Tanzania - Mwanza - Shinyanga Rural Development Project

Document of The World Ba.k FOR OFFICIAL USE ONLY Report No. 1867a-TA STAFF APPRAISAL REPORT TANZANIA MWANZA/SHINYANGA RURAL DEVELOPMENT PROJECT May 1, 1978 Agriculture and Rural Development Department Rural Development Division This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS US$1 Tanzanian Shillings (TSh) 8.3 TSh 1 US$0.12 WEIGHTS AND MEASURES 1 hectare (ha) = 10,000 m = 2.47 acres 1 kilometer (km) 2 0.624 miles 1 sq kilometer (km ) = 0.386 sq miles = 100 ha 1 kilogram (kg) = 2.2046 pounds 1 metric ton (ton) 1,000 kg = 2,204.6 pounds 1 liter 1.057 US quarts 1 kilo calorie (K Cal) 1,000 calories ABBREVIATIONS CCM Chama cha Mapinduzi (the sole political party of Tanzania) DADO District Agricultural Development Officer DDD District Development Director 1)UCDO District Ujamaa and Cooperative Development Officer IDA International Development Association IFAD International Fund for Agricultural Development LC Livestock Development Center N4C National Milling Corporation PCS Project Coordinating Section PMO Prime Minister's Office RADO Regional Agricultural Development Officer RDC Regional Development Committee RDD Regional Development Director REO Regional Evaluation Officer RHC Rural Health Center RPLO Regional Planning Officer TCA Tanzania Cotton Authority TLMC Tanzania Livestock Marketing Company TRDB Tanzania Rural Development Bank UPE Universal Primary Education VIC Veterinary Investigation Center VSHP Village Self-Help Program WUCDO Ward Ujamaa and Cooperative Development Officer  FOR OFFICIAL USE ONLY TANZANIA MWANZA/SHINYANGA RURAL DEVELOPMENT PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. I. BACKGROUND ................................................. 1 The Rural Sector .......... ........ ............................. 1 Government Structure ............................... 3 Previous Bank Group Assistance ............................. 3 II. THE PROJECT AREA ................... ........................ 5 A&. Introduction ......................................... *............. 5 B. Physical Environment . ................................ . 5 C. Population ....................................................... 6 D. Economy . .................................... 6 Table 1: Socio-economic Data and Indicators ............... 9 Table 2: Summary of Average Farm Budget Data ....*.......... 10 III. EXECUTING AGENCIES ..... .. ............................. . 11 A. Regional and District Administration ............ ...... 11 B. Tanzania Rural Development Bank ......... ............. 11 C. Tanzania Cotton Authority ............................. 12 D. Tanzania Livestock Marketing Company .................. 12 Table 3: Estimated Existing Government Staff and Vehicles . 13 IV. THE PROJECT ................................................. 14 A. Background ..................................... ....... 14 B. Brief Description ....... .............................. 14 C. Detailed Features . ............... ..................... 16 Agricultural Development ................. ........ 16 Livestock Development . ............................ 18 Forestry Development ........... .. ........ ................... 19 Land-Use Planning .. ........... ............. s ........ 20 Village Self-Help Program ............................ 20 Road Improvement ........... . . .......... .. ... ..... .. 21 Water Supply .................... 0......................... 21 Project Coordination and Evaluation ........ ........... 22 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.  Table of Contents (Continued) Page No. D. Cost Estimates * *..............*... *................. 23 E. E'inancing o .................................. - 24 F. Procurement . .........................a....... 25 G. Disbursements - . ....... ...* ... ... ... .. * ..... ..... . 25 H. Accounts and Audits ...... . ........ ........ . 26 Table 4: Project Costs by Subcomponent ..-..-.-..... 27 Table 5: Estimated Schedule of Disbursements ............ 28 V. ORGANIZATION AND MANAGEMENT_.. ...... .o... ....... 29 A. Introduction .*.... *......*..*... ........... 29 B. Project Coordination, Monitoring and Evaluation ..... 30 C. Project Implementation.................. 30 Table 6: Incremental Staff and Vehicles Financed by Project . .... ......... ..-...... 36 Table 7: Senior Staff to be Appointed under the Project . 37 VI. PRODUCTION, CONSUMPTION AND MARKETING ............. 38 A. Production .38 B. Consumption ................. ... .- ..... 40 C. Marketable Surplus . .............. *........ . 41 VII. BENEFITS AND JUSTIFICATION .*...... ........... . 42 A. FLnancial Analysis .................. . 42 Financial Return to Participating Farmers 42 B. Targetted Benefits and Beneficiaries .42 C. Economic Analysis ........... *..O .............. . 44 Economic Rate of Return .......... ..... 44 Sensitivity Analysis and Project Risk 45 D. Cost Recovery and Fiscal Impact 45 E. Environmental Impact ............................... 46 Table El: Distribution of Targetted Beneficiaries ........ 49 VII]. AGREEMENTS REACHED AND RECOMMENDATIONS . ............ 50  ANNEX 1: Technical Background, Coefficients and Specifications Table 1: Baseline Yields and Cropping Patterns by Agro-economic Zone Table 2: Principal Features of Agro-economic Zones: Mwanza Table 3: Principal Features of Agro-economic Zones: Shinyanga Table 4: Land Balance Analysis Table 5: Zonal Food Balance Table 6: Farmgate Prices Table 7: Crop Hectare Budgets ANNEX 2: Supporting Tables and Charts T-1 Summary of Distribution of Per Capita Farm Income by Zone, Farm Size and Income Source T-2 Recurrent and Development Budgets T-3 Summary of Incremental Area and Production under Project T-4 Selected Farm Models for Sample Targetted Beneficiaries T-5 Selected Financial Models for Livestock Investment C-i Project and Regional Organization C-2 Project Implementation Schedule ANNEX 3: Selected Documents and Data Available in the Project File. MAPS IBRD 13156 - Administrative Boundaries, Road, Rainfall, Population Density, Agro-economic Zones IBRD 13157 - Proposed Project Actions This report is based on the findings of an IDA appraisal mission to Tanzania in June/July 1977 comprising Messrs. MacLeod, Abraham, Bates, Cernea, Draper, Edgerton, Mercer (IDA); Benham (ADS); and Carr (Consultant); and of a post- appraisal mission in October/November 1977 comprising Messrs. MacLeod, Bates, Edgerton and Carr.   TANZANIA MWANZA/SHINYANGA RURAL DEVELOPMENT PROJECT I. BACKGROUND The Rural Sector 1.01 About 14.5 million, over 90% of Tanzania's total population of 15.3 million, live in rural areas and the overwhelming majority are small- holders. Agriculture is still the dominant sector of the economy, supply- ing some 40% of the total GDP and contributing over 80% of exports, as well as supporting most of the population. With the exception of sisal, both export cash crops (cotton, coffee, cashew and tobacco) and food crops are cultivated on smallholdings. It is estimated that roughly 60% of value added in agriculture is still generated by subsistence production. At 17 persons per km , overall population density is still extremely low, and rough grazing or forested land still accounts for the vast bulk of the land area. However, the better agricultural areas are already cultivated, and in much of the country the infertile lateritic soils, coupled with low and erratic rainfall, sharply limit the potential for intensive cultivation. Long-established bush-fallow systems of cultivation for field crops continue to be widely practised, in most cases based on the hand-held hoe. Such systems are cha- racterized by low productivity of man and land. 1.02 Over the past ten years, performance of the agricultural sector has been disappointing, largely due to the predominance of subsistence production and the ineffectiveness of government technical support services. Both recent and medium term experience indicate low growth overall, with sharp year-to- year fluctuations associated with climatic conditions. Marketed production, after a modest growth period in the 1960s (associated with certain cash crops such as cotton, tea, tobacco and cashew), has been virtually stagnant since the beginning of the 1970s; food crop production has barely kept pace with population growth, and food imports rose to substantial levels in the drought years of 1974 and 1975, in total amounting to some 750,000 tons of grain. Poor agricultural performance has resulted in lower overall economic growth and in loss of foreign exchange earnings. 