; and (b) the ability of the population in all areas of the country and in a'1 circumstances to acquire sufficient quantities of food to meet nutrition needs, and to take full advantage of available food resources. While Cameroon's food security position is favorable relative to many other Sub-Saharan African countries, with a high ratio of food self-sufficiency of about 96% 2, chronic and transitory food insecurity exists in certain areas due to such factors ass (i) shortfalls in production as a result of unfavorable climatic conditions and/or untimely and insufficient pest and locust control, especially in the northern part of the country; (1i) low purchasing power limiting access to food, and health and sanitary facilities; and (iii) inappropriate infant and child feeding and maternal dietary practices due to inadequate knowledge and insufficient time, on the part of women, to devote to child care responsibilities. 2.2 Food imports have risen steadily (average annual rate of growth of food imports in current terms of 1ll between 1979/80 and 1988/89), due to increased domestic demand, partly caused by the low value of the dollar vis- I-vis the CFA franc. In addition, rapid economic growth which accompanied the expansion of petroleum production since the late 1970s contributed to increased relative urban incomes, in turn stimulating the rate of urbanization to about 5 to 6 percent per annum and creating a similarly rapid increase of demand for food in urban areas. The rural sector has become increasingly ill-equipped to meet this demand due to inappropriate trade regulations, an aging rural population, lack of access to credit, inadequate transportation/distribution system, a traditional production/marketing system, and stagnant technology. The sector is still very largely self- sufficient in most parts of the country, with the greater part of all crops retained on farm for self-consumption. 0 2This rate is less than 100% because of total dependency on imports for wheat and frozen fish, and large amounts of rice imports, although it would have been about 105Z, despite imports, if post-harvest losses had been fewer (132 in 1986). 7 Availability of Food 2.3 Crop Yields. Major crop yields are low, remaining well below research potential. Increased production, coupled with improved productivity of marketing is the challenge to meet the country's growing demand. Due to recurrent droughts every four years high variability exists in the production of the northern provinces, which accounts for about 35 percent of the country's area and 27 percent of the population. In addition, about 1.2 million ha are subject to locust attack which has now become endemic in the north, affecting 3 million rural people. The West is better endowed with a long rainy season, although area expansion is restricted by limited availability of cultivable land. The East and the South are mainly forest areas, with poor infrastructure and limited market accessibility. Improving yields through better research and extension, provision for crop protection (paras. 2.4-2.6) construction of marketing and village storage infrastructure (paras. 2.7-2.9) would lead to increased production and food availability. 2.4 Locust Control. According to Government reports, insect attacks on crops have reached endemic proportions in the North and Extreme Northern Provinces of Cameroon, where food security is marginal due to unfavorable climatic conditions. Traditionally, Cameroon has depended on emergency assistance from the international community when locust attacks occur. International assistance, mostly in aerial spraying and provision of limited amounts of pesticides, vehicles and equipment, has been sporadic and untimely. In view of the recurrent nature of pest attacks in the North and Extreme Northern Provinces, there is a need to institutionalize anti-pest activities to ensure effective and timely action. 2.5 The Government proposes more systematic protection through proper surveillance and training of farmers to destroy insects during their most vulnerable stage. However, the estimated cost of providing logistical support and pesticides to the Phytosanitary Units in the two Northern Provinces is considered to be too high at a time of severe financial constraints. The Government has requested that funds be included under this project examine the cost/effectiveness of the Crop Protection Service and the possibility of village/farmer participation in this activity. 2.6 Based on the preliminary results of a diagnostic study prepared by the Government in September 1990, it has been concluded that providing support to the Aerial Pest Control Unit (APCU) can be justified in that an infusioi of funds in the form of a grant from the Government to APCU to replace obsolete equipment, finance essential training and part of the operating costs would enable APCU to operate in part on a self-sustaining basis through receipts from its commercial pest control activities, and permit APCU to continue supporting Government locust control activities in the two Northern Provinces. 3For example, maize yield ranges from 1 to 1.5 tons per ha versuc the potential of 3 tons per ha; sorghum and millet at 0.5 tons per ha compared to 1.5 tons per ha. 8 2.7 Marketins. Storage and Processing. Food marketing is highly competitive as proven by limited traders' margins, between 10 to 20 percent. However, large differences between producer and consumer prices (two to three times), and harvest and post harvest prices (3 to 4 times) reflect the shortcomings of market infrastructure, i.e. high transportation costs, restricted information to producers, limited storage capacity. large losses, and small unit volumes per transaction. Around two thirds of food sales are made immediately after harvest typically in small volumes by women, direct producers or retailers (buyam-sellams, small local traders), who walk long distances with head loads or use local pick-up taxis to reach open air markets. Sales are made directly to consumers or traders. Farmers are usually at a disadvantage because: (i) the trader is better informed; (ii) the farmer has an urgent need for cash; and (iii) any unsold produce must be carried back to the farm. Sometimes, three-sided sheds can be found in market areas, in which products are protected from sun and rain, however there are usually no facilities for longer-term storage or for assembly of larger volumes of produce. Transport and handling costs are high and the need for facilitating assembly of larger volumes and reducing unit costs is a major constraint. 2.8 Cameroon's food security system relies heavily on the private markets for storage, marketing, and processing. There is a concentration of food storage at the farm level, both for consumption and for speculation purposes. Private traders play a minor role in food storage. Official storage is also too insignificant to stabilize supply and price. At the farm level, storage for consumption purposes suffers high losses estimated between 10 to 70 percent, depending on the locations and the crops. It was also observed that about 60 to 75 percent of the crops reserved for sales were sold within two months of harvest, depressing price levels in producing areas during this period to about one third of the price received -y farmers outside the harvesting season. This is due to farmers' acute cash needs, inadequate storage capacities, and high losses from existing capacities. Improvement of storage, especially village storage, will stabilize prices, reconstitute family stocks, and enhance revenues for farmers, while retaining grain at the village level during a longer period of the year instead of the massive outflows presently occurring shortly after harvest. 2.9 Most urban and rural market infrastructure is inadequate. Past investments in market construction have been distributed disproportionately. Government has financed the construction of markets only in the major urban centers (Yaound6 and Douala). No real effort has been made to finance the construgtionlimprovement of markets within secondary cities. The few modern markets, financed largely by government subsidies, are oversized and extravagant, with consequent high operating charges, resulting in rental fees too high for most small retailers. Market construction/renovation is considered a priority by many urban and rural councils. At present, there are 22 urban and 170 rural councils in Cameroon. However, with limited financial resources, the Government is encouraging municipalities to raise money from their own sources and from commercial lenders. This policy will require the introduction of a cost recovery system by municipalities to service loans and cover operating costs, including depreciation. The impact of the new policy will lead to the construction of markets in accordance with 9 real needs and programmed according to financial capacities. Improved market infrastructure is an element in the gradual intensification of urban-rural linkages, central to increased income and employment generation in rural areas. Regulations and Policies Influencing Food Availability 2.10 Trade Regulations. According to the 1989-91 General Trade Schedule, exports are classified into free and regulated categories. Exports of cocoa, coffee, cotton, forestry products, medicinal plants, food crops and animal products are subject to regulation for purposes of stabilization, environmental protection, protection of pharmaceutical industries and food security. 2.11 Food exporters are registered with the Ministry of Industrial Development and Comerce (MINDIC) and are required to possess a valid collection license issued by the divisional authority in the area of collection. The collection license pertains not only to exporters, but to any trader wishing to take produce out of a producing area. The controlled products are not defined and seem to be determined entirely at the Prefect's discretion. Similarly, the license does not specify the amount to be collected. Since it is impossible to prove or disprove the origin of merchandise, a trader needs licenses from every food producing department through which he transits to assure immunity from police interference. The collection license reqirement was lifted in May 1990. Elimination of this regulation on internal trade was a key factor in reducing the distribution costs incurred in the form of administrative harassment and rent seeking by officials. Exporters' registration with MINDIC is still required for export of animals, products of animal origin and fishery products. Removal of export authorization would contribute to export diversification and expansion of markets for local production. The removal of prior authorization on exports of animals, animal products, and fishery products, and the simplification and decentralization of registration requirements for exporters of food products with MINDIC will be made before loan effectiveness (para. 7.2(a)). 2.12 Obtaining a transporter's license from the Ministry of Public Works and Transport involves a time lag of between 2 to 8 months following presentation of an application to the Prefect (including a policy record and certificate of moral rectitude). Upon receiving the license the transporter can begin trading only on receipt of a public transport card for his vehicles, renewable annually at a cost of CFAF 100,000, commonly known as the "Blue Card". Such unwieldy procedures are often evaded through bribery by those who handle food, such as small transporters, farmers using their own trucks, and small local traders known as "buyam-sellams". The regulations penalize most of the modern elements of the trade and the small number of trucking companies. Policy reforms foreseen under an upcoming Transport Sector Project (FY93) to streamline procedures under the transport sector regulations would encourage large scale transport of food, lower unit costs of distribution, and therefore increase availability of foodstuffs on the local market at more reasonable prices. 10 Food Accessibility 2.13 Credit. Farmer Groups and Rural Financing. The current illiquidity of the banking system and the dissolution of the state-owned specialized agriculture bank, National Fund for Rural Development (FONADER). have virtually eliminated formal sources of financing for agriculture. A new agricultural credit bank, Credit Agricole du Cameroun (CAC) was established in April, 1987 and plans to open four provincial centers in 1991, and the remaining five provinces to be covered the following year. Loans to smallholders are not favored by financial intermediaries due to lack of collateral. The credit union movement in the anglophone part of the country has a successful history of rural credit and is largely self-sufficient. The credit unions, while slowly expanding in rural areas have encountered difficulty in making high risk agricultural credit loans. In the past, subsidized credit has been diverted for housing and consumption purposes with little incentive for loan repayment. Future credit programs should respond to farmer needs, including consumption and investment loans, based on the borrower's capacity to repay. 2.14 Informal savings and credit organizations, known as Itontineso or Oniangis, are another important source of funds for the rural population, particularly women. Tontine groups are a special feature of rural development in Cameroon, characterized by a long history of informal farmer groups, about 2,000 country-wide, averaging between 100 and 400 per province. Group membership may comprise an extended family, clan or district, or may be established with a particular production, activity or focus. These farmer groups, which comprise both men and women, are potentially an effective contact point for dissemination of rural credit to a strata of the population heretofore neglected. Making credit available to this sector of the population for small lucrative or social-type investments in micro-projects related to production, processing and marketing of agricultural products and livestock, and small-scale infrastructure would lead to increased production and incomes, an increase in the availability of food for auto-consumption and for the local market, and diffusion of labor saving technologies, particularly for women, thus providing more time to devote to child-care and improved family nutrition. 2.15 A study on financing needs of farmer groups was carried out by MINAGRI (Etude Pr#liminaire & la Hise en Place d1un Fonds d'Investissements pour des Micro-R6alisations Agricoles et Communautaires (FIHAC), May, 1989). The study assessed the groups' structure, investment patterns, reasons for success, and failure, and the availability of formal credit and other financing in rural areas. The failure of many grass-roots initiatives is found to be due to poor group management. Groups have little support in evaluating productive activities and managing finances. Means of sensitizing group members and raising their awareness is not always provided systematically. The study found that a strong demand exists for community investments, particularly among women's groups. Since these groups are poor and lack collateral or official status, their access to financing is very limited and they have to rely on resources from NGOs, and/or from their own savings and borrowing. Where credit is provided by a financial intermediary or a project authority, it was found that the administrative cost is 11 prohibitively high, quite often higher than the amounts borrowed. With the current liquidity problem of the banking system, and its ongoing reforms, it is not feasible to develop a traditional credit program through the official credit circuits to support small, communai micro-projects scattered throughout the country. Food UtilizationfNutrition 2.16 Nutrition Situation. The 1978 National Nutrition Survey provides the only readily available comprehensive data on the nutrition situation in Cameroon. According to the survey, among children between the ages of 3 months to 4 years, 17.3Z were underweight according to weight-for- age norms; 35.62 were stunted according to height-for-age norms; and 2.0% were wasted according to weight-for-height criteria.4 While the rate of wasting may appear low, the survey was conducted during the post-harvest season when food supplies are at their peak. The data indicated that malnutrition was more prevalent in rural than in urban areas and that significant regional differences exist; the Western, Eastern and North- Western Provinces showed the highest rates of malnutrition. High rates of maternal malnutrition, particularly in the Northern provinces, measured by arm circumference and skinfold thickness indicators were also recorded. 2.17 Since the national survey, other, more limited nutrition surveys have shown that the prevalence of protein-energy malnutrition of high risk groups (children under the age of five years and pregnant and lactating women) has not improved, and in the Western, Eastern and Extreme Northern Provinces has actually deteriorated. Infant birthweight statistics collected between 1982 and 1988 corroborate this picture of poor nutrition in the country, indicating that 132 of births are classified as low birthweight (less than 2500 g), a reflection of continuing maternal malnutrition. 2.18 In addition to protein-energy malnutrition, micronutrient deficiencies are widespread, the most important of which are iron and iod:ie deficiencies. Iron deficiency anemia is estimated to affect 452 of children under the age of five and 802 of pregnant women. Goiter, an indicator of iodine deficiency, affects between 352 to 582 of the population in the East, and pockets of the disease also can be found in the North-Western, Center, Northern and Western Provinces. 2.19 Determinants of Malnutrition. The 1978 nutrition survey highlighted low socio-economic status, illiteracy, overpopulation, inadequate childcare, poor infant and child feeding practices, high incidence of infection and poor utilization of health services as the major determinants of malnutrition. Additional research in Cameroon suggests that seasonal food shortages, inadequate sanitation and access to potable water, and maternal dietary practices should be added to the list. 4 Nutrition status indicators are expressed as percent of children below - 2 S.D. of the median value of the reference populLtion. 12 2.20 Within the context of food security the most important of these factors are low socio-economic status associated with inadequate access to food, seasonal food shortages and inappropriate infant and child feeding and maternal dietary practices. In view of the high ratio of food self- sufficiency (962) in Cameroon, improving household access to and availability of food would require an emphasis or. improvements in food distribution and household purchasing power. In combination with these efforts, nutrition education could play a substantial role in effecting changes in feeding and dietary practices through increasing knowledge to ensure that additional income and access to food would be used in ways which improve nutrition. Food Security Strategy: Past and On-Going Actions 2.21 Cameroon's strong emphasis on food security is reflected in Government's Food Security Strategy (Annex 1). The objective of the strategy is to provide sufficient quantities of food to all the population to ensure a healthy and active life. Elements essential to the strategy are the production of sufficient foodstuff and enabling the population to acquire it. The strategy emphasizes measures to: (i) increase food production and crop protection, storage and transportation facilities, market availability and distribution channels; (ii) improve access of the poorest sectors of the population by raising their purchasing power through financing employment- generating activities, and improving the health and nutrition of the most malnourished sectors of society; and (iii) strengthen institutions through planning, coordination, and monitoring of the country's food situation. The Government has taken a number of steps to improve the policy environment (paras. 2.23-2.24), which are designed to reduce Government intervention, encourage private sector participation, increase agricultural production, and liberalize transport and marketing. These actions are expected to go far towards creating an enabling environment to attain the Government's food security objectives. Public Investments 2.22 Before the present financial crisis gripped the country, official investments mainly supported parastatals and estates, whose production accounted for about 10 percent of agricultural GDP. Research and extension reaching traditional farmers, who contribute 90 percent of total agricultural output, were largely neglected. Attempts at regulating prices and supply through parastatals such as the Cereal Office (Office Crdlier-OC) and the Food Development Authority (Mission de d6veloppement des cultures vivribres- MIDEVIV) failed; MIDEVIV was neither able to procure sufficient food for civil servants, nor assure the food security of the urban population at large and has since been converted to a seed production parastatal, now slated for privatization. The OC was meant to regulate the food supply and prices, and to produce millet and sorghum seeds on a commercial basis. It has not been able to regulate the cereals market because of restrictions on commercial 13 operations which, in the absence of adequate compensatory funding by the Government, resulted in manipulation of limited quantities of cereals. Policy Measures 2.23 The Government has already liberalized imports except for a few strategic foodstuffs such as rice, sugar, and oil palm, for which quantitative restrictions (Qrs) remain. Domestic production of these products is protected under the equalization funds (Caisse de pdrdquation), established in July 1988 in response to dumping and subsidies from surplus countries, and the fall in the dollar vis-a-vis the CPA Franc. Under the SAL, the Government is committed to study the impact of Qrs and equalization funds before reaching agreement with the Bank on whether and how these products should be protected. 2.24 A liberal marketing environment for foodstuffs will continue. The Government intends to phase out regulations that affect internal and external trade. The Government will withdraw from commercial and productive activities, as well as stabilization of prices and supplies of grains through stock holdings, and encourage private agents to assume these functions. In general, agricultural parastatals are to be either liquidated, privatized, or restructured for eventual privatization under the SAL program. With respect to the Cereals Office (OC), as a first step, restrictions on commercial operations have been lifted and management of the OC is to be permitted more autonomy. The Government intends to limit its financing to the provision of an initial working capital of about CFAF 300 million to allow operations at existing capacities of 7,500 tons. The OC should continue operations as a self-financing entity, and compete with the private sector in grain purchases and sales. It will no longer be required to hold a security stock as in the past. Signature of a performance contract reflt.cting the above arrangements has been effected as a condition of second tranche release of the SAL. The void created by the reduction in OC activities will permit the private sector to respond to the demands of the marketplace and ensure an adequate supply of foodstuffs where demand exists. Supply Side Measures 2.25 Removal of supply constraints remains a major concern in the Government food security strategy. Rather than financing parastatals for food production and marketing as in the past, the Government has reoriented public investments towards research and extension to reach a larger number of farmers through increasing the efficiency of national systems. Emphasis is placed 'on improving the productivity of women, the chief producers and providers of food, in growing food crops. The ongoing extension program addresses this issue through staff recruitment and training, and the 5 According to the FAO, price regulation is only effective if an agency handles at least 20Z of the available quantities. Although this figure can be contested, it suggests the insignificance of the amounts purchased by the OC in the three northern provinces between 1979 and 1988, which averaged 5Z of total grain available. 14 dissemination to groups of women of relevant messages concerning crops which they cultivate such as maize and tubers. This strategy is being implemented under the Bank-financed National Agricultural Research Project (Ln 2766 CM) and the National Agricultural Extension and Training Project (Ln 3185 CM). 2.26 Reducing livestock mortality and stemming meat imports also forms an integral part of the supply side of the strategy. The Government has established countervailing duties on meat dumping, and streamlined investments in the livestock subsector under the Livestock Sector Project (Ln 3110 CM). Moreover, a strategy and action plan are under preparation to promote the development of fishery resources to supplement protein consumption and to reduce imports. 2.27 Timely availability of inputs is essential for improving productivity. The Government has already privatized fertilizer distribution, and intends to extend the policy to include pesticides. Measures to move towards private distribution of pesticides and reductions in public subsidies, are being implemented. With the assistance of USAID, the Government is preparing a comprehensive program for private distribution of these inputs. 