Niger - Maradi Rural Development Project

Report No. 881a-NIR Appraisal of Maradi FILE COPY Rural Development Project Niger November 14, 1975 Western Africa Regional Office Not for Public Use U Document of the World Bank 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. CURRENCY EQUIVALENTS US$ 1.00 - CFAF 225 CFAF 100 = US$ 0.44 WEIGHTS AND MEASURES 1 metric ton = 0.984 ton 1 kilometer - 0.6215 mile 1 hectare = 2.47 acres ABBREVIATIONS ALC = Association Locale de Coopératives CFDT = Compagnie Française pour le Développement des Fibres Textiles CNCA = Caisse Nationale de Crédit Agricole CND = Conseil National du Développement CSPPN = Caisse de Stabilisation des Prix des Produits du Niger FAC = Fonds d'Aide et de Coopération MD M Ministère du Développement MERC = Ministère de l'Economie Rurale et du Climat MIP-T-U = Ministère des Travaux Publics et du Tourisme MSP-AS = Ministère de la Santé Publique et des Affaires Sociales OPVN = Office des Produits Vivriers du Niger PEU = Project Evaluation Unit PHU = Project Management Unit SONARA - Société Nigétienne de Commercialisation de l'Arachide UNCC = Union Nigérienne de Crédit et de Coopération FISCAL YEAR January 1 - December 31 NIGER MARADI RURAL DEVELOPMENT PROJECT Table of Contents Page No. SUMAARY AND CONCLUSIONS .......................... i-vi I. INTRODUCTION ..................................... 1 II. BACKGROUND ..................................... 1 A. General ...................................... 1 B. The Rural Sector .............................. 2 C. Ongoing Rural Development Projects ........... 6 III. PROJECT AREA ............. ....... 7 IV. TRE PROJECT ........................................ 10 A. Summary Description .......................... 10 B. Detailed Features ............................ 11 V. COST ESTIMATES AND FINANCIAL ARRANGEMENTS ........ 17 A. Project Costs ................................ 17 B. Proposed Financing ........................... 20 C. Procurement .................................. 22 D. Disbursement .................................. 23 E. Accounts and Audit ........................... 24 VI. ORGANIZATION AND MANAGEMENT ...................... 24 A. Organization ................................. 24 B. Staffing ...... ................................... 26 C. Staff Training ............................ 28 D. Cooperatives and Credit ...................... 28 E. Irrigation Schemes ........................ 29 This report is based on the findings of an Appraisal Mission which visited Niger in November 1973, and of an up-dating mission composed of Mr. J. Ropiteau, Mr. J. Ginnsz, and Mr. E. Sinodinos (RWA), which visited Niger in May 1975. Table of Conteuts (Continued) P 'No. VII. YIELDS AND PRODUCTION, MARKETING AND PRICES, FARMER BENEFITS, GOVERNMENT BENEFITS AND C( )PERATIVC BENEFITS .......................... 30 A. Yields and Production ........................ 30 B. Marketing and Prices ......................... C. Farmer Benefits ......................... 34 D. Impact of Project on Government Finances ..... 35 E. Capital Recovery in Irrigation Schemes ....... 35 VIII. ECONOMIC BENEFITS AND JUSTIFICATIONS ............. 36 IX. RECOMMENDATIONS ............................... 38 ANNEXES Annex 1 - Agricultural Statistics Table 1 - Land Use, Population by Area Table 2 - Gross Domestic Product at Current Prices Table 3 - Exports by Major Commodities Table 4 - Areas and Production of Major Crops Annex 2 - Institutions Involved in Rural Development Annex 3 - Agricultural Credit in Niger Table 1 - Caisse Nationale de Credit Agricole Comparative Balance Sheets Annex 4 - Agricultural Practices and Yields Table 1 - General Agricultural Production Table 2 - General Agriculture - Farm Budgets - Gross Income Table 3 - General Agriculture - Farm Budgets - Net Income Table 4 - General Agriculture - Labor Requirements Annex 5 - Road Project Component Annex 6 - Health Project Component Annex 7 - Irrigation Schemes Table 1 - Water Requirements Table 2 - Farm Budget Table 3 - Labor Requirements Table 4 - Project Production Table of Contents (Continued) Annex 8 - Training Annex 9 - Livestock Project Component Table 1 - Livestock Production Annex 10 - Evaluation and Planning Unit Annex 11 - Project Costs Table 1 - Page 1 - Summary of Project Cost and Financing Table 1 - Page 2 - Summary of Project Cost and Financing Table 2 - Page 1 - Staff Salaries Table 2 - Page 2 - Staff Salaries Table 3 - Building and Civil Works Table 4 - Equipment Table 5 - Vehicles Table 6 - Page 1 - Operating Expenses Table 6 - Page 2 - Operating Expenses Table 6 - Page 2 - Operating Expenses Table 7 - Revolving Funds Table 8 - Consulting Services, Studies, Audit, Scholarships Table 9 - IDA Disbursement Schedule Annex 12 - Terms of Reference Organization Chart Annex 13 - Project Impact on Government Cash Flow Annex 14 - Economic Prices Table 1 - Groundnuts and Cotton Lint Table 2 - Shelled Groundnuts Table 3 - Cotton Lint Annex 15 - Economic Calculations Table 1 - Rainfed Development - ALC without Roads Table 2 - Rainfed Development - ALC with Roads Table 3 - Irrigation Schemes Table 4 - Forestry and Livestock Table 5 - Sensitivity Analysis MAPS  NIGER MARADI RURAL DEVELOPMENT PROJECT Summary and Conclusions (i) The Republic of Niger has asked IDA for assistance in financing a rural development project in its Departement de Maradi. A feasibility study of the project was prepared by Fonds d'Aide et de Cooperation (FAC), and the project was appraised by IDA in the fall of 1973. A change of Government occurred in 1974, and it was not until early 1975 that the new Government reached agreement with IDA on the general organization of the project. A second appraisal mission visited Niger in May 1975. (ii) Government strategy for the rural sector is, first to attempt to introduce measures to maximize the rainfed potential in both crop and live- stock production, and second to increase the area under controlled irrigation. Improvement to the rainfed agriculture is the only way to help the great majority of people in the short run. In the long run, however, the impact of such projects will be eroded unless population pressure on the land can be lessened. It is clear that the problem of population growth requires priority attention. (iii) Broad development policy is established by the Conseil National du Developpement (CND). Although originally intended as a planning unit, solely responsible for making broad policy proposals for consideration by the Conseil Militaire Supreme, Government intends that CND directly supervise development projects. (iv) The project area comprises the Departement de Maradi, the head- quarters of which is the city of Maradi. The Departement exhibits to the fullest the highly intractable problems faced by many Sahelian areas. First its population is greater than its resources can support at anything much better than at subsistence level. Second, the scope for effecting any major improvement in living standards is low. Potential for gains in productivity' through using available technology is unlikely to exceed 30-50% above present low levels. The flood plain of the Maradi River, the so-called Goulbi de Maradi, constitutes the most prominent natural feature of the Departement. (v) The project would be carried out over a three year investment period, 1976-1978, by a Project Management Unit (PMU) established for this purpose. The project would comprise: (a) provision of production packages in the areas covered by 15 selected Associations Locales de Cooperatives (ALC); (b) strengthening of cooperative institutions; (c) expansion of educational and training programs including a functional literacy program; (d) expansion of an agricultural training school; (e) study of optimum means of developing the irrigation potential of the Goulbi de Maradi; (f) pilot development of irrigation in the Goulbi de Maradi through exploitation of the Goulbi's underground water resources; (g) construction of 80 km of feeder roads; (h) planting of 500 ha of trees in fuel wood plantations; (i) improve- ment of livestock services and preparation of a livestock development project; (j) provision of credit for the purchase of livestock by pastoralists who lost their herd during the Sahelian drought; and (k) establishment of a project evaluation unit. (vi) The 15 ALC that would participate in the project have been selected on the basis of their members' demonstrated acceptance of cooperative activities and receptiveness to change. On the basis of necessarily crude data, it is estimated that the 15 ALC would comprise 150 primary cooperatives, 750 villages and some 37,500 farm families. The ALC and their member coopera- tive societies would be strengthened with trained staff; they would benefit administratively and financially through being used as the channels for credit and input supply and through marketing project induced production. (vii) The project includes the expansion of educational and training pro- grams among the project area community: principally, functional literacy courses which would be taught by farm level extension agents, who would double as functional literacy teachers, during the season when agricultural activity is at a standstill. Participants would be taught reading, writing and simple arithmetic in Hausa, the vernacular. Some 11,000 adults would participate, of whom 2,000 would become fully literate. The health training program would be carried out under the supervision of the Ministry of Health. About 100 first aid assistants and 100 midwives would be trained under the program. (viii) Under the project, alternatives would be examined to determine the optimum means of developing the irrigation potential of the Goulbi de Maradi. The river supplies an underground aquifer, which can be tapped at depths of between 1 and 15 m in the flood plain. Up to now, Government has favored regulation of the river through a major barrage and the development of surface irrigation. This solution appears very costly and thus far, external financing agencies have exhibited little interest in such a project. Con- sequently, the irrigation potential of the Maradi River is largely un-used. Following studies of alternative development and provided that the selected alternative constituted a viable investment opportunity, a detailed feasibility study and plans for the irrigated development of the Goulbi would be prepared. Prima facie development of irrigation using groundwater is most economic, thus the project provides US$0.9 million for the development of an estimated 500 ha through wells. The finance would be provided in the form of a fund not res- tricted solely to the development of relatively large schemes (10 ha), but which could also be used for financing small developments such as simple wells or other hydraulic structures such as bas fond development. (ix) About 80 km of feeder roads would be built southwest of Maradi to facilitate project actions and generally improve communications in one of the most fertile areas in the Departement. A total of about 500 ha of fuel wood plantings would be made in the areas of the 15 ALC. The objective - iii - would be to establish one plantation of about 3 ha in one out of every five villages. The livestock services of Ministere de l'Economie Rurale et du Climat (MERC) in the Departement of Maradi would receive equipment, vehicles and finance to conduct routine vaccination campaigns and to treat calves, sheep and goats against internal parasites. About 800 destitute pastoralist families who lost everything during the drought would be provided herds to help reestablish their means of livelihood. A Project Evaluation Unit would be established to quantify project results. (x) Project costs net of import duties and other clearly identifiable taxes are estimated to total CFAF 2,670 million (US$11.9 million) of which the foreign exchange component would be US$5.9 million or 50%. Construction costs of the irrigation schemes assume that the labor needed in these opera- tions would be provided by the prospective users, who would be prepared to work for half the minimum daily wage for rural areas. Physical and price contingencies amount to CFAF 570 million (US$2.5 million) or 24% of base costs including taxes. (xi) It is proposed that IDA make a credit of US$10.7 million to finance 90% of total project costs excluding import duties and other identifiable taxes. The credit would cover the foreign cost estimated at US$5.9 million, and 81% of local costs excluding import duties and other identifiable taxes. The remaining 10% of project costs, and the taxes estimated at 10% of total project costs, or a total of US$2.5 million, would be met by Government. To ensure the efficient and timely execution of the project, assurances were obtained from Government that it would deposit an initial amount of CFAF 125 million into the Project's bank account, and that it would replenish the account quarterly. Retroactive financing by IDA of up to US$0.3 million is proposed to finance expansion of the extension workers' training center and to initiate the seed multiplication program for the 1976 cultivation season. (xii) The following procedures for procurement would apply: orders or contracts for equipment, vehicles, or chemicals with a value of more than US$50,000 would be through international competitive bidding. Such procure- ment is estimated to have a value of US$1.0 million. Contracts of less than US$50,000 would be procured on the basis of locally advertised competitive bidding procedures. Items too small to warrant competitive bidding would be procured locally under procedures acceptable to the Association. Construc- tion of the irrigation schemes would be by their prospective users. As there are no local contractors able to build the roads, and as these are too small and disperse to attract foreign contractors, the roads would be constructed by the Ministere des Travaux Public by force account. Contracts exempted from international competitive bidding would aggregate no more than US$1.9 million. Some US$6.7 million would be for expenses unsuitable for competi- tive bidding. Consultants providing technical assistance and carrying out various studies (US$1.1 million) would be recruited internationally. The remaining US$2.5 million would be for contingencies. - iv - (xiii) The project would be carried out by a Project Management Unit (PMU). In the case of its agricultural production components, implementation would be through farmers' cooperatives. PMU would be headed by a Project Manager responsible for day-to-day project implementation. He would report to the Prefet who in turn would be accountable to the CND. Coordination between PMU and other government activities in the Departement de Maradi would be assured by the Prefet assisted by the Comite Technique Departemental (COTEDEP). PMU would have four sections: Administrative section, Technical Operations Section, Cooperative Affairs Section and Community Development Section. PMU would be staffed with personnel seconded from the Ministere de 1'Economie Rurale et du Climat (1NERC) and Ministere du Developpement (MD). A number of project activities would be "contracted" with MERC-Service de l'Elevage for the livestock sub-project, - Service des Eaux et Forets for fuel wood planting material supply; Ministere des Travaux Publics et du Tourisme (MTP-T-U) for the road sub-project and Ministere de la Sante Publique et des Affaires Sociales (MSP-AS) for the health sub-project. During their initial two to three months with the project all staff would receive in- service training courses to acquaint them fully with project objectives and policies. Selected individuals would receive scholarships and fellowships for overseas training. All farm level extension workers would receive up to seven months training at the Centre de Formation des Jeunes Agriculteurs (CFJA) in Maradi. (xiv) Farmers cooperatives in Niger are concerned mostly with crop mar- keting and still require government assistance. Thus UNCC functions as a Government agency rather than as an autonomous apex cooperative organization. UNCC staff seconded to PMU's Cooperative Affairs Department would continue assisting cooperatives and ALC, and would seek to establish for each ALC and its member cooperatives a schedule with specific targets for the training of cooperative members to take over increasing degrees of responsibility for the management of their societies. (xv) The agency responsible for providing agricultural credit throughout the country, CNCA, has not had a very good record and has only just recently been reactivated. For these reasons it is proposed that PMU would operate the credit scheme for participating farmers and employ the cooperatives as the delivery system for such credit. Interest on all agricultural loans under the project would be at 10%, and no down payment would be required in view of the poverty of project area farmers. This rate is considerably higher than that prevailing in the rural sector, 2-3%; but reflects the cost of credit delivery, and the necessity to establish a revolving fund to finance agricultural credit in the project area. (xvi) The overall impact of the project, at full development in 1982 is estimated as bringing up average yields in the 15 project area ALC close to those which were obtained in the years of most favorable rainfall over the period 1967-1975. Yield increases are estimated to result in increments in annual production amounting to 18,100 tons of millet, 19,800 tons of un- shelled groundnuts and 600 tons of cowpeas by 1982. New production from -v - project established irrigated schemes is estimated at 500 tons of seed cotton, 900 tons of sorghum and 7,000 tons of tomatoes and other vegetables. Project induced livestock production would amount to 18,700 tons liveweight compared with 15,700 tons without the project. (xvii) Primary marketing of groundnuts would be done by the cooperatives which would sell to Societe Nigerienne de Commercialisation de l'Arachide (SONARA). Marketing of cereals, cowpeas and vegetables would be through the traditional network of private traders to whom participating farmers would sell their produce, and through Office des Produits Vivriers du Niger (OPVN). Groundnut producer prices, as well as prices paid SONARA by groundnut crushers, are presently adequate. However, to ensure that prices remain adequate, Government would establish a clear pricing and marketing policy. Objectives of the policy would be producer prices that provide adequate incentives to farmers, announcement of producer prices as early as possible and payment of economic prices by the groundnut processing industry. (xviii) Farmers' gross income from crop production, at 1975 prices, ex- cluding any income from participating in either the irrigation or the live- stock component of the project would increase some 47% between 1976 and 1982, and net income per day worked would increase from an average of CFAF 179 to CFAF 298 by 1982. Net income from a 0.50 ha holding of irrigated scheme is estimated to amount to CFAF 67,000 by the fourth year of its development after payment of all direct expenses and capital recovery. (xix) As the project disbursement period is only for 3 years and experi- ence in Niger has shown that it usually takes up to 5 years for cooperatives participating in an 'intensive agricultural project to generate sufficient funds to pay for cooperative extension workers, it has been assumed that Government would finance all support services until 1984, after which coop- eratives would become entirely self-supporting. Thus, Government in addition to making a capital contribution to project costs of CFAF 563 million would be required to allocate some CFAF 380 million annually after the end of the disbursement period until 1984 to maintain agricultural and other services needed to sustain project benefits. Cost of support services at the above level (equivalent to CFAF 10,000 per farm family) appears justified, given the incremental value of production induced by the project of CFAF 44,000 annually per farm family, or more than four times the cost of support services. (xx) The project's direct benefits would be the increased production it would generate which would result in higher incomes for some 37,500 farm families and 14,000 pastoral families. The economic rate of return from investment in the project is estimated at 39% over 25 years. Individual rates of return for the principal activities would be: Improvement of rainfed cul- tivation, 27%; Irrigation schemes, 20%; Livestock, 100%; Important assumptions used in the calculations are: (a) inclusion in the cost stream of the rain- fed development sub-project of costs incurred by PMU's Cooperative Affairs and Community Development Sections on the grounds that without these "social" - vi - services, the anticipated yield increases from rainfed crops would not be achieved; (b) no additional farm family labor would be required under the rainfed agricultural program, and, the additional farm family labor required on the irrigation schemes should be priced at the wage rate prevailing in the area or about half the official daily wage rate for the rural sector. (xxi) The sensitivity analysis indicates that the rainfed cropping com- ponent is most sensitive to changes in benefits or costs. Each variation of benefits or costs of 1% would for all main project components, except livestock, result in an absolute change of about 0.5 percentage points in the economic rate of return. (xxii) The project would have a number of secondary benefits not reflected directly in the economic rate of return calculations. Among these: (a) the impact of the functional literacy and health training programs; (b) the de- monstration effect of an integrated approach to rural development; (c) the planning of the development of the irrigation potential of the Goulbi; (d) the expansion of non-farm rural employment; and (e) the improvement of nutrition. (xxiii) The technical risks attached to the project are not considered large. A risk that cannot be eliminated or significantly reduced is that inherent in the climatic vagaries which bedevil Niger. However, given the project's relatively high rate of return, its economic viability would not be jeopardized by the statistically unlikely recurrence of drought of the magnitude experienced in the period 1967-1974. (xxiv) On the basis of the assurances set out in Chapter IX, the project is suitable for an IDA credit of US$10.7 million. NICER MARADI RURAL DEVELOPMENT PROJECT I. INTRODUCTION 1.01 The Republic of Niger has asked IDA for assistance in financing a rural development project in its Departement de Maradi. A feasibility study of the project was prepared by Fonds d'Aide et de Cooperation (FAC) of France, and the project was appraised by IDA in the fall of 1973. A change of Government occurred in 1974, and it was not until early 1975 that the new Government reached agreement with IDA on the general organization of the project. A second appraisal mission visited Niger in May 1975 to update project details, and this report was prepared by that mission which consisted of Messrs. Ropiteau and Ginnsz (HQ) and Sinodinos (RNWA). 1.02 The proposed project would be the second in Niger's agricultural sector to be financed by IDA. The first, Credit 207-NIR for US$0.6 million was made in 1969 and signed in 1970. The project was designed to assist farmers by providing credit through the Government agricultural credit bank, Caisse Nationale de Credit Agricole (CNCA), and by strengthening the coopera- tive movement by financing additional extension agents for Union Nigerienne de Credit et de Cooperation (UNCC). The project covered the period 1971 through 1974 thereby coinciding with the worst drought of the century. Undoubtedly this depressed farmer response, and the volume of farm credit disbursements was about 23% of that estimated at appraisal. It would appear, however, that an equally and probably more significant constraint was Niger's poorly devel- oped credit, input and extension delivery systems. Credit, input supply and extension arrangements incorporated in the project appraised in this report would be integrated, an approach that elsewhere has been shown essen- tial for the success of a program aimed at helping large numbers of small farmers. Credit 207-NIR lacked this integrated approach. It is proposed that Credit 207-NIR be closed and that the US$260,000 remaining in the IDA credit account be cancelled. In retrospect it would appear that Credit 207-NIR was premature and failed to achieve its objectives chiefly because of insti- tutional deficiencies. II. BACKGROUND A. General 2.01 Niger is one of the largest landlocked countries in Africa, covering about 1.3 million km . Lying between latitudes 100 and 250 ( see Map), its rainfall decreases from between 700 and 800 mm annually at its southern border with Dahomey and Nigeria to amounts inadequate to support permanent - 2 - farming systems, less than 150-200 km further north. About 75% of the country is desertic, less than 10% suitable for crop production and much of this of very low potential. About 2% of the land area is cultivated. Rainfall is highly variable both within years and from year to year, and consequently, drought to one degree or another is a common occurrence. In the period 1968-1973, drought reached catastrophic proportions. 2.02 About half of the country's some 4.3 million people live between the southern border and the 500 Tm isohyet, the best rainfall area. In this area f approximately 100,000 km population pressure averages only about 20/km 2 although in valleys where the soils are better it may be as high as 100/km . Population growth is estimated at a minimum of 2.1% p.a. GNP is low and was estimated in 1972 at about US$90 per capita; because of the drought, it is believed to have decreased in 1973 and 1974. Agriculture, including animal husbandry, contributes some 41% of GNP, but its growth is hardly keeping pace with population growth. The Sahelian drought of 1968-1973 brought about sharp declines in the contribution of the rural sector to GNP, from 61% in 1972 to 38% in 1974. The situation is returning to normal following the average rainfall which occurred in 1974. In 1975, agriculture's contribution to GNP is expected to increase to 47%, although the national livestock herd is still well below its pre-drought level in the zone north of the 500 mm isohyet. 2.03 Rural activities account for about 60% of exports, mostly groundnuts and livestock. In 1972, such exports amounted to CFAF 9.3 billion in value (US$41 million) of which groundnuts, CFAF 4.6 billion and livestock (mostly live animals), CFAF 2.7 billion. The balance of exports is principally uranium from the Arlit mines; uranium production and exports have been grow- ing steadily since production started in 1971, prior to which agriculture accounted for some 90% of exports. Recently there have been indications that petroleum may be present in economically exploitable volumes. B. The Rural Sector 2.04 The rural sector, statistics of which are at Annex 1, directly supports about 90% of Niger's population. The large bulk of these are mem- bers of farming families, about 80%, and the remainder nomadic or semi-noma- dic pastoralists. There are two major farming zones. First, the 550 km of the valley of the Niger River where the seasonal flooding of low-lying areas is used for the cultivation of floating rice (yields average some 600 kg/ha) and where about 2,000 ha are equipped for modern double crop irrigation. Second, and by far most important, is the roughly 10% of the country lying between the country's southern boundary and about the 400 mm isohyet. In this area rainfed agriculture is practiced, the main crops being millet for home consumption and groundnuts for export; the project area forms an import- ant part of this second zone, Chapter III. 2.05 The rural people are universally poor. Crop farmers, with an insignificant number of exceptions, are small farmers cultivating their land with hand tools and without the use of modern methods or inputs. Per capita incomes of farm family members were estimated at an average of about CFAF 14,000 annually in 1970 (US$60), of which about one-third cash income, compared to CFAF 90,000 for urban people. Those of pastoral families were estimated to be lower. Rural incomes decreased significantly in 1972 and 1973 as a result of the drought, perhaps by as much as 50%. 2.06 The potential of the sector in terms of scope for increasing total production and for generating the means of improving the living standard of rural people is not large. This is because of the sector's dependence on a rainfall that is low in total amount and variable in distribution, and of a rather restricted potential for irrigation. The rainfall constraint places a relatively low ceiling on the potential of the rainfed agriculture that supports the great bulk of rural people, and worse, makes it inevitable that from time to time production and incomes will be sharply depressed through drought. Thus in the drought period 1968-1973, sizeable food imports became necessary, groundnut production dropped to about a quarter of normal levels, at least one-third of the national cattle herd was lost, and the economy as a whole was seriously disrupted. 2.07 Government Strategy. Government strategy for the rural sector is, first, to attempt to introduce measures to maximize the rainfed potential in both crop and livestock production, and second, to increase the area under controlled irrigation. Improvement of the rainfed agriculture is the only way to help the great majority of people in the short run, and the project appraised in this report is an example of implementing this type of action. In the long run, however, the impact of such projects will be eroded unless population pressure on the land can be lessened. It is probable that in many areas population already exceeds the level that is in equilibrium with the area's natural resources, and this excessive population may be irreversi- bly depleting these resources. It is clear that the problem of population growth requires priority attention; so far, however, Government has yet to tackle this crucial issue. In the case of irrigation, Niger has about 55,000 ha that could be irrigated from the Niger River, and possibly another 100,000 ha from the water resources of the Lake Chad complex. Government sees a modern and substantial irrigated sector insulated from the rainfall constraint inter alia as a cushion against the disruptive impact of drought years and through diversifying crop production as a means of developing new agriculturally based industries, replacing farm originating imports and possibly generating new exports. Importantly, it believes that irrigation is a means of assuring rural people of a standard of living reasonable in terms of income and security. Up to now, however, the costs of irrigation in Niger have been high and thus irrigation cannot be considered a panacea for the rural sector's problems. Nonetheless, Government correctly has embarked on a modest program of irrigation development, about 800-1,000 ha annually that should permit the growth of the institutions and acquisition of skills that are essential if Niger is to efficiently realize its irrigation poten- tial. Government has asked the Bank Group for help in financing this program. 2.08 Implementation of programs to help any large proportion of the population will be costly. Rainfed farming production schemes typically involve capital costs per family on the order of CFAF 80,000 (US$360). Livestock programs are more costly at about CFAF 180,000, and irrigation extremely expensive at about CFAF 1 million (US$4,500) per farm family. Thereafter, significant recurring costs are associated with such programs. Despite much foreign aid, the costs of programs capable of assisting signifi- cant numbers of people, as well as those essential for improving the country's limited social and physical infrastructure are enormous compared with the country's restricted resources and very thin tax base. 2.09 In order to achieve development with its limited resources, Govern- ment has embarked on a policy of sponsoring community development and farmers' cooperatives. This is an attempt to mobilize to the fullest possible extent the contributions that can be made by the people themselves in, for example, contributing their labor to the construction of schools and wells, organizing themselves for the delivery and recovery of credit, and employing their own extension agents and other advisory and educational aides. 2.10 So far, Government has had success in programs such as the teaching, outside of formal school, of people to read, write and count in their tribal languages, and organizing self-help, for example, in the construction of sim- ple village water supplies. Also, through the joint efforts of Government's agency responsible for sponsoring farmers' cooperatives, UNCC (Annex 2), and Government's community development services, the Service de l'Animation, a cooperative movement is developing among farmers. Government, aware of its severe financial restrictions, is determined to pursue these programs as being the only courses of action likely to bring permanent benefits to a sig- nificant proportion of the community. The approach is practical, deserves. support, and would be so supported under the project described in this report. 2.11 Broad development policy is established by the Conseil National du Developpement (CND). CND is headed by the Vice-President of the Conseil Militaire Supreme who is also Ministre du Developpement (MD). CND has its own secretariat, including a small group of specialists in economics, agronomy and planning, and is authorized to conduct studies on its own account. Al- though originally intended as a planning unit, solely responsible for making broad policy proposals for consideration by the Conseil Militaire Supreme, Government intends that CND directly supervise development projects; this would be so in the case of the proposed Maradi Project. Within the frame of policy and strategy established by CND and the Conseil Militaire Supreme, the MD is responsible for detail planning assisted by the planning units in the operational ministries; in the case of rural development, the Ministere de l'Economie Rurale et du Climat (MERC). 