Tanzania - Fisheries Development Project

Report No. 963a-TA Tanzania FILE COpy Appraisal of the Fisheries Development Project March 8, 1976 Eastern Africa Regional Office Agricultural Credit and Livestock Division FOR OFFICIAL USE ONLY 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 -/ SDR 1.00 - Tanzania Shilling (Tsh) 9.66 SDR 1.00 - US$1.20 US$ 1.00 - Tanzania Shilling (Tsh) 8.05 Tsh 1.00 - US$0.12 WEIGHTS AND MEASURES Metric System 2 1 hectare (ha) - 10,000 m - 2.46 acres 1 kilometer (km) 2 0.62 miles 1 square kilometer (kn ) m 0.39 sq. miles - 100 ha 1 kilogram (kg) - 2.20 pounds 1,000 kg - 1 metric ton 0.98 long ton ABBRE_VIATIONS TAFICO - Tanzania Fisheries Corporation TRDB - Tanzania Rural Development Bank DDC - DistriLct Development Corporation NCCO - National Cold Chain Organization TAC - Tanzania Audit Corporation MNR - Ministry of Natural Resources GOVERNMENT AND PARASTATALS FISCAL YEAR July 1 - June 30 1/ In October 1975, the three East African Community currencies were pegged to the value of tne Special urawing Rights (SDR) of the Interuational Monetary Fund. An SDR/US dollar conversion rate of 1.2 has been assumed for purposes of this appraisal, although the actual rate is floating.  FOR OFFICIAL USE ONLY TANZANIA FISHERIES DEVELOPMENT PROJECT TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS ........................ i-iii I. INTRODUCTION ................................... 1 II. BACKGROUND . ..................................... 2 A. General .................................. . 2 B. The Agricultural Sector . .................. 2 C. The Fisheries Sub-Sector .................. 4 D. Agricultural Credit .. ..................... 9 III. THE PROJECT .................................... 10 A. General Description .................... ... 10 B. Detailed Features ..... .................... 11 C. Project Costs ..... ........................ 16 D. Financing ....... .......................... 18 E. Procurement ...... ......................... 18 F. Disbursements ...... .................. . 19 G. Accounts and Audit ..... ................... 19 H. Project Implementation ................. ... 20 IV. ORGANIZATION AND MANAGEMENT ..... ............... 20 V. PRODUCTION, MARKETING AND PRODUCER BENEFITS .... 23 VI. ECONOMIC BENEFITS AND JUSTIFICATION .... ........ 25 VII. RECOMMENDATIONS ................................ 26 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.  -2- ANNEXES 1. Fisheries Resources Table 1 1972 Catch 2. Fishing Technology, Equipment and Mode of Operation Appendix 1 - V-Bottom Boats 3. Tanzania Fisheries Corporation Table 1 Profit and Loss Statement - 11 months ended Miay 31, 1975 Table 2 Balance Sheet - May 31, 1975 Table 3 Project related Cash Flow 4. Training 5. Tanzania Rural Development Bacnk Table 1 Balance Sheets 1972 thru 1975 Table 2 Profit and Loss Statements 1972 thru 1975 Table 3 Project related Cash Flow 6. Project Costs Table 1 Project Cost Phasing Table 2 Project Cost by Category Table 3 Coastal Fishing Center - Investment Model Table 4 " " " - Profit and Loss Statement Model Table 5 " " " - Cash Flow Model Table 6 Kigoma Fishing Center - Investment Cost Table 7 - Profit and Loss Statement Table 8 - Cash Flow Table 9 Lake Transport Facilities - Investment Cost Table 10 " U - Profit and Loss Statement Tab le 11 - Cash Flow Table 12 Ujamaa Program - Investment Cost Table 13 i - Profit and Loss Statement Model Table 14 " - Cash Flow Model Table 15 Technical Assistance 7. Estimated Schedule of Disbursements 8. Project Implementation Table 1 Implementation Timing 9. Project related Government Cash Flow  - 3 - 10. Economic Rate of Return Table 1 Economic Rate of Return - Project Table 2 " " " - Coastal Center Table 3 " " " - Kigoma Center Table 4 " " " - Ujamaa Village Program Table 5 Sensitivity Analysis Chart - Project Organization Map - Fisheries Development Project   TANZANIA FISHERIES DEVELOPMENT PROJECT Summary and Conclusions i. Tanzania's development strategy has given a high priority to agricultural and rural development, as over 90% of its population lives in rural areas and is mainly engaged in traditional agriculture. To facilitate rural development, and to promote a balanced regional development effort, Government in 1972 undertook a major decentralization of its administrative functions to 20 regional administrations. Within this context greater atten- tion has been given to the construction of agricultural feeder roads, rural water supplies, health facilities and the development of village centers with basic infrastructure and services. The Government has also emphasized directly productive investment, particularly in the agricultural sector. Attention has been given to increased support of the fisheries sub-sector as a means of supplying badly needed protein in the diets of those living in rural areas. In addition to raising nutritional levels, the expansion of fish production also has significant economic, social and employment benefits. The proposed Project would support this strategy by expanding the capacity of the commercial sector and by helping to develop traditional fishing at the Ujamaa level, thus helping not only to increase present levels of fish consumption but also providing the basis for the future expansion of the fisheries sub-sector. ii. The Project would represent the first stage of a long term program to develop fisheries production in Tanzania. It would over five years support the establishment and development of commercial fisheries at selected centers, assist in the adoption of improved fishing techniques, improve marketing and provide the basis for fisheries development in the traditional sector by supporting a pilot village fisheries program. This Project is designed to strengthen extension services, increase fish production in both the commercial and the traditional sector, and provide essential inputs such as credit and other services to these fishermen. The Project would specifically provide for the establishment of three commercial fishing centers along the coast. Each of the centers would be provided with ten 10 meter boats equipped with a 45 h.p. engine and trawlgear. Crews for these boats would be recruited from the local communities and would include a skipper, an engine operator fisherman and 4 other crew. Other center investments would include a workshop, a cold store, vehicles and equipment. One fishing center would also be established on Lake Tanganyika at Kigoma. Ten commercial purse seining units would be provided at the center; each unit would include a 12-meter locally built wooden boat powered by an 80 h.p. diesel engine and fitted with nets,  - ii - kerosene lamps nets and other fishing gear for fishing by light attraction. Other investments would include covered drying racks, cold storage facilities, vehicles, equipment and buildings. The Project would also develop a pilot program aimed at expanding current fish production in about 20 Ujamaa villages located on the shore of Lake Tanganyika. Credit would be provided to these villages through TRDB to purchase about one hundred small (7.9 meter) boats powered by a 10 h.p. inboard diesel engine and equipped with the necessary nets and other fishing gear. Technical assistance would be provided to train the villagers in fishing techniques as well as in the operation and maintenance of the boats. If it proves feasible and necessary, transport facilities in the form of two tugs and four barges would be provided to transport the village production to Kigoma and then inland by rail or truck; the barges would also strengthen the presently inadequate transport of basic supplies to the remote lake shore villages. Finally the Project would provide technical assistance in the form of 9 internationally recruited staff to assist with Project imple- mentation and development, a study to evaluate market prospects for increased production of both fresh and dried fish, and a study of the effects of chemical pollution on the life cycle of fish in Lake Tanganyika. iii. The Ministry of Natural Resources would have overall responsibility for all Project activities and in order to assist the Ministry in this task, a Coordinating Committee would be established to provide policy guidelines and planning assistance. The Director of Fisheries would serve as Project coordinator. Each of the proposed fishing centers would be operated by a joint venture company formed by the Tanzania Fisheries Corporation (TAFICO) and the local District Development Corporation. TAFICO would be the majority shareholder with a 60% equity holding. Credit to these centers would be provided through the Tanzania Rural Development Bank (TRDB). The lake transport facilities would be owned and operated by the fishing center at Kigoma. The Ujamaa village 1/ program would be administered by the Fisheries Division of the Ministry of Natural Resources with assistance from TRDB. The Ministry would also have direct responsibility for the market study and the pollution study. iv. An IDA credit of US$9.0 naillion is proposed which would cover the foreign exchange component of the Project and 36% of local costs. This would represent 72% of total Project costs of Tsh 99.6 million (US$12.4 mil- lion). The Government's contribution would total Tsh 17.7 million (US$2.2 million), or about 18% of total Project costs including import taxes and duties which are negligible. The joint venture companies and the Ujamaa villages would together contribute Tsh 9.5 million (US$1.2 million) or 10% of total Project costs. The funds for the fishing centers, the Ujamaa village program and the lake transport facilities would be channelled by Government to TRDB at 4% interest per annum for 20 years with 4-year grace period on interest and capital repayments, loans from TRDB to the joint venture companies and Ujamaa villages would represent 85% of the capital cost of the respective investments. Funds for technical services would be channelled by Government through the Ministry of Natural Resources to TAFICO in the form of a direct 1/ Ujamaa is Swahili literally means "familyhood".  - iii - grant, with the exception of funds for the market study, equipment and technical staff for the Ujamaa village development program which would remain in the Ministry. Machinery, engines, equipment and vehicles (US$1.7 million) would be procured under international competitive bidding in accordance with Bank/IDA guidelines. Civil works contracts (US$0.5 million) and contracts for boat building (US$4.8 million) would be tendered locally and government procurement procedures, which are satisfactory, would apply. v. At full development (year 6) the Project would result in about 21,000 tons of incremental marketed production of fish; this would include about 400 tons of shrimp 1,800 tons of table fish 15,800 tons of dagaa and various quantities of other fish. The total annual value of this production is estimated at Tsh 40 million (US$5.0 million). This expanded production would result in increased fish consumption in many rural areas where nutri- tional values are low; this would be especially important in the case of the dried dagaa, as this represents the lowest cost per unit of protein of all food consumed in Tanzania. An important benefit of the Project would be the development and demonstration of more sophisticated although simple fishing techniques at the village level enabling local fishermen to better exploit an existing but greatly under-utilized resource. The provision of the lake transport facilities would also open up more remote areas of the lake shore to trade. It is expected that these developments would help to substantially raise the incomes of those living in the affected fishing communities. vi. The economic rate of return for the Project is estimated at 27% over twenty years. Individual rates of return were calculated for specific Project components; these are estimated at 22% for the coastal fishing centers, 28% for the Kigoma fishing center including lake transport facilities and 30% for the Ujamaa program. In the latter analysis the costs of technical service staff were included in the relevant components, except for that element which is attributable to future project preparation. vii. Ten IDA credits (USS119.1 million) and two IBRD loans (US$30 million) have been approved thus far for agricultural and rural development within Tanzania. These projects include one for agricultural credit; three for livestock-including one dairy project; one each for tobacco, tea, cotton sugar, cashewnuts and maize; and a rural development project for the Kigoma region. Other credits have been extended for agricultural training and feeder road development. There have been substantial delays in the implementation of several of these projects, although there has been some recent improvement in this area; management and staffing arrangements have generally been a conti- nuing problem. The cotton, tobacco, sugar and rural development projects have been affected by the sudden acceleration of the villagization program; this has required some reorientation of the projects and has caused signifi- cant delays. viii. Subject to the required assurances and conditions, the proposed Project is suitable for an IDA credit of US$9.0 million to the Government of Tanzania.   TANZANIA FISHERIES DEVELOPMENT PROJECT I. INTRODUCTION 1.01 Tanzania's development strategy has given a high priority to agri- cultural and rural development, as over 90% of its population lives in rural areas and is mainly engaged in traditional agriculture. To facilitate rural development, and to promote a balanced regional development effort, Government in 1972 undertook a major decentralization of its administrative functions to 20 regional administrations. This was designed both to make maximum use of the growth potential in each region and to narrow the gap between regions in terms of the supply of essential services. Within this context greater attention has been given to the construction of agricultural feeder roads, rural water supplies, health facilities and the development of village centers with basic infrastructure and services. The Government has also emphasized directly productive investment, particularly in the agricultural sector. Attention has recently been given to increased support of the fisheries sub-sector as a means of supplying badly needed protein in the diets of those living in rural areas. In addition to raising nutritional levels, the expansion of fish production also has significant economic, social and employment benefits. The proposed Project would support this strategy by expanding the capacity of the commercial sector and by helping to develop traditional fishing at the village level, thus helping not only to increase present levels of fish consumption but also providing the basis for the future expansion of the fisheries sub-sector. 1.02 Ten IDA credits (US$119.1 million) and two IBRD loans (US$30 million) have been approved thus far for agricultural and rural development. These projects include one for agricultural credit; three for livestock (including a recently approved dairy project); one each for the development of tobacco, tea, cotton, sugar, cashewnuts and maize; and a rural development project for the Kigoma region. A credit in 1971 provided USS3.3 million for agricultural training, and a 1972 credit provided USA6.5 million for feeder road development. Progress under these projects has been slow, although there has been some recent improvement; management and staffing have been a continuing problem. Under the completed credit project a need was found for improved supervision of loan records and input distribution. The first livestock (beef) project was reasonably successful, but the second project has pro- gressed more slowly than anticipated due to delays in preparation and appro- val of ranch plans, serious cost overruns in plant construction costs, and frequent changes in project management. Development of the tea project has been disappointing and slower than expected and encountered difficulties due to inadequate services and lack of effective management control. Although recruitment of growers for both tea and tobacco has been slow in the past, this has recently shown substantial improvement. The cotton, tobacco and rural development projects have been affected by the sudden acceleration of the villagization program in 1973 and 1974; this required reorientation of the projects and caused significant delays. The cashew, sugar and live- stock (dairy) projects are progressing well.  1.03 The proposed fisheries Project was prepared by the Tanzania Fishing Corporation (TAFICO), and the Tanzania Rural Development Bank (TRDB) with the assistance of UNDP/FAO resident: field staff. The original Project proposal included a component for commercial fisheries on lake Victoria. During appraisal it was agreed that insufficient catch and marketing data existed to enable a realistic analysis to be done and that as an alternative a market study should be included to get the data necessary for future development in this area. This report is based on the findings of an appraisal mission which visited Tanzania in June/July 1975, composed of D. Lomax, T. Baddar, L. Sprague (IDA), and H. Kristjonsson (FAO). II. BACKGROUND A. General 2 2.01 Tanzania has a total area of about 800,000 km . The population of 14.5 million (which is increasing at about 3% a year) is concentrated in a few regions, with about two-thirds of the people occupying only 10% of the land. Tanzania is one of the 25 "least developed" countries in the world. Per capita GNP for 1974 was estimated at US$115. The growth rate of the economy has been about 5% per annum from 1964 to 1973; actual growth has lagged behind the second Five-Year Plan (1966-1974) targets, mainly due to the failure of the main agricultural crops to reach plan projections. The 1973 drought and the accelerated villagization program resulted in a serious reduction in agricultural production in 1974, necessitating major imports of food grains and causing severe balance of payments problems. The recent increases in petroleum prices and world-wide inflation have also had a severe adverse impact on the Tanzanian economy. 