2.28 Improvement in food distribution is another essential element to the removal of supply constraints. The Government is now preparing a Rural Infrastructure Project with Bank assistance aimed at expanding the feeder road network in the country to food-producing areas, and intrAucing simple transport equipment to reduce the time required for food transport, actions which will enhance marketing opportunities, particularly for women. Under the proposed food security project, produce collection centers will be constructed in rural centers, and marketing facilities upgraded and expanded in important trade centers in both urban and rural areas. Village storage will be encouraged to regulate food supply and prices, replacing gradually the functions of the Office Cdrdalier. Research and extension for food processing and transformation technology will be provided under the National Agricultural Extension and Training Project to reduce post-harvest losses, increase value-added, and reduce imports. Demand Side Measures 2.29 The Government is increasingly aware of the impact of demand constraints on the immediate and long-term food security position of the country. Of prime concern is the deflationary strategy of stabilization with its negptive impact on the population's income and its ability to acquire food, and a resulting tendency for further degradation in the nutritional status of the country. In the face of reduced incomes of the most vulnerable groups (i.e. cocoa, coffee and cotton farmers, field workers in parastatals to be retrenched), creation of employment opportunities becomes an urgent concern. The Social Dimensions of Adjustment Project (SDA) (Ln 3206 CM), is helping to address this problem through various institutional and financial measures to facilitate the transfer of civil servants to the private sector. Both the SDA Project and the proposed food security project will support micro, labor intensive projects initiated by community groups in the urban and rural areas respectively, aimed at increasing incomes of the poor. 15 2.30 Micro-Project Experience. A first phase of the micro-enterprise investment program (FIMAC) was launched in August 1990, with financing provided from the balance of an ongoing Bank Project, FSAR II (Ln. 2567 C4) and a Japanese Grant. The program finances micro-projects managed by communities in eight Departments in the Extreme North, East, South and West Provinces.6 This phase provides the logistical support required by the program, finances the selection and training of the central level staff, the nine FIMAC provincial coordinators, and a first group of departmental coordinators. Training is focussing on project evaluation/management. The first phase includes financing for the start-up of about 400 micro-projects (57 infrastructure projects and 340 productive projects) over the next three years, including almost 40 projects in 1991. By February 1991, the provincial commissions, the provincial level staff and a number of the departmental coordinators were in place. In the five other provinces. FIMAC provincial project coordinators will be preparing the set-up of the commissions and staff to launch the program during 1992, including the administrative staff in the Northwest Province. All provinces will be covered by 1993. Agreement was obtained during negotiations of the proposed project, on final operating procedures for FIMAC (paras. 3.4-3.9), which have been pre-tested in the field (7.1(b)). Testing of FIMAC investments will provide a framework for identifying future micro-project investments which enhance food security (processing, storage, marketing) at the community level. 2.31 Although it is too early to evaluate the FIMAC, its administration as well as its training component will have to be tailored to regions, given the enormous diversity among regions. Heavy emphasis should be put in the northern provinces and in the East compared to the rest of the country. NGOs' involvement will also have to be more cught in remote areas than in central areas, whereas participation of government services minimised to one of monitoring/evaluating the Project and technical extension. 2.32 Government Nutrition Programs. Government's nutrition programs is implemented through several ministries. Tne Ministry of Health (MINSANTE) has attempted to provide comprehensive hea&th coverage -- including health and nutrition education, vaccination and oral rehydration therapy -- to children and pregnant women who attend health centers. Each province maintains a nutrition unit managed by a trained nutritionist. In addition to MINSANTE, the Ministry of Social Affairs and Women Conditions (MINASCOF) trains and equips community workers who carry out home visits. The Ministry of Agriculture (MINAGRI) through the Department of Community Development (DEVCOM) trains staff to educate the public on infant feeding, food preparation and weaning diets. The Ministry of Higher Education and Scientific Research (MESIRES) carries out basic and applied research on nutrition. The Government also continues to support food-for-work and 6Same procedures and operating guidelines will be applied to the "Village Development Fund", a component of MIDENO's Second Phase Project in the North West Province. The administrative support necessary to evaluate and supervise the micro-projects financed by the MIDENO Project, will be covered by the FIMAC component of the proposed Food Security Project. 16 supplementary feeding programs for schools, clinics and hospitals through donations from the World Food Program (WP). In the face of an ever- worsening economic situation over the last three years, all of these programc have suffered severe budgetary cuts. 2.33 Despite financial problems, the Government is determined to strengthen primary health care services. Recently, in an effort to promote intersectoral collaboration among technical ministries involved in nu';rition programming, a pilot program including nutrition and health education, food preparation and cooking demonstrations, nutrition surveillance, vaccination, and oral rehydration therapy through community participation was begun on a pilot basis in 10 Maternity and Infant Protection Centers in Yaound(. Health and nutrition are also being addressed under the Social Dimensions of Adjustment (SDA) project, which intends to, inter alia, improve the budgetary process, monitor nutrition status, and provide nutrition education through the primary school curriculum and primary health care centers. 2.34 A number of religious based missions intervene on health issues in the northern and eastern rural areas and provide both preventive and curative health services through the primary and maternal child health centers. In most cases, nutritional diagnostic methods are well developed. Difficulties remain in conunicating messages to target groups and educating them to follow recommended remedies. 2.35 Food aid is limited in Cameroon, largely provided by the World Food Program (WFP). The main activities of the WFP are development-oriented projects which use food supplies as a mechanism for supporting relief activities and social projects. While this orientation will continue. ewphasis will be increasingly made on purchase of food produced locally and distributed in the context of development-oriented activities, an approach which will be promoted under the Project. Administrative Orzanization and Institutions 2.36 Cameroon comprises 10 Provinces managed by Provincial Delegates representing each ministry and 49 Departments where Government ministries are representedt Province No. of Departments Extreme North 6 , North 4 Adamaoua 5 Northwest 5 Central 8 South 3 Littoral 4 East 4 West 6 Southwest 4 17 2.37 Many institutions are involved in food security responsibilities, including Government ministries, local government bodies, cooperatives and non-governmental organizations. The Ministry of Agriculture (MINAGRI) comprises seven Directorates, three of which, the Direction des Projets Agricoles (DPA), the Direction du Ddveloppement Communautaire (DEVCOM), and the Direction Agricole (DIRAGRI), are responsible for locust control services, and community development activities, an area in which the Ministry of Social Affairs and Feminine Condition (MINASCOF) is equally active. DEVCOM. the Ministry of Health (MINSANTE) and the Ministry of Higher Education and Scientific Research (MESIRES) collaborate in implementing health and nutrition peograms. together with NGOs. .he Direction des Enquftes Agro-dconomiques et de la Planification Agricole (DEAPA) of MINAGRI is responsible for agricultural surveys. Each ministerial Provincial Delegation is responsible for implementation of individual ministry work programs and fall under the authority of the Provincial Delegates who in turn are responsible for provincial coordination activities, and who report directly to the respective Ministers. 2.38 The Aerial Pest Control Unit (APCU) was established (Decree No. 85- 1201 of August 30, 1985. modified by Decree No. 88/1178 of September 8, 1988) as a public institution of an industrial and commercial nature endowed with legal status and financial autonomy under the auspices of MINAGRI. APCU responsibilities include: (i) implementing government policy regarding the aerial treatment of crops, mainly by determining the most economical and effective methods of aerial treatment for crop and epizootic diseases; (ii) organizing national aerial crop culture campaigns against crop pests likely to affect rural production; (iii) providing practical guidance to farmers and training in agricultural aviation for officials in conjunction with the Ministry responsible for civil aviation; and (iv) coordinating all the activities for aerial protection of crops, forests and wildlife. APCU is managed by a coordinating board comprising: the governor of the Northern Province, the Director of Agriculture; provincial delegates of agriculture and chiefs of phytosanitary bases of the zones concerned; a representative of MINFI; a representative of MINEPIA, Ministries of Defense, Transport and Public Health. It received no subsidies from the Government during 1989/90 and managed to generate sufficient income to maintain partly its operations through the provision of commercial services to agro-industries. 2.39 Crddit Foncier du Cameroun (CFC) is a public financial institution responsible for urban development and housing. Its Board of Directors comprises representatives of the Presidency, the supervising ministry (MINFI) and the,public savings and insurance agencies. Under the management of a Director General, there are two departmentst Finance and Operations. Its resources, primarily based on a 32 wage tax, as well as savings' deposits, were mainly used for housing loans. CFC's financial situation remains healthy, despite an end to government's transfer of employees' contributions. CFC is in the process of expanding its lending operations to municipalities supported by a two year technical assistance program with French aid (FAC) to reinforce CFC's technical and financial know-how. Under the Second Urban Project (Ln. 2999-CM), CFC was entrusted to manage a line of credit to finance income-earning municipal projects. 18 Bank Involvement in the Agricultural Sector 2.40 The Bank has been involved in 25 projects in Cameroon since 1967. Much of the Bank's early lending focussed on nucleus estate smallholder plantation projects. Since the mid-1970s, smallholder projects and regional rural development projects integrating productive and infrastructure components were emphasized. In 198o the Bank began to move towards sub- sector projects to address key agricultural issues identified as bottlenecks to achieving productivity growth such as research, input supply, extension, marketing and credit. The Agricultural Sector Review identified productivity increases as the key to agricultural growth. The Bank's future strategy includes the following objectives: (a) maximizing food production to ensure food security for the population and to exploit the country's comparative advantage in producing food for export in the region; (b) expanding exports of traditional and non-traditional products to the extent that they can be absorbed in the world market at reasonable prices, while improving quality and diversifying the export base; and (c) creating opportunities for rural employment to reduce the income gap between urban and rural areas and stemming rural emigration. The proposed project is a key element in the Government's aforementioned food security strategy of supporting agricultural production increases by intensifying smallholder production. 1aproving marketing and processing, and raising women's agricultural productivity. 2.41 Lessons learnt from past projects have been incorporated in the design of the proposed Food Security Project: (i) use of existing public and private institutions for implementation rather than creating new ones; (ii) implementation shall be decentralized and mainly carried out by NGOs, farmers' groups and municipalities, limiting Government's intervention to 'public good' services i.e. locust control, provision of statistical information, and nutrition education; this marks a departure from previous operations which supported Government involvement in productive and commercial activities; (iii) with two thirds of the proposed Loan composed of various credit schemes, the Project finances essentially activities identified, prepared, implemented by beneficiaries and best suited to their needs; the highly participative nature of the Project will contribute to its development impact; (iv) reliance on budgetary support for counterpart financing has been minimised, given the State's severe resource problem, nevertheless the financing plan remains very solid, with important contributions to be made by beneficiaries, municipalities, and APCU. III. THE PROJECT I Proiect Rationale and Obiectives 3.1 The Government has elaborated a National Food Security Strategy (Annex 1). The implementation of priority measures articulated in the above strategy has already started under various projects mentioned earlier. Food security in Cameroon is consistent with growth objectives since the food production subsector has high comparative advantage, and contributes to employment and income generation. The Project will improve access to and availability of food by creating opportunities for increasing employment and 19 incomes of the poor and by addressing food distribution constraints. It therefore forms an integral part of the Government's development strategy and the Bank's lending objectives in Cameroon, which are to support growth and mobilize the participation of underprivileged groups in the economic recovery process. A number of other donors are also con, erned witl food security but have not heretofore taken action due to the lack of defined programs. Government's finalized strategy statement as well as the proposed project will translate priority programs into operations designed to have a sustained impact on the long term food security position of the country, and mobilize donor support for a coherent investment program in the sub-sector. 3.2 The project aims at improving food security by creating employment opportunities, raising the purchasing power of disadvantaged groups in rural areas, especially women, to enhance their access to food, reducing the impact of locust attacks on food production through the strengthening of the APCU Crop Protection Service, increasing efficiency in marketing and storage of foodstuffs through institutional support, and improving feeding and dietary practices through a pilot nutrition education program. Investments envisaged under the Project in support of these objectives, when added to activities financed under several other projects (notably the SDA Project, the National Agricultural Research Project, the National Agricultural Extension and Training Project, the SAL), will together enable the Government to implement its entire food security strategy. Proiect Description 3.3 Project components, to be implemented in the entire country unless otherwise stated. will include the followings (a) self-help initiatives by community groups in micro-projects such as inve3tments in commercial cash generating activities (e.g. retailing), non-commercial productive activities and infrastructure projects (e.g. food processing and transformation equipment, watering points for livestock, fish ponds and rural tracks), in the entire country except for the Northwest Province, plus an emphasis on village storage in the Extreme North; training; and institutional support to HINAGRI in all provinces to assist t project implementation (b) locust control in the North and Extreme North Provinces over a three-year period; (c) establishing an early warning combined with a market information , system over three years; (d) construction and renovation of market 'acilities in urban and rural communesg (e) developing and implementing a pilot nutrition education program, over a three year period, for high risk groups (children under five years and pregnant and lactating women) in one department in the Extreme Northern, Eastern, and Western Provinces, and the urban slums of Douals City; and formulating a national nutrition education strategy; 20 Detailed Features 3.4 Support to Rural Community Micro-projects (Annex 2). Under the FIMAC component, financial assistance, including group credits, will be made available for the implementation of micro-projects initiated by community groups, based on experience gained under the pilot program (para. 2.30). Financing will not exceed 60-70? of project costs submitted by groups who will finance the balance in cash and in kind. Reimbursements would be deposited in a local bank or post office account managed by groups' sponsoring organization (para. 3.8) (pages 5-8; Annex2). Consequently the funds will be retained at the decentralized local level. The program's objective is to allow local groups to manage project works and project funds, while minimizing administrative costs and delays. Recovered funds will be used to finance future investments by the same group or other groups. In this mantner, management of local level rural investments related to food security needs shall be vested in groups of people, rather than in Government. 3.5 The community group investment approach has already been tested with success on a pilot scale in Cameroon. Revolving funds, similar in concept to the tontines*, the traditional savings' group in Cameroon, have been set-up in the Northwest province by NGOs for groups whose members make individual uses in turn and reimburse the fund. Under the Project, revolving funds for groups will be set-up in all provinces, except in the Northwest Province which already benefits from similar existing schemes. 3.6 Two kinds of financing will be made available for group investments under the FIMAC components (i) an experimental micro-credit program for commercial cash generating investments (e.g. retailing, manufacturing), at commercial interest rates (not less than 152/year), with a maximum repayment period of 4 years, and a maximum loan amount of CFAF 4,000,000 (US$16,000 equivalent, and (ii) financing, with cost recovery, for non-commercial social-type investments for improving food self-sufficiency of groups (e.g. farm tools and equipment, and infrastructure such as village storage, livestock watering points, fish ponds, rural tracks), with financing not to exceed CFAF 500,000 (US$1,900 equivalent) and a repayment period of less than 4 years in the case of small equipment, and a maximum financing amount of CFAF 6,000,000 (US$23,000 equivalent) and a repayment period of less than 10 years in the case of infrastructure projects. (Chemical inputs, social and communications infrastructure would be excluded under the program.) 3.7 The credit component will make credit available to beneficiary groups not presently served by commercial banks, by making use of institutions better able to reach those groups. This would be done in full consistency with the Bank's new guidelines for financial sector operations, through application of market-level interest rates: funds would be onlent by the Government to the borrowers at a rate equivalent to commercial-type rates in the agriculture sector, currently at 15 percent. 3.8 The program will complement overall efforts to rehabilitate the financial sector which are being undertaken under the Bank-financed SAL. 21 These rehabilitation efforts aim in particular at restructuring major commercial banks in order to restore their long-term viability and at gradually reestablishing adequate liquidity in the banking sector, thereby improving the system's ability to finance productive investment in the economy. Parallel actions are aimed at improving the banking environment through the restoration of the necessary financial discipline and of an efficient, competent and transparent judiciary system. 3.9 - Beneficiaries of the FIMAC component will be rural groups, averaging 15 members, recognized by traditional and administrative authorities, and sponsored by an NGO or a Regional Development Agency. The group will have to form a management committee, and contribute between 30 to 402 of the project cost in kind and cash. An agreement will be concluded between the group and its identified sponsor and the departmental coordinator of FIMAC, describing the project and its costs, the amount of financing from FIMAC and the group as well as the reimbursement schedule (sample agreement end-Annex2). Income based poverty indicators have been established to ensure that target groups would be the beneficiaries of loans. 3.10 Reimbursement Procedures: Repayments will be deposited in a savings account in the name of the sponsor (NGO, Village Development Committee, Area Development Company). The sponsor should be sufficiently broad-based to cover several groups at a time. Transactions on the account will require two signatures from the sponsor and the departmental coordinator, a staff from Ministry of Agriculture. Funds can be used for another project once all repayments for the previously financed project are made. Funds reconstituted can be rotated among groups under the same sponsor agency. The sponsor agencies, quite often NGOs or parapublic area development companies, will be responsible for managing the rotating funds (FIMAC scheme on page 7-Annex 2). In case of a default, the provincial commission (para. 5.3) of FIMAC will decide on the use of funds already deposited. In case of non-reconstitution of funds, no further financing will be provided to the group. Equipment financed by FIMAC will be reposessed and group collateral seized.7 3.11 Training of community leaders and participants in community projects will be an important element of the FIMAC program, ranging from awareness-raising to workshop training for operation and maintenance, and fina-.al discipline and management training for group leaders. Training will focus on implementation of micro-projects, and will also include specialized technical training on production and processing activities financed by FIMAC. Training will include regular sessions, workshops, as well as brief organized visits to technical centers. Training will be carried out by specialized training institutes, NGOs, and the field staff of technical ministries (MINAGRI, MINASCOF, MINEPIA) depending on the demand. 7Collective ownership of assets is uncommon among the rural poor, hence the difficulty of introducing the concept of group collateral. Nonetheless, the ongoing FIMAC program is in the process of developing procedures requiring collective assets, when they exist, to be offered as security by participant groups. 22 Financing requests for training vill be prepared and submitted by sponsors. who will select from a menu of training options made available by the departmental coordinator. Requests will be examined and approved by the provincial commission. A maximum training allowance of CFAF 80,000 and supervision allowance of CFAF 80,000 per micro-project has been included in project costs. Groups will contribute to the financing of the training up to 50Z of total cost. On average CFAF 4,000 per trainee will be paid by groups (average group size would be 10 to 15). 3.12 It is expected that about 1700 micro-projects benefitting about 2,000 groups will be implemented under the entire program during the next five years. Progression in the number of projects will be gradual, starting with 40 projects in 1990/91, in order to test the operational nature of guidelines and identify successful activities. Two thirds of projects shall be financed in project years 4 and 5. The program will constitute a transitional phase for disadvantaged communities before they can have access to an established financial intermediary. During this period, groups will receive support to finance investments while being trained to assume financial responsibilities i.e. analyzing costs, reconstituting funds. 3.13 The micro-projects in the Extreme North Province will emphasize a pilot program of village storage (Annex 2.1) for about 200 groups of farmers. The construction of storage facilities will be financed under the FIMAC program. The World Food Program (WFP) will finance the purchase of small equipment, and half of the initial stock to enable the group to start with some working capital. Training will be provided to farmers' groups in proper storage techniques, and the management of the stock. If successful, the program will serve as a model to be replicated in other parts of the country. Execution of village storage component will be similar to the infrastructure micro-projects under the FIMAC component. 3.14 Technologies for conservation and processing of food crops will be addressed under the National Agricultural Extension and Training Project, which will carry out research and on-farm demonstrations, and provide training to extension workers as well as to farmers on existing and new technologies. The financing of equipment and materials required for this purpose will be included under the FIMAC program. 