2.12 Government Fiscal Intervention. Government fiscal intervention in the sector is concerned with price fixing for the principal commodities, especially the export crops, and the subsidization of farm inputs and credit (Annex 3). Price fixing is of practical consequence only in the case of -5- groundnuts, the single most important foreign exchange earner, and cotton, for which there are monopoly buying agencies: Societe Nigerienne de Commercialisation de l'Arachide (SONARA), and Compagnie Francaise pour le Developpement des Textiles (CFDT). Official producer prices for foodcrops tend to be important only when Government's Office des Produits Vivriers du Niger (OPVN) makes purchases of grain for reserve storage or for distri- bution in deficit areas, or in the case of UNCC supervised irrigated per- imeters when the official price for paddy rice is imposed and is offset by producer subsidies in the form of cheap water supply for irrigation. Until 1974, official producer prices paid by OPVN were well below free market prices which reflected the general shortage of food in the country and was a direct consequence of the drought. However, the present official producer price of CFAF 20/kg for sorghum is adequate, and competitive with the free market price. In the case of groundnuts and cotton, producer prices, prior to 1974 were fixed below the economically feasible level. This allowed SONARA and CFDT to make sizeable remittances to Government's Caisse de Sta- bilisation des Prix des Produits du Niger (CSPPN). SONARA remitted CFAF 1.8 billion (US$7.2 million) to CSPPN in the fiscal year 1972/1973, and CFDT, CFAF 0.1 billion (US$0.4 million). Government treated CSPPN funds as a quasi-tax and used them for taking equity in commercial ventures and making loans to public agencies and the treasury. In 1973/1974 groundnut production fell 70% from 1972/1973 level, and SONARA was unable to make any remittances to CSPPN. 2.13 The new Government's political decision to favor the rural sector has been translated into significantly increased producer prices, heavy subsidization of inputs, and of credit terms. This undoubtedly will result in a short term boost of agricultural production, but raises the question of how long this policy can be pursued without endangering the economic development of the country. In 1974, Government increased producer prices* for cash crops significantly: 129% for decorticated groundnuts, from CFAF 24/kg to CFAF 55/kg, and 29% for first quality seed cotton, from CFAF 37/kg to CFAF 47/kg. The producer price for groundnuts now reflects the full economic value of the commodity and most likely will have to be reduced in the future, if the price projections of the Bank's Economic Commodities and Export Projections Division (ECEP) obtain. At the present level of producer prices no surplus will accrue to CSPPN from groundnut production, and SONARA will most likely operate at a loss, unless its expenses are covered by Government subsidy transfers. It is unlikely that Government could reduce groundnut producer prices, as it just increased them and as it has to take account of actions taken in Nigeria. In Nigeria, Government is subsidizing groundnut growers by paying them more than the full economic value of CFAF 66/kg (20% more than in Niger). Given the ease of movement between the two countries (para 3.03), a relatively high price in Niger is needed to reduce the risk of groundnuts moving illegally from Niger to Nigeria and the loss to Niger of official foreign exchange earning exports. Furthermore, Niger cannot take the risk of announcing its groundnut producer prices before Nigeria, and prices are usually announced too late to - 6 - have any meaningful impact on the area under cultivation. The present producer price for seed cotton is some 20% below the full economic value of CFAF 58/kg. This should leave adequate operating margin to CFDT and allow a small surplus to accrue with CSPPN. 2.14 Government practices a policy of heavy subsidization of agricultu- ral inputs. Fertilizer prices to farmers have been kept at CFAF 20/kg since 1972, while import prices of fertilizers have nearly doubled. Insecticides were given free to cotton growers in 1974, and will be sold for CFAF 450/ liter in 1975. The subsidy element in 1975 is 80% for fertilizers and about 67% for insecticides. Given the very high cost of fertilizers and pesticides, all of which must be imported, and the generally backward nature of Niger's agriculture, subsidies appear necessary to encourage input use. However, a subsidy of 80% for fertilizers appears unnecessarily high, and a program leading to a reduction of the subsidy level was agreed with Government at negotiations (para 5.05). 2.15 Agricultural credit is provided by CNCA (Annex 3). CNCA is wholly owned by Government and works closely with UNCC, with which it shares a common board of directors, and through whose agents it operates in the field. Total lending is low, and at September 30, 1974, medium-term loans outstanding totalled only CFAF 423 million. Marketing and other seasonal credits have been running at about CFAF 300 million annually. In the past, interest rates have been around 10% compared with a central bank discount rate of 5.5% in recent years. Government is now considering an interest rate of 2-3%, which would involve a major subsidy. For the Maradi Project, it is proposed that interest rates should be 10% for both short and medium-term credit, and it is not believed that this rate will significantly limit the demand for credit. Demand for credit in the Departement outside the Project area would be minimal, and there should be no conflict between the Project and the other areas over credit terms and input prices. C. Ongoing Rural Development Projects 2.16 Under its plans for the intensification of rainfed agriculture Government has initiated with the assistance of foreign aid donors integrated projects in the Badeguicheri (FED, 1971); Zinder (FED, 1972); and Dosso (FAC, 1974) areas. The objectives of these projects are similar to those of the project appraised in this report, i.e., improvement of agricultural production through the provision of credit, extension and inputs and provision of improved infrastructure - especially roads and water supplies. In all three projects, as will be the case in that of the Maradi Project, cooperatives and the UNCC play a key role. Performance has not been in line with expecta- tions, not least because farm production has been badly disrupted by the drought. Nonetheless, it appears that problems have arisen in project manage- ment that, even given good growing conditions, would have constrained perform- ance. The basic problem appears to be that the Project Managers are not fully - 7 - in control of project operations. This situation has arisen because Govern- ment has chosen to permit each of the agencies involved in project operations to work independently in the frame of an effort coordinated, but not defini- tively controlled, by the Project Manager. For each of the three projects the Project Manager is the senior UNCC official in the area and he is required to call upon his colleagues of equivalent rank in a number of Government agencies, importantly, the technical services of the Direction de l'Agri- culture in MERC, of the Services de l'Animation (Community Development Service), and of the Services de l'Alphabetisation (Functional Literacy Service), in MD. This form of coordination has proved only partially successful, and in the Maradi Project, the Project Manager would directly control the equipment and staff required to execute the project satisfactorily (see Chapter VI). It is believed that this new arrangement should remove the organizational problems that have bedevilled the ongoing projects. III. PROJECT AREA 3.01 The project area comprises the Departement de Maradi, the headquar- ters of which is the city of Maradi. Administratively the Departement is in the charge of a Prefet. The Prefet is responsible directly to the President of the Comite Militaire Supreme for the administration of the Departement, and he is the representative of CND, the supreme instrument for directing develop- ment policy (see para 2.11). 3.02 The city of Maradi is the market center for central Niger and for trade between Niger and Nigeria, see Map 10833. Maradi and Kano, the principal city of northern Nigeria, which is an important railhead and which has an international airport, are linked by about 250 km of paved road. This road is in excellent condition on the Nigerian side, and its 50 km in Nigerien territory are being repaired and widened, with Bank Group assistance, to better enable it to provide for traffic now in excess of 250 vehicles/day. On the other hand, the road link with Niamey, the nation's capital, is poor. 3.03 Ninety percent of the Departement's population are of the Hausa tribe, the predominant ethnic group of northern Nigeria. Official trade movements north and south with Nigeria, the almost uncontrolled crossing of livestock herds on north-south transhumance, and difficulties in controlling the move- ment of people and goods across the border have tended to maintain a strong connection between Maradi and the towns and districts of northern Nigeria, despite the erosion of traditional ties. This relationship is and will con- tinue to be a very important factor in plans for economic development in the Departement. 3.04 The climate of the Departement is Sahelian; this is characterized by a dry season of eight months in which crops will not grow without irriga- tion. There are no major surface water resources available for irrigation in the district, except the seasonal Maradi River (see para 3.10). This conceiva- bly has the potential for about 3,500 ha of irrigation, but the exploitation - 8 - of this reqource is fraught with nany problems and inevitably will be expensive. Groundwater resources are adequate for domestic and livestock consumption throughout the Departement, but it appears that there is no renewable ground- water source, other than that asscciated with the flood plain of the Maradi River, that could permit any significant amount of irrigation. Consequently, agricultural production in the district primarily is rainfed, and the intensity and type of production governed by rainfall. At the border with Nigeria rainfall is about 750 mm annually; at the latitude of Maradi about 600 mm; thereafter it declines by about 100 mm for each 50 km of latitude (see Map 10834). Soils are generally heavier in the south, becoming increasingly less fertile and lighter with increase in latitude. Sorghum and millet are the principal cereal crops (60-65% of the area farmed in most cases), niebe (cowpeas) is the major grain legume grown for domestic consumption, and ground- nuts are the cash and export crop. Small amounts of cotton and tobacco are also grown. In the flood plain of the Maradi River some primitive shadouf irrigation from open wells is practiced and vegetables such as peppers, tomatoes, and fresh corn are grown. In the south of the Departement, around Maradi, the land is intensively farmed, and because of population pressure the opportunity for fallowing land is very limited. North of Maradi farms become larger and soils, rainfall and yields much poorer. At about latitude 15oN more or less that of Dakoro, the second largest town of the district, and where rainfall is around 350 mm, major arable farming activity ceases and is replaced by pastoral activities, principally the traditional herding of cattle, sheep and goats by nomadic and semi-nomadic tribesmen. 3.05 The Departement of Maradi extends over 38,600 km2 and in 1972 had a population estimated at 770,000, or 16% of Niger's total population. Town dwellers, mostly in Maradi and Dakoro, are estimated at 40,000 persons; mem- bers of farm families at 650,000; and pastoralists, mainly Peuhls, at 80,000. Population is estimated to be growing at 2% annually. Most people live in* villages that typically are of around 300 inhabitants. The average farm family appears to be about 6.3 persons, 3 of whom are adult (Annex 4). In the south farms average about 5.5 ha and are somewhat larger further north. Farmers do not hold land titles but have the right of usufruct which gives them satisfactory security of tenure. Most farms are cultivated by hand; while relatively large by West African standards, these farms are quite manageable by the average family because of their light and easily worked soils. 3.06 The Departement of Maradi exhibits to the fullest the highly intrac- table problems faced by many Sahelian areas. First, its population is greater than its resources can support at anything much better than at subsistence level. Second, the scope for effecting any major improvement in living standards is low because (a) excepting a major mineral discovery, the develop- ment of industry on any scale in this isolated area is inconceivable, and (b) low rainfall, lack of irrigation potential, indifferent soils, and heavy and increasing population pressure make the potential for gains in product- ivity through using available technology unlikely to exceed 30-50% above pre- sent low levels. Per capita incomes in the Departement now average about CFAF 14,000/annum (US$60). Clearly, therefore, agriculture will never be the - 9- means through which the people of Maradi will attain levels of nutrition and consumption minimally acceptable in developed countries. Worse, however, there is a probability that whatever improvements can be made in the short run, for example as the result of actions described in this project, will be vitiated in the long run by deterioration in the environment due to increasing population pressure. Clear results of this pressure are events such as the movement of farming further north into agriculturally more inhospitable areas and the consequent forcing of pastoralists closer to the fringes of the desert, and the development of a shortage of wood for domestic fuel because of the progressive removal of tree species. A very few years ago farming ceased just north of Maradi; today it extends as far north as Dakoro. Consequences of these events are the destruction of tree and shrub cover, increasing deser- tification, and the placing of an increasing proportion of the Departement's population at severe hazard in the event of drought. In the long run signifi- cant improvement in rural incomes, living standards, and food security in the Departement appears possible only through significant migration from the land, the reduction of population pressure and the adoption of farming and pastoral systems in better equilibrium with the area's limited natural resources. 3.07 The Departement's internal road network is thin. There are some 580 km of national roads, of which 190 km are Class I and surfaced with bitumen; 224 km Class IIA and laterite surfaced; and 166 km Class IIB, unsurfaced sandy tracks. Further details are in Annex 5. Many important farming areas are more than 50 km from a surfaced road. 3.08 Social infrastructure. Medical services are staffed by four doctors. There is no hospital but there are 23 dispensaries and four maternity clinics. The health situation generally is poor, see Annex 6. The Departement has 120 schools with an attendance of about 15,000; this attendance is equivalqnt to about 11% of the school age population and is about standard for the country. 3.09 Rural development services. All arms and agencies of the Ministries concerned with development are represented in the Departement. Lack of funds and staff are the principal constraints, but despite that, good work has been done in activities such as cooperative development. There are some 400 primary marketing cooperatives in the Departement, which are further organized into 40 Associations Locales de Cooperatives (ALC), which through the agency of UNCC maintain the accounts of the primaries and handle secondary marketing, and 155 functional literacy training centers. By and large, however, services such as credit, input supply and effective agricultural extension are insignif- icant or absent. 3.10 The flood plain of the Maradi River, the so-called Goulbi de Maradi, constitutes the most prominent natural feature of the Departement. It lies south and southeast of Maradi. The Goulbi de Maradi is seasonal, flowing for about five months, May-October. Over a period of time the river has built up a flood plain of alluvium over which it spills out of its channel at times of peak flood. The river bed is being built up by the deposition of silt; this is slowing down the river's flow and in turn increasing the rate of siltation. A consequence of these developments is that the river - 10 - now breaks out of its channel and floods the plain more frequently; in 1974 this resulted in severe flooding of Maradi town. The river supplies an underground aquifer which can be tapped at depths of between 1 and 15 m in the flood plain. This aquifer could be a source of irrigation water, and a groundwater development program is one means of using this resource. Up to now, however, Government has favored regulation of the river through a major barrage and the development of surface irrigation. This solution appears very costly, and thus far, external financing agencies have exhibited little interest in such a project. IV. THE PROJECT A. Summary Description 4.01 The project would be carried out over a three-year investment period, 1976-78, by a Project Management Unit (PMU) established for this purpose, see Chapter VI. The PMU would be provided with vehicles, equipment and a headquarters. Housing for PMU personnel would not be constructed, as sufficient Government owned or rentable housing is available. The project would comprise: (a) provision of production packages - extension, applied research, credit, and input supply - aimed at the im- provement of the productivity of groundnuts, millet and cowpeas grown in the areas covered by 15 selected ALC's; (b) strengthening of cooperative institutions; (c) expansion of educational and training programs, including a functional literacy program among the project area community; (d) expansion of a training school for extension workers from a capacity of 40 to 100, and the provision of training scholarships for project personnel; (e) study of the optimum means of developing the irrigation potential of the Goulbi de Maradi; (f) pilot development of irrigation in the Goulbi de Maradi through exploitation of the Goulbi's underground water resources; - 11 - (g) construction of 80 km of feeder roads to provide communications within a fertile but hitherto isolated sector of the project area; (h) planting of 500 ha of trees in fuel wood plantations; (i) improvement of livestock services in the project area and preparation of a livestock development project; (j) provision of credit for the purchase of livestock by pastoralists who lost their herds during the Sahelian drought; and (k) establishment of a project evaluation unit to establish and record the economic and social impact of the project. B. Detailed Features Production Packages 4.02 The 15 ALC's that would participate in the project have been selected on the basis of their members' demonstrated acceptance of cooperative activ- ities and receptiveness to change, see Annex 4. Nine of the ALC's are in the Southern Sandy Zone (SSZ) and six in the Northern Sandy Zone (NSZ). On the basis of necessarily crude data it is estimated that the 15 ALC's would com- prise 150 primary cooperatives, 750 villages and some 37,500 farm families. About half the primary cooperatives are already operating in the project area, and the other half would be established (para. 6.13). 4.03 Details of the production packages are given in Annex 4. The tech- niques advocated by the extension service for adoption by farmers and sup- ported by the input supply and credit programs would be relatively simple, proven through past testing in the Departement and known to be acceptable to reasonably receptive growers. Fertilizers would be recommended only for groundnuts - the principal cash crop of the SSZ, and for cowpeas (niebe) which holds the same position in the NSZ. Other recommended inputs would be fungicidal seed dressing on all crops, improved varieties of groundnuts, cowpeas, and millet - the project would organize the multiplication of the seed of these, see para 4.04, and the chemical control of the fungus and insect pests of cowpeas. Farmers would also be advised and encouraged to adopt the more timely planting and weeding of their crops. Importantly a major effort would be made to introduce ox-drawn cultivation in the project area. Provision is made in project costs of CFAF 22 million for the purchase of cultivation equipment that would be sold to farmers on credit. - 12 - 4.04 Seed required by project: farmers would be multiplied under programs operated by PMU. The first two steps of groundnut seed multiplication would be conducted by selected farmers under contract to PMU, and the third and final steps by the "blanketing" of chosen cooperatives from whom it would be purchased by PMU at a premium of CFAF 2/kg for distribution. Multiplication of improved millet and cowpea seed would also be by farmers under contract. The objective of the project's seed multiplication activities would be to renew all groundnut seed used in the project area once every four years. By the third year of the project it is estimated that some 800 tons of improved groundnut seed would be required, together with 200 tons of millet and 50 tons of cowpea seed. 4.05 To further support the productivity program, the project would finance an agricultural research worker who would be resident at the Tarna research station located at Maradi. Research conducted would be of an adaptive nature, including field trials within the project area. The research worker would act as liaison between PMU and its need for research results of a practical and economic value and the USAID assisted national research agency operated Tarna station. Strengthening of Cooperative Institutions 4.06 The ALC's and their member cooperative societies would be strength- ened with trained staff, see Chapter VI; they would benefit financially through being used as the channels for credit and input supply (by project year 3 credit requirements should amount to some CFAF 150 million annually) and through marketing project induced production, see Chapter VII. Coop- erative institutions would also be strengthened by providing farmer members with training both in agriculture and in cooperative affairs and management. Such training would be provided in the five-month season, roughly December through April, when agricultural activity is at a standstill. The objective would be to provide 7,500 farmers, one in five, with such training. Train- ing sessions would be short, a maximum of one week and thus would not upset the family life of the participants. Training courses would be held at existing centers at each of the 15 ALC's participating in the project. Tests would be made of the feasibility of providing more comprehensive courses for younger farmers (18-25). Under these, farmers would attend courses at some of the centers in which they would alternate two weeks at the center and two weeks at home through a single growing season. The objectives of these courses would be the achievement of literacy and a deeper knowledge of the basics of agriculture. Expansion of Educational and Training Programs among the Project Area Community 4.07 Principal among these programs would be those devoted to functional literacy and health. The community development section, see Chapter IV, would operate these programs. Functional literacy courses would be taught by farm level extension agents who would double as functional literacy teachers. Participants in the courses, mainly working farmers, would be - 13 - taught reading, writing, and simple arithmetic in Hausa, the vernacular. Some 250 functional literacy centers, one for each farm level agent, would be equipped with simple teaching aides under the project. Each course would last 3 months in each of two consecutive dry seasons. It is expected that some 11,000 adults would participate, of whom about 2,000 would become fully literate. The health training program would be carried out under the super- vision of the Ministry of Health. Volunteer first aid assistants and mid- wives would be selected by PMU for training in basic skills at the Maradi dispensary. A total of about 100 first aid assistants and 100 midwives would be trained under the program. Each person trained would be provided with a basic kit financed under the project. Renewal of the kit would be paid for by the community from fees charged by first aid volunteers and midwives. 4.08 In order to support the development of ox-drawn cultivation, train- ing would be provided in blacksmithing, see Annex 8. The objective would be to train and establish one blacksmith to serve two cooperatives participating in the project, i.e., to train 60 blacksmiths over the three-year project period. Training would be conducted in the shop of an established black- smith under the supervision of PMU's technical services section. The proj- ect would provide equipment for these training shops and provide on credit the basic tools needed by graduating blacksmiths, an estimated CFAF 70,000 per blacksmith. Extension Workers and Scholarships for Staff Training 4.09 The Centre de Formation des Jeunes Agriculteurs (CFJA) located at Maradi would be expanded under the project with the buildings and equipment necessary to enable it to increase its output of farm level extension agents from 40 to 100 annually. Graduates from CFJA, who would receive training over one seven-month long growing season and who would be paid by the proj- ect during this period would be employed as cooperative extension agents under the project. An amount of CFAF 15 million would be provided under the project to fund scholarships for deserving project staff in either national or foreign institutions. Study of Optimum Means of Developing the Irrigation Potential of the Goulbi de Maradi 4.10 The potential of, and the prospects for and means of realizing the irrigation potential of the Goulbi is referred to in para 3.10 and in more detail in Annex 7. Two major alternatives for exploiting the Goulbi exist; surface water irrigation and irrigation using groundwater. Possibly a mixture of techniques is a third alternative. Under the project the alternatives would be examined to determine their comparative merits in tech- nical, economic and financial terms. Following this and provided that the selected alternative constituted a viable investment opportunity, a detailed feasibility study and plans for the irrigated development of the Goulbi would be prepared. Such a study, which would necessarily cover means of regu- lating the flood of the Maradi River, would also address itself to the specific needs of protecting the town of Maradi against flooding and of - 14 - connecting Maradi, most probably by bridge, with fertile areas to its west and southwest, which are now cut off for a substantial part of the year. An estimated 52 man-months of consultants' time would be required for study of the alternatives, draft terms of reference for which are at Annex 7. Development using the groundwater supply appears to offer the highest return, at the least cost; for this reason the project includes an irrigation fund to finance small scale groundwater irrigation schemes. A condition of disbursement of the irrigation fund would be the satisfactory conclusion of the study of alternative methods of irrigation development and its recommendation to pursue groundwater irrigation development. The river is in the process of fossilization, i.e., it is drying up, albeit at a very slow rate. The possible arrestation of the process will depend upon whether conservation measures are practiced in its catchment area, which lies prin- cipally in the Katsina Province of Nigeria. Assurances were obtained during negotiations that Government would open discussions with Nigeria with a view towards reaching agreement on the use of the water of the Maradi River and on a material program of catchment conservation. These discussions could take place in the frame of the Niger River Commission. The Commission's headquarters are in Niamey. Pilot Development of Irrigation 4.11 Annex 7 details the prospects for groundwater development in the Goulbi. Prima facie groundwater development appears substantially cheaper than a surface irrigation alternative such as that proposed by the French consulting firm SOGREAH in 1964 and for which a cost of at least US$7,000/ha irrigated in terms of 1975 dollars is indicated. Under the project, finance would be provided for the development of an estimated 500 ha of irrigation, at an estimated capital cost of US$1,900/ha. Such irrigation development typically would be in the form of small perimeters of about 10 ha provided with water from a well sunk into the aquifer and equipped with a pump. It is estimated that 20 such wells and perimeters could be constructed in project year 2 and a further 30 in project year 3. Consequently, before construction started, preliminary results of the Goulbi irrigation studies would be known and, in the event, as expected, that the groundwater alternative would be shown to be economic, the 500 ha of proposed irrigation would serve as a pilot to implementation of a major scheme of Goulbi development. In any event there are areas of the Goulbi where groundwater and surface water exploitation would not be mutually exclusive and where given the time taken to plan, finance, implement and commission a major surface water irrigation scheme, some earlier development of the groundwater potential would be fully justified. 4.12 Under the project a total of US$0.9 million excluding price and physical contingencies would be provided in the form of a fund for irriga- tion development. The IDA share of these funds would be committed through a system of IDA approval of the detailed proposals for each well and its perimeter. Assurances to the foregoing were obtained at negotiations. - 15 - Evaluation of these proposals would include technical, social, economic and financial analyses. Niger has experience of such an approach through the Drought Relief Fund Project, Credit NIR 441. Law 68/28 of 1960 which regulates allocation of land on Government developed irrigation schemes would apply: (a) farmers already cultivating where a scheme is established would receive priority; (b) they would be guaranteed security of tenure as long as they cultivate their plots personally; and (c) they would be allotted 0.25 ha per active member of the family. In addition, participating families would have to provide the unskilled labor needed for sinking the well, land leveling and for construction of the irrigation canals and flood protection dikes. The organization of the schemes is discussed in para 6.15. Use of the irrigation fund would not be restricted to such relatively large develop- ments; but would also be used, if needed, for financing small individual developments such as a simple well from which water would be lifted by hand or animal power for garden irrigation, or other hydraulic structures in the project area such as bas fond development, i.e., the construction of retain- ing dikes in depressions to collect and utilize rainfall that otherwise would run off. The cropping pattern of the irrigation schemes would be approximately as follows: wet season - cotton and sorghum using supple- mentary irrigation, and dry season - vegetables, especially tomatoes, and onions. More details of the proposed irrigation fund and its use are at Annex 7. 4.13 Feeder Roads. To the Southwest of Maradi an area of fertile soils is cut off from Maradi in the flood season of the Maradi River. Access to the area is then possible only through fording the river about 30 km north of Maradi. Within this area, which would be subject to the project's rainfed cropping improvement program, there are only unimproved tracks. Direct all-weather linkage between the town of Maradi and the area will be possible only when the river's flood is regulated, see para 4.10. In the meantime, however, it is proposed that 80 km of roads should be built within the area to facilitate project actions and generally to improve communications that for nine months of the year would link directly with the town of Maradi (and eventually with a bridge across the river) and that for the remaining period of the year would link with the town via the north- ern river crossing; 35 km of the roads would be 3.5 m wide with passing places every 500 m, and 45 km would be 6.0 m wide. The roads would be surfaced with 0.15 m of laterite. 4.14 Fuel Wood Plantations. A total of about 500 ha of fuel wood plant- ings would be made in the areas of the 15 selected ALC's. The objective would be to establish one plantation of about 3 ha in one out of every five villages. The plantations would be established by the village communities under the supervision of the PMU rural engineering section who would work in cooperation with the Forestry Service of MERC. Maintenance and protection of the plantations would be assured by the village community. As production would start only eight years after planting, it is not practical to plan reimbursement of Government investment costs in the plantations by the village community. Planting material would be purchased by PMU from nurseries managed - 16 - by the Forestry Service in the Department of Maradi. Varieties planted would include eucalyptus, dalbe,rgia and neem, depending on the soil suitabi- lity. As described in para 3.06, increasing population pressure is resulting in a shortage of fuel wood, and the cutting of trees for fuel is worsening and already unsatisfactory ecological balance. 4.15 Improvement of Livestock Services. The livestock services of MERC in the Departement of Maradi are short of equipment and finances to conduct vaccination campaigns. Under the project, 5 vehicles, the necessary ice machines, and other vaccination equipment would be financed as well as the purchase of vaccine. Specific programs implemented under the project would include: (a) routine vaccination in each of the three project years of all cattle in the Departement against rinderpest and pleuropneumonia, and (b) provision, on a fee basis, of treatments against internal parasites in calves and sheep and goats. The value of such treatments is appreciated by the farming community who are prepared to pay for them. It is esti- mated that 40 percent of all calves in the Departement would be so treated on an annual basis by project year 3 and some 50,000 sheep and goats. As the value of major vaccination campaigns is radically diminished unless executed on a nation-wide basis, assurances were obtained at negotiations that Government would conduct similar campaigns in the other Departements of Niger. Currently only the Zinder Department is not subject to such a campaign. This project component would be executed by the Livestock Service of MERC under the arrangement described in para 6.07. 