1.03 Disappointing economic performance in the rural sector cannot, however, be attributed to Government indifference to or neglect of agriculture and rural development. On the contrary, the Government has initiated a wide range of actions during the past decade aimed at improving the well being of the rural poor. In its Arusha Declaration of 1967, it proclaimed rural development as the centerpiece of its development strategy. Its first and second Five-Year Development Plans both emphasized rural development as "the key to the achievement of both the production targets in the Plans and the social goal of spreading development to the mass of the people". 1/ Beginning in 1970 and culminating in 1974, the Government launched a wide ranging pro- gram to resettle the country's rural populations into villages. In 1972, it decentralized government administration to 20 regions and 80 districts in 1/ Tanzania Second Five-Year Plan for Economic and Social Development (1969-1974), Vol. I, p. 4.  -2- order to tailor development programs more closely to the needs of the new vil:Lages. In 1975, it instituted the Village and Ujamaa Villages Act, which laid down the legislative base and procedures for the newly created villages. With the establishment of new villages, the Government set ambitious targets to provide essential social services. Under a Universal Primary Education Program launched in 1974, all children of primary school age were to be attending classes by 1977. A program of rural water supply was initiated in 1972 to provide the entire rural population with an accessible supply of potable water by 1991. An innovative program has also been launched to provide all rural people with access to rudimentary health care. 1.04 The economic and social objectives of villagization were to pro- vide basic servic:es more efficiently and completely and thereby increase rurral productivity and welfare. The political objectives were to instill in the rural populations the principles of self-reliance and a community approach to development. The Arusha Declaration of 1967 and TANU Guidelines of 1971 identified the ujamaa village 1/ as the means to achieve these objectives. However, progress proved slow and by 1974 only 19% of the ruraLl population resided in villages. Consequently, the Government decided to move to the formation of planned villages as an intermediate step toward full. ujamaa status. It shifted emphasis from collective cultivation to "blcck farming" (in which each farmer would cultivate his own plot within an overall block of land allocated to the village) or individual holdings within a village framework. The pace of village formation accelerated dra- matically during 1974, and by the year's end over 9 million, or some 65%, of the rural population were settled in villages, with an average size of 250-300 families. The level of villagization has since remained relatively constant, although relocation of many villages subsequently proved neces- sary to correct for errors in siting or size of villages incurred during the massive 1974 operation. There are presently about 7,700 registered villages, allocated for administrative purposes into 1,828 rural wards. 1.05 The Government has thus made substantial headway during the past decade in laying the foundation for a long-term program of rural development. The underlying strategy and objectives have been clearly articulated. Most of the institutional reforms have been introduced. Programs to meet the socio-economic targets set for the rural populations have been launched. However, for a combination of reasons the rural populations have yet to experience fully the benefits of the Government's overall strategy. External factors, such as the oil crisis of 1973 and severe drought of 1974/75, weighed heavily on the Government's development efforts. Numerous internal problems have contributed even more to the poor performance, including limited numbers of qualified staff, rapid institutional change and ambitious targets well beyond its limited capacity to achieve. Thus, real household incomes in rural areas remained approximately constant from 1969-1975 and still represent only about 40% of average urban incomes. The Government's social programs still affect only a small proportion of the total rural population. Only 36% of the rural population have water supply systems, 44% of eligible children attend primary school, and health coverage remains insufficient in most villages. 1/ "Ujamaa" is a Swahili word meaning familyhood, which conveys the idea of living and working together on extended family principles.  -3- Government Structure 1.06 Under the decentralized political structure, the regions are autho- rized to plan and implement their own development programs, and are allowed a high degree of autonomy in administration. Regional and district plans, in principle, emanate from consultations at village level, and require the approval of Regional and District Development Councils. The Regional Commis- sioner is the political head of the region and holds the rank of cabinet minister. He is a member of the National Assembly and of the National Execu- tive Committee of the Party, Chama cha Mapinduzi (CCM). His counterpart at the district level is the Area Commissioner. All Commissioners are appointed by the President. The regional and district civil services are headed respec- tively by Regional and District Development Directors (RDDs and DDDs), whose senior staff include a Planning and Manpower Management Officer. Both re- gional and district administrations include functional managers responsible for executing the development program in their respective sectors (cf Annex 2, Chart C-1). Technical staff, through their functional managers, are respon- sible to their DDDs and RDDs on all administrative matters and to their parent ministers on all technical matters. Principal responsibility for field activ- ity rests with the district administration, while the regional administration provides general coordination, supervision and advice. All important deci- sions are made by the Regional Development Committee and District Development and Planning Committee, respectively chaired by the Regional Commissioner and Area Commissioner. 1.07 The decentralization of government structures has served to improve communications between the Government and the village, and between the Party cadre and the civil service. Villages, in principle, have more opportunity to participate in the planning and implementation of the development programs which affect their lives. Moreover, the civil service operating at the dis- trict and regional levels has a more integrated approach to rural development than was possible through the central technical ministries. Previous Bank Group Assistance 1.08 Previous Bank Group assistance to the agricultural sector in Tanzania has included IDA credits totalling US$133.3 million and IBRD loans for US$37 million for thirteen agricultural and two rural development projects. Agri- cultural projects comprise one for agricultural credit, three for livestock, two for tobacco and one each for tea, sugar, cashew nuts, maize, fisheries, forestry and cotton. The latter, which operates in Geita and Sengerema districts of Mwanza region, became effective in 1974. The first rural development project for the Kigoma region became effective in 1974, and a second, for the Tabora region in November 1977. 1.09 The Kigoma Rural Development Project illustrates both the ambitious objectives and multiple constraints facing the country's development efforts. The project, amounting to US$13.3 million in total costs, set as its principal objectives: (a) the doubling of the annual per capita incomes of about one- half of the rural population of Kigoma region; and (b) the strengthening of the Government's and parastatals' capacities to provide support services to villages. While the project has experienced mixed progress in attaining  - 4 - these objectives, it has provided numerous lessons for Government's rural development program and for follow-up projects. Physical progress is behind appraisal estimates, as the project continues to experience delays caused by Government's limited implementation capacity and shortages of critical sup- plies and inputs. The agronomic response to the fertilizer recommendations propoDsed under the project remains uncertain for much of the project area and verification trials to be introduced in villages and the Agricultural Trials and Training Centier (ATTC) financed by the project have not yet established satisfactory alternatives. The level of credit recovery for seasonal inputs stands so far at only 35%. Progress has been disappointing on the minor project componentis of feeder roads, fisheries, livestock and tsetse clearance. On the other hand, substantial advances have been made on many other aspects of the project. Some 57 villages (80% of appraisal estimates) have fulfilled the eligibility criteria for project support, as the project has trained and posted the necessary bookkeepers and extension workers and prepared the required land-use planning maps and feasibility reports for each village. The mobilization of village self-help for brick-making and labor supply has been impressive. The system to service the village infrastructure program has been developed and, despite continuing setbacks, has resulted in the const:ruction of an average 5 structures in each of 45 participating villages. The project has contributed significantly to the strengthening of implementing institutions, particularly related to marketing, credit and input delivery, land-use planning and bookkeeping. 