3.15 Locust Control Program (Annex 3). Support to aerial crop protection services in the North and Extreme North Provinces will be provided to the APCU in the form of a grant from the Government to finance vehicles, equipme4t and training to enable APCU to provide anti-locust treatments through aerial spraying of some 652 of the area infested, and ass"st in ground treatment activities. APCU shall generate sufficient funds to operate its commercial activities, provide its own operating budget and contribute about 20Z annually to the recurrent cost of the Government's anti-locust campaign, and the balance to be financed by government contribution to the project. Specialized training in crop-dusting techniques will be provided for pilots, and aircraft-maintenance and repair training for aircraft mechanics. A study will be financed under the project through MINAGRI to determine the cost/effectiveness of the ground treatment activities of the 23 Crop Protection Service and the possibility of farmer participation in crop protection in the two Northern Provinces. 3.16 Information System for Early Warning and Markets (Annex 4). To reinforce Government's contingency planning capacity in face of severe shortfalls in production, as well as enhancing the transparency of markets, regular information of food markets and food situation will be provided under this component. 3.17 Over a three year period, the project will provide technical assistance, equipment, and training for establishing and operating an early warning and market information system within MINAGRI to collect, analyze, and diffuse information related to food security. The outputs of this system will be: (a) the publication and distribution to Government planners of a quarterly news bulletin by Province that will analyze the food supply and demand situation based on information on weather, production, input supply, prices, volume of main food crops traded, stocks, food imports and exports, and include a qualitative note on the population in the high risk zones received from NGOs, field observations from provincial delegations of MINAGRI, and from development parastatals; (b) a weekly radio program reporting pricing and marketing information from selected market points throughout the country. 3.18 Construction/Renovation of Market Infrastructure (Annex 5). Under the Project, a limited amount of financing (CFAF 1 billion) (US$ 4.1 million equivalent) will be made available to the Credit Foncier du Cameroun to be lent to municipalities according to criteria detailed in para. 5.8 for construction of market infrastructure. An amount of US$0.5 million equivalent will be provided for training seminars for rural and urban councils on the new policy to finance market infrastructure by own sources and bank borrowing rather than government subsidies, the criteria to be adopted for financiag, project evaluation, and financial management of markets. If successful, further financing could be provided under future projects. 3.19 Nutrition Education (Annex 6). This component of the project is designed to improve nutrition of high risk groups (children under five years and preonant and lactating women) by effecting changes in inappropriate child feeding and maternal dietary practices, and to provide the foundation for the development of a national nutrition education strategy. Activities supported under the project include: research and analysis of child feeding and maternal dietary practices; formulation of a national nutrition education strategy; educational materials development and testing; pilot program implementation in several departments of the three Provinces with the highest rates of malnutrition; evaluation of the pilot program and the development of guidelines for the expansion of nutrition education throughout the country. Staff will be trained in qualitative research techniques consisting of collecting qualitative data (focus group, ethnographic accounts and testing 24 within households). data analysis to identify problems and elaborate a strategy, and production of pedagogical material. Training will be provided in communication techniques to about 400 field agents in the use of pedological materials and dissemination of messages. Training will be provided to members of the technical coordinating committee and field staff in the design, data collection and analysis for program evaluation. Training will emphasize individual counselling sessions, group discussions, and interpersonal communication. IV. PROJECT COSTS AND FINANCING Cost Estimates 4.1 The cost of the Project has been estimated at CFAF 9,2087 billion (USS 15.7 million equivalent), of which CFAF 4,420 billion (US$ 17.0 million equivalent) or 462 is foreign exchange. The estimates are based on prices prevailing in July 1990, including US$0.4 million in taxes and duties. Physical contingencies of 10 percent have been included on all costs, except the FIMAC fund and CFC line of credit. Price contingencies are based on the Bank's projections of international price increases (.1,-.04,.016,.038,.040 percent from 1992 to 1996). Local inflation is estimated at one percent lower in accordance with the inflation rate targeted under the SAL. Detailed cost tables are provided in Annex 7 and in the Project File. PROJECT COST SUMMARY 1/ Foreign Local Foreign Total Exchange X Total ------ US$ Milions---- X Base Costs Micro-Projects 11.1 7.8 18.4 89.6 67.8 Locust Control Program 1.1 3.9 6.0 77.3 16.8 Information System 0.8 0.7 1.8 53.7 4.1 Market Infrastructure 8.5 2.4 6.0 49.6 18.8 Nutrition 0.6 0.8 1.4 68.2 4.6 TOTAL BASE COSTS 17.9 15.1 82.1 46.9 106.0 Physical Contingencies 0.5 0.7 1.8 67.9 4.0 Price Contingencies 1.2 1.2 2.4 59.9 7.4 TOTAL PROJECT COSTS 18.7 17.0 86.7 47.6 111.4 (Including Taxes) Taxes (0.4) (0.0) (0.4) TOTAL PROJECT COSTS 18.8 17.0 86.8 (Net of,Taxes) 25 Financ na 4.2 Components will be financed as follows: Municipal- Micro-Projects V6 N3. M.UWrU Locust Control 1.6 1.4 2.8 5.4 Information System 1.5 1.5 Market Infrastructure 1.8 4.4 6.8 Nutrition 1.5 1.5 Total 1.6 8.8 1.4 1.6 28.0 8.6 85.8 6X 15 41 651 65 11X 19s5 4.3 The proposed loan will be made on standard terms with 20 year maturity and a grace period of 5 years. Japanese co-financing is being used to finance technical assistance, vehicles and equipment, training and operating costs under the FIMAC and Early Warning and Market Information System components. Onlending Procedures 4.4 CFC. US$4.1 million equivalent will be on-lent from the Government to CFC, with 20 year maturity and a grace period of 5 years, at a fixed interest rate equal to the on-going Bank rate, plus a 1.25Z margin to cover for the foreign exchange risk assumed by the Government, and from CFC to municipalities, at an interest rate equal to 132 or more, thus providing CFC with an adequate margin for its intermediation role. Loans to municipalities will have a maximum maturity of 10 years, including a grace period of 2 years. On-lending terms to municipalities are specified in a project agreement between the Bank and CFC and in a subsidiary loan agreement for Government retrocession of the loan to CFC. Execution of the subsidiary loan agreement between the Government and CFC will be a condition of loan effectiveness (para. 7.2(c)). The municipalities may borrow up to 70Z of project costs which should not exceed US$ 300,000 equivalent per project with an economic rate of return of at least 15Z. Subprojects above US$ 150,000 equivalent will be submitted to the Bank for prior approval. An additional amount of US$0.5 million equivalent will be passed on to CFC in the form of a grant for training and information ac.ivities. 4.5 FIMAC. Rural community groups can borrow under FIMAC up to 75Z of total cost of a proposed project, with an economic rate of return of 15% depending on the nature of the project. The maximum amount of each financing will be'US$1,900 equivalent and US$16,000 equivalent for non-commercial and commercial activities, respectively, and US$23,000 equivalent for infrastructure projects. Commercial activities would be financed through credits at a 15% rate of interest, with a maximum repayment period of 4 years. Social and infrastructure projects would be financed, at no interest, with a maximum repayment period of 4 and 10 years respectively. Withdrawals made under the FIMAC component will be authorized by the Provincial Delegates from the Agriculture Ministry and Provincial Controller of Finance, for direct payments to suppliers of the project and to sponsors for training. A savings account under the sponsor's name in the nearest bank or post office 26 vill be the depository of reimbursed funds. This account will operate under the signatures of the sponsor and the FIHMAC departmental coordinator (page 5 Annex 2). Reimbursed funds will finance projects submitted by the same groups or other groups supervised by the same sponsor. Management of these revolving funds will resemble that of traditional savings group in the country. No banking establishment will be created, interest paid only on commercial cash-generating investments, and relatively low administrative costs incurred. The funds, which in most previous donor projects, have been managed by Government to undertake infrastructure investment, or finance productive operations with low recovery rates, will be used by local groups to undertake investments. 4.6 APCU. For the aerial locust control program in the North and Extreme North Provinces, an amount of US$2.2 million equivalent will be passed on to APCU by the Government in the form of a grant to replace obsolete equipment and provide staff training. Execution of a grant agreement between the Government and APCU will be a condition of loan effectiveness (para. 7.02 (d)). Procurement 4.7 All goods and services funded under the Bank loan will be procured in accordance with Bank guidelines (Annex 8). 27 Procurement Arrgnageente*g/ International Total items L L Local Other N.A. C Shopping Vehicles 1.8 1.8 Equipment 2.0 1.2 3.1 (2.0) 4 Rural Micro-Investment Credit (FIMAC scheme) 13.0 18.6 (10.2) (19.1) CFC Line of Credit 4.2 1.6 6.6 (8.0) (1.1) (4.1) Technical Assistance b/ 2.9 2.9 Training c/ 2.S 2.5 Operating Costs 6.1 6.1 TOTAL 3.3 6.4 15.2 2.9 6.6 85.4 Bank Financing (2.9) (3.4) (11.8) (1.0) (8 (28.9) Japane Financing [9.3] [@.7] [1.9] [ E.8] CS] * Amounts in round parentheses () indicate Bank financing and amounts square parenthee [] denote Japanese financing. a Includes aounts for items financed by Japan which will be procured following Bank guidelinee. (Numbers may not add due to rounding). b/ Recruitment of technical assistance will follow Sank guidelines and will be subject to prior review by the Bank. c/ Training costs include overseas training for APCU staff, preparation of numerous courses for local staff, training of beneficiary groups at the village level under the micro-investment (FIMAC) component, training of MINSANTE staff, materials and training-related travel. All contracts for vehicles, valued at a total amount of US$1.3 million, will be procured under ICB. Contracts for equipment exceeding US$50,000 will be procured under ICB, while those below US$50,000 up to an aggregate of US$1.2 million will be procured under LCB because of the relatively small value of these contracts. CFC line of credit mainly involves construction of markets scattered throughout the country. LCB procurement will be followed for contracts exceeding US$50,000 aggregating to about US$4.2 million with Bank financing limited to US$3.0 million. These will include local advertising, public bid opening, clearly spelled out criteria for bid evaluation and award to the lowest bidder. Procurement for small and simple contracts less than US$50,000 and aggregating to about US$1.6 million with Bank financing limited to US$1.1 million will be based on local shopping with a minimum of three quotations. Procurement arrangements under the rural micro-credit (FIHAC) scheme, to be relent to the beneficiaries for tools, materials, and small equipment, each contract will be less than US$25,000, scattered throughout the country, up to an aggregate of 28 US$13.6 million will follow normal commercial practices and as a minimum will be made on the basis of local or international shopping, with price quotations obtained from not less than three reputable suppliers (para. d(l); d(2) page 5 of 16, Annex 2), not excluding participation from foreign based suppliers. Operating costs for vehicle maintenance and fuel, travel, office expenses and miscellaneous items for MINAGRI and MINSANTE will follow Government procedures acceptable to the Bank. The threshold for prior review of procurement by the Bank will be US$50,000 per contract. Disbursements 4.8 The Bank loan will be disbursed over a six-and-one-half year period (Annex 9). The schedule of disbursements is based on the standard Cameroonian disbursemer - profile for agricultural projects. Operating expenditures, training and research, and contracts for less than US$25,000 will be disbursed against Statements of Expenditures (SOEs). Claims for other expenditures will be reimbursed on the basis of supporting documents. Documentation of SOEs will be made available for review by Bank supervision missions. Two special accounts will be opened in a commercial Bank in Yaoundd and managed by the Caisse Autonome d'Amortissement (CAA), each representing about four months of expenditures, as follows: (i) special account of US$1.5 million for MINAGRI, APCU. aad MINSANTE; (ii) special account of US$500,000 for CFC. The special accounts will be replenished by the Bank against documented expenditures and upon receipt of withdrawal applications. Japanese cofinancing will be disbursed first, while disbursement of Bank financing will commence only when Japanese funds are exhausted. 4.9 Bank financing of incremental operating costs has not been provided on a declining percentage basis over the life of the Project. Support to certain components of the project, such as FIMAC, is noL expected to continue after project completion since the objective of the program is to bring small investors into the mainstream of the commercial credit system. Similarly, it is expected that APCU will increase its commercial activities over time and will be in a position to make a greater contribution to government locust control activities. In addition, of the project's total recurrent costs (US$6.0 million equivalent), Bank financing amounts to 28% of total, significantly below the maximum permitted by Bank rules. Remaining costs are covered by the Government (292), a government agency -APCU- (23%), beneficiaries (32). and cofinancers (17Z). 29 Disbursements Percentage of Amount Expenditures to Category (US$ Million) be Financed MINAGRT Sub-projects under Micro-investment Credit (FIMAC scheme) 8.5 1002 up to 752 of estimated sub- project cost Vehicles, equipment and materials 0.9 1002 of foreign expnditar*e 852 of local expenditures Consultant Services and Training 2.0 1001 Operating Costs 1.0 1002 CFC Line of Credit Subloans 4.1 1002 up to 702 ot estimated sub- project cost Consultant Services & Training 0.5 1002 APCU Vehicles & Equipment 2.0 1002 of foreign expenditures 852 of local expenditure Training 0.2 1002 MINSANTE Vehicles & Equipment 0.4 1002 of foreign expenditures 852 of local expendi6ures Consultant Services. & Training 0.6 1002 Operating Costs 0.6 1002 Unallocated 2.2 TOTAL 23.0 Reporting 4.10 Annual work programs, including training programs, and budget for each component of the project will be prepared before the start of each budget cycle by MINAGRI, MINSANTE, APCU, and transmitted by MINAGRI to the Bank, for its review and approval. Semi-annual progress reports will be prepared by each implementing agency assessing physical, institutional and budgetary progress against agreed annual programs of operations and targets. CFC's reports will include progress on the use of funds by councils for the construction and 30 renovation of markets. Assurances were obtained during negotiations that, not later than November 30 1991 for the first year, and no later than June 30 of each year thereafter, the work programs and budgets will be forwarded to the Bank for review and approval (para. 7.1(a)). Under the FIMAC component, operating budgets for provincial and departmental administration of FIMAC, will be prepared for each province by DPA staff and consolidated into a global work program and budget by PIMAC staff at the central level. In addition, an evaluation report of activities undertaken during the previous 12 months period, will be submitted to the Bank each year by FIMAC's central level staff, along with its work programs and budgets. Approval of FIMAC's work program and budget, and satisfaction with the progress of activities undertaken during the previous year, including acceptable audits of provincial FIMAC accounts, and capital reconstitution accounts in the departments (para. 4.11), shall condition disbursements after October 1 of each year (para. 7.3). A mid-term review of the FIMAC component will be undertaken jointly by Government and the Bank by December 31, 1994, in order to review: implementation of group projects; status of capital reconstitution accounts on a random basis; training of the various farmer groups; and the efficiency in the administration of small rural micro-projects. Accounts and Audits 4.11 Each executing agency of the above-listed components (MIKAGRI, MINSANTE, CFC, APCU) will maintain accounting records for Project costs, consistent with sound accounting practices which will reflect fairly, in accordance with international accounting principles, the financial situation of the Project. Project financial statements, operations of the special accounts, as well as annual financial statements of CFC and APCU will be audited by a qualified independent firm under procedures satisfactory to the Bank. Audited accounts and reports, will be submitted to the Bank for review within six months of the end of each fiscal year. The audit will also assess as to whether goods and services had been procured in accordance with procedures acceptable to the Bank, and would provide an opinion on the reliability of the SOE procedures. Unsatisfactory reporting or failure to provide accounts within 90 days of the above deadline will cause for reverting to disbursements on documentary evidence. In addition, in view of the numerous deintralized accounts under the PIMAC component, six- monthly verification reports by a qualified independent accountant of provincial and departmental rcapital reconstitution) accounts, the latter on a random basis, will be required to evaluate (a) statement of expenditures authorised and submitted to CAA by provincial delegates of MINAGRI and MINFI, through the central administration of FIMAC; (b) status of reconstitution accounts, including repayment schedules and interest payments by beneficiary groups. Post-Project Incremental Recurrent Costs 4.12 The Government's Public Investment Program has earmarked an amount of CFAP 200 million (US$770,000 equivalent) in 1990/91, and CFAF 500 million (US$1,900,000 equivalent) a year for the following three years on project expenditures, totaling CFAF 1.7 billion (US$6.5 million equivalent). in addition, an amount of CFAF 70 million (US$270,000 equivalent) is included for APCU activities. Annual operating costs following the project period are estimated to be CFAF 580 million per annum, ow 0.32 of Government recurrent 31 expenditures (excluding wages and interest payments) of about CFAF 170 billion in 1989/90. V. ORGANIZATION AND MANAGEMENT (Annex 10) 5.1 All components will be supervised by MINAGRI. The market infrastructure component will be managed by Crddit Foncier du Cameroon, in collaboration with MINAT (Ministry of Territorial Administration), the nutrition component will be implemented by the Ministry of Health (HINSANTE). and the locust program will be implemented by APCU. The overall coordination of project administration will be done by MINAGRI. MINAGRI, in cooperation with other implementing agencies, will be responsible for preparing a general annual report, a global budget and work plan of all project components for the following year. An implementation schedule is attached (Annex 10.2). 5.2 FIHAC Program. The Direction des Projets Agricoles (DPA) of MINAGRI will be responsible for implementing the FIMAC program. At the central level in Yaoundd, staff from MINAGRI will be appointed to prepare methods and procedures for project selection and evaluation, train and provide technical support for execution of project at the decentralized levels in the 9 provinces and their departments, consisting of: (i) a project director; (ii) an assistant director supported by a long-term consultant experienced in micro-project implementation; (iii) an administrative and financial controller, assisted by an accountant; (iv) a field staff upervisor; and (v) two MINAGRI training coordinators. Administration of the project at the central level will coordinate activities with HINASCOF and HINEPIA, and will establish a data bank to monitor micro- project progress. Appointment of key staff at the central level, i.e. the project director, assistriat director, administrative and financial controller, field staff supervisor, and two training coordinators, will be made prior to loan effectiveness (7.2 (e)). 5.3 Approval of all micro-projects and management of funds will be decentralized to the provincial level, under supervision and control of the central DPA/HINAGRI. In each province, a commission under the chairmanship of the Governor or his representative, and with participation of MINASCOF, HINEPIA, HINAGRI, HINPAT (Plan), MINFI (Finance), and NGOs shall meet to examine and approve micro-projects documents prepared by groups. The commission will be assisted in its deliberations by two provincial staff from HINAGRI in charge of administering the project, under the supervision of the Provincial Delegate of Agriculture. In addition, provincial staff will assist in the preparation of documents, monitoring of fund disbursement as well as project execution by groups, and supervision of the training program for departmental staff and farmers. At the departmental level, a MINAGRI staff, to be nominated as a Lt-rdinator for the FIM&C component, will be the point of contact for farmers' groups, NGOs, or other agencies interested it the IHAC program. The departmental coordinator will also assist in preparing the financin& documents to be forwarded to the provincial administration statt for FIMAC and in monitoring project execution. Financing applications will have to be prepared by sponsor agencies and processed through departmental coordinators. The performance of sponsor agencies in the preparatLon and follow-up of micro- 32 projects will determine the future access of their s?onsored groups to additional financing. Disbursements under the FIMAC component shall be subject to Bank's satisfaction with progress of activities and audits of accounts during the previous year and approval of the detailed work program and budget for the following year (para. 4.10). Details of micro-projects preparation cycle, their implementation and the program's administration are provided in Annex 2. 5.4 Under the preparation phase of the project. 9 provincial DPA staff have received intensive training abroad in project management and accounting, and 5 of the 45 departmental coordinators have been appointed and trained. 5.5 The pilot program for village storage will be under the supervision of the Provincial Delegate of Agriculture of the Extreme North Province. The FIMAC component will finance the construction of stores which will house on average 40 tons of cereals. An agreement between the Government and WFP will be signed for the provision of small equipment, and for the initial stock of cereals which shall serve as working capital for the group. Extension services will provide advice on improved storage techniques. Training will be provided to farmers' groups on stock management by NGOs in collaboration with staff from MINAGRI. 5.6 Locust Control. Aerial locust control activities in the North and Extreme North will be carried out by the Aerial Pest Control Unit (APCU), under the supervision of MINAGRI. MINAGRI will be responsible for implementing the study of the Crop Protection Service of APCU. 5.7 Information System. The Direction des Enqu#tes agro-Oc-onomiques et de la Planification Agricole (DEAPA) of MINAGRI will be responsible for implementing the information system through a small coordinating unit comprised of four existing staff (an agro-economist, a statistician, and two research assistants), to synthesize, analyze, and publicize information related to food security. The unit will be assisted by an early warning systems expert for two years to help establish the system, and short term consultants for survey design and training. A DEAPA field structure exists down to the departmental level for collecting data. The field staff will receive reinforced training and be responsible for analyzing data and producing a weekly radio program on pricing and marketing information. The four DEAPA staff responsible for coordination will be appointed prior to loan effectiveness (para. 7.2 (e)). 5.8 Market Construction. Credit Foncier du Cameroon (CFC) will have overall responsibility for the market renovation and construction component. A project agreement, to be concluded between CFC and the Bank, will establish the conditions, for subsidiary financing of market construction planned by municipalities. A loan committee at CFC, including representatives from MINAT, will appraise the technical proposals submitted by municipalities, and make recommendations to CFC Board for approval of loans. Agreement was obtained during negotiations regarding the criteria (size, economic return, financing plan) for market financing under this component. Training programs included under the market infrastructure component will be the responsibility of CFC in collaboration with MINAT. 