4.16 Apart from improving animal health conditions, there is scope for major and economic improvements in animal husbandry in the crop farming areas in the south of the project area, see Annex 9. Under the project, funds would be provided for 10 man-months of consultants' services to examine and make recommendations on issues such as the development of stall fattening and the better integration of livestock and crop produc- tion. Stall fattening using crop residues is an attractive possibility given the major market for livestock offered by Nigeria. Provision of Credit for Livestock Purchase 4.17 This component of the project would not result in additional pro- duction benefits but would contribute to a redistribution of income. It would amount to CFAF 140 million or US$640,000 prior to price and physical contingencies. It would be carried out in the northern Arrondissements of Mayahi and Dakoro, where pastoralists suffered most from the Sahelian drought. Under the credit progran, pastoral families who lost their herds as a consequence of the drought would be provided loans in kind as follows: Peuhl families (cattle herders) would be eligible for five breeding cattle and 10 goats and sheep and Touareg families, five breeding camels and 10 goats and sheep. The loans would be interest free with a term of seven years including three years of grace for cattle and three years with one year of grace for sheep and goats. The total value of loans per family would be about US$800 equivalent, and they would have no security other - 17 - than the pledge of the tribal authorities that the family was a good risk. Selection of the pastoral families would be by a committee comprising the local authorities, traditional leaders and members of the Livestock Service. About 750 families would participate in this program, which would provide the means for now destitute families to regain economic self-sufficiency. 4.18 Project Evaluation Unit (PEU). The PEU would be established to quantify the results and assess the sociological impact of the project in the areas of the 15 chosen ALC's (Annex 10). The unit would collect the data which would be analyzed by an evaluation unit recently created at the national level within MERC. The national unit would also assist in develop- ig the methodology to be used. A base line survey would be made at the beginning of the project, and thereafter, developments in representative villages would be monitored and compared. Aside from the permanent staff in the PEU section, about 300 functionally literate farmers would assist in the collection of data. PEU would utilize cadastral and aerial surveys. PEU also would be responsible for monitoring the effectiveness of marketing of project produced commodities. Findings of PEU would be utilized in planning further projects in the Departement. Each village would be equipped with a rainfall gauge to record rainfall data. 4.19 The Project would have no adverse impact on the environment or on the health of the people in the area. The build-up of the livestock herd would be to levels below those prevailing prior to the drought, and the small irrigation component (500 ha) would not increase the incidence of schistosomiasis, as it would use the groundwater supply, and no irrigated area would be permanently underwater. On the contrary, the project would have a positive impact on the environment as farmers would be taught soil conservation measures, and the project's health component would improve the general health of the people in the area. V. Cost Estimates and Financial Arrangements A. Project Costs 5.01 Project costs net of import duties and other clearly identifiable taxes are estimated to total CFAF 2,670 million (US$11.9 million) of which the foreign exchange component would be US$5.9 million or 50%. 5.02 Project costs are detailed in Annex 11 and summarized in the fol- lowing table: - 18 - CFAF Millions uS$ 1000 % of Foreign Total Local Foreign Total Exchange Staff Salaries - Local Staff 470 2,090 0 2,090 0 - Expatriates 230 510 510 1,020 50% Buildings, Civil Works and Tree Seedlings 140 370 250 620 40% Roads Construction 170 370 390 760 51% Irrigation Fund 210 330 610 940 65% Equipment and Vehicles 160 140 570 710 80% Purchase of Animals 140 620 0 620 0 Vehicles' Running and Other Operating Costs 380 840 850 1,690 50% Incremental Agricultural Credit - Inputs 160 280 430 710 61% - Improved Seeds 50 170 50 220 21% - Farm Equipment - Blacksmith Kits 30 110 30 140 23% - Vaccine 10 40 10 50 25% Irrigation Development Surveys and Studies 140 0 620 620 100% Other Studies, Technical Assistance, Audit, Scholarships 110 0 490 490 100% Sub-Total 2,400 5,870 4,810 10,680 45% Physical Contingency 160 400 320 720 45% Price Contingency 410 990 810 1,800 45% Total Expected Project Cost 2,970 7,260 5,940 13,200 45% Less Taxes (300) (1,350) 0 1,320 Total Expected Project Cost Net of Taxes 2,670 5,940 5,940 11,880 50% . 19 - 5.03 Project costs include the salaries and rellated costs, travel for exat ?le, of all staff employed y PMM In its fou sections (para 6.04). On the grounds that such staff wou,Id devote 10% of their activities to implementa- tion of the project which woiAe n;t a.hieve its final objectives until beyond the proposed three year IDA c d5 disbursement peri,d, these costs have been capitalized. Project costs do not include the operating costs of irrigation perimeters, as these woulu be met by particinating farmers, nor the salaries and on costs of staff employed by the Forestry, Health and Livestock Services, since such staff would participate in the project on a part time basis only. 5.04 PMU staff would be paid in accordaace with the civil service scale; exceptions would be any staff recruited internationally, whose emoluments would match those presently paid to expatriates in Niger and other Sahelian countries. Building construction, equipment and vehicle costs are based on recent contractors' and dealers' quotations. Construction costs of the irrigation schemes assume that the labor needed in these operations would be provided by the local communities and would be paid at CFAF 150 daily, half the minimum daily wage for rural areas. This has been a common and successful practice in Niger for the construction of community projects. Project costs include a physical contingency of 15% on road construction and on the irrigation fund, and 5% on all other project items, and in addition, a contingency to cover expected inflation over the three year disbursement period. 1/ Physical and price contingencies amount to CFAF 570 million (US$2.5 million), or 24% of base costs including taxes. Base costs have been estimated as at July 1, 1975. 5.05 Because of the high cost of inputs and lack of familiarity of farmers with their benefits, fertilizers used by project participants would be subsidized during the IDA credit disbursement period. As discussed in para 2.14, current subsidy levels on fertilizers and insecticides are very, and probably unnecessarily, high (80%,and 67%, respectively). It is believed that fertilizer subsidies equivalent to 50% of delivered cost to the farmers would be sufficient. At a 50% subsidy rate, fertilizer costs to farmers would be about CFAF 50/kg. Insecticides used under the project would be mainly for fungus treatment of cowpeas grown in village blocks. Cowpea cultivation under close extension staff supervision should result in very satisfactory yields, making insecticide subsidy unnecessary. At negotia- tions, assurances were obtained that fertilizer subsidies on a national level would be reduced to 50% of their delivered cost to farmers by October 15, 1977. 1/ 1975: 5.4% 1976: 8.8% 1977: 8.0% 1978: 7.4% - 20 - B. Proposed Financing 5.06 It is proposed that IDA make a credit of US$10.7 million to finance 90% of total project costs excluding import duties and other identifiable taxes. The credit would cover the foreign cost estimated at US$5.9 million, and 81% of local costs excluding import duties and other identifiable taxes. The remaining 10% of project costs, and the taxes estimated at 10% of total project costs, or a total of US$2.5 million, would be met by Government. Details of the project financing plan are at Annex 11 and are summarized in the following table: - 21 - Financing Plan US$'000 Financed By 1/ Total Project Cost IDA Government -Net of Taxes With Taxes % of Total Staff Salaries - Local Staff 870 .1,220 1,870 2,090 16 - Expatriates 910 110 910 1,020 7 Buildings and Civil Works, Wood fuel Seedlings 580 40 550 620 5 Roads 'ristruction 680 80 680 760 6 Irrigatinn Fund 820 120 840 940 7 Equipment and Vehicles 640 70 630 710 5 Purchase of Animals 560 60 550 620 5 Vehicles' running, and other oper- ating costs 1,490 200 1,510 1,690 13 Incremental Agri- cultural Credit - Inputs 630 80 630 710 5 - Improved Seeds 210 10 200 220 2 - Farm Equipment and Blacksmith Kits 100 40 130 140 1 - Vaccine 30 20 40 50 - Irrigation Devel- opment, Surveys and Studies 620 - 620 620 5 Other Studies, Technical Assis- tance, Audit, Scholarships 440 50 440 490 4 Sub-Total 8,580 2,100 9,600 10,680 81 Physical Con- tingency 620 100 640 720 5 Price Con- tingency _1Q@ a 1,640 14 Total 10,700 2,500 11,880 13,200 100 % of total Proj- ect cost net of taxes 90% 10% 1/ Including taxes. - 22 - 5.07 It is proposed that the IDA credit of US$10.7 million would be made on standard terms to the Government who would pass it on to the Proj- ect Management Unit on a grant basis together with the Government contri- bution of US$2.5 million. Assurances covering the financing arrangements were obtained during negotiations. 5.08 To ensure the efficient and timely execution of the project, fur- ther assurances were obtained from Government during negotiations that it would: (a) ensure that an account in the name of PMU is estab- lished with CNCA; (b) deposit an initial amount of CFAF 125 million (US$0.6 million) into the account; (c) replenish the account quarterly on the basis of PMU cash forecasts in order to provide PMU with sufficient funds to meet project expenditures for the following three months; and (d) ensure that seasonal and short-term credit repayments for farm inputs, seeds, equipment, blacksmith kits and vaccines would be made to revolving fund accounts administered by PMU and deposited with CNCA. It was agreed at negotiations that the establishment of the revolving fund account with an initial deposit of CFAF 125 million would be a condition of credit effectiveness. 5.09 Retroactive financing by IDA of up to US$0.3 million is proposed to finance the expansion of the extension worker training center at Maradi which started on January 1, 1974 and was completed in early 1974, and to initiate the seed multiplication program for the 1976 planting season. C. Procurement 5.10 The following procedures would be used: orders or contracts for equipment, vehicles, or chemicals with a value of more than US$50,000 would be through international competiiive bidding (ICB) in accordance with IDA guidelines. Such procurement is estimated to have a value of US$1.0 mil- lion. Contracts of less than US$50,000 would be procured on the basis of locally advertised competitive b:ldding procedures. Fuel, spare parts and items too small to warrant competitive bidding would be procured locally under procedures acceptable to the Association. Construction of the irriga- tion schemes would be by their prospective users under the supervision of - 23 - PMU. As there are no local contractors able to build the project roads, and as these are too small (US$0.8 million) and too disperse to attract foreign contractors, the roads would be built by the Department of Public Works on force account. Project buildings costing an estimated US$0.6 million would be constructed under local competitive bidding procedures which are acceptable to the Association. Contracts exempted from international competitive bidding would aggregate no more than US$1.9 million. Some US$6.7 million would be for expenses unsuitable for competitive bidding, such as salaries, vehicle operating costs, etc. Consultants providing technical assistance and carrying out the various required studies (US$1.1 million) would be recruited inter- nationally according to IDA guidelines. The remaining US$2.5 million would be for contingencies. D. Disbursement 5.11 The IDA credit would finance 100% of the foreign exchange cost of studies, auditors, and scholarships and 89% of all other project items, except the salaries of civil servants posted to the project, which would be financed 100% by Government. The disbursement categories would be as follows: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil Works 1,200,000 89% (2) Vehicles, Equipment 600,000 100% of foreign expenditures or 89% of local expenditures (3) Fertilizers, in- 1,000,000 100% of foreign expenditures secticides, improved or 89% of local expenditures seeds and other farm inputs (4) Animal purchase 600,000 100% of foreign expenditures and vaccines or 89% of local expenditures (5) PMU expatriate 900,000 100% of foreign expenditures staff salaries (6) PMU local staff 2,400,000 100% of foreign expenditures salaries and PMU or 89% of local expenditures operating costs - 24 - (7) Irrigation fund 900,000 89% (8) Studies, audit, 1,200,000 100% of foreign expenditures scholarships, or 89% of local expenditures technical assistance (9) Unallocated 1,900,000 TOTAL 10,700,000 5.12 Disbursements of the IDA credit would be against import documenta- tion and certified records of expenditures. For disbursements made against certified records of expenditures, documentation would not be submitted for review as a matter of course, but would be retained by PMU for scrutiny by Bank Supervision Missions. Any surplus credit funds after completion of the project would be used to further develop services to farmers. The estimated schedule of disbursement of the IDA credit is at Annex 11, Table 9. E. Accounts and Audit 5.13 Accounts for PMU would be kept under acceptable commercial accounting procedures. Accounts would be audited annually by independent auditors mutually acceptable to Gcvernment and IDA. Audited annual accounts would be submitted to IDA within four months of the closing of the finan- cial year. Assurances to the above effect were obtained at negotiations. VI. ORGANIZATION AND MANAGEMENT A. Organization 6.01 The project would be carried out by a Project Management Unit (PMU), whose establishment would be a condition of credit effectiveness. In the case of its agricultural production components implementation would be through farmers cooperatives. Initially such farmers cooperatives would rtceive assistance from PMU in the form of seconded staff, technical assistance and finance. It has been estimated that it takes about 5 years participation ln an intensive development project for individual cooperatives to generate s4fticient surpluses through their input supply, credit and marketing activi- ties to finance farm level extension agents at a ratio of about one agent to - 25 - 150 farmers. Achievement of such self-sufficiency would be a prime objective of the project. 6.02 PMU would be headed by a Project Manager responsible for day-to- day project implementation. He would report to the Prefet, who in turn would be accountable to the CND. A Project Manager has been appointed. His experience and seniority level are acceptable to IDA. Annual work programs and budgets would be prepared by PMU and approved by the Prefet and CND. Coordination between PMU and other Governmental activities in the Departement de Maradi would be assured by the Prefet, assisted by the Comite Technique Departemental (COTEDEP), an existing committee comprised of all the heads of Government services in the Departement. The Project Unit Manager would be a member of COTEDEP. Agreement on this point was obtained at negotiations. Coordination at the national level would be through the CND. 6.03 As the project would be the first phase of a development program for the Departement, PMU activities would initially cover only part of the Departement's area. Existing services, agricultural and social, would have to continue to be extended to other parts of the Departement. Consequently there would be two distinct services operating in the Departement, the Proj- ect Service, under which project activities would be extended (para 4.02) and the regular Government service which would operate outside the project area. Various means of combining the two services have been considered in attempts to minimize overhead and staff requirements. Government has decided, however, that given the priority of the project, and the necessity to distinguish project and non-project activities, the creation of a separate PMU to handle project affairs would be the most practical alternative. The proposed arrangements, although they still imply some duplication, are satisfactory since if the project is successful, it will be followed by further phases and eventually all rural services would come under the control of a single entity of which PMU would be the forerunner. 6.04 PMU would have four sections, whose heads would report to the Project Manager: (a) Administrative Section, responsible for project accounting, staff administration, financial arrangements for agricultural credit and for crop marketing, and project evaluation. (b) Technical Operations Section, responsible for planning and implementing either directly or indirectly all physical aspects of the project. The Technical Operations Section would comprise five sub-sections: Rural Engineering, General Agriculture, Seed Multiplication, Applied Research, Extension Staff training and Blacksmith training. - 26 - (c) Cooperative Affairs Section, responsible for coop- erative development, si.aff secondment to coopera- tives, delivery of inputs, crop marketing, and audit of cooperative accounts. (d) Community Development Section, responsible for all actions involving the notivation of rural communi- ties to participate in the project, and training programs for rural people in cooperative activities, functional literacy, health and mid-wifery. 6.05 PMIU would be headquartered in Maradi, and have branches in four 1/ of the six Arrondissements that comprise the Departement. Each branch would be staffed by a representative of the four Headquarters Sections, one of whom would be appointed by the Project Manager as branch manager. The branches would liaise closely with the Arrondissement administration to achieve at this lower level the same type of cooperation and coordination as would be provided at the Departement level. The branches would be responsible for assisting and supervising the activities of those of the Departement's 15 ALC's that are located in their Arrondissement. PMU staff representation at the ALC, and individual cooperative levels would depend upon the degree of development of each ALC and be at the discretion of the Project Manager. B. Staffing 6.06 PMU would be staffed with personnel seconded from the following.' Government ministries: (a) Ministere de l'Economie Rurale et du Climat (MERC) - Direction du Genie Rural: for irrigation and other works related to soil and water manage- ment and conservation. - Direction de l'Agriculture: for agricultural extension, seed muLtiplication, applied research and extension agents' training. - Union Nigerienne de Credit et Cooperation: for cooperative development, input supply and credit, and blacksmith training. (b) Ministere du Developpement (MD) - Service de l'Aphabetisation: for functional literacy. 1/ Tessaoua, Mayahi, Madarounfa, Guidam Roumji. - 27 - - Service de l'Animation: for community development and training of farmers. It is expected that most staff who are now part of these ministries, and working in the ALC's to be covered by the project would be transferred to PMU (para 6.09). 6.07 Other project activities would be carried out by the existing Government services on behalf of PMU. PMU would agree with the services on programs of activity, their timing and financing. Such programs would form part of the project's annual work program which would be approved by the Prefet and CND, and consequently, the Government Service concerned would be required to execute its commitment in a timely manner and within a budget which would be controlled by PMU. Services so "contracted" would include Ministere de 1'Economie Rurale - Service de 1'Elevage, for the live- stock sub-project; - Service des Eaux et Forets, for fuel wood planting material supply; Ministere des Travaux Publics- et du Tourisme, for the road sub-project, and Ministere de la Sante- Publique et des Affaires Sociales for the health sub-project. 6.08 PMU and each of its four Headquarter Sections would be headed by Nigeriens. An internationally recruited adviser would assist the Project Manager. Specialists in rural engineering/small scale irrigation, in applied research and seed multiplication would also be recruited internationally to fill executive positions in PMU. The expatriate staff are needed to compensate for current shortages in local expertise. It is assumed that the four interna- tionally recruited staff would be required throughout the three-year proj- ect period, and that the three expatriates in executive positions would train their deputies to take over their functions by the end of this period. During negotiations Government requested IDA's assistance in the recruitmedt of such expatriate staff. Terms of reference for key staff are at Annex 12. Assurances were obtained that all section heads of PMU and all expatriate staff would have qualifications and experience acceptable to IDA, and that the adviser to the Project Manager would be appointed within three months of signing the credit agreement. A condition of effectiveness is the appoint- ment of the four section heads. 6.09 Staff for PMU would be seconded from the services listed in para 6.06 following selection by their Service Chiefs, endorsement by the Proj- ect Manager, and final approval by the Prefet and CND. The Project Manager would have a right of veto over the appointment of any staff member and the power to return unsatisfactory staff members to their own service and obtain a replacement. 6.10 An estimated 69 staff members would be seconded to PMU in Project Year 1 (PY 1), most of whom would be permanent civil servants. Most section heads would be professionals and graduates of French universities. Senior technical staff would be mostly graduates of the Katibougou Agricultural School in Mali, if agriculturalists; of the Saria School in Upper Volta, if rural engineers; and of the Institut Panafricain de Developpement in - 28 - Cameroon, if working in administration, planning, and community develop- ment. Most junior technical staff would be graduates of Institut Pratique de Developpement Rural at Kolo in Niger. By the end of the project period a total of 132 seconded staff members are expected to be in post. It is also estimated that by the end of the project development period some 285 cooperative extension agents would be required. Government has stated that the necessary numbers of staff would be made available to the project. Much of the project success will be due in great part to the quality of the staff assigned to PMU. Government is aware of this and has stated that the project would be given foremost priority and would be assigned the best staff available. C. Staff Training 6.11 During their initial two to three months with the project, all staff would receive in-service training courses to acquaint them fully with project objectives and policies. Additionally, refresher courses for all staff would be held annually. Selected individuals would receive scholarships and fellowships for overseas training, see para 4.09. All farm level extension workers would receive up to seven months training during one cultivation season in the agricultural practices that would be extended under the project at the Centre de Formation des Jeunes Agriculteurs (CFJA) in Maradi. Further details of staff training are in Chapter IV and at Annex 8. D. Cooperatives and Credit 6.12 Farmers Cooperatives. Farmers cooperatives in Niger are concerned mostly with crop marketing and still require Government financial and technical assistance. Thus UNCC (para 2.10, and Annex 2) functions as a Government agency rather than as an autonomous, apex cooperative organization. These arrangements are appropriate given the backwardness and poverty of the agricultural sector and the current very low standards of literacy. Thus, although the average co- operative elects and appoints its own officers, the principal of whom are President, Weigher and Secretary and reaches decisions through a committee formed of its members, UNCC at the ALC (i.e., union) level keeps inventory and cash accounts for the ALC and its member societies. Even in the more developed cooperatives where responsibilities for inventory control and cal- culation of members' bonuses have been delegated to the cooperative itself, UNCC still retains cash control and supervises the payment of cooperative staff. In some ALC, on-the-job trained farmer accountants are now beginning to keep accounts under UNCC supervision. UNCC staff seconded to PMU's Co- operative Affairs Department would continue these types of activities for ALC participating in the project, and PMU would seek to establish for each ALC and its member coooperatives a schedule with specific targets for the training of - 29 - cooperative members to take over increasing degrees of responsibility for the management of their societies. Functional literacy and other training pro- grams carried out under the project would support this latter activity. 6.13 In areas where new cooperatives are required, the procedures would be as follows: Following motivation of the people of a specific farming village or of a group of farmers engaged in some common project activity such as the block cultivation of cowpeas, or the establishment of irriga- tion schemes, a pre-cooperative would be formed, the so-called Groupement Mutualiste Villageois (GMV). The farmer members of the pre-cooperative would elect a committee comprising a Chairman and Secretary/Treasurer and four to five members and appoint officials - the produce weigher, etc. The GMV so formed would be associated with 5 to 12 other existing or new GMV to form a cooperative. The cooperative would have its own committee elected and a staff appointed by representatives of its constituent GMV, and several cooperatives would be joined together in an ALC. This develop- ment of new cooperatives would be sponsored by the Cooperative Affairs and Community Development Sections of PMU. 6.14 Credit. Since the agency responsible for providing agricultural credit throughout the country, CNCA, has not had a very good record and has only just recently been reactivated (para 2.15), it is proposed that PMU would operate the credit scheme for participating farmers and employ the ALC, Cooperative, and GMV channel as the delivery system for such credit. Farmers would be eligible for seasonal credit for fertilizers, fungicides, insecticides, improved seed and livestock vaccines; and short-term, 3 years, credit for crop sprayers and animal drawn farm equipment. Medium-term credit, 5 years, would be provided for blacksmiths' equipment. Interest on all loans would be at 10%, and no down payment would be required in view of the poverty of project area farmers. The 10% interest rate compares with a central bank discount rate of 5.5% and is appropriate given the security of loans provided under the GMV system of each GMV guaranteeing loans made to its members and the relatively low overhead of administering credit under the project. Interest rates would need to be reconsidered as more information on the cost of credit delivery and recovery became available. This would be a task for the Project Evaluation Unit. Assurances that a 10% interest rate would be applied to all farm credit given under the Project were obtained at negotiations. E. Irrigation Schemes 6.15 Given the conclusion of the study of alternatives of irrigation development of the Goulbi (para 4.10) that groundwater irrigation should be pursued, the irrigation schemes to be financed under the project would be operated as follows. Where physical conditions are adequate (proximity to the water table, soil suitability), farmers would form a cooperative and jointly apply for an irrigation credit. They would provide the casual labor - 30 - to dig the well down to the water table, to build the flood control bunds and irrigation canals, and they would be paid approximately half the prevailing wage rate. PMU would provide technical assistance and would finance digging below the water table, the well filtering system, pumping equipment, a reservoir of some 20 m3 capacity and all irrigation structures. The cooperative would sign a contract with PMU stipulating inter alia the recovery of investment costs and that the scheme would be operated under PTMU supervision. Water application would be organized by the users themselves. Each scheme would keep its own record of expenses, fuel maintenance, capital recovery and appor- tion them to the users pro rata to the size of their scheme holdings. Capital cost recovery is discussed at para 7.12. VII. YIELDS AND PRODUCTION, MARKETING AND PRICES, FARMER BENEFITS, GOVERNMENT BENEFITS, AND COOPERATIVE BENEFITS A. Yields and Production 7.01 The table below compares current yields of rainfed crops grown in the project area with those that project participants are expected to obtain. - 31 - Millet Groundnuts Cowpeas (grain) (unshelled nuts) (grain) --------------------kg/ha-------------------- Current (without project) Range of annual national averages 1967-1975 310-660 210-850 70-160 Average used in report calcula- tions 470 490 100 Expected (with project, by 1982) Range 425-1,000 550-1,150 600 Average used in report calcula- tions 570 780 600 Increment as conse- quence of project 100 290 500 Percentage increase 21% 59% 500% The ranges of annual national averages are from official statistics; the current average used in report calculations is the weighted average of estimates made by the Direction de l'Agriculture of MERC for the two major agricultural sub-zones of the project area. It is assumed that, without the project, yields would not improve but would remain at current levels. The expected yields are the mission's best estimates based on experience in the Departement de Maradi and elsewhere in Niger and West Africa. To develop these yield estimates, assumptions have been made on the rate of farmer acceptance of project innovations in the two major, climatically different sub-zones of the project area. The details of these assumptions are at Annex 4. In brief, it is assumed that it will take farmers about five years from the start of their participation in the project to take up the package of improved techniques that would be available to them under the project; that the extent of acceptance will vary from one crop to another; and that some project area farmers will decline to take up any of the improved techniques. By 1982, at full project development, i.e., when farmers taking up project recommended practices in the last year of the proposed IDA credit disbursement period (1978) will have completed their five years, the situation has been estimated to be as follows: - 32 - /1 Percentage of Farmers Using Improved Techniques- Principal Techniques Millet Groundnuts Stae 0 - No Change 25 10 Stage 1 - Seed Dressing, Improved Varieties, Proper Seeding Density for Groudnuts 35 50 Stage 2 - Fertilizer for Ground- nuts; Residual Effects of Fe-r- /2 3/2 tilizer for Millet 20-25-- 25-3D-= /1 Excludes cowpeas, which nider the project would be grown in coop- erative blocks. /2 Depending whether in Northern or Southern sub-zones. The table shows that the assumed degree of acceptance would be highest for groundnuts, the most profitable crop for the farmer, and the second best for millet, which is less profitable in terms of cash, although a food staple. By project year 3 at the end of the credit disbursement period, only a fraction of farmers would have started adopting improved cultiva- tion methods: i.e., it is estimated that only 13% of project farmers would have reached stage 1 by 1978. The overall impact of the project at full development, in 1982, is estimated as bringing up average yields in the 15 project area ALC's close to those which were obtained in the years of most favorable rainfall over the period 1967-1975. The large expected increment in cowpea yields is the result of both a change in cultivation method from mixed to sole cropping, as well as the use of a package of improvements. 7.02 The yield increases described above are estimated to result in increments in annual production amounting to 18,100 tons of millet, 19,800 tons of unshelled groundnuts and 600 tons of cowpeas by 1982. 7.03 New production from project established irrigated areas is esti- mated at 500 tons of seed cotton; 900 tons of sorghum; and 7,000 tons of tomatoes and other vegetables annually by 1981. These estimates are based on the model irrigated farm plans discussed in Annex 7; in practice, the output mix could be different, although it is assumed that the .value of output would be similar. 7.04 Without the project, it is estimated that the cattle herd in the Departement would increase from 371,000 head at present to 380,000 head in i978, an annual growth rate of about 1%. With the improvements to be introduced through the project,, it is estimated that a more rapid growth - 33 - of 4.0% would be obtained and that the herd would increase to 431,000 head during the same period. Assuming an off-take rate of 13%, as at present, project-induced marketed livestock production would amount to 18,700 tons liveweight valued at CFAF 1.5 billion in 1979, compared with 15,700 tons liveweight valued at CFAF 1.3 billion without the project. B. Marketing and Prices 7.05 Cattle and other livestock would be marketed privately. Primary marketing of groundnuts would be done by the cooperatives, which would sell them to SONARA (para 2.12) for export as nuts or as oil after crushing by local processors. Until 1973/1974, an average of two-thirds of the marketed groundnut crop was sold to oil seed crushers, and one-third was exported unprocessed. Marketing of cereals, cowpeas and vegetables would be through the traditional network of private traders to whom participating farmers would sell their produce. OPVN (para 2.12) would make some purchase of cereal grains and cowpeas through the medium of the cooperatives as part of its role of price stabilization, and also to organize an export market for cowpeas. Except for a short period immediately following the harvest when OPVN is given priority over private traders for the purchase of cereals to establish Government emergency stabilization stocks, marketing of cereals is free. Assurances were obtained that the official prices for cereals paid by OPVN would always be kept at an adequate level and be published early enough to induce farmers to produce for the market. 