Ghana - National Agricultural Research Project

Docurnnt of The World Bank FOR OFFMCIAL USE ONLY C/. a- J AX' 7 , Repor No. P-5471-GH MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT IN AN AMOUNT OF SDR 16.3 MILLION TO THE REPUBLIC OF GHANA FOR A NATIONAL AGRICULTURAL RESEARCH PROJECT MAY 1, 1991 Thi 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 aithout World Bank authorization.  C:URRkCY EgVL Curency Unit Cedi (C) US$I = C340 CIOO = US$0.29 5=MS AND MEASURE Unless otherwise stated, all weights and measures used in this report are metric. 1 metric ton (m ton) = 2,205 pounds (b) I hecre (ha) = 2.47 acres (ac) i kIlometer (km) = 0.62 miles (mi) 1 metr (m) = 3.28 (ft) I miltimetre (mm) = 0.04 inches (in) CSIR Council for Scientific and Industrial Research IDA International Development Association NARC National Agricultr Research Committe SPAAR Special Program for African Agricultura Research FISCAL 1 ber Jamuay I - December 31  MR aOlC US ONLY RNBt Q HN NAllONA AgMI:LT URAL REEAC PO CREDIT AND PR0J=3C SUMAY Borrow=: ~~~Ile Republic of Ghana. AmutSDR 16.3 million (lJS$22 million eT enlt) Te: S"dad,~~~~~it 40 years mayf. IDA US$22.0 million oDA (UK) US$ 1.8 miRion Govemment of Ghana US$ 5.7 mibln Total USS29.5 million Economic Bot of Retur: Not applicable. Saff AMZrasal Renr No. 9313-GR | TWs document has a metricted distribution and msY be used by recipMets c niy in t*h portonrmac Iof their offlia duties. Its contents may not otherwbe be disclosed without Y.'orld WRn suthoriation.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO TE REPUBLIC OF GHANA FOR A NATIONAL AGRICULTURAL RESEARCH PROH I7 1. The following memorandum and recommendation on a proposed development credit to the Republic of Ghana for US$22 million equivalent is submitted for approval. The proposed credit would be for 40 years on standard terms to help finance a national agricutural research project. 2. BUground. Virtually all agricultural research in Ghana is undetaken by public sector agencies. The Council for Scientific and Industrial Research (CSIR) was set up in 1968 in order to advise Government and promote and coordinate research efforts, which are divided amongst several ministries, the universities and parastal organizations such as the Ghana Cocoa Board. IDA, through the Agricultural Services Rehabilitation Project, has funded a review of the agricultural research system, undertaken mainly by Ghanaian sciendtsts and users of research results, with tie assistance of the International Sarvice for National Agricultural Research. The review identified the main constraints to agricultura research in Ghana as: (a) the lack of mechanisms for policy formulation and for setting research priorities that accord with national development objectives; (b) the deterioration of tesearch facilities due to a shortage of funds over the past 1S years; (c) the inadequate operational funding for research; and (d) the lack of well developed research/extension linkages. he review showed that the agricultural research system has the potential to make a substana contribution to the development of the sector, as there are well established national research institutes to undertakA commodity and factor research programs, having a reasonable level of autonomy and a we.. -talified cadre of research staff. On-going and planned improvements to extension services me.n that their ability to transfer research resuts is being strengthened and action is being taken to improve supplies of inputs such as fertilizers and seeds. The system is, therefore, well placed to respond to improvements in research planning and management, institutional arrangements and physical infrastructure. Proposals for such improvements were put forward by the review team and discussed at a high-level workshop held in Accra in May, 1990, with the participation of other donors coordinated by Special Program for Afrian Agriculural Research (SPAAR). Agreement was reached at that workshop on the main proposals for the future management of the research system and the development of a National Agricultual Research Plan. 3. Rnationae for MIA In mnt. The proposed project would support the sectora objectives set out in the Country Strategy Paper and in the Medium Term Agricultural Development Strategy. Thus, it would promote accelerated agricultural growth, through improvements In the productivity of crops and livestock and through diversification of farmig systems. Tbis would help to increase agriculture's contribution to mral incomes and employment, to domestic food supply, to net export earnings, to efficient import substitution and to government revenues. The proJect would specifically respond to elements of the Country Strategy by increasing production through technology improvements; by developing the research system as an essential supporting service to the agricultural sector; by improving the planning, management and budgetary procedures of the agricultur resch system; by human resource developmen; and by providing a mechanism to Improve donor coordination.  -2- The project would be closely linked with the proposed IDA financed Agricultural Sector Adjustment Credit and the National Extension Project. 4. EMiect Objeciv. The project would iniiate a long-term process to revitalize Ghana's agricultural research system, in order to generate improved technologies, thus contributing to national development objectives and sustainable growth In the agriculur sector. Emphasis would be given to the developmet of processes and Instutional arrangements to ensure that research priorities accord with national development priorities, the needs of farmers and the sustainable use of Ghana's natural resource base. lhe strategy would be for research to be undertaken with a clear understanding of the existing socio- economic franework, with particular attention paid to gender-specific tasks and responsibilities within the farming system. Ihe formulation of a long-term Natonal Agricultural Research Plan (NARP), support for its implementation and the improvement of the research management system and research-eension linckages, would be important objectives of the project. A more pluralistic approach to research would be promoted through the provision of a Research Grant Fund, available to universities and other co puic and private sector agencies. The project would foster the development of lnkges wih research orgnizations outside Ghana, in particular with the Int na Agricultur Research Centers, that would ensure the transfer of relevant technology in an efficient manner. S. Proiect Qagdescrig. nThe project would be implemented over five years and include five main components: (i) Research M=au= Delome which would ipro maagement systems at nadonal, institute and program levels. It would include the establishment of a National Agricultural Research Committee (NARC) and its Technical Secreariat to set research priorities and coordinate the development of a Nationd Agricalture Resech Plan; (ii) HuR esur De which would provie for I-country and foreip post-graduate and technical training, with an emphasis on twinnn arranement wih foreign intions to ensure relevance to Ohanaian conditons; (il) M kbtonut Pacis through the completion or rehabilitation of exstig building, and the supply of eenti equipment and vehicles to provide institutes with a core capability to undertake research; (iv) ImprMient of Likr SnW nPomation Syo through the establishment of the Ghana Agricultural Information Network System in resarch institte, university and Miiry of Agriculture libraries; and (v) Rs2ugh ProgruamI= for the implementation of the National Agricultural Research Plan and of selet8ed research progms; the establism of a Resech Grants Scheme, for use by the Universities and other competent agencies; and the development of research/extension linages through on-fam adaptive research program. 6. The total project cost is estmated at US$29.5 million equivalent, with a foreign exchange component of US$19.9 million (67 percent). The costs and financing plan are shown in Schedule A. The Brit Overseas Development Administation wil provide US$1.8 million equivalent, on a grant basis, to finan technical assi md training. Amounts and methods of procurement and disbursement and the disbursement schedule are given in Schedule B. A timetable of key project procesing events and the sts of Bank Group operations in Ghana are given in Schedules C and D respectively. The Staff Appraisal Report No. 9313-GH, dated April 24, 1991 is being distrbuted separatey.  7. Agions. Because of the high level of Gbanaian participation in the preparation and appraisal of this project many important decisions and actions have already been taken. Outstanding actions that have been agreed are: (i) by project effectv the National Agricultural Research Committee will be established, together with a Technical Secretariat headed by a Deputy Director General of CSIR, the Research Grants Board will be established and the first year training program will have been formulated and agreed with IDA; (ii) disbursement of funds under the Research Grants Scheme will depend on the agreement with IDA on criteria for assessing research proposas for grat funding within t months of project effectiveness. The first four proposals would be reviewed by IDA; (Wii) Government's incremental contributions would be provided in line with the agreed finncing plan; (iv) a National Agricultural Reseach Plan reflecting both farmers' needs and national agricultural development priorities will be prepared and reviewed with IDA within two years of project effectiveness. This will be paralleled by the development of a Human Resources Development Plan; (v) changes to the Manaugent Boards of the reseach stitues would be introduced six months after project effectiveness and programmed budgeting, with the use of budgetary norms for common catWories of expenditure within one