2.02 Tanzania aims at reducing inequalities in income distribution through emphasis on smallholder agriculture and rural development, as well as state control of important industries, services and large-scale agricultural enterprises. Initiative for planning and implementing many development proj- ects has devolved to the regional and district administrations, with an emphasis on the development of productive activity, particularly in the rural sector, in conjunction with efforts to achieve balanced regional growth and a more equitable income distribution. B. The Agricultural Sector 2.03 Agriculture accounts for roughly 40% of Tanzania's GDP and approxi- mately half of this output represents subsistence production. About 80% of the country's total exports are derived from the agricultural sector. Agri- cultural exports in 1974 were valued at Tsh 1,900 million (US$236 million),  - 3 - of which coffee accounted for 20%, cotton 25%, sisal 25%, and cashew 13%. Other exports included tea, meat, and tobacco. Exports of fish in the same year amounted to Tsh 2.5 million (US$0.3 million). Total agricultural imports in 1974 were about Tsh 1,050 million (US$130 million), of which about Tsh 790 million (US$98 million) represented import of food grains. 2.04 About 90% of the population lives in rural areas, traditionally in small isolated communities. Most agricultural production is concentrated on smallholdings which are cultivated by hand and produce family subsistence as well as cash crops. The area cultivated by a family averages about 5-6 ha varying from under 2 ha in the more favored agricultural areas to 50 ha in less favored areas. Shifting cultivation is practiced in many areas of the country. Important smallholder cash crops are cotton, cashewnuts, tea, tobacco, coffee, maize and rice. Large estates produce, sisal, coffee, tea and coconuts, while state farms produce mainly wheat, rice and livestock. Estate production has diminished in importance and the state farm program remains small. Villagization 2.05 The Arusha Declaration of 1967 reaffirmed Tanzania's commitment to a socialist society and identified the Ujamaa village as a means of effect- ing self-reliance and a community approach to development. The Ujamaa village was seen as a vehicle for providing economies of scale in delivering inputs and social services, which could improve the lives of rural people. The ultimate objective is that Ujamaa villages become multi-purpose cooperative societies with powers to own land and to borrow. Most villages have been formed by physical resettlement. The precise pattern of development within each Ujamaa village has been left to the villagers themselves to decide, and Ujamaa development has varied considerably among regions. The extent of collective activity varies among villages, ranging from a predominantly communal or block farm approach to one which continues traditional individual family farms with a small communal venture for cash. The Government has provided considerable assistance to newly developed Ujamaa villages, chiefly by way of transporting villagers' effects, providing building materials for houses, and provision of water supplies and other social services, and it has also encouraged them to develop productive activities. Within the past two years, the emphasis has shifted from development of Ujamaa cooperatives to formation of "planned" or "development" villages of between 1,000 and 2,000 families each. Under this villagization program, a substantial proportion of the rural population has been moved to new locations where the Government hopes to provide basic services and infrastructure. The program has caused some disruption in agricultural production (para. 2.01), in part because of inade- quate planning and preparation, but also because the vast scope of the program necessitates a major reorientation of traditional agriculture which is likely to take many years.  - 4 - C. The Fisheries Sub-Sector Fish Resources and Production (Annex 1) 2.06 Tanzania has substant:ial fish resources in the territorial waters of Lakes Tanganyika and Victoria, as well as limited resources available from the coastal inshore waters of the Indian Ocean. Smaller quantities of fish are also available in various other lakes and inland swamps. These resources are only now being seriously investigated, but it is evident that inland resources and to a lesser degree marine resources are capable of considerably greater rational exploitation 1/ than is presently being under- taken. Government has supported a long term fisheries development plan under the auspices of the Fisheries Division of the Ministry of Natural Resources. As part of this effort studies are now being carried out under a UNDP/FAO project in the Kigoma region to assess the standing stocks and potential sustained annual yield from the Tanzanian part of Lake Tanganyika; other areas of investigation include fish biology, limnology, and the processing, marketing and distribution of fish and fish products. It is expected that similar efforts will be made in other areas of the country with support from UNDP, FAO and bilateral development assistance. 2.07 Indian Ocean. The 550 mile coastline of mainland Tanzania is characterized by a narrow continental shelf which drops off iharply after a depth of about 60 meters. The total area of about 12,000 km of continental shelf is reduced by coral formal'ions to an effective trawlable area of about 1,500 km2 at a depth of 29 meters where most of the trawling has been done to date; another 2,000 km is thought to be available for trawling in depths of 20 to 60 meters. Two main groups of commercial fish occur in these coastal waters: pelagic (surface associated) and demersal (bottom associated). The most important group is the demersal which includes shrimp, table grade fish and industrial grade fish. Shrimp are found mainly in shallow waters of less than 20 meters depth, arnd it is estimated that the present total sus- tainable yield should be between 1,300 and 1,700 tons per annum. The most important table grade fish caught by trawling are red snapper and flat fish. There is very little information available on the sustainable yields of these and other table fish, but an FAO study concluded that the present marine catch of 25,000 tons per annum could be doubled by 1980 with no serious adverse effect on the fish population. At the present time much research remains to be done on the potential for marine fishing off the coast of Tanzania; indications are that the industry is a highly seasonal one and any future development should proceed cautiously. 2.08 ,Lake Tanganyika. Tanzania territorial waters include approximately 13,500 km or about 41% of the lake's total area. The lake itself has large relatively unutilized stocks of fish, and offers excellent prospects for the future development of these resources. Due to seasonal upswelling brought on by the monsoon winds, the high level of organic material accumulated and 1/ That is, harvest up to abouit the limit of maximum sustainable yield.  - 5 - the extreme depth and volume of the lake, biological productivity is high. Because of the very steep slope and the virtual absence of shelf most of the fish found in the lake are pelagic or surface associated. These fish include 2 species of sardines (dagaa and lumbo), three species of nile perch and various predators. Dagaa makes up more than 75% of the catch in both the traditional and commercial sectors (para 2.11). Preliminary surveys carried out under the UNDP/FAO project (para 2.06) indicate a standing stock of about 2.5 million tons of all species of fish, and it is estimated that up to one- third of this stock could be harvested each year. Present total harvest from the lake amounts to about 2% to 3% of the standing stock. Although the overall stock of fish is quite large, the acoustic surveys made thus far illustrate that the distribution of fish varies greatly from one survey to the next, and no generalizations about the geographic distribution of fish can be made at this time. Consequently, care must be taken in the development of fisheries on the lake. About 13,400 mainly subsistence fishermen/farmers now work at least part time on the Tanzanian part of the lake and the total catch in 1974 was estimated at about 50,000 tons. 2.09 Lake Victoria. Lake Victoria, the world's second largest lake, is generally thought to have fairly large fish resources, although the data on which this assumption is based is tentative. The most numerous fish are of the cichlid family, which includes over 150 species of haplochromis and a few species of tilapia. The waters of the lake can generally be divided into three zones: a shallow water zone from shore to about 10 meters, a second from 10 to 20 meters, and a third deep zone from 20 to 65 meters; little if any fishing is done beyond 65 meters. As many as 20 species of fish are caught in the shallow waters, and this area is heavily fished throughout most of the lake. Little is known about the relative abundance of fish in the 10-20 meter zone, although it is believed that the composition of the fish population is similar to that found in more shallow waters with a somewhat higher percentage of haplochromis. It has been well established for over two decades that fish resources in the deeper waters of the lake are very great. In recent years the East Africa Freshwater Fisheries Research Organiza- tion assisted by FAO/UNDP has carried out an experimental trawling program on the lake, and has established that there are fairly sizeable quantities of haplochromis in these waters. Preliminary data indicates that an annual sustainable yield of about 200,000 tons may be possible. Statistics indicate that the total catch of fish from the lake averages about 41,000 tons per annum, and haplochromis represents a substantial part of this catch. Estimates as to the actual size of the haplochromis catch are very doubtful and may have been systematically overestimated in the official statistics. Any further increase in the catch would have to be restricted to waters outside those now being fished, and before undertaking this effort a better data base should be developed to determine whether such operations would be economically attractive. 2.10 Other Fish Resources. Lakes Nyasa, Rukiva, Kitangiri, the area around the Nyuma ya mungu dam and various swamps all produce some quantities  -6- of fish. However, indications are that these sources are heavily fished or over-fished and the scope for incremental development does not appear to be favorable. The National Cold Chain Organization (NCCO) has already helped develop receiving stations, loaned money for nets and other equipment, and improved transport facilities at the more important lakes. The Fishing Industry (Annex 2) 2.11 Fishing in Tanzania is carried out by two distinct groups: commer- cial operators using motorized vessels and traditional fishermen. Total fish production over the last five years has ranged between 150,000 m tons and 185,000 m tons per annum; abouit 90% of this is produced by approximately 40,000 traditional fishermen, and the remainder by less than 3,000 commercial producers. True commercial operations in fact represent only a very small segment of the fishing industry. These operators are generally organized in small companies, most of which are owned by the regional and district development corporations 1/. There are now only a few medium size commercial vessels carrying out trawling operations along the Tanzanian coast; most of these vessels trawl for both fish and shrimp, spending on average about 2 or 3 days per trip away from their home port. On Lake Tanganyika there are about 3 commercial purse seining units operating; these boats are patterned after those employed along the Adriatic coast, and feature an outdated and complex two-boat method of fisating. This old fashioned system has been re- placed by one boat purse seining almost everywhere in the world. On Lake Victoria there are about 5 modern commercial vessels trawling for table fish. Traditional fishermen living along the coast and near the various inland lakes produce by far the greater part of the landed catch. These fishermen, who also cultivate small subsistence farm plots in their villages, generally operate at night using dug-out canoes, although day beach seining, set nets and line fishing are also commonly found. Most of these fishermen paddle canoes out a short distance from shore to catch fish attracted by lamps or to fish by other methods. Although fishing throughout the country continues all year, the catch varies seasonally. Fish Marketing and Consumption 2.12 About 25% of total fish production comes from marine fishing, and 75% from the inland lakes and oither fresh water sources. The marine fish are generally sold fresh, while inland production is sold both fresh and sun- dried. Although fresh fish is generally preferred, dried dagaa in particular is consumed widely in most parts of Tanzania and is in some places a basic 1/ The District Development Corporation (DDC) concept was launched in the mid-1960's as the local counterpart of the centrally organized para- statals. A DDC is a limited company and is, in effect, the commercial wing of the District Development and Planning Committee. Its objectives are to stimulate commercial activity in the District by participation in viable enterprises.  - 7 - staple of the diet. Per capita fish consumption is about 12 kg fresh fish equivalent a year, ranging from 46 kg a year in lakeshore regions to less than 1 kg in inland regions. Fish consumption could be increased and fish could be provided to a greater part of the population if the marketing system and processing methods were both improved. Market expansion is limited by the distances from the landing points to the major consumer centers; access to certain lake areas by road is almost totally lacking, and rail facilities are likewise inadequate. Traditional method of preserving fish by sun drying on the beaches presents certain problems; significant quantities of fish are lost through spoilage caused by rains and through the accumulation of sand on the fish. Fish dried in this way can only be preserved for about one month, although this period can be extended to at least 3 months through the provision of covered drying racks at landing beaches and lowering the level of insect infestation. Improvement of marketing facilities should be given a high priority, as dried dagaa represents the lowest cost per unit of protein of all food consumed in Tanzania. 2.13 Both the wholesale and retail trade are almost entirely in the hands of private traders, although some wholesaling of fresh fish from marine and lake sources is carried out by the National Cold Chain Organization. This corporation collects fresh fish from the landing beaches and delivers it to the principal markets and hotels. Between 5% and 10% of total fish production is commercially marketed, and about 80% of fish production is consumed in regions contiguous to fishing grounds. The price of fish is not controlled, and varies considerably due to seasonal variations in the catch. Retail prices of dried dagaa at markets range from Tsh 8.00/kg to Tsh 20/kg, and the average boat side price is Tsh 1.50/kg or about Tsh 4.50/kg for dried dagaa. Fisheries Services 2.14 Government services to the fisheries sub-sector are the responsibi- lity of the Fisheries Division of the Ministry of Natural Resources. This division administers an extension service organized on a regional and district level, with policy direction and technical support provided by the Ministry of Natural Resources; although there are nominally about 600 extension staff engaged in fisheries extension and development work, many of them lack ade- quate training and equipment to be effective. The regional fisheries staff are headed by a Regional Fisheries Development Officer; he supervises District Fisheries Offices who have under them Field Officers, Assistant Field Officers, and Field Assistants. Field Officers and Assistant Field Officers are formed into project units, and Field Assistants are generally posted at landing beaches. Despite limitations of staff, funds and logistic support, some of the extension staff are highly motivated. The extension service now operates a small number of mobile fishing units 1/ on the major lakes; these units are 1/ Each unit consists of a net and gear specialist, an engine operator mechanic, two fishermen and a team leader.  