7.06 Government price fixing of producer prices for cash crops is discussed at para 2.12. Government also determines prices that groundnut crushers should pay SONARA. Prices paid by crushers were 54.5% of the CIF Europe price in the past, but were raised in 1974 to 65% of the CIF Europe price. Those prices are presently adequate, considering the diseconomy of scale facing the local processors compared to those in Europe, and the employment benefits the local industry generates. To ensure that prices paid by local processors remain adequate, that producers' incentives are maintained, and that Government recovers its investment and recurrent expenses through the quasi-tax (para 2.12) levied by SONARA, Government has agreed to keep groundnut producer prices at a level sufficient to provide adequate incentives to farmers; to announce producer prices early; to review producer prices annually; and to undertake no new commitments to subsidize the local groundnut crushing industry. 7.07 The following table shows the economic and financial prices used in report calculations for the two main commodities that would be produced under the project. For groundnuts, three economic prices are shown: those expected to be obtained in 1976 and in 1985, after which stable prices are assumed, and the lowest expected price in the ten year period. These prices reflect the world price forecasts made by the Bank's Commodities and Export - 34 - Division (Report No. 814 of July 1975) and are expressed in constant 1975 terms; prices for millet are those prevailing in the country and which, given the expected supply and demand situations, are expected to remain at or above present levels. The economic import substitution price for imported cereal grains is about 40% above local prices. CFAF/kg Shelled Groundnuts Millet Economic Price 60-30-53 35 Farm Budget 55 35 C. Farmer Benefits 7.08 Farm budgets representing typical farms in the two main agricul- tural zones of the Departement are shown in Annex 4. It is assumed that the situation without the project would remain unchanged from the present. Farmers' gross incomes from crop production (at 1975 prices), excluding any income from participating in either the irrigation or the livestock component of the project, would increase some 48% when farmers reach stage 1 (para 7.01), and 87% when they reach stage 2. The overall proj- ect impact on all farmers in the area between 1976 and 1982 is equivalent to all farmers' reaching stage 1 of development. The farmers' average gross incomes would increase 47%, from CFAF 92,000 in 1976 to CFAF 136,000 in 1982, and their net incomes, 67%, from CFAF 53,000 to CFAF 89,000 in the same period. No increase in family labor would be required (294 days aver- age), and consequently, net income per day worked would increase from an average of CFAF 179 at present to CFAF 298 by 1982. The latter figure is equivalent to the minimum official daily wage in the agricultural sector (CFAF 300). 7.09 Direct benefits enjoyed by participants as a consequence of the project have been assessed only in terms of the value of incremental crop production. Farmers would also profit substantially from increases in livestock production induced by the project, as they own 50% of all the cattle (Annex 9), and the major proportion of sheep and goats in the Departement. However, the extent of livestock ownership varies widely within the farm community, and thus, the impact of the livestock compo- nent on typical farmers' incomes is difficult to assess and has not been calculated. 7.10 To demonstrate the financial returns from irrigated development, units of about 10 ha each, utilized by 20 farm families, have been assumed. Net income from a 0.50 ha holding is estimated to amount to CFAF 67,000 by the fourth year of its development (Annex 7) after payment of all direct - 35 - expenses and capital recovery. The irrigated holdings would be cultivated by farmers who would also practice farming under rainfed conditions. Anal- yses of labor requirements at Annexes 4 and 7 indicate that in the month of November, when farmers harvest groundnuts and cereals and prepare their irrigated holdings for planting, a tight labor supply situation would develop. For that reason, irrigated holdings should be limited to 0.5 ha per family. D. Impact of Project on Government Finances 7.11 The project disbursement period is only for three years, and experience in Niger has shown that it usually takes up to five years for cooperatives participating in an intensive agricultural project to generate sufficient funds to pay for cooperative extension workers (para 6.01). It has been assumed for the purpose of this report that Government would finance all support services until 1984, after which cooperatives would have become entirely self supporting. Thus Annex 13 indicates that Government in addition to making a capital contribution to project costs of CFAF 563 million would be required to allocate some CFAF 380 million annually subsequent to the 3- year project development period until 1984 to maintain agricultural and other services needed to sustain project benefits at the levels achieved during the project development period. The size of the allocation has been calculated on the assumptions that (a) as currently, prices would be fixed at levels precluding any significant surpluses accruing to SONARA and thus being avail- able for transfer to Government's revenue account (see para 2.12), (b) the subsidies on inputs would be at the levels described in para 5.05, and (c) the project area would not be the subject of a second follow-up project financed by external assistance. An annual allocation of CFAF 380 million would be equivalent to CFAF 10,000 (US$45) per farm family in the project area. Cost of support services at the above level appears justified, given the incremental value of production induced by the project of CFAF 44,000 annually per farm family, or more than four times the cost of support services. E. Capital Recovery in Irrigation Schemes 7.12 As there is not much experience in Niger of similar small scale irrigation development schemes, there is no understanding of the level of incentives, financial and otherwise, necessary to motivate farmers to participate in such schemes. It has therefore been assumed, based on experiences elsewhere, that farmers participating in the project irriga- tion schemes would be assessed the full cost of operation and a charge of not more than 25% of the farmers' net incomes at full development, or CFAF 44,000/ha, to enable Government to recover its investment. This is equiv- alent to Government's recovering its investment in each irrigation scheme over a 30-year period and at a 10% interest rate. Assurances were obtained at negotiations that payment terms to recover Government investment in irri- gation schemes would be mutually acceptable to Government and IDA. - 36 - VIII. ECONOMIC BENEFITS AND JUSTIFICATIONS 8.01 The project's direct benefits would be the increased production (paras 7.02, 7.03 and 7.04) it would generate, which would result in higher incomes for some 37,500 farm families and 14,000 pastoral families, and in increased net foreign exchange earnings of US$2.0 million annually by 1982. The economic rate of return from investment in the project is estimated at 39% over 25 years (Annex 15). As the project consists of a number of dis- crete activities individual rates of return have been calculated for the principal of these, as shown below: Irrigation Improvement of Rainfed Cultivation Schemes Livestock Aggregate ALC without ALC With Project Roads Project Roads Aggregate 31% 20% 27% 20% 100% 39% Roads to be financed under the project are considered essential to reach expected increases in production in the ALC's they would serve. The very high rate of return on the livestock component of the project is typical of the returns achievable through the prophylactic and curative treatment of livestock. The credit scheme for destitute pastoralists is excluded from the economic calculation for the reasons given in para 4.17. No economic rate of return for woodfuel plantations has been calculated as it is impossible to quantify all the benefits that the plantations would have, particularly in arresting the deterioration of the vegetative cover. 8.02 Important assumptions used in the calculations are: (a) economic farm gate prices in 1975 constant CFAF terms as detailed in para 7.07; (b) inclusion in the cost stream of the rainfed development sub- project of costs incurred by PMU's Cooperative Affairs and Community Development Sections on the grounds that without these "social" services the anticipated yield increases from rainfed crops would not be achieved; and (c) no additional farm family labor would be required under the rainfed agricultural development program; the additional farm family labor required on the irrigation schemes has been costed at the wage rate prevailing in the area, about half of the official daily wage rate for the sector. 8.03 Sensitivity analyses of the economic rates of return of the prin- cipal project components are at Annex 15, Table 5, and are summarized below: - 37 - Benefits (percentage) 100 90 110 100 100 Costs (percentage) 100 100 100 90 110 ----------rates of return--------- Improvement in Rain- fed Cultivation 27 22 31 32 22 Irrigation Schemes 20 16 24 24 16 Livestock 100 100 100 100 100 These sensitivity analyses indicate that the rainfed cropping component is the most sensitive to changes in benefits or costs. Except in the case of the livestock component each variation of benefits or costs of 1% would, for all the main project components result in an absolute change of about 0.5 percentage points in the component's rate of return. For the project overall and again excluding the livestock component costs would have to rise by some 25% for the composite rate of return to fall to less than 15%. 8.04 The Project would have a number of secondary benefits which are not reflected directly in the economic rate of return calculations. Impor- tant among these are (a) the impact of the functional literacy and health training programs, (b) the demonstration effect of a concerted and inte- grated approach to rural development, (c) the planning of the development of an as yet unexploited natural resource, the irrigation potential of the Goulbi, (d) the expansion of non-farm rural employment, for example in blacksmithing, and in the two existing groundnut shelling and crushing factories in the Depart- ement; and (e) the improvement of nutrition and health. 8.05 The technical risks attached to the project are not considered large; the improved agricultural techniques that would be promoted by the project have been tested extensively in similar ecological zones in Niger and elsewhere in West Africa, and have been shown to be acceptable to farmers. The livestock activities are similarly well tested and appreciated. Technical risks in the pilot irrigation scheme are considered small and here, social issues, such as land reallocation, could prove greater constraints. However in the case of irrigation, disbursements of the IDA credit would be conditional upon the conclusion of a study of alternatives of irrigation development and the approval of IDA of detailed plans, for the implementation of individual perimeters. A risk that cannot be eliminated or significantly reduced is that inherent in the climatic vagaries which bedevil Niger. Because of the project's relatively high rate of return, the economic viability of the project would not be jeopardized by the statistically unlikely recurrence of drought of the magnitude experienced in the period 1967-1974. - 38 - IX. RECOMMENDATIONS 9.01 Assurances were obtained at negotiations that: (a) Government would open discussions with Nigeria with a view towards reaching agreement on the use of the water of the Maradi River and on a material program of catchment conservation (para 4.10). (b) The IDA share of the irrigation fund would be committed through a system of IDA approval of the detailed proposals for each well and its perimeter (para 4.12). (c) Government would undertake vaccination campaigns similar to those conducted under the project in the other Departe- ments of Niger (para 4.15). (d) Government would decrease its subsidies on fertilizers to a level not exceeding the equivalent of 50% of their cost to farmers by October 15, 1977 (para 5.05). (e) The IDA credit would be passed on to the Project Management Unit along with Government's contribution, in the form of a grant (para 5.07). (f) Government would: (i) ensure that an account in the name of PMU is established with CNCA; (ii) deposit an initial amount of CFAF 125 million (US$0.6 million) into the account; (iii) replenish the account quarterly on the basis of PMU cash forecasts to provide PMU with sufficient funds to meet project expenditures for the following three months; and (iv) ensure that seasonal and short-term credit repayments for farm inputs, seeds, equipment, blacksmith kits and vaccines would be made to revolving fund accounts administered by PMU and deposited with CNCA (para 5.08). (g) Accounts would be audited annually by independent auditors mutually acceptable to Government and IDA, and audited annual accounts would be submitted to IDA within four months of the end of the financial year (para 5.13). (h) The Project Unit Manager would be a member of Comite Technique Departemental (COTEDEP) (para 6.02). - 39 - (i) All sections heads of PMU and all expatriate staff would have qualifications and experience acceptable to IDA, and that the adviser to the Project Manager would be appointed within three months of signature of the Credit Agreement (para 6.08). (j) A 10% interest rate would be applied to all farm credit provided under the Project (para 6.14). (k) The official prices for cereals paid by OPVN would be set at a level sufficient, and be announced early enough to induce farmers to produce for the market (para 7.05). (1) Government would set groundnut prices at a level sufficient, and announce such prices early enough, to induce farmers to produce for the market; review producer prices annually; and would not make any new commitments for the purpose of subsidizing the pur- chase of groundnuts by the local groundnut crushing industry (para 7.06). (m) Arrangements to recover Government investment in irrigation schemes would be mutually acceptable to Government and IDA (para 7.12). 9.02 Conditions of effectiveness would be: (a) the establishment of a revolving fund account in the name of PMU at CNCA with an initial deposit of CFAF 125 million (para 5.08); (b) the creation of the Project Management Unit (para 6.01); (c) the appointment of the four section heads (para 6.08). 9.03 A condition of disbursement of the irrigation fund would be the satisfactory conclusion of the study of alternative methods of irrigation development (para 4.10). 9.04 With the above assurances the project is suitable for an IDA credit of US$10.7 million to the Republic of Niger.  ANNEX 1 Table 1 NIGER MARADI RURAL DEVELOPMENT PROJECT Agricultural Statistics A. Land Use (ha) 'Departement' Total Area Area Under Cultivation % of Total Area 1971/1972 1972/1973 1972/1973 Niamey 9,030,000 969,800 1,021,100 11.3 Dosso 3,100,000 484,500 401,900 13.0 Tahoua 10,668,000 368,OO 380,200 3.6 Maradi 3,858,000 384,700 424,0o 11.0 Zinder 14,543,0O 29,900 434,100 3.0 Diffa 14,022,000 92,400 15,800 0.1 Agadez 71,79,000 - - - Total 126,700,000 2,729,700 2,677,100 2.1 B. Population by Area -----Population------ Rainfall Area Total Inhabitapts Climatic Zone M '000 km2 '000 per km Sahelo-Soudanian 550-850 100 1,900 19.0 Sahelian 350-50 200 1,300 6.5 Sahelo-Saharian 100-350 300 750 2.5 Saharian 3-100 700 - - of which (a) 75-100 100 to 150 - (b) 3-75 600 to 50 - - 1,300 3,950 ANNEX 1 Table 2 NIGER MARADI RURAL DEVELOPME:T PROJECT Agricultural Statistics Gross Domestic Product at Current Prices 1972-1975 1' 197 197) 1973 (In billions of CFA francs) Rural sector 60.8 L6.8 37.8 h6.8 Agriculture (34.0) (30.0) (21.0) (30.0) Animal husbandry (21.0) (11.0) (11.0) (11.0) Forestry (5.8) (5.3) (5.8) (5.8) Mining and quarrying 1.5 1.6 1.9 2.2 Manufacturing industries 8.9 10.7 11.9 14.3 Electricity, gas, and water 0.5 0.6 0.6 0.7 Construction 3-h 3.7 4.1 4.3 Commerce 15.5 15.5 15.5 13.3 Transport 4.4 * .4 5.2 L.8 Banking 3.5 3.8 h.5 4.1 Services 3.8 3.6 3.8 3.8 Administration 5.9 6.3 6.7 7.1 Others 0.5 0.5 0.5 0.5 Total GDP 108.7 97.7 92.5 101.9 Annual change (in percent) 1 (-10.1) (-5.3) (10.2) (In percent of total) Rural sector 55.9 47.9 Lo.9 h5.9 Agriculture (31.3) (30.7) (22.7) (29.4) Animal husbandry (19.3) (11.3) (11.9) (10.8) Forestry (5.3) (5.9) (6.3) (5.7) Mining and quarrying 1. 1.6 2.1 2.2 Manufacturing industries 8.2 11.0 12.9 14.0 Electricity, gas, and water 0.5 0.6 0.6 0.7 Construction 3.2 3.8 b.4 4.1 Commerce 16.2 15.9 16.8 13.0 Transport 4.0 4.5 5.6 4.7 Banking 3.2 3.9 4.9 4.0 Services 3.5 3.9 4.1 3.8 Administration 5.h 6.4 . 7.2 7.0 Others 0.5 0.5 0.5 0.5 Total 100.0 100.0 100.0 100.0 Sources: Data provided by the Niger authorities; the BCEAO (Niger); and staff estimates. _ Estimates . 21 Projections. NIGER MARADI RURAL DEVELOPMENT PROJECT Agricultural Statistics Exports by Major Commodities, 1970-75 (In millions of SDRs) 1970 1971 1972 1973- 197h- 197521 Exports officially recorded l36.15 49.58 51.82 64.82 62.52 97.06 Uranium concentrate - 7.13 7. 92 25.35 26.64 40.L7 Groundnut products 22.72 21.39 24.8 16.89 8.51 27.80 Shelled groundnuts (19.99) (16.96) (17.68) (10.30) ( - (10.59) Oil (2.05) (3.49) (5.51) (5.37) (7.61) (15.66) Cakes (0.68) (0.94) (1.29) (1.22) (0.90) (1.55) Livestock 5.80 9.03 14.37 13.00 11.42 9.46 Cattle (5.22) (8.17) (13.25) (11.42) (...) ( ...) Other (0.58) (0.86) (1.12) (1.58) (... ( ...) Ginned cotton 0.58 2.02 0.86 0.36 0.35 0.61 Hides and skins 0.65 1.19 1.55 2.23 ) Onions 0.32 0.65 0.65 o.o ) Meat 0.36 0.50 0.40 0.43 ) 15.60 18.72 Other 5.76 6.12 6.77 9.72 ) Total 36.19 48.03 57.00 68.38 62.52 97.06 Entrep6t trade and miscellaneous -O.0 1.55 -5.18 -3.56 - - Unrecorded exports 10.52 8.61 12.71 .O. 6.50 8.02 Total exports 46.67 58.19 64.53 69.86 69.02 105.08 Sources: Direction de la Statistique, Bulletin de Statistiaue: balance of payments data provided by the BCEAO and other Niger authorities; and staff estimates and projections. 3/ Staff estimates in consultation with the Niger authorities. 2/ Staff projections in consultation with .the Niger authorities. 3/ Customs data adjusted by the BCEAO. M NIGER MARADI RURAL DEVELOPMNT PROJECT* Agricultural Statistics Areas and Prodaction of Major Crops/ 1966/67 196-,/68 1)68/69 1969/70 1970/71 1971/72 122/73 1973/74 24za/ Millet - area ('000 ha) 1,740 1,865 1,895 2,270 2,380 2,350 2,370 2,008 2,339 - production ('000 t) 841 1,000 732 1,095 880 958 918 627 696 - yield (kg/ha) 480 535 385 h80 370 ho5 380 312 383 Sorghum - area ('000 ha) S5 530 556 595 605 * 580 580 447 5SL - production ('000 t) 280 350 215 290 337 267 208 126 237 - yield (kg/ha) 508 660 390 h85 555 460 360 282 L28 Cowpeas - area ('000 ha) 608 689 745 968 980 999 920 803 930 - production ('000 t) 67 77 7h 159 8L 72 1 99 128 - yield (kg/ha) 110 112 99 164 85 72 155 123 138 Rice - area ('000 ha) 9 11 15 15 16 17 17 18 18 - production ('000 t) 20 32 39 39 37 27 32 46 26 - yield (kg/ha) 2,200 2,800 2,550 2,500 2,300 1,600 1,900 2,600 1,600 Groundnuts - area ('000 ha) 339 357 432 320 356 39L 417 36L .25h (unshelled)- production ('000 t) 288 298 252 207 205 256 260 77 130 - yield (kg/ha) 849 836 584 6W7 575 650 620 212 512 Cotton - area ('000 ha) 16 17 17 20. 20 21 15 10 NA (seed) - production ('000 t) 6.7 6.2 7.0 10.6 9.2 8.9 6.0 4 NA - yield (kg/ha) hi 360 40h 6 3 46020 00 o NA Total Cultivated Area ('000 ha) 3,257 3,)469 3,660 4,188 4,357 4,361 1,319 3,650 L,095 Source: 'Direction du Service de l'Agriculture'. t a x 1 October 1 - September 30 2 Provisional ANNEX 2 Page 1 NIGER MARADI RURAL DEVELOPMENT PROJECT INSTITUTIONS INVOLVED IN RURAL DEVELOPMENT A. General 1. The development of the rural sector is the prime objective of four government services: Direction de l'Agriculture, Union Nigerienne de Credit et de Cooperation (UNCC), Services de l'Animation and Services de l'Alphabetisation; the latter two are now part of the Ministere d'Etat Charge du Developpement, while UNCC is a parastatal agency, reporting to the Ministere de l'Economie Rurale et du Climat. Direction de l'Agriculture is one of the four "directions" of the Ministere de l'Economie Rurale. The four services work independently of one another. 2. There have been several attempts in the past to coordinate the work of these agencies. In 1966 the four agencies joined together to create so- called "Zones d'action integree", in which they coordinated their operating plans. This resulted in some improvements in efficiency but did not lead to the adoption and execution of a comprehensive agricultural development strat- egy. In 1968 there was an abortive attempt to create a "comite permanent du developpement rural" under the chairmanship of the Ministere de l'Economie Rurale et du Climat to evolve and supervise such a strategy and arrange for the regrouping of the four agencies under one ministry. B. The Conseil National de Developpement 3. The Government which took over in 1974 created the Conseil National du Developpement, CND (National Development Council), by presidential decree dated July 26, 1974. Although the texts creating and organizing the CND limit its role to the screening of the development programs for final con- sideration and decision by the Conseil Militaire Supreme, Government in- tends to use the CND, not only as an instrument for developing policy, but also to oversee the execution of development programs. CND would execute the latter function in the case of the proposed project. 4. Under the proposed project the staff and functions of the services mentioned above, i.e., Direction de l'Agriculture, UNCC, Animation and Alphabetisation in the parts of the Departement de Maradi affected by the ANNEX 2 Page 2 project would be amalgamated 1/ (Annex 4). Outside these specific areas, the services would remain under the direction of their existing departement dire<tors. The Project Unit would be responsible to CNT) for the implementa- tion of the project, with the Project Unit Manager reporting to CND through the Prefet du Departement de Maradi. The Prefet is appointed by the President of the Conseil Militaire Supreme and is the local representative of CND. C. The Ministere de 'Economie Rurale et du Climat 5. The Direction de l'Agriculture is one of the four "directions" of the Ministere de l'Economie Rurale, the others being: Elevage, Eaux et Forets, and Genie Rural. The functions of this Directorate are defined by Decree No. 8/MER of June 22, 1966 as being to: - organize, improve, and increase agricultural production; - prepare agricultural development plans, and supervise their execution; - protect crops thrcugh phytosanitary inspection and control of packing and storing of agricul- tural products; - teach farmers modern agricultural techniques; - work with cooperatives and marketing agencies to improve the quality of agricultural production. 6. The Directorate's staff totals 179 and includes 4 graduate agricul- turalists, 12 senior agriculturalists, 52 senior extension workers ("conduc- teurs de travaux agricoles", "agents techniques d'agriculture"), and 111 "moniteurs". The Directorate is compartmentalized into 7 administrative departements and 30 arrondissements and in 149 agricultural extension units, each heeded by a "moniteur". Each extension unit serves about 20,000-30,000 people, or 3,000-4,000 farmers. 7. The results of this very low ratio of extension workers to farmers have been poor. The main achievement to date has been farmer acceptance of fungicides for seed dressing. It is estimated that about 50% of improved groundnut seeds were treated in 1972. The use of fertilizers, however, is very slight, being 435 tons in 1971, 680 tons in 1972, and 542 tons in 1974. 1/ In the area covered by the 15 following Associations Locales de Cooperatives: Chadakori, Aguie, Koona, Gabaouri, Dodori, Dan Mero, Sabon Mache, Gabi, Maraka, Atchidakofoto, Rafinwada, Kanan Bakatche, Mayahi, Souloulou, Madarounfa. ANNEX 2 Page 3 8. The functions of the Direction de 1'Elevage as defined by Decree No. 8/MER are to: - organize health protection for all animals, and take all appropriate measures, technical and ad- ministrative, to stop and prevent epidemics and parasitic infestations; - inspect meats for quality and disease; - supervise preservation of meat, slaughterhouses, and use of products of animal origin; and - take all measures to improve livestock. 9. The Directorate staff totals 315 and includes 9 veterinarians, 6 graduate livestock specialists, 32 livestock assistants, 183 innoculators, and 85 hide and skin inspectors. The Directorate is overall well staffed, and has two good training schools: L'Ecole des Assistants et Agents Techniques de l'Elevage which opened in 1971 at Niamey and graduates 80 students yearly, and 1'Ecole des Moniteurs des Cuirs et Peaux (Hides and Skins), et Surveillants d'Elevage at Maradi, which trains 15 students yearly. 10. The Directorate has 4 stations, one each at Kirkissoye and Toukounouss, and two at Maradi. Kirkissoye has been researching cattle fattening using irrigated fodder crops. Of the two Maradi stations, one has been concentrating on developing a special breed of the Sokoto goat (valued for its skin), and the other on poultry. 11. While the Directorate is competently staffed, it has never received sufficient finance to carry out its responsibilities, especially disease con- trol, at a sufficiently high level. D. Union Nigerienne de Credit et de Cooperation (UNCC) 12. UNCC is a parastatal organization, with a board of 20 directors. The managing director is appointed by the Council of Ministers. UNCC was established in 1962 and reorganized in 1967, when its banking and credit activities were transferred to Caisse Nationale de Credit Agricole (CNCA). 13. UNCC's functions as defined by the law of September 20, 1967 are to: (a) promote the establishment of cooperatives and train their representatives; (b) assist cooperatives in marketing their produc- tion and in providing farm inputs; ANNEX 2 Page 4 (c) provide cooperatives with technical assistance; and (d) manage irrigation schemes. 14. UNCC employs 384 people, including 112 extension workers whose training has been financed under IDA Credit (207-NIR). Less than 15% of the staff have civil servant status; the remainder have been hired under UNCC terms of employment. There are a total of 16 French technical assistance personnel, financed by French aid programs. 15. UNCC has three divisions: administration, cooperatives, and pro- duction. The cooperative division is responsible for the creation of new cooperatives, and together with "Animation" and "Alphabetisation", for train- ing farmers. It keeps accounts for the cooperatives and supervises the cooperative education and mutual guarantee funds. It arranges financing for crop marketing, partly using cooperative savings deposited with it, and is the middleman between cooperatives and marketing agencies. 16. The production division is responsible for organizing cotton pro- duction in the country. Compagnie Francaise des Textiles (CFDT) has provided it with technical assistance since 1964. In 1972 UNCC had 41 extension agents in cotton areas, serving 405 villages and a total population of 293,000 people. Cotton production increased regularly until 1969/1970, when it reached nearly 11,000 tons of seed cotton. Thereafter it declined to 4,000 tons in 1973/74, mostly as a consequence of the Sahelian drought. The coun- try's production potential is estimated at about 20,000 tons. 17. The production division is also responsible for supervision of certain irrigated perimeters; these number 15 and involve a total area of 1,900 ha. Farmers participating in the schemes are usually organized in cooperatives, and are charged an annual fee which covers operating and main- tenance expenses. 18. The production division is also responsible for a blacksmith train- ing program; since 1968, 108 blacksmiths have been trained at 12 training centers established in the shops of more advanced blacksmiths. 19. UNCC has achieved a significant degree of success in the organiza- tion and supervision of irrigated perimeters, the development of cotton pro- duction, and organization of cooperatives for groundnut marketing. On the other hand, it has not yet achieved any real measure of success in promoting the use of inputs and improved techniques on rainfed crops other than cotton. ANNEX 2 Page 5 E. "Animation" 20. "Animation" services were established in 1962 and incorporated into the Ministere de la Promotion Humaine in 1972. The Ministere de la Pro- motion Humaine was merged into the Ministere du Developpement in 1975. "Animation" functions are to: (a) promote the active participation of rural populations in their own development; (b) facilitate the organization of cooperatives with the technical assistance of UNCC; (c) establish better working relationships between populations, local administrations and the representatives of the various Government tech- nical services. 21. Today "Animation" covers about one million people (25% of total population), with heavier concentration in the south where it started. As a first step in the process of "Animation", the service's personnel make a thorough study of the area to determine the problems faced by the population. Second, they organize meetings with traditional leaders and representatives of Government services to inventory rural development problems, consider possible solutions, and explore the possibility of Government programs to deal with these problems. Third, "Animation" in cooperation with the tech- nical services trains individuals in the specialized techniques needed in implementing these programs. 22. The most common projects initiated by "Animation" are: health (establishment of village dispensaries, training of first aid personnel); cooperatives (training of cooperative personnel); water resources and forests (establishment of village woodfuel plantations); and civil works (creation of small irrigation schemes). After the projects have started, the village representatives meet with "Animation" officials twice a year to assess results and to adjust the development program, if required. 23. "Animation" was at first oriented largely towards men. Since 1966 a branch of "Animation" has been addressing itself specifically to the needs of women. This has resulted in projects being implemented, such as the training of midwives; improvement of children's diets; and the care of small animals (fowls and goats), which are usually the responsibility of women. 24. "Animation" has been relatively successful in motivating rural populations, especially for projects in the health sector. ANNEX 2 Page 6 F. "Alphabetisation" Services 25. "Alphabetisation" services (Service de l'Alphabetisation et de l'Education des Adultes) are part of the Ministere du Developpement. They were created in 1961 and started operating in 1962 in the district of Maradi. In 1966, teaching switched from French to one of the five local languages (Hausa, Djerma, Peulh, Tamacheq, Kanuri). In 1969, a functional literacy program was introduced, geared to the training of cooperative personnel, and more recently as a component of larger agricultural development programs in the Zinder, Badiguicheri, Dollol Maouri and Tillaberi projects. 26. "Alphabetisation" services include a team of three teachers at headquarters responsible for training staff and supervising the quality of teaching materials; a team of five translators, one in each of the languages; and a team to coordinate activities with formal education representatives in the Departement. Headquarters publishes a newspaper (Gangaa) in Hausa and some technical brochures jointly with the various technical services. Departe- ments are becoming more involved in the production of teaching materials and in the definition of teaching programs. "Alphabetisation" is present in all Departements and in 1972 had 359 centers: 261 in rural areas and 98 in towns. 27. The results of "alphabetisation", although appearing only modest (40,000 adults were reached in the period 1962-72, of whom less than 20% are entirely literate in reading, writing and arithmetic), are extremely encour- aging, because these graduates can now be used to staff functional literacy centers. Finance has been the main constraint to a more rapid development of functional literacy, as the staff of functional literacy centers are paid from budgets of the local administration, for which there are many competing claims. ANNEX 3 Page 1 NIGER MARADI RURAL DEVELOPMENT PROJECT AGRICULTURAL CREDIT IN NIGER A. General 1. The development of agricultural credit in Niger has been particular- ly slow due to several factors: (a) harsh natural conditions which limit the economic use of farm inputs especially on the staple cereals; (b) lack of adequate extension services, and other farm support services to ensure the most efficient use of credit (Annex 2); (c) absence, until recently, of any concerted policy toward agricultural credit; and (d) the disruptive effects of drought; for example over the period 1967-1973, drought upset the tradi- tional cultivation and accompanying use of inputs. 2. The Government that came to power in 1974 has therefore taken pos- itive steps to encourage cash crop cultivation and the use of inputs and credit. It has raised producer prices for cash crops significantly: pro- ducer prices for shelled groundnuts were increased 129% in 1974, from CFAF 24/kg to CFAF 55/kg. These measures should stimulate the demand for inputs and thus for credit. 