1.10 Among the main lessons from the Kigoma project are the crucial need for verification trials of technical packages at village level; for ongoing trainLing; technicaLl assistance and institution building to strengthen limited implementation capacity; fqr integration of project management into existing regional institutions; for modest production targets; and for active village participation and mobilization. The recently approved project in Tabora and the proposed project in Mwanza and Shinyanga regions draw heavily on this experience from the Kigoma project. While project implementation on the Tabora project is on schedule, no substantial investments have yet been made.  - 5 - II. THE PROJECT AREA A. Introduction 2.01 The proposed project encompasses two of the country's twenty adminis- trative regions, Mwanza and Shinyanga, at the southern end gf Lake Victoria, located in northwest Tanzania. The regions cover 70,500 km , or 7.9% of the national territory. They have a population of 2.4 million, some 16% of the national total, of which more than 95% is rural. The two regions contain the following administrative units (Map No. IBRD 13156): Districts Wards Villages Mwanza 6 143 642 Shinyanga 4 111 589 Table I (page 9) tabulates socio-economic indicators for each region, and compares them with the equivalent national statistics. B. Physical Environment 2.02 The regions' elevation varies from 1,000-1,200 meters. The rainfall distribution is bimodal with short rains from October to December followed by a dry period in January to mid-February and long rains from February to May. The rainfall is extremely erratic, however, and the rainfall pattern in any given year is very unpredictable. Rainfall tends gradually to increase across the two regions from less than 700 mm in the southeast, to over 1,300 mm annually in the northwest. 2.03 The topography is generally uniform with gentle undulations and flat to depressed plains interspersed with isolated granitic outcrops. Low vegetative growth covers much of the eastern half of the project area, while woodlands, generally tsetse infested, characterize much of the western area. The associations of soil to topography can be broadly classified in three categories: (a) the range of black cotton soils, usually of impeded drainage and, in many cases, seasonally waterlogged, associated with flat topography; (b) the succession of soils, from the stony soils on the upper slopes through the granitic hillsands to the less permeable sandy-clay loams on the lower slopes, associated with ridged topography; and (c) the combination of loamy sands to dark clay, usually of impeded drainage, associated with undulating topography. Some 12 agro-economic Zones were identified during project preparation on the basis of rainfall, population densities and soil topography associations (see Annex 1, Tables 2 and 3 for further details and Map No. IBRD 13156 for location).  C. Population 2.04 Mwanza and Shinyanga regions constitute an area referred to as Sukumaland, mainly inhabited by the Sukuma tribe. The Sukuma are the de- scendants of Bantu migrants from Central Africa and of Hima pastoralists from the area north of Lake Victoria. After being orginally settled in con- centrated villagtes, the Sukuma gradually shifted to a pattern of scattered setitlements during the German colonial period, in response to a decrease in the incidence of tribal warfare. The introduction of cotton as a cash crop at the beginning of this century prompted an expansion of the cultivated and settled areas. In the Period between the First and Second World Wars, the British colonial government encouraged further expansion with major efforts at land clearing to eliminate tsetse. These efflorts were subsequently assisted by the Sukumaland Development Scheme, which led to large-scale migrations into the western districts during the 1950s. These migrations have continued inI recent years, although at a slower pace. While Sukuma expansion was first associated with cotton cultivation, recent movement has been motivated by the need for more land to cultivate food crops to meet the subsistence needs of the rapidly expanding population. Small population flows continue into the western districts, where soil resources, however, cannot sustain laLrge numbers. 2.05 With an annual population growth rate from 1948-67 of 2.9%, much of Sukumaland has now become one of the most densely populated areas in the country. The population densities in Mwanza and Shinyanga reiions (the latter excluding gazetted forest aLreas) are 68 and 35 persons per km respectively, compared with a national average of 17. The resulting pressures on land are further exacerbated by the large livestock herds - presently estimated at 2.3 million units, or 22% of the national total - traditionally maintained by the Sukuma for security and social reasons. Population pressures vary widely within Sukumaland (see IBRD Map No. 13156), and important internal migrations during the past 20 years have served to alleviate the most serious points of pres- sure. In more recent years, migrations to neighboring regions, including West Lake, Kigoma and Ruvuma, have also increased considerably. Nevertheless, pressures continue to mount in the densely populated Sukuma heartland, and the quality and quantity of cultivable land continues to deteriorate. The concen- tration of the area's population into villages during 1974/75 has also aggra- vated land pressures. As a result, an estimated 35% of the project area's divisions have insufficient land to meet the minimum income, grazing and fallow requirements of their populations (Annex 1, Table 4). Annex 1, Table 5 indicates the estimated food balance calculated in calorie supply and demand by agro-economic Zone. D. Economy 2.06 Approximately 4.6 million ha in the project area are available for iFarming and grazing, of which an estimated 1.1 million ha are presently cultivated and the balance is used for livestock grazing and fallow. The  average size of farm holding throughout the two regions is 6 ha, of which 3.2 ha are cultivated. Considerable variation in the size of average farm hold- ings exists within the project area, ranging from 14 ha in agro-economic Zone X to 2.2 ha in Zone III. Annex 1, Table 1, based on adjusted findings of a survey of farm holdings during the 1975/76 season, indicates average cropping patterns, cropped areas and baseline crop yields by agro-economic zones. Considerable variation in cropping patterns is evident within the project area. Approximately half of the population in the project area own cattle, although the proportion of cattle-owning families varies from a high of 64% in Zones V and VIII to a low of 17% in Zone III. The average herd size numbers 20 head, ranging from 11 in Zone V to 28 in Zone X. The average number of smallstock owned per family is approximately 5, ranging from 1 in Zone VI to 9 in Zone X. 2.07 The rate of economic development of Mwanza and Shinyanga regions from 1966-74 was below the national average. Depending almost exclusively on agriculture or related activities, the annual GDP growth rate at constant prices was 1.5% for Mwanza and 1.1% for Shinyanga, as compared to 2.7% for Tanzania as a whole. The contribution to Gross Domestic Product decreased over the period from 7.7% to 6.2% for Mwanza and 8.9 to 7.0% for Shinyanga. The combined GDP of the two regions was TSh 1,831 million in 1974. The pro- ductive sectors of agriculture, livestock and forestry all face important constraints, brought on by a deteriorating resource base and exacerbated by ineffective government technical services, which have, in turn, contributed to the low levels of economic growth. Detailed technical background, coef- ficients and specifications for each sector are presented in Annex 1. 