5.9 Nutrition. The nutrition component will be a collaborative effort of the Department of Community Development of MINAGRI, MINSANTE and MESIRES. MINSANTE 33 will coordinate the component. An NGO with experience in the health and nutrition fields (the Cooperative for American Relief Everywhere, Inc. (Care)) vill finance its technical assistance to the component. Work will be carried out under the direction of a coordinating committee made up of representatives from each of the ministries. The committee will meet regularly prepare action plans for the different phases of the program, assure their execution, attend training sessions, report to their respective ministers on the progress of program implementation. and finally, on completion of the program, define a national strategy and action plan. A qualified national coordinator from MINSANTE will be nominated prior to loan effectiveness (para. 7.2 (e)). The MINSANTE national coordinator and a CARE technical coordinator will be responsible for assuring program execution, including the financial and physical management of the component. As a condition of effectiveness, a contract will be executed between MINSANTE and an NGO, satisfactory to the Bank, establishing precisely the responsibilities of each of the coordinators in the physical planning of the work, preparation of annual budgets, monitoring of physical implementation of the program and budget execution (para. 7.2(b)). VI. BENEFITS AND RISKS Benefits 6.1 The project will enhance food security principally by creating employment opportunities and increasing the incomes and assets of the poor. By supporting marketing, processing and transformation activities, the project will help reduce time spent by women in these areas, and thus enable them to spend more time on family and child care. As the project encourages self-help initiatives which respond to the needs of the community, the chances of successful implementation are heightened. Other project activities will improve food distribution and therefere reduce the cost of food to consumers, increase incomes to producers, and provide incentives for increasing production and consumption of locally produced food. Economic Rate of Return (Annex 11) 6.2 The conventional methodology applied in calculating the economic rate of return for investment projects in agriculture cannot be used for a multi- component project. The project can be analyzed only as a sum of its parts, not as a single entity. Hence, an economic rate of return to the overall food security project has not been computed. The procedure adopted has therefore been to estimate, wherever possible, economic rates of return for individual components. Details of individual rates are provided below. 6.3 For the most important component of micro-projects, accounting for almost 70Z percent of project expenditure, the choice of activities is left to beneficiaries rendering it difficult to quantify benefits ex ante in any meaningful fashion. However, a few models of micro-projects, such as a flour mill, chicken farm, palm oil press, have been developed (see Annex 11, pages 1-3) which show rates of return ranging from 16 to 55 percent. Benefits derive from creation of value-added (case of flour mill), incremental output due to mechanical extraction method rather than manually (palm oil press), and savings 34 in labor use. On this basis, it is conservatively considered that the condition for financing of a rate of return of at least 15 percent would be met, and that this level can be taken to represent the rate of return for the component. 6.4 Village storage would secure grain supply and increase both producers' and consumers' surplus, as both extremely low and exceptionally high prices are avoided. Assuming a without project situation where farmers are obliged to sell immediately after harvest, and economic benefits consequently reflected in time difference in not returns when grain is sold later in the season, an economic rate of return of 16 percent is obtained. (Annex 11, pages 3-4). 6.5 Economic rates of return have not been estimated for the early warning system, anti-locust program, market infrastructure, and the nutrition components. While the enhanced flow of information about production and prices should help to reduce uncertainty and enable farmers to secure more remunerative prices, the magnitude of the impact on production cannot be assessed. In the case of markets, although costs could be estimated in economic terms, benefits are exceptionally difficult to quantify. These may include reduced health risks due to more sanitary trading conditions, reduction in losses and, eventually, a production response due to greater opportunities for marketing produce. It is unclear how much the aerial treatment under the anti-locust component would prevent production losses, making it difficult to calculate the ERR. Risks 6.6 Major risks associated with the project lie in the scope for diversion of funds under the micro-projects component away from target groups and activities and lack of compliance with reconstitution obligations for FIHMAC funds. The first risk is reduced by the decentralization process for approving investments, by following strict criteria for group selection, and by rigorous project analysis to ensure investment viability. The second risk shall be alleviated by implicating sponsor agencies (NG0, local area development companies) of beneficiary groups in close field supervision of the investments, group pressure for fund reconstitution, incentives for repayment (the funds stay with sponsor of several groups in similar sones), and sanctions in case of non- reconstitution of funds. Approval of applications for more financing by the same sponsor shall be based on the sponsor's satisfactory performance. Disbursement condition under the FIMAC component will be based on satisfactory progress on recovery of funds, including interest charges, in the departments. Environmental Impact 6.7 The overall environmental impact of the project is expected to be neutral. Components such as the early warning and market information system, market infrastructure and village storage will not affect the natural environment. As selection of micro-projects is essentially demand-driven, there is a risk that groups might request financing for projects likely to have a negative environmental influence (for example: chain saws for land clearance are popular). To reduce this risk, environmental evaluation criteria are being developed under the first phase of the FEMAC program (para. 2.30) which will be applied in the evaluation of future micro-projects. Similarly, non-chemical 35 methods of grain storage will be promoted, such as the use of oils and/or hermetic sealing to preserve grains. An environmental source book will be made available to extension staff to assist in training farmers. 6.8 The component which can potentially have a negative environmental impact is the locust control program. Although the proposed project does not finance pesticides, their use by APCV under the locust-control program poses a potential environmental hazard. To mitigate the potential for health and/or environmental damage the following safeguards would be included: (i) only those pesticides approved by FAO would be used; (ii) application of Bank guidelines for safe use of pesticides would be followed; and (iii) the ongoing PAO training program in safe handling, which in the past has coincided with the anti-locust campaign, will continue. It was agreed during negotiations that the Government will enforce the application of Bank guidelines for pesticide procurement, application and handling (para. 7.1(d)). Extension staff shall notify rural populations when aerial spraying is to occur, and advise them on avoidance measures. With reference to safe handling of donor-financed pesticides, the staff of APCU and the Plant Protection Service of MINAGRI have already received training in handling of pesticides by international experts recruited by FAO and have experience in locust control campaigns. VII. AGREEMENTS REACHED AND RECOMMENDATIONS 7.1 During negotiations, the following agreements were obtained from the Governments a) agreed annual work plans and budgets (para. 4.10); b) final operating procedures for FIMAC (para. 2.30); c) criteria for market rehabilitation and construction (para. 5.8); d) adoption of Bank guidelines to the safe use of pesticides (para. 6.8). 7.2 Prior to effectiveness the following actions will be taken: a) removal of prior authorization on exports of animals, animal products, and fishery products, and simplification and decentralization of registration requirements for exporters of food products with MINDIC (para. 2.11); b) execution of a work agreement, satisfactory to the Bank, between MINSANTE and the NGO selected to assist in project implementation (para. 5.9); c) a subsidiary loan agreement between the Government and CFC will be executed (para. 4.4); d) a grant agreement between the Government and APCU would be executed (pars. 4.6); *) four qualified DEAPA staff will be appointed to the coordinating unit of the Early Warning and Market Information System (para. 5.7); a qualified 36 national coordinator from MINSANTE will be appointed (para. 5.9): key administrative staff for FIMAC at the central level, i.e. the project director, assistant director, administratur and financial controller, supervisor of field staff, and two training coordinators will be appointed (para. 5.2). 7.3 Disbursements under the FIMAC component after October 1 of each year shall be subject to Bank's satisfaction with progress of activities and audits of accounts during the previous year and approval of the detailed work program and budget for the following year (para. 4.10). 7.4 Recommendation. With the above assurances and conditions, the project would be suitable for a Bank Loan of --23.0 million equivalent. Page 1 of 5 REPUBLIC OF CAMEROON Peace-Work-Nation NATIONAL FOOD SECURITY STRATEGY I.INTRODUCTION The Government of Cameroon defines food security as the access of its population at all times to adequate food to lead a healthy and active life. The Government's priority is to attain the country's food security. the main elements of which are the availability of and accessibility to food. Cameroon has achieved a high degree of food self-sufficiency due to sustained growth in food production and increases in the country's living standards. Despite food self-sufficiency at the national level, elements of the population suffer from transitory or chronic food insecurity. These deficiencies occur mainly in rural areas, and in the northern provinces of the country where drought and locust attacks are recurring phenomena. Food insecurity is also found among vulnerable groups in urban areas. With 632 of its population in the rural sector (1986), Cameroon has always given priority to the modernization and development of its agricultural sector, including the food sector. The country's satisfactory level of food self-sufficiency has been helped by its overall low population density, fertile and diverse land resources, a traditional yet quasi liberal marketing system. The overall positive results have disguised structural weaknesses in the sector. -Over the past decade, Cameroon's population growth rate has exceeded 32 p.a. while urban growth rate of 52 p.a. Future food self- sufficiency will require significant increases in agricultural productivity to keep up with the high population growth and the decline in rural population. There have been only limited technological advances in food crop production in recent years, and the use of modern inputs remains limited. Although marketing of food crops is free of government intervention, distribution costs are high due to underdeveloped storage, marketing, and transport infrastructure. -Another problem is the existence of food insecure regions and populations in parts of the country. In 1990, fin4ings and recommendations of a project to set-up an 'Evaluation and Monitoring System of Cameroon's Food and Nutritional Status" highlighted continued nutrition problems among sections of the population, especially among mothers and young children. In the Northern Sahelian regions of the country, pre-harvest seasons are marked by food shortages and transitory food insecurity while recurrent droughts every four years cause chronic insecurity. Studies have shown that in certain rural areas, such as the Western Province, populations are at risk from chronic malnutrition as a result of land scarcity and high population densities, whereas poor eating habits, lack of nutritional education and access to health and childcare centers in the forest areas of the East and Page 2 of 5 the South, causes malnutrition despite an adequate energy intake. Food insecurity is found in urban areas among low income groups who lack the means to purchase foodstuffs. Over the last decade, food security has been an important objective of the Cameroon Government. The five year Plan of 1981-86 advocated an increase in agricultural production with the objective of elimination of food imports. Important programs were undertaken to increase production. With the creation of MIDEVIV and Office Cdrdalier, the Government created the means to control the marketing and distribution of food products. Under the 1986-1591 Five Year Plan, the Government was to deepen its efforts by undertaking long term planning for food sub-sector. A Long Term Food Plan (PALT) was developed in 1981 and updated in 1985-86. The PALT highlighted the fact that although Cameroon enjoyed a high degree of food self-sufficiency with 96Z nf the country's needs being covered from internal production, the country was, nevertheless, in a precarious food supply situation. This situation led to the creation of a Food and Nutrition Planning Unit within the Ministry of Plan. The Structural Adjustment Program adopted in recent years has had, and will continue to have some negative impact on the country's food security. Reduction in producer prices of major export crops, such as coffee, cocoa and cotton will diminish the purchasing power of farmers and their ability to acquire food. The SAL will also have a negative impact on employment in urban areas with negative repercussions on vulnerable groups and their food security status. The Government is determined to address these risks and has therefore defined a comprehensive food security strategy. II.Government's Food Security Strategy The Government has a three-pronged approach to Food Security in the following areass (1) measures to increase supply, including improvements in the marketing and distribution infrastructure as well as processing and transformation facilities; (2) measures to increase demand and enhance the purchasing power of lower income groups through investments in productive and employment generating activities, as well as nutrition programs targeted at high risk groups; and (3) strengthening of the planning and coordination capacities of ministries through better information collection and dissemination. 2.1 Incentives to Increase Supply Agricultural Intensifications The Government's policy is to modernize foodcrop production through investments in research, extension and training of rural populations. The objective is to improve the yields of yam, sorghum, millet, cocoyams, plantains and various legumes and fruit trees. The Government has created a national extension and agricultural training service, reinforcing the field services in extension. The training component will emphasize, among others, programs which target female farmers and respond to their needs in new technologies designed to reduce their workload, Page 3 of 5 including household workload, and to disseminate improved food transformation and processing equipment. Government's role in production will be one of gradual divestiture from production activities and encouraging of private sector operations in this domain. The policy also supports the reform in the fertilizer and pesticide sub-sectors. Marketing and Distribution of Food Products: The Government is intent on ending its interventions in the distribution and trade of food products. The Government is no longer fixing consumer prices and has eliminated QRs on exports of food crops, including livestock and fisheries products. Legal measures have been taken to ease food transportation and road circulation of traders (reduction in official road blocks, abolishment of purchasing permits required by the Ministry of Commerce for local foodstuffs, removal of collection permits issued by prefectoral authorities for food crop exports). The Government is thus promoting a policy environment conducive to private sector operations (private agents, farmers' groups, NG0s) in the distribution, marketing, transport, storage conservation, transformation of food products. In its effort to further pursue trade liberalization measures initiated under the SAL, the Government intends to streamline remaining regulations affecting the food sector by eliminating prior authorizations for exports of livestock and fishery products, and decentralizing registration of traders at the prefectoral level. Procedures to obtain transport permits have also been simplified to increase volume of transportation. The Government intends to improve all aspects of rural infrastructure needed to ease product marketing: rural markets, rural transportation, feeder roads, training of farmers in appropriate technology to handle, package and store crops, as well as financing of micro-enterprises in the food sector. Given women's unique role in the production and marketing of food crops, the Government has designed programs to specifically address their needs, such as directing credit and rural financing facilities to women's groups. In light of reduced government subsidies, construction of market infrastructure will be entrusted increasingly to municipalities, whose own financial resources need to be complemented by financing from commercial sources, such as commercial bank loans. In order to increase the construction and maintenance of market infrastructure, particularly in secondary cities, and facilitate access to bank financing, the Government has introduced revisions in the existing budgetary and administrative procedures of municipalities, to allow the municipalities to provide adequate guaranties to lending institutions. The impact of new feeder roads in promoting the food security of the country is undeniable and is the object of a new project under preparation. Technologies to conservG and store harvests, including those aimed at reducing post harvest losses, are fairly well known in Cameroon. Government intends to continue research programs in this field and promote the dissemination of improved technologies under the National Extension and National Research Projects. Page 4 of 5 The Government attaches special importance to stabilizing the supply of food crops. Efforts, which are underway to enhance information available on prices and markets, will encourage the flow of goods and lead to an equilibrium between food deficit and food surplus regions. In addition, it has been decided to involve farmers in storage facilities in order to stabilize their supplies. A pilot storage scheme, designed to reduce post- harvest loss, is underway in the Northwest and Western provinces. Another will be tested in the Extreme North and eventually extended to other regions. These efforts are further proof of Government's intention to withdraw in favor of the private sector and, in this case, of village groups. The Government advocates regulating food imports through tariff protection to compensate for the dumping and subsidy policy of exporting countries rice, edible oil, and meat. The policy is meant to protect local producers and provide incentives to encourage them to remain in the business. An equalization fund has been created to use revenues from import tariffs to subsidize local producers. This fund has not yet met its objectives and a revision of its operation is in demand. 2.2 Actions on the Demand side Actions to increase the demand for food are related to creation of employment, increase in the purchasing power of rural and urban population, and improvement of nutrition status of vulnerable groups. The following are actions designed to achieve the above-stated goalt Micro-Investments to increase rural incomes: Measures to increase the purchasing power of the population is another key component of Government's strategy of eliminating transitory food insecurity. The Government has decided to finance micro-investments of community groups in rural areas (FIMAC). This fund will finance small scale rural projects identified and managed by rural communities which have an employment and income objective. In a similar fashion, the Community Development Program (PRODEC) of the SDA project will be financing communal micro-projects in urban areas to help lower income groups finance social infrastructures and generate additional revenues. National Employment Fund, envisaged under the SDA project, aims at assisting the reinsertion of unemployed workers in the economy. , Nutritional Education, under the Food Security project, aims at improving the nutritional status of high risk groups (children under 5, pregnant and lactating women) and develop a national nutrition education strategy. Government's strategy on nutrition is integral to its health sector strategy. This strategy emphasizes Primary Health Care relative to the costly curative treatments provided by hospitals. This strategy is partly supported by the Social Dimensions of Adjustment project, prepared with the collaboration of the Bank. Under this project, the primary health care centers are to be equipped and restocked, and their recurrent costs, Page 5 of 5 resulting from their resumed operations, will be equally financed. These centers will, among others, monitor infant and pre-school children's growth in order to trace malnourished cases as well as organize culinary demonstrations on nutritious meals enriched with locally produced crops. The Government is aware of the importance of the private sector, including NGOs, in the health sector. These organizations are often well structured and managed and are an efficient means of intervention in the field. It is recognized that financial support to these entities for specific programs in health and nutrition at the grassroots level, in cooperation with health centers, is another way of overcoming the inadequacies detected in this sector. 2.3 Planning, Information and Coordination Heasures Information Systems for planninat The Government is aware of the need to systematically collect and analyze data on foodcrops, nutrition, and food security for effective planning of the sector. A good database on foodcrop production by region already exists, but little is available on marketing and consumption. The Government is undertaking a permanent household consumption survey, to have a precise knowledge on the dietary and spending habits of all sectors of the population, and to monitor changes over time. Information on Marketing of Food Crops: In order to improve the marketing of food crops, it is necessary to provide regular and periodic information on prices and the state of markets, consumers, transporters and local groups. Under this program, information on producer and consumer prices, sales volume in markets, rainfall, availability of inputs, state of roads in rural areas will be transmitted regularly and in a timely manner through the mass media. Early Warning System: The government has decided to develop an early warning system, providing timely information to public policy makers regarding the state of food and nutrition of populations at risk, as well as forecasts on available food crops. As a by-product of the above information gathering system, and using the existing information (weather, food stocks) an early warning system will be set up in order to alert the Government on time about negative circumstances at hand and helping to prompt appropriate measures. , The National Committee in Charge of Food and Nutrition (CONAN): The Government recognizes the multiplicity of causes behind malnutrition and food insecurity and the need for a multidisciplinary approach to tackle them. The Government has therefore decided to have a multisectoral working group, composed of technical ministries, and public agencies concerned with Food Security. An inter-ministerial committee, CONAN, is envisaged for this purpose. CONAN will have a consultative role and is in charge of assisting the Government in formulating its policy in food and nutrition and identifying means to carry it out. The objective of CONAN is to enhance coordination between various partners implicated in this sector and to help put in place a multisectoral strategy. Page 1 of 20 REPUBLIC OF CAMEROON FOOD SECURITY PROJECT RURAL COMMUNITY MICRO-PROJECTS (Financement d'Investisseement de micro-rialisations agricoles et communautaires - FIMAC) 1. Background A large number of informal rural groups, especially women farmers groups, operate in the agricultural sector, make a substantial contribution to the food security of the country.1 The majority of these groups is deprived of financial support needed to enhance productivity, reduce post-harvest losses, and in general increase agricultural production. Based on the preparation study, it was found that significant demand exists for small tools and equipment in the sector. Lack of experience in managing finances is pervasive among rural groups. Women's groups are particularly weak in the physical and financial management of small investments. Formal financial intermediaries have been unable to provide micro-cred*ts in rural areas in a cost-effective way. An example in the North-West province shows that the cost of recovery is 280% the amount of credit, despite the area's favorable factors such as high population density, strong community spirit, and effective extension system. The financial sector is undergoing deep reforms. The former rural financial institution, FONADER, has been liquidated. A new institution "Cr6dit Agricole du Cameroun" (CAC) recently opened its first branch in Yaoundd, with four provincial branches planned in 1991, and the rest of the country to be covered a year later. CAC's branches will be based in the provincial capitals, with a minimum of staff. Credit will be provided against financial guaranties, and groups dispersed in rural areas are not expected to be the beneficiaries of CAC credit, given the high cost of administration and recovery. To ensure the full participation of rural groups in attaining the food security objective, a transitional program of technical and financial assistance is designed to improve group capacity in appraising and implementing micro- investments, and reconstituting the financial capital invested under the project. During the transitional program, groups will be trained and made financially responsible to be able to access formal financial institutions in a later stage. NGOs have succeeded in Cameroon to organize responsible informal groups in rural areas. 