3. However a clear cut policy for agricultural credit dealing in par- ticular with interest rates and lending channels is still lacking. These issues are under review by the Conseil National du Developpement (CND) and a decision should be forthcoming shortly. Current indications are that Gov- ernment will opt for very low interest rates to farmers in the range of 2-3% thus involving a major interest subsidy. Equally it appears that the Caisse Nationale de Credit Agricole (CNCA) will be chosen as the principal agency for prbviding agricultural credit; in the recent past Banque de Developpe- ment de la Republique du Niger (BDRN) appeared to be taking over from CNCA as the principal source of agricultural credit, but recently Government has provided CNCA with additional funds. CNCA applied 2 and 3% interest rates to its agricultural credit lending in 1974. ANNEX 3 Page 2 B. Caisse Nationale de Credit Agricole (CNCA) 4. As a probable indication of Government's int.ntion to make CNCA the main channel of agricultural credit to the rural population CNCA's equity was increased from CFAF 170 million in 1973 to CFAF 370 million in January 1974, through a Government grant of CFAF 200 million (Table 1). Government deposits and treasury cash balances are now held in part at CNCA. CNCA re- ceived CFAF 400 million Treasury deposits in 1975. These actions reverse earlier Government actions of withdrawing deposits from CNCA and thus nearly bringing CNCA to bankruptcy. Objectives and Organization 5. CNCA is 100% Government owned. It has a Board of Directors of 20 members (the same board as UNCC) which comprises the Ministers of Rural Economy, Finance, Interior, Economic Affairs, Economic Development; the President - Director General of BDRN; the Directors of BCEAO and Credit du Niger, three deputies of the National Assembly, seven representatives of cooperatives, and the President of a Government import-export corporation. The Director of CNCA is appointed by the Council of Ministers. CNCA accounts are kept in accordance with commercial banking practices. The Ministry of Finance carries out an audit on Government's behalf and, in addition, at IDA's request, a private auditor has been appointed. Management and Staff 6. CNCA has a staff of 10 at headquarters in Niamey and is represented by UNCC agents in the seven departments. It opened two new branches, in Tahoua and Zinder in 1974. Sources of CNCA Funds 7. CNCA has no share capital.; its permanent resources are Government grants totalling CFAF 370 million (US$1,680,000) at present (Table 1). Another source of financing has been current and short term deposits by Government owned corporations, which are presently at record levels (CFAF 410 million in 1975). Lending 8. CNCA operations have included (a) medium and short-term loans to finance agricultural production development; (b) short-term advances to UNCC to finance primary marketing of groundnuts, cotton and rice; (c) short-term loans to other Government and semipublic corporations to finance the marketing of different agricultural products. ANNEX 3 Page 3 9. Lending to cooperatives was significant between 1968 and 1970 mainly for financing groundnut seed stockpiles. Since then lending to in- dividuals has increased, mainly for shallow wells, pumps and fencing used in gardens and orchards, in the vicinity of Niamey. Beneficiaries of such opera- tions are mostly Government employees. Lending for the purchase of oxen and implements has been negligible. Some individual loans were granted to grad- uates of the Centres de Formation des Jeunes Agriculteurs (CFJA), and are in default as most beneficiaries purchased equipment which was too costly for their small farms and did not receive proper supervision. CNCA has made very few other equipment loans. Since 1974 CNCA is prohibited from lending to Government employees and is required to reserve all its available resources for the rural sector. CNCA Performance Under IDA Agricultural Credit Project (207-NIR) 10.. Under the project, CNCA had the responsibility for final approval of loans to farmers and cooperatives and for the accounting of these loans. Loan appraisal was the responsibility of UNCC. As of June 30, 1975 amounts disbursed for agricultural equipment, fertilizer, and insecticides to be purchased under the project were 23% of appraisal targets, mainly for pesti- cides used for cotton treatment. The failure to meet the appraisal target is due to the series of factors enumerated in para 1. Amounts spent for tech- nical assistance to CNCA and UNCC extension staff training were on target. Overall, some US$260,000 or 45% of the original credit of US$584,000 remained undisbursed at June 30, 1975. Cancellation of this credit balance will be discussed with Government at negotiations. 11. At September 30, 1973 maturities on these loans totalled CFAF 484,000 and repayments were CFAF 369,000 or 75%, which can be considered satisfactory given the drought conditions prevailing-at that time. It is assumed that collection has not deteriorated since then. CNCA has pursued a policy of not granting loans to cooperatives or farmers in arrears. NIGER MARADI RURAL DEVELOPMENT PROJECT AgricIltural Credit in Niger taiee ut~,~o,, r6edit Agr~i.1 (CNCA) Coaprative 1ialance Shets - CFAF '000 - at September 30 1970/71 1971/72 1972/73 1973/74 1970171 1971/72 1972(73 1973/74 ASSETS LIABILITIES Cash on hand or in banka 36,597 51,760 13,164 19,737 Short tern Bank advance. - - 16,44 - Term deposits in banks 130,000 338,000 - - Current deposit. 56,830 3t7,073 178,227 43,941 Commercial Portfolia 3,227 2,152 106,086 129,864 Boer deposits 57,640 59,050 9,244 30,304 Short term loans 22.936 47,107 104.655 306,743 Short term deposits 40,000 31.000 40,000 61,408 ?dium term loan. 35,244 1 9,009 231.100 423,002 Centr l ank r ec un t ing - - Miscellaneous Debtor. 896 7,737 - 6,393 M-elln.... Creditor. 4.971 7,268 - 15,952 Supens and Miscellaneous Accounts 5,093 7,173 22,501 1,404 Suspenaeead Miscellaous Accounts 13.629 7,023 5,7132 4,615 Bad and Doubtful debts 62,715 48,361 31,806 62,296 Equity: Securities 2,185 1,723 893 2,144 Goveraent grant. foe Goneal purpe 170,000 170,000 170,000 372,802 Guarantee deposits 66 237 - - Governmnt grants IDA Fuds - 354 354 - Fixed Aset. 542 792 1,462 3,707 Provisiou for bad ond doubtfuld.bt, aod geneal pr-vi.i.- for risks 60,369 57,957 83,012 125,085 Losses ,uarantee Fond 3,150 5,530 15,755 - P-i.. F 13414 13.86 - 1CS Accumulaoted - - - Current FY 1.674 - - -trrent exerciae - 33,876 12.499 21.983 TOTAL 414.509 709.139 531,667 954.370 TOTAL 4i4.589 709.139 531.667 954.370 FItMLiSS Comparative Income Statement. INCOME Personnel 8,436 9,022 10,363 15,413 Interebt. and Conmi.si.n. on Loan. 35,359 40,664 64,417 Taxe. .841 1 4,012 3.925 mIai1n-... 51 1.102 1,A53 - Supplie. and Outside Services 2,344 2,947 4,296 5,905 IaL.-t. .o lo-ted availabe fund. 2,553 7,966 6,796 Tr-naport and Travel 288 193 20 45a - 1,807 1,804 303 Miscellaneous Manageeent expenses 1,562 1,199 1,627 2,147 Operting Doficit 21,271 - - Financial Cost@ 6,284 2,719 4,610 3,956 Depreciatio 57 202 450 1,173 Provi,iona 39.889 16,496 23,604 21,034 Operating Profit 5.206 2.215 8,708 TOTAL 59.701 37.985 51197 64.720 TOTAL 59.701 17.GA% 51.14 Comparative Profit and Loan Acoaunt EXPENSES .INCOME op,ereatlot deficit 21,271 Operetionol profit - 5.206 2,215 8.708 Exceptional losnes n.. acet.. Rimburseent of waitten off debta 895 304 281 424 Loases fron previ... year. -796 11 114 Profit from previo-t yearsaOnd miscellaeoas 1.014 2.481 960 6.568 Wilte-off of bed debtns TransfTr Iran provinion. 20.782 26.873 9,054 6.404 xception of peovision for b3d debt. 6259 - Not Loan 1.674 - E3eption2l provi2ion, 3,094 164 19 6 Net Profit - 338076 12.499 21,984 TOTAL 24.365 34.874 12.510 22,104 TnTAL 24,365 Y',(,4 12,510 22104 ANNEX 4 Page 1 NIGER MARADI RURAL DEVELOPMENT PROJECT AGRICULTURAL PRACTICES AND YIELDS A. Agricultural Zones 1. Project activities would be carried out in three of the four dis- tinct agricultural zones of the Departement, see Map No. IBRD 10834, through rainfed development in the Northern and Southern Sandy Zones and development of irrigation in the Goulbi Zone. 2. The Northern Sandy Zone (NSZ) lies between isohyets 600 m and 500 mm. Its soils are sandy and their fertility decreases from south to north. In this area the tree and shrub cover is very thin except along the Goulbi N'Kaba. Agriculture is basically subsistence with millet the major crop. A typical farm is as follows: - number of people: 6.2 including 2.8 adults; - total cropped area: 5.8 ha/farm with 4.8 ha under millet of which 1.0 ha inter- cropped with cowpeas and 1.0 ha under groundnuts; - average yields: about 400 kg/ha for groundnuts (un- shelled) and millet and 100 kg/ha for cowpea. The farm family population of the zone is about 123,000 people. 3. The Southern Sandy Zone (SSZ) lies between the Nigerian border and isohyet 600 m, and is the most important of the four zones. Soils are sandy formations with average fertility. The ecotype is savanna with a herbaceous cover of mainly Andropogor gayanus and Aristida longiflora. Cash crops, especially groundnuts, are more important than in the northern zone. Main crops are, as in the north, millet, groundnuts, and cowpeas. A typical farm is as follows: - number of people: 6.3 including 3 adults; - total cropped area: 5.5 ha/farm with 3.3 ha under millet of which 1.0 ha in asso- ciation with cowpeas and 2.2 ha under groundnuts; ANNEX 4 Page 2 - average yields: 5J0 kg/ha for groundnuts (unshelled) aad millet and 150 kg/ha for cowpea The farm family population of the zone is estimated at 339,000 people. 4. The Goulbi Zone (GZ) lies along the 'Goulbi de Maradi' and its tributary the 'Goulbi de Gabi'. It comprises the flood plain of the Goulbis and its surrounding terraces and forms a re-entry into the SSZ. Rainfall is similar to that of SSZ. On the terraces soils are somewhat heavier than those of SSZ; clay content decreases with the location of the terrace, i.e., is highest in the soils of the lowest terraces. Fertility is low to average. In the flood plain soils are silty clays with good fertility. On the terrace vegetation is similar to that of SSZ but on the plain shrub and tree cover is more varied and denser (Faidherbia albida, Tamarindus indica, Prosopis africana, and Combretum spp). A typical farm is as follows: - number of people: 6.3 including 3 adults; - total cropped area: 3.70 ha of which 2.75 on terraces with: 2.15 ha under millet of which 1.0 ha of cowpea in association with cowpeas 0.60 ha under groundnut 0.95 on the flood plain with: 0.75 ha under sorghum; 0.10 ha under cotton; and 0.10 ha under vegetables and miscellaneous - average yields: 500 kg/ha for groundnuts, millet and sorghum; 420 kg/ha for cotton. The farm family population of the zone is about 34,000 people. 5. The Dan Issa Zone (DIZ) is the fourth distinct agricultural zone ot the Departement. It would not be subject to actions of this first stage pro- ject. It lies south east of Maradi and forms a block on the border with Nigeria. Rainfall is slightly above 600 mm, the base in the Departement. Soils are relatively heavy clays with average fertility, but.very difficult to work by traditional methods because during the dry season they bake hard. Rainfall is suitable for cotton cultivation which has been introduced recently The four zones comprise about the southern 45% of the Departement; to the north the land is used largely for pastoral purposes. ANNEX 4 Page 3 B. Production Improvement Methods 6. The low yields obtained in the project area reflect basically the arid conditions and the variability of the rainfall, but are also a product of the lack of modern inputs including improved varieties. Although it is impossible to change the natural environment, research has shown that yields can be increased significantly through the use of improved varieties and techniques. Recommended improved practices for the principal crops of the Departement have been developed and proven and are described below. 7. Millet. Institut de Recherches Agronomiques Tropicales et des Cultures Vivrieres (IRAT) has developed a package of techniques that result in economic yield increases. The package includes (a) timely land prepara- tion and planting in order that the crop benefits from the dry season build up of nitrogen in the soil before this is washed out by heavier and more persistent rainfall; (b) fungicidal seed treatment (25 grams/ha); (c) proper spacing; 5-6 kg of seed spaced 1 m x I m; (d) thinning to three plants per stand about two weeks after planting, preferably after a good rain; and (e) early weeding. Fertilizer use is uneconomic and not recommended, but millet grown after fertilized groundnuts benefits from the residual effect of the fertilizer applied to the groundnuts. IRAT recommends the use of the improved varieties P3 Kolo and Hanai Kirei Precoce (HKP), which have been selected from local varieties. These varieties give better yields under improved husbandry methods than traditional varieties. 8. Sorghum. Basically IRAT recommends use of the same techniques as for millet. Spacing recommendations are different, however, 0.8 m x 0.6 m for long-stemmed varieties (Jan Jare) and 0.8 m x 0.3 m for short-stemmed varieties. Improved varieties, Jan Jare X137-62 and NK300 are available and yield well following good land preparation such as can be achieved through ox-drawn cultivation. 9. Use of the recommended packages on millet and sorghum is estimated to have the following progressive impact on yields: ANNEX 4 Page 4 NSZ Other Zones --------kg grain/ha------- Basic yield with traditional methods 400 500 Cumulative yield improvements through use of improved techniques Fungicidal seed dressing 425 525 Improved varieties 500 650 Ox-drawn land preparation 700 850 After effect of fertilizer on preceeding groundnut crop Groundnut crop in previous year 900 1,100 Groundnut crop grown two years earlier 800 1,000 10. Groundnuts. IRAT in collaboration with Institut de Recherches pour les Huiles et Oleagineaux (IRHO) recommends the following improved practices for groundnuts (a) use of improved varieties: 28-204 and 55-437, which are early maturing (90 day) for NSZ, and 47-16, a 110 day variety, for the other zones; (b) seed dressing with a fungicide (150 grams/ha); (c) sowing in June following a rain of 20-30 mm; (d) plant density of 166,000 plants/ha for early and 110,000 for late maturing varieties (about 100 kg of unshelled seeds/ha are required and spacing is 0.4 m x 0.15 m for earlier maturing varieties and 0.6 m x 0.15 m for later types; (e) first weeding 10 days after sowing and the second 15 days after the first; (f) fertilizer application of 75 kg/ha of superphosphate at the beginning of May, followed by very light land preparation; (g) harvesting as soon as crop reaches maturity, following which the crop should be dried by inverting plants on the row, pods uppermost, for about six days. Care in lifting, and above all in drying, is essential to prevent the creation of conditions favoring the development of Aspergillus flavius, which is the causative agent of Aflatoxin, a dangerous toxic element that is present in mouldy groundnuts. 11. Use of the improved techniques is estimated as having the following progressive impact on the yield of groundnuts: ANNEX 4 Page 5 NSZ Other Zones kg unshelled nuts/ha Basic yield with traditional methods 400 500 Cumulative yield improvements through use of improved techniques Fungicidal seed dressing 450 550 Improved varieties 550 700 Correct plant density 800 950 Fertilizer 950 1,150 12. Cowpeas. For a pure stand of cowpeas IRAT recommends (a) sowing in June, just after a 20-30 mm rain; (b) spacing at 0.6 m x 0.3 m, with three seeds per stand (approximately 25 to 30 kg of seeds are required per ha); (c) 75 kg/ha of triple super-phosphate applied either before sowing or before the first weeding; (d) first weeding 10 days after sowing and a second 15 days later; (e) insecticidal pest control in time with pest identification in the field (the average treatment is assumed 10 liters/ha/year applied through three or four applications of Endosulfan/Thynul 35); (f) post harvest storage in plastic bags of 40 kg fumigated with carbon tetrachlorate. 13. IRAT recommends an early maturing variety-TN88-63, which has a growth cycle of 70 days and is much better suited to NSZ where it will replace traditional varieties with growth cycles of 100 to 115 days and which con- sequently are very sensitive to drought. 14. Traditionally cowpeas are intercropped among cereals at a very low plant density/ha and not as a sole crop. Sole cropping is impossible without pest control since cowpeas are susceptible to a wide range of in- sect attack. Grown under cereals the intensity of such attack is lessened to some extent. The principal insect pests are: a. between germination and flowering, the Amsalta caterpillar; b. during flowering and fruit formation, Thrips and Maruca caterpillar; and c. during pod maturation, pea beetles. 15. As it would be difficult, and expensive to implement and super- vise these techniques on scattered plots, farmers interested in growing cowpeas would be grouped together to grow the crop in monoculture blocks. Such activity would be concentrated in NSZ where cowpeas have a greater potential than groundnuts as a cash crop. It is assumed that through block cultivation and the use of the improved techniques average yield of 600 kg/ha would be obtained. Such an assumption is borne out by experience in Niger. ANNEX 4 Page 6 C. Project Phasing and Rate of Acceptance of Improved Farming Methods 16. The project's crop production improvement activities would be extended in the three years of IDA credit disbursement )eriod to the fol- lowing fifteen Associations Locales de Cooperatives (LC). These ALC's have been selected on the basis of theJ.r members' demonstrated acceptance of cooperative activities and receptiveness to change. Associations Locales de Cooperatives 1976 1977 1978 Northern Sandy Zone Chadakori Dan Mero Rafinwada Sabon Mache Kanan Bakatche Mayahi Southern Sandy Zone Aguie Gabi Souloulou Koona Maraka Madarounfa Gabaouri Atchidakofoto Dodori An average ALC comprises 10 cooperatives, a cooperative 5 villages, and a village 50 farming units. Using these parameters, an estimated 37,500 farm families would be the subject of project actions as shown below: 1976 1977 1978 TOTAL ALC 5 5 5 15 Cooperatives 50 50 50 150 Villages 250 250 250 750 Farming Units 12,500 12,500 12,500 37,500 ANNEX 4 Page 7 17. It is assumed that the improved cultivation methods recommended by extension staff (the ratio of farm level extension workers to farmers would be 1:150) would be adopted progressively, at different rates for groundnuts and cereals, and that it would take 5 years of extension work to achieve the maximum potential level of farmer acceptance. As shown below, it is expected that even by the end of five years only about 25% of farmers would have accepted the full package of improved techniques. Years of exposure to improved cultivation methods Year 1 Year 2 Year 3 Year 4 Year 5 Cumulative Percentage of Farmers Adopting Improved Methods Groundnuts Seed dressing 50 65 75 85 90 Improved varieties 10 20 30 45 60 Seeding density 5 10 20 35 50 Fertilizer North Sandy Zone 5 10 15 20 25 South Sandy Zone 5 15 20 25 30 Millet and Sorghum Seed dressing 15 25 40 55 75 Improved varieties - 5 10 20 35 Aftereffect of fertilizer - 5 10 15 20 North Sandy Zone - 5 15 20 25 South Sandy Zone - 5 15 20 25 Ox-drawn cultivation - 1 2 3 5 ANNEX 4 Page 8 18. Cowpeas would be cultivated in village blocks of an average size of 10 ha per village, as follows: 1976 1977 1978 Total Number of villages involved in the cowpea program - 40 60 100 Total area under cowpea mono- culture (ha) - 400 600 1,000 19. A summary of yield and production increases estimated to be generated by the project is at Table 1. At Tables 2 and 3 farm budgets representing "with" and "without" project situations are shown. It is assumed that farmers' incomes would remain unchanged were the project not implemented. For the "with" situation two types of budgets are shown. The Stage 1 budget is for those farmers using (a) for groundnuts: seed dressing, improved varieties, and proper seeding density; and (b) for millet: seed dressing and improved varieties. Such farmers are estimated to com- prise about 50% of all farmers in the 15 project ALC's by 1982 at the con- clusion of five years of project activities. The Stage 2 budget is for the more progressive farmers who, in addition to using the methods employed by Stage 1 farmers, would use fertilizers on their groundnuts. Stage 2 farmers are estimated to total 25% of all farmers in NSZ by 1982, and 30% in SSZ. 20. Table 4 shows farm labor requirements for average farms in the project area. There should be no labor constraints to the acceptance of project proposed methods, since family labor should be adequate throughout the year, except perhaps in November at harvest time. Fortunately the weather at that time is such that the harvest can always be extended without damage to or loss of crop. NIGER MAMDI RURAL DEVELOPMENT PROJECT Agricultural Practices and Ylelds General Agricultural Production 1976 1977 197 l99 - -19?0 I9V1 193 l9 19"4 1. Number of 4ew ?armers NSZ 2,500 5,000 7,500 ssz 10,000 7,500 5000 Total 1?,500 12,500 12,500 11. Groordnuts 11 Area Under Oltivatio" (ha) NSZ 2,500 7,500 15,000 15.000 15,000 15,000 15,000 ss. 22,000 6,500 49.500 49,500 49.500 49.500 49.500 Totlai Area 24,50 46,000 >4,t00 64,500 64,500 64,500 64,500 odoctiýn WitCout Project sz a 400 kg ha 1,000 3,000 6,0004 6,000 6,000 6,000 6,000 SS!. '5 00 kg 'ha 11.000 19.300 24.800 24,800 24,00 24,800 24,M00 Total Production Without Project 12,000 22,300 30,500 30,800 30,00 30,600 30,S00 Yåelds ihPric NSZ kg ha 440 470 4E0 520 570 630 660 Stz kg ha 560 600 650 700 760 600 :,9 :egIOted Averago k8 'ha ,!, 570 600 660 720 760 760 In creci1 W thtion With Project NSZ 1 cns 100 500 1,200 1,900 2,700 3,500 4.000 SS? tons 1 400 3.600 6 400 9. 00 13.000 15,000 15,00 To,,< --eental Production 1A ,500 4.100 7,600 11.100 15,00 11,500 19, CO Total Productton WIth Project 26,400 34,400 4200 4 500 49300 50,'00 111. 1illet-S-oråhum, Area Under Cultivation (ha) NSZ 12,000 36,000 72,000 72,000 72,000 72,000 72,000 SSZ 33.000 57,800 74,300 74,300 74,300 74,300 74.300 Tctaý Ares 45,000 93,600 146,300 146,300 146,500 146,300 14ý.,300 Productlfon Without Project NSz '¾07 kg 'ha 4,800 14,400 28,800 28,80,8 08,800 28,800 28,P00 552. >00 kg ha 16,500 28,900 37,200 37200 ,200 37,200 2,200 Total Production Without Project 21,300 43,300 66,000 66,000 ,000 66,000 6,00 Ylelds With Project mSz kg'ha 400 410 420 450 480 510 530 SSZ kglha 500 520 530 560 600 610 620 Weighted Average kg/ha 470 480 480 510 540 560 570 Incremental Production With Project NSZ tons - 400 1,500 3,500 5,60 7,60 9,000 S5Z tons 900 2.500 4,600 7.100 8.400 9,100 Total Increental Production - 1,300 4.000 8,100 12,700 16,000 1',100 Total Production With Project 21.300 44,600 70,000 74,100 78,700 82,000 P4,100 IV. Cowpeas Number of 4ew Villages 40 60 Area Under Cultivation (ha) 400 1.000 1,000 1,000 1,000 1,000 1,000 Incremental Production @600 kg/ha (tons) 200 600 600 600 600 600 600 '1 Unshelled. NIGER MARADI RURAL DEVELCPMENT PROJECT AGRICULTURAL PRACTICES AND YIELDS General Agriculture - Fani Budgets (Gross Income) Without Project StOae 1 Stage 2 Prices Area Yield Productlon Arep Yield Production Area Yield PrJodction CFAFIKg (ha) (kg/ha) KFAF (ha) ( K9 CFAF (ha) (kg/ha) gL CFAF Southern Sandy Zone (SSZ) Millet 35 3.3 500 1,650 57,750 3.3 650 2,150 75,250 3.3 850 2,810 98,350 Groundnuts 40 2.2 500 1,100 44,000 2.2 950 2,090 83,600 2.2 1,150 2,530 101,200 Total Value of Production 5.5 101,750 158,850 199,550 Incremental Value of Production - 57,100 97,800 North Sandy Zone (NSZ) Millet 35 .8 100 1,920 67,200 4.P 500 2,2!00 84,000 1.8 650 3,120 109,200 Groundnuts 40 1.0 400 400 16.000 1.0 300 800 32,000 1.0 950 950 3000 Total Value of Production 5.8 83,200 116,000 147,200 Incremental Value of Production - 32,800 64,000 NIGER MARLDI RURAL DEVELOPMENT PROJECT AGRICULTURAL PRACTICES AND YIELDS General Agriculture - Farm Budgets - Net Income CFAF '000 South Sandy Zone (SSZ) North Sandy Zone (NSZ) Without Without Project Stage 1 Stage 2 Project Stage 1 Stage 2 Gross Income 101,750 158,850 199,550 83,200 116,000 147,200 Production Costs Fungicide Seed Dressing @ CFAF 800/kg 1/ - 720 720 - 470 470 Seeds Cereals 5.5 kg/ha 0 CFAF 35/kg - 630 630 - 920 920 Seeds Groundnuts 67 kg/ha 0 CFAF 70/kg - 10,300 10,300 - 4,700 4,700 Fertilizers-Groundnuts 75 kg/ha @ CEAF 50/kg2/ - - 8,250 - - 3,750 Hand Tools 800 800 800 840 840 840 Total Production Costs 800 12,450 20,700 840 6,930 10,680 Debt Service Interest on Seasonal Credit - 600 700 - 300 370 Net Value of Production before Consumption and taxes 100,950 145,00 178,150 82,360 108,770 136,150 Family Consumption and Taxes Cereals 200 kg/capita 31,500 31,500 31,500 31,000 31,000 31,000 Groundnuts 10 kg/capita 3,500 3,500 3,500 3,400 3,00 3,400 Taxes @ CFAF 1400/adult 4.200 4,200 4,200 3,900 3,900 3.900 Total 39.200 39,200 39.200 38.300 38.300 38,300 Total Net Income 61,750 106,600 138,950 44,060 70,470 97,850 Labor required (mandays) 328 328 328 260 260 260 Net Income per Manday 188 325 424 169 271 376 1/ Subsidized 50% I/ Subsidized 80% ANIELA Table 4 H.M MWa IWVAL Vno4PMWT PROJact AGRICULTUTAL PPAOTICES AND IIELD Oleral Azrmature Labor Remranats Mandays January FebrUary Marah Ap ay June ! A t Sptmbr October November December TOTAL South Sandy Zone Millet 3.3 he Land preparation 33 33 Sowing 13 13 First weeding 13 13 Second weeding 6 7 1) Harvesting hl 41 Threshing 38 38 TOTAL 33 26 6 7 1 38 151 Groundnuts 2.2 he Land preparation 18 19 Sowing 6 6 12 First weeding 9 9 Second, third weeding 28 28 Hrvesting, stacking 55 55 110 Threshing TOTAL 24 15 28 55 55 177 Total Labor Required 57 41 34 7 41 93 55 328 Total Labor Available 240 240 240 240 240 150 150 1,500 Labor Balance 183 199 206 233 199 57 95 1,172 North Sandy Zone :illet 4.8 ha laud preparation 48 48 Sowing 19 19 First weeding 19 19 Second weeding 10 9 19 Harvesting 32 32 ThrAPh17g L3 TOTAL 48 38 10 9 32 13 100 Groundnuts 1.0 ha Land preparation 8 Sowing 3 3 6 First weeding 4. Second, Third weeding 12 12 Harvesting, Stacking 25 25 Threshing 25 25 TOTAL 31 7 12 25 25 80 Totol Labor Required 59 45 22 9 32 6C 25 260 Total Labor Available 220 220 220 220 220 140 140 1.380 Lobor Balance 161 175 198 211 188 72 115 1,120 ANNEX 5 Page 1 NIGER MARADI RURAL DEVELOPMENT PROJECT Road Project Component A. Communications 1. Lying at the intersection of the main east-west route (RNI) and a north south axis (RN9 and RN30), Maradi is the collection center for all produce in the central part of Niger. It is also the principal trading center between Niger and Nigeria. The possibility of extending the Nigerian railway from Kauru Namoda, the present terminal, to Maradi (136 km) is being considered. Kano, the largest city of Northern Nigeria, is 225 km from Maradi. 2. The road network is thinly developed in the Departement. There are only 580 km of national roads for a total district area of 38,600 km2. About 190 km of these national roads are surfaced with bitumen, 224 km with laterite, and 170 km are sandy tracks only passable by four-wheel drive vehicles. Bitumen and laterite surfaced national roads are relatively well maintained. In addition to the national roads there are several hundred kilometers of trails suitable only for pack animals. Sandy tracks are not maintained. Many quite heavily populated areas are 50 km or more from a laterite or bitumen surfaced road. 3. While motor transport can be operated over the sandy tracks, costs are high. Operating costs of 2.5 ton trucks on hard surfaced national roads are calculated at CFAF 11/ton-km compared with more than CFAF 30/ton-km on sandy tracks because the vehicle cannot be fully loaded when operating on the sandy tracks. Camel transport costs about CFAF 45/ton-km. B. Highway Administration 4. Maradi is headquarters of one of the Sous-direction des Travaux Publics. This subdivision is well organized, staffed and equipped to carry out its function, but due to a shortage of operating funds the equipment is underutilized. ANNEX 5 Page 2 C. Analysis of Proposals Made by Government for the Transportation Component of the Project 5. Government proposed that the Maradi Rural Dev-lopment project should include: (a) construction of 119 km of feeder roads of a relatively high stand- ard; (b) improvement of 562 km of sandy tracks; and (c) construction of flood control works to protect the town of Maradi, (d) construction of a bridge across the Goulbi de Maradi, and (e) construction or improvement of about 80 km of sandy tracks in an area that would be opened up by the bridge. Construction of 119 km of Feeder Roads 6. The feeder roads proposed comprised: (i) 55 km on the axis Maradi-Mayahi; (ii) 50 km between Mayahi and Dan Mero; and (iii) 14 km between Guidan Roumji and Maradi including construction of a series of submersible box culverts (a fiord) across the Goulbi de Maradi. 7. The French consulting firm Bureau Central d'Equipement d'Outremer (BCEOM) studied these proposals and concluded that construction of the proposed roads would be economic. However appraisal has indicated that the BCEOM traffic forecasts are highly optimistic at possibly twice that which will emerge and that construction of feeder roads to the proposed standards (7 m wide, on a 15 cm embankment of laterite materials) would be uneconomic. Analysis of an alternative of linking Dan Mero directly with the Maradi- Mayahi road, which would substantially reduce the degree of construction under proposal (ii) above and increase traffic on the axis in proposal (i) showed this also to be uneconomic. Analysis also shows that construction to lower design standards on these routes would not significantly improve their economic viability. For the foregoing reasons the proposed feeder road program has been excluded from the project. Improvement of 562 km of Sandy Tracks 8. The proposal to improve 562 km of rural tracks in the Departement fits within the frame of Government's stated policy to develop some 150-200 km annually of improved tracks in each of its Departements. Government is elaborating a 10-year master plan for road development in the country including tracks of this type. The preparation of the plan is being financed by FAC and will take about two years to complete and will involve traffic counts, and economic and technical studies. In advance of preparation of this plan it would be premature to include in the proposed Rural Development Project the program of 562 km proposed by Government. ANNEX 5 Page 3 Flood Control Works 9. Government proposed to include in the project works to protect the town of Maradi against flooding from the Maradi River. Flood damage starts when the river overflows into its flood plain. This happens when the flood discharge reaches 100 m3/sec, which occurs one year in two. The height of water in the valley reaches 0.6 m and 1.2 m one year out of four, and one year out of ten, respectively. This overbank flow and flooding usually lasts no more than one week. The last flooding occurred in September 1974 and was reported as if a national catastrophe. The works proposed had been studied by German consultants GKW and included construction of "gabions" (wicker works filled with stones) on both sides of the river and over a distance of 5 km (altogether 120 gabions, and a total of 12,000 m3). The usefulness of these works would be considered in the overall study of alternative ways to develop the irrigation potential in the valley (Annex 7). This is the reason why these works were not included in the proposed project. Feeder Roads Included in the Project 10. The project includes some 80 km of roads to be built southwest of the town of Maradi, on the other side of the Maradi River. Access to that area during the dry season does not create any problem, as the Maradi River is then dry. During the flood season, access to the area would be possible only through fording the river about 30 km north of Maradi. Direct all- weather linkage between Maradi and the area will be possible only when the river's flood is regulated (Annex 7). In the meantime, 80 km of priority roads would be built to facilitate project actions. 11. Roads improved or constructed under the project will consist of a barrel shaped graded roadbed 7.0 m wide, following the terrain as closely as possible with a minimum of cut and fill. The laterite surfacing will be 0.15 m thick and 3.5 m wide on tracks.to Serkin Yama and Gidan Sori; and 6.0 m otherwise. Passing places 6.0 m wide will be provided at 500 m intervals on the 3.5 m wide sections. It is expected that the Madarounfa track will carry about 20 vehicles per day (VPD), and the Serkin Yana and Gidan Sori tracks, 10 VPD each. A width of 3.5 m laterite with passing places is considered adequate for this level of traffic. 12. The roads would be constructed by the Public Works Department on force account and under the supervision of the PD rural engineering unit: The tracks selected for construction are: P1 Maradi-Serkin Yama 20 km P2 Branch from P1 to Gidan Sori 20 km P3 Branch from P1 to Madarounfa 25 km P4 Branch from P3 to Gabi 15 km Total 80 km ANNEX 5 Page 4 P1 - The Serkin Yama Track (20 km). The alignment of this track will depend on the most likely bridge site. After this has been fixed the alignment will follow a direct line to Serkin Yama with adjustments to follow the best topography and bring it as near as possible to a laterite deposit discovered en route. P2 - Gidan Seri Track (20 km). This track will turn off at about 10 km, passing near to Mayaoukou village. The criteria for alignment will be the same as for Pl. P3 - Madarounfa Track (25 km). The Madarounfa track will be aligned about 5 km to the main channel of the Goulbi de Maradi, not only to avoid secondary channels and areas liable to flooding, but also the acquisition of potentially high yielding agricultural and horticultural land near the river. The most suitable crossing place over the Goulbi de Gabi will fix the alignment at the southern end of the track. P4 - Madarounfa - Gabi Track (15 km). This track will commence near the Gabi, crossing and passing through an area of extensive laterite deposits. ANNEX 6 Page 1 NIGER MARADI RURAL DEVELOPMENT PROJECT Health Project Component A. General 1. The medical infrastructure of Maradi District is poor. There are only four doctors (1/175,000 people), six maternity hospitals, and 23 dis- pensaries (1/30,000 people). 2. The most common diseases are: malaria, intestinal parasites, eye diseases, wound infections, guinea worm and venereal disease. Pregnant women are particularly vulnerable, and mortality at birth is high. Each year many man-days are lost, especially during the rainy season because of malaria and guinea worm. 3. First Aid Volunteers. To offset health service deficiencies, the 'animation' services encouraged farmers to become first aid volunteers. Villages designate two farmers for 10 days training at the closest dispensary; they learn how to treat symptoms of major diseases, teach personal and village hygiene (especially-the problems of water hygiene) and to use basic drugs to dress wounds, cure eye diseases, malaria and diarrhea. The volunteers are not remunerated, but the other villagers repay them by helping to cultivate their land during the rainy season. First aid volunteers operate a rudimentary village dispensary drug store with an inventory of about 10 different drugs which cost about CFAF 8,000 total (US$36). The initial investment is financed on the 'arrondissement' budget and replaced by the village. Farmers pay be- tween US4 2 and US4 4 for each treatment. The volunteers keep accounts, and supply records are made during the monthly control visit by the male nurse from the closest dispensary. In addition to the volunteers a two to three member village committee is responsible for establishing visiting hours, con- trolling dispensary cash, and can help guide in the event of an evacuation or during an epidemic. Committee members join the volunteers during the last three days of their training session. To date, 158 volunteers have been trained in Maradi District and rudimentary drugstores established in 79 villages. 