Togo - Maritime Region Rural Development Project

Report No. 11OOa-TO FILE COPY Appraisal of Maritime Region Rural Development Project Togo May 21, 1976 Regional Projects Department Western Africa Regional Office FOR OFFICIAL USE ONLY Document of tie World Bank This document has a restricted distribution and may be used by recipients only in the performance of their offic-ial duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS US$ 1.00 - CFAF 225 CFAF 1 00 - US$ 0.444 WEIGHTS AND MEASURES Metric System 1 millimeter (mm) - 0.0394 inches 1 meter (m) - 39.37 inches 1 kilometer (km = 0.62 miles 1 hectare (ha) - 2.47 acres i square kilometer (km2) 0.386 sqare miles 1 kilogram (kg) = 2.205 pounds 1 ton (t) - 2.205 pounds 1 liter (1) = 0.26 gallons ABREVIATIONS CNCA - Caisse Nationale de Credit Agricole FAC - Fonds d'Aide et de Cooperation (France) IBRD - International Bank for Reconstruction and Development IDA - International Development Association IITA - International Institute of Tropical Agriculture (Nigeria) IRAT - Institut de Recherches Agronomiques Tropicales et Cultures Vivrieres (France) IRCT - Institut de Recherches sur le Coton et Textiles (France) IRRO - Institut de Recherches sur les Huiles et Oleagineux (France) ODEF - Office de Developpement des Eaux et Forets OPAT - Office des Produits Agricoles Togolais SONAPH - Societe Nationale du Palmier a Huile SORAD - Societe Regionale d'Amenagement et de Developpement SOTOCO - Societe Togolaise du Coton SRCC - Societe pour la Renovation du Cafe et du Cacao UNDP - United Nations Development Program.  FOR OFFICAL USE ONLY TOGO MARITIME REGION RURAL DEVELOPMENT PROJECT TABLE OF CONTENTS Page No. SUMIARY AND CONCLUSIONS .................................. i-vil I. INTRODUCTION .................................... .oe ..... 1 Il. BACKGROUND ........ ................ ....................... 1 A. General ............................................. 1 B. The Agricultural Sector ................... 2 C. Government Sectoral Objectives and Strategies ....... 5 III. THE PROJECT AREA ......................... 6 IV. THE PROJECT .............................................. 7 A. Description ......................... 7 B. Detailed Features ...... ............................. 8 V. ORGANIZATION AND MANAGEMENT .............................. 16 VI. COST ESTIMATES AND FINANCIAL ARRANGEMENTS .... ............ 18 A. Cost Estimates ...................................... 18 B. Proposed Financing .................................. 20 C. Credit Arrangements ................................. 22 D. Procurement ......................................... 22 E. Disbursements ....................................... 23 F. Accounts and Audits ................................. 24 VII. PRODUCTION, MlARKETS, FARMER AND GOVERNMENT BENEFITS ...... 24 A. Yield and Output .................................... 24 B. Prices and Markets .......... .......... 26 C. Farmers' Benefits ................ .. ................. 28 D. Cost Recovery and Impact of the Project on the Government's Fiscal Position ......... .. ........... 29 VIII. BENEFITS AND JUSTIFICATION ............................... 29 IX. AGREEMENTS REACHED AND RECOMMENDATION .................... 31 This report is based on the finding of a mission composed of Messrs. S. Weed, B. Kanchanalak and J. Pelissier (IDA) and H. Vieilhescaze (consultant) that visited Togo in November-December 1975. 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 Worid Bank authorization.  - 2- ANNEXES 1. SORAD Maritime Table 1 - Personnel Breakdown Chart 15733 - Project Organization 2. Caisse Nationale de Credit Agricole (CNCA) Table 1 - Balance Sheets Table 2 - Trading Account Table 3 - Project Credit Cash Flow Chart 15739 - Organization Chart 3. Project Area 4. Farm and Crop Development Table 1: Crop Yield Development 5. Farm Models and Budgets Table 1 - Coastal Plateau - Development of a 1.60 ha Farmi Table 2 - Coastal Plateau - Cash Flow Table 3 - Depleted Coastal Plateau - Deveiopmenet of a 1.20 1ha Paii Table 4 - Depleted Coastal Plateau - Cash Flow Table 5 - Savannah - Development of a 1.50 ha Farm Table 6 - Savannah - Cash Flow Table 7 - Rainfed Rice Farm (0.50 ha) - Cash Flow Table 8 - Vegetables (0.1 ha) - Cash Flow Table 9 - Coconuts (0.5 ha) - Cash Flow 6. Project Phasing and Production Table 1 - Project Farmers Table 2 - Crops and Production 7. Field Trials, Seed Multiplication, Project Monitoring and Eval;jatior Table 1 - Certified Seed Requirements Table 2 - Seed Multiplication - Investment Costs 8. Agoueve Vegetable Irrigation Rehabilitation Table 1 - Present Irrigation Costs Table 2 - Irrigation Water Requirements Table 3 - Pump Capacity and Energy Consumption Table 4 - Cost Estimates (Electrical Pumps) Table 5 - Cost Estimates (Diesel Pumps) Table 6 - Pump Specifications  - 3- ANNEXES (Continued) 9. Renovation of Coconut Plantings Appendix I - Varietal Resistance of Coconuts to Kaincope 10. Infrastructure Appendix 1 - Details of Design and Features of Tubewells Appendix 2 - Detailed Features of a Small Dam Table 1 - List of Road Operation and Maintenance Equipment Table 2 - Details of Road Construction Costs Table 3 - Details of Costs of a Tubewell Table 4 - Small Dam Cost Estimates 11. Irrigation Engineering Study Appendix l - Terms of Reference of Consultants Table 1 - Cost Estimates 12. Reporting Requirements Table 1 - Progress Report - Farm & Crop Development Table 2 - - Yields Table 3 - - Crop Production (Improved) Table 4 - - Input Use Table 5 - - Adoption Rates Table 6 - - Output Prices Table 7 - - Input Prices Table 8 - - Labor Table 9 - - Average Cost - Benefit Ratios Table 10 - - Farm Budgets Table Il - - Total Return to Economy Table 12 - - Project Staff Table 13 - - Cost Breakdown 13. Terms of Reference for Internationally Recruited Staff and Counterparts 14. Project Costs Table 1 - Summary Table 2 - On-farm Costs - Yearly Incremental Table 3 - Vehicles and Equipment Table 4 - Project Staff Requirements Table 5 - Operating Costs Table 6 - Project Buildings  -4 - ANNEXES (Continued) 15. Economic Prices Table 1 - Price Structure for Maize Table 2 - Price Structure for Rice Table 3 - Price Structure for Cotton Table 4 - Price Structure for Groundnuts Table 5 - Price Structure for Copra Table 6 - Price Structure for Fertilizers Table 7 - Price Structure for Rock Phosphate 16. Project Financing Table 1 - Annual Commitments Table 2 - Semi-annual Disbursements of IDA Credit 17. Government Cash Flow Table 1 - Government Cash Flow 18. Economic Rate of Return Table 1 - Economic Rate of Return Table 2 - Sensitivity Analysis MAPS Map 11885 - Project Area Mlap 11886 - Ecological Zones Map 12155 - Irrigation Engineering Study - Proposed Scheme  TOGO APPRAISAL OF MARITIME REGION RURAL DEVELOPMENT PROJECT SUMMARY AND CONCLUSIONS Background i. The Government of Togo has asked for the assistance of IDA and France's FAC to help finance the agricultural development of the Maritime region, one of the country's most heavily populated regions. The prime objectives would be to improve and diversify crop production, and to strengthen the agricultural services, for the benefit of some 20,000 farm families over the five-year period 1976 to 1981. The proposed project was identified by an RMWA mission in July 1973. The feasibility study, financed by the UNDP, was carried out by consultants in May-June 1974; FAC financed the preparation of soil maps. A pre-appraisal mission of Messrs. S. Weed and J. Pelissier visited the country in June-July 1975. It was followed by an appraisal mission comprising Messrs. Weed, Pelissier and Kanchanalak (IDA) and Vieilhescaze (consultant) in October-November, 1975, supported by Mr. G. Losson (IDA) on coconuts and Mr. M. Harrison (In- ternational Institute of Tropical Agriculture) on agricultural research. The Project Area and Summary Description ii. The project area would be the Maritime region in the south of Togo. It supports 37% of the country's population, while covering only 10% of the total area, and includes an overpopulated zone with depleted soils. iii. The proposed project would be the first phase of an integrated rural development program for the project area. It would directly benefit about 20,000 farm families over the five year period of 1976 to 1981. It would be carried out primarily by the SORAD Maritime, the regional develop- ment agency, and would involve: (a) Farm and Crop Development. Providing farmers with inputs, equipment, and extension and credit ser- vices to (i) improve and diversify the produc- tion of the principal upland crops (maize, cas- sava, groundnuts, cowpeas, and cotton) on some 18,500 ha for 12,000 families; (ii) develop about 3,000 ha of lowland rainfed rice for 6,000 fami- lies, and provide about 110 power tillers and 75 village rice mills; (iii) develop 25 ha of vegeta- ble production for 250 families, and rehabilitate irrigation facilities on 20 ha of existing vegeta- ble production; and (iv) renovate 600 ha of small- holder coconut for 2,000 families.  - ii - (b) Farmer Support Services. (i) Strengthening SORAD Maritime by providing additional staff, staff training, buildings and vehicles, ex- panding seed multiplication, and establishing an input supply unit; and (ii) establishing an agency of CNCA to meet project credit require- ments. (c) Infrastructure. Constructing or improving 300 km of roads, 15 dispensaries, 20 wells, 2 earth dams, 20 village markets, and 150 village stores. (d) Studies and Field Trials. (i) Carrying out an engineering study for the gravity irriga- tion of 1,000 ha in the lower Zio valley for rice production; (ii) conducting field trials on techniques to restore the productivity of depleted soils, and to test the resistance of coconut hybrids to Kaincope disease; (iii) estab- lishing a project monitoring and evaluation unit; and (iv) providing consultant services to make investment proposals for the area of North Togo to be cleared of onchocerciasis. Field Development iv. The project would encourage the adoption of improved farm tech- niques including the use of selected seed varieties, fertilizers, pest con- trol and improved crop husbandry by making available to farmers inputs on credit and extension services. v. Upland Crops. In the savannah, on-farm development would focus on promoting cotton production in rotation with maize and groundnuts among 3,000 farmers. The main thrust of this subproject, however, would be in the coastal plateau (8,000 farms) where rainfall is marginal for cotton and the principal problem is the threat of soil depletion. Farmers would be encour- aged to emphasize maize during the long rainy season, because the short sea- son is risky, and to stress rotation with legumes. In the depleted coastal plateau, the principal problem is that soils have lost most of their produc- tive potential due to population pressure and continuous cropping. Unfor- tunately, techniques are not yet available to restore productivity econom- ically. Thus the project would include