2.08 The average family size in the two regions is 6.7 persons. Average per capita farm income for the two regions is estimated at US$67 (cf Table 2 Page 10), with crop and livestock production accounting on average for 66% and 34% of the total respectively. Small amounts of non-farm income are also earned, particularly by the smallest farmers who hire out as seasonal laborers to the surrounding large farms. Average annual per capita farm incomes vary from an estimated high in Zone X of US$109 to a low in Zone VI of US$46. It is estimated that about 60% of the rural population of the two regions have per capita farm incomes below the absolute poverty level (estimated at US$73 for rural Tanzania). The proportion of the population in this category varies by agro-economic zone, from a high estimated at close to 100% in Zone VI (the offshore islands), to a low in Zones V and VIII of 28%. The per capita farm income and cultivated area of the average cattle owner in the two regions are US$120 and 6.6 ha respectively. Only 20% of the cattle-owning population have incomes below the national poverty level. 2.09 As in any rural economy, individual farm incomes directly relate to land use. In Tanzania, all land is publicly held, but usufruct rights are vested in the family unit. Since 1975, the Village Councils are empowered to allocate all land within the village boundary. It was expected that, with the establishment of new villages, land would be reallocated more equitably to re- duce the income disparities cited above. However, except whaere village siting has caused displacement requiring compensation, no major land reallocation has  - 8 - occurred within the two regions, except in Geita district. Local policy allows individual families to use the lands they have traditionally held for farmaing and graziing as long as they continue to use them productively and do not infringe on others' rights. Significant income disparities exist within each agro--economic zone as a result of variation in farm size and livestock ownership. Annex 2, Table T-1, indicates per capita farm income by agro-economic zone and farm size. For the project area as a whole, average per capita farm iincome varies from US$22 for farms of 0-1 ha to US$250 for farms above 20 ha. It is estimated that roughly 8% and 2% of all farms fall within these respective categories. Income disparities are most pronounced in Zone X, where the top quarter earns 3 times that of the bottom quarter, and least pronounced in Zones IV and XI, where the top quarter earns only 30% more than the bottom quarter. Income disparities, such as present in Zone X, correlate closely with disparities in livestock ownership. Moreover, larger famiLlies tend to cultivate larger holdings and own more cattle. Thus, the one--third of fami lies (representing 45% of the regions' population) with 4 ha or more of cultivated land average 9.5 family members, own 72% of all cattle and 65% of all li vestock, and farm 69% of all land cultivated.  -9- Table 1: Socio-Economic Data and Indicators National Mwanza Region Shinyanga Region A. DEMOGRAPHIC 1. Total population (million, 1976) 15.3Al 1.34b/ 1.13b/ 2. Population density (pop/sq km, 1976) 17.0 68.0 22.6 c 3. Average family size 5.3 6.5 6.8 d/ 1. Annual population growth rate (X) 2.7 2.94-' 3.0 - 5. Rural population (million, 1976) 14.4 1.23 1.09 6. % of total population (1976) 94.0 92 96 7. Total labor force (million, 1976) 6.5 n.a n.a 8. % in agriculture (1976) 92.0 n.a n.a B. ECONOMIC 1. Gross Domestic Product (US$ millions) 1,966.7-/ 103.7f/ 116.9 f/ 2. Annual growth rate (%) 2.7e0 1.5 1.1 3. Per capita income (US$) 180 /09/ 94.0h/ 128.0 h/ 4. Per capita rural income (US$, 1976) 70.O&/ n.a n.a 5. Rural poverty income level (US$, 1976) 73,.01-/- 6. Total land area (ha '000s) 88 620 01!-/ 1,192.01/ 3,230.0 i- 7. Total cultivable land (ha '000s) 11,1504.O 1,074.0 2,907.0 8. Total land cultivated (ha '000s) 4,400.0K 555.0 598.0 9. Average farm size (ha) n.a 4.57 6,71 10. Total livestock herd size ('009 animal units) n.a 1,100 1,500 11. Total number cattle M00 head)J/ 10,000.0 940 1,300 12. Total grazing land (ha '000s) 39,400.0i 932 2,316 13. Total gazetted forests (ha 'OOOs)!. 13,000.0 130 755 14. Farmers per agricultural extension agent 700.0k- 811 988 15. Cattle per Livestock Development Center ('000) n.a 19 14 C. SOCIAL Water: 1. Rural potable water supply - Z of agglomerated 6 population served 36.0- Health: 1. Life expectancy at birth (years) 47 01/ 481/ 481V 2. Infant mortality rate (per '000 live births, 1973)"-' 152.0 145 145 3. Incidence of bilharzia (% of populationuI/ 1.0 1.0 2.0 4. Incidence of malaria (% of population)m 4.0 3.0 4.0 5. Hospitals_/ per 100,000 population (1976)!iL!/ 0.9 0.5 0.5 6. Rural Health Centers per 100,000 rural population (1976)-"i 1.1 1.3 0.8 7. Dispensaries per 100,000 rural population (1976)2-',-n 13.2 9.9 10.8 Education 1. Average adult literacy rate (%, 1972) 49.0k' n.a a n.a 2. Primary schools per 10,000 population 3.6R./ 5.3i/ 5.8 i/ 3. % of school-age children attending school 43. 46:Oa/ 33.0 j/ Sources: a/ National demographic data from Social Data Service Division, EPD, DPS. b/ Regional demographic estimates made by Preparation Team based on available census data. c/ Density increases to 34.8/km2 if gazetted forest areas excluded. d/ Preparation team: estimated population growth rate 1971-75. e/ EA CPIA data as compiled in Annex 1, p.3 of Report No. P-2143-TA, Sept. 20, 1977; growth rate estimated from 1973-75 performance. f/ Preparation team: Estimated 1974 GDP at factor costs. Official rate of US$1 = TSh 8.3 used for conversion. &/ Country economist h/ Preparation Team: Estimated 1974 per capita income at exchange rate of US$1 = TSh 7.15. if FAO Production Yearbook, XXIX, 1975. 1/ Mission estimates: regional data for items 6-15. k/ Tanzania Basic Economic Report, July 1977. 1/ PAS' Office of Health Affairs. m/ PAS: Office of Health Affairs; reported hospital cases treated 1971. n/ Excluding those under construction. 0/ Excluding special hospitals, e.g., leprosaria, mental hospitals, parastatal TB centers. p/ EAP: Education Division: School attendance shown for children 7-13 years of age. g/ Drawn from sample survey of 917 farm families conducted by Preparation Team.  l/ Table 2: Summary of Average Farm Budget Data Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Average I 11 III IV V VI VII VIII ix X xi XII No. of farms 39,270 29,710 36,880 43,250 7,780 29,750 17,600 10.440 49,200 24 800 22,480 29,630 340,790 (total) Average Family size 6.96 6.88 5.77 7.82 8.16 4.43 6.96 8.16 5.24 6.43 7.82 8.68 6,696 Average cultivated area (ha; 4.118 2.784 1.696 3.665 6.289 1.200 2.068 4.758 2.439 7.680 3.390 4.218 3,368 Average allocated area (ha) 5.50 4.20 2.22 7.50 8.80 1.259 5.50 8.80 3.70 14.00 7.50 5.00 5.539 Ratio cultivated to allocated area 1: 1.34 1: 1.51 1: 1.31 1: 2.05 1: 1.40 1: 1.05 1: 2.66 1: 1.85 1: 1.52 1: 1.82 1: 2.21 1: 1.19 1:1.645 Average cropped area (ha) 21 6.03 3.43 2.03 4.10 11.02 1.67 3.00 6.21 3.13 8.41 3.83 5.53 4.277 Ave. crop income, including cash sales and value of subsistence crops (TSh) 4,110 2,299 1,439 2,715 5,346 1,241 1,760 3,010 1,523 3,369 2,480 3,001 2,477 Ave. total labor requirements bnan-days) 661 471 267 458 997 200 330 576 232 754 426 449 435 Average return to labor (TSh total incme/mday) 6.2 4.9 5.4 5.9 5.4 6.2 5.3 5.2 6.6 4.5 5.8 6.7 5.7 Ave.cash income per capita,from cotton-p / 83 146 91 135 78 37 . 70 85 1q 239 135 9s 114 (Tgh) farhomc fofro crops .ii 46 7. .24 400 .2& .. 96 2452 J.1) 8 62 Total cash inco3 from crops 350 192 98 159 478 139 75 181 9 21 134 103 176 Average total food production (kg) 4,068 2,360 1,523 2,339 5,098 2,011 1,802 2,772 2,084 1,942 1,944 2,244 2,372 Average crop income per capita (TSh) 591 334 249 347 655 280 253 369 291 524 317 346 370 (incl. o_1 sales and subsistence crop value) (US$) 71.2 40.3 30.0 41.8 78.9 33.8 30.5 44.5 35.1 63.1 38.2 41.7 44.6 Average livestock income per capita: 4/ (TSh) 105 153 160 219 190 99 391 294 211 383 217 149 189 (US$) 12.7 18.4 19.3 26.4 22.9 11.9 47.1 35.4 25.4 46.1 26.1 18.0 22.8 Average farm income per capita (TSh) 696 487 409 566 845 379 644 663 502 907 534 495 559 (US$) 83.9 58.7 49.3 68.2 101.8 45.7 77.6 79.9 60.5 109.3 64.3 59.6 67.3 1/ A more detailed explanation is available fromWP C-3, Appendix 1, Table 1. Data are derived from census information and the 1976 Village Sample Survey, adjusted for consistency. 