used to demonstrate improved fishing techniques and to train local fishermen in their use. The Fisheries Division also provides technical and planning services aimed at the promotion of traditional fishing within Tanzania. 2.15 Tanzania Fisheries Corporation (TAFICO). TAFICO was established in 1974 as a parastatal with responsibility for the support and development of commercial fishing within Tanzania (Annex 3). It was given authority to formulate and examine development programs, to sponsor joint ventures for the expansion of the commercial fishing fleet, to promote the use of modern fishing techniques and to support and encourage the establishment of allied or ancil- liary fishing industries. The corporation has limited staff and resources and will require considerable technical assistance to enable it to carry out its responsibilities. In particular it was expected that the Corporation would assume responsibility for Government 1/ boat building and net making programs, this was done to ensure that as far as possible the production of fishing vessels and fishing gear would be coordinated by a single authority. TAFICO now operates four large and several smaller boat-building yards. The larger yards are capable of constructing boats of from 10-15 meters, and plans are underway to expand these facilities. Lack of wood- working machinery and workshop equipment and the small number of skilled craftsmen and mechanics available are the main factors limiting expansion of this capacity. These boatyardes were transferred to TAFICO from the Ministry of Natural Resources, and some of them have been in operation for several years. The boat-building program is intended to produce appropriate sizes and types of seaworthy fishing boats and is linked with the GOT policies to increase fishing production by reducing the shortage of acceptable fishing boats. The program covers the establishment of new boatyards at Dar es Salaam and Kigoma, and the modernization and expansion of existing yards at Itungi, Mikindani, and Pangani. In addition to TAFICO's activities, all the major villages on Lake Tanganyika have one or more persons engaged in the building and repair of wooden canoes. The yards near Bagamoyo on the coast and the yard at Mwanza on lake Victoria are well equipped and staffed with well qualified workmen. It is expected that TAFICO will not undertake large scale fishing operations on its own 2/, but would participate jointly with District Development Corporatio;ns or other interested parties. At the present time, TAFICO is studying the possibilities of its becoming involved in the handling, processing, distributLon and marketing of fish, but the extent to which it will participate in these activities in the future depends in part on the outcome of the marketing study provided for under the project (para. 3.09) and on the role assigned t:o NCCO by the Government. 1/ There are no significant privately owned boat yards. 2/ Because of responsibilitieE; for the development of shrimp fishing on the coast, TAFICO may operate some bilaterally provided shrimp vessels from Dar es Salaam.  -9- Research and Training 2.16 A number of research and training efforts under the auspices of the Fisheries Division are now underway (Annex 4), and some of these programs have received considerable assistance from bilateral donors. A fisheries training program for Field Officers is carried out at Kunduchi. A vocational training institute supported by NORAD will soon be operational at Mbegani which will provide, among others, courses in marine diesel mechanics, fishing techniques, (wooden) boat building, general mechanics, refrigeration engineer- ing, and marine engineering. Some on the job training is also provided at all TAFICO boat yards. On average 3 or 4 fisheries officers are being trained overseas each year under various bilateral assistance programs. The Fisheries Division has also initiated a number of research programs and pilot studies. Research stations have been established at Lake Victoria (The East African Freshwater Fisheries Research Organization, and Nyegezi Fisheries Research Station 1/) and at Lake Tanganyika (Lake Tanganyika Fisheries Research and Development Project, UNDP/FAO). D. Agricultural Credit 2.17 Tanzania credit institutions, the National Bank of Commerce, the Tanzania Investment Bank and the Tanzanian Rural Development Bank (TRDB) are wholly Government-owned. TRDB, (Annex 5) which has responsibility for agricultural credit, was created in 1971 as the fourth of a succession of rural credit institutions. It took over the operations of the former National Development Credit Agency, together with agreed assets and liabilities. The Government's intention when forming TRDB was that it would become a sound institution, competently staffed and, although Government-owned, possessing a reasonable degree of autonomy. IBRD/IDA concurred with these objectives and in support of them agreed that TRDB should be the credit channel for a number of IDA credits in the past few years, (first and second livestock projects, and the tea, tobacco, cotton and Kigoma projects). However, it would not have been prudent for TRDB to function without substantial technical support, and consequently it has played a somewhat secondary role under these projects in that the major technical decisions have been taken by the specialist authority (e.g. tea, cotton and tobacco), while TRDB has acted as the disburse- ment, accounting and collection agency. It has thus been building up its portfolio at the same time as it has been strengthening its staff and pro- cedures. This procedure has been satisfactory and if it continues TRDB should be capable in the future of taking on an increasingly large share of project responsibilities. As with the Dairy Development Project, under the proposed fisheries project TRDB would have an important role to play in the choice of villages under the Ujamaa village fisheries program in addition to its role 1/ Assisted by Netherlands development aid.  - 10 - as a credit vehicle for all project components. This gives TRDB an increasing share of responsibility which in view of its progress to date appears appropriate. 2.18 TRDB provides long, medium and short-term credit to farmers through cooperative societies and Government guaranteed soft-term loans (3% p.a.) for particular Ujamaa developmetnt projects. TRDB is funded by a Government equity investment of Tsh 150 million and loans of Tsh 50 million. Other authorized resources of over Tsh 300 million have come from IDA and other international aid funds onlent by Government, with IDA accounting for about 80% of these other resources. TRDB's loan portfolio over the last four years has increased from Tsh 79 million to Tsh 271 million and annual net profits over the same period have increased from Tsh 152,000 to Tsh 1.7 million. Credit control is weak due to lack of staff at all levels and arrears of loan repayments as of June 30, 1975 accumulated to Tsh 53 million, an increase of Tsh 17 million in 1975 while provision for bad and doubtful debts was increased by Tsh 3 million during that year. Funds were provided under the Dairy Development Project for the appointment of a consultant to help TRDB determine its arrears position and develop effective recording systems for outstanding debts. Technical assistance is given to borrowers by regional representatives trained in agriculture and economics. Regional representatives and head office staff are also becoming more involved with project identifica- tion and preparation activities, but this work is hampered by shortage of staff. In order to strengthen both its credit control and identification and preparation work, TRDB has recently engaged 18 new credit supervisors and a further 30 are presently Lnvolved in training programs prior to being appointed. It is anticipated that with this increase in staff and maintenance of good management, TRDB will, in the near future, have the capacity to prepare large-scale credit projects suitable for external financing. The standard rates of interest set by Government and charged by TRDB are 8-1/2% on short-term loans and 7-1/2% on medium and long-term loans, and these rates are consistent with other lending rates in the country (which range between 7-1/2% and 9-1/2%). Government, for this Project, has proposed increasing the medium-term rate from 7-1/2%, to 8-1/2% per annum. III. THE PROJECT A. General Description 3.01 ZI'e Project would represent the first stage of a long-term program to develon fisheriei nroduction in Tanzania. It would over five years support the establishment and development of commercial fisheries at selected centers, improve fishing techniques and marketing data and provide the basis for fisheries development in the traditional sector by supporting a pilot fish- eries program for Ujamaa villages on Lake Tanganyika. It would include:  - 11 - (a) development of three marine fishing centers; (b) development of one fishing center at Lake Tanganyika; (c) a study to assess the market potential for expanded production of dried dagaa and an investigation into the effect of chemical pollution on the life cycles of fish in Lake Tanganyika; (d) establishment of a pilot Ujamaa fisheries program at Lake Tanganyika; (e) provision of transport facilities on Lake Tanganyika; (f) technical services and future project preparation. The Ministry of Natural Resources would have overall responsibility for Project implementation. Each of the proposed fishing centers would be operated by a joint venture company formed by TAFICO and the local District Development Corporation having responsibility for the particular geographic area concerned. The Ministry would have direct responsibility for the market study, the pollution study and through its regional fisheries extension staff would - in cooperation with TRDB - be responsible for the Ujamaa fisheries program. 3.02 The Project would have a dual objective. The first would be to increase fish production and improve management within commercial fishing companies. The second objective would be to develop fishing in the tradi- tional sector by training fishermen and developing marketing information and an effective marketing system. This Project would thus provide the basis for a future second fisheries project which would be designed to further strengthen extension services, substantially increase fish production in the traditional sector on Lake Tanganyika, and provide essential inputs such as credit and other services to Tanzanian fishermen. B. Detailed Features Fishing Centers 3.03 The Project would establish four fishing centers - three along the coast and one on Lake Tanganyika - in an effort to increase the size of the catch presently achieved using traditional methods and to improve processing and marketing techniques. These fishing centers would be owned and operated by joint venture companies formed by TAPICO contributing 60% of the equity capital and the local District Development Corporation (DDC) contributing the remaining 40%, with credit provided in each case through TRDB.  - 12 - 3.04 Coastal Fishing Centers. Three fishing centers would be established along the coast. The exact locations of these centers has not yet been established, but these would be determined jointly by the local District Development Corporations and TAFICO; it is expected that these centers would be located north of Mohoro bay, with possible sites at Rufiji and Sadaani. Each of the centers would be provided with ten 10-meter fishing boats equipped with a 45 h.p. engine. These recommended boats, built to a standard FAO design, are powerful enough to handle the 16.8 m FAO designed trawl, but low in fuel consumption and maintenance problems (Annex 2 pages 1 and 2). The FAO design appears to be well suited for the conditions found along the coast and is seaworthy enough to handle the prevailing weather and sea conditions; each boat would also have two sets of trawl gear as well as twine and netting for repairs. Crews for these boats would be recruited from the local communities and from among trainees and graduates of the fishing technical training schools; no difficulties in recruiting crews are expected. Crews would include a skipper, an engine operator/fislherman and 4 deckhands. The skipper and engine operator would receive preliminary training at Mbegani (para. 2.15) before being entrusted with their duties. Other investments in the center would include an ice store (chill boxes, adequate supplies of ice are available from NCCO), vehicles, equipment, a workshop for carrying out routine maintenance and repairs, and several pre-fabricated buildings. It is expected that each center would require an absolute minimum of fixed investment, so that if fishing prospects should later prove better at other spots along the coast, the centers could be transferred to these locations with minimum disruption of the normal fishing operations.- No difficulties in moving crews are expected. 3.05 Lake Tanganyika Center. A permanent fishing center would be established on Lake Tanganyika at Kigoma. Ten commercial purse seining units improved in design and simpler to operate but conceptually similar to those now operating on the lake (para. 2.11) would be provided at the center. Each unit would include a 12-meter locally built wooden boat powered by an 80 h.p. diesel engine, along with five sumall light boats fitted with two kerosene lamps and the required nets and other fishing gear. Other required investment would include covered drying racks, cold storage facilities, vehicles, equip- ment and buildings. Ujamaa Pilot Fisheries Program 3.06 There are now at least 100 villages along the shore of Lake Tanganyika, and of these about 20) are in various stages of Ujamaa development. Most of the villagers are poor and depend on fishing for a large part of their subsistence. Fishing techniques vary from village to village, but most of the fishermen work from the shore at night using canoes and some form of light to attract the fish; some of them are familiar with beach seines, although many do not have the resources to purchase them. Catamarans and trimarans 1/ fitted with lift nets have been successfully used by fishermen in the Burundi 1/ These are formed by joining two or three boat hulls, and in some cases are powered by small outboard motors.  - 13 - waters of the lake. Recently, the FAO project at Kigoma has had some success with this fishing method. However, some concern has been expressed that because of differences in currents and winds along the Tanzanian shore these vessels may not be suitable for use in Tanzanian waters during parts of the year. If difficulties are overcome, and if this method proves to be successful, this style of fishing could be included in the pilot fisheries program. In Zambia, fishermen on Lake Tanganyika use an encircling net called a chiromila net along with lights to catch dagaa. Given the large quantities of fish indicated by the UNDP/FAO project findings, and the similarity of the dagaa in biology and behavior to small anchovies and sardines fished in many widely separated areas of the world such as the Philippines, the West Coast of Malaysia, Indonesia, and many South Pacific Islands, it appears reasonable to assume that slightly modified techniques proven elsewhere would prove to be highly effective in the hands of experienced village fishermen. 3.07 The pilot fisheries program would be first initiated in a few villages near Kigoma, and would be gradually expanded to other Ujamaa villages as experience is gained. While the fishing methods proposed are simple (several methods may be applicable) and the drying methods are traditional, eombining and managing the elements of catching, processing, transportation and marketing may prove to be complex in the village context. As proposed, this component is intended to have considerable flexibility in regard to fishing techniques, and village organization. It is designed to provide increased opportunities for village fishermen to improve catching methods, organmization and market outlets. Credit would be provided through TRDB to participating village organizations for the purchase of about five standard FAO designed small boats powered by 10 h.p. inboard engines (Annex 2 page 7) and equipped with the necessary nets and other fishing gear. If lift net fishing techniques prove to be successful, TRDB credit could be provided for this fishing method on the basis of satisfactory technical and financial projections. The fish caught would be dried on the shore on covered drying racks financed under the Project, and then transported either by truck (in case of villages nearest Kigoma) or over the lake (para 3.08) to Kigoma. Technical assistance would be provided under the Project (para 3.11) to teach the villagers how to operate and maintain the boats, nets and other fishing gear required. Lake Transport 3.08 As many of the Ujamaa villages along the shores of Lake Tanganyika are not served by any roads because of the precipitous cliffs and extensive mountains and as the roads to many others are extremely poor, the Project would include provision for necessary lake transport facilities to allow the villages to transport dried dagaa to Kigoma if fishing experience proves satisfactory and isolated villages demonstrate the capacity to organize fishing and processing activities and produce dried dagaa in large quantities. The transport facilities would also be used to distribute basic supplies to these villages and would help strengthen the presently inadequate transport facilities.  - 14 - Required investments are envisaged to include two tugs and four barges, which would be owned, operated and maintained by the Kigoma joint venture company (para 3.05). The tugs and barges recommended are identical to those in use by the East African Harbors Corporation in the harbor of Dar es Salaam. The tug is steel about 11 m long, 4 m wide, and 1.1 m deep, with a 240 h.p. diesel engine. The barge is steel about 25 m long, 6 m wide, and 3 m draft. The quantity of dagaa produced per year at full production weighs only about 4,000 tons but the dried dagaa occupies a very large volume for a given weight. No existing lake transport facilities could handle the volume of product anticipated. Barges arie recommended since the volume is great but no cooling or other facilities are required and the barges can be loaded and unloaded by hand. The barge can be brought up to the shoreline without any shore facilities except wooden planks to facilitate loading, and suitable docks are available at Kigoma for unloading. Other types of lake transport would also be considered if further study indicates they would be more suitable. Market Study and Investigation of Chemical Pollution 3.09 Market Study. In view of the value of fish as a source of protein and given Tanzania's vast unexploited fish resources, a two-year market study would be undertaken to assess the market prospects for increased production of both fresh and dried fish. Terms of reference for the study would be prepared by the Ministry of Natural Resources, and the Ministry would ensure coordination of this work with the research work now being carried out by the Food and Nutrition Board and the University of Dar es Salaam. Prior to initiation of the study, the detailed proposals would be submitted to IDA for comment and assurances to this effect were obtained at negotiations. The study would concentrate on an assessment of the market prospects for increased production of dried dagaa from Lake Tanganyika, but it would also include a small component to examine potential catch rates and market pros- pects for haplochromis from Lake Victoria (para 2.09); this part of the study would be designed to provide the necessary data to allow a determina- tion of whether increased commercial fishing of haplochromis from the lake is economically justified. It is anticipated that the study would be jointly implemented by the Food and Nutrition Board, University of Dar es Salaam and the Ministry of Natural Resources. It is expected that the Board would be specifically involved in the collection of nutritional data in the various regions, and that university staff would be responsible for the collection of data on population concentrations, incomes, and market demand for fish. The Ministry would utilize staff at the research institute at Nyegezi (para 2.16) to collect data on catch rates for haplochromis from Lake Victoria. 3.10 Pollution Investigation. An increasing amount of agricultural chemicals is being used on lands bordering Lake Tanganyika, and as the lake has no significant outlet, concern has been voiced that unacceptable levels of these chemicals may begin to accumulate in both the waters and the fish therein; there are in fact several reports that the level of DDT in fish from the lake has been increasing each year. A UNDP/FAO Fisheries Project  - 15 - located in Burundi is looking into this problem and the Bank is following the results of their work closely. DDT does not appear to constitute a human health hazard even at levels far in excess of those reported; however, DDT is known to affect the reproductive cycle of some animals, and it is possible that fish stocks may be affected by excessive DDT levels at some time in the future. Consequently, funds would be provided under the Project for a study to investigate the effects of increasing levels of chemical pollution on the life cycles of fish in Lake Tanganyika. Terms of reference for the study would be prepared by the Ministry of Natural Resources and would be submitted to IDA for comment before award of the research contract. Technical Assistance 3.11 Technical assistance would be provided within both the Ministry of Natural Resources and TAFICO to assist in overall Project planning and coordination, to aid in the establishment of the marine and lake fishing centers, to train Ujamaa fishermen in motorized fishing techniques, and to carry out monitoring and evaluation of Project activities. Specifically, this assistance would provide for the recruitment of about 9 internationally recruited staff. (a) Ministry of Natural Resources (i) A Manager would be recruited to assist in the overall coordination and planning of Project activities, and to oversee Project monitoring and evaluation. (ii) One Fisheries Specialist would be employed to train extension personnel on Lake Tanganyika; funds would be provided for the salaries of extension staff, equipment and supplies for three new mobile fishing units (para 2.14) to assist in this task. The specialist would then train the extension staff and supervise the training of Ujamaa fishermen by these extension staff. (b) TAFICO (i) A Manager would be recruited for TAFICO headquarters to assist in the overall planning and execution of the development of the various fishing centers. (ii) One Master fisherman and one marine engineer would be recruited to assist in developing plans for marine fishing and to give technical support to the three coastal fishing centers. (iii) A master fisherman, a marine engineer and a refrigeration engineer would be recruited to provide technical support for the fishing center and the lake transport facilities to be established on Lake Tanganyika.  - 16 - (iv) An Assistant to the Manager of the Kigoma joint venture company would be recruited to help with the overall planning and coordination of the enterprise. The recruitment of the technical service personnel mentioned in a(i), a(ii), b(i) and b(iv) on terms and conditions acceptable to IDA would be a condition of credit disbursement. Operating Expenses and Working Capital 3.12 The operating costs of technical services staff have been considered as investment costs for the five-year Project period. Fishing centers' working capital would be required to cover two months or approximately 20% of annual operating expenses; the Project costs provide for this working capital. Cash flow deficits resulting from center operations have not been included in Project costs and would be financed by short-term bank overdrafts. Assurances to this effect were obtained during negotiations. C. Project Costs (Annex 6) 3.13 Total Project costs are estimated at Tsh 99.6 million (US$12.4 million), of which Tsh 56.5 million or 57% represents foreign exchange requirements. Total Project costs are detailed below:  - 17 - Local Foreign Total Local Foreign Total Foreign Coastal Fishing Centers ------ Tsh'000 ------- ------- US$'000 ----- Exchange Boats 2,782 2,808 5,590 346 349 695 50 Machinery & Equipment 81 267 348 10 33 43 77 Shore Facilities 421 264 685 52 33 85 39 Working Capital 468 309 777 58 38 96 40 Sub-total 3,752 3,648 7,400 466 453 919 49 Lake Tanganyika Fishing Center Boats 3,920 3,930 7,850 487 488 975 50 Machinery & Equipment 324 1,651 1,975 40 205 245 84 Shore Facilities 1,446 964 2,410 180 120 300 40 Working Capital 388 257 645 48 32 80 40 Sub-total 6,078 6,802 12,880 755 845 1,600 53 Ujamaa Pilot Fisheries Program Boats 6,300 6,200 12,500 783 770 1,553 50 Machinery & Equipment 880 2,070 2,950 109 257 366 70 Working Capital 900 600 1,500 112 74 186 40 Sub-total 8,080 8,870 16,950 1,004 1,101 2,105 52 Lake Transport Tugs, Barges, etc. 357 2,012 2,369 44 250 294 85 Working Capital 192 128 320 24 16 40 40 Sub-total 549 2,140 2,689 68 266 334 80 Market & Pollution Studies 1,930 2,176 4,106 240 270 510 53 Technical Services Staff Salaries 2,376 13,474 15,850 295 1,674 1,969 85 Housing, Vehicles, etc. 1,647 1,398 3,045 205 173 378 46 Sub-total 4,023 14,872 18,895 500 1,847 2,347 79 Total Base Cost 24,412 38,508 62,920 3,033 4,782 7,815 61 Contingencies Physical 2,450 3,860 6,310 304 480 784 61 Price 16,233 14,157 30,390 2,017 1,759 3,776 47 Total Project Cost 43,095 56,525 99,620 5,354 7,021 12,375 57  - 18 - Costs have been estimated at prices prevailing as of December 1975. A physical contingency of 10% has been included. In addition price contingen- cies for imported goods and services have been included using rates of 10% for 1976 and 8% per annum thereasfter; price contingencies on local costs were provided at 20% for 1976, 15% for 1977-79 and 10% for 1980-85. Import taxes and duties on Project goods have! been included but are insignificant. D. Financing 3.14 The financing of Project costs would be shared in the following amounts and proportions: Tsh million US$ million Z IDA 72.4 9.0 72 Government 17.7 2.2 18 Joint Ventures and Ujamaas 9.5 1.2 10 Total 99.6 12.4 100 The proposed IDA credit of US$9.0 million would be on standard terms to Gov- ernment. The credit would finance the foreign exchange costs and 36% of local costs or about 72% of total project costs. The Government, the joint ventures and Ujamaas together would finance 28% of total project costs. All Government and IDA funds, except those for t:he market study and for technical services would be channelled by Government: to TRDB at 4% interest per annum for 20 years with a 4-year grace period on interest and capital repayments (Annex 5, Table 3). Loans from TRDB to the! joint venture companies and Ujamaa villages would represent 85% of the capitaLl costs of the respective investments and would be advanced at 8.5% interest per annum for 10 years including 3 years grace period on interest and capital repayments. The remaining 15% would be contributed by the joint venture companies and Ujamaa villages as equity capital. Funds for the market study and technical services would be adminis- tered by the Ministry of Natural Resources. Assurances on the above arrange- ments and the equity funds to be made available were obtained at negotia- tions. It would be a condition of credit effectiveness that a subsidiary loan agreement between the Government and TRDB, acceptable to IDA, had been executed. E. Procurement 3.15 Contracts for machinery including all marine engines, equipment and vehicles (US$1.7 million) would be awarded after international competitive bidding in accordance with Bank/IDA guidelines. In evaluation of bids, local manufacturers would be allowed a preference margin of 15% or the existing rate of import duties, whichever is lower. Civil works contracts (US$0.5 million) and contracts for building of boats (US$4.8 million) which would be  - 19 - individually small and numerous and therefore unlikely to attract international bids would be awarded in accordance with the Government's normal competitive procedures. Because of the weakness of the private sector and the likely lack of competition in the boat building industry, it is expected that contracts for construction of boats would be negotiated. Negotiated contracts for the construction of boats would be submitted to IDA for approval prior to award of such contracts. For all purchases other than the above, Government pro- curement procedures, which are satisfactory, would apply to individual pur- chases not to exceed US$50,000; orders would be bulked to the maximum extent possible. Draft tender documents for all contracts exceeding US$50,000 would be submitted to IDA for approval before invitations for bids are issued. Assurances were obtained at negotiations that the above procurement procedures would be followed. F. Disbursements (Annex 7) 3.16 Funds from the credit account would be disbursed on the following basis: (a) 80% of each loan approved by TRDB for development of fishing centers and Ujamaa fishing units (US$5.0 million); (b) 100% of the foreign or 75% of total expenditures for technical services, salaries, fees and supporting services (US$3.0 million); Disbursements against (a) would be on the basis of certificates of expenditure indicating that the related investments are only for specific investment plans approved by IDA. This documentation would not be submitted for review, but would be retained by the borrower and made available for inspection by IDA during the course of Project supervision. Disbursements against (b) would be fully documented. In order to expedite Project start-up, provision would be made to disburse retroactively up to US$75,000 for expenditure on technical services, housing and vehicles. Any funds remaining in the credit account following completion of the Project would be used at the discretion of IDA for other Project related activities. G. Accounts and Audit 3.17 TRDB, TAFICO, the joint venture Companies and Ujamaas would maintain separate records and accounts adequate to explain all Project related activi- ties. The joint venture companies would maintain all cost and other informa- tion necessary for proper management control. Assurances on these arrange- ments would be obtained at negotiations. The accounts of TAFICO are audited by the Tanzania Audit Corporation (TAC) which audits the accounts of TRDB and other parastatal organizations. In the past, there have been delays in TAC presenting audited accounts due to a shortage of personnel. Government and TAC, with the assistance of Swedish aid, have made considerable efforts and have successfully overcome this problem. Assurances were obtained at negotiations that the accounts of the joint venture companies would be,  - 20 - and the accounts of TAFICO and TRDB would continue to be audited by inde- pendent auditors acceptable to IDA, and that a certified copy of these accounts and detailed auditors reported thereon would be submitted to IDA within six months following the end of their financial year. H. Project Implementation 3.18 An estimated implementation schedule setting the order of various steps required for Project implemIentation is given in Annex 8. The most critical steps in the implementation of this Project will be recruitment and establishment of technical assistance personnel in Tanzania, the prepara- tion and approval of investment p3lans and the placing of orders for boats. IV. ORGANIZATION AND MANAGEMENT 4.01 The Ministry of Natural Resources would have overall responsibility for all Project activities. In order to assist the Ministry with this task, a coordinating committee would bet established to provide policy guidelines for the Project. Members of the committee would include: the Director of Fisheries of the Ministry of Natural Resources, the General Manager of TAFICO, the specialist Managers to be provided under the Project within TAFICO and the Ministry, the General Manager of TRDB, representatives from the Prime Minister's Office and from the External Finance Division of the Treasury, and the relevant regional development directors. The Director of Fisheries would serve as Project coordinator. It was agreed at negotiations that the establishment of the Project Coordinating Committee would be a condition of credit effectiveness. The fishing centers would each be managed by a joint venture company formed by TAFICO and the relevant District Develop- ment Corporation. The Ujamaa program would be managed by TRDB in conjunction with the regional fisheries extension service, and the lake transport facili- ties would be owned and operated by the joint venture company to be established at Kigoma. The market study would be carried out under the direction of the Ministry of Natural Resources. Tanzania Fisheries Corporation (TAFICO) (Annex 3) 4.02 The Tanzania Fisheries Corporation (para 2.15) was established in March 1974, under the Ministry of Natural Resources and functions as a holding company having the followding service divisions: Planning and Coordi- nation, Finance and Administration, and Purchasing; the service division chiefs are currently assisted by a total staff of about ten persons. The General Manager is responsible to a Board of Directors appointed by the Minister of Natural Resources and the chairman is appointed by the President.  - 21 - TAFICO's resources include funds provided by Parliament either as grants or loans, loans from Government and other sources, and revenues from its operations. TAFICO would supervise Project implementation at each of the fishing centers, for this purpose its staff would be supported by six internationally recruited fisheries specialists (para 3.11). Fishing Centers 4.03 TAFICO and the DDC, where the proposed fishing center is to be located, would form a joint venture company to establish, develop and operate the fishing center. TAFICO would be the majority shareholder, having a 60% equity holding. Each center would be managed by a Tanzanian manager. The center manager with TAFICO assistance would prepare an investment plan for the center. These plans would cover the fishing techniques to be employed and relevant marketing and resource details. Each plan would be forwarded to the coordinating committee for review, approval and submission to TRDB. Assurances were obtained at negotiations that prior to approval by TRDB, all center investment plans would also be submitted to IDA for comment. The fishing vessels at the centers would each have a qualified skipper and mechanic. Assurances were obtained at negotiations that each skipper and mechanic would be suitably qualified (para. 2.15). Ulamaa Villages Fisheries Program 4.04 About 20 Ujamaa villages located along the Tanzanian shore of Lake Tanganyika would participate in the Project Ujamaa fisheries program. It is expected that about 100 fishing units would be established over the five- year development period, although the exact number and their allocation among the participating villages would be determined once the program is underway. As this would be an experimental program utilizing a technology new to the villagers, the program would be phased over the five years to allow for the training of village crews and for an adequate demonstration period during which time the program would also be under technical evaluation and assess- ment. It is believed that once the program is successfully underway, the rate of build-up of the village fleets could be accelerated if this should prove feasible. The rate of build-up of the fleet is expected to be 10 boats in the first year, 20 boats in each of the second, third and fourth years and 30 boats in the fifth year. Selection of participating Ujamaa villages would be the responsibility of TRDB, acting in cooperation with the regional authorities. Each village would be evaluated on the basis of a wide range of factors, including: (a) stage of Ujamaa development achieved by the village and the quality of its management; (b) number of families and average family income; (c) sources of income;  - 22 - (d) financial viability of the Ujamaa village; (e) number of fishermen and number and size of existing fishing craft; (f) fishing techniques employed, estimated size and composition of annual catch; (g) landing and related fisheries facilities; and (h) percentage of catch marketed, where marketed, and transport facilities available. TRDB, together with the particular Ujamaa village, would determine the number of units to be established at each village, the identity of the captains for these boats, crew wages and method of payment, details of the training pro- grams for both the mobile fishing units and the village crews, the recipient of the loan, size of the loan and the expected method of repayment, expected marketing arrangements, etc. ]'rior to approval by TRDB of any loans to specific villages, TRDB would fEorward to IDA for comment the identity and relevant data for each village to be included in the program. Procedures for selection of the participating villages, the number of units to be established and other aspects of the UjamaaL program were discussed with Government at negotiations. This component would be reviewed periodically in view of the difficulties involved and if netcessary, such remaining part of the component and the funds allocated for it could be cancelled. Training 4.05 The training of the mobile fishing units and of the village crews would comprise one of the most important aspects of the entire ujamaa program. An internationally recruited fisheries specialist (para. 3.11) to be employed within the Ministry of Natural Resources would train the local extension staff in the particular fishing techniques required; he would also draw up a program for the training of Ujamaa fishermen and would supervise their training by the mobile units. This specialist would also be responsible for the investi- gation of alternative fishing tiechniques for possible inclusion in the Ujamaa program. Finally, he would liaise with the ongoing fisheries program now being carried out in this area by FAO/UNDP. Details of the training program and of progress in the investigation of alternative fishing techniques would be forwarded to IDA for comment at intervals of not more than 6 months.  - 23 - V. PRODUCTION, MARKETING AND PRODUCER BENEFITS Production 5.01 The Project would result in increased production of shrimp dagaa, table fish and other fish. Total fish production in Tanzania is currently estimated at 165,000 m tons a year, with between 5% and 10% of the total entering commercial markets. Annual incremental Project production would average about 3% of present total production reaching at full development about 21,000 m tons valued at about Tsh 40.0 million (US$5.0 million). The sources of this production would be: Coastal Centers m tons Tsh '000 Shrimp 375 4,500 Table fish 750 3,450 Other fish 1,125 1,125 Lake Tanganyika (Kigoma) Center Dagaa 2,200 3,300 Table fish 1,100 3,850 Other 2,200 3,300 Ujamaa Units Dagaa 13,500 20,250 21,250 39,775 Marketing, Processing and Prices 5.02 Fish purchased from coastal fishing centers would be marketed commercially. The National Cold Chain Organization (NCCO) (para 2.13) would collect fresh fish daily from the landing centers for distribution by truck or rail to the main central markets at Tanga and Dar-es-Salaam. It is expected that only a very small amount of these fish would be exported (less than 1%). The fish from Lake Tanganyika would be marketed by the Kigoma joint venture company through existing channels. The table and other fish landed by the purse seining units (para 3.05) would be iced and placed in a chill room pending freezing or distribution fresh to Kigoma, Tabora, Dodoma and other towns which can easily be reached by rail; a train leaving Kigoma each night for Dar-es-Salaam would be used to carry frozen fish in refrigerated containers. This fish would be marketed by the NCCO. The dagaa caught by these units would be dipped in brine and then spread on drying racks for a period of about two or three days. The racks would be fitted with removable  - 24 - plastic raincovers to permit drying during the rainy season. The dagaa would then be packed in insect-resistant bags and transported by truck or rail to the major consumption and distribution centers. Dagaa from the Ujamaa villages would be collected by the Kigoma joint venture company, transported over the lake on barges (para 3.08) to Kigoma and then handled with the dagaa already there. It is expected that following completion of the market study (para 3.09), TAFICO would play an increasing role in the marketing and distribution of the fish. 5.03 Fish prices are not controlled by Government. Monthly and seasonal price fluctuations are substantial, and prices vary from place to place. The Project incremental fish production is not expected to have any signifi- cant effect on prices since it :is matched by a proportionate increase in population. Based on available information the average current boatside prices for Project production are estimated as below: Type Price Marine Fish (Tsh per kg) Prawns 12.00 Table Fish Grade I 7.00 Grade II 3.00 Other fish 1.00 Lake Fish Table fish 3.50 Other fish 1.50 Dagaa (dry weight, Kigoma) 4.50 These levels are approximately equal to prices in surrounding countries. Dry weight dagaa prices for the Ujamaa component have been assumed at a level of Tsh 3.00/kg (equivalent to Tsh 1.00/kg wet weight). This compares with a current average price of Tsh 4.50 per kilo within Tanzania; the Tsh 1.50 difference covers marketing costs; of the lake transport facilities. Prices at the Ujamaa village level should be revised on a regular basis to ensure they will provide adequate rates of returns to producers, as well as to the lake transport facilities; particular attention would be given to this problem by the proposed market study. Assurances were obtained at negotiations that TAFICO would consult with IDA from time to time on prices paid for dried dagaa by the Kigoma joint venture company to Ujamaa village producers. Producer Benefits 5.04 Financial rates of return were calculated for Project components; these were estimated at 23% for the coastal fishing centers, 26% for the Kigoma fishing center including the lake transport facilities and 21% for the  - 25 - Ujamaa program. In calculating these rates, constant prices estimated at December 1975 levels were used based on current fish prices with the excep- tion of the estimated price paid by the Kigoma joint venture to the Ujamaa villages. The Ujamaa villages participating in the Projecz. would derive cash revenues after allowing for capital replacement of about Tsh 72,000 (US$9,000) per boat per annum at full development; of this total about Tsh 35,000 (US$4,300) would be paid in wages to the crews of the fishing units, leaving a net profit to the Ujamaa of about Tsh 37,000 (US$4,600) per annum. Assuming an average of 500 families and five boats per Ujamaa this net profit would result in an incremental family income of Tsh 370, a 20% increase over the current subsis- tence income of Tsh 400 per person. The Project would provide part time em- ployment for about 700 persons at the fishing centers and the Ujamaa villages. Government Benefits (Annex 9) 5.05 The fishing centers would produce a net surplus by about year 5; this surplus would be subject to tax by Government, and a proportion of the remainder would be made available to TAFICO on the basis of its equity holdings. As a result of the Project it is expected that TAFICO would show a surplus beginning in year 5. This would total some Tsh 15 million (US$1.9 million) by year 10, and would increase substantially thereafter (Annex 3, Table 3). The Project would result in a net cumulative cash surplus to Government of Tsh 11 million (US$1.4 million) by year 8, and Tsh 106 million (US$13.2 million) by year 20. VI. ECONONIC BENEFITS AND JUSTIFICATION 6.01 The major benefit from the Project would be increased production of both fresh and dried fish; this would result in increased fish consumption in many rural areas where nutritional levels are low, as well as the opening up of new urban markets for this low cost, high protein food. Another important benefit would be the development and demonstration of more sophis- ticated fishing techniques at the village level, thus enabling local fisher- man to better exploit an existing but under-utilized resource. The provision of transport facilities on Lake Tanganyika would effectively open up more remote areas of the lake shore to trade, would allow better access by extension and other personnel, and would provide a convenient market channel for village production. Economic Rate of Return and Sensitivity Analysis (Annex 10) 6.02 The overall economic rate of return for the Project over 20 years is estimated at 27%. Individual rates of return were calculated for several Project components; these are estimated at 22% for the coastal centers, 28% for the Kigoma fishing center including lake transport facilities, and 30%  - 26 - for the Ujamaa program. In these calculations, technical services staff were included in the relevant components, except for that element which is intended for future project preparationi. Present boat side fish prices were used in this analysis with the exception of the estimated price paid for Ujamaa production by the Kigoma joint venture; although it is expected that this price would be adjusted over time these adjustments would not adversely affect the Ujamaa village program or the Kigoma Center rates of return (para 5.03). Unskilled labor was shadow priced at Tsh 2,000 per annum, the equivalent of foregone subsistence production; all other labor was costed at the prevailing wage rates, which are assumed to reflect the economic cost of this type of labor. Foreign exchange was shadow priced at a rate of Tsh 10.0 per US$1.00 (as compared with an official rate of Tsh 8.05 per US$1.00) to reflect more accurately the value of foreign exchange to Tanzania. The Project would be relatively insensitive to changes in the basic parameters. A 10X increase in capital costs would reduce the rate of return by about 2%. A 10% increase in operating costs would reduce the rates of return by about 3 percentage points. A 10% decrease in benefits would reduce the rate of return by 6%. A one year delay in obtaining the benefits of the Ujamaa village program would reduce the Project's rale of return to 19% while a delay of two years would reduce it to 16%. Sens:itivity analyses for the individual Project components are shown in Annex 10. 6.03 The major risk associated with the Project would be the ability of Government to recruit and traln sufficient crews in the use of relatively sophisticated and much more capital-intensive fishing techniques, and the ability of the fisheries speciLalist to undertake the training of the mobile extension unit and the Ujamaa units at an early stage in Project development. It is expected, however, that these risks can be minimized by the careful phasing and built-in flexibility of the Project and the provision of inter- nationally recruited technical services staff. VII. RECOMMENDATIONS 7.01 During negotiations, agreement was reached with Government on the following principal points: (a) prior to initiation of the market study and the pollution investigations, detailed proposals would be submitted to IDA for comment (paras. 3.09 and 3.10); (b) prior to approval by TRDB, all investment plans for the fishing centers would be submitted to IDA for comment (para. 4.03); (c) each skipper and mechanic would be suitably qualified (para. 4.03);  - 27 - (d) before approval by TRDB of loans to individual Ujamaa villages, TRDB would forward to IDA for comment details as to: the phasing of the Ujamaa program; the expected size of the loans, the details of the training program for both the mobile fishing units and the Ujamaa units, details of progress in investigations of alternative fishing techniques, the recipient of the loan and the proposed methods of repayments, expected marketing arrangements as well as other relevant data on each of the villages (para 4.04 and 4.05), and (e) TAFICO would consult with IDA from time to time on prices paid for dried dagaa by the Kigoma joint venture company to Ujamaa producers (para. 5.03). 7.02 A condttion of credit disbursement for each component would be that the principal technical service personnel for that component had been recruited on terms and conditions acceptable to IDA (para 3.11). 7.03 Conditions of Credit effectiveness would be (a) the execution of a subsidiary loan agreement acceptable to IDA between Government and TRDB (para. 3.14) and (b) the establishment of the Project Coordinating Committee (para. 4.01). 7.04 Subject to the above assurances and conditions, the proposed Project would be suitable for IDA Credit of US$9.0 million to the Government of Tanzania.   ANNEX 1 Page 1 TANZANIA FISHERIES DEVELOPMENT PROJECT Fisheries Resources 1. The fisheries resources of Tanzania occur along the continental margin of the Western Indian Ocean, in the large inland lakes and in other fresh waters such as swamp and rivers. Because of the great variety of envi- ronments, and the evolutionary history of their formation, the kinds of fish, the method of catching them and the long term prospects for fisheries develop- ment vary greatly depending upon the geographic location considered. Three specific environments are important to the present project, the inshore waters of the Indian Ocean and the territorial waters of Lake Tanganyika and Victoria. Current levels of catch are shown in Table 1. Marine Resources 2. Although much remains to be learned about the inshore waters of the coastal countries of Eastern Africa, the extensive studies of the International Indian Ocean Expedition and the work of many other scientists and scientific organizations provide us with a good overall picture of the probable extent of fisheries resources and their potential for development. 3. Striking seasonal changes occur in the degree to which nutrients accumulated in deeper ocean levels are brought to the surface by winds, a proc- ess called upwelling. Upwelling is associated with all major coastal fisheries, and occurs for a brief period of one or two months during the southern summer all along the shores of Kenya and Tanzania but more markedly in the coastal waters of Kenya and in the northern waters of Tanzania. In the remaining months the waters are among the less productive ones in the Indian Ocean. 