1.Les Groupes Agricoles au Cameroon". Etude prdliminaire & la mise en place d'un Fonds d'Investissement pour des Micro-Rdalisations Agricoles et Communautaires, Direction des Etudes et Projets, Ministbre de l'Agriculture, Mai 1989. II. Objective FIMAC will comprise two kinds of financings A. Financial assistance to self-help micro-projects of marginal groups to increase their food security status. This includes group investments in small equipment and infrastructure which contribute principally to communities' fopd elf-sufficincy. A parallel objective of this component is to improve the financial and technical manalement capacicy - rural groups. This will be done through (U) significant financial and labL - contribution from beneficiary groups, much more than what is presently required under similar projects in Cameroon, (ii) training sessions for groups in project management provided by the project staff, professional training institutes, and NGOs, (iii) obligation to reconstitute the financial capital in an account managed externally to the group structure (see sub. para. d on reconstitution procedures), with the risk of repossession in the case of non- compliance. B. Pilot Program of Decentralized Micro-Credits for cosmercial group projects. This includes provision of credit for commercial micro-projects with the purpose of increasing communities' monetary revenues. This program will be done on an experimental basis only in areas where NG0s already intervening in credit delivery operations are willing to participate. Training on credit management will be provided to beneficiary groups, directly through the project staff or indirectly through the NG0s. III. Description. The FIMAC component will finance investments made by marginal groups intended to improve primarily communities' food self-sufficiency and cash income. Significant cash and labor contribution is required on the part of groups. An agreement will be made with the beneficiary group, indicating the group's obligations, as well as the financing and procurement procedures of goods and services required for the micro-project in question. The agreement will include a repossession clause, as well as a rejection clause for future financing (sample agreement attached). FIMAC will also finance th.aining sessions for group leaders, the project's field staff, as well as staff of NG0s who sponsor the groups. A. Investments. 1. Selection of Groups. a. Identification of Marginal Groups Financing will be only made available to marginal groups. Groups will have to fill out a questionnaire on the status of their village and their members before Page 3 of 20 submitting an application for financial assistance. A copy of the questionnaire is attached to the annex. b. Location of Groups Financing will not be made available to groups located in or close to urban areas, as well as the North West Province, given the presence of similar programs. Only marginal areas, satisfying specific criteria included in the above questionnaire, will be eligible for financing. c. Size of Groups Group size should not exceed 20 members. In the case of infrastructure projects, benefitting an entire village, a larger group, such as the existing Development village committees, is also eligible for financing. d. Status of Groups Groups should be recognized by traditional and administrative authorities. Only groups sponsored and supervised by intermediary agencies, such as NG0s or local development companies, are eligible. e. Groups' Capacity (1) Past Experience of aroups: Beneficiaries should provide proof of having had at least one year of group production. Available financing will not exceed three times the turnover of the preceding year. Groups' past experience should be rated as successful by the sponsor, with the exception for proven cases of failure due to factors beyond control. (2) Group Contribution Groups should demonstrate their capacity by providing significant initial contribution. Group contribution represent the access cost to FIMAC funding. Contributions include: * Contribution in kind at least equal to 30Z of the total project cost. * Contribution in cash varies according to the type of investment: - cash provision equal to 25% of the amount made available under FIMAC for small tools and equipment for commercial and non-commercial projects. - cash provision equal to 20% of the amount provided under FIMAC for infrastructure projects. Cash contributions will be used fort . 10% will finance investments, based on suppliers' invoices already approved by the provincial commission (see para. D (2) on Organization and Management at the Provincial Level). Page 4 of 20 102, in the case of small equipment, and 5Z in the case of infrastructure projects, will be used for capital reconstitution. This sum will be deposited in an account, according to procedures described in para. d (1) (a) on reconstitution procedures. . 5Z will be used towards the working capital to operate and maintain investments under the project. 2. FIMAC Financing Terms . The maximum available financing under FIMAC will be CFAF 4,000,0000 (US$ 16,000 equivalent) per commercial project 2, and CFAF 500,000 (US$1,900 equivalent) per non-commercial project, with repayment period les than 4 years in both cases. Financing of commercial projects will be charged an interest rate not less than 15Z p.a. . The maximum FIMAC funding will be CFAF 6,000,000 (US$ 23,000 equivalent) per infrastructure project, with repayment period of not more than 10 years. 3. Type of Proiects a. Investments PIMAC will only finance investments m9ant to improve communities' food self- sufficiency and on a pilot basis, monetary income under the micro-credit schemes - small farm tools and equipment, with an average FIHAC financing amount of CFAF 300,000 (US$ 1,100 equivalent), and not to exceed CFAF 500,000 (US$ 1,900 equivalent). These includes small equipment for community fields, processing equipment for food and livestock products, tools and equipment for livestock p.oduction, fisheries, and beekeeping. Similarly, small tools and equipment will be financed through credits, for an average size of CPAF 2,000,000 (US$7,700 equivalent) and not to exceed CFAF 4,000,000 (US$16,000 equivalent). - * small-scale infrastructure projects with an average FMC financing amount of CFAF 5,000,000, (US$19,000 equivalent) not to exceed CFAF 6,000,000 (US$ 23,000 equivalent). These includes construction of village storage, small slaughter-houses, vaccinatinn stations, rural tracks, fish ponds, livestock watering points, small digs and irrigation networks, drainage of low-land areas. 2Commercial projects are cash generating activities and non-commercial projects are food self-sufficiency enhancing activities. Page 5 of 20 b. Profitability Criteria Departmental coordinators will appraise projects and their profitability, based on standard indicators for each type of investment established by staff at central and provincial levels. The analysis will indicate the extent to which benefits of the project accrue to beneficiaries' self-consumption. Projects will have to have a minimum 152 financial or economic rate of return, inzluding the cost of capital reconstitution. c. Activities not to be financed. FIMAC will not finance activities already financed by other projects. Social infrastructure projects are equally excluded. These include, chemical inputs, health centers, electrification projects, schools, roads, water pipes. d. Disbursement of Funds and Procurement of Goods (1) From the central level (Yaoundd) to provinces A special account for MINAGRI will be opened in a commercial bank in Yaound6, and project accounts in provincial branches of the same comercial bank or of its correspondent banks in the nine provinces involved. Signatories for provincial project accounts will be the provincial financial controller of the Ministry of Finance and the agricultural delegate, in his capacity as the secretary of the provincial FIMAC commission (para. D.2). Withdrawals from provincial project accounts will be made after Caisse Autonome d'Amortissement (CAA) authorizes transfer of funds from the special account to such accounts, upon receipt of approved statement of expenditures from provincial delegates through FIHMAC administration in Yaound4 (para. A.2.d.(2) below). Statement of expenditures will be supported by documented evidence, including pro-forma invoices from the selected supplier (para. A.2.d.(2) below). (2) From provinces to groups FIMAC will be essentially financing tools and equipment for micro-projects, as well as part of the training and supervision cost of groups by sponsors6 In practice, this will permit most disbursements directly to suppliers, against pro- forma invoices. Three Pro-forma invoices for goods from three different suppliers will be attached to the project application form submitted by the groups to provincial commissions. The provincial project administrator (DPA staff) wilX justify a recommended supplier to the provincial comission, based oa Bank procurement guidelines for prudent shopping. The project application will also contain the sponsor's bill for supervision and 502 of the training cost. Upon approval, statement of expenditures with documented evidence will be prepared and signed by the provincial delegates of HINAGRI and HINFI and sent to CAA for funds through DPA. The provincial project administrator will order payments, signed by the agricultural delegate, to supplier(s) and the sponsoring NGO, the latter as an advance for the training that will be provided, after notification on fund transfers by provincial bank. Payments will be made In person by the provincial project administrator to suppliers in the department, accompanied by a representative of the group and the sponsor. Upon receipt of Page 6 of 20 equipment, the departmental coordinator will sign an agreement with the group, stating group obligations in using the received material. Full payment for the training and supervision of sponsors will be made after completion of the training session by the sponsor, and upon receipt by the provincial comission of invoices, certified by the departmental coordinator. e. Reconstitution/Repayment Procedures. Based on existing experience in Cameroon, it is envisaged to have the reconstituted capital (or repaid capital with interest in the case of credits) rotate among groups, through a local organization external to the project, with enforcement power over groups. The local organization may be an association of groups, a working village development committee, an NGO, or a development agency sufficiently broad-based to cover several groups at a time. Departmental coordinators and provincial project administrators are to verify and confirm before-hand the capacity of the local organization (e.g. NGO) to enforce and follow-up groups' reconstitution obligations. The identified organization will be a party to the agreement signed by the group. The agreement will include the obligations of the local organization to enforce the reimbursement schedule under the capital reconstitution clause, and to rotate the reconstituted capital among different groups (attached sample agreement). (1) Procedures include: (a) Opening of a savii.gs account by the local organization in which the reconstituted funds will be deposited. The account will be operated on the basis of two signatures by the departmental coordinator of the FIMAC and the representative of the local organization. (b) Use of reconstituted capital: Funds cannot be used unless fully reconstituted. In the case of non-reconstitutiot, equipment financed by the FIAC will be repossessed. In the case of an incomplete reconstitution, or 6;ssolution of the local organization in charge of enforcing the reconstitution clause, provincial commissions of the project are solely authorized to decide on the use of funds already recovered, and equipment repossessed. (c) In the case of a complete recovery, the local organization can propose the allocation of funds to another project, for the same group or another group, after approval of the new project is obtained from the department#l coordinator, who will allow the release of funds. Obligation to capital reconstitution, as well as other obligations of the group are maintained, as per the agreement. In the case of no new investment proposals for the reconstituted funds, or rejection of investment pToposals by the departmental coordinators, provincial coMMissions may recuperate the funds for reallocation to other areas. (d) Control over the reconstituted capitals The departmental coordinator will follow the capital re constitution accounts in his department and will submit regular status reports to the provincial commission. ANNEX 2 Page 7 of it FTilAC SCHMI Chart ans Flow of Funds: Disbursements Administratio (First Cycle) Central Level Special Account DPAININAGRI (Yaound*) In Bank A 1/ JCaisse Automome d'Amortissement Provincial Level Project Account in Provincial Comission Bsrantches or Cerrespondent Banks of aak NINAGRI (secretarist) Departmental Level Suppliers Departmental Flw f uns,tI~Msan a nd Admininstrat ion Departmental Level sponger's savings V *cun~et iyLcl suple. .ieuimetSupplie@s anD.o ep ar1tetat TieaIng by ponsor R Coordinator -Group 1 * *** p s lb Flo of runds fo Reaitrament a 1 ndseiAm inapisation e uDiha nteseseeo t cycle evidce c ofplioaon.a inoiceg ver-orsIoieedadpo es by iffer nt Depparsanal deel at on oce fnsr'e lonal baosoot Seaisn of renceimaco from Los tcetraletaon o rinc rject depotm purhartor. ?gaininuppliers aeDpartn eners opspoaaionn ilt e Cseb 160.A00. ad KSSOO equlet. 1111 Aproviral byat es enntic S cord inaora spontor puhase rorrs tonruptie t o pojets ireep * ea****e** es* WRCK subsV euetes. le ***** Approjecsgntur Applcatep aten poredetran spavok re.3 trn supplier's aer equpmtebaLn teetsrosectsb Aoelce fraebueentet Page 8 of 20 B. Trainina and Supervision Training will focus on preparation and implementation of micro-projects, and will also include specialized technical training on production and processing activities financed by the FIMAC. Training will include regular sessions workshops, as well as short organized visits to technical centers. Training will be carried out by specialized training institutes, NGOs, and the field staff of technical ministries (MINAGRI, MINASCOF, MESIRES) depending on demand. Financing requests for training will be prepared and submitted by sponsors, who will be informed out of a menu of training options made available to them by the departmental coordinator. Financing requests will be accompanied with statement of projected expenses and documented evidence of expenditures, in accordance with FIMAC procedures. Requests will be examined and approved by the provincial commission. A maximum training allowance of CFAF 80,000 per micro-project has been included in the project costs. Groups will contribute to the costs of the training up to 50Z of the total cost. As an indication, on average, CFAF 4,000 per trainee will be paid by groups in regular sessions of a one-week period (average group size 10 to 15 members). The project will also finance the supervision cost for groups, which shall not exceed CFAF 80,000 per micro- project. C. Organization and Management 1. At the National Levels The Ministry of Agriculture, through ita Agricultural Projectr Division (Division des Projets Agricoles-DPA) will be the executing agency of FIMAC component. At the national level, the administration of FIMAC will involve: Direction and Institutional support: ensuring the coordination of the component among ministries and NGOs, directing the activities of staff at the national, provincial and departmental levels, and supporting the organization and operation of provincial commissions. Management: managing project staff at all levels, controlling their operating expenses, making funds available to provincial project administrators, and controlling financing made available to groups. Staff at the national level will make ex-post controls on capital reconstitution and repayment obligations of groups. Information gathered on beneficiary groups, including financial assistance provided to groups, will be centralized in a computerized data bank for purposes of continuous monitoring. Supervision of provincial project administrators (analysts) and departmental coordinators: supervising of field staff in their activities of finalizing project documents -submitted by groups and- evaluation of applications, and follow-up of project execution and capital recovery. Information, Sensitization, and Trainings organizing on a regular basis information and training sessions for field staff as well as staff of NGOs in charge of supervising groups; examining existing training sessions for groups and making recommendations to provincial commissions on the most Page 9 of 20 appropriate training programs; supervising work of provincial units' trainers. Project administration at the national level will comprise: 1 Project Director-the Head of the DPA 1 assistant Directors an agro-economist from the DPA, supported by 1 long-term consultant on micro-projects. 1 administrator and financial controllers a long term consultant in charge of administrative and financial management, supported by 1 accountant from MINAGRI or from outside the ministry. 1 manager in charge of supervising the provincial project administrators (analysts) and the departmental coordinators: staff from DPA 2 managers in charge of supervising and organizing the training component: staff from MINAGRI 2 secretaries and 3 drivers: staff from MINAGRI 2. At the Provincial Level. Decisions on Financing of Projects: A provincial commission, chaired by the Governor or his representative, and comprised of provincial delegates from MINAGRI, Ministry of Women's Affairs, Ministry of Livestock, Ministry of Plan, Ministry of Finance, representatives of NG0s and financial intermediaries active in the province. The secretarial tasks of the commission will be assumed by the delegate from the Ministry of Agriculture, assisted by the field project administrators. The commission's role will be to evaluate and approve applications for financing of micro-projects and training sessions. In the event approval is granted on applications which do not conform to FIMAC guidelines, administrators at the central level may cancel such decisions. Support to sponsoring asencies and trainers: at the provincial level, and under the authority of the provincial delegate of Agriculture, the administration of the project will comprise: 1 project administrator (analyst) in charge oft - managing provincial level administration tasks for FIMACI - controlling operating expenses at the provincial level and those of the departmental coordinators, under the close supervision of national level staff; - supervising the departmental coordinators, especially in their project preparation tasks; - making financing available to projects approved by the provincial commission and providing the financial control over disbursed funds; - following-up on the performance of groups which have been financed, including their reconstitution and repayment obligations. This information will be regularly communicated to national level administration. and 1 trainer from MINAGRI in charge of: - providing regular information programs for field staff and staff from NGOs in charge of supervising groups; - making detailed evaluation of training sessions and making recommendations to provincial commissions on the appropriate training programs. 3. At the Departmental Level: A departmental coordinator will be appointed on a full time basis from among the local staff of MIKAGRI. The coordinator will be working under the authority of the Departmental Delegate of MIAGRI, and the supervision control of the provincial and national administration staff. Departmental coordinators will assist the sponsoring agencies in preparing applications. They will follow-up on fund disbursements, capital reconstitution and repayment schedules, and group performance. They will co-sign on transactions to be made out of the reconstitution account, and may authorize sponsors to re-use reconstituted funds according to FIMAC guidelines. D. Implementation. The program will finance on a gradual basis micro-projects in 4 provinces during the first year of the project, and in the 9 provinces as of the second year of the project. The overall financing available for this component will be distributed as followst - 55 of funds will be allocated to small equipment and tools for micro-projects -not to exceed a maximum amount of funding of CEAP 500,000 per project, designed to increase groups' food self- sufficiency- and micro-credits for commercial cash-generating activities -not to exceed maximum loan amount of CEAF 4,000,000. - 302 of funds will be allocated to infrastructure projects, not to exceed a maximum FIMAC funding of CFAF 6,000,000 per project. * 152 of funds will be allocated to training expenses of beneficiary groups. FIMAC funds will be distributed among provinces according to the size of their agricultural population. The following table shows the number of projects in all categories over the 5 years life time of the project. Page 11 of 20 NUMBER of PROJECTS PYl PY2 PY3 PY4 PY5 TOTAL Small tools and Equipment 99 244 330 493 605 1771 Infrastructure Projects 8 18 20 25 25 96 Total 107 262 350 518 630 1867 Page 12 of 20 Indicators on Standard of Living of Ara and Communities Base Criteria points (out of 20) X Coefficients a A. Area Situation: A.1 Distance from a small town (more than 50O0 inhabitants): 1 - **ss than 6 Kas:............. 20 - between 5 and 19 kms:.........................1 - between 10 and 20 kee:.............................10 * between 28 and 30 kms:..............................S - more than 30 ko:........................ .......0 A.2 Distance from a large town (more than 20,000 inhabitants) with public services (schools, health services, market centers): 1 - less than 20 kms:..... ........................20 - between 20 and 46 kos:.........................15 - between 40 and 60 ks: .....................10 - between 60 and O kes:.........................5 - more than as ke:..............................6 A.8 Access to closest small town: 1 - paved road: ..................................20 - decent road, passable all year round: ............15 - road passable in dry season:....................10 - road with difficult passage even in dry season:.....S - no driveway:..................................0 A.4 Water Supply in village: 1 - water obtained from water fountains:................. .........20 - water obtained from wells (boreholes): ........................1s - water obtained from springs, with sufficient flow all year round:.10 - water obtained from springs, with Insufficient flow:...............S - poor water supply:. .......................................... A.5 Electricity and Telephone Availability in village: 1 - Available electric and telephone lines:............20 - Available electric or telephone lines:.............15 - Available electricity from private generators:.....10 - no electricity, available telephone lines at 10 km*:5 - no electricity and no telephone lines at 10 kms:....0 A.8 Housing: 1 - 50% (or more) of houses in concrete and Iron sheet roof:......................20 - 6% (or more) of houses with different construction materials and Iron sheet roof:.16 - 30 to 40X of houses with different construction materials and Iron sheet root:.....10 - 10 to 20% of houses with different construction materials and Iron sheet rooft:......S - 90 to 1660 of houses with precarious materials and no Iron shoot roof:..............0 A.7 Schools and Health Centers: I - primary schooling and health center (with nurse):......... - primary schooling and health center without nurse:....... ....................1i (incomplete primary schooling and health center with nurse) - incomplete schooling and health center with no nurse:..........................1 - incomplete schooling and no health center:..................................... - no schooling and no health center:.......................................... 0 A.$ Number of Cars: - ore than 10 cars (or pick-ups) per 10f0 Inhab.:...20 - beween 6 and 10 cars per 16ff inhab.:...........16 - between 0 and 5 cars per 1000 inhab.:............1 - no cars in village, available care at - 10 kas:.....S - no cars in village or at 10 kas of village:.........0 A.9 Facilities available In village, small market centers (shops, bars): 1 - more than 10 trading centers per 1000 inhab.:.....20 - between 5 and 10 centers per 1600 inhab.:........1 - between 0 and 6 centers per 10M inhab.:............10 Pagp 13 of 20 - no center in village, available center at 1 ka...5 - no center in village, no center at 1o kmas..........6 A.10 Number of radios: 1 - more than 3 radios per 190 inhab.:...............29 - between 29 and 38 radios per 1999 Inhab.:..........15 - between 10 and 20 radios per 1000 inhab.:..........1 - between 5 and 10 radios per 1000 inhab.:............5 - less than 5 radios per 1M inhab.:.................0 A.11 Isolation of village (presence of an extension agent In village)s - presence of a high level agricultural extension:........... *presence of a ext*nsion agen:.....t.......................15 - presence of an extension agent at 10 kas of village:...........1t - presence of an extension agent at 2 kme of village:.........S * presence of an extension agent at more than 20 km of village:....9 A.12 Extent of cash crop production (indicater to be adapted to the provinee, depending e* the kind of crop): 2 - more than....kgs of....per 1999 inhab.:..............26 - between ......kgo and ....kgs....per 1990 inhab.:....15 - between ......kgs and ....kgo....per 199 Inhab.:....10 - between ......kgs and ....kgs....per 100 Inhab.:.....5 - less than......kgs and ....kgs....per 199M inhab.:....9 A.18 Extent of secondary cash crop production: 2 - more than....kgs of....per 10Inhob.:............29 - between ......kgs and ....kgs....per 19 inhob.:....15 - between ......kgs and ....kgs....per 1999 Inhob.:....10 - between ......kgs and ....kgs....per 1999 Inhob. 