Burundi - Third Ngozi Integrated Rural Development Project

Document of The World Bank FOR OFFMCIAL USE ONLY ReportNo. 10510 PROJECT COMPLETION REPORT BURUNDI INTEGRATED RURAL DEVELOPMENT/NGOZI III PROJECT (CREDIT 1192-BU) MARCH 31, 1992 11?0 '~~~> 7 Agriculture Operations Division South-Central and Indian Ocean Department Africa Regional Office This document bas 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 authork..ation.  EXCHANGE RATES Unit: Burundi Franc Year US$ 1.00 Eauivalent 1980 - 90.00 1981 - 90.00 1982 - 90.00 1983 - 92.95 1984 - 119.71 1985 - 120.69 1986 - 114.17 1987 - 123.56 1988 - 140.40 1989 - 158.67 1990 - 171.26 WEIGHTS AND NEASURES 1 are (a) - 0.0247 acres 1 hectare (ha) 2.47 acres 1 kilometer (km) - 0.62 miles 1 square kilometer (km2) 0.39 square mile 1 kilogram (kg) - 2.20 pounds 1 liter (1) - 0.26 US gallon 0.22 Imperial gallon 1 ton (t) - 2,204 pounds ABBREVIATIONS COOPEC Private savings and loan association created in 1985 IDA International Development Association IFAD International Fund for Agricultural Development RDC Rural Development Company SOMEBU Burundi Consulting Agency (Soci6t6 mixte d'6tude du Burundi) OCIBU Burundi Industrial Crop Development Office (Office des cultures industrielles du Burundi) FISCAL YEAR Government: January 1 - December 31  THE WORLD BANK FOR 0MCL US ONLY Washington, D.C. 20433 U.S.A. Office of Diuectn Getwal Opeatioun Evaluatium March 31, 1992 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on BURUNDI Integrated Rural Developmnent/Ngozi Proiect (Cr. 1192-BUt Attached, for information, is a copy of a report entitled "Project Completion Report on Burundi - Integrated Rural Development/Ngozi Project (Credit 1192-BU)" prepared by the Africa Regional1Office. This project has not been audited by the Operations Evaluation Department at this time. Attachment 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 Dank authorization.  FOR OMCIAL USE ONLY PROJECT COIPLETION REPORT BURUNDI INTEGRATED RURAL DKVELOPMENT/NGOZI III PROJECT (CREDIT 1192-BU) Tabl, of Contents Paf e No. PRFACE ..... 0.................................... . EVALUATION SUMMARY . . . . . . . . . . . . . . . . . . . . . .iii PART I: PROJECT REVIEW FROM BANKI'S PERSPECTIVE ... . . . . . 1 1. Identity of the Project . . . . . . . . . . . . . .. 1 2. Background 1 . . . . . . . . . . . . . . . . . 1 3. Project Objectives and Description . . . . . . . . . . 4. Project Design and Organization . . . . . . . . . . . . 2 5. Project Implementation . . . . . . . . . . . . . . . . 3 6. Project Results 6 7. Economic Results 7 8. Project Sustainability . . . . . . . . . . . . . . . . 8 9. Bank Performance . . , . . . . . * . .. .. . . . . .a. 8 10O. Borrower Performance . . . . .. .. . . .. . . . . . .. 9 11. Consulting Services . . . . . . . . . . . . . . . . . . 9 12. Project documentation . . . . . . . . . . . . . . . . . 9 PART IIs PROJECT REVIEW FROM BORROWER'S PERSPEcrIVE . . . . . . 11 PART III: STATISTICAL INFORMATION . . . . . . . . . . . . . . . . 13 Table 1: Related Bank Credits ..... & ......................... 13 Table 2: Project Timetables ..........a....................... . 14 Table 3: Project Costs and Financing . . . . . . . . . . . . . . 15 Table 4: Main Project Objectives and Results . . . . . . . . . . 17 Table 5s: Economic Analysis ................... 19 Table 6: Compliance with Major Covenants . . . . . . . . . . . . 23 Table 7: Use of Bank Resources . . . . . . . . . . . .. . . .. 25 Maps: - IBRD 15322R: Location of Ngozi Project Area - IBRD 15323: Ngozi Project Area - IBRD 15324: Coffee Growing Area | This document has a restricted distribution and may be used by recipients only in the performance of their oflfcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  PROJECT COMPLETION REPORT BURUNDI INTEGRATED RURAL DEVELOPMENT/NGOZI III PROJECT (CREDIT 1192-BU) PREFACE This is the Project Completion Report (PCR) for the Integrated Rural Development/Ngozi III Project for which Credit 1192-BU in the amount of US$16.0 million was approved on December 8, 1981. Credit 1192-BU was closed on December 31, 1989, two years and nine months behind schedule, at which time the undis- bursed balance of SDR 1.7 million was cancelled (12 percent of the credit). The PCR was prepared by the Agricultural Operations Division of the South- Central and Indian Ocean Department (Preface, Evaluation Summary, Parts I and III). On llay 17, 1991 the Association sent the Borrower Parts I and III with the request to prepare Part II by August 17, 1991; no reply was received. Preparation of this PCR is based inter alia on the Staff Appraisal Report, the Credit Agreement, Supervision Reports, correspondence between the IDA and the Borrower, and internal memoranda.  - iii - PROJECT COMPLETION REPOkT BURUNDI INTEGRATED RURAL DEVELOPMENT NGOZI III PROJECT (CR. 1192-BU) EVALUATION SUMMARY Introduction 1. Agriculture is the major economic activity in Burundi and generates almost all foreign exchange, 90 percent of which is acco-rnted for by coffee. Foodstuffe make up a little less than 10 percent of imports. Impoverished soils and a degraded environment constitute a considerable threat to the agricultural potential of the country, 90 percent of whose population lives from farming in circumstances where population density exceeds 190 inhabitants per km2. The project was located in Burundi's most densely populated region and in its main coffee growing area. 2. The project signaled a change from the Government's previous agricultural development strategy. Instead of centralized governmentas departments being used to develop coffee production, Regional Development Comb L. ;s (RDCs) were to be created as decentralized agencies, to be made responsib)r for the integrated development of their respective regions (fooderops, coffee, infrastructure, erosion control). One RDC was therefore set up under this project to carry out the activities in the Ngozi region that had previousfy been the responsibility of separate departments. 3. The project was cofinanced by IDA, the International Fund for Agricultural Development (IFAD), the Kuwait Fund and Gove.nment. 'he project was managed according to annual work plans, which made it possible to adjust both activities, budgets and Credit category disbursements in the light of constraints and successes met during the execution process itself. Obiectives 4. The principal objectives of the project were to: (a) assist smallholders to improve the productivity of coffee and food cultivation; (b) improve ie quality of exported coffee; and (c) improve rural living conditions by builcin