2/ Total cropped area includes the area grown to each crop in both pure and mixed stands, with mixed-stand areas being double-counted. Cropped area thus differs from cultivated area, for which the areas under mixed cropping are not double-counted. 3/ Cash income equals total income minus minimum food requirements (250 kg grain equivalent per capita per year). 4/ Derived from WP C-4, Table 3: figures shown are averages for all households and are derived from census data on livestock and household numbers in each zone.  - 11 - III. EXECUTING AGENCIES A. Regional and District Administration 3.01 Government structures have been decentralized to the regional and district levels since 1972 (cf paras 1.06-1.07). The regional and district administrations of Mwanza and Shinyanga observe the patterns and procedures instituted nationwide. They play a major role in the planning and execution of Government's development program in their respective jurisdictions. They have, however, encountered considerable problems in implementing the devel- opment programs. Annex 1 contains analyses by sector of the development programs and administrative constraints of the government departments. Table 3 (page 13) lists, for each region, the number of staff and vehicles operat- ing under the regional and district administration in the respective sectors. Many staff are inadequately trained and supervised, and most vehicles are old and of limited use. This has resulted in limited implementation capacity at all levels. 3.02 Approximately 10% of the recurrent budgets and 30% of the develop- ment budgets of the two regions are directed specifically toward productive activities (cf Annex 2, Table T-2). Although four times the size of the development budget, the recurrent budget remains insufficient to operate and maintain existing plant and equipment, as a result of Government fiscal constraints. Valuable assets go under-utilized and implementation of the Government's development programming suffers accordingly. About 85% of the recurrent budget is allocated to salaries of staff, who generally lack suffi- cient training, transport, program and supervision to perform effectively. The provision of the training, vehicles and programming necessary to transform existing personnel into effective agents of development is therefore a high priority. B. Tanzania Rural Development Bank (TRDB) 3.03 TRDB was established in 1971 as the successor to the National De- velopment Credit Agency (NDCA). TRDB is a government-owned institution with an authorized capital of TSh 300 million and paid-in capital of TSh 150 million (June 1975). Total net income for the period was TSh 11 million. Roughly 50% of TRDB's medium- and long-term liabilities were IDA loans. TRDB's lending operations include credit for seasonal agricultural inputs, agricultural equipment, rural transport, storage facilities, fisheries and livestock development and small-scale industries. Most lending has been for seasonal inputs (about 70%) to support coffee, tea, cotton and tobacco development. Cooperative societies and unions represented TRDB's most important borrowers until 1974, when villages and companies (mostly District Development Corporations) assumed ever-increasing importance. Lending to cooperatives terminated in 1975 with proclamation of the Village Act which disbanded cooperative societies and unions. TRDB's lending terms include  - 12 - interest rates of 8.5% for short- and medium-term loans generally, and 7.5% - 8.5% for long-term loans with 25% downpayment for term credit. 3.04 TRDB maintains small regional offices in both Mwanza and Shinyanga to appraise loan applications, supervise activities financed and collect paymenLs due for the two entire regions. Together, the two have eight profes- sional staff and two four-wheel drive vehicles. Regional Loan Committees are empowered to sanction uncollateralized loans up to TSh 50,000 and collateralized loans up to TSh 200,000, above which the central office must issue its approval. Total loans disbursed by June 1977 were TSh 26.5 million in Mwanza and TSh 15.5 million in Shinyanga region. TRDB has limited staff and transport for adequate supervision and credit collection. C. Tanzania Cotton Authority (TCA) 3.05 The Tanzania Cotton Authority (TCA), established in 1973, is the parastatal organization responsible for the purchasing, processing and market- ing of all cottoni in Tanzania. In addition, it supports extension personnel, provides seasonal inputs on credit and undertakes crop promotion programs to increase cotton production. Cotton production in Mwanza and Shinyanga regions represents 86% of the national total. TCA has two regional offices to support this production. It administers 17 seed cotton ginneries, 13 oil mills, 14 four-wheel drive vehicles and 148 lorries in the two regions, 486 buying post:s and has adequate storage capacity. TCA employs about 1,500 personnel in the two regions, including approximately 160 cotton extension staff and 516 staff to operate the ginneries and mills. Following the dissolution of the cooperative societies and unions provided for in the 1975 Village Act, TCA has served as the primary marketing parastatal in the two regions. D. Tanzania Livestock Marketing Company (TLMC) 3.06 The Tanzania Livestock Marketing Company (TLMC) was established in 1974 under the Bank-financed Second Livestock Development Project as a subsi- diary of the parastatal organization, the Tanzania Livestock Development Authority. TLMC's purposes are to: (a) organize, develop, maintain and manage livestock markets, holding grounds and stock routes; and (b) provide for and facilitate the movement of livestock from areas of surplus production to the consumer markets. Mwanza and Shinyanga regions accounted for 45% of TLMC's livestock purchases in 1975. TLMC presently operates five markets in Mwanza and 19 markets in Shinyanga region. Average through-put per day of operation is 60 head. It also maintains four holding grounds in Shinyanga region.  Table 3: Estlimated Existing Government Staff and Vehicles MWANZA REGION , SHINYANGA REGION Departments Staff Vehicles- Staff Vehiclesl/ Senior Junior 4WD, LWB Lorries Senior Junior 4WD, LWB Lorries Regional Adminiatration Central Pla7ing/Administration 6 21 n.a n.a n.a n.a n.a n.a Agriculture- 6 6 4 - 3 5 5 Livestock 4 1 1 - 3 3 2 - Natural Resources 6 7 2 2 3 - 6 4 Comworks 3 8 6 13 2 8 5 21 Land Development 1 1 - - 1 - - - Water 30 36 11 25 4 15 5 12 Education n.a n.a n.a n.a n.a n.a n.a n.a Health 1 1 n.a n.a n.a n.a n.a n.a Ujamaa and Cooperatives 4 3 2 - 4 2 1 - District Administrations Central Plai7ing/Administration 16 52 n.a n.a n.a n.a n.a n.a Agriculture._ 7 227 9 5 6 167 3 1 Livestock 7 212 3 4 1 284 2 3 Natural Resources 10 107 2 - 3 130 - - Comworks - 24 - - - 10 Land Development - 6 - - - 10 - Water 4 - 5 - 4 8 2 Education n.a n.a n.a n.a n.a n.a n.a n.a Health 1 114 n.a n.a n.a n.a n.a n.a Ujamaa and Cooperatives 10 129 n.a n.a 11 75 4 2 Note: 4WD = Four-wheel drive; LWB = Long-wheel base. 1/ Vehicle information is highly unreliable: many recorded vehicles are old and non-operational. Vehicles have been indicated at regional level where breakdown between region and districts is unknown. 2/ Excludes Geita and Sengerema districts, which are excluded from the project's agricultural component.  - 14 - IV. THE PROJECT A. Background 4.01 Tanzania has designated rural development as the centerpiece of its overall developm,ent strategy. It aims jointly at increasing small farmer agricultural production and at improving basic social services, such as water supply, education and health. To address these objectives, it has decentral- ized government administration to the level of 20 regions and has also moved the entire rural population into villages (paras 1.03-1.05). The Government has turned to the Bank and other donors for support of its ambitious and innovative rural development program. Bank Group assistance for regional pro jects began wiith the Kigoma Rural Development Project in 1974 (para 1.09), foll]owed with the Tabora Rural Development Project in 1977, and is now pro- posed for the two regions of Mwanza and Shinyanga under the present project. The two regions were selected for priority treatment by the Government because of their relative size (jointly 8% of the nation's area and 16% of the popula- tion) and economic importance(jointly accounting for 86% of the nation's cott;on production and approximately one-quarter of the national cattle herd). The proposed project was prepared from December 1975 to March 1977 by a Preparation Team located in Mwanza town and financed under the Kigoma Rural Development Projetct. The