5 - less then......kgs and ....kgo....per 100 Whhab.:....0 A.14 Income level of area (estimate of collected taxes per number of inhabitant; to be adepted to the province): 3 - more than ..... F d collected per 1999 inhab.:.......20 - between......and ....F d per 1Wg inhab.:...........15 - between .....and ....F d per log inhab.:...........10 - between .....and ....F d per lo0 inhab.:..........5 - less then....F d collected per 1W inhab.:...........8 A.15 External Assistance from development projects covering entire village in past five years: (subsidies for construction of schools, health centers, social centers, bridges, roads, shope, cooperatives, markets, electrification): 1 - 4 projects or more, financed in past 6 years:........20 - 8 projects financed in past 5 years:............s - 2 pro4*cts financed in past 6 yeares.................10 - 1 project financed in post 5 years:...................S - no development project in past 5 years:...............0 A.16 External financial assistance on development projects covering sections of local populatioe In the past five years (number of loans or financial assistance for Income-generating activities): I - 10 projects per log inhab or more in past 5 years:....20 - 7 to 9 projects per 100 inhab or more In past 6 years:18 - 4 to 6 projects per 1W0g inhab or more in past 5 years:19 - 2 to 5 projects per 1W00 inhab or more in past 5 years:.5 - 8 to 1 project per 10 inhab or more in past 5 years:..@ Final Points for Area:.......(out of 400 points)............... Indicative Interpretation - between 300 and 400 points: well-off area relative to the province - between 200 and S9 points: relatively poor area - between 1ff and 200 points: fairly poor area l loe than 100 points....: very poor area Indicators on Standard of Living of Group Members Page 14 of 20 lse Criteria points (out of 20) X Coefficients a 3.1 Loss of Employment in the past two years (proof of employment provided through copy of wage stub) 5 - l*e than 185 of members have lost employment in last 2 years:.....20 - 19 to 20 of members lost employment in 2 years:...................16 - 20 to 38X of members lost employment in 2 years:...................1I - 30 to 45 of members lost employment in 2 years:................... S - more than S1 members lost employment in 2 years:...................S 8.2 Level of Female Participation in Group: 4 - 11 of female: ....................................29 - 0 to 391 of female:................... .............s - 8o to sox of female:...* *.......................... 1 - O to 901 of female:........................ - more than 991 of female:............................9 B.3 Level of Youth Participation in Group: * O% of youth :...........................................29 -9 to 39% of youth: .....................................15 - 8o to 69 of youth: ...............................1 - 69 to 90 of youth: ................................. * more than 901 of youth: .............................0 0.4 Members principal occupation (X of members with only agriculture incomes agriculture, Ivestock, fisheries): & - 15 to 295 have agriculture and non-agriculture income:..26 - 19 to 165 have agriculture and non-agriculture income:..1S - 5 to 10 have agriculture and non-agriculture income:...1 - 1 to SX have agriculture and non-agriculture income:.....5 - 199% have only agriculture income:.......................9 Note: If more then 29X of members have agriculture and non-agriculture Income, the group Is me loeer eligible for FIMAC financing. 8.6 Average annual tax payments by members, relative to vi lage averages In the Province (everages .....F/year/family. (This average should be specified by Province, after surveying villages. Members' tax level will be determined from following questions): 2 - 16 to 29X of members pay more than average:.............26 - 19 to 161 of members pay more than average:.............15 - 6 to 1O of members pay more than average:.............19 - 1 to 5 of members pay more than average:...............S - 1661 of members pay lose than average:...................8 Note: If more then 2M1 of members pay more than average the group ts no longer eligible for FIMAC financing. 8.0 Education level of members relative to the provincial average to be defined. ( This level is to be determined after surveying and expressed in a simple way.): 2 - 15 to 20X of embers above average:.....................20 - 1 to 151 of *embers above average:.....................is - 6 to 19 of members above average...................1 - 1 to 61 of members above average:.....................6 - 199X of members below average: .......................9 B.? Level of ext*rnal assistance given to group (total in cash and kind): - more than 6,010,900 CFA:................................20 - between 2,000,9 and 4,,00000 CFA:,.................16 - between 5ee,900 and 2,900,000 CFA:......................16 - less then 50e,999 CFA:.............................. - no external assistance: ............................. FINAL POINTS:.................(out of 2e points)....... ............................................. ........................... Indicative Interpretation: - between 15 and 29: members are well-off relative to the province rage 13 or zu - between 10 and 1S relatively poor area - between 6 and 1e : fairly poor area - less than 5: very poor area Total Grade (out of 600) for Area and Group Membere=A+8 Indicative Interpretation: - between 460 and Off: area and group members are well-off relative to the province - between S0e and 450: relatively poor area - between 166 and 300 : fairly poor area - less than 150: very poor area Page 16 of 20 FIMAC Scheme Agriculture Projects DIVISION (OPA) Ministry of Agriculture AGREEMENT FOR PROVISION OF EQUIPMENT TO OROUPs UNDER SHORT TERM MICRO-PROJECT Groups Village sub-detriot: District: Province: Application Number Date and Signature of Agreement BKWEENs The MIMAC project, hereinafter cal led NFIMAC', represented by the Provincial Deleate from Ministry of Agriculture in .........Province, acting as Division Chief Agriculture Projects Division in Ministry of Agriculture, Director of FIMAC on the one hand. AND the group............ In village.......... sub-district......, department.......... rovince......., hereinafter called the 'group', represented by its President and Treasurer, on the other hand, AND the sponsoring agecy of the group,.......................*.............. located at............. hereinafter called the OsponsorO, represented by............. on the other hand, the parties hereto agree as follows ARTICLE 1: Pr vi 1 at 1 nder FIMAC Fimac wll provide the group theequipment, described In article a. uner cditione iat i *t e present agreement. The equipment shall remain the property of FIMAC until such tie as all conditions of the present agreement are m*t. ARTICLE ts Acceptnce by the Group The group acknowledges roceipt of the equipment, described in article 3, and agre* te its proper use as defined per conditions included in this agreement. ARTICLE 8: D*eoripton and Value of Equlpents Equipment financed and provided by FIMAC include (type, specivications, brand, serial number, purchase price) ................................................... ............. ....................................... .. . . . . . . Total value of the equipment ies............................................. ARTICLE 4: Conditions for use of equloeont by the group The group commites Itelf to use and maintain sld equipment under its control; the group deignoteo a mein user of the eqtipment, and one or two operators. It is strictly forbidden to: * use the equipment without the permission from the President of the group. * use the equipment without paying a user fee (to be determined by the group) to the group's account. * use the equipment in the absence of one of Ito designated operators. ARTICLE 5: Reporting and Accounting The group ie to maintain simple written records and statement of aII expenses and receIpts resulting from the use of the equipment. The group is to submit these records to Its sponsor or FIMAC administrators for their control. ARTICLE 6: Reconstitution and Repayment of capital financed by FIMAC sa: Princiga. The group is obligated to reconstitute the entire value of the equipment, defid in article 8, with interest whenever applicable, according to the schedule defined in paragraph Sc. Sb: Capital Reconstitution/Repayment Account The group Is obligated to reconstitute capital in the savings account of (name, account number, name of institution, address): .......... : .................. ................ **** ............................... Sai acoun lealradyopeed nde th sinatre f (eesand function) ............................................ ............................. ................. ....... o: ReconstitutionfRepayment Schedule The group has already made a deposit in the said account. The account has prosently a credit balance of (amount)..........................FCFA. The group will make payments according to the following Installment plan for the entire value of the equipment received$ *peolt Orders Due Dat* Amount Cumulative Amount (Initial deposit in account) * ........... ................. -Second Installment .......... ........... -Third Installment .......... ........ -Fourth Instlileant .......... .....** * . . -Fifth Installment .......... ........... -Sixth Installment ......... ........... -Seventh Intallment .......... ........... 41ghth Installment .......... .......................... -Tinth Inetallamnt .......... ........... -Tenth Installeent ........ ..... TOTAL VALUE TO B RECONSTITUTED: . The group will repay the above entire amount through regular instolleente. Interest earned on deposite will accrue to the account, but will not be deducted free amount to be receastituted. 6d. B.nefits from Interest earned on the account. Intereest earned on the account wlIt be retained in te account. The group shall not benefit from Interest earned on the accout until such tim* as :- reconstitution is completed, - or In the case of a transfer, equipment Is repossessed. If the group do** not respect the above repayment schedule, aII interest earned on the account will be retaind and used towards payments of installments, with no rights for the group. ARTICLE 7: Procedures again*t Dolinauency 7o: - if the group doe* not make use of the equipment according to condtions article 4, - or If the group does not maintain adequate records for use of equipment, as per article 5, - or if the group does not make payments on Installments, as per article 8, FIMAC shall use following procedures 76: Evaluation of the case with the spnsor FIMAC will send an agent to evaluate the situation with a representative of the sponsor. The group's records and finances will be jointly examined. Solutions will be proposed to rectify the situation. Upon return, the FIMAC agent shall make a report, including proposed solutions and the possibility of repossessing the equipment, also Indicatingi - a proposal for transfer of equipment to a second group - a fair assessment of the salvage value of the equipment - a statement on the reconstitution account, Indicating amounts already paid and Interest earned. The FIAC agent shall send the report to the Provincial Delegate of MINAGRI through the DPA staff to the province for study by the provincial commission. If judged necessary, the representative of the sponsor would make a **parate report to the provincial commission. 7c: Dociton to Repses** the equipment Based on the report, the provincial commission my decide te withdraw and transfer the equipment to a second group. Under such ci rcuetances, payments made will be retained to complete reconstitution. The secend group will continue payments on Instalmentse. However, if reconstituted emovant exceed the equipment depreciation amount, the provincial commission my decide to reimburse the firest group for part of the reconstituted amount. 7d: The aroup0s *reem*nt to repossession The group shall not object in any way to the repossession or the equipment and its transfer to another group in the case of delinquency. ARTICLE 8: Guarant*** kx the Group The group agress to provide the following property belonging to the group aI collatral (T d, construction, vehicle, heavy equipment): - in case of delinquency and non-respect of the repayment schedule, defined in paragraph Page 19 of 20 Oc, and if value of seized equipment does not compensate for the outstanding installment payments, the group authorizes seizure and sale of following goods by FIMAC to make up for the balance: ..... ........................................................................................ ............................................................................................................ ARTICLE 9: Limits on the Group's Liablitles In the case of delinquency, FIMAC can only intervene in the following areas: - It cn repossess the equipment defined In article 3 - It can **Ie and sell property defined as collateral In article 8 It cannot under any circumstance: - force the group to pay for insttliments from any source of income other than that derived from fees collected from the use of equipment; - seize any individual property of members; * force individual members to pay for due Installments; - seize any property of the group, other than those defined In article S. ARTICLE 10: Use of Reconstituted Capital 10a: Control FIMAC delegates the responsibility to use the reconstituted capital with the UparGental coordinator as long as said capital is to be used under the control of the some sponsor. The departmental coordinator represents the provincial delege of Agriculture and the Chief of the Agriculture Projects Division (DPA), in his capacity as director of FIMAC, for the tasks of control and use of capital re"onstltution. 14b: Reallocation of Capital Reconstituted capital can be used to finance another micro- project by a different group in accordance with FIMAC guidelines. The sponsor should present an application for another group to the ZhIef DEVCOM in the department. The chief will notify and authorize the departmental coordinator for reallocation of funds to another group, superv.oed by the same sponsor. Another agreement, in accordance with FIMAC guidelines, will be made with the second group. The present agreement will be signed by the Departmental Section Chief of Community Development DEVCOM, representing FIMAC. 10c: Case of Absence of Other E.igible Groups In the event that the Section Chief of DEVCOM deems that no other group supervised by the sponsor are eligible for financing, he shall notify the provincial commission. This authority is solely authorized to withdraw funds from the sponsor's reconstitution account for reallocation purposes to other groups supervised by different sponsors. ARTICLE 11: Sponsor's Responsibilities The sponsor is obligated to: - assist the group in the proper usage of the equipment - ensure that maintenance for the equipment is provided and the group's control over its usage is adequate and conforms with article 4 - assist the group in maintaining records - assist the group to make sufficient monetary provisions for payment of installments - monitor that installments are paid according to schedule - Inform Departmental Section Chief of DEVCOM of any missed payments or non-respect of arjicles of present agreement or any difficulty in the proper exploitation of equipment or reconstitution of capital. Location ................ Date . Provincial Delegate President of Group Sponsor of Agriculture (name, first name, "Read and approved*) (name of sponsor, name of representative) Two Members of Group's Committee (name, first name, Read and approved') VILLAGE STORAGE Description 1. In accordance with Government policy to disengage from commercial and directly productive activities, it is proposed to encourage the establishment of grain stores managed by groups of producers in villages. The project would finance a pilot program in the Extreme North province for 200 groups of 15 - 20 members. Average capacity of the stores would be 40 tons. 2. In addition to support provided through the FINAC program for construction of the store, the groups would receive rations and equipment from WP as well as an initial stock of 20 tons of grain which would serve as working capital. It is envisaged that the groups would gradually build up their operations to handle 40 tons. Extension services would provide assistance on storage techniques while the groups would receive training in stock management from NG0s in collaboration with staff from the Community Development Directorate of MINAGRI. 3. The component has been proposed on a pilot scale because of the management difficulties inherent in communal storage operations. Precautions taken to minimize the risk of failure include:the attention given to training and the prospects for close follow-up by involved NG0s as well as location of the pilot program in the Far North, where farmers have the greatest incentive to undertake such operations to assure their food supply. Costs 4. Total costs of the component, including contingencies, amount to CFAF 825 million (about US$ 2 million) of which over 402 would be for grain to be financed in kind by WFP. Organization and Management 5. The Provincial Delegate for Agriculture in the Extreme North would be responsible for supervising the program, which would be carried out according to procedures established for FIMAC projects. An agreement would be signed with WFP with respect to the assistance to be provided by them which would be coordinatea by the local WFP Committee. Extension and training would be provided as described above. REPUBLIC OF CAMEROON FOOD SECURITY PROJECT Pest Control Program 1. Backaround. More than 1,200,000 hectares of crops in Cameroon are threatened by locusts. Although, in an international context, the country is not considered in the front line for locust attacks, the problem is becoming endemic in the two most northerly Provinces where about 702 of the threatened area is located. In the absence of appropriate prevention and control measures, there is potential for 202 to 702 of crops losses in an area where food security is marginal due to climatic factors. Over the past 5 years only about 25% of the area infected has been treated. 2. The Government has established a structure for combatting locusts which includes inter alia an early warning system in the north of the country. However, Government services suffer from a lack of means to carry out effective campaigns and is usually obliged to fall back on appeals for emergency assistance from overseas. Despite international efforts to organize locust control at the regional level (ECLO-FAO, ECOFORCE-France), response is inadequate. To date the Government has relied on ground treatment by the local plant protection brigades of the Ministry of Agriculture, and aerial spraying by the Aerial Protection Control Unit (APCU) located in the North. Due to the current financial constraints, both the plant protection brigades and APCU suffer from a lack of logistical support. obsolete vehicles and equipment, and in the case of the former, forced staff reductions severely limits Government's capacity to undertake ground treatments. 3. While FA0 has been active in the annual program, providing assistance in treatment and training, Cameroon's anti-locust program needs a more systematic approach in order to avoid the wholesale destruction of crops which occurs when preventive measures are neglected. The rural population in threatened areas needs more training to undertake preventive and remedial measures. While the intervention capacity of local plant protection brigades needs to be enhanced, the projected cost (US$ 6.0 million equivalent) of upgrading the service was considered too costly at this time. As the APCU covers some 652 of the area treated, against about 35Z by the plant protection brigades, the Government opted for financing aerial treatments as the most economic mans of addressing the problem in the short-term. The projected income statement for APCU for FY92 (expected to remain at similar levels thereafter), demonstrates APCU's capacity to generate revenues sufficient to replace equipment and provide operating costs to cover its commercial activities, leaving a net profit which can be used to defray Government's recurrent cost of anti-locust activities representing about 201 of the totals (CFAF) Income Government (Anti-locust campaign) 160,000.000 (Village Treatments) 25,000,000 Commercial Activities 175,000,000 360,000,000 Expenses Fuel 74,300,000 Spare Parts 13,500,000 Aircraft Servicing 31,200.000 Insurance 30.000,000 Other Overhead 96,000,000 Depreciation 90,650,000 235,650,000 Net Profit 124,350,000 4. Objective. The objective of the medium-term program would be to assist the Government formulate a sustainable crop protection strategy, drawing on. minimum support from the public sector and involving as much as possible local communities in preventive and protective measures. The optimal strategy would be to provide the utmost protection to plants when they are most vulnerabLe to attack and to destroy the maximum amount of locusts when they are most defenseless (although provision should also be made for emergency treatment of unpredictable attacks by adult evarms). 5. Description. Under the proposed project a study will be done to evaluate the Crop Protection Services of the Agriculture Ministry, especially its phytosanitary brigades in the region, define the level of participation which could be expected from the local population as well as the logistical needs against locust attack in the northern Provinces. Based on the study, the Bank would assist the Government in mobilising and coordinating donors' assistance (materials and equipment for MINAGRI and farmers, chemical inputs) for this program. 6. As more than half the treatment is done by air when the intervention capacity of ground forces are surpassed, the project would support APCU in both survey and treatment flights, through the provision of new transport and z.pairs to existing aircraft, equipment and spare parts, training and operating costs. A recent study undertaken by the Ministry of Agriculture projects that APCU can generate sufficient funds through its cocmercial activities to replace equipment and cover operating costs, and contribute 20Z to the recurrent cost of the Government's anti-locust program in the North. Two cropduster aircraft at a cost of about US$300,000 each are included under Page 3 of 3 the proposed project, as purchase is more economical than leasing. 7. Costs. The total cost of the component, including contingencies, would be CFAF 1297 million (approximately US$ 5.4 million) as follows: Bank Govt. APCU Total Vehicles & Equipment 2.11 2.11 Training 0.20 0.20 Operating Costs 1.76 1.37 3.14 Total 2.31 1.76 1.37 5.44 8. Orzanization and Manazement. APCU would carry out survey and treatment flights as requested by the Plant Protection Service, supported by the FAO annual training program. MINAGRI would be responsible for undertaking the a study to determine the costleffectiveness of the Crop Protection Service and the possibility of farmer participation in crop protection (the cost of which is included under the MINAGRI components int he summary table in Annex 7. p. 2). 9. Benefits. The Locust Control Program would significantly improve food security in one of the most vulnerable regions of Cameroon by reducing the risk of crop destruction by locust swarms. Preventive action and timely treatment will result in protection against losses. REPUBLIC OF CAMEROON FOOD SECURITY PROJECT Early Warning and Market Information System Description 1. The information system would need to provide for the collection, analysis, summary and diffusion of data on variables considered relevant to the monitoring of food security and markets. At present, certain of these data are collected unsystematically by various Government services. Processing is neither timely, nor directed to the requirements of specific end-users. Under the project, relevant activities would be streamlined and coordinated by a single Government department. The information to be provided would include: - forecasts of foodcrop harvests and precise indication of surplus and deficit areas; - regular reports on important provincial markets (prices of basic foodstuffs, sources of supply of local produce, presence of imports and/or produce destined for export, volumes traded and merchants' stocks, qualitative information on supply and demand); and - reports on the food security situation in high risk areas. Specifically, the output of the information system would be: - quarterly bulletins and an annual report to be prepared by the central unit for diffusion to Government planners. These would comprise: - an analysis of the cropping season based on agrometeorological indicators (rainfall and its distribution in relation to crops planted) and production indicators (state of crop development, areas sown, availability of inputs, projected yields); - an analysis of a sample of agricultural markets with respect to prices, volumes traded, stocks, exports and imports; - a qualitative note on high-risk areas (particularly the North and outskirts of urban areas) with respect to the nutritional status of the population. - regular weekly or bi-veekly radio programs at the provincial level covering agricultural markets. These would include information on prices, stocks and volumes traded in each market. 