4. Midwives. Practically all births occur in villages under unsanitary conditions. As it is impractical to envisage the establishment of enough maternity hospitals to take care of all births, the "animation" service started a training program for "traditional" midwives. Selected midwives receive 10 days training at the nearest maternity center, learning pregnancy hygiene, normal and abnormal births, and child care. To date 166 midwives ANNEX 6 Page 2 have been trained in 83 villages. This program has not been as successful as anticipated because midwives are older women. "Animation" is now selecting younger women to assist the older midwives and eventually to replace them. 5. Female Village Leaders. Selected women are being trained by "anima- tion" to become village leaders who will organize a number of activities (recruitment of midwives, preparation of food for small children, distribution of selected roosters, and treatment of goats with parasites). Women are becoming increasingly involved in agriculture as many cultivate their own fields (1/4 to 1/3 of total cultivated areas) and feminine village leaders now exist in 52 villages of four arrondissements. B. The Health Project Component 6. This project component comprises the training of additional first aid volunteers, midwives and female village leaders. The training will be carried out by the Health Ministry for first aid volunteers and midwives, and by the Project Unit for female village leaders. The Health Ministry will sign an undertaking to the P.M.U. to this effect. 7. 90 new first aid volunteers will be trained for 45 new villages and the existing 158 volunteers will take refresher courses. New villages will be equipped with a standard village drugstore. 114 new midwives will be trained and the existing 166 midwives will follow refresher courses. Nurses will all be equipped with a maternity kit, replacements being purchased by midwives from a fee collected for each birth. 172 new female leaders will be trained by the P.M.U. ANNEX 7 Page 1 NIGER MARADI RURAL DEVELOPMENT PROJECT Irrigation Component 1. The Goulbi de Maradi constitutes the most significant natural feature of the Departement and from an agricultural point of view is one of its richest resources. This is because the Goulbi possesses relatively fertile soils and as yet untapped irrigation potential. The Goulbi is the flood plain of the Maradi River. The River rises in the North. Central State of Nigeria, flows north into Niger, turning northwest down stream of Maradi and then west to re-enter Nigeria where it connects with the Niger River through the Sokoto river system. In Niger the river flows for only part of the year, June through October, and flows are large only in the period July through September. The river is in the process of fossilization, i.e., it is drying up, albeit at a very slow rate. The possible arrestation of the pro- cess will depend upon whether conservation measures are practiced in its catchment area which lies principally in the Katsina Province of Nigeria. As described in the main report during negotiations of the proposed credit, confirmation would be obtained from the Government of Niger that it would open discussions with Nigeria with a view to reaching agreement on the use of the water of the Maradi River and on a material program of catchment con- servation. Such agreements and their implementation would be a prerequisite for investment for any major irrigation works on the Maradi. For the irri- gation component on this project it is not essential since the proposed 500 ha would utilize only 10% of the present replenishable supply and investments would be long amortised before water supplies became inadequate. 2. The village of Madarounfa lies about 30 km south of Maradi and just north of Madarounfa Lake. The Maradi River is joined by the Gabi River, see map. In the high flood season, July-September, the rivers flood and their waters fill a large depression--the so-called Lake Madarounfa. The Goulbi begins north of the Lake and comprises the flood plain of the Maradi River, an alluvial plain some 20 km long and 1.5 km wide. 3. The soils of the Goulbi are reasonably fertile and in physical terms constitute approximately 75% sandy-clay, 15% clay and 10% sand. The Goulbi is cultivated in the traditional crops, sorghum and millet, and some maize and cotton are grown. The crops are planted in the wet season and treated as rainfed. Yields are very low because of the periodic flooding of the plain in the July-September period. There is some dry season irrigation from small wells sunk in the Goulbi to tape the groundwater. The water is raised by shadoof and in some cases by ox power. These wells, dug by hand, are usually in low spots to minimize both the depth of the well and the energy required in raising water. The trade-off for this is that these areas ANNEX 7 Page 2 are most s-sceptible to produce flooding when the wells and other structures-- suct as dikes--are damaged. Because of these problems the amount of irriga- tion practiced by farmers is insignificant. 4. The potential for irr.gation provided by tY-- Maradi River and the fertile Goulbi soils is large. The problem is, however, that regulation of the River through construction of a storage dam appears very expensive. Such a possibility was examined in 1967 by the French consultants SOGREAH. The SOGREAH plan, described in the Appendix, provided for controlled irrigation on 4,400 ha and improved flood recession cropping on 2,500 ha. Technically the plan has some points that require further and better definition, but prima facie its great drawback is the high capital cost for civil works per ha irrigated, over US$7,000 in 1975 terms has been roughly calculated. 5. An alternative to surface water development would be to pump from the groundwater reservoir that lies below the Coulbi. This reservoir is replenished annually and its development would eliminate the expensive reser- voir required for surface irrigation. At the same time Maradi River would need regulation to prevent the periodic flooding that now occurs. Whether this would be best through some form of diking or through a hydraulic struc- ture is yet to be determined. 6. Apart from its irrigation potential the Maradi River has other, and negative, economic consequences for the Departement. First, the bed of the river is rising due to silting and the annual flooding is worsening. Second, the river is tending to shift its bed, particularly in the area of the town of Maradi itself, and substantial damage has been caused in the town due to this. Third, because of its flooding characteristic the cost of bridging the River, in the vicinity of Maradi, is prohibitive and as a conse- quence a substantial and fertile area of the Departement is cut off from the town for long periods of the year. The problems caused by the unregulated river have reinforced the pressure to initiate a scheme of the SOGREAR type which additionally would bring irrigation to an otherwise arid area. The African Development Bank has been asked to finance it but has, it is under- stood, declined to do so. A possibly, indeed probably, much cheaper alterna- tive would be to regulate the river through cheaper structures, and utilize groundwater through pumps and tubewells for irrigation. At this time, however, there is insufficient data available to analyze the groundwater alternative. 7. Under the project the following irrigation component would be carried out: (a) studies to determine the comparative merits of the surface and groundwater alternatives for developing irrigation in the Goulbi, including flood protection for Maradi, and construction of a bridge (or other) link with heretofore isolated areas of the Departement; ANNEX 7 Page 3 (b) provision of funds for implementing about 500 ha of irrigation mainly through groundwater development. Terms of reference for the studies and work needed under (a) are at Appendix 2. Below background and other details relating to (b) are provided and discussed. 8. Climate. Main characteristics of the climate in the Goulbi area are as follows: - high temperatures: average minimum and maximum range respectively from 300C (August) to 40.50C (April) and 13 Co (December and January) to 250C (May); - low rainfall: average rainfall at Maradi is 625 mm, most of which occurs during the rainy season (92% from June through September); - high evaporation: about 3,200 mm equivalent to an evapo- transpiration rate of around 2,400 mm annually. The above data indicate the harsh climatic conditions prevailing and indicate the importance of irrigation development wherever it is feasible. Irrigation Fund 9. The irrigation fund for which US$0.9 million is allocated in project costs would be available for the development of any small irrigation works in the project area but it is expected that most of its expenditures would be in connection with groundwater development in the Goulbi. Each proposal for use of the fund would be subject to approval of CND and IDA. The PMU would prepare a dossier for each sub-project estimated to cost more than US$20,000. In the case of smaller sub-projects a number of similar projects would be covered by a single dossier. 10. In the initial selection of sub-projects the PMU would apply the criteria contained in the law 68/28 of 1960, which regulates the allocation of land on all government financed irrigation schemes in Niger. - Farmers already cultivating where a scheme would be established would receive priority for land allocation. - Farmers would be guaranteed security of tenure as long as they cul- tivate their plots separately. - Farmers would be allotted 0.25 ha per active member of the family. In addition to these general criteria, - Participating families would be required to provide the unskilled labor needed for sinking the well, land leveling and for con- ANNEX 7 Page 4 struction of the irrigation channels and flood protection dikes; - -the potential beneficiaries would be, or prepared to be, members of a cooperative that would handle matters such as the recovery of capital costs and credit repayments and the provision of extension, seasonal credit, input supply and other 3upport services; - the cooperative, or other farmer entity, would sign a contract with Government stipulating matters such as the recovery of investment costs, and that the scheme would be operated under project staff supervision during the project disbursement period. A sub-project meeting the above tests would thereafter be subject to detail planning and feasibility study. Sub-projects submitted to CND and IDA for approval would have to be shown to be technically, economically and finan- cially feasible and to contain satisfactory arrangements for the recovery of investment costs from participants. 11. The size of the fund has been calculated on the basis that it should be possible to develop 500 ha of the Goulbi through some 50 schemes of about 10 ha each utilizing water pumped from wells. In practice actual achievements probably will comprise a wide variety of irrigated developments. Below the details of a typical 10-ha pumping unit are described. Characteristics of a 10-ha Irrigated Perimeter 12. The performance of existing wells at the Tarna Research Station indicates that wells of3a total depth of between 10 and 15 m typically have outputs of at least 30m /hr. For project purposes it is assumed that the average irrigated perimeter in the Goulbi would be equipped with such a well. Given the cropping pattern described below, 30m3/hr would be sufficient for a perimeter of 10 ha. 13. The model described below constitutes one way of utilizing the soil and water resources of the Goulbi. However, while it may be advocated in the early years of Goulbi development it seems inevitable that it will be changed in the light of experience. Consequently the model is employed solely to demonstrate the economic and financial viability of groundwater development. Cropping Pattern (Total and per Farmer) Wet Season Dry Season ----------- ha ------------- Cotton 5.0 (0.25) Sorghum 5.0 (0.25) - Tomatoes - 2.0 (0.10) Onions 2.0 (0.10) Groundnuts/Tobacco/Others - 1.0 (0.05) 10.0 (0.50) 5.0 (0.25) ANNEX 7 Page 5 Under this system only 50% of the land would be cropped in the dry season, and the land occupied by cotton would be followed by fallow each year. Water requirements for such a cropping system are shown at Table 1, as is detail on pumping requirements. At maximum water requirements, i.e., in January and February up to 18 hours of pumping daily are required; this compares with only 1 hour daily in June and 3 hours in July. 14. Using a full package of inputs for the above crops including im- proved varieties and fertilizers (except for sorghum), the following yields and yield build-ups are expected to be obtained. Kg/ha (after 4 years) Seed cotton 1,700 (2,000) Sorghum 2,500 (3,500) Tomatoes 25,000 (35,000) Onions 30,000 (35,000) The above yield ranges are considered conservative and have been achieved elsewhere in West Africa by farmers newly introduced to irrigation. Financial and Economic Returns 15. A model budget for a farmer cultivating 0.5 ha annually on a 10-ha perimeter is at Table 2. This shows that after four years gross income should amount to some CFAF 114,500 annually. Expenses before O&M costs and any rent or cost recovery are estimated at CFAF 6,600. O&M costs including pumping and replacements are estimated at another CFAF 18,600 clearing about CFAF 89,300 to cover the farmers' rent to recover Government's investment costs at 10% interest over 30 years. Such a rent would be about CFAF 22,000, leaving CFAF 67,200 (US$305) as a return to the farm family's labor. At an estimated input of 235 man-days, this return would be equivalent to CFAF 286/ man-day. Although not a large amount on a man-day employed basis, in sum it would represent 39% of the average farm family's current income and since, see Annex 4, management of an irrigated holding would not require any cut- back in the family's rainfed operations, it would mean a significant advance in the family's standard of living. 16. The economic rate of return from investment in a 10-ha irrigated perimeter is estimated at 32%. ANNEX 7 Appendix 1 Page 1 GOULBI DE MARADI Irrigation Development Project SOGREAH Study General The SOGREAH Project 1. The purpose of the project proposed by SOGRLAH is to use waters of the Maradi and Gabi rivers for irrigation of the Goulbi. An agricultural survey was conducted aimed at intensification of traditional crops and diversification by production of cotton, fodder and miscellaneous crops. Several rotation systems were contemplated. 2. The project works (see attached sketch) would irrigate 3,400 ha of the Goulbi from flood waters stored in Lake Madarounfa. Water would be delivered to the irrigated area through a main canal which would cross th" Maradi river in a siphon and continue along the foothills on the right bank of the river. Flood protection would be accomplished by a regulating re- servoir on the Maradi River created by an earth fill dam across the river at Madarounfa. Flood waters would be stored and released at rates not to exceed the capacity of the river channel, thus avoiding natural flooding of the Goulbi. The SOGREAH plan envisaged that (i) flood recession cultiva- tion would develop around the regulating reservoir (some 2,500 ha) and (ii) flood control systems would be developed along the Maradi river (1,000 ha between Maradi and Tibiri). The total net area involved amounts to some 6,900 ha. 3. Some 2,650 meters of dikes would be constructed to increase the volume of the Madarounfa Lake. The net volume available would amount to some 20 million m3, but the village of Madarounfa would have to be relocated on a higher dune. To fill the lake from the Maradi river would require additional works upstream, a rockfill weir across the river and intake structure and a main canal 3,850 meters long connecting the river and the lake. 4. An earth fill dam would be constructed on the Maradi River to prevent downstream flooding of the Goulbi (length: 6,195 m; top width: 3.50 m). The total volume of water to be retained, even in the exception-. case of an overflowing of the Madarounfa lake, would amount to some 100 ia m3, 50% of the average yearly flow. In addition to the siphon spillway, 8 groups of 3 siphons, the dam would have a sluice for desilting purpose and a bottom outlet for dewatering the reservoir. ANNEX 7 Appendix 1 Page 2 5. An irrigation intake would be constructed in the Madarounfa dike and the main canal, capacity 7 m3/s, would cross the Maradi River in a siphon and continue along the foothills on the right side of the Maradi River, a total length of some 18,000 meters. The irrigation system would include secondary and tertiary canals and a surface drainage system. The main collector drain (length: 6,750 m), would convey drainage water back to the Maradi River. Costs 6. Costs for civil works were updated by the Genie Rural department in Niamey in April, 1974. Taking into account an overall increase of 25%, the costs at mid-1975 prices would be: Estimated Civil Works Costs (CFAF million & US$ million) All works by Irrigation System by Same as B but Contract Force Account other excluding (taxes included) works by contract taxes (taxes included) A B C CFAF US$ CFAF US$ CFAF US Basic works at Madarounfa (dam, dikes, weir, canal, etc.) 2,818 12.80 2,818 12.80 2,226 10.12 Irrigation System 3,108 14.12 2,473 11.24 2,143 9.74 Related Works (tracks, etc.) 1,200 5.45 1,200 5.45 947 4.30 TOTAL 7,126 32.37 6,491 29.49 5,316 24.16 Note: Conversion rate US$1 = CFAF 220 From the above figures the per hectare cost for the 3,400 ha irrigation system would be US$7,100 excluding taxes and with the irrigation system constructed by force account. Comments 7. The preceeding briefly described project is as proposed by the consultants SOGREAH, and has not been reviewed in detail. Their assumptions are presented without changes. As the SOGREAH survey was carried out in 1965, a substantial review would be required to verify several aspects of ANNEX 7 Appendix 1 Page 3 the project particularly the agricultural aspects (crops, rotations, yields, etc). On the other hand, the engineering work was carried out to more detail and may be more reliable, but would require considerable checking and updating of costs, etc. The SOGREAH economic analysis made 10 years ago indicated a poor rate of return for the project and economic calculations have not been updated, but the high costs presented in para 8 indicate a marginal project at best. 8. A detailed review of the project would be required to more closely identify aspects requiring additional data or further study but there are several technical areas of concern, for example (i) the costly diking for flood protection and the siphon crossing the Maradi River and (ii) the rate at which capacity of the reservoir on the Maradi River would be reduced by sediment accumulation. Both of these points should receive careful attention if the SOGREAR proposal is considered further, the former to effect a less costly design for the irrigation system and the latter to determine the usable life of the reservoir on a river that from all appear- ances carries a heavy sediment load which would be very difficult to sluice through the dam. ANNEX 7 Appendix 2 Page 1 NIGER IRRIGATION DEVELOPMENT OF THE GOULBI DE MARADI Studies Required 1. Background A project based on the use of Maradi River surface flow was studied by SOGREAH in the 1960s. Main structures are: a low dam across the river at Madarounfa which would regulate the river flow, and a lake at Madarounfa which would accumulate water from the river and later release it into the Goulbi through an irrigation network, spreading along the right bank of the river. The net irrigated area would cover 3,400 ha. On the other hand, tapping underground water from the Goulbi aquifer would be very attractive due to very favorable conditions such as: shallow depth of the aquifer, regular replenishment, high "capacite d'emmagasinement", good quality of the water, etc. However, protection against floods should be carefully examined. Before beginning full irrigation development of the Goulbi, it is most important to find out which alternative is the most economical and should be carried out. The purpose of the studies outlined below is: (i) to provide the required information and (ii) to launch a 500 ha irrigation development scheme through underground water pumping, if this alternative is approved. 2. Agriculture The agricultural aspect of SOGREAH's project needs updating: crops, yields and rotation should be redefined in accordance with the conditions now prevailing in the Maradi area (construction of new agro- processing industries, etc.). Alternative methods of cultivation should be envisaged and compared from all aspects -- economical, technical, social, and employment. 3. Hydrological Study The hydrological study should focus on two major items: (i) river flooding and (ii) sedimentation in the river bed. More information about floods is necessary to determine which structures would more adequately protect the irrigated area of the Goulbi. In that respect, the study should aim at providing information connected with flood spreading on the Goulbi (areas, frequencies, damage to crops, etc.). Moreover, since one solution for flood protection could be a regulating dam across the river, sedimentation in the reservoir is a problem which must be pointed out, and a study should be undertaken in that direction (flood water samples, analysis of the catching area natural cover, comparisons with other, similar conditions, etc.). ANNEX 7 Appendix 2 Page 2 4. Hydro-geological Study The Goulbi de Maradi aquifer is unknown, insofar as no relevant hydrological study has yet been carried out; nevertheless, the present use of the aquifer (wells) suggests tha-t the potential is aorthwhile and tapping conditions are favorable. Howe,.er, these are a priori assumptions, based on a limited knowledge, and 4t is certain that a better knowledge of the aquifer is required, if full irrik-ation through underground water tapping is to be implemented. The purDose of this study is to give to the engineering de- signer all characteristIcs of boreholes (or wells), such as: depth, outflow, distance between wells, etc. Two surveys could be carried out to provide these elements: (i) a geophysical survey (seismic, electric or mixed method) (30 km), and (ii) a borehole test campaign (15). 5. Pedological Advice A traditional pedological study would not be necessary. A single map covering the entire Goulbi area would be provided, showing the main cate- gories of soils and their ability to grow the proposed crops. This map would be drawn from the existing aerial photos and would require a minimum of field work (sample analyses, trenches, etc.). 6. Irrigation Works; Civil Engineering (a) A first step would consist of an appraisal of SOGREAH's proposal, including spot checks on key points of the main structures (relevant topographic data, usable capacity, and simulation of operating conditions of the reservoir, etc.). The consultant will propose the main points to be checked, and if necessary, additional surveys could be undertaken. It may be assumed that the irrigation and drainage network designs are still suitable. Possible alternatives using surface waters should be envisaged (use of Madarounfa Lake for irrigation of nearby lands on the left bank of the Maradi River, if possible). (b) The second step would focus on full irrigation development of the Goulbi through underground waters. Alternatives would be studied separately (wells, boreholes), including flood protec- tion, and would be compared with surface water systems. Economic analyses should be carried out for each solution. In both cases (surface or underground water systems), alter- native solutions related to flood protection should be studied carefully. Two extremes would consist of (i) a regulating dam across the river, as proposed by SOGREAH or (ii) a dike stretch- ing all along the river, combined with additional strengthening of erodible points. To minimize costs, an intermediate solution might also be considered. ANNEX 7 Appendix 2 Page 3 (c) If tapping the aquifer appears to be the most economical way to develop the Goulbi, the study would proceed, and the detailed engineering design for a first development stage of some 500 ha would materialize. On the other hand, if the use of surface waters were to be preferred, its lack of flexibility would require further investigations, which are not stipulated in these general terms of reference. A third alternative could be the development of irrigation from the groundwater table conjunctive to the development of surface water in those areas where both approaches would not be mutually exclusive. 7. Organization and Management Organizational and managerial arrangements constitute a part of the present required studies. If a first-stage irrigated area were developed through boreholes or wells, relationships between the authorities, the exist- ing agencies (U.N.C.C., etc.) and farmers would have to be clearly defined before implementation of any works. It is also evident that all land tenure problems would have to be solved beforehand. NIGER xAp r RURaL Ivaar r m sJEC? INUKGTION SQUI Wr Requiremeents for 10 ha --------------------------------Rainfall---------------------------------------------- J F M A M J J A S 0 N D Total - (mm) 0 0 0 5 30 64 161 240 110 14 0 0 624 - no. of days 0 0 0 0.7 3.7 6.3 11.1 14.7 9.8 1.4 0 0 47.7 -----------------------Water Requirements (m)--------------------------------- J FA M J A S 0 N D Total Crops Cotton (planting 6/15) 66 132 155 150 130 633 Sorghum (planting 7/15) 58 132 144 150 484 Tomatoes (replanting 11/10) 223 190 34 84 179 710 Unions (replanting 11/15) 180 234 86 113 132 745 Peanut (planting 10/1) 220 160 80 175 140 165 940 Tobacco (replanting 12115) 135 70 180 240 625 3 ------------------------Pumping Requirements (10 ha - a )-------------------- J F M J J A S 0 N D Total Cotton 5 ha 500 1,500 2,000 2,000 1,000 7,000 Sorghum 5 ha 2,000 2,000 1,500 5,500 Tomatoes 2 ha 4,460 3,800 680 1,680 3,580 14,200 Onions 2 ha 3,600 4,680 1,720 2,260 2,640 14,900 Misc. 1 ha 1,775 800 400 1,200 1,600 2,000 7,775 Theoretical Requirements 9,835 9,280 2,800 500 1,500 4,000 4,000 3,700 5&540 8,220 49,375 Effective 16,390 4,670 2,500 6,670 9,230 Requirements 1/ 15,470 830 6,670 6,170 13,700 82,300 Daily hours of pumping @ 30 m3/hour 18 18 5 1 3 7 7 7 1o 15 ./ Efficiency of 0.6 ANNEX 7 NIGER Table 2 MARADI RURAL DEVELOPMENT PROJECT Irrigation Schemes Farm Budget (0.50 ha) 1975 ---------Year I----------- --------Year 2-------------- --------Year 3---------- ----------Year 4----------- Prices Area Yield Production Yield Production Yield Production Yield Production CFAF/kg (ha) Kkg/ha K CFAF Kg/ha K CFAF Kg/ha Kg CFAF Kg/ha < CFAF Rainy Season Cotton 47 0.25 1,700 425 19,980 1,800 450 21,150 2,000 500 23,500 2,000 500 23,500 Sorghum 28 0.25 2t500 625 17,500 2,800 700 19,600 3,000 750 21,000 3,500 875 24500 Total 0.50 4,200 37,480 40,750 44,500 48,000 Dry Season: Tomatoes 8 0.10 25,000 2,500 20,000 25,000 2,500 20,000 30,000 3,000 24,000 35,000 3,500 28,000 Onions 11 0.10 30,000 3,000 33,000 30,000 3,000 33,000 32,000 3,200 35,200 35,000 3,500 38,500 Total 0.20 53,000 53,000 59,200 66,500 Total Gross Income 90,480 93,750 103,700 114,500 Agricultural Production Costs Plowing at 6 days/ha 2,250 2,250 2,250 2,250 Insecticides treatment - Cotton 5 sprayings @ CFAF 1000/ha 250 250 250 250 - Tomatoes 3 sprayings @CFAF 1100/ha 275 275 275 275 Fertilizer Cotton 50 kg urea/ha @ CFAF 50/kg 2] 625 625 625 625 Tomatoes 200 kg compound/ha @ CFAF 52/kg 2/ 1,040 1,040 1,040 1,040 Onions 180 kg sulphate N H4 @ CFAF 60/kg 2/ 1,080 1,080 1,080 1,080 75 kg superphosphate/ha @ CFAF 47.5/kg 2/ 360 360 360 360 Hand tools 50 50 50 50 Seeds - Sorghum 25 kg/ha @ CFAF 28/kg 180 180 180 180 - Tomatoes 2500 seedlings/ha @ CFAF 0.5 130 130 130 130 - Onions 4000 seedlings/ha @ CFAF 1 400 400 400 400 Total Agricultural Production Costs 6,640 6,640 6,640 6,640 Pumping @ CFAF 2/m3 8,230 8,230 8,230 8,230 Maintenance @ 5% of investment 10,400 10,400 10,400 10,400 Total Pumping and Maintenance 18,630 18,630 18,630 18,630 Income before Cost Recovery 65,210 68,480 78,430 89,230 Cost Recovery 22,000 22,000 22,000 22,000 Net Income 43,210 46,480 56,430 67,230 Net Income per man-day 196 207 248 286 Man-days 220 225 228 235 1/ Subsidized 66% 7/ Subsidized 50% NIGER MARADI RURAL DEVELOPMENT PROJECT IRRIGATION SCHIES Labor Requirements (0.50 ha) Month 1 2 3 4 6 7 8 9 10 11 12 Total Clearing - - - 5 - - - - 12 - - - 17 Soil Cultivation - - - 10 15 - 15 10 - 50 Maintenance 1 1 2 1 1. 1 J1 I . .1. Nursery - - 5 - - 10 Transplanting - - - - 8 8 - - - - 8 8 32 Weeding 8 - - 2 8 8 8 - - 2 8 8 52 Fertilizing - - - - 1 1 - - - - 1 1 4 Harvesting - 15 10 - - - - 15 10 - - - 50 9 16 15 23 33 18 9 16 27 23 28 18 235 t4- ANNEX 7 Table h NIGER MARADI RURAL DEVELOPMENT PROJECT IRRIGATION SCHEMES Project Production 196178 97 1980 1981. Cotton (tons) 170 440 470 500 500 Sorghum 250 655 720 800 875 Tomatoes 1,000 1,500 2,700 3,200 3,500 Onions 1,200 3,o0o 3,o8o 3,320 3,500 ANNEX 8 Page 1 N::rGER MARADI RURAL DEVELOPMENT PROJECT Training 1. The project will expand existing and introduce new training services in the area. A. Expansion of Existing Training Services 2. Training of Farmer Leaders. Farmer leaders will receive annually one week's training in improved cultivation methods at the 15 ALC's. The leaders are the best farmers in the village and are elected by their peers. They would be the first farmers to try new agricultural techniques and the results would be discussed by the village assembly. It is estimated that one out of ten farmers would be a leader and entitled to attend these training courses. 3. Training of Groupement Mutualiste Villageois (GIV) Officials. Prin- cipal officials include the president, secretary and treasurer. They must keep the books of the GMV, and know how to read and write. Initial training would follow functional literacy courses and in addition they will attend three-day training sessions in rudimentary bookkeeping twice a year; these will take place in April, before Loans are made and in October at the time of collection. The training of GMV officials will be administered by the Cooperative Affairs staff. 4. Functional Literacy Training. Functional literacy centers will be created in extension workers villages (one out of three). The extension workers will be the teachers and each center will instruct 30 students for three hours a day during three months in the dry season in two successive years. Subject matter will be based on project activities, and pedagogic materials prepared by the project training services. 5. Orientation Sessions. Drientation sessions, which will take place at the cooperative headquarters, will first present and explain the project to village representatives (five per village and 50 in total), and in following years repeat sessions will be held to consider results and redefine develop- ment programs. The sessions, which will last one week the first year, and three .days the following years, will be conducted by the project Cooperative Affairs staff. 6. Training of Cooperative Officials. There are six principal officials for each cooperative: the president, weigher, secretary and three advisors. They should be able to progressively manage the cooperative without outside ANNEX 8 Page 2 assistance. Training will vary with cooperative maturity: at first, instruc- tion will be given in simple procedures such as weighing and entering quanti- ties; it will then turn to more complex procedures such as inventory keeping, accounting of cash balances, establishing yearly accounts and determining bonuses. Courses will last one week per year, include 20 students, and be conducted by the project cooperative staff at the headquarters of the Asso- ciation Locale de Cooperative (ALC) during the rainy season. B. New Training Services 7. Young Farmers' Training. Youths between the ages of 18 and 25 will be taught improved cultivation methods at demonstration farms at ALC head- quarters. Forty students will be trained annually at each ALC during the planting season in alternating groups of 20. The groups will alternate one week at the center and one week with the family. This will allow the youths to maintain contact with their families, to immediately apply what they have learned, and would not deprive the family of labor when most needed. Students, who must be literate, will work mornings in the field and take general courses in the afternoons. Courses will be given by extension monitors (see para 11) and training services staff. 8. Extension Workers' Training. Extension workers will be selected by cooperatives and project technical services amongst farmer leaders who are already functionally literate. They will be trained in improved cultivation practices at the expanded Centre de Formation de Jeunes Agriculteurs (CFJA) in Maradi. Training will be essentially practical; students, who will be paid during training, will jointly cultivate a small area on which they will apply all the techniques which they will later promote. Courses will last one planting season (April 1 to October 31), and will include functional literacy teaching. The present center will be expanded to accommodate 100 students. 9. Project Supervisory Staff. The supervisory staff to receive training under the project includes: Technical Training Cooperative Department Department Department Arrondissement Chief Chief Chief Accountant ALC Chief Chief Deputy Chief 6 months Deputy Chief 6 months Deputy Chief 6 months Deputy Chief 6 months Deputy Chief Extension Monitors ANNEX 8 Page 3 The ALC Technical Operations deputy chiefs will divide their time between extension work in the rainy season and functional literacy and accounting in the dry season. 10. ALC Technical Operations. Deputy chiefs are trained at the UNCC training center (financed since 1970 under IDA Credit 207-NIR). Courses include three months in class, where agricultural techniques, cooperative management and business administration are taught, and three months of super- vised work in the field. Although the content of the courses is good, it is mainly oriented towards cotton cultivation; and students would profit from another three month period in class immediately after the three months field experience. For these reasons the project includes complementary training as follows: General Agriculture. Study of improved techniques proposed by the project, and the pedagogy of transmitting them. Practical Agriculture. ALC technical department deputy chiefs, who will supervise extension workers in their areas, will be trained simultaneously at Maradi CFJA. They will not be housed at the center but will commute from Maradi. Cooperative Management. Study of the cooperative movement, organ- ization and operations. Hausa Proficiency. Learning to read, write, and teach in Hausa. General agriculture, cooperative management, and Hausa training will be taught by training department staff, for three months the first year, and one month the following years. 