work of the Preparation Team benefitted from the Regional Integrated Development Plans (RIDEPs) prepared under bilateral assistance from the Dutch in Shinyanga (completed in 1975) and the Swedish in Mwanza (completed in 1976). B. Brief Description 4.02 The project as proposed for joint IDA/IFAD financing would consti- tute the first five-year phase of a long-term development program designed to improve the social and economic well-being of the rural population of Mwanza and Shinyanga regions. The program would augment rural incomes by increasing productivity in agriculture, forestry, livestock and small-scale industries; would contribute to social welfare by improving health, education and water supply services; and would strengthen the necessary supporting infrastructure and technical services. Moreover, it would focus on arresting the deteriora- tion of the regions' natural resource base, including soils, forests, vegeta- tive cover and waiter. The program would use the recently constituted villages as the principal vehicle for development. It would mobilize villagers to part:icipate fully in the planning and implementation of the infrastructure and services to be established under the program, thereby transforming the villages into viable socio--economic units. It would concentrate on building up the gov- ernment institutions responsible to implement the development program, thereby helpiing to ensure effective implementation of this project and enhancing their capacity to undertake subsequent phases of the development program.  - 15 - 4.03 The project would implement during an initial five-year period the most immediate actions of the longer-term program and develop the institutions and infrastructure necessary for subsequent development. It would include a number of specific measures to strengthen implementation capacity of regional institutions, and the research capacity of national institutions (para 4.04). It would place emphasis on increased productivity where technical improvements are proven and feasible in agriculture, livestock, forestry and small-scale industries. It would simultaneously initiate steps to safeguard existing resources from further loss of productivity and to lay the foundation for long-term development. Because knowledge of technical improvements appro- priate to the project area is still limited, the project would support meas- ures - including trials, mapping, research, experimentation and pilot activ- ities - designed to establish a broader base for accelerated productivity and sustained development in later years. The project would also accelerate development of the basic infrastructure - including feeder roads, water supply systems, health and educational facilities, transport and processing equipment - needed for the regions' villages. 4.04 The project would finance activities in the following sectors (the proportion of total baseline costs is indicated in parentheses): (a) Agricultural Investments (38%): Agriculture (16%), including the production and distribution of improved planting material, a village verification trials program, crop research, and exten- sion service reorganization; Livestock (9%), including extension service reorganization, range improvement research, and disease control monitoring and research; Forestry (9%), including devel- opment of regional, school, and village plantations, forest assessment and management, and forest research; and Land-use planning (4%), including the mapping and planning of existing and new village settlements; (b) Village Self-Help Program (VSHP) (20%): including the provision of credit for village production projects (about one-third of costs) and of matching grants for a variety of other village projects (two-thirds of costs); (c) Rural Infrastructure (30%): Road improvement (20%), including rehabilitation of regional roads and village access roads; and Water supply (10%), including the construction of shallow wells and improvement of operation and maintenance capabilities; and (d) Project Coordination and Evaluation (12%), including the estab- lishment of regional monitoring and evaluation units; a central evaluation unit for all Bank Group rural development projects in Tanzania; and a Project Special Fund in each region for technical assistance, training and technical innovations. As will be discussed in Section C below, village-level investments in infra- structure and tree plantations would be channeled through the VSHP. This method of financing has been selected to ensure that investments are tailored to the specific needs of individual villages, as well as to encourage maximum mobilization of village resources.  - 16 - 4.05 The regional administrations would be responsible for implementing the project in their respective jurisdictions. The project would encompass all districts in t'he two regions, except for the agriculture and roads com- ponents, which would not extend to Geita and Sengerema districts of Mwanza region, where the IDA-financed Geita Cotton Project adequately covers the requirements of these sectors. The Tanzania Rural Development Bank (TRDB) would serve as the channel for credit under the project. To strengthen the Government's abililty to service villages' development requirements, the project would improve the implementation capacity of participating government services at regional and district levels. The project would focus on train- ing and institution building. Technical staff would be reinforced, upgraded and provided with the necessary transport, equipment, programming and super- visioII to perform their tasks effectively. C. Detailed Features Agricultural Development 4.06 Technical Packages (US$1.0 million). The project would support the widespread dissemination of the few proven technical packages available at preserLt to improve the existing low crop yields in the two regions through: (i) production and distribution of improved seed for maize and sorghum; (ii) the dressing of maize and sorghum seed; and (iii) multiplication of improved cassava varieties. First, the project would provide for maize and sorghum seed from national farms to be multiplied by regional seed farms and local contract growers under close in-field supervision. It would finance vehicles, godowns, seed dressing equipment, two incremental senior Tanzanian staff, an internationally recruited technical specialist, support staff and operating costs. The project would provide the facilities and support the arrangements for seed certification and subsequent transport, cleaning, dressing, storage and redistribution for sale of the seed. At full development, it is esti- mated that approximately one-third of the area presently under pure maize and sorghum production would be planted to improved varieties. Second, the project would support the incremental costs of purchase, distribution and sale of chemical seed dressing for farmers to treat their homegrown seed retained from the previous year's harvest. By year 7, it is expected that 40% of the present total cropped area of maize and sorghum would be sown with dressed seed. Third, the project would promote the widespread distribution of cut- tings of improved cassava varieties by the agricultural extension service which would be strengthened under the project. Five cultivars of cassava would be multiplied at Ukiriguru Research Station and distributed by the agricultural extension services to the cassava growing areas. It is estimated that approximately one-quarter of the area presently planted to cassava would be under improved varieties by year 8. 4.07 Trials (US$0.8 million). To develop a technical base for longer-term development and to remedy the increasing constraints on agricultural production, the project would support an extensive program of village verification trials.  -17 - The project would finance vehicles, equipment, two incremental senior Tanzanian staff, an internationally recruited technical specialist, support staff and operating costs. The village trials program would provide the research institutions with a means to test their findings under actual farming conditions, which differ markedly from the controlled conditions maintained at research stations, and over a much wider area. A program of trials would be drawn up each year jointly by national research and regional agricultural staff. A maximum of six different trials per year would be designed for each agro-economic zone. The trials would be carried out on farmers' fields supervised by field staff of the agricultural extension service and analyzed by national research staff. Presently under-utilized because of the lack of proven innovations, the regional extension staff would provide a pool of trained manpower well suited to implement such a program. The statistical validity of the trials would be assured through the large number of sites rather than multiple replicates on any one site. By Project Year 4, it is expected that 390 field staff in the two regions would each be overseeing 10 trials of 0.1 hectare each. 4.08 Research (US$0.6 million). The project would complement the program of village verification trials with support for selected research activities through: (i) research on root crops, sorghum and millet; (ii) establishment of a research substation, (iii) prefeasibility study on the agricultural development of southeast Shinyanga; and (iv) testing of oxen equipment. First, the project would finance two senior, internationally recruited research officers for root crops and sorghum/millet respectively to work for three years within the national research system. It would also provide for the necessary transport and, in the case of cassava, a multiplication unit. Sec- ond, the project would support the establishment and operation of one substa- tion to the Ukiriguru Agricultural Research Institute in the populated hill- sand zones through the financing of vehicles, land development, buildings, support staff and operating costs. The substation would be located on approx- imately 2 ha of land that has been subject to continuous cultivation for many years. A condition of disbursement against expenditures for civil works and materials for the crop research subcomponent would be the acquisition of a site satisfactory to the Association. The substation would undertake controlled experimental work related to use of fertilizers and new cotton varieties on the depleted hill-sand soils. Third, the project would finance a prefeasibility study of actions needed to counter the serious erosion affecting approximately 200,000 ha of relatively fertile soil in southeast Shinyanga. Because this could not be costed in detail, it would be financed through a Project Special Fund to be set up for use at the discretion of the respective RDDs (cf para 4.18). Fourth, the project would support testing of oxen equipment for seeding and inter-row weeding in those areas where available labor represents the principal constraint to increased productivity. It would finance the costs of an agricultural field assistant and one vehicle. The purchase of equipment to be tested, as yet unspecified, would be financed through the Project Special Fund (para 4.18). 4.09 Extension (US$1.2 million). Central to the project's agricultural component would be the reorganization and revitalization of the regions' agricultural extension service, along the lines of a suitably modified "train- ing and visits" strategy. The project would finance vehicles, equipment, teaching materials, overseas training and travel, two incremental senior Tanzanian staff, two technical specialists, support staff and operating  - 18 - costs. Under the project, the extension staff would be responsible for undertaking the program of village verification trials and for disseminating recommended improved technical packages. These recommendations have been or will be identified by the research program. To enable the extension staff to undertake these important functions, the project would support the following measures: (i) extension staff in the two regions would for the first time take on a meaningful function by disseminating only proven technical packages appropriate to individual agro-economic zones and by supervising verification trials on farmers' plots to obtain information for future appropriate recom- mendations; (ii) the extension staff would be provided a structured work program that laid down the daily responsibilities of each agent over the month and furnished criteria by which his performance could be objectively evaluated; (iii) the extension staff would be subject to intensive supervi- sionl from the ward, district and regional levels; and (iv) the extension staff at all levels would be provided regular in-service training and the necessary transport in order to take on effectively its new functions. The workc program of each field extension staff would be organized to give atten- tioII to the needs of fifteen groups of ten farmers with contiguous plots. A special extens-ion program would be launched on fifteen offshore islands, where rainfall and population densities are the highest and income levels the lowest in the project area. The project would support on the islands the extension of minor improvements for pineapples, citrus fruits and arabica coff'ee through financing the purchase of small amounts of fertilizers and pesticides, development of nurseries, importation of planting materials, provision of technical assistance and initiation of trials. Livestock Development (US$2.0 million) 4.1C The project would aim to improve livestock productivity by strength- ening the extension services of the two regions. It would upgrade, on a pilot basis, 21 of the regions' 60 Livestock Development Centers (LCs) in order to provide improved veterinary services and animal husbandry advice to nearby livestock owners. The project would rehabilitate the physical facilities, furnish necessary equipment, guarantee a regular delivery of veterinary sup- plies and drugs, and train and mobilize attending field staff. The Centers would focus on improving production of village scavenger poultry as well as sheep, goats and cattle. The Centers would attempt to give priority to giv- ing animal husbandry and marketing advice in their outreach work, and to dev- eloping programs for smallstock and poultry. The project would complement upgrading of the LCs with support to supervisory staff at district and re- gional levels through provision of vehicles and consultant advice on program- ming and in-service training. The selected Centers would be located near marketing outlets to help ensure that the anticipated improved productivity would lead to increased offtake of the livestock herd. Each Center's impact on t'he surrounding herd and grazing resources would be closely monitored by the livestock extension staff in coordination with the Project Evaluation Officer in each region. An initial census would be followed by regular monitoring of data on herd composition, seasonality of calving, calving and weaning percentages and mortality and offtake rates. Target coverage for each LC under the pilot program would be 40% of the cattle and 80% of the poultry population by Year 5. This would represent 6% of the total cattle and 11% of  - 19 - the total poultry population of the two regions. If the monitoring system demonstrates attendant improvements in commercial offtake without further deterioration of grazing resources, the pilot program could be greatly ex- panded under a subsequent project. 4.11 The project would establish a range and pasture improvement program in the project area to test new species and their low-cost establishment, to multiply the seed of promising species and to conduct pilot programs on village ranches and communal grazing areas. The project would finance an internationally recruited range improvement specialist, local support staff facilities, equipment and operating costs. The project would also strengthen the staff and facilities of the Veterinary Investigation Center in Mwanza in order to train dip attendants and supervisors, to design and operate a monitor- ing system to evaluate the impact of disease control programs and to study disease control techniques. The project would finance an additional research officer, together with support staff, a vehicle, dormitory renovation, mate- rials and laboratory equipment. Forestry Development (US$2.0 million) 4.12 The project would support ongoing programs for development of approximately 5,400 ha of fuelwood and pole plantations, including: (i) regional plantations; (ii) school tree blocks; and (iii) village tree blocks. The project would finance incremental field staff and vehicles, housing mate- rials, labor, equipment and operating costs. One or two regional plantations, averaging 300 ha in size and located where possible in forest reserves, would be supported in each district to provide a basis for developing plantation capacity, demonstration areas, future seed supply sources and commercial pole/ fuelwood production. School tree blocks of some 2 ha each would be estab- lished to provide participating schools with poles for future building con- struction and fuelwood to cook school meals. Village tree blocks of 