field trials of promising techniques developed at IITA (minimum tillage and mulching) for dissemination during the last two years of disbursement. Meanwhile, limited improvements would be sought among 1,000 farmers by stressing legumes, groundnuts and cowpeas intercropped with fertilized maize during the long rainy season. vi. Lowland Rainfed Rice. The project would provide for the develop- ment of 3,000 ha of rice to benefit some 6,000 families. SORAD would be equipped to open up the land on credit by plowing. Growers associations  - iii - would receive credit for pedal threshers, hand winnowers and small rice mills. The project would test the use of power tillers and, if the tests are satisfactory, 100 tillers would be procured beginning the third year of the project. vii. Coconuts. Renovation program on 600 ha benefitting 2,000 small- holders would be carried out chiefly by organizing the supply on long-term credit of hybrid seedlings resistant to the Kaincope disease. The project would develop a 6 ha seed orchard with technical support by IRHO. Infrastructure viii. The project would strengthen SORAD's engineering unit to execute the infrastructure part of the project. The construction, improvement and maintenance of feeder roads would be carried out by SORAD on force account as the Department of Public Works deals only with primary roads. Contrac- tors would be hired to construct secondary roads. The wells would be con- structed by the Ministry of Public Works and upon completion would be turned over to district authorities as is usual in Togo, as would the village mar- kets built under contract. The village stores would be built by members of the growers association who would be provided with materials on medium-term credit. Dispensaries would be located in agreement with the Ministry of Hlealth, which would ultimately take over the facilities and ensure their proper staffing, maintenance and supply. Organization and Management ix. Project Management. At the outset, the SORAD Maritime would exec- ute the project in cooperation with CNCA and other specialized Government services. Government intends to unify all extension services under the Ministry of Rural Development. IDA would have the opportunity to comment on any reorganization to minimize disruption of project execution. x. Key Staff. The present director of SORAD, who is a competent Togolese national, would be the project manager. He would be assisted by a technical director, an administrative and financial director, and a chief of the engineering unit responsible for infrastructure development. xi. Extension Services. Sector chiefs would be in charge of the five sectors which correspond to the administrative districts of the region, and would supervise the subsector chiefs. The project would deploy an addi- tional 20 subsector chiefs and 143 field extension workers, giving an over- all satisfactory density of five field workers for each subsector chief, and one extension agent per 150 farmers. Project funds would provide the extension services with appropriate buildings, 35 motor vehicles, 48 motor- cycles and 202 bicycles. xii. Grower Associations. The project staff would assist and monitor the organization of 7-15 participants into grower associations. At a later stage, these informal groups would federate into cooperatives. Extension,  - iv- input supply, and credit would be delivered through grower associations. Ultimately, it is expected that the cooperatives would control input pro- curement and distribution. xiii. Supply of Inputs and Equipment. To ensure effective input sup- ply to farmers, a special unit would be staffed and equipped under the project within SORAD. The long-term objective would be to give profes- sionally managed grower associations full responsibility for input sup- ply. The unit would be organized with this objective in mind and, by the fourth year of the project, a review would be made of the possibilities of achieving this purpose. xiv. Credit Agency. A credit agency would be established as a branch of CNCA for the Maritime region at Tsevie, and would work in close liaison with project management. The head of the credit agency would be a quali- fied and experienced senior credit specialist, who would supervise four credit assistants provided and equipped by the project. xv. Staffing. The key posts which remain to be filled are those of technical director, administrative and financial director, training spe- cialist, research specialist, chief of the engineering unit and head of the credit agency. It is anticipated that a competent national would be available to become the chief of the engineering unit, but expatriates are expected to be necessary for the other posts. The technical direc- tion would be assured by an expatriate during the disbursement period, while other expatriate staff would be required for periods ranging from 2 to 4 years. A research specialist would be assigned to conduct field trials on depleted soils. xvi. Training. As staff and farmer training is an important aspect of the project, funds would be provided for the construction and operation of a training center at Tsevie. The program would be organized by a train- ing specialist appointed under the project. Funds would also be allocated for specialized training of technical personnel at the International Insti- tute of Tropical Agriculture (IITA) in Nigeria. xvii. Consultants would be engaged to coordinate a gravity irrigation engineering study for the dev