4. These patterns of upwelling, enrichment, and evidence of primary pro- ductivity are followed by similar patterns of secondary (Zooplankton) and tertiary (fish) production such that the biomass is apparently greater during the later months of the southern summer, but poor relative to other much richer Indian Ocean areas such as along the Somalia coast or the Arabian peninsula. 5. Our ability to translate measurements of grams of organic carbon per cubic milliliter of ocean water and similar measurements to tons of valuable fish per hour of trawling is unsatisfactory and only indicative estimates of fair, good, or rich areas for fishing result from such measurements. Even so such estimates provide guidelines which strongly suggest that coastal fishing development in Tanzania should proceed cautiously.  ANNEX 1 Page 2 6. Two main groups of zommercial fish occur in the coastal waters, surface associated (pelagic) ind bottom associated (demersal). 7. In the marine waters the present project is concerned only with the capture by trawling of three kinds of demersal species: shrimps, table grade fish, and industrial grade fish. 8. Fishing grounds. The 550-mile coastline of mainland Tanzania is characterized in general by a narrow continental shelf, which drops off sharply after a depth of about: 60 meters. From a trawling standpoint, the total area of about 12,000 km'n of continental shelf is reduced by coral formations to an effective trawlable area estimated at about 1500 km2 (to a depth of 20 meters, where most of the trawling has been done to date). Another 2000 km2 is thought to be available to trawling in depths of 20 to 60 meters. 9. Shrimp. Several species of shrimp occur in Tanzanian waters, the most important are Penaeus indicus the white shrimp, because of its abundance, and Penaeus monodon the tiger shrimp, because of its size and value. Penaeus indicus probably makes up 70 percent of the catch of shrimp, Penaeus monodon 15 percent and various other species the remainder. 10. Shrimp in Tanzania coastal waters are known to be found mainly in shallow waters of less than 20 meters depth. The shrimp normally prefer habitats with estuarine water condition and muddy bottoms. Such habitats are found off river deltas and moui:hs. The rivers, Pangani, Wami, Ruvu, Ndilita, Rufiji, Matandu and a number oif seasonal rivulets are important. 11. The best known grouncls are those off the Rufiji delta (harvested by fishing villages of Ndondutawa, Muhoro, Mchungu, Kikale and South Kisiju), Bagamoyo (Wide and Utonde), Sandaani extending northwards to buyuni, Pangani (Kipumbwi and Mkwaja). Other prawns areas are found in small patches around kilwa, Samanga (Kilwa District) and North of Tanga (Moa). From figures avail- able, Rufiji and Sadaani appear to be the most productive grounds. 12. Marine biologists have estimated the sustainable yield of shrimp from trawl grounds deeper than 6 meters from various data to be roughly 1,300 metric tons per annum (live weight). However, it is known that an additional 250-300 tons of shrimp are caught in water shallower than 6 metres and catch rates are expected to be higher in these waters than in waters deeper than 6 meters. It can be tentatively estimated that total annual sustainable yield of shrimp should be between about 1300 and 1700 tons per annum. 13. Another species, which has not been exploited so far, Penaeus marginutus (Royal Red), is found in deeper waters of about 450 meters along the slopes of the continental shelf, and may be important in future fisheries development. 14. Fish. Table grade fish particularly red snapper and flat fish are the most important table grade fish caught by trawling. In addition, a large number of less valuable species of small sized fish are caught.  ANNEX 1 Page 3 15. Representative of this group are species with colorful common names such as the parrot fish, coal fish, rabbit fish, surgeon fish and smelts. Various small edible sharks and rays are also caught. 16. Little is known of the sustainable yield of these fish and because of the large number of species involved and their rather different life cycles it will be difficult to determine optiumum catch values for any of them except perhaps for the snappers. A development program prepared under FAO auspices concluded that the present marine catch of about 25,000 tons per annum could be doubled by 1980 without serious consequences to the fish population. Lake Tanganyika 17. Lake Tanganyika is reportedly the second deepest lake in the world. The volume of the lake has been estimated to be 19 x 1012 cubic meters. Burundi, Tanzania, Zaire and Zambia share shore line. The territorial boundaries of the lake are not disputed and are accepted as recorded on official maps of the region. The Tanzanian portion of the lake occupies about 13,500 square km or about 41% of the lake's surface. 18. The upper layer of the lake is clear and the penetration of sunlight may extend to 30 meters. There is a marked themocline at about 40 to 70 meters depth below which the water contains no oxygen. The sides of the lake formed by the rift fault are precipitous and there is virtually no marginal shelf. The monsoon winds which blow from June through October induce a generally clockwise flow in the lake and upwelling, which occurs along the Tanzanian shore. The vind-driven currents in the lake along the Tanzanian shore are strong at times. 19. Fish resources. The deep reservoir of organic material in Lake Tanganyika, seasonal upwelling, and a limited habitat for bottom dewelling species form an ideal environment for pelagic fish species. 20. Six species of fish make up most of the pelagic biomass: The "sardines" Stolothrissa Tanganicae and Limnothrissa miodon (local Tanzania names "dagaa" and "lumbo", respectively), the predators Luciolates stappersii ("mikebuka"), Lates microlepis ("nonzi"), Lates angustifrons ("kibizi" or "gombi") and Lates mariae ("sangala"). Dagaa makes up more than 75 percent of the catch in both traditional and industrial fisheries. 21. The UNDP/FAO fisheries project in Tanzania has been conducting acoustic surveys of the lake. Preliminary evidence indicates a standing stock of about 2.5 million tons of fish (all species) of which various estimates suggest that up to one third of the standing stock might be harvested annually. The very large stock size and the relatively high potential off- take result from the enormous reservoir of productivity in the lake combined with deep light penetration, good nutrient mixing in the upper photic zone and short lived prey species which complete their life cycle in about one  ANNEX 1 Page 4 year. Spawning appears to take place throughout the year. Although the larger predator species can probably be affected by large off-takes of their prey species, and direct capture, the magnitudes of the available fish rela- tive to present and contemplated fishery off-takes is so great as to pose no overfishing problems at this time. However large the overall fishery biomass appears to be, the variance of stock size and densities of prey species can be expected to be great. All pelagic stocks of similar species are charater- ized by widely fluctuating abundance curves. In some years vast numbers of fish occur only to be followedc by years of relative scarcity. 22. Fisheries strategy for the lake in the future therefore should be based upon a level of fishing harvest at the lower levels of the abundance curves, lest heavy fishing mortality coincide with heavy natural mortality resulting in a catastrophic failure of the fishery, as has taken place in some oceanic fisheries for sardine, and herrings. 23. The acoustic surveys have revealed that the distribution of fish varies greatly from one survey to the next and no generalization about the geographic distribution of fish are possible on the basis of present informa- tion. Lake Victoria 24. Lake Victoria is the world's second largest lake. Compared to Lake Tanganyika it is shallow having a maximum depth of about 90 meters, but much of the lake is between 40-70 meters deep. The lake is highly productive par- ticularly in the northern part. 25. Fisheries resources. In Lake Victoria the family of fish called cichlids are the most important: and numerous. Two genera of this family Tilapia and Haplochromis predominate. Only a few species of Tilapia are important but over 150 species of Haplochromis have been identified, and a bewildering complexity of differences occur between them in their appearance, distribution, food habits, and so forth. 26. Fishing zones. It will be convenient in the discussions which follow to distinguish three zones primarily based on the depth of water. It should be recognized that the zones reflect fishing characteristics. The first zone is one of shallow water from shore to about 10 meters, the second from about 10 to 20 meters, the third a deeper one beyond 20 meters in depth to about 65 meters, beyond which few fish are caught. The cichlid family occurs in all depth zones and the various species have fairly definite depth distribution preferences. 27. Resources of deep waters. The resources of the deeper waters of the lake have been known to be very great for over two decades. In recent years The East African Freshwater Fisheries Research Organization (EAFFRO) assisted by FAO/UNDP has established by experimental trawling the occurrence of very substantial resources of a number of species of Haplochromis in the  ANNEX 1 Page 5 deeper waters of the lake. Indicative figures of annual sustainable yield are about 200,000 tons. Since Haplochromis is a substantial part of the present commercial catch from shallow waters and any very large quantities landed would disrupt local fresh fish markets, it has been suggested that a large part of the Haplochromis from deeper water be utilized as dried fish or as industrial fish processed as fish meal for livestock feeding. Much of the work of the EAFPRO research group has been oriented toward establish- ing a preliminary data base line on catch from which economic feasibility projections might be made to develop a modern fish meal industry. 28. Shallow water resources. As many as twenty species of fish are caught in the shallow waters by gill net, beach seine, and set lines. The most valued species is Tilapia esculenta which has become scarce in the gill net catches in recent years because of an excess of effort. Table 1 shows the recorded catch by weight and percentage in the inshore waters of Tanzania. 29. Mid-depth resources. Little is known of the abundance of fish in mid-depth ranges. The species composition is similar to the shallow waters but tending to have larger percentage of Haplochromis. Commercial trawling with large mesh trawls has proven that large specimens of Tilapia esculenta occur in this zone. The presence of these fish here and their virtual absence from the gill net fishery suggests that these fish are highly territorial in their behavior. If this is true it suggests that widespread trawling may quickly reduce local populations of cichlids and possibly other sedentary species on an area by area basis. Considerable work remains to be done before the fisheries dynamics of Lake Victoria are understood despite the progress made by the many studies which have been undertaken in the past. Other Fisheries Resources in Tanzania 30. Several large lakes and swamp provide substantial quantities of fresh water fish (see table 1). The NCCO (National Cold Chain Organization) has developed receiving stations, loaned money for nets and equipment, and improved transportation facilities at the more important Lakes. Given the scarcity of managerial resources and what appears to be a limited scope for incremental increases in catch there does not appear to be good grounds for including these waters in the plans for the present project.  ANNEX 1 Table 1 TANZANIA FISHERIES DEVELOPMENT PROJECT :L972 FISHERIES PRODUCTION Freshwater Fisheries Estimated Production Major Waters in metric tons Lake Victoria 40,900 Lake Tanganyika 49,000 Lake Rukwa 6,600 Lake Nyasa 20,900 Nyumba ya Mungu Dam 7,300 Lake Kitangiri 1,800 Sub-total 126,500 Minor Waters Singida Region 200 Arusha Region 1,700 Dodoma Region 600 Iringa Region 50 Morogoro Region 250 Tobora Region 4,200 Others 2,000 Sub-total 9,000 Total Fresh Water Production 135,500 Marine Fisheries Coast Region 8,600 Tanga Region 6,500 Mtwara Region 1,300 Lindi Region 11,200 Sub-total (Fish) 27,600 Crustacea (Whole) 300 Beche de Mer 50 Sea Weeds 50 Sea Shells 700 Total Production (other Marine Products) 1,100 Total Marine Productioni 28,700 TOTAL 164,200 SOURCE: Tanzania Department of Fisheries.  ANNEX 2 Page 1 TANZANIA FISHERIES DEVELOPMENT PROJECT Fishing Technology Equipment and Mode of Operation Indian Ocean Coast 1. Fishing Grounds. The continental shelf off the Tanzanian coast is rather narrow, therefore productive inshore trawlable grounds are generally limited to areas where silt from rivers and freshwater run-off from the land prevents coral growth. The major known coastal trawlgrounds are in the Rufiji river delta and between Bagamoyo and Pangani. Shrimps, as well as fish, are caught on these grounds and past commercial trawling operations have aimed primarily at catching shrimp, using trawlnets specially designed to selectively catch shrimp species rather than fish. However, experience gained in India has demonstrated that the total value of the catch can be doubled by using trawlnets designed to catch both fish and shrimp, and such mixed fishing is recoumended for Tanzania. 2. Boats. In past commercial trawling operations, medium sized (15m and 17m) vessels based in Dar es Salaam have made trips of 25 days, processing the catch on board. This is more expensive than the cost of operating small day boats operating from villages close to the fishing grounds. For such day fishing, the most economical boat is the one which is just powerful enough to tow an effective size of trawl, big enough to carry the catch, and seaworthy enough for the prevailing weather and sea conditions. For fish and shrimp trawling in the narrow belt of coastal grounds off Tanzania, the recommended size of boat is 10 m long powered by an engine of about 45 hp. 3. Engines. The engines should be equipped with a fixed blade properller of a pitch and diameter giving optimum towing pull at trawling speed (2-1/2-3 knots) rather than at free running speed, and absorbing only about 80-90% of rated engine brake hp at continuous output at reduced r.p.m. (for example, 1500 r.p.m.). Distance from the fishing base to the trawling grounds will generally be short and the boats will be towing the net the major part of each fishing day. Therefore, a low propeller r.p.m. (about 400-500) at trawling speed should be specified. This normally requires a reduction gear of about 3:1 ratio. Also, an instrument panel (engine mounted), 3/3" bilge pump with pies and fittings, foundation bolt, zinc anodes for outboard mounting, and a fuel oil sediment bowl (between fuel oil tank and engine) as well as spare parts for approximately 10% of the engine cost should be specified. For every 10 boats a complete extra engine should be purchased as a spare in case of major engine damage. A fuel oil tank of 100 litre capacity should be fitted in each boat. The average ambient temperature and relative humidity, should be provided when ordering the engines.  ANNEX 2 Page 2 4. Hulls. (Appendix 1). A simple and easily built hull for this type of fishing is design VBB (drawing No. 10) in FAO Fisheries Technical Paper No. 134, F11M/T 134, FISHING BOAT DESIGNS: 2 V-BOTTOM BOATS. This design is for a 9m (30ft) boat but can be lengthened by adding an extra frame at the maximum beam section to obtain a tota:L length of 10m. The inboard layout should provide for a deck aft (at least 6ft long) for handling the trawl gear and sorting the catch, and a fish hold with a big hatch and with a hatch cover in sections. 5. Handling the Catch. The catch should be sorted into categories by value, i.e. shrimp tails, high value table fish, and low value small fish, and placed in clean boxes stored in the hold as quickly as possible to avoid spoilage due to exposure to high temperatures. Heads should be removed from the shrimp and big table grade fish gutted. The use of ice for all or at least the most valuable part of the catch is desirable to ensure good quality, but the availability and cost of ice will decide the extent of its use. It is assumed that the lowest value small fish will be sold in and near the landing place while the bulk of the shrimp tails and table fish would be brought iced to Dar es Salaam and Tanga for local marketing and/or export. 