2. The project would support the establishment and operation of the information system over a period of three years. Specifically the support would take the form of: - technical assistance consisting of a Chief Technical Advisor with experience of Early Warning Systems, who would help to set up the system over a period of two years, and specialized consultancies as required; - equipment for carrying out the necessary surveys including an allowance for renewal of existing vehicles and their operating expenses, office equipment and expenses related to the questionnaires and radio broadcasts; and - training of enumerators and MIHAGRI personnel 3. It is envisaged that by the third year local personnel would be able to take full responsibility for operation of the Early Warning and Harket Information System and no further technical assistance would be required. However, budgetary provision would be required after the third year to permit continuation of operations. Costs 4. Total costs of the component, including contingencies, amount to CFAF 344 million (approximately US $ 1.3 million). Ornanisation and Hananement 5. Effective organization and management is crucial to the success of the Early Warning and Irformation System. The objective would be to make better use of available resources by relying on existing statistical services to collect, process and diffuse the information required under the new system. At present these services are inefficient owing to: - the absence of an overall strategy defining information required and the use to which it would be put and allocating responsibilities to the different services; - lack of coimunication between different ministries and even between services within the same ministry, aggravated by the absence of any coordinating structure, leading to duplication of activities; - shortage of qualified staff, particularly with respect to evaluation of nutritional issuesi and - inadequate and/or inappropriate data processing facilities. 6. Following review of the various statistical services, it is recommended that the Direction de la Planification Agricole (DEAPA) of MINAGRI be put in charge of the Early Warning and Market Information System and manage the Central Coordinating Unit. The DEAPA is already responsible for producing information on agricultural production and producer prices and has enumerators in the field throughout the country as well as qualified staff capable of processing and analysing the data collected. 11 7. In addition to the production data already collected, DRAPA would obtain information on agricultural markets using its field personnel and ensure the provision of specific data from other sources as required. The Meteorological Service would supply climatic and rainfall data, the Ministry of Industry and Commerce (MINDIC) trade and stock data, and other organisations, such as the parastatal development agencies and moos, information on nutritional aspects. All data from other sources would be forwarded to the Central Coordinating Unit at DEAPA for processing, synthesis and subsequent diffusion. 8. The Coordinating Unit would be staffed with four existing personnel namely, an agricultural economist, a statistician and two research assistants. The technical advisor and consultants would work with this team. The Unit would establish the work plans of the different entities involved in the Information System and ensure respect of deadlines for delivery and publication of data. It would be responsible for supervising operations. 9. With guidance from the Central Coordinating Unit, field personnel would be responsible fors - collecting basic data (agricultural production, market information, qualitative assessments of the food situation); - making a brief commentary and forwarding both by telex to the Coordinating Unit at regular intervals; and - producing radio programs to transmit market information. These would briefly announce price trends of major products and coment on the markets (sources of supply, number of traders, volumes traded, stocks...). The programs would be produced at the provincial level and would require some local capacity for data analysis and program presentation. 1/ DEAPA has benefitted from substantial assistance from USAID under the Agricultural Management and Planning Project (AMP), which is due to be extended to cover information on the livestock sector. Primary reliance on DIAPA Implies that additional expenditure necessary to operate the Information System will be minimized. Page 1 of 2 REPUBLIC OF CAMEROON FOOD SECURITY PROJECT Market Infrastructure 1. The Government's new policy of delegating to municipalities the responsibility for providing market infrastructure, from their own resources or from commercial loans which they would then repay from proceeds collected from market users, highlights the need both for economical but functional structures and for access to credit for the construction of market infrastructure. This component has been designed to respond to that need. 2. The project would provide a credit line of CFAF 1 billion to finance market structures. While this falls significantly short of demand, it should be sufficient to finance between 30-40 markets. This would provide a useful supplement to funds available for income-earning municipal projects under the Second Urban Project. Funding would also be provided for informing municipalities of the opportunities available and for assisting them both in the preparation of requests for financing and in supervising construction works. Costs 3. Total cost of the component, including contingencies, woul' be CFAF CFAF 1.5 billion (about US $ 5.8 million) of which 30Z would be the contribution of the municipalities themselves in the form of cash as well as site access and services. Sub-projects will not exceed US$ 300,000 per project, with Bank's prior approval required on sub-projects beyond US$150,000. An amount of US$ 0.4 million will be provided for training. organization and Management 4. The project would follow the institutional arrangements adopted under the Second Urban Project for financing municipal projects, channelling the funds through the Credit Foncier do Cameroun (CFC). CFC is mandated to promote housing, and funding of municipal projects is considered a natural extension of this mandate. The CFC is deemed the most appropriate institution to undertake this role as commercial banks are neither in a position nor willing to lend to communes, while the agency specialized in municipal finance (FEICOM) has no experience of providing credit as opposed to grants and is, in any case, considered not adequately staffed and experienced and unable to function as a viable financial institution. 5. Although CFC would have overall responsibility for the component, representatives of the Ministry of Territorial Administration (MINAT) would participate with CFC in the technical evaluation of sub-projects. CFC's loan Committee would make the financial and economic evaluation of sub-projects, and make recommendations to the Board of CFC with respect to approval of financing. Specific responsibilities for project approval would be as follows: CFCs - management of the line of credit; and . assessment and final decision as to eligibility for funding in accordance with CFC loan regulations and with the specific criteria established for financing market infrastructure projects (see below). MINAT: - decision as to compliance of request for funding with administrative regulations; and - participation in assessment of eligibility for funding. 6. Funds would be on-lent from Government to CFC at an interest rate at least equal to the Bank lending rate, which would then be passed on to the municipalities with a margin, to be determined by CFC, for a period of eight years. The foreign exchange risk will be assumed by the Government. Sub- projects above US$150,000 would be sent to IBRD for prior approval. Conditions for Financing Market Infrastructure Projects 7. In order to meet the objective of economical development of market infrastructure it is important to establish a generally applicable framework, describing the conditions to benefit from foreign financing. This would include: - the cost range acceptable for financing, not to exceed US$ 300,000; - viability criteria, such as a minimum economic rate of return of 15?; - definition of municipalities' responsibility for provision of site access, water and (where applicable) electricity, their role in management, maintenance. - financial forecasts of municipalities' expenditures and receipts, their financing plan, including norms with respect to constitution of initial working capital, and constitution of municipalities' budget, incorporating provisions for debt service payments; 8. Loan agreements to be signed between CFC and the borrowing municipalities will incorporate the above information, as well as the disbursement, procurement, and repayment procedures, and the right and obligations of both parties. AEMU Page 1 of 4 REPUBLIC OF CAMEROON FOOD SECURITY PROJECT Nutrition Education Pilot Component Backaround and Sumary 1. Malnutrition is a significant problem in Cameroon; one which merits attention under a food security intervention, if the food security effort is to have the desired development effect -- i.e., improved labor productivity, declines in disease vulnerability and infant and child mortality, and improvements in children's ability to learn. Rates of malnutrition have not been adequately monitored in the country, therefore up-to-date statistics are not available. A national survey conducted in 1978 showed rates of chronic malnutrition, as measured by height-for-age ranging from 20% to 30Z. In the decade that followed that survey. indications have been that malnutrition has not only not improved, but that in many areas it has deteriorated further. 2. Within the context of food security the most important determinants of malnutrition are low socio-economic status associated with inadequate access to food, seasonal food shortages and inappropriate infant and child feeding and maternal dietary practices. In view of the high ratio of food self-sufficiency (96%) in Cameroon, improving household access to and availability of food would require an emphasis on improvements in food distribution and household purchasing power. Nutrition education has a role to play in effecting changes in feeding and dietary practices. 3. The nutrition component of the project is designed to broaden the development impact of the micro-projects component by effecting changes in practices to ensure that increased income and access to food will be used in ways which improve nutrition. Even though no formal link has yet been established with the micro-investment component of the proposed Food Security Project, an effort would be made during implementation to target same beneficiary groups, particularly women's groups, under both components. Activities supported under the project includes in-depth qualitative research and analysis of child feeding and maternal dietary practices; formulation of an education strategy; materials development and testing; training of the technical ministries field staff in the above activities; pilot program implementation in several departments of the three provinces with the highest rates of malnutrition; and evaluation of the pilot program. 4. Linking nutrition education to efforts to improve purchasing power should serve to broaden the effect of either intervention -- micro-projects or nutrition education -- introduced on its own, and may be a more cost- effective approach to meeting development objectives. Providing education to organized groups targeted for income-generating purposes could act as an incentive for group participation and cohesion. The nutrition education Page 2 of 4 intervention would benefit from the delivery structure already in place for the micro-projects. 5. Secondarily, the nutrition component, through the qualitative research and strategy formulation activities, will provide the foundation for the development of a national nutrition education strategy and program for high risk groups (children under five years and pregnant and lactating women). The project will support the development of guidelines for the expansion of nutrition education throughout the country. Detailed Description of Activities 6. Proaram Desian. Cameroon has demonstrated capacity in the development and implementation of effective nutrition education programs. A pilot nutrition education project implemented in the Extreme Northern Province by CARE/Cameroon in collaboration with the Ministry of Agriculture's Department of Community Development and the Ministry of Higher Education and Scientific Research was successful in developing an effective strategy of nutrition education for illiterate, hard-to-reach populations. Moreover, within the Africa region, effective methods for linking education to interventions designed to increase incomes and food availability are underway. Building on this capacity and experience the following steps will be undertaken to design a nutrition education program to link to the micro-projects activities: o Qualitative research. - To supplement available information, emphasizing maternal dietary practices, and to take into account regional variations in behavior, the project will undertake qualitative research. In-depth household interviews and observation, household trials of new behaviors, focus group discussions, and analysis will be carried out under the direction of the coordinating committee. Technical assistance will be provided by CARE/Cameroon based upon their prior in-depth experience with this type of research. o Formulation of education strategy, materials development and testing. - The results of the research phase of the project will lead to specific recc mendations for the design of an appropriate education program. Benavior change objectives will be established and a communication strategy developed. This entails deciding on media, materials and an implementation plan. The provincial and departmental FIMAC (micro-projects program of the Food Security Project), involving staff from the Division of AgriculturAl Projects (DPA) and the Department of Coumunity Development of the Ministry of Agriculture will be responsible for coordinating the strategy formulation with the micro-projects component. MESIRES, MINSANTE, MINASCOF, CARE and other NG0s involved in the implementation of nutrition-related activities will collaborate and provide technical assistance. Locally available artists and materials productions groups, within the ministries or from the private sector, will be involved in materials development and production activities. o Training.- Staff will be trained in the qualitative research consisting of collecting qualitative data (focus group, ethnographic Page 3 of 4 accounts and testing within households), data analysis to identify problems and elaborate a strategy, and production of pedagogical material; Training will be provided on communication technics to about 400 field agents in the use of the pedgogical material and dissemination of messages. Emphasis will be put on individual councelling sessions, group discussions,and interpersonal communication; Training will be given to members of the technical coordinating committee and field staff in the design, data collection and analysis for program evaluation. 7. Implementation. Following the development and testing of materials, program implementation will begin with the training of the field workers. Extension workers of the DEVCOM of MINAGRI and rural animators from MINASCOF, involved in the coordination of the micro-projects, as well as additional MINSANTE or MINASCOF field workers will deliver nutrition education. Initially, the program will be launched in several departments of the Extreme North, the Eastern and Western Provinces. Supervision and in-process monitoring will be incorporated into the implementation plan. 8. Evaluation. Before launching the education activities, a baseline study will be conducted to examine mother's knowledge, attitudes and practices and nutrition status of the high risk population (children under five years and pregnant and lactating women) and a comparison group. Following one to two years of program implementation, a repeat survey will measure changes in participants' knowledge, attitudes and practices related to the program's messages and nutrition status. Program Expansion 9. The pilot nutrition program supported under this project is intended to provide the basis for developing a strategy for a national nutrition education program. Most of the education programs' costs are start-up costs involved in research, strategy formulation, and materials development, testing and production, and on-job training of field stai:. To sustain and expand the education effort launched under this project, an implementation plan for the phased introduction of a national program to additional departments and provinces, and through additional channels, will be produced by the technical coordinating committee. Organization and Management 10. The nutrition component will be a collaborative effort of the Division of Family and Mental Health of MINSANTE, Department of Community Development of MINAGRI, rural animators of MINASCOF, and MESIRES. MINSANTE will coordinate the project. The NGO selected to assist in project implementation will provide substantial technical assi3tance. Work will be done under the direction of a coordinating committee made up of representativep from each of the ministries. Additional personnel including artists, communication experts, trainers, field supervisors for each of the three provinces, field-level investigators for research activities and field-level implementation personnel to deliver the education will work under the direction of the program manager. Page 4 of 4 11. A technical coordination -.; ,r. vill be established comprising the representatives of all the technical ainistries concerned. The group will meet regularly to prepare action plans for the different phases of the program. assure their execution, attend training sessions, report to their respective ministers on the progress of program implementation and finally, on completion of the program, define a national strategy and action plan. 12. A MINSANTE national coordinator and the NGO technical coordinator would be responsible for assuring program execution, including the financial and physical management of the project. A contract between MINSANTE and the NGO will establish precisely the responsibilities of each of the coordinators in the physical planning of the work, preparation of annual budgets, monitoring of physical implementation of the program and budget execution. The NGO will make available experts and personnel corresponding to the tasks to be carried out for necessary logistical and administratives support for program management. 13. A supervisor would be assigned to each zone responsible for analysis of data collected, establish a specific strategy for the zone, and supervise the work of the lanimateurs". Implementation Schedule PROJECT YEAR PRE-PROJECT PY1 PY2 PYs PY4 Activiles (Quarter) 1 2 3 4 1241241234 124 Implementation Plan x X Personnel recruitment X Qualitative Research XXXXXXXkX Strategy formulation X Materials Dev A Testing XXX Bas*ine Implementation Training XXXXXXXXXXXXXXKXX Program Implementation XXXXXXXXMKKZKK Evaluation XX MEENRMMNEK9RNE Cameroon Food Socurity Progra Project Coat Suasary CFAF US$ 9 Tøta l -- --- -------- --------- ---------------- ------ 5 Forolgn no«s .cal Foreg Total Local Foreign Total Exchange Costa A. Mcr-Projects 1. Supp~rt Service 364.4 691.7 966.1 1.4 2.3 3.7 61.9 11.1 2. Projecte 1992.9 1272.9 3265.8 7.7 4.9 12.6 39.0 39.2 8. Tralwlg 6.5 24.5 566.6 2.9 6.1 2.1 4.4 6.7 Séb-Total 2887.8 1889.1 4776.9 11.1 7.3 19.4 39.6 57.3 a. Lees6 Control 294.2 1M2.6 1296.8 1.1 3.9 6.0 77.3 15.6 C. Itførmatln System 169.3 184.6 343.9 9.6 9.7 1.3 63.7 4.1 0. Market Infraetr~ctere 92.0 63.@ 1666.6 3.6 2.4 6.9 46.6 18.6 E. Nutrition 168.6 200.9 371.8 6.6 .8 1.4 56.2 4.6 Total GASELIME COSTS 4424.3 8915.1 8339.3 17.9 16.1 32.1 46.9 10a.o Physical Centig~lce 139.2 191.4 M0.6 9.5 9.7 1.3 67.9 4.8 Price Con6igencie. 368.2 313.7 616.9 1.2 1.2 2.4 W6.9 7.4 Total PROJECTS COSTS 4866.7 4426.1 9286.8 18.7 17.0 86.7 47.6 111.4 Value Scaled by 1 0.8 - 1/31/1991 18:68 C個牌口劉 日開口」口盔盧亡墜1靈么口訌 也•卹低色U. C月隨耗呂露驪審．••．訕，I州1叩C,t!.,“頃審一。點．總州l轉黠．“】 一。••■．■。－一’■喝．••■•••••■••哺■••一••．•••，••一•－.．劍．．•口．•••自•■•■•■•■•■一••••．k•’’•．•哺■陶■一••．■••唱■．■．,．州•計••．•用戶．•．網••．，•，•．..．•••一•．•••••••‘．••••••，■馴．一•．•．•‘••．•．卜•州•．•．•．•－•••••••同■•一••．• _＿陶網抽1..1－為••綢•••O徐•〞“‘〞I&k& 勾“叩•．．•，昌•悶”••，，。q州鉤頃•．馴•中藝〞•．t劇戶口』。••『•一『O煙〞．•T口T編L •馴．．••個，•••••州．一•••■••．■－•．•■••細．•••卜．‘•卜•••．卜•．卜■•••哺•纏•．糾•．卜•．卜•卜■ H．••，••••．•叫■•••■•••■••．•••哺■••．哺•‘..，•卜■，■”■鬥••••．‘州•H••■•．．州•個．‘•••一。．卜．•，•綱•一•州••糾■••．•’•．，•．•’•．•■••．•一••‘•••••個•．一•一•目••••．• 魚口斤LN訪州開1 口網口唱口用■目曰口自唱自個自喝口口目．個計口細口唱口 禹。戶奮衫《 《1》鬍•••鴻‘&！•••：::t寫t,s 衫中審．•”必口馴！．•．．鳥，6．鉤l:0．卹1。，.11:1．閱： 矗”劇•他．綢騙．個．&1.&:0．歸：:0．綢：:：一17:1．馴： 細•〞．t語。也．細：亂．11:,0。編0．歸：:::1．馳： t”毒．！吋一矗陶“〞！．擊．:1．開：：縴jg·開：:::t．亂．: 騙由觔•一•‘．總●。場，．細口•．唱• 《觔點陶IC&.d名俗。鬨馮．，戶，】。細•馴 戶門必”他l,.::::t::: C..．•，．萬．騷：0．個O::0．當Ot:0．口Ot 開開•《劇•．”馮•奮：•。縴：:1。，•：I•．0•累 hf妒馴j&，州細r.:t．韋1︰。0．口口tt寧零露．11: :::::：零： :0.，煙g言0．呂11。零。1．個日： :0。名讓：專9 .0口寡，::0．忽1: 騙“b俗•細發論．綢．．總騙．闕 戶劉觔叩劉濟為L 1.．闕．．購亂總幼二鳥 •．hf•門•州一黝•頗“. 纏口唱自屆口騙細口唱口口口d口細••口口命口口口口綢口•口口口口••■個• 間滷書‘優”&d‘•！••．.t：蠶9．婦：:t 0．鑰t 蠱間細It自n細．點，,i弓自自：t 9．織甲名：:0‘遞唱： T,．屆．言”::9．驕：::0．幼： 勵•”鄴痲•勵”細：:o．討：::o．騙： 口“h俗•t•1 1.tll．呂1 魚騙斤11：開唱J 禹，L馴州陽鳥C目俗鬥I 個口口．個自個■個口奮口口•口自口•個•口口州口月口細口 馴織名．•••么口目！．■．•鳥。個。1么：:,:：盒。11: Tr••勵嗷網口：,．馴網J寫寫寫露：•一屆刃： g，•一•t合一•〔口0唱口：：甚。，一：寫甚二，認：召．甚．: 魚．‘也•俗•總，．露1 1.7•1．細7屆．總磚 妒紹斤11::O弋 禹．L！一•伊C一州編也 么•‘•0口一•1 4．仰•：::t,4．唱寫i 馴細•屆唱甚••藝！俗名•口．,:::：寥 〔自啊t伊唱勵開，I個網【綢個個口個口I:：呂！: 日•r甲，．口0】：:：鳥．f•萬甚．『勵： C劍唱口闢∥，個綢嗚祖自妒智tt自口：:：口： 矗T,．各一甚“•：0．婦：::0 .4t: 么心他•也•驪‘。細7 1.7屆•．翻自 妒結啊黝：鬨。口州頃電 纏口個•纏口口口一細口口‘目口•口口口個個•口口口•■個口口自個自 禹。輪．也＇&t言．網 個．口．一哺bd口個b纏•唱戶個自 閑．h言．露••矗口細！．口匕”t:0．闢：：寫鑒：0．寫口： 〔•網口U，唱口綢〝口，細個f甲傷弓個口：騙。口口：1.,；瞽。邵• lr•畫為I網•寡，．騙•：寫“甚間．間響； 〔口•－二•－．〔口自，口1 0．口唱：：名，不開．•奮呂 “關編認認陽，：二1.& 栽訂儿幼．00 1．神．．勻1．神．．歸1．訂鵝．總 .－一開口雜繡口償1騙鑰忽馴寫 1，編甲••“化．.．辭！h細中系闢中b〞細“&”。妒馴j,.，一州開‘•，緬物‘••馴．,l。〞細j 屆j騷內劉口••自闔1．口劇自騙『面跑“伯口讓〔卜勻口屆個甲馴電•，口，口•自•口，口甲電綢•．開邢仰口個口口網， 勵藝州倘申•．•．勵．••．鴃i勿開細C，向’二馴刃，•〞，州‘一“．•〞。●•”•．〞。•一戶叫•．，。 - CAMEROON FOOD SECURITY PROJECT Amounts and Methods of Procurement (M Millions) -------------------------------------------------------------- w ----------------- Component ice LCB Other N.A. TOTAL ---- w-w ---------------------------- ww ----------------------------------- -------- PART 1: MINAGRI - ------------ A. FIMAC (1) Support Services Vehicles 1.03 : 1.93 : 0.69 : 0.69 t 6.34 : 8.24 1 as Equipment 6.49 4.48 : 0.22 0.22 : 0.26 4.26 : Technical Assistance 1.24 1.94 : 0.95 0.85 4.49 6.49 Operating Costs 1.94 1.94 1.11 1.11 1 a 0.66 0.66 Training A Materials 2.14 : 2.14 1.64 : 1.66 6.68 9.58 Subtotal 7.03 0.48 3.49 1.94 6.93 0.69 0.22 2.41 1.11 4.43 a 0.34 9.26 1.87 0.66 2.32 (2) Rural Investment Credits Commercial 9.90 0.09 9.66 8.60 Non-Cowerclal 8.09 S.89 6.11 6.11 Infrastructure 3.17 3.17 2.32 2.32 Village Storage Civil Works 1.28 1.23 0.92 0.92 t 0 Equipment t 0.31 9.31 : 4.2$ 4.23 t * Subtotal 13.69 13.59 19.17 16.17 a FIMAC TOTAL 1.93 0.48 17.07 1.94 29.92 9.69 6.22 12.50 1.11 14.64 a 4.34 8.26 1.07 4.65 2.32 *a B. Information System. Equlpment : : 6.48 : : : .48: . 6.48 : :: .