11. ALC Extension Monitors were trained at Kolo Agricultural School * prior to 1968 (two years). This education was somewhat rudimentary but some graduates have since acquired much practical experience. They will be respon- sible for demonstration farms and young farmers' training. The project includes complementary training as follows: General Agriculture. Study of the demonstration farms, explanation of the various production factors, and links between applied research and promotion of improved techniques. Practical Agriculture. In setting up the demonstration farm. Cooperative Management, Hausa Teaching. As for ALC deputy chiefs. Pedagogical Training. How to teach young farmers, and to integrate them in the family during the period out of school. Training will last three months the first year, and be repeated one month annually in following years. ANNEX 8 Page 4 12. ALC Technical Operations Chiefs, and ALC Cooperative Affairs Dept ty Chizfs are trained at Kolo Agricultural School. Their education is multipurpose, practical, and adapted to their fuictions within the project. Complementary training is, howet'er, necessary as follows: General Agriculture. InIformation on proje-t objectives, refresher course in agricultural techniques. Planning and Management. Work planning of staff supervised, minutes of meetings, filing etc. Training will last two months the first year, and be repeated one month annually in following years. 13. ALC Community Development Chiefs are trained at Kolo (majoring in "animation") or trained at Ecole Nationale d'Administration. Their educatIon is adapted to their functions within the project. Complementary training is, however, necessary as follows: General Agriculture, Planning and Management. As for ALC Chiefs and Deputy Chiefs. Specialized Training. Functional literacy techniques, promotion of radio-clubs, socioeconomic activities. Training will last two months the first year, and be repeated one month annually in following years. 14. Arrondissement Technical Operations Chiefs are trained at Katibougou, Mali. They receive a good technical training and some rudiments of management, but as they are trained abroad they need complementary training in "animation", cooperative and general management. Training will last two months the first year, and be repeated one month annually in following years, 15. Arrondissement Cooperative Affairs Chiefs and Accountants are trained at UNCC training center. They receive good accounting but no agri- cultural training and need complementary training in this field. Training will last two months the first year and be repeated one month in following years. Government should also send more candidates to Institut Panafricain de Developpement (IPD) at Douala, Cameroon which dispenses the best training in cooperative management and accounting in the region. 16. Arrondissement Community Development Chiefs are either school-teachers or trained at UNCC training center in "animation" to satisfactory standards. As cooperative services chiefs they need some agricultural training. Train- ing will last two months the first year and be repeated one month annually in following years. ANNEX 8 Page 5 17. Blacksmith Training. Although this program was started in 1968, no new center has been established since 1971. A center is the shop of a qualified blacksmith who agrees to instruct other blacksmiths in modern tech- niques. About 25 centers will be established under the project, and 60 blacksmiths trained to bring the total number of blacksmiths in the area to 85 (one per cooperative). Training will extend over a three year period: the first year there would be three two-week sessions; the second year two two-week sessions and the third year two one-week sessions. Blacksmiths learn to use modern tools and techniques and some can make animal drawn hoes at one third the cost of imported equipment. The project will finance credit to blacksmiths to acquire basic equipment. C. Organization of Training Component 18. The Project Unit Community Development Section will be responsible for conducting all training activities with the exception of young farmers, extension workers and blacksmiths training, which are very technical in nature and will be conducted by the Technical Operations Section. 19. The cost of training services is itemized at Annex 11. ANNEX 9 Page 1 NIGER MARADI RURAL DEVELOPMENT PROJECT LIVESTOCK PROJECT COMPONENT A. General 1. Before the recent series of rainfall-deficit years, the cattle herd of the Departement was owned about equally by migratory pastoralists and by sedentary farmers. During the rainy season about one third of the herds would be in the agricultural zone, south of isohyet 500 m/m, and the remainder to the north of that limit, some of these being owned by farmers living in the south and herded by pastoralists. In the dry season the north- ern herds would be brought south to feed on natural pastures and on crop residues. 2. The drought years disrupted the traditional pattern, and had differ- ing impacts on the northern and southern herds. In the North, an estimated 50 percent of the herd was destroyed, compared to only about 15 percent in the South. Consequently the Arrondissements which suffered most from the drought in the Departement were in northern Arrondissements of Dakoro and Mayahi. The net result is that the herd in the agricultural zone has been almost completely re-established to the pre-drought level, while the herd north of isohyet 500 m/m is still greatly understocked. 3. Some 14,000 pastoral families are estimated by Government to live in the Departement, compared with 150,000 families countrywide. The number of pastoralist families who lost everything is estimated at 76,000 for Niger as a whole of which 8,000 in the Departement de Maradi, 7,400 Peuhl and 600 Touaregs. Since February 1974, Government has initiated a credit program to help those pastoralists who lost everything begin to establish another herd. Under this program the Services de 1'Elevage of the Ministere de 1'Economie Rurale et du Climat distribute to each type of family the following: Peuhl, five head of cattle and 10 goats and sheep; Touareg, five camels and 10 goats and sheep. Selection of the pastoralist families is made by a "comite" chaired by the Sous-Prefet of the Arrondissement and which includes both officials and traditional chiefs. The pastoralist chooses his own animals from those offered for sale and concludes a contract with the "comite" to repay the purchase as follows: (a) cattle and camels, an interest-free loan repaid over seven years including three years of grace; (b) goats and sheep, an interest-free loan repaid over three years including a one year grace period. ANNEX 9 Page 2 Some 900 head of cattle, 90 camels and 2,700 goats and sheep had been dis- tributed by April 15, 1975 in the Departement de Maradi at a cost for animals of about CFAF 67 million. B. The Livestock Project Component 4. The livestock component included in the proposed project would comprise: (a) equipping and financing the operation of the livestock services in the Departement to enable them to conduct more efficient disease prevention vaccination campaigns and programs for the treatment of internal parasites; (b) providing credit needed for the distribution of animals to pastoralists who lost: their herds during the drought; (c) studying the livestock industry of the south of the Departement and preparing a development program. 5. Equipping and Financing the Operation of the Livestock Services Equipment needed by the livestock services would include 5 four- wheel-drive vehicles and refrigeration equipment needed for handling vaccines (ice boxes, freezers, and refrigerators), and some small tools and instruments. The project would finance operating costs of this equipment during the three years including IDA credit disbursement period. 6. Vaccination Campaigns. A systematic campaign against rinderpest and pleuropneumonia would be conducted during the three years, with all cattle in the Departement being vaccinated each of the three years. The European Development Fund is financing similar campaigns in the departements of Niamey, Tahoua, Dosso and Diffa; and the program in Maradi would complement this. Assurances would need to be obtained from Government that a similar campaign be undertaken in the neighboring,departement of Zinder. After three years of blanket vaccination, it would be necessary to vaccinate calves only. 7. Treatment Against Internal Parasites. All animals are affected by parasites which increase susceptibility to infection in the young. Control treatments are cheap, and would be administered during the rainy season, when small stock, sheep and goats, and young animals, calves, are most seriously affected. The project includes the cost of treating 40 per- cent of all calves and 50,000 goats and sheep, annually. ANNEX 9 Page 3 8. Distribution of Mineral Licks. The project also includes funds for the purchase of mineral licks for distribution to livestock owners. Mineral licks are unknown in the Departenent, and through the provision of these elements, could have beneficial and substantial impacts on productivity. 9. Distribution of Herds to Pastoralists Who Have Lost Everything Funds are provided under the project to finance the purchase of nucleus herds to about 750 pastoral families in the Arrondissements of Dakoro and Mayahi. This action will provide a means of livelihood to about 4,500 people who are presently a public charge. 10. Preparation of a Livestock DeveoP ent Program for the South of the Departement The French consulting firm SEDES has made a general study of the nomadic pastoral industry of Niger including the north of the Departement and this is the basis of the current policy for livestock development. The SEDES study is being up-dated to take into account the impact of the drought, and will be used to formulate projects for the nomadic zone. The up-dating is estimated to be finished by March 1976. Development of the livestock industry of the southern part of the Departement, despite its importance and the oppor- tunities for its better integration with crop farming has not been studied. The proposed project would finance a study of the livestock industry of the southern zone and the preparation of policy and project proposals that would take account of the findings of the up-dated SEDES study that pertain to the north. The study would have three key objectives: .(a) an increase in meat production, especially for export to Nigeria; (b) the better integration of livestock and crop farming; and (c) conservation of the grazing reserve. At this point it is possible to foresee that inter alia the study will make recommendations concerning productivity measures relating to such issues as calving and weaning rates and fattening of beef cattle by smallholders. NIGERN MARADI RURAL DEVELOPMENT PROJECT Livestock Production 1976 1977 1978 1979 1980 1981 1982 1983 and 7 % % thereafter A. With the Project Herd Composition ('000 animals at end of Yea) Bulls and steers over 4 years 51 56 56 56 56 56 56 6 Cows 165 175 183 193 200 200 200 ?00 Calne 72 78 85 88 93 96 96 9., Heifers 1 - 3 years 44 45 45 45 45 55 66 66 Steers 1 - 3 years 47 47 51 49 49 49 49 49 Total Herd 379 401 420 431 443 456 467 4,7 Calving Rate (66% constant) 101 109 116 121 127 132 132 132 Mortality -adults 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 - calves 29 33 28 35 27 35 27 38 27 41 27 41 27 41 27 41 - heifers and steers 7 8 6 6 5 4 5 5 5 5 5 6 5 6 5 6 Sale ('000 nanulal Cull cos 16 18 25 26 31 30 30 30 Bulls and steers over 4 years 22 25 30 36 40 40 41 41 Heifers 2 - 3 years - - - - - - - 11 Total Sales ('000 Anisals) 38 43 55 62 71 70 71 82 Value of Sales ('000 CFAF) Coll cows 1/ 280,000 315,000 437,500 455,000 542,500 525,000 525,000 525,000 Bulls and steers over 4 years 2/ 598,400 680,000 816,000 979,200 1,088,000 1,088,000 1,115.200 1,115,200 Heifers 2 -3 year 3 - - - - - - - 198,000 Valve of Sales 878,400 995,000 1,253,500 1,434,200 1,630,500 1,613,000 1,640,200 1,838,200 ',ilk Production 4/89,000 96,000 102,000 106,000 112,000 116,000 116,000 116,000 Total Value of Sales 967.400 1.091.000 1,355.500 1,540,200 1.742.500 1,729,000 1,756,200 1,954.200 B. Without the Project Herd Composition ('000 animals at end of year) Bulls and steers over 4 years 49 49 49 49 49 49 49 49 Cows 164 170 170 170 170 170 170 170 Calve 69 70 72 72 73 73 73 73 Reifera 1 - 3 years 42 42 42 42 42 42 42 42 SLeers 1 -3 years 47 47 47 47 46 46 46 46 Total Herd 371 378 380 380 380 380 380 380 Calving Rate (66% constant) 101 108 112 112 112 112 112 112 Mortality -adulcs 2 4 2 4 2 4 2 4 2 4 2 4 2 4 2 4 -calves 32 38 35 45 35 46 35 46 35 66 35 46 35 46 35 46 -heifers and steers 9 10 10 9 10 9 10 9 10 9 10 9 10 9 10 9 Sale ('000 animals) Cull cows 16 18 25 26 26 26 26 26 Bulls and steers over 4 years 22 25 26 27 27 27 27 27 Total Sales ('000 aninals) 38 43 51 53 53 53 53 53 Value of Sales ('000 CFAF) Cull cows 1/ 280,000 315,000 437,500 455,000 455,000 455,000 455,000 455,000 Bulls and steers over 4 years 2/ 598,400 680,000 707,200 734,400 734,400 734,400 734,400 734,400 Dalueof Soles 870,400 995,000 1,144,700 1,189,400 1,189,400 1,189.400 1,189,400 1,189,100 Milk Praductins 4/ 89.000 95.000 99,000 99,000 99,000 99,000 99,000 99,000 Total Value of Sales 967,400 1.090.000 1.243.700 1.288,400 1,288,400 1,288,400 1,288,400 1,288,400 Incremental Value of Sales ('000 CFAF) - 1 000 111,800 251,800 454,100 440.600 467,800 665800 1/ 250 kg/animat ( CFAF 70/kg (CFAF 17,500). 2/ 340 kg/animal @ CFAF 80/kg (CFAF 27,200). 3/ At CFAF 18,000/animal. 4/ 80% of cows in calf, 110 liters/cow/year at CFAF 10/liter. ANNEX 10 Page 1 NIGER MARADI RURAL DEVELOPMENT PROJECT Evaluation and Planning Unit 1. The Evaluation and Planning Unit will be responsible for all socioeconomic work carried out by the project, including: - preliminary studies prior to the establishment of irrigation works; and - a systematic evaluation of the project's impact on farming units and systems, and on the economic and social evolution in Maradi District. 2. Studies Prior to Irrigation Works. Sites will be first chosen for their suitability (see Annex 5). Then, project staff will enlist the parti- cipation of the population concerned by explaining how schemes will work and what is expected of participants. During these orientation sessions a socio- logical inquiry will be conducted: - to prepare a complete list of all landowners affected; - to prepare a complete cadastral survey; and - to make a full inventory of production prior to the irrigation schemes, as a base of reference to later compare the added worth brought by the schemes. Farmers will be invited to regroup their holdings in 10 ha blocks and to organize themselves in cooperatives. 3. The methodology of the inquiry will be designed by the Evaluation Unit recently established within MERC to coordinate the evaluation of ongoing agricultural projects at the national level. 4. Evaluation of Project Impact. The unit will conduct a permanent assessment of the project impact on farming units and on the economic and sociological evolution in the Departement of Maradi. This assessment will be based on an interpretation of the following data: production increases, prices farmgate and at the traditional market centers, changes in farming patterns, changes in village cadastral structures, evolution of hired farm labor and accession to private ownership. ANNEX 10 Page 2 5. This assessment will be conducted on two levels: in-depth with four villages representative of the four Arrodissements covered by the project, and extensively throughout the project area. The in-depth study will include: Project Year 1 - The establishment of a cadastral survey from aerial photographs taken at the beginning of the rainy season to show cultivated and fallow land. - A detailed inquiry with all farmers in the villages to determine the demographic composition of the farming unit, land distribution amongst farmers, means of cultivation, sources of income (agriculture and other) and the extent of hired labor. Project Years 2 - Selection of a number of representative farms from the detailed inquiry made in Year 1 and monitoring of these farms during that year (expenses, receipts, home consumption, time allocation, and agricultural production). Project Year 3 - A new cadastral survey from aerial photographs at the beginning of the rainy season, and a new detailed inquiry with all farmers in the villages as in Year 1; and the final appraisal of the representative farms. 6. The extensive study will include monitoring of a number of villages, and study of marketing channels (quantities marketed and prices). 7. The in-depth study will require five research assistants working fulltime during the first and the third year, and three months in the second year. Data will be interpreted by the Evaluation Unit within MERC and analyzed by computer. The extensive study will be done with the cooperation of the project extension staff, and about 300 functionally literate farmers who would be paid a small fee. ANNEX 11 Table 1 Page 1 NIGER MARADI RURAL DEVELOPMENT PROJECT Summary of Project Cost and Financing FINANCED BY 1T6 1977 1978 l 76 -j4P l Government AF '000 COO CFAF '000 S$ '000 CFAF 1000 US '000 A. PY3 peeadgoarters A PMal Staff Salaries R,900 10,900 10,900 30,700 140 6,600 30 24,100 110 Expatriate Staff Salaries 19,100 19,100 19,100 57,300 250 50,600 20 6,400 30 -Buildings 55,900 - - 1,900 200 40,800 180 5,100 20 qouipment 3,200 - - 3,200 10 2,900 10 300 - V!ehicle< 3,600 - - 3,600 10 2,500 10 1,100 - Operating expenses 6,800 8,900 11,000 26,700 120 23,800 110 2,900 10 Cmoulting services .600 2,800 16,800 - 90 1a00 . 10 1 900 T-tol PlO' !! oeadquartera 95,900 U,500 53,800 1l,200 820 142,400 640 41,800 180 A o ,ali ard Ft ni Unit ',70O 7,700 1,700 23,1 00 100 14,900 70 8,200 30 Equipment 500 - - 500 - 400 - 100 - Vehicles 1,800 - - 1,800 10 1,600 10 200 - Operating Expenses 6,600 3,700 3,700 15,000 60 12,400 50 1,600 10 Consulting Services 8,100 2,800 4,200 15,1400 80 13,700 70 1.700 10 T,tal EvaluRti-n and P.ln,Ing in-it 25,000 1L,200 15,600 54,800 230 43,000 200 11,800 50 B. Technical Operations Section L,cal Staff Salaries 2,900 2,900 2,900 3,700 40 2,500 10 6,200 30 Vehicles 2,700 - - 2,700 10 2,400 10 300 - Operating Expenses 1700 1,700 1,700 5,100 20 4,500 20 600 - Total Tochnical Operations Section 7,300 ,,600 4,600 16,500 70 9,400 40 7,100 30 B, Rural Engineering Local Staff Salaries 3,500 1,700 5,900 14,100 60 6,00 30 7,300 30 Expatriate Staff Salaries 2,900 25,900 15,800 64,6001 290 57,400 260 7,200 30 .- rigation Works Construction 6,000 74,200 97,700 177,9O0 790 158,000 700 19,900 90 Irrigation Works Equipment - 12,000 IR,100 30, 11 130 26,800 120 3,300 10 Vehicles 3,600 - - 3,6 20 3,200 10 400 10 Operating Expenses 3,600 3,600 3,600 10,800 50 9,600 40 1,200 10 Consulting Services 5.000 5,000 - 8,000 30 7,100 30 900 - Total Rural Engineering 45,600 123,400 140,100 309,100 1,370 268,900 1,190 40,200 180 B2 General Ariculture Local Staff Salaries 37,500 70,900 105,500 212,700 950 108,500 480 104,200 470 Civil Works 16,100 - - 16,100 70 14,300 60 1,800 10 Equiprent 2,400 - - 2,500 10 2,100 10 300 - Vehicles 16,900 3,500 3,100 23,700 110 21,100 100 2,600 10 Operating Expenses 11,100 12.0 13,800 37.500 160 33,.00 140 4,200 20 TOtal General Agriculture a3,900 86,800 121,600 292,300 1,300 179,200 790 113,100 510 33 Seed-Multiplication Local Staff Salaries 5,loo 5,100 5,100 15,300 70 7,700 40 7,800 30 apatriate Staff Salaries 10,100 10,100 10,100 30,300 130 26,900 120 3,400 10 Vehicles 1,800 - - 1,800 10 1,600 10 200 - Operating Expenses 1.900 1.900 1.900 5,700 30 5,000 20 700 10 Total Seed Multiplication Scheme 18,900 17,100 17,100 53,100 240 41,200 190 11,900 50 B4 Applied Research Local Staff Salaries 1,500 1,500 1,500 6,500 20 1,100 - 3,400 20 Expatriate Staff Salaries 10,100 10,100 10,100 30,300 130 26,900 120 3,400 10 Fquipent 300 1,000 1,900 3,200 10 2,900 10 300 - Vehicles 2,700 - - 2,700 10 2,400 10 30 - Operating Expenses 1,700 1,700 1,700 5,100 1A 4.309 20 f09 10 Total Applied Research 16,300 15,300 15,200 45,800 200 37,800 160 8,000 40 B5 Extension Staff Training Center Local Staff Salaries 5,700 5,700 5,700 17,100 80 10,500 5 6,00 Civil Works 19,700 - - 19,700 90 17,500 8o 2,200 18 Equipment 18,600 - - i8,6oo 80 16,500 70 2, 00 1& Vehicles 5,800 - - 4,800 20 4,300 20 Sa - Operating Expenses 12,900 13.600 13,600 40,100 ig8 5.400 160 4-M Total Extension Staff Training Center 61,700 19,300 19,300 100,300 450 84,400 30 15,9& 7 B6 Blacksmith Training Unit Local Staff Salaries 1,200 1,200 1,200 3,600 20 1,1 - 2,3ft 20 Equipment 1,300 - - 1,300 10 1,2A0 16 1o - Vehicles 1,800 - - 1,800 10 1,600 16 * - Operating Expenses 2?0 3,100 3,600 9.N p0 Total Blacksmith Training Unit .7000 4.300 4.800 16a100 70 12,200 50 3_90 20 SUB-TCTAL 361,600 328500 382,100 1,072,200 6,770 818,500 3,640 253,70 1,130 ANNEX 11 Table I Page 2 NIGER MARADK RURAL DEVELOPMENT PROJECT Summary Df Proleet Cost and Financing FINANCED BY Tot 976-1978 IDA Government 1976 7 1979 CuA '000 U CFAF '000 T US 0 CFA F 000 000 '000 C'-p3rative Affairs Section loca' St,ff Salaries 23,300 26,300 29,300 78,900 350 23,800 110 55,100 240 fftce F ipent 400 400 400 1,200 10 1,100 10 100 - Vehicles 33,900 33,800 lid 39,100 130 3,700 20 Eperating &penses 12,900 13.500 13.700 40.100 170 f 600 1 4.500 20 T tal Cooperative Affairs 70,400 40,200 L3,h00 154,000 680 90,600 400 63,400 280 D. C:n,unity Developnent Section Local Staff Salaries 14,400 '8,900 23,400 56,700 250 8,000 40 48,70 210 Expatriatt S.f' Salaries 14,900 1,800 14,800 46,400 200 S0,500 180 4,900 20 - Bildings 9,600 8,600 9,600 25,800 110 22,900 100 2,900 10 Functional Literacy Equipment 1,500 1,500 1,500 4,500 20 4,000 20 500 - qhi.les 15,400 1,000 1,000 17,400 80 15,400 70 2,000 10 Operating Erpenses 30,600 49.700 68,600 148,900 660 132,300 560 16,600 so T-tal Community Development 85,300 94,500 117,900 297,700 1,320 222,100 990 75,600 330 E. Road Sub-Project Local7taff Salaries 1,500 1,500 1,500 4,500 20 - - 4,500 20 Roads Construction 173,000 173 000 770 153,700 680 19,300 90 Total Road Sub-Project 174,500 1,500 1,500 177,500 790 153,700 680 23,800 110 F. Forestry Sub-Proect Village Plantations 11,100 11,100 1L,800 37,000 170 \ 32,800 150 4,200 20 . Health Sub-Project Medical Kits 2,800 900 900 4,600 20 4,100 20 500 - Vehicles 4,900 4,500 20 4,000 20 500 - Operating Expenses 3,900 4400 4.30 12,60W 11,200 50 1,400 10 Tota, Health Sub-Project 11,200 5,300 5,200 21,700 100 19,300 90 2,400 10 . LIvestock Sub-Project 1. Animal Health Program Equipment 9,900 200 200 10,300 50 9,100 40 1,200 10 Vehicles 11,400 - 11,400 50 10,200 40 1,200 10 Operating Expenses 9,700 9,700 9,700 29,100 130 23.900 120 3,200 10 Increnental Medicine Requirements 6.600 1.000 - 7.600 5 6,700 30 900 - T-tal Animal Health Program 37,600 10,900 9,900 58,L00 260 51,900 230 6,500 30 2 National Herd Rehabilitation Purchase of Animals 37,000 55,500 47,200 139,700 620 124,100 550 , 15,600 70 Agricultural Credit Incremental input requirements 40,100 57,900 58,400 156,400 700 138,900 630 17,500 80 Incremental improved seed requirements 20,500 12,900 19,600 53,000 260 47,100 210 5,900 30 Farm equipment 600 1,300 21,600 23,500 100 20,900 90 2,600 10 Blacksmiths Kits 1,400 1400 100 4,200 10 3,700 10 500 - T"tal Agricultural Credit 62,600 73,500 101,000 237,100 1,050 210,600 930 26,500 120 Other Studies 170,00 16,800 187,600 930 187,600 830 - - Audit of Project Accounts 2 700 1,300 1,300 5,300 20 5,300 20 - Scholarships &.000 5,000 5.000 15000 70 15.0 70 - - Total Others 178,500 23t100 6.300 207,900 920 207,900 920 - - Total Project Cost priot to contingencies, J 1,029,SW 644,100 729,300 2,405,200 10,680 1,931,500 8,580 471,700 2,100 Physical Contingency /I 65,700 44,800 50,600 11I,100 720 140,900 620 20,200 100 Price Contingency /2 4.00 120.100 191.'19 405.700 1500 360.900 1.500 64.800 300 Total Project Cost 1,190,000 809,000 971,000 2,970,000 13,300 2,413,300 10,700 1 556,700 2,500 US$1 - CFA1 12. /1 5% of base costs on all items except irrigation workg and roads (15%). /2 1976 - 8.8%. 1977 - 8.0% 1978 - 7.4% ANNEX 11 Table 2 MAPADI O5RAL DELEME0 T ROJE0 Staff Selaries (CPA! '000) 19,5 1976 1977 1974 1976-1978 Unit fost 1. (06 A. PVJ Eeaduarters ,eneral Ma.ger A1 L3-el 3,000 1 3,000 1 3,100 3,000 9,000 kgicoltural Adder EYptriate 19,100 1 19,10 1 19,100 1 19,100 57,300 Lrvers 400 2 800 2 300 2 800 2,1400 Seretar, 500 2 1,000 2 1,000 2 1,000 3,000 9at,hae. 300 2 600 2 600 2 600 1,800 T:tal P'U rendquarters 2h,500 24,500 t,500 73,500 Adrr.inistratlve and Finoanl Section Director A2 Level 1,500 1 1,500 1 1,500 1 J,500 4,50 A.e-uneats C Leval 00 1 S00 2 1,600 2 1,600 ,00uc Cleaic-l Pval D Laval 600 2 1.200 4 2.400 5 2.400 6000 Totl Adriitrntien and 1nanoial 3,500 5,500 5,500 11,5C0 Evaloati,na 'd FlanrOva 0nit0 Directr A2 Level 1,500 1 1,50D 1 1,500 1 1,500 h,500 Analysts 0 Lavel 000 i BOD 1 800 1 00 2Co Enoert-rs 300 5 1,500 5 1,500 5 1,500 4,5C0 Enunert,s-framers 10 300 3,000 300 3,000 30 3,000 9,0c0 Drivers 400 1 400 1 400 1 400 1,200 SzertVry 500 1 500 1 500 1 500 1.50 T)ol Evnluatiovnand Plnning Unit 7,700 7,700 '1,700 23,1C0 STechnicOl Oera tions .Scti on Directo A1 Leval 2,000 1 2,000 10 00 00 1 2,000 6,0C0 Driver ,00 1 100 1 400 1 4oc 1,20 Se-retry 500 1 500 1 500 1 500 1.500 T,tal Director, Offic, 2,900 2,900 2,900 8,700 F1 Rural &ineerin Chief &Epatriate 14,800 1 1L,800 1 14,500 1 14,800 44,400 As,tant Chief B Level 1,100 i 1,100 1 1,100 1 ,100 3,300 Rual Eagineer E.Patr.ate 10,100 0 10,100 0 10,100 - 20,200 AsEstant Rural Tgineer B Laval 1,10 1 1,100 1 1,100 1 1,100 3,300 Drivers 400 2 800 2 800 2 co 2, ,00 Sereon 500 1 500 1 500 1 5CO 1,500 htenl~in Werkers 400 - 3 1.200 6 2.4C0 3.603 T-al ural Engi-neering 20,400 29,600 70,70c 78,700 B2 General Agri-lture MARADI Chief A2 Level 1,500 1 1,500 1 1,500 0 1,500 4,50) Driver 400 1 400 1 400 1 400 1,200 seretary 500 1 50 1 500 1 500 1,500 Arrondlsseent chlEf B Leval 1,100 1 1,100 1 1,100 1 1,1003 3,300 Driver 500 1 400 1 200 1 400 1,20J ALC ~ojefe 0 Level 200 5 1,000 10 8,000 15 12,000 25,000 Depoty Chiefs 2// D Laval 100 5 3,500 10 7,000 15 1C,500 21,000 Deputy Chlles / D/ D Lavel 700 5 3,500 10 7,000 15 10,500 21,000 ~etslo Mnitors /_6/ D Level 700 5 3,500 10 7,000 15 10,500 21,000 Village etensin Wrk-ere / 200 95 19,000 190 32.000 265 57.,000 114,00 Total Geral Agriculture 37,400 73,900 10C4,'00 212,700 33 Seed 1ultiplication Scheme Chief Expatriate 10,100 1 10,100 1 10,100 1 10,100 3C,300 An1iteant OlLef 2 Lavel 1,100 1 1,100 1 1,100 1 1,1D 3,310 Driver 00 1 00 1 400 1 400 1,200 hotensin wore D Level 600 2 1,200 2 1,200 2 1,201 3,600 Speialized labor 300 9 2.400 8 2.410 8 2,o0c 7.200 Total Sead Multiplioation Schema 15,200 15,20C 15,200 ?5,600 BL Applied Research Ghief Opatriate 10,100 1 10,100 1 10,100 1 10,100 30,300 Assistant Chif B Lavel 1,100 1 1,10C 1 1,100 1 1,100 3,300 Driver 100 1 400 1 400 1 400 1.200 Total Aoplied Researeh 11,600 11,601 11,600 35,100 BS Erenon Staff Tr-niag Center Ollef B Laval 1,100 1 1,100 1 1,100 1 1,100 3,300 Asistant Chief C Level 800 1 800 1 B00 1 800 2,500 Driver 400 1 400 1 400 1 ,o0 1,200 Cleric-i Po 300 2 600 2 600 2 600 1,80 Cooks 300 2 600 2 600 2 600 1,80c erdene: 300 61 1,500 6 1,800 0 1,000 5,0c cksoal ybor 200 2 .00 2 00 2 400 1,20C Tt.l r-I nvr-g Cen-ter 5,700 5,700 5,700 17,10C 6 Blacksnith Trairdan iAt Chief 0 Level 200 1 0 1 800 1 800 2,100 >rter 2O 1 o00 1 602 1 00 1,200 Tctal Blackdth Treining 1unit 1.200 1.200 1.200 3.60c /5 alariee. include Travel allowance n f 25% far ivil .evant,, and 30% far .ocial åchargs, 2/ Ola eonths extesvo deputy chieft, 6 months finetior.all-Lteracy intratnors. Six nonthe extelian deputy chief, 6 mth aooperativ- anountat, Young fare, trainiCE Six moth, etenion workers, 6 onths fucti-onal literacy Instretors. Inelodes .ila1ge allovr~ne ef 1FAF 100,000 pr year and p.a individQal. ANNEX 11 Table 2 Page 2 1I1ER MARADI RURAL DEVELOPIMT PROJECT Staff Salaries 1/ (CFAF '0) 1975 1976 1977 1973 1976-1978 Unit Cost # # TTAL C. Cooperative Affairs Section TIARADI Director A2 Level 1,500 1 1,500 1 1,500 1 1,500 4,500 Accountant C Level 800 1 800 1 800 1 800 2,400 Driver 100 1 400 1 1400 1 400 1,200 Clerical Pool 1 Level 600 2 1,200 2 1,200 2 1,200 3,600 Storekeeper 0 Level 600 1 600 1 600 1 600 1,800 Watchman 300 2 600 2 600 2 600 1,800 Totnl 5,100 5,100 5,100 15,300 Arrondissement Chief B Level 1,100 4 1,00 4 4,400 4 4,400 13,200 Accountant C Level 800 4 3,200 4 3,200 4 3,200 9,800 Clerical Pool / 00 8 3,200 8 3,200 8 3,200 9,600 Storekeeper 400 4 1,600 4 1,600 4 1,600 4,500 Watchman 300 4 1,200 it 1,200 4 1,200 3,600 Driver )100 4 1,600 14 1600 4 1,600 4.800 t:otl 15,200 15,200 15,200 45,600 ALC Deputy Chief D Level 600 5 3,000 10 6,000 15 9,000 18,000 Total Cooperative Affairs 23,300 26,300 29,300 78,900 D. Community Development Section MARADI Director A2 Level 1,500 1 1,500 1 1,500 1 1,500 4,500 Training Advisor Expatriate 14,800 1 14,800 1 14,800 1 14,800 44,400 Assistant Director 3 Level 3/ 1,100 1 1,100 1 1,100 1 1,100 3,300 Driver 400 2 800 2 800 2 800 2,400 Secretary 500 1 500 1 500 1 500 1,500 Total 18,700 18,700 18,700 56,100 Arrondissement Chief B Level 1,100 14 4,h00 4 4,400 4 4,400 13,200 Driver iv 400 4 1,600 14 1.600 h4 1r600 14800 Total 6,000 6,000 6,000 18,000 ALC Chief C Level 2/ 900 5 4,500 10 9t000 15 13.500 27,000 Total Community Development 29,200 33,700 38,200 101,100 E. Road Sub-Project Chief at DPW A2 Level 1,500.:, , 1.500 1 1,500 1 1,500 14500 1/ Includes travel allowances, 25% base salary; social charges = 30%. 2/ Used by Arrondissement services. 3/For tanctional literacy. Shared with cooperative services. 5 Includes uileage allowance of CFAF 100,000 per year per individual. ANNEX 11 Table 3 NIGER MARADI RURAL DEVELOPMENT PROJECT Buildings and Civil Works (CFAF 000) 1975 Unit 1976 1977 197" Total 1976- Cost # # # 19T- A. Project Unit Headquarters Maradi Administrative Building 500 m2 @CFAF 70,000/m2 35,000 1 35,000 35,000 Classroom 4,900 1 4,900 4,900 Utilities a 15% 6,000 6000 Total Project Unit Headquarters 45.900 45,900 B. Technical Operations Agricultural Development B1 Rz!ral Engineering - Irrigatin Works Land Clearing 3DD 20 6,000 30 9,000 15,000 Well 1,101 20 22,000 30 33,000 55,000 Tank 628 20 13,000 30 19,400 32,400 Canal63 20 1,500 30 1,900 3,200 Drains 132 20 2,600 30 4,000 6,600 Irrigation Structures 114 20 2,300 30 3,400 5,T00 Fence 150 20 3,000 30 4,500 7,500 Flood Protection 1,050 20 21,000 30 51,500 Total Irrigation Schemes 6,000 74,200 97,700 177,900 B2 General Agriculture Arrondissement - Administrative building 70 m2 OCFAF 50,000/m2 3,500 4 14,000 14,000 Utilities 10% 2.100 2:100 Total Rain-fed Cultivation 16,100 16,100 BS Training Center Store 100 m2 @CFAF 15,000/m2 1,500 1 1,500 1,500 Dormitory 8 rooms @4 persons 2,000 2 4,000 4,000 Offices 2,500 1 2,500 2,500 Stable 40 oxen 2,500 1 2,500 2,500 Fence 1 3,000 3,000 Classroom 2,000 2 4,000 4,000 Utilities @15% 2,200 2,200 Total Training Center 19,700 19,700 D. Community Development ALC Young Farmers Training - Dormitories 60 m2 OCFAF 15,000/m2 900 5 4,500 5 4,500 5 4,500 13,500 - Classrooms 40 m2 @CFAF 15,000/m2 600 5 3,000 5 3,000 5 3,000 9,000 - Utilities@ 15% 1,100 1.100 1.100 _ 300 Total Training Department 8,600 8,600 o,600 25,800 E. Road Sub-Project /I Equipment Rental 120,000 120,000 Equipment Operating Costs 55,000 5-000 Total Road Sub-Project 173,000 173,000 F. Forestry Sub-Project Seedlings for I ha 20 150 3,000 150 3,000 200 4,000 10,000 Casual Labor per I ha 30 150 4,500 150 4,500 200 6,000 15,000 Fence CFAF 100/m x 200 20 150 3,000 150 3,000 200 4,000 10,000 Insecticides 4 150 600 150 600 200 800 2,000 Total Forestry Sub-Project 11,100 11,100 14,800 37,000 /1 Construction by Force Account by PWD. 0000 0 00 0 e00 oo OOooCOOcOOoOoOO O 0 0 00 00000 - 00000 0 0O O o o o o o o o o o o o 0 o o 0 0 0 0 0 0 - ~oo - ooo~. o ~ coc o 00 o -- --o 0 00~ 0000 0 0 0 L0 0 000 0 0L 00 - 0-00 t0 L 00 - - o,-c 0 0 D 0 e \ 0000 00 0 000 0000 00 0 0 00 0 - 000 0 0 000-0 0 - 0 --0 - 0 0l 00 0) 0.C ··C 0 0 0 0 0 0-10 0 0 0 0 0 1 00 . -1(0 y - 00u 0 00o0 0 0 0 0 0 00 0 0 00C00 0 ( -1 L 0  0 .· >g o O T o g , 1 0Q 00-000000 p ( 0 (00yey 00 0 00 00 0 00 m 0 a - 00m o - 0 -000 000-0 000000 00 010 0 O -o 00 (000. 0 0 0 0 0 0 0 0 0 0 0 0 (00 00 - [ 0 -(0o.0"000_,' O 00 0 00(0000(0000 0( 00 0- 0 00 0- 0 (0- 000 0 0 00<0.00 - 0 0 l gao 0( »,og ~000 (0 1 000 00-O DO(0oOO (0(0000( 00.--0-000 1000700 n. 0··-'o0 .0 i 00 1 0(00000000000 00 O000 00~ 0000 000< (0 0 0 (00 0 O C 0 - 0 ANNEX 11 Table 5 NIGER MARADI RURAL DEVELOPMENT PROJECT Vehicles (CFAP '000) 1975 Unit 1976 1977 1978 Total 1976- Cost # # # 197> A. PK) Headquarters PA U Manager Pick-up 1,800 1 1,800 1.800 Agricultural Advisor Pick-up 1,800 1 1,800 1,800 Evaluation and Planning Director Pick-up 1,800 1 1,800 1,800 Total PMU Headquarters 5,400 5,400 B. Technical operations Section Director 4-Wheel Drive 2,700 1 2,700 2,700 B, Rural Engineering 1 CiefE Pick-up 1,800 1 1,800 1,800 Rural Engineer Pick-up 1,800 1 1,800 1,800 Total Rural Engineering ,600 5,6 B, General Agriculture Chief 4-Wheel Drive 2,700 1 2,700 2,700 Arroodissement Chief 4-Wheel Drive 2,700 4 10,800 10,800 ALC - Chief Trail Bikes 200 5 1,000 5 1,000 5 1,000 5,000 - Deputy Chief Trail Bikes 200 10 2,000 10 2,000 10 2,000 6,000 Extension Monitors Trail Bikes 200 2 400 2 400 2 400 1,200 Total General Agriculture 16,900 3,400 3,400 23,700 B CSe Mutiplication Scheme Pick-up 1,800 1 1,800 1,800 B34 Applied Research2,0 Chief 4-Wheel Drive 2,700 1 2,700 1,700 BS Extension Staff Training Center Pick-up 1,800 1 1,800 1,800 I Chief Piku ,0 ,0 ,000 Truck Truck 2.5 ton 3,000 1 o000 3 Total Training Center 4,800 4,800 B Blacksmith TraininP 1,800 chief Pick-up 1,800 1 1,800 1,800 C. Cooperative Affairsrs Director Pick-up 1,800 1 1,8001,00 Arrondi5sement Chief ton 8,000 5 1 0 4 025000 Total Cooperative Affairs 53,80 33,800 T. Community Development Director Pick-up 1,800 1 1,800 2,800 Training Advisor Pick-up 1,800 1 1,800 1,Bo0 Arrondissement Chief 4-Wheel Drive 2,700 4 10,800 10,800 ACCifTrail Pikes 200 5 1,000 5 1,000 5 1,000 3,000 Total Commounity Development 11,400 1,000 1001,0 G. Health Sub-Project 4-he rv 70 1 2702,700 Halth Services4-heDrv 2,0 1 270 Woman Commssnity Development Pick-up 1,800 1 1,800 18B00 Total Health Sub-Project 4,500 4,500 H. Livestock Sub-Project 5,400 Animal Health Programs Pick-up 1,800 3 5,400 5,00 Truck 2.8 ton 3,000 2 6,oou Total Livestock Sub-Project 11,400 1,0 Table 6 NI Pag 1 MARADI RURAL DE9LOPMENT PROJECT Operating Expense~ (CFAF '000) 1975 Unit 1976 1977 197, Total 197t- Cost # # # 1976 A. FMU Hdadquarters vebicles -runnIng cots ,600 2 5,200 2 2,200 2 3,200 9 00 -sparta @ 54 cf cost 500 300 500 900 Utilities (house) 200 2 400 2 400 2 400 1.200 Office Supplies (e-ployee) 10 272 2,700 396 4,000 522 5,200 11.900 Building maintenae @ 5.55 of cost 500 1.00 3.400 iscclla neous txpen 200 200 302 700 Total PMU Hedquartt t00 w,900 11.000 23 700 Al Evautin ad Planniog lit Director Vehicle -running tost 1,000 1 1,000 1 1,000 1 1,000 3.000 -opares @ 5 f of c1 100 100 120 300 Office Supplit 500 500 500 1,500 Photographic Ex-ens 500 - - 500 Plate Rental 1,300 1,300 P optio f Statisial docunt 3.000 3,000 2,000 7.000 fistllaneouc 200 100 10 400 Total Evaluaton and Planning Uoit 6,600 3.700 3,700 14.000 o.lhntcl operatioaa seton Director oehicle - nrning cost 1,6o0 1 1,600 1 1,600 1 1,00 4,-00 -spares@ 5 of 005t 100 100 100 0 Total Director s Office 1,-00 1,700 1,00 5.100 BL furao Enginetrng Vhiles - running cost 1 600 2 5,200 2 300 2 3200 9,600 - .pes@ 5S of cos ?00 200 200 600 office Supplies (eployee) 10 7 100 0 100 9 100 500 Miscellaneous Expenset 100 100 __ __100 __ _ 0_ __300 Total fo Enginering ,00 3,600 5.600 10,0D0 B, etal Agr~~Ilture Vehiclea- runoo tot 1,600 5 2,000 5 t,000 3 sol0 24,000 -sparts 0 50 of c-ot Po 1,000 1,30n ,000 Arroodissement Buildings - utilities 50 4 200 4 200 4 200 (00 - tainteance @ 5.5 of cost 500 500 500 1.500 Otfie Supplies 10 150 1,300 24- 3,300 360 3,600 7,400 Miscellaeorus Expenss 30D0 300 '00 900 Total General Agr-culture 11,100 12,500 13,09 37,400 9, Seed Multipliction Schem Vehicles r-rnning tost 1.500 1 o,600 1 1,600 1 100 4.