year; (vi) plans for rehabilitation of research facilities and for research programs would be prepred for each institute and agreed with IDA; (vii) a Memorandum of Understanding would be drawn up by the MOA and the CSIR and signed within three months of project effectiveness, seting out the services to be provided to the CSIR by the MOA at the Regional Resrch Centers and the payments for providing these services; and (viii) proposals for twinning aragements between Gbanaian universities and foreign institutions would be reviewed and agreed wih IDA within six months of project effectiveness. Other actions relate to the incentives for reseah staff to respond to farmers' needs, rwucing the number of research stations, improving the ratios of researchers to support staff, timely preparation of contract documents, compatiblity of equipment in diffng institutions and requirements for project accting and reporting. S. Enirotental Ag _ . IMThe project has a Rating of C as the project wil have no adverse environmental effects. On the contrary, a fundamental objective of research is the development of sustainable agricdultural systms suited to differing agro-eological zones, through appropriate natura resource management. 9. L o d . The project would support a key element of the Government's strategy fo agricultural development as articulated in the Medium Term Agricultura Development Strategy, by providing for research in agricultural technology that would lead to sustained growth in the sector. Tbe project would eue t Ghana's ptevi invest_nts in agriculturl research infrastructure and trained manpowe would be fully utilized. Inprovements to the research management system would lead to the idenification of research priorities that reflect development objecives and the needs of the farmer. Assured opertional fnding and rehabilitation of essential research infrstructure would enhance the quality of research. By facilitating information flows from farmers to researchers and vice versa, the improved research/extension linkages supported by the project would further improve the relevance of on-going and planned research programs. The pimary risk facing the project would be the slowing down of the pace of economic recovery that would affect Govemment resources that could lead to shortfals ii operational fiuding, but it would be minimized by the initidal high level of participation by MDA in funding operational costs. Another risk relates to the effectiveness of mechanisms to ensure that research is responsive to both development priorities and the needs of farmers. Agreements have been reached on mechaisms to strengthen researchlextension linkages whilst the IMA financed National  .4- Extension Project, now under appraisal, would reinforce the linkages between researchers, extension staff and farmers. Unsatisfactory quality of reseach is one fiurher risk, but this would be minimized through project support for manpower development and training and linkages with international research institutes. 10. Reomendaio. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed credit. Barber B. Conable President Attachments Washington, D.C. may 1, 1991  Sdite A REPUlBLIC OF! GHANA NATIONAL AMRCUL1rRA4L RESI3ARCH R]C EFOgn LIC To EU .............. (US$ million) ......... ReSearch Management Development 0.8 1.0 1.8 46 Human Resource Development 2.1 0.2 2.3 92 Rebabililatlon of Research Facilities 6.8 2.8 9.6 71 Library and Ifomaton Systems 2.1 1.3 3.4 61 Research Progrm Support 5.5 3.3 8.8 62 Tota Baselin Costs 17.3 8.6 25.9 67 Physicl Contngencies 0.9 0.5 1.4 63 Price Contingencies 1.7 0.5 2.2 76 Total Project Costs 19.9 9.6 29.S 67 1/ Including duties and taxes of US$3.0 million EPingmciPlan: oi EQrein Local a~ ........... .(US$ million). IDA 18.1 3.9 22.0 ODA (UK) 1.8 1.8 Government of Ghana 5.7 5.7 12111 19.9 9.6 29.5  - 6 - PRO3MzNT B=9 AMDDSUSMN AMoU aid Mehos gf u-6 (IDA share in parenthaes) (USS Milion) _MOMM" Qft-=- l La Ku : Civil Wors 1.7 (1.1) 3.7(2.5) - 5.4(3.6) Vehicles 1.4(1.4) - 0.7 (0.5) 2.1 (1.9) Equipment and Materis 5.2 (4.5) 0.8 (0.7) 0.5 (0.4) 6.5 (5.6) Tebdical Assisance & Stdies 11 - - 1.8 (0.3) 1.8 (0.3) Training & Study Tours 21 - 2.7 (2.4) 2.7 (2.4) Resarh Grant Fund - - 1.6(1.5) 1.6(1.5) Opating Costs - - 9.4 (6.7) 9.4 (6.7) IW8.3 (7.0) 4.5 (3.2) 16.7 (ll.8) 29.5 (2.0) 11 ODA to fance US$1.5 millon 21 ODA to fince US$0.3 million. (U5$ Million) Amount of Qum Cxli Alkwated 9 of Expendir be Financed Civil work 3.2 100% foreign and 45% local Vehicles 1.7 100% foreign and 90% local Eguipments& materials 5.1 100% foreign and 90% local Techial assistance, trhiing & studies 2.4 100% foreigl and local Research Grant Fund 1.4 100% foreip and 50% local Operating costs 6.0 100% foeig and 50% local Unallocated 2.2 3bzaI 22.0 Esmaed IDA Dis ments E2 EY9 EY94 E121 EX E1 ....................... .US$ Milion .......... Anwal 1.9 6.6 4.7 3.2 3.3 2.3 Cumulative 1.9 8.5 13.2 16.4 19.7 22.0  Sh6e" c REP3,1Ll OFMGASNA N