6. Trawls. Combination shrimp/fish trawls similar to those commonly used in India (see design drawings with specifications in FAO FR:MISC./69/1: Techniques of Finding and Catching Shrimp in Commercial Fishing, pp. 165, 167) should be suitable for coastal fishing in Tanzania. A boat with an engine rated at 45-50 b.h.p. at maximum continuous output but operated at reduced r.p.m. to give 40 h.p. when trawling could use such a trawl net of about 5Sft (16.8m) headline length with 25 x 50 inch (63 x 126 cm) otter boards weighing 85 to 95 lb (38 to 43 kg), fitted with broad mud skis (see illustra- tion on p. 172 of above mentionied FAO paper) to reduce "plowing"i into soft mud bottom. The nets should be made of polyethylene twine which is cheaper than nylon, keeps cleaner of desbris and gills less small fish. The rope warps should preferably be of polyester (Terylene) or polypropylene which stretch less than nylon. The warps should be marked at 10m intervals and frequently checked for equal lengths to avoid uneven pull on the net which impairs its catching power. Two sets of trawlgear should be delivered with each boat as well as twine and netting for repairs. 7. Mode of Vessel Operation. It is assumed that the boats would leave before sunrise and return at dusk. With 2 to 4 hrs free steaming to and from fishing grounds, 6 one-hour tows can be made to average six hours per day of effctive fishing time. During the best shrimp fishing season the boats should operate 6 days a week. In-so-far as possible, stops for rest and periodic maintenance of boat and engine should fall in the poorer fishing season. Repairs of the trawl nets can normally be made at sea, except for major damage. To avoid loss of trawl gear fouled on obstacles on the sea bottom, a float should be attached to a line of 3 times the fishing depth tied to the codend. The net and other boards can then be pulled backwards from the obstacles and saved. A suitable crew for each boat consists of a skipper, an engine operator/fisherman and 4 deckhetnds. The skipper and engine operator must undergo proper training before being entrusted with their tasks.  ANNEX 2 Page 3 8. Crew Compensation. In all parts of the world it is found necessary to provide an incentive to fishermen to work hard to obtain maximum value catches. The common system is to pay a low fixed salary to all, including the skipper, plus a share of the catch value which should provide about half of the total income for the deckhands and progressively more for the engine operator and skipper. 9. Center Maintenance. Each fishing centre will have an engine workshop and a mechanic who is responsible for routine preventive maintenance, periodic engine overhauls and such repairs as can be effective locally. The boats must be painted with anti fouling bottom paint every six months to minimize damage by marine borers. This can be done easily by beaching at high tide and painting during low tide. 10. Catch and Income Assumptions. With the size and h.P. of boat, type of net (1-1/2" or 1-2/4" codend mesh size depending on grounds and season) and the mode of operation described above, and assuming a minimum of 220 fishing days, the following average annual catch per boat should be about as follows: 12,500 kg shrimp tails sh. 12/kg = Sh. 150,000 10,000 kg high quality fish sh. 7/kg = Sh. 70,000 15,000 kg med. qual. fish (catchfish) sh. 3/kg = Sh. 45,000 37,500 kg low value small fish sh. 1/kg = Sh. 37,500 Gross value of catch Sh. 302,500 Fishery on Lake Tanganyika Fishing Conditions 11. Light attraction at night is used in conjunction with handheld scoopnets ("lusenga"), liftnets operated from catamarans, beach seines, and purse seines. In Tanzania almost the entire present catch is taken by artisanal fishermen using non-powered canoes. Three purse seining units have operated recently on and off from Kigoma, with foreign skippers. These units are of a style used in the Adriatic sea, an out-dated and complex two- boat method of hauling the net. This system has been replaced with one boat purse seining almost everywhere in the world, but even so it gives high catch rates on Lake Tanganyika and a few units have been in operation in all the four countries bordering the Lake. Simpler and more modern purse seining units are recommend for the Project and offer a viable solution to an increased utilization of the off shore resources. These vessels lend themselves easily to use by the local fisherman after training. Since the purse seiners will operate in offshore waters they should not interfere with the traditional fisheries but rather supplement them.  ANNEX 2 Page 4 12. Boats and Equipment. Each fishing unit will consist of one locally built wooden boat of 12m with a maximum beam of about 4m powered by a diesel engine of about 80 hp with power take-off for driving a purse winch; also 5 small, light boats fitted withi two kerosene pressure lamps of at least 2,000 candle power. The purse wincht with two warping heads should be located slightly forward of midships with its axle pointing force and aft. The purse davit should be located on the starboard side abeam of the winch and just forward of midships so that the boat will not tend to turn the properller into the net during pursing and hauling in the net. The winch should give a hauling speed of at least 0.3mn/second at half of rated engine r.p.m. Two hand- powered reels should be located abeam of the warping heads at the port railing for storing the purse wire. The boat should have a flush deck aft, free of obstructions which could tear the net during setting and hauling. All the purse seiners should have an echo sounder (of medium-low cost) and a scale suitable for fish finding the upper 70-100m of the lake water, and located in a safe dry place-to starboard or front-in the wheelhouse. Free deck space should be left at the stern of least 70m between the wheelhouse and transom for stacking the net. 13. The present practice on the two boat purse seiners is to store the fish in boxes on deck. However, the 12m boats proposed for one-boat purse seining are smaller and at least a part of the catch should be stored in a hold, sorted into boxes without using ice. The hold should have a large, low hatch for ease of stowing and unloading the fish boxes. Overhead working lights and navigation lights should be fitted as well as a searchlight. A ventilated space with cots should be arranged in the bow section for the crew to rest during sailing and waiting on the grounds. The boats should be fitted with an over-size engine mounted electric generator, as well as with a small (2kw) diesel-generator set and suitable batteries to provide light when the engine is stopped. 14. The Net. The purse s3einers should be of the general type ordered by FAO for the Lake Tanganyika Fisheries Project, with such modifications as may be needed after experience with the FAO-designed net is gained. The present design is 350m long and 100m deep (stretched) with 12mm stretched mesh size in the bunt and main body of the body of the net, of rather light construction. The bunt is in one end. All netting is of nylon. This net is meant for catching both dagaa and predators in order to maximize the value of the catch. 15. Fishing. The purse seiners will leave port in mid-afternoon towing 5 light boats each. Unless dense concentrations of fish are in a known area, the fleet of purse seiners should fan out in an orderly, prearranged searching pattern. At least one boat should be fitted with a sonar of 1250m range and a radio-telephone so it can inform the other boats of fish schools detected. All boats should carry radio receivers. All should use their echo sounders to detect fish concentrations which are in dense schools in the day time but generally spread out in thin latyers at night. Every effort should be made to locate the light boats over scbLools detected before sunset by echo sounder or sonar, rather than scatter then. at random. With experience, daylight purse  ANNEX 2 Page 5 seining on dense schools detected by the acoustic equipment may well make fishing possible during the day eliminating the time lost during bright moon periods which now force the boats to be idle for several days each month. 16. The light boats should use sea anchors to reduce wind drift when needed (the lake is too deep to anchor). Each of the 5 light boats is manned by one crew member who watches out for signs of fish gathering under the lights, sucn as air bubbles from fish rising towards the light. The remain- ing 15 of a total crew will stay on board the purse seiner for operating the purse seine and sort and stow the catch. Two to four hours after dark the purse seiner begins to contact the light boats to enquire as to apparent quan- tities of fish gathering under the lights. The main boat may also move as silently as possible near the light boats to detect and assess the size of the fish concentrating before making a set. Each set should take about 50 to 60 minutes and 3 to 5 sets will be made when fish are found. 17. Catch assumptions. With a purse seine as described about (3.3) an average catch of 2.5 to 3 tons per night can be expected by each unit, consist- ing of about 40% dagaa, 40% luciolates, and 40% lates. An annual catch of at least 550 tons should result from 220 fishing days. 18. Handling the Catch. Upon landing the catch in Kkgoma in the early morning the dagaa will be dipped in brine for about 10 minutes and then spread on drying racks for sundrying which normally takes two days. The racks will be fitted with a removable plastic raincover to permit drying also during the rainy season. The dagaa will be packed in insect resistant bags. No ice is used on board the boats, but the lates and luciolates will be iced and placed in a chill room pending freezing or distribution fresh to Kigoma, Tabora, Dodoma and other towns which can be easily reached by rail. A train leaves Kigoma each night for Dar es Salaam and will also carry frozen fish in refrigerated containers for marketing by NCCO in Tanzania and for export. Village Fishing Units 19. In recent years the Government has placed particular emphasis on the development of collective and self-help activities by means of Ujaxnaa ("familyhood") village development. At the present time there are about 20 Ujamaa villages in the two regions (Kigoma and Rukwa) along the lake. These villages are small and are in various stages of organization in the Ujamaa sense. The villages which are more than 50 km from Kigoma are particularly poor and depend on fishing for the bulk of their subsistance. Although some differences in fishing technique occur i.e.; between the use of scoop nets, beach seines, traps etc., most fisheries along the lake shore depend on light attraction of fish at night and the use of capture nets. 20. Boats and Equipment. The mission recommends a small inboard boat utilizing an encircling net (lampara, small purse seine, chiromila or similar) to extend the range of village fishermen, open up new inshore grounds where beach seines can not operate, and increase overall catch. It will be necessary  ANNEX 2 Page 6 to provide lake transportation for the dried fish produced by the village fishermen. The boat recommended is a smaller version of the FAO designed V-bottom boat, (Appendix 1) with dimensions of 7.9 m x 2.4 m x 1.1 m and powered by a 10 hp inboard diesel engine. Boats of this design are ideally suited for production by the Moanza boatyard either as finished hulls or in the form of kits for assembly by village carpenters at the lake shore with the assistance of the mobile fishing units. Later when boatyard facilities on Lake Tanganyika are established the boats can be built there. 21. The Mobile Fishing Units. The project will provide technical assist- ance to the GOT Department of Fisheries to train 12 staff of the Department to form 3 mobile fishing units. Each unit will consist of a leading fisher- man, an engine operator, a net specialist and a boat carpenter. These men will master the technical skills necessary to demonstrate and teach villagers how to assemble, operate and rmaintain the small boat, lights and nets required, and operate as extension persOnnel for a variety of fishing techniques and processing improvements. 22. The Fishing Method. Fish similar to the dagaa (i.e. small anchovies and sardines) of Lake Tanganyika are caught all over the tropics in vast numbers primarily for use as tuna bait. Therefore, the techniques of catch- ing these fish have been widely developed and many nets and techniques are possible. The project will recruit someone with extensive experience in small boat tuna bait fishing to train the mobile fishing units. The style of fishing is similar to that described for the larger purse seiners in the previous section but very much simpler. Lights are set out, fish collect around them, the net is set quietly and rapidly in a circle around the light, the bottom of the net is closed and then the net is hauled and the fish collected. The process may be repeated several times in a night. The net recommended may be a small purse seine net using a rope closing line and a hand operated winch similar to those now in use off Northwestern Africa, or a tuna "bait net" similar to the Adriatic "lampara", or the chiromila net now used in other ports of Lake Tanganyika. All these nets are satisfactory although undoubtedly local preference for one or the other will develop. 23. Other Fishing Methods. Catamarans and trimarans 1/ fitted with lift nets have been successfully used by fishermen in the Burundi waters of the lake. Recently, the FAO project at Kigoma has had some success with this fishing method. However, concern has been expressed that because of diffe- rences in currents and winds along the Tanzanian shore these vessels may not be suitable for use in Tanzanian waters during parts of the year. If these difficulties are overcome and if this method proves to be successful this style of fishing or other useful methods now being planned for trials by UNDP/FAO could be included in the pilot fisheries program. 1/ These are formed by joining two or three boat hulls, and in some cases are powered by small outboard motors.  ANNEX 2 Page 7 24. Catch Assumptions. Based on the lower range of present catches by chiromila nets in Zambia a catch of 0.6t of dagaa per fishing night is assumed as the catch of the 7.9m motor boat for the purpose of estimating catch and revenues. 25. Fish Processing. The landed fishing will be dried in the same manner as prescribed for the Kigoma Fishing operation (see para. 18). 26. Transportation. The 7.9 m vessel or other suitable techniques will be introduced first to villages near Kigoma most probably those now being assisted by the Kigoma Rural Development Project (TA-453). The production of dried dagaa is expected to average at least 44 t of dried dagaa per boat per year. The volume of fish produced by the first few boats operating in the Kigoma area can be transported by truck, but as substantial production from additional boats becomes available another means of transporting the fish will be required. Many of the villages along the lake are not served by any roads and the roads to most of the other villages are very poor. In about the latter half of the second year of the project, lighters similar to those used in the harbor of Dar es Salaam and a lighter towing tug will be purchased. As fish volume expands, additional tug and lighters will be acquired. The tug and lighters will be operated by the joint venture company formed by TAFICO and the DDC Kigoma. Pilot Scale Trawling on Lake Victoria 27. Fishing Grounds. Exploratory/experimental trawling in all parts of the Lake by the UNDP/FA0 Lake Victoria Fisheries Research Project, 1968-72, and also by the Freshwater Fisheries Institute in Nyegezi in the Tanzania part of the Lake, has shown that haplochromis makes up about 90% of the catch in trawls of 19-20 mm mesh size in waters 20 m deep and deeper. Studies concluded in 1972 indicate that standing stocks of demersal fish in Lake Victoria total some 680,000 tons, of which about 600,000 tons is haplochromis. In the Tanzanian part of the Lake, an area of about 12,000 square miles (half the total Lake area), it is estimated that about 100,000 t could be harvested annually, mainly haplochromis. Only about 20,000t/year are now caught of this species. In order to provide adequate quantities of haplochromis for use in the marketing study (para. 3.09) three or four 10 m boats will be operated on a contract basis by the Nyegezi Fisheries Research Station. If on the basis of the marketing studies a commercial development of the haplo- chromis resource is feasible the above 10 m boats are the type recommended.  