-00 -spae@ 5 of c t 100 100 100 300 O(f5,e S,pplies (eaployey) 10 13 100 13 100 15 100 300 MiIcllaneous Epeases 100 100 100 500 Total Seed tultiplication Schea 1,900 1,900 1,900 5,700 B4 Applied Researc Vehiclet s -uing 0ost 1,600 1 1,600 1 0,600 1 1,600 4< 00 - sp.ae @ 5 f cot 100 100 t0 300 Total ApplIed Reaserob 1,700 1.700 1.,00 ¯,100 B, Exttension Staff Troanig Ceotet vehill nonig ot 1,, 00 2 3,300 3 5,200 2 3.200 9,600 - spares @ 5% of tast 200 300 300 600 Utilities 100 10 1,C00 10 1.000 10 1.000 ',000 Bu-lding Maintenance @ .5 of cost 700 -00 1,400 Office Supplies (taitae) 10 100 1,000 100 1,000 100 1,000 ',000 Trainee Subistence -tr ) 9 otts/year cFAr 000 'oth 73 100 2200 100 f,200 100 7,200 11,600 Mi-cllaneous Expatses 300 300 502 920 Total Taining Centr 12,900 13,00 13,00 60,100 0, Block-ith T-raiing Vehie - -ooig cost 1,J0 1 1,600 1 o1.6D 1 1,300 4,-00 -apap t 59 f cost 100 100 100 300 consumtale 500 500 000 1,500 Traine Sobsistene 30 days 0CFAF 300day '1 20 400 40 D00 60 1,300 3,500 Mi-llaneous Expen s 100 100 100 00 Total Blaksmith Train-g 2.700 5.100 3.600 9 400 NIGER MARADI RURAL DEVELOPMENT PROJECT Operating Expenses (CFAF '000) 1975 Unit 1976 1977 1978 Total 1976- Cost # _ # # 1978 C. Cooperative Affairs Vehicles - runningcosts 1,600 1 1,600 1 1,600 1 1,600 4,800 spares 5% of cost 100 100 100 500 Trucks - running costs 2,100 4 8,400 4 8,400 4 ?,400 25,200 - spares @ 5% of cost 1,600 1,600 1,600 4,800 ALC Store Maintenance @3.5% of cost 70 6 400 13 900 15 1,100 2,400 Office Supplies (employee) 10 54 500 59 600 64 600 1,700 Miscellaneous Expenses 500 300 300 900 Total Cooperative Affairs 12,900 13,500 13,700 40,100 D. Community Development Vehicles - running costs 1,600 6 9,600 6 9,600 6 9,600 28,800 - spares @ 5% of cost 700 700 700 2,100 Total 10,300 10,300 10,300 30,900 Community Training Orientation Sessions (participants) 6 days/year @CFAF 300/day 1.8 2,500 4,500 5,000 9,000 7,500 13,500 27,000 Functional Literacy (participants) 2.0 2,850 5,700 5,700 11,400 8,550 17,100 34,200 Technical Training (participants) Farmer Leaders 6 days/year @CFAF 500/day 1.8 1,425 2,600 2,850 5,100 4,275 7,700 15,400 Village Mutual Principals 6 days/year @ CFAF 500/day 1.8 855 1,500 1,710 3,100 2,565 4,600 9,200 Cooperative Principals 6 days/year @CFAF 300/day 1.8 300 500 600 1,100 900 1.600 5,200 Total Community Training 14,800 29,700 44,500 89,000 Project Staff Training /1 1,000 1,000 1,000 3,000 Young Farmers' Training (participants) 6 months/year a CFAF 6000/month 36 100 3,600 200 7,200 300 10,800 21,600 Office Supplies 10 23 200 28 300 33 300 800 Miscellaneous Expenses 700 1,200 1700 3,600 Total Community Development 30, 00 49,700 68,600 148,900 G. Health Sub-Project Vehicles - running costs 1,600 2 3,200 2 3,200 2 3,200 9,600 - spares @ 5% of cost 200 200 200 600 Training of "secouristes" 3.3 45 100 45 100 200 Midwives 2.8 57 200 57 200 400 Women Animators 2.8 86 200 86 200 400 Recycling "secouristes" 2.8 79 200 79 200 45 100 500 Midwives 2.3 83 200 83 200 57 100 500 Women Animators 2.3 44 100 44 100 86 200 400 Total Health Sub-Project 3,900 4,400 4,300 12,600 H. Livestock Sub-Project H Animal Health Programs 1 Vehicles - running costs 1,600 5 8,000 5 8,000 5 8,000 24,000 - spares @ 5% of cost 600 600 600 1,800 Ice Machines - 5 months @ CFAF 12,000/month 60 5 300 5 300 5 300 900 Refrigerators - 12 months @CFAF 3,000/month 36 9 300 9 300 9 300 900 Freezers - 12 months @ CFAF 3,000/month 36 8 300 8 300 8 300 900 Miscellaneous Expenses 200 200 200 600 Total Livestock Sub-Project 9,700 9,700 9,700 29,100 /1 Staff above extension workers. ANNEX 11 Table Y NIGER MARADI RURAL DEVELOPMENT PROJECT Farm Inputs, Seeds, Equipment Revolving Funds (CFAF '000) 1975 Unit 1976 1977 197P Total 1976- Cost # - # - # 1978 I. Inputs Yearly Inputs Requirements Irrigation Schemes Fertilizers (tons) Superphosphate 95 5.0 500 1. 600 900 Sulfate NH4 120 7.2 900 16.2 1,900 2,800 Urea 100 5.0 500 11.5 1,100 1,600 Compound 105 8.0 800 18.0 1,900 2700 Total Fertilizers 2,500 5,500 8,000 Ensecticides (000 liters) 1,325 1:6 2,100 5.5 4,400 6,500 Total Irrigation Schemes 4,600 9,900 14,500 General Agriculture Seed Dressings (tons) 1,750 12.6 22,100 14.8 25,900 16.9 29,600 77,600 Fertilizers Superphosphate 95 118 11,200 429 40,800 876 83,200 158,200 Sulphate NH4 120 1 100 100 Irea 100 1 100 100 Total Fertilizers 11,200 40,800 85,400 155,400 Insecticides (000 liters) 1,525 4.2 5,600 16.6 22,000 20.8 27,600 55,200 Bags (000) 200 b.9 1,200 23.1t 4,700 29.6 900 11,800 Total General Agriculture 40,100 95,400 l4e500 280,000 Incremental Input Requirements Send Dressings 22,100 3,800 3,700 29,600 Fertilizers 11,200 52,100 45,600 P8,900 Insecticides 5,600 18,500 7,900 52,000 Bags 1,200 7.500 1,200 5.900 Total Incremental Input Requirements 40,100 07,900 08,400 11,400 II. Seeds Yearly Seeds Requirements Groundnuts Sed purchased from research station (tons) 100 3.5 400 5.5 400 3.5 400 1,200 Seed purchased fron , end M multiplicators (tons) 55 64 3,500 104 5,700 156 8,600 17,800 Cost of Ml and M2 mulEipl icaio (tons) 17 64 1,100 104 1,800 156 2,700 5,600 Seed purchased from M3 multiplicators (tons) 55 250 15,800 410 22,600 666 56,600 73,000 Cost of M3 multiplication (tons) b 250 1,300 410 200 666 3.300 6,700 Total Groundnuts Seeds Requirements 20,100 52,600 51,600 104,300 Cowpeas Seed purchased from research station (tone) 60 0.3 - 0.6 - 0.F - - Seed purchased from M1 nultiplicators (tons) 40 8 300 14 600 26 1,000 1,900 Cost of M1 multiplication (tons) 15 8 100 14 200 26 400 Total Cowpeas Seeds Requirenents 400 800 1,400 2,600 Incremental Seeds Re9tqu ents Grndnut nts 20,100 12,bOO 19,000 51,600 Cowpeas 400 400 600 1,400 Total Incremental Seeds R,quirements 20,500 12.900 19.600 b5,000 III. Farm Equipment Ox-drawn Equipment Units 74 2K5 18,900 1,900 Sprayers - Itrigation Schemes 12.' 10 100 400 500 - Cowpeas 12. 44 600 92 2.200 17o 2,500 4,100 Total Farm Equipment 600 1,300 21,630 25,500 IV. Blacksmith Kits 70 00 1,400 20 1.400 20 1,400 4,?00 V. Livestock Sub-Project - Animal Health Program Vaccine 5.00 5.500 5 00 1,900 Medicines and Minerals 1,00 '7500 7,700 5,900 Total Yearly Requirements 6.600 7600 7,600 71,000 Total Incremental Requirements 6.oo 1,000 - 7600 ANNEX 1.1 Table W NIGER MARADI RURAL DEVELMMENT PfOJECT Coaulting Servicen. Studies, Audit, Scholar~hips 1975 Total Unit Coat # 1976 _#_ 1977 _ 1978 1976-1978 I. Tchnical Assintance Ac 1,400 6 8,400 4 5,600 2 2,800 16,800 Evaluation and planning 1,400 6 8,40 2 2.800 3 4.200 15 Total 16, o1,400 7,000 32,00 llaral Engineering Groundwaler specialist 2,000 2 4,000 2 4.000 8,000 Total Teobaisal AsMtance 20,800 12,400 7,000 40,200 II. Now Pr-ts SI - Agricultural 2,060 3.5 7,200 7,200 Rellm of Segreh's project 1,450 10,5 15,200 15,200 Nydrologleal 1,40 8.5 12,200 12,200 Gophy~cal 1,420 6.5 9,200 9,200 Vndergroeud water use 1,340 22.0 29,400 29,400 Pedological adv1ce 1,800 1.0 1,800 1800 Total 75,000 75,000 Survey - Topograpy 11,500 11,500 GOpff~on 2,000 2,000 Teet boreholes 45,000 45,000 38 1e analyses 1,500 1.500 Total 60,000 60,000 Editing reports and travel 3,500 3,500 Total Irrigation Project 138,500 138,500 Agricultural Project 1,00 12 16,800 12 16,500 33,600 Livustock Project 1,400 10 14.000 - 14000 Total New Projeots 169,300 16,800 186,100 III. kAdit of Project Accountu 2,700 1,300 1,300 5,300 TV. scholarghipg 5,0o 5,000 5,000 15,000 IÆ?ABT 2JU.AL :TETLOPK.3T PRiOJ'? TDA TM-sbursemerit Schedule IDA F'iscal Year and Quarter ?orulative Pisbursement at end of Quart3r (US 'j0û) 1976/197? lsb Quarter 900 2nd Quarter 1,700 3rd Qu.varter 2,500 4,th Quarter 3,300 1977/1978 ist Quarter 4,400 2nd Quarter 5,400 3rd Quarter .6,400 hth Quarter 7,500 1978/1979 lst Quarter 8,200 2nd Quarter 9,100 3rd Quarter 10,000 fth Quarter 10,700 ANNEX 12 Page 1 NIGER MARADI RURAL DEVELOPMENT PROJECT Terms of Reference Project Management Unit General Manager 1. The Man. The General Manager of the Project Management Unit is a Nigerien, and fluent in Hausa. 2. Qualifications. His education should include graduate work in any of the following disciplines: agriculture, business or government administra- tion. His experience should include at least 5 years in a senior position within the Niger Government administration, including if possible a stay in Maradi District. His interests should cover the whole spectrum of rural devel- opment and he should have a certain aptitude for leadership and communication. 3. Responsibility. He will be responsible for carrying out implement- ation of the project both directly with staff posted to PHU and reporting to him, and indirectly through contracts established with independent Government Services: Travaux Publics, Eaux et Forets, Elevage et Sante, and to coordi- nate project activities with those of Government and local agencies. His duties will include: (a) preparation of yearly operating plans for approval by the Conseil National du Developpement and the Prefet; (b) preparation of monthly progress reports; (c) coordination of all project activities; (d) monitoring payment of contractors and suppliers; (e) establishing contracts with Government services carrying out part of project activities: (f) recruiting all key project staff; and (g) coordinating project activities with those carried out by other Departmental services. 4. He will report to the Conseil National du Developpement through the Prefet du Departement de Maradi. ANNEX 12 Page 2 5. He will be at the Al level in the Government Civil Service salary scale - he resides in Maradi and his tenure is for three years. Director of Technical Operations 1. The Man. The Director of Technical Operations is a Nigerien, fluent in Hausa. 2. Qualifications. His experience in the exercise of his functions is more important than a formal academic background. His experience should include at least 5 years in the management of an agricultural project, prefer- ably in rainfed development. He should be a graduate in Agriculture. 3. Responsibility. He will be responsible for all technical operations including the development of rainfed agriculture in 15 ALC's of the Departement and the construction of a number of irrigation schemes totalling 500 ha. His duties will specifically include: (a) preparation in association with the Agricultural Research institutes of agricultural extension programs, and super- vision of the execution of these extension programs; (b) supervision of the project seed multiplication and applied research programs; (c) supervision of the village level extension workers training at Maradi CFJA; and (d) administration of the irrigation fund and execution of a number of small scale irrigation schemes. 4. He will report to the PMU General Manager and be at Grade A in the Government Civil Service Salary Scale. Director of Administration 1. The Man. The Director of Administration is a Nigerien, fluent in Hausa. 2. Qualifications. The Administrative Director is a qualified accoun- tant with additional training in personnel and business management. He should have at least 5 years experience in a senior position in a large public cor- poration. If possible he should have a knowledge of credit procedures and should have worked with farmers and cooperatives. ANNEX 12 Page 3 3. His Main Responsibility would be the control of all project finances on behalf of the General Manager. His duties would include: (a) establishing a chart of accounts and keeping acounting records for the Project Management Unit; (b) preparing budgets, cash flows, estimates of expenditures; (c) preparing disbursement applications to IDA, and Government; (d) internal auditing; (e) establishing an efficient system of recording agricultural credit transactions; and (f) dealing with personnel problems. 4. He will report to the PMU General Manager and be at Grade A2 in the Government Civil Service Salary Scale. Director of Cooperative Affairs 1. The Man. The Director of Cooperative Affairs is a Nigerien, fluent in Hausa. 2. Qualifications. The Cooperative Affairs Director is a graduate in Cooperative Management from IPDR Douala, or equivalent. He should have at least 5 years experience in a senior post with UNCC. 3. Responsibilities. His main responsibility would be the assistance to the 15 ALC's and 75 Cooperatives in the project area where rainfed cultiva- tion would be developed. His duties would include: (a) supervision of all cooperative staff posted to ALC's and Cooperatives; (b) arrangement for inputs and credit delivery, and (c) auditing of ALC's and Cooperatives' accounts. 4. He will report to the PMU General Manager and be at Grade Al in the Government Civil Service Salary Scale. ANNEX 12 Page 4 Director of Community Development 1. The Man. The Director of Community Development is a Nigerien, fluent in Hausa. 2. Qualifications. He has done graduate work in social sciences and agriculture, and has taught for at least five years at the graduate, or college level in Niger. He should have an interest in rural education and particularly in functional literacy programs. 3. Responsibility. He will be responsible for all general training carried out by the project. (a) He will not be responsible for the technical training of young farmers and for the extension workers' train- ing center, which are technical in nature and will be carried out by the Technical Operations Section, but he will assist the Director of the Technical Operations Section in the elaboration of the programs and in evaluating the results obtained. (b) He will be responsible for all training programs taken over by the project: training of farmer leaders, of Groupements Mutuels Villageois (GMV) officials, functional literacy training, training and orientation sessions of cooperative officials. (c) He will be responsible for the training of project staff. He will be responsible for the courses dispensed to newly participating staff, lasting two to three months and for the refresher courses given to them for one month every year thereafter. (d) He will be responsible for monitoring the training of selected staff abroad. (e) He will assist the General Manager and section directors in staff recruitment and in staff selection for further training. 4. He will report to the General Manager and be at Grade A in the Government Civil Service Salary Scale. ANNEX 12 Page 5 Agricultural Advisor 1. The Man. The Agricultural Advisor to the ODR General Manager is an expatriate, fluent in French. 2. Qualifica.:ions. He should have done graduate work in general agriculture, agriculture economics, or agriculture research. His experience should include at least ten years in a senior management position in an agri- cultural project, if possible in the Sahelian countries. He should be familiar with dry-land and irrigation cultivations and with most of the following crops: cereals, groundnuts, cowpeas, cotton and sorghum. His interests should cover the whole spectrum of rural development and he should communicate effectively. 3. Responsibility. His responsibility will be to advise the General Manager on all aspects of the project, particularly on the agricultural and irrigation project components. He will assist in the preparation of the project's yearly operating plans, in the preparation of the contracts to be passed between PMU and the other Government agencies carrying out some sub- projects under contract to the PMU. 4. He will report to the General Manager. 5. He is recruited by the Western Africa Agricultural Project Management Unit and employed under a contract with IDA. Training Adviser 1. The Man. The Training Adviser to the Director of the Community Development Section is an expatriate, fluent in French. 2. Qualifications. He should have done graduate work in teaching or agricultural education. His experience should include at least ten years in a senior position in an agriculturally related organization, if possible in the Sahelian countries. He should be familiar with farmers' training, functional literacy and general agricultural training. 3. Responsibility. His responsibility will be to advise the Director of the Community Development Section on all aspects of the training programs conducted by the Community Development Section of PMU, and also the Director of Technical Operations for training of extension workers and young farmers. He will particularly assist in conducting seminars for complement training of project senior staff. 4. He will report to the Director of the Community Development Section. 5. He is recruited by the Western Africa Agricultural Project Management Unit and employed under contract with IDA. ANNEX 12 Page 6 Rural Engineer 1. The Man. The Rural Engineering Chief is an expatriate, fluent in French. 2. Qualifications. He should have a civil engineering degree and should have about ten years of experience in planning and supervising construc- tion of wells and small-scale irrigation works in developing countries. He should also know how to work with farmers cooperatives who would provide the casual labor for construction of the schemes and who would finally operate them. 3. Responsibility. He will be responsible for selection of well sites and for supervision of the construction of the irrigation schemes. He will also be responsible for the supervision and execution of the Flood Control and Roads Sub-project. 4. He will report to the Chief of the Project Rural Engineering sub-section. 5. He is recruited by the Western Africa Agricultural Projects Management Unit and employed under contract with Government by the project. Seed Multiplication Expert 1. The Man. The Seed Multiplication expert is an expatriate, fluent in French. 2. Qualifications. He should have a college degree in agriculture and agriculture botany. His experience should include at least five years in commercial large scale seed production preferably with groundnuts and millet. 3. Responsibility. He will be responsible for the project seed multiplication program which includes multiplication and distribution of improved cowpeas, groundnuts, and millet seeds. He will control the purchase of registered seeds from the research stations and supervise personally multiplications M1 and M2 of groundnut seeds by farmer leaders under contract to the project. He will supervise indirectly multiplication M3 of groundnut seeds by selected cooperatives in the project area. These cooperatives will be under the direct supervision of the extension staff of the Technical Operations Section. He will be responsible for coordination of the project seed multiplication programs, and national multiplication schemes. ANNEX 12 Page 7 4. He will report to the Director of the Technical Operations Section. 5. He is recruited by the Western Africa Agricultural Projects Manage- ment Unit and employed under contract with Government. Applied Research Expert 1. The Man. The Applied Research expert is an expatriate, fluent in French. 2. Qualifications. He should have a college degree in agriculture. His experience should include at least 5 years in an agricultural research station specializing in research on groundnuts and cereals, and also five years as an extension officer in a rainfed agricultural project in a country of similar ecological conditions. 3. Responsibility. He will be responsible for the large scale dissemination of the agricultural work done by the research stations, and for conducting farm trials with the assistance of the extension officers. He will be responsible for coordination of the applied research component of the project with the various research programs carried out nationally. He will also cooperate with the evaluation unit in determining farmers response to the introduction of improved agricultural techniques. 4. He will report to the Director of the Technical Operations Section. 5. He is recruited by the Western Africa Agricultural Projects Management Unit and employed under contract with Government.  NIGER MARADI RURAL DEVELOPMENT PROJECT Organization Chart Conseil National du Développement Préfet Département de Maradi Directeur du Projet Opérations Affaires Développement Techniques Coopératives Communautaire Chef du Bureau d'Arrondissement Chef du Bureau d'ALC Villages World Bank-15209  NIGER MARADI RURAL DEVELOPMENT PROJECT Project Impact on Government Cash Flow (CFAF '000) Average 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986-1995 I. BENEFITS Project Induced general taxes 1/ 95,100 114,800 87,000 30,200 30,200 30,200 30,200 30,200 30,200 30,200 30,200 Livestock taxes 2/ - 800 2,300 4,000 5,100 6,300 7,600 8,700 8,700 8,700 8,700 Irrigation schemes Capital recovery 3/ - 8,800 13,200 13,200 13,200 13,200 13,200 13,200 13,200 13,200 13,200 Total Benefits 95,100 124,400 102,500 47,400 48,500 49,700 51,000 52,100 52,100 52,100 52,100 IT. COSTS Government Project Contribution 180,200 219,60 163,300 - - - - - - - - Maintenance After Project - - - 335,400 335,400 335,400 335,400 335,400 - - Inputs subsidy 20,100 49,000 78,200 78,200 78,200 78,200 78,200 78,200 78,200 78,200 78,200 IDA Credit - Service charge 6,500 14,300 20,300 20,300 20,300 20,300 20,300 20,300 20,3J0 19,300 19,300 - Amortization - - - - - - - - - - 25,300 Total Costs 206,800 282,900 261,800 433.900 433,900 433,900 433,900 433 ,00 98,500 97,500 124,600 III. NET CASH FLOW (111,700) (158,500) (159,300) (386,500) (385,400) (384,200) (382,900) (381,800) (6,400) (45,400) (72,500) Total unshelled groundnuts production with Project (tons) 13,500 26,400 38,400 42,300 46,500 49,300 50,600 50,600 50,600 50,600 50,600 Quasi-tax per ton of unshelled ground- 13,200 8,900 5,700 9,100 8,300 7,800 7,500 7,500 7,500 7,500 8,000 nuts for Government to break-even (CFAF) 1/ 9% of Project Costs and recurring expenses. 2/ CFAF 100 per head of cattle. 3/ CFAF 44,000/ha. NIGER MARADI RURAL DEVELOPMENT PROJECT Economic Prices (Per Ton) 1975 Terms Groundnuts (Shelled) Cotton Lint Exported Exported Exported Sale to As Nut As Oil Nitex CIF Europe 1/ CFAF 92,200 Standard CIF Europe 292,700 - Millet Price CFAF 35,000 Sale to Nitex V 165,100 Cowpeas 60,000 Sale to Oil Processor 2/ CFAF 60,000 Discount from Standard 7,000 Sorghum 28,000 Tomatoes 8,000 COSTS Onions 11,000 Insurance and losses 1,000 100 COSTS Port Charges Europe 1.000 Cotonou to CIF Europe 23,200 Meat - Cull Cows 17,500/head Freight Cotonou - Europe Transport Niger - Cotonou 35,500 (250 kg @ CFAF 70/kg) Transport Niger - FOB C6tonou 13,500 Ginnery expenses 30,900 30,900 Steers 27,200/head SONARA overhead expenses 11,250 7,650 Local collection cost 10,500 10,500 (340 kg @ CFAF 80/kg) Local collection cost 1,000 1,500 Woodfuel 700/Stlre Packing 1,500 1.500 Commisslu Licensed Buyers 3,000 3,000 Total Costs 38,250 13,750 Total Costs and Discount 107,100 41,400 Net Economic Price Farm-gate 53,950 46,250 185,600 123,700 33% of Total 67% of Total 50% of Total 50% of Total Ratio Shelled to Unshelled = 68% Ratio Lint to Seed = 38% 1/ US$ 1 = CFAF 225. 2/ 65% of World price. 3/ At price to cover CFDT expenses. NIGER MARADI RURAL DEVELOPMENT PROJECT Economic Price Calculations Shelled Groundnuts 2/ Bank's C1gD Exports as Nuts Exported as Oil Average Exports as Nuts Projections --------Projections------- Projections at 1975 Projections at 1975 and as Oil $ / M.T. $ / K.T. CFAF/M.T. Prices Farm Gate Prices Farm Gate 1975 Prices Farm Gate 1973 Prices 1975 Prices CFAF/MT CFAF/MT CFAF/MT 1976 340 459 103,300 65,100 57,400 60,000 1977 309 417 93,800 55,600 47,900 50,400 1978 277 374 84,200 46,000 38,300 40,900 1979 256 345 77,600 39,400 31,700 34,200 1980 242 326 73,400 35,200 27,500 30,000 1981 256 345 77,600 39,400 31,700 34,200 1982 271 366 82,400 44,200 36,500 39,100 1983 287 387 87,100 48,900 41,200 43,700 1984 304 410 92,300 54,100 46,400 49,000 1985 319 430 96,800 58,600 50,900 53,400 1/ US$ 1 = CFAF 225. 2/ 33% as nuts, 67% as oil. NIGER MARADI RURAL DEVELOPMENT PROJECT Economic Price Calculations Cotton Lint Lint Seed Cotton Bank's CEPD Exported as Lint Sold to Nitex Average Exported as Lint Projections Projections Projections at 1975 Prices Projections at 1975 Prices and Sold to Nitex US U/b US /1b CFAF- /MT Farm Gate Farm Gate 1973 Prices -----1975 Prices---- 1976 44 59 292,700 70,500 47,000 58,800 1977 44 59 292,700 70,500 47,000 58,800 1978 - 1985 43 58 287,700 68,600 47,000 57,800 1/ US$ 1 = CFAF 225. NIGER MARADI RURAL DEVELOPMENT PROJECT Economic Rate of Return Calculations Rainfed Development I/ ALC's Without Roads Component 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 I. BENEFITS Incremental Production (tons) Shelled groundnuts 1,000 2,100 3,800 5,600 7,800 9,200 9,900 9,900 9,900 9,900 Millet - 1,200 3,200 6,600 10,300 13,200 15,100 15,100 15,100 15,100 Cowpeas 200 600 600 600 600 600 600 600 600 600 Price (CFAF/Ton) Groundnuts 60,000 50,400 40,900 34,200 30,000 34,200 39,100 43,700 49,000 53,400 Millet 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 Cowpeas 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 Incremental Value of Production (CFAF '000) Groundnuts 60,000 105,800 155,400 191,500 234,000 314,600 387,100 432,600 485,100 528,700 Millet - 42,000 112,000 231,000 360,500 462,000 528,500 528,500 528,500 528,500 Cowpeas 12,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 Total Incremental Value 72,000 183,800 303,400 458.500 630.500 812,600 951.600 997,100 1,049,600 1_093 200 2/ II. COSTS ( CFAF '000) - PMU Headquarters 80,400 37,200 36,800 36,800 36,800 36,800 36,800 36,800 36,800 36,800 Evaluation and Planning 21,200 12,000 13,200 13,200 13,200 13,200 13,200 13,200 13,200 13,200 Technical Operations Director 6,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 General Agriculture 70,400 72,800 102,000 102,000 102,000 102,000 102,000 102,000 102,000 102,000 Seed Multiplication 16,000 14,400 14,400 14,400 14,400 14,400 14,400 14,400 14,400 14,400 Applied Research 13,600 12,000 12,800 12,800 12,800 12,800 12,800 12,800 12,800 12,800 Extension Staff Training 52,000 16,400 16,400 16,400 16,400 16,400 16,400 16,400 16,400 16,400 Blacksmith Training 6,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Cooperative Affairs 59,200 33,600 36,400 36,400 36,400 36,400 36,400 36,400 36,400 36,400 Community Development 71,600 79,200 99,200 99,200 99,200 99,200 99,200 99,200 99,200 99,200 Agricultural Credit - Input and Seeds 50,800 110,400 176,000 176,000 176,000 176,000 176,000 176,000 176,000 176,000 Farm equipment 1,600 2,400 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 Total Costs 448,800 398,400 534,400 534,400 534,400 534,400 534,400 534,400 534,400 534,400 Less Taxes (9% of Costs) 40,400 39,500 48,100 48,100 48,100 48,100 48,100 48,100 48,100 48,100 Total Costs Net of Taxes 408,400 358,900 486,300 486,300 486,300 486,300 486,300 486,300 486,300 486,300 1/ Chadakori, Aguie, Koona, Gabaouri, Dodori, Dan Mero, Sabon Mache, Atchidakofoto, Rafinwada, Kanan Bakatche, Mayahi, Madarounfa. 2/ 80% of all rainfed development project costs. ' 1 A11EX 15 NTGER Table 2 MARADI RL"AL. DEVELOPMENT PROJ 7T Economic Rate of Return Calculation- Rainfed Developent ALC's With Roads component/ 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 I. BENEFITS Tn-cremental production (tens) rhelled Cround.ts - Pr jet ALC's /1 - 700 1,400 2,200 2,900 3,400 3,600 3,600 3,600 3,600 Total Shalled Groundnuts Production - 700 1,400 2,200 2,900 31nn 5,600 5,600 5, 00 ,00 Millet - Project ALC's - 100 800 1,500 2,400 2,800 3,000 3,000 3,000 3,000 Total Millet Production - 100 800 1,500 2,400 2,oOL 5,000 ,w (J()O Of)0 Price (CFAF/Ton) Groundnuts - sn6on /0,900 34,200 30,0U00 34,200 39,100 43,700 49,000 53,400 Millet - 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 incremental Value of Production (CFAF '000) Grundtuts - 35,300 57,300 75,200 87,000 116,300 140,800 157,300 176,400 192,200 Millet - 3,500 28,000 52,500 84,000 983 onn 105.000 105,000 105,000 105.000 Total Incremental Value of Production - 38,800 85,300 127,700 171,000 214,300 245,800 262,300 281,400 297,200 00. COSTS Roads 12 199,000 PzoDadurer ~2,100 9,300 9,200 9,200 9,200 9,200 9,200 9,200 9,200 9,200 PMU 11eadquarters /1 ,0 ,0 ,0 ,0 Evaluation and Planning 5,300 3,000 3,300 3,300 3,300 3,300 ,,000 Technical Operations Director 1.500 1,000 1,000 1,000 1,000 1,000 1,000 0, 000 1,000 General Agriu ture7,600 18,200 25,500 25,500 25,500 25,500 25,500 25,500 2500 25,500 Seed Multiplicatio7 4,000 3,600 3,600 3,600 3,600 3,600 3,600 3.600 3,600 Applied Research 23,400 3,000 3,200 3,200 3,200 3,200 1,200 3.200 3,200 3,200 EtninStafrann 13,000 4,100 4,100 4,100 4,100 4,100 4,100 4,100 4,100 4,100 Extension h Traning 1, 1.000 1,000 1,000 1,000 1,000 1,000 1,000 Blacksmiths Training 1/150 10( 100910 910 ,0 ,0 Cooperative Affairs 14.800 8,400 9,100 9,100 9,100 9,100 Community Development/1 17,900 19,800 24,800 24,800 24,800 24,000 24,800 24,800 24,800 24,800 Agricultural Credit ') Input and seed refinements 12,700 27,600 44,000 44,000 44,000 44,000 44,000 44,000 Farm equipment 400 600 4,800 4,800 4,800 4,800 4,800 4,800 4.800 4.800 Road Maintenance 4- - 10000 10.w 10.000 10,000 10.000 [ TOTAL COSTS 99,600 14>600 145,600 145,600 lL. 6"0 14 .00 14, jO l45. i0 i-,'0D Less Taxes (20,000) 9,000) 12,900) (12,9001 12900) (19,900) 15 900 (1900) 9 2003 9, Total Costs Net of Taxes 10 0,700 I 0L70 1,700 1,0.100 1,00 1,00 O, 14araka, Gabi, S3uloulou. - With physical contingenries of 15%. P0% of all Proj-e -ots. 4 5'% of costa. NIGER MARADI RURAL DEVELOPMENT PROJECT Economic Rate of Return Calculations Irrigation Schemes 1976 1977 1978 1979 1980 1981 I. Benefits Incremental production (tons) Seed Cotton 170 440 470 500 500 Sorghum 250 655 720 800 875 Tomatoes 1,000 1,500 2,700 3,200 3,500 Onions 1,200 3,000 3,080 3,320 3,500 Price (CFAF/ton) Seed Cotton 58,800 57,800 57,800 57,800 57,800 Sorghum 28,000 28,000 28,000 28,000 28,000 Tomatoes 8,000 8,000 8,000 8,000 8,000 Onions 11,000 11,000 11,000 11,000 11,000 Incremental value of Production (CEF '000) Seed Cotton 10,000 25,400 27,200 28,900 28,900 Sorghum 7,000 18,300 20,200 22,400 24,500 Tomatoes 8,000 12,000 21,600 25,600 28,000 Onions 13,200 33,000 33,900 36,500 38,500 Total Incremental Value of Production 39.200 88.700 102,900 113,400 119,900 II. Costs farm Labor 14,100 14,100 35,300 35,300 35.300 -APoeci Dest for Irrigation Scheme oo/ f6,500 136,300 157,500 - - Agricultural production cost - 2,700 6,600 6,600 6,600 6,600 Pumping - 3,400 8,200 8,200 8,200 8,200 Maintenance - 4,300 10.00 10,400 10100 10,400 Total Costs 6,500 160,800 196,800 60,500 60,500 60,500 Less Taxes 4,200 13,200 16,400 2300 2,300 2300 Total Costs Net of Taxes 24,00 L47600 180.400 58.200 58 200 58,200 / Includes 15% Contingency for Civil Works and equipment. NIGER MARADI RURAL DEVELOPMENT PROJECT Economic Rate of Return Calculations Forestry and Livestock 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 Onwards A. Forestry Sub-Project I. Benefits (CFAF '000) Production (st8res) 600 1,300 1,900 3,200 Price (CFAF/sthre) 1,000 1,100 1,200 1,200 Total Benefits 600 1,400 2,300 3,800 II. Costs (CFAF '000) Project Investment 11,100 11,100 14,800 Maintenance g 5% of investment - 600 1,200 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 Total Costs 11,100 11.700 16,000 1,900 1,900 1,9uu 1,900 1,900 1,900 1,900 1,900 B. Livestock Sub-Project I. Benefits (CFAF '000) Incremental Vaiue of Livestock sales - 1,000 111,800 251,800 454,100 440,600 467,800 665,800 665,800 665,800 665,600 IT. Costs (CFAF '000) Animal health --Project Investment 37,600 10,900 9,900 Yearly vaccine requirements - 6,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 Total Costs 37,600 17.,500 17,500 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 NIGER MARADI RURAL DEVELOPMENT PROJECT Economic Rate of Return Calculations Sensitivity Analysis % A B C D E F Rainfed Development Irrigation Livestock Aggregate Sub-Project Sub-Project Project ALC's Without ALC's With All Project Roads Project Roads ALC's Base Case (25 years) 31.050 19.550 27.250 20.050 > 100 39.350 Benefits Constant Costs -50% 91.550 45.350 71.650 68.050 NA 88.750 -25% 49.450 29.150 41.550 34.850 NA 55.950 -10% 37.150 22.950 31.550 24.950 NA 44.950 +10% 26.050 16.550 22.050 16.050 NA 34.750 +25% 19.950 12.650 16.550 11.050 NA 29.050 +50% 11.850 7.050 8.850 4.150 NA 21.650 Costs Constant Benefits -50% 2.650 4.350 9.050 13.350 NA 11.050 -25% 17.050 10.750 13.850 8.650 NA 26.250 -10% 25.550 16.250 21.650 15.550 NA 34.250 +10% 36.450 22.550 31.050 24.450 NA 44.350 +25% 44.750 26.850 37.850 31.050 NA 51.850 +50% 59.050 33.450 49.050 42.650 NA 64.050 U F  方  __80*i i. LB Y A A L G E R l A NIGER MARADI RURAL DEVELOPMENT PROJECT i ISOHYETS AND CULTIVATION MAL ll N I G E R AREA SHOWN - ON MAP CHAD 3 0Niamey radi Dokoro UPER .AHOMEY CAMEROON- SVOLTA N i GE R A 400 90.bondaries Sho~ om ths ~p do not i.ul u,, rs n ~ ottt -pt- by the World Bank and itnsaffiites. Ourofan NORTHERN SANDY ZONE SOUTHERN SANDY ZONE 55o .DAN ISSA ZONE --0 GOULBI ZONE Zinder 400 - ISOHYETS IN MILLIMETERS Tes¯sa a PRIMARY ROADS SECONDARY ROADS RIVERS ----- DEPARTMENT BOUNDARIES dj Agyeatmy INTERNATIONAL BOUNDARIES 0 10 5000 7 KILOMETERS 7Ur 0 10 30 60 '; _n- .. .--.. D uraMILES i3 KatsIn Magaria E G0 70°  SIG E R MARADI RURAL DEVELOPMENT PROJECT Chadakor SMALL IRRIGATION SCHEMES AND ROAD PROGRAM GidanIrrigation schemes Rourmji RN-1 RN-30 National roads, poved National roads, gravel National roads, earth - .- - .- - Motorable tracks Project roads ý- Project bridge --. -- Intermittent streams Tibiri -~400-- Contour in meters -.- International boundaries T Gidan Sori Thdw RN-1ý 13 30' 13°30 0 to 2MARAD Mayaoukou P-240 P-1 0 RN-18 Serkin Yamna P-3 - f RN-9 SM'adarounfa P-4 0 RN-18 GMb l Mayakt 400 NIGE RIA Dan Isa 0 100 200 300 400 so0 $°".-I- ALGERIA Nielwa 0 100 200 300\ MALINIG N G ERIA ) Allaraka\ Are -/CHAD 115 0 15 20 N f Mp L.ke. Nimey MaldpC° Kilomeler ? AH EY N IGE R IA CAMEROO . --3W·••·'- ----