*8:* Tochnical Assistance : *.49 :.49 ..49: : 8.49:.. Training : 8.18 : : 8.18 * .8.18 : : .18:.. Operatlng .Ost: : : .37 : .37 : .37.87 e Subtotal 8.48 6.67 6.37 1.62 6.48 6.67 6.87 1.52 s* PART II: APCU A. Locuat Control Vehileo : 8.15: : : : 8.16: 8.16: i : i 8.16:. Equipmsnt i 1.96 : : : 1.96 1.96 i : i : 1.96 i . Trlaning : i i 8.2: : 8.26: i i 6.28: t 8.28:. Operating Costa : : 3 i 8.14 : 8.14 Subtotal 2.11 8.28 3.14 6.44 2.11 8.28 2.31 . PART 1I1: CFC A. Line øf Credit Subloans : 4.23 t 1.6 : : 6.83 2.98: 1.1: : 4.688: TachnIcal Assistance i i 8.49 i i 8.49 i 8.49: i .49:. Subtotal 4.28 2.69 6.32 2.98 1.69 4.67 * PART IV: MIN$ANTE A. Nutritløn Vehiles i 8.14: i i i 8.14: i 8.14 i i i : 8.14 i * Equipment i i 8.22: 6 i 8.22: i i 8.22: : : 8.22:. Technic&I Assistance . " t . .66 Si i 8.55 : i ..5:. Trolning 6 i i 8.83 ø i 8."8 i i : 6.0: : .8: Operatifg Coste i i i i 8.59 : 8.69 i : i i 8.69 6 8.69 : • Subtetal 8.14 ø.22 8..8 8.69 1.54 8.14 8.22 8.58 8.69 1.54 e TOTAL 8.2 6.41 28.99 6.66 36.34 Of whieh Bank 2.94 3.42 16.14 1.82 28.82 • Of which Japan 6.84 6.74 1.74 1.82 3.84 s REPUBLIC OF CAMEROON FOOD SECURITY PROJECT DISBURSEMENT ESTIMATE Bank Fiscal Standard 6.5-Year Years & Semesters Estimates Disbursemnt Profile (US$'000) CUS$1000) Cumula- Semester tive Cumulative z 1992 I 0.46 0.46 2 0.46 2 II 0.69 1.15 5 1.15 5 1993 I 0.92 2.07 9 2.07 9 II 2.07 4.14 18 4.14 18 1994 I 1.61 5.75 25 5.75 25 II 2.76 8.51 37 8.51 37 1995 I 2.99 11.50 50 11.50 50 II 2.07 13.57 59 13.57 59 1996 I 1.84 15.41 67 16.10 70 II 1.38 16.79 73 18.40 s0 1997 I 0.92 17.71 77 19.78 6 II 1.15 18.86 82 21.39 93 1998 I 1.61 20.47 89 23.00 100 II 1.38 21.85 95 1999 I 1.15 23.00 100 DISBURSEMENTS PROFILE 4.1.1 13.715 '1001 q, 18n 80 q 4 * bfl19.78 W86 〞 t蔥P叮BLICO,C矗開蠶t00騰 r00勵S取CUtl鸞Y,t0）膩O! or忽‘ul,.tlo二1 Ch.rt ：個， 魚閑馴口瀾叩 CAMEROON FOOD SECURITY PROJECT Implementation Schedule Agency Task Completion Date Responsible Appointment of Staff and Lonx Term consultant 1.Selection of long-term DEAPA-MINAGRI consultant for the Early Warning and Market Information System. August 1991 2.Carrying out of Study Formulating of Strategy - Prepare Terms of Reference September 1991 DPA-MINAGRI for the study on crop protection services of M'NAGRI - Signing of -contract for carrying November 1991 DPA-HINAGRI the above study - Formulate strategy on crop September 1992 DPA-MINAGRI 3. Crop Protection - Organize meeting with interested October 1992 DPA-MINAGRI donors in supporting reforms in the phytosanitary operations of MINAGRI 4. Training - Establish training needs November 1991 CFC of staff from municipalities MINAT -Identify Training Institution January 1992 MINAT and organize-sessions 5. Annual Work Plan, Reporting and Monitorina and Evaluation - Prepare detailed Annual Work Plans and Budget for each year September 30, 1991 DEAPA,DPA-MINAGRI and June 30 thereafter APCU-HINAGRI MINSANTE CFC - Semi-annual Progress Reports June 30 and December 31 DEAPA, DPA-KINAGRI each year APCU-MINAGRI MINSANTE CFC - establish and maintain DEAPA, DPA-MINAGRI records and accounts on various APCU-MINAGRI components MINSANTE CFC - have records and accounts December 31 every year DEAPA, DPA-MINAGRI independently audited, plus a second audit APCU-MINAGRI, with a certified copy of FIMAC by May 31 MINSANTE sent to IBRD each year CFC - mid-term evaluation of FIMAC component December 31, 1994 DPA-MINAGRI REPUBLIC OF CAMEROON FOOD SECURITY PROJECT Supervision Input into Key Activities Borrower's Contribution to Supervision. Progress reports are to be submitted at the end of March and September of each year. Ministry of Plan will be responsible for consolidating the reports prepared by the various project agencies. Ministry of Plall will be responsible for submitting to the Bank a mid-term evaluation of FIMAG operations during 1992. Reports will be submitted to supervision missions, to be scheduled around mid-March and mid-September. MINPAT will be responsible for coordinating arrangements for Bank supervision missions. Mission briefing meetings on arrival, and vrap-up meetings normally chaired by the MINPAT, with the participation of representatives from MINAGRI, MINSANTE, MINASCOF, MINAT, CFC. Bank's Contribution to supervision. CY Mission's Objectives Staffweeks 1991- II Review progress in Task Manager 4.0 meeting conditions of effectiveness 1991- III Supervision to review Task Manager 6.0 Work Plans and Budget 1992 Mid-Term Review of Food Security Task Manager Operations Specialists 12.0 1992-1995 Two supervision missions Task Manager 60.0 reviewing progress of Specialists Project, Work Plans. Budget, and audits Project Supervision missions will be combined with other tasks in Cameroon. REPUBLIC OF CAMEROON FOOD SECURITY PROJECT Economic Analysis 1. The varied nature of the different components of the Food Security Program poses obstacles to adoption of the conventional methodology for economic analysis of agricultural investment projects. The program cannot be analyzed as a single entity but only as the sum of its parts. Therefore, economic rates of return have been estimated for the individual components and, on the basis of these, an assessment has been made as to the overall economic viability of the project. A. Micro-Projects 2. Two characteristics affect the economic analysis of this, the major component of the Food Security Program. Firstly, as the choice of a specific investment is left to the beneficiaries, the benefits cannot be identified or quantified ex ante in any meaningful fashion. Secondly, in so far as they can be identified, they consist of items that are essentially nontraded, or whose market is strictly circumscribed. This suggests that economic value can be approximated by financial prices, particularly as prices of equipment supplied for use in the micro-projects are exclusive of tax, while the value attributed to labour (CFAF 1000/day) appears to reflect its opportunity cost in rural areas. The approach adopted, therefore, has been to combine economic and financial analysis in the review of four models considered to be representative of the projects eligible for financing. 3. Investment in micro-projects accounts for almost 80% of the cost of this component, while another 82 is taken up by training, and the balance for support costs. Over 702 of project financing is to be for so-called lucrative" projects, where one of the criteria for financing is that the estimated rate of return should be at least 15Z. The four models used serve to demonstrate that such a criterion is realistic and even, in som cases, modest, thereby suggesting that the rate of return for the component as a whole is likely to attain the 152 benchmark. 4. Despite the justifications given above, the imprecision of the approach to economic analysis of this important component, which accounts for over 602 of project expenditure, is likely to give rise to concern. However, it should be bourne in mind that the investment is to the benefit of grass- roots communities, who have few opportunities outsife agriculture for contributing to the economy. Any increase of value-added and development of productive assets at this level is important as, in the absence of some external support. little could be realised. Flour Mill 5. Small flour mills, which relieve the drudgery of pounding grain and release precious time for other activities, are one of the items most requested by groups of women. The model, based on purchase of a mill costing CFAF 1,350,000 and construction of a shed in which to house it, shows that an economic rate of return of almost 161 can be obtained when 600kg of grain are milled each month (Table 1). This assumes that benefits take the form of value added, reflected by the milling charge of CFAF 50/kg, and bran, estimated at 5% of the value of the grain milled. 6. Considering that average annual consumption of millet and sorghum in the North, where cereals are the major component of diet, is estimated at about 150kg/person, 600 kg/ath would cover the needs of about 50 people. It is likely that damand in even a small village would be significantly greater, thereby assuring the profitability of the operation. 7. Financing of 60% of investment costs amounts to CFAF 870,000, which the group would be in a position to reconstitute in equal installments over 4 ysars. Chicken Farm 8. The chicken farm model assumes the rearing of 500 broilers in batches every 3 months. Although, in theory, locally produced chickens would compete with imported ones, this is improbable in rural areas both because of the *natural* protection offered by distance and because of taste differences. While there is initial investment in a building and equipment, the major expenditure is the recurrent one for feed followed by the purchase of chicks. (Table 2) Assumptions include; rearing of only one batch of chickens in the first year (which would in fact be sold in year 2), mortality of 30Z in the first full year of production (year 2) declining to 20% in year 3 and 101 thereafter, a sales price of only CFAF 2,400 per bird, which is 20Z below average prices recorded. Even with these fairly restrictive assumptions, theg economic rate of return is high at 551. If one were to assume further that a whole batch of chickens was lost in each of the last 5 years of the project, the rate of return would still exceed 40Z. 9. Owing to the weight of recurrent costs, the group would require assistance with these expenditures as well as with investment in the first year. It is therefore proposed that the assistance amount to 601 of total expenditures in year 1. In these circumstances, receipts from sales would be sufficient to permit continuation of operations to reach full development in year 2. Reconstitution could take place over three years in three equal installments of CFAF 303,800 each. Palm Oil Press 10. The model for the palm oil press is based on a press capable of transforming up to 500 tons of Fresh Fruit Bunches (FFB) a year. As a single group of farmers is unlikely to have more than So tons of its own produce to process, it is assumed that the group would process the FFB of other farmers in the area for a fee of CFAF 5,000/ton FFB. Conservatively, it has been estimated that a total of 100 tons would be processed by year 3 and thereafter, but there is clearly scope to process additional produce if i- is available. In comparison with manual processing, extraction rates would increase from 8-102 to 14-152. Oil is valued at the local price of CFAT 220/kg for both economic and financial analysis as consumption of the type of oil produced is restricted to the domestic market. 11. In economic terms, the benefits are represented by the incremental oil produced from the same quantity of FFS (a 502 increase). Costs considered in the economic analysis include the investment in the press and the building to house it. as well as in supplies for operations. There would be no incremental labour required, in fact labour requirements might actually decline in comparison with manual processing. Under these assumptions, the economic rate of return over ten years would be 31Z. (Table 3a) 12. For the financial analysis, it is assumed that while group members would process their own FFB, hired labour would be used for processing FFB of other farmers. The hired labour would be remunerated at CPAF 10/litre processed. Benefits would consist of the value of the additional oil extracted from the group's own FFB plus the fees paid for other processing. Under these assumptions, the financial rate of return would be approximately 182. (Table 3b) Financing through FIMAC would amount to 60Z of investment costs, which the group would be able to reconstitute in 4 years with four equal installments of CFAF 502.500. 13. As two out of the three models show returns considerably in excess of 152, it is not unreasonable to assume that the component as a whole will have a rate of return of at least that amount. For this to be assured, an average rate of about 262 on the lucrative projects alone would be required. B. Village Storaze 14. The contribution to food security of an efficiently operated village grain store is clear. Grain will be available locally when required. Farmers can benefit from the higher price offered when grain is sold later in the season rather than immediately after harvest while, as consumers, villagers can benefit from a more regular supply and avoidance of speculative prices in the lean season. In economic terms, storage permits an increase in both producers' and consumers' surplus as, to a certain extent, benefits are created by substituting lower cost production in the *surplus' period for higher cost production in the 'deficit" period, and higher valued consumption in the *deficit' period for lower valued consumption in the 'surplus' period. 15. The component, which is a pilot operation, concerns the establishment of 200 stores of 40 tons capacity. In addition to assistance with the investment along the lines of other micro-projects, groups would also receive assistance from the World Food Programme in the form of an initial stock of 20 tons of grain (purchased locally), equipment and rations during the period of construction of the warehouse. It is assumed that over a period of 10 years each group would gradually build up its stock to the warehouse capacity of 40 tons. Losses would be reduced over the first 4 years from 302 under traditional conditions to 102. (Table 3a and 3b). 16. In the economic analysis, the vithout project situation is assumed to be one where farmers are obliged to sell the grain that they would otherwise put into the grain store immediately after harvest at the prevailing low price of F40/kg. Economic benefits are consequently reflected in the difference between proceeds from sales, at the higher price of FSO/kg, and purchases, net of handling costs and losses. The difference in prices has been assumed to reflect producers' and consumers' surpluses. On this basis. an economic rate of return of 162 is obtained. 17. The financial profitability of the operation also rests on the margin between the purchase and selling prices and the financial rate of return is therefore equivalent to the economic one. Financing is rather more complex than under the Micro-Projects component. Bxternal financing from the same sources as under the micro-projects would cover 402 of investment costs, while the World Food Programie would finance another 302 in the form of both rations and equipment. This capital would be reconstituted by the group over 5 years as follows: 102 in yr2, 152 in yr3 and 252 in yrs 4-6. The World Food Programme would also donate the initial 20 tons of grain to provide the group with a revolving fund of working capital with which to carry out operations and build up their stocks. C. Information System 18. The enhanced flow of information about production and prices brought about by the establishment of an information system should help to reduce uncertainty and enable producers to secure more remunerative prices. This in turn should stimulate greater production. However, it is extremely difficult to hazard a guess as to the magnitude of the impact on production. Furthermore, the proposed investment in establishing an informatiGr system is in the nature of a pilot operation, which would need to be reviewed after 3 years to assess its impact and the advisability of further investment. Benefits would certainly not endure in the absence of further investment as, apart from the technical assistance, which accounts for one third of the costs of this component, the expenditure is essentially recurrent in nature. For the above reasons, benefits from the proposed pilot project have not been quantified and no economic analysis has been carried out for this component. D. Locust Control Program 19. The locust control program has been designed to benefit the two provinces of the North and the Far North. As in the case of the information system, continued impact will depend on sustained support, so the immediate benefits of the investment proposed in the context of the Food Security Program have been compared to the actual costs over the 5 year period. In addition to the costs contained in the component as presented, pesticides are to be added (?). In the absence of the pesticides there vould be no benefits. Measures are included in the project to ensure the safe use of the pesticides proposed so that there should be no economic costs in the form of negative environmental or health effects. 20. The benefits have been estimated in terms of the grain harvest of the region valued at import parity prices on the assumption that imports would come from the closest source, Nigeria. It has been assumed that treatment would result in the prevention of losses of 30Z of the harvest in 4 of the 5 years. As losses caused by locust swarms are reputed ac high as 702 of the harvest, the hypothesis adopted is conservative. Under the above assumptions, the economic rate of return is almost 202. (Table 5) Z. Market Infrastructure 21. While investment in an individual market structure may be based on the average cost of a module with aa *0d4itional 152 for access and services, no estimate has been made by the marketing specialist for the expected operating costs of the market. These would have to cover inter alia: utilities, such as water and electricity, cleaning, security, general maintenance, insurance, personnel and management. As an approximation, it has been assumed that annual operating costs would not exceed 20Z of total investment. In addition, in the financial analysis, an allowance has beer. made for depreciation over 10 years. Revenue, both to cover operating costs and to reimburse the loan, would have to come from charges to users of the market. Current rates range from CFAF 4,000 to CFAF 12,500 a month. For the purposes of the financial analysis, the lower rate has been assumed for the 400 stalls which can be accommodated in one version of the module. On these assumptions, the rate of return is satisfactory at 182. (Table 6) A payback period of 8 years at 12% interest has been discussed with Government, but the model shows that even reimbursement over 5 years could be accommodated. 22. Economic analysis of this component is problematic. While construction costs can be estimated net of taxes, depreciation excluded, and operating costs assumed the same as in financial terms, benefits are difficult to identify, let alone quantify. New market structures are likely to imply more sanitary conditions for trading of foodstuffs, thereby reducing risks to health. Losses may also be limited. Greater opportunities for marketing produce at new markets might also, eventually, lead to a prodution response. As it is not possible, at this stage, to put a figure on these possible benefits an economic rate of return has not been estimated. Conclusions 23. On the basis of the above analysis, a composite rate of return has been estimated. Excluding the Information System and Market Infrastructure components, for which no rate of return can be calculated, the economic rate of return for each remaining component (which together account for over 802 of project costs) has been veighted by the share of that component in combined costs. For the Micro-Projects, the minimum expected rate of 15? has been used. The resulting composite rate of return is estimated at 16?. ANNEX 11 Page 7 of 10 0EPERC OF CMMOO4 F00D sEctatrT PROJEC7 mod*el Table 1 2 3 4 lour Mi6 7 9 CFAP liii 1380000 bki id;e.g 60000 Busai i e 20000 20000 20000 1480000 0 0 20000 0 0 20000 0 0 0 en Cost4 1 16000 38000 36000 3000 38000 3~000 38000 86000 83000 38000 Ilintenanco 7200 14400 14400 14400 14400 14400 14400 14400 14400 14400 .3250 500 6500 6800 8800 6800 6500 6500 6500 6500 6000 12000 12000 12000 12000 12000 12000 12000 12000 12000 peetI. 3460 60900 60900 6900 60900 6900 88900 68900 68900 14900 4ill1 cm harges(1) 144000 26000 380000 380000 360000 380000 380000 380000 380000 380000 Bren(2 8760 11820 14400 14400 14400 1440C 14400 14400 14400 14400 i-tota 149760 299520 374400 374400 374400 374400 374400 374400 374400 374400 Dh Flow -1384890 23020 308800 28M800 305803 30800 2~00 30s00 308800 305500 t 0.157302 bh Financing OC Contribution (3) 870000 rimed CmiS Flom -464690 230620 305500 285500 308500 308800 28800 305500 30500 305500 :onatitut ion 217500 217500 217500 217500 ene* reaining -464690 13120 80000 68000 60000 305500 285500 305500 305500 305500 1 F50 x 6 ckg/Uth a 12 MhS. an 28 of valuo of grain milled, e a60 of invest~ent coota. REPUBLIC OF CAMERON F0(D SEC*tTY PROJEC7 Table2 CFAF reatmentl luilding 500000 Equi omen% 300000 300000 300000 >-total 800000 0 0 300000 0 0 300000 0 0 0 Preting Comto :hicka 18000 800000 80000 8000 6000 800000 ~000 6000 6000 600000 d (2) 804000 20160 20180 20160 20160 20180 201800 0 0160 201600 20160 .in.rry 30000 200000 200000 200000 200000 200000 200000 200000 200000 200000 eronn. 1 15000 80000 60000 60000 60000 60000 80000 80000 80000 60000 MSaribution 0 70000 80000 90000 90000 90000 90000 90000 90000 90000 k-tata i 719000 2 4 29 9 2966000 2960 29660 298000 2968000 2988000 2988000 ruiste (3) 0 3380000 3840000 4320000 4320000 4820000 4320000 4320000 4320000 4320000 oh Flo* -1519000 414000 884000 1054000 1854000 134000 1054000 1354000 1884000 1354000 t 0.847166 bh financing OC contribution (4) 911400 ied ash flo* -607600 414000 864000 1054000 135 184000 1054000 1354000 154000 1354000 mnatsttion 303800 303600 303800 ance remeinting -607600 11020 580200 750200 1354000 1354000 1054000 1354000 1354000 134000 le 500 birds raioed *very 3 month. 1 batch only In yrl aoid in yr2. 2e Ske feed per bird, ~48% eack. ae Bird eo1d for P2400/eac . lrtaliiy: 301 yr2, 201 yr3. 10 thereafter. e 4 FIAC contribution G0 of total cost in yr 1. ANNEX 11 Page 8 of 10 Rep*Jc OF CMON4 F00 SECITY PMOeT Table 3a Palm il Prono• Economi Analvaim 7 9 10 CFAP Prese 3000000 guildig 350000 Sub-%ohal 1380000 0 0 0 0 0 0 0 0 0 Operaling Casta 0 n Å. u.i .0000 00 00 000000 000000 1 000000 50000 50000 sub-t46l 50000 80000 80000 10000 80000 80000 80000 50000 80000 50000 9n4fi4s (1) 880000 m 000 11000010 110 10 110 1100000 1100000 1100000 1100000 1100000 Litree eseled (2) 2100 3780 1000 8000 5000 8000 8000 8000 8000 8000 Ch Flo& -2110000 778000 1060000 1060000 1080000 1060000 1010000 1060000 1060000 1080000 IM 0.31377* Not. I Valved ab P20/tIre. Not. <2> Incramnljl. Etrection rote 18M co~p*rd with 101 m al fr. wI*r.C OF CM F000 SIna7Y P0m7 Mpdla Table S6 1 2 8 Fea lit2 P~*ms Fm ;i il Angiftio 9 10 CFAP Investoenf prema 8000000 fuilding 350000 Sub-total 3350000 0 0 0 0 0 0 0 0 0 Operating Comtm 0 a M supplies 50000 0000 50000 80000 80000 80000 80000 50000 50000 80000 0 k m labour (1) 0 87500 75000 75000 75000 78000 78000 75000 78000 75000 sub-toia 80000 87800 125000 125000 125000 125000 128000 125C. 125000 125000 Receipe (2) 860000 675000 10000 000 600000 800000 000000 800000 800000 Ton* PFM proc~.ed 50 78 100 100 100 100 100 100 100 100 Litram *il entractod 7800 11280 1000 18000 15000 18000 18000 18000 18000 15000 Cach Flo -2150000 87800 876000 67500 0 677800 678 6715000 67000 675000 675000 Im 0.17773 With Financing FIMM~ Centribution (3) 2010000 Rovi~d Calh Flau -640000 867500 678000 675000 675000 675000 678000 675000 675000 675000 Roconat;tution 802500 802500 802800 502500 0 0 0 0 0 89l4OcO ~omuining -40000 8000 172500 172800 172500 675000 8750 00 875000 675000 Note I Incrm, el labojr for proc~sing othera' FF0 remuneratod et Flo per itre, procesod. Note <2> Increm.nlal Oil valued at F220/Isltr for Group'd een FF8 (501), charge of F000/1 for other' FFS. Nota <3 60 of investment coots. ANNEX 11 Page 9 of 10 ~dle nimt ~~ cMO Table da Vi lan Stre MdelM Fr i An0a9 15 CFAF Grain pmtumaed (å) 20 22 24 26 28 30 32 36 37 40 Gra; eeold<(6 0 20 22 24 24 28 30 32 35 37 CFAF 000 Invest~et M6ore 1400 se,le~ 200 Sacks 120 12 12 12 12 132 24 24 30 30 vari~ua 100 100 Sub-total 1*20 12 12 12 12 232 24 24 30 30 (2) 300 264 216 166 am 10 192 210 m 240 Treaan (3) 2 22 24 26 30 32 3 37 40 Gjard 60 60 60 80 60 40 40 40 80 60 Nanagement (4) 120 120 120 120 120 120 120 120 120 120 Sub-4e~l 00 464 420 342 37 390 404 428 439 460 Total C..~. 23=0 478 432 374 3 m 622 426 449 449 490 Soneflta Surolu* realied (8) 0 720 00 000 96 1040 1120 1160 1320 1360 Cao Flan -2320 242 38 300 572 418 692 711 Ni1 870 m 0.162637 Not. 1 Stare of 40 ton capacity, ataertd off with donation of 20 tone of grain from hW. Not* Valued at F/k , 205 of purchaasa yr 1, 2M y 2. 15 yr 3. 101 thereafter. Nt* < Treatmen omta Fl /ton atored. Not@ 4 Pyment for boolk-kee ng etc. Nt. <a Producer ourplus vulued a6 dfference beteen ourche*** at ~4/hg and saleå at Flo/kg. FOD ~ MELr INM.E"T Table 46 1 2 V1lla. nyae Madel3<01 Econric Anai mim CFAF Orain purchaed (6) 20 22 24 26 26 30 32 34 37 40 Oraln old (6) 0 20 22 24 26 26 30 32 34 37 CFAF 000 Inveatenb Store 1400 Scalöa 200 Sacka 120 12 12 12 12 132 24 24 30 30 Vårigus 100 100 Sub-total 132 12 12 12 12 232 24 24 30 30 Oporaing Cets Orain ourcha~e (2) p.m. o0 wo 1040 1120 1200 1260 1330 1490 1600 Troeantm (3) 20 22 24 26 26 30 32 34 37 40 Guard 60 30 60 60 60 60 60 60 60 60 bana <4) 120 120 120 120 120 120 120 120 120 120 Oase <5) 300 264 216 la 168 160 192 204 222 240 Sub-btal 500 1348 13m 1402 1496 1590 1844 1778 1919 2060 Tohel Cata 2320 1366 1392 1414 1500 122 1700 1802 1949 2090 R~eceip6 (6) 0 1600 1760 1920 2000 2240 2400 260 2720 2950 Ca Flos -2320 242 3m 53 872 416 692 735 771 870 IM 0.161780 With Financing ~ ~IC/F <7) 1400 Reve Ca Flow -2 242 3n 300 572 416 692 735 771 370 Recanal itution 140 210 30 330 30 blanc. Reaining -920 102 1n 136 222 a 692 786 771 870 Note 1 Store of 40 tenb capacty. tarted off with donation of 20 hona of grain from WFP. Note Orain purchaed at Mhg. Note 3 Treetent east. F10001%On etered. Nte 4 Psyme for bo-he ng etc. Not. < Valued a F0/k of purchases In y. 201 yr2. 151 yr3, 10 yra 4-10. Noto 6 Orain *old at /kg. NbIe FW 401 of atore. hFP 30 (in rabione) na vall a other invet~nl. REPU&IC OF CÇèl=m FOOD SEatrTY PROJC7 Econoaic Anal vais Table 3 A. Leeu.t Progra. al Incre. Incre. Net Discount Présent Worth Coate senef i ta Sanef i ta Factor Coa6e Benef i te 12% CFAF Mill. CFAF Mill. 1 1579.2 3418.6 1839.4 0.093 1410.228 3082.09 2 1308.3 0 -1308.3 0.797 1040.324 0 3 1285.7 3410.0 2132.9 0.712 915.4104 2434.043 4 1387.3 0 -1387.3 0.636 02.322 0 M 1205.7 3418.0 2132.9 0.567 720.9919 1931.346 4977.202 Coate years 1 - 5. 7425.199 Benefite yeare 1 - 5. 1.491017 S/C ratio. 11398.2 Total value crop production 200000 ha. 3418.U6 Crop value 30% 2279.04 Crop value 201 1139.82 Créép value 101 Alternative benefit *trea& Oiscounted 1 1139.52 2279.04 3418.54 2279.04 1017.891 20U8.182 3062.774 205.12 2 1139.82 0 2279.04 2279.04 906.1974 0 1810.394 1016.394 3 1139.82 2279.04 3418.54 22'i9.04 811.3802 122.676 2434.014 1822.076 4 1139.52 0 2279.04 2279.04 724.7347 0 1449.469 1449.469 a 1139.82 2279.04 3418.80 2279.04 641.1078 1292.218 1938.323 1292.218 0.825343 8/C ratio. a years 101. 0.994533 S/C ratio, 3 years 20M. 2.147954 S/C ratio, 2 yearà 101, 3 years 303. 1.680687 S/C ratio. 8 yeare 20M. REPULIC OF CAPIEON F000 SECUITY PROJEC7 Table 6 .irk@t InfrLaructur Fin$ciel Analvia CFAF Mi I i on Inveetaent Coata Structure 30.00 Acce., services 4.50 Sub-total 34.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Operating Costa Market operationa(l) 0.00 6.90 0.90 6.90 8.90 0.90 0.90 6.90 0.90 6.90 Oarocietion(2) 3.48 3.45 3.48 3.45 3.45 3.48 3 48 3.45 3.48 3.45 Sub-totai 3.45 10.35 10.35 10.35 10.35 10.35 10.35 10.35 10.35 10.35 Revenue(3) 0.00 19.20 19.20 19.20 19.20 19.20 19.20 19.20 19.20 19.20 Cash Flow -37.9s a.8 8.85 8.8 8.88 0.8 0.85 8.85 8.05 8.85 lmt 0.1 With Financing(4) Lan 30.00 Repayaenta 0.00 8.32 8.32 0.32 8.32 0.32 0.00 0.00 0.00 0.00 Rovioed Cash Flou -7.95 0.53 0.53 0.53 0.53 0.53 8.08 8.85 a.8 0.85 Vi th Financing(S) Ljoan 30.00 Repaymente 0.00 6.04 0.04 0.04 0.04 6.04 0.04 0.04 6.04 0.00 Reviesd Cash Flou -7.95 2.81 2.81 2.81 2.81 2.01 2.01 2.01 2.01 8.85 Nota<) 201 inveatmen coota. Notm <2>61aight ie over le yare. Note 3 400 a CFAF 4.000/eth. Not 64 Rasyment over S yeara, 12% in6ereat. Note Repsyment mver x eare, 121 interest. March 4. 1991 MAL Il 2j NIGER i ~ ) ec;,d SUDAN C HAD NIGERIA - I CENTRAL AFRICAN REPUBLIC CAMEROON \ KILOMETERS 0 20 40 60 80 120 140 160 c10OGNE gMLLS 0 20 40 óD 60 Io kr-CHARi -J)REP. A ANTIC OCEAN GABON r ONG ZAIRE FA j' MAYO- cSA '°' w iR E N 'E 10 ,~~1 D ATREt4 Ayo 1SANAGA CAMEROON NR D, FOOD SECURITY PROGRAM kAEE * National capital . * Provic Cap>itds u o Division Capitals w O.p emSwi~ CHAD ---PninceoBdieso.&fi ---natnao4 Bawides FARG, N l GMEARYO R Y j -~ i A r NI AAFRICAN Fa~d REPUBLIC - Bafousm _0 B. N~~o - 0 e 'n *omnda»nFRCA 7 - EQUATORIA L GUINEA \fi E£boow~ son nI. EQUATORIAL GUINEA G ŠONPEOPL E'S RE- (CONTINENTAL GUNEA F 0 N E 0~O T&HEu. CONG