ANNEX 2 Page 8 Facilities in Support of the Project Boat-building Facilities and Capacity 28. Materials. Virtually all fishing craft built in Tanzania are of wood construction. Table 1 gives information on wood suitable for boat build- ing and available in Tanzania: Table 1: Timber for Boat Building Radial Movement Local Scientific Specific at 60-90% Name Name Weight at 12% Moisture Durability Rel. Humidity Muninga Pterocarpus angolensis 0.63 Durable 0.5% (small) Mkora Afzelia quanzensis 0.95 Durable 0.9% (small) Mvule Chrophora (Iroko) excelsia 0.75 Durable 0.5% (small) These hardwoods have a wide demand for furniture making and expensive if bought from sawmills, such as the Tabora Msitu Products Ltd. in Babora. These woods cost about 53-56 shillings per cubic foot in Mwanza, Kigoma and Mbegani. Pit-sawn plaks are available in Kigoma and Mikindani (southern sea coast) from near-by forests at appreciably lower cost, i.e. about 30-40 shillings/ cu. ft., but they must be carefully selected since some are badly sawn or contain sapwood and other faults. Other types of timber might be suitable for boat-building especially after pressure impregnation treatment to improve rot resistance, but tests will have to be made to determine suitability. The Tabora Msitu Products ltd. sawmill in Tabora has a Tanality pressure treatment plant. In the absence of experience with cheaper woods, Muninga remains the main boat building material of choice in Tanzania and boat- building cost estimates in the present Project are based on the cost of that timber. 29. Construction Facilities for Fishing Boats. At present there are four boat-building yards operational in Tanzania capable of building boats of the sizes and types envisaged by this Project i.e. at Pangani, Mbegani and Mikindani on the sea coast, and Mwanza on Lake Victoria. Table 2 provides an estimate of the capacity of existing boatyards to provide vessels for Tanzania fisheries needs.  TANZANIA FISHERIES DEVELOPMENT PROJECT Capacity of Existing Boatyards for building 32-ft and 40-ft Boats Boatyard 1976 1977 1978 1979 1980 1981 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Additionally, all the yards Pangani 3 5 5 5 5 5 can build a number of smaller Mikindani 2 4 5 5 5 5 boats, including 25-28 ft Mbegani 5 5 5 5 5 5 boats for Ujamaa villages Mwanza Order 5 5 5 5 5 book full on Lake Tanganyika, which can also be assembled by Total capacity 10 19 20 20 20 20 village carpeters with initial 50% capacity 5 10 10 10 10 10 guidance X M so P M1  ANNEX 2 Page 10 30. Planned expansion of boatyards. A big boat-building yard has been constructed in Musoma (Lake Victoria) but is not yet staffed. Yards are planned for Bukoba (Lake Victoria) and Kigoma (Lake Tanganyika) but it is not known when or whether they might become operational. Plans have been made for expansion of facilities of the four first-named operational yards and, in due time, for the training of boat-builders and mechanics. Woodworking machinery, mechanical workshop equipment and the relatively small number of skilled boat-builders and mechanics are the main limiting factors for building capacity at present. 31. Small Boats for Lake Tanganyika. All major villages on Lake Tanganyika have one or more persons engaged in building and repair of wooden canoes and "water taxis" (35-41 ft). Taking into account the simple tools utilized and the lack of faci'Lities, the quality of work is fairly good. The 25 foot FAD designed 7.9 m boat could be easily built as a kit and assembled by village carptenters after a 3 to 4 weeks training course and provision of materials, fasteners and hand tools. Such boats could be beached in case of hard on-shore winds, but would normally be kept at moorings off the villages. 32. Larger Vessels. The only existing facilities for construction and maintenance of medium and large size steel boats are the shipyard in Dar es Salaam and the East Africa Harbours Marine Workshop in Kigoma; however, the latter yard is mainly occupied with repairs of the present fleet of lake transport boats. Completed boats can be transported by rail from Dar es Salaam but the maximum size allowable is 15 m x 3.6 m x 2.9 m. 33. Vessel Procurement Guidelines. Two principal factors to adhere to in the procurement of boats are: (i) standardization of engines to ease and ensure spare parts supply as well as training of mechanics and (ii) standardi- zation of hull design wherever possible and series-building methods in each yard, allowing specialization of craftsmen and thus reducing the need for master boat-builders. 34. Twine and Net Making Facilities. There are two netmaking plants in Tanzania and at present they satisfy the demand for most of the countries needs for twine and netting for fishing, as well as for some other uses. The parastatal Tanzania Fishnet In,lustries Ltd. in Dar es Salaam has 17 net making looms (AMITA) suitable for knitting nets of a great range of mesh sizes and twine thicknesses, from 8-10 mn dagaa nets of 210/3 den. nylon twine to large meshed shark nets of 210/60 den. nylon twine, double-knot stretching machine (lengthwise) and one set of pu:Llers for transverse knot stretching. Nylon yarn is imported and twisted in the plant into twines and lines. However, some twine is imported. The pLant has a recently installed melting and extrusion line (Marubeni) for producing polyethylene filaments from granules high-density pe. imported from Japan (Asahi Chemicals "SUNTEC" grade S360) in 25 kg bags. The extruder came with 4 spinarettes with 108 holes each, of different hole sizes, but so far the plant has mainly produced filaments of 380 denier polyethylene which are twisted into twines, lines and ropes of up to 8 mm diameter. No polyethylene netting has been produced to date, and it could not be ascertained whether trawl netting of pe. could be produced in  ANNEX 2 Page 11 the one loom used for knitting sharknets. There is ample space in the plant building for additional looms for making pe. trawl netting which should be single knot. The plant works 3 shifts, 24 hours/day and there are plans for expansion after 2 years to meet future demand. Only a small part of the production is exported. The other netting plant is the Mfwanza Fishnet Manufacturers Ltd., Mwanza, a joint venture with Harata Spinning Co. Ltd., of Japan. The annual production of netting, twine and ropes is 180 t. This plant has 25 looms as well as twine twisting machines, but no pe. production. However, the (Japanese) Director stated that a loom could be added for produc- ing pe. trawl netting. Both plants are well equipped for producing nylon netting for purse seines for Lake Tanganyika.  ANNEX 2 Appendix 1 Page 1 TANZANIA FISHERIES DEVELOPMENT PROJECT V-Bottom Boats 1. The purpose of this Annex is to depict two V-bottom fishing boats that are relatively simple to build and can be utilized in inshore and coastal fisheries in the Project, the two hulls depicted, pages 3 and 4, show the 9.0 m and 7.6 m boats discussed in the text. The V-bottom boats presented will be comparable to round bottom hulls in seakindliness and speed. 2. The simplicity of V-bottom construction with sheet plywood has been demonstrated all over the world by amateur boat builders with little previous experience who, nevertheless, have produced thousands of serviceable boats. The designs are mainly intended for the use of existing small-scale boatbuilding enterprises in developing countries where suitable wood materials are available, but the number of skilled boatbuilders limited. The main features of the designs are: Mi) construction method can be adapted to available local materials. The basic method of construction is such that either plywood or solid wood can be used for planking; (ii) material scantlings are standardized to facilitate supply. As far as possible the number of different dimensions of timber used in the boats has been kept to a minimum, and dimensions correspond to common commercial sizes; (iii) the lines of the boats need not be lofted (drawn up in full size on the floor to obtain the correct shape of frames). The shape of the boat is given by main frames spaced 1.2 m (4 ft) apart and these can easily be drawn in full size from the measurements given in the drawings of the frame dimensions; (iv) the construction procedure and the building jig are the same for all boats. Change from one size of boat to another will not present problems since the basic construction method is the same. Evidently a change from an outboard-powered boat to an inboard-powered one will increase the complexity of construction due to installation requirements of the engine and the stern gear;  ANNEX 2 Appendix 1 Page 2 (v) boards of uniform width are utilized for planking. One of the most time-consuming and difficult jobs for an unskilled boat- builder is planking in the conventional way with planks that are narrower at the ends than in the middle. Each plank has to be sawn and planned to shape resulting in wastate of time and materials. The designs shown in this paper utilize either plywood or planks of equal width, just as they come from the planner: (vi) the designs are adapted for low-powered engines. Unless the boat is to be utilized for trawling, there is no need, from either an economic or technical point of view, to select an engine bigger than that recommended in the general arrange- ment drawqings. There has been a trend toward over-powering of small fishing vessels in many countries which cannot be justified on economic grounds. The designs shown have a sharp forebody and moderate width of transom which will make easily driven with low-powered engines: (vii) the boats can be produced in kits for local assembly. The materials can be planned and cut to size and the main frames and stern timbers prepared in a central workshop to be distributed and assembled in fishing villages with the use of simple hand tools and by unskilled labor. SOURCE: FAO: F11M/T134: V-Bottom Boats, July 1974  0 0.5 1 2 3_m O 1 2 3 4 5 6 7 8 9 lO F,s Shun x~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I I I I I Shown with kW forper Giomet r ,Ater nx.O530 mm (21in) I 2 3 4 5 6 Fuel tonk ,tf __________ ____________ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Longitudwina planked bottorm ____ ___ 3____ MAIN PARTICULARS Length over all 9.00 m (29 ft 6 in) _________ ~~~~~~~~~~~~~ ~ ~~~~~~~~~~~~~~~~~~~Boam aver all 2.75 m (9ft Omin Depth moulded 1.15 m ( 3 t 9.n) Weight empty approx. 2000 kg (4400 lb) Line and net hauler Propulsion : inboord dieel engine 8- 30 Shp recommended power 10-12 Bhp Sieenng positbon eoblscin Steerig P9.o m Inboard powered boat GENERAL ARRANGEMENT Scole Boat No D, Na Design . f VBB-5 | Rome, Novemer VBB5 I OQ la w xL  0 05 .0 2.0 3.0 Mer 0 1 2 3 4 5 6 7 8 9 tCFee W L ~ ~ ~ 4 Shown witPt keel fbr propollr diomewr1 mox 420 mm (16 in) I 2 3 4 5 SECTION AT STATION 3 Fuel tonk Diagonal plonked botap b MAIN PARTICULARS Length over Qll 7.60 m (25 ft 0 in t ES =| 1?-> =Oc Z f < Beaom over all 2.42 m I 6 ft O in) _____ __ ~~~~~~~~~~~~~ ~ ~~~~~~~~~~~~~~~~~~~Depth moulded 1.10o m ( 3 ft ?in) ice x __ _ Weight empty opprox. 1500 kg (3300 lb) I _ __ _ ___ Propulsion inboord diesel engine 5-25 Bhp recrommendeod power 6-8 bhp A 7.60 m Inboard powered boot Seat, for l) GENERAL ARRANGEMENT helmsmen Scale Boot No. Orwg. No. NtV Design 10BB4 Rome, November 1973 VBB-4 I,1 P.> 1x Hwt@  ANNEX 3 Page 1 TANZANIA FISHERIES DEVELOPMENT PROJECT The Tanzaniai Fisheries Corporation (TAFICO) 1. The Tanzania Fisheries Corporation (TAFICO) was established by the Tanzania Fisheries Corporation (Establishment) Order 1974. The Government's objective in establishing TAFICO was to ensure more effective direction and coordination of the commercial development of fisheries and fisheries related industries in Tanzania. Functions 2. The Act indicates that the functions of TAFICO will be as follows: 1) to constitute the national body directing the commercial growth of the fisheries, both marine and freshwater, of Tanzania. 2) to support and encourage the establishment of improvement of all allied or ancillary industries. 3) to sponsor and encourage both national and joint ventures in the improvement and expansion of the country's fishing industry. 4) to formulate or examine proposals for all aspects of commercial fisheries development. 5) to establish priorities for proposed commercially oriented projects and determine the degree, natural and source of assistance which each may receive. 6) to promote the use of modern, proved fishing techniques with a resultant increase in fish production. 7) to promote and improve internal and external marketing and distribution systems. 8) to promote interest and participation of all involved fishery enterprises in improved and hygienic methods of holding and preserving dish and fish-products. 9) to direct all commeicial fisheries development, including boatbuilding, net making and its distribution, and all industries allied with fisheries and act as the coordinating and administrative focus.  ANNEX 3 Page 2 10) to purchase power units, specialized equipment and fishing materials, as it deems necessary, either on its own record or through agencies selected by it. 11) to control the disbursement of such funds as may be made available to it from Government and other sources. 12) to undertake, where necessary, fishing or other operations upon a commercial basis. 13) to undertake, or enter into any agreement calculated to facilitate its functions and activities and to the ultimate good of the fishing industry in particular and the country in general. Operation 3. The Tanzania Fisheries Corporation (TAFICO) will become the focal point of all matters pertaining to the development of commercial fisheries with such exception as these prerogatives still retained by the Division of Fisheries. The deliberations of the Board of Directors of the Corpora- tion will be guided by a Chairman supported by his advisers in Planning and Management, Finance and Administration, Personnel and Procure- ment. 4. This body will direct overall policy and coordination of all its subsidiaries; formulate and examine development programmes, including joint ventures; negotiate bilateral and multilateral agreements and all other pertinent matters. The subsidiaries, in turn, will implement policy decisions; prepare future programming and supervise individual production units. 5. In particular the Corporation will assume the responsibility of meeting the Government boatbuilding and net making programmes. The former it will do through the establishment of the National Boatbuilding Corpora- tion and the latter by a similar body incorporating the two existing factories and their distributor. 6. As far as possible, therefore, the production of fishing vessels and fishing gear will be coordinated in a national policy determined from a single source, TAFICO. In this manner it will be possible to ensure the best flow of boats and nets from local sources to the fishing industry. 7. Fishing operations by subsidiary companies will require assistance and some supervision to operate at their most economic level. TAFICO will provide this. It will furnish the technical operational guidance from a reservoir of consultant and advisory services, share to some extent the administrative liabilities and provide a central purchasing agency. This  ANNEX 3 Page 3 last will involve itself in the necessary procedures not only concerning individual development and their servicing, but also standardizing and stockpiling of equipment. The same service, will also be available to the boatbuilding, net making and other industries allied to fisheries. 8. Handling, processing, distribution and marketing of fish and fish by-products is a major concern of TAFICO. Funds and Resources of TAFICO 9. TAFICO's funds and resources include: (a) sums provided by Parliament either by grants or by loan; (b) loans granted to TAFICO by the Government or any other person; (c) any sum or property which accrues to TAFICO as a result of the performance of its functions; and (d) any monies raised by cess imposed by TAFICO. Reports, Accounts and Audit - 10. The Order which establishes TAFICO requires the Board of Directors to file an annual report on its operations with the Minister of Natural Resources within six months following the end of its financial year. TAFICO is also required by the Order to keep proper books and accounts and to prepare annual balance sheets and income and expenditure accounts which should be audited by the Tanzania Audit Corporation and sent with the audit report of the Minister within six months of the annual audit. The Minister is required to lay the accounts and audit report before the National Assembly as soon as practicable after the receipt thereof.  ANNEX 3 Table 1 TANZANIA FISHERIES DEVELOPMENT PROJECT Tanzania Fisheries Corporation Income Statement For the 11 months ended May 31, 1975 (Tsh'000) Sales 1,598 less: Purchases 112 Materials 98 Commission on sales 26 236 Other Income 1,362 14 less: Expenses Salaries and wages 309 Travel 50 Repairs and maintenance 115 Petrol and oil 158 Office expenses 152 Ice and plastic bags 52 Insurance 115 Fees 12 Other expenses 15 978 Net Income 398 August 11, 1975  ANNEX 3 Table 2 TANZANIA FISHERIES DEVELOPMENT PROJECT Tanzania Fisheries Corporation Balance Sheet As At Max 31, 1975 (Tsh'0OO) Land and Buildings 482 Machinery and tools 24 Furniture and equipment 93 Vehicles 259 Boats 30 Debtors 1,268 Cash 2,395 Total Assets 4,551 less: Creditors 307 Branch a/c 432 739 Net assets represented by: 3,812 Government Grant 3,414 Net Income 398 3,812 August 11, 1975  AhSNEX I Table3 , _w , , 0 Si la 0 D , W _~~~~'0 4 C, OjON 4, 4, N M _ I4 D O ', I, 4 , D N>4 ID0 lii 4, , .I ' , _.Nc~ a 4, a _,> r - SN tI > 4, a 4,4,4 4, a Z, . > ~ ~ ~ ~ ~ N 0' -, N , N 4, W , 4 , , 4, -N W O ~ ~ ~ ~ Na a _0) N,,4 NN_ S Na 5>.. 40. | I 04 _ N Ni O,a-NN O r