2 ha (or multiples of 2 ha) would be identified and financed through the Village Self- Help Program (VSHP) upon village requests and with the village undertaking to maintain and protect the tree crops. The project would support the upgrading of one nursery in each district to provide the seedlings for the plantations' program and for sale to farmers for their private planting. The project would provide for assessment of approximately 700,000 ha of forest reserves and public land forests through simple categorizing and mapping to enable more rational long-term exploitation and management. The assessment would involve reconnaissance survey, photo interpretation and forest-type mapping and follow-up work by a team composed of one forest surveyor, one cartograp- her, one photogrammetrist and one inventory forester. The project would also strengthen the management of forest reserves by providing field accommodation, transport and operating costs, in order to reduce the indiscriminate destruc- tion of the reserves and increase their productivity and revenue-generating potential. The project would establish a small research station under the auspices of the Ministry of Natural Resources Development to establish suit- able species and develop plantation and nursery methods appropriate to the drier eastern areas of the two regions. It would financ^ incremental staff transport, housing, equipment, land development and operating costs. Sup- porting services to implement the forestry program would include in-service training and a publicity campaign.  - 20 - Land-Use Planning (US$0.8 million) 4.13 The project would support establishment of a land-use planning unit in each region consisting of three field teams serviced by a central planning and drafting unit. The project would finance training, vehicles, equipment and operating costs associated-with the two units. Each unit would produce village inventory maps (scale of 1:1000) with simple soil classification and land-use overlay for village planning and management. Such maps could assist a more rational distribution of the village's population, through establishment of satellite settlements, and more efficient exploitation of the village's natural resources. They would precede and support measures to align roads, conserve soils, establish irrigation schemes or install water supply systems. Each unit would subsequently work with interested villagers in the planning and lay-out of any satellite settlements. It would also assist the appropriate technical services in the location and lay-out of any village infrastructure financed under the VSHP. Drawing upon aerial photography, each team would map about 30 villages per year, thus covering approximately one-fourth of the villages in the two regions over the project period. Village Self-Help Program (VSHP) (US$4.4 million) 4.14 The project would provide for establishment of a Village Self-Help Program (VSHP) which would encourage village self-reliance and participatory development by supporting priority development projects of villages in both regions. It would constitute a pilot program in Mwanza and Shinyanga regions, new to Tanzania and of potential significance to other parts of the country. The VSHP would have four primary objectives: (a) to create a mechanism for substantial village participa- tion in the determination of needs and priorities, in project identification, formulation and execution; (b) to establish a means to encourage community action and village resource mobilization by requiring a village contribution (labor, materials and/or cash) as a condi- tion for technical and financial assistance; (c) to provide a meaningful structure for the regional and district: administrations to supply technical and finan- cial assistance as support and incentive to village self-reLiance; (d) to furnish the Government with practical experience in stimulating self-reliance and participatory development which could be applied to other parts of the country. 4.15 The VSHIP would include procedures to permit villages to identify their priority investments and to participate in preparation of the appropri- ate feasibility studies (cf para 5.11). It would require villages to undertake a contractual commitment to provide self-help resources to comple- ment the financial and technical assistance provided under the VSHP. It would  - 21 - support a wide range of projects initiated by villages. Self-financing projects, defined as those which fall within the portfolio of the Tanzania Rural Development Bank (TRDB) would be eligible for term credit from TRDB on its prevailing terms and conditions of lending. These would include projects such as storage and transport facilities, processing equipment and irrigation schemes. Village projects that were not self-financing, such as feeder roads, water supply systems, tree blocks, health dispensaries or classrooms, would be eligible for financing on a matching grant basis from a special regional VSHP subvote. This subvote would finance that part of the project's initial direct costs, including materials, equipment and skilled labor, beyond the means of participating villages to supply. The VSHP would serve to finance village projects supplementary to existing government programs. Villages uninterested in assuming the self-help commitment required by the VSHP could always choose to wait for the regular government program to reach them with its own terms and procedures. It is expected that by the end of the project period over half the villages in the two regions would have been given the opportunity to participate in the VSHP, which would have supported some 600 projects of all types. The project would finance: (i) four economists, three vehicles, offices and equipment for a VSHP Unit in each region (US$0.5 mil- lion); (ii) one additional project officer, three additional credit super- visors, vehicles and motorcycles for each TRDB regional office (US$0.3 mil- lion); (iii) the two regional VSHP subvotes (US$2.7 million); and (iv) a TRDB line of credit (US$0.9 million). Road Improvement (US$4.4 million) 4.16 The project would establish in each region a Village Access Road unit and a Regional Roads Unit. The units would operate in all districts except Geita and Sengerema districts of Mwanza region (para 4.05). The Village Access Roads Units would comprise light equipment to upgrade selected bad stretches of village access roads identified and requested by villages under the VSHP. It would gravel and construct culverts for such stretches in collaboration with village labor provided under the VSHP. Each Village Access Roads Unit would service about 80 villages over a five-year period. Each Regional Roads Unit would improve approximately 10 segments of regional roads identified by regional authorities as most critical to the local eco- nomy (shown on Map IBRD 13157). Each unit would have an estimated capacity for improvement of 80 km per year and would reshape the road base, gravel and install culverts and bridges as required, operating independently of the VSHP. The project would finance the costs of staff, equipment, operation and maintenance of the four units. Staff would include one internationally recruited volunteer and three senior Tanzanians for each Regional Roads Unit and one senior Tanzanian technician for each Village Access Roads Unit. Water Supply (US$2.1 million) 4.17 The project would establish in the Mwanza regional water department three shallow well construction units, drawing upon pipe-well and ring-well construction technologies developed under the Shinyanga Shallow Wells Project assisted by the Dutch Government (Annex 1, para 22). The units would implement  22 - village projects, the requests for which would be formulated under and financed by the VSHP. The combined units would develop an eventual capacity of 200 wells, capable of providing improved water supplies to approximately 30 villages, each year. Shallow wells offer the least cost solution to water supply wherever technically feasible and could serve the needs of roughly 50% of the rural population. The project would finance the vehicles, equipment, staEfing, operation and maintenance of the three units. Senior staff would include three internationally recruited specialists. The project would also provide for the rehabilitation of existing water supply schemes where required and requested by villages in both regions. It would finance the acquisition and installation of equipment and materials needed for each system. It is estimated that about 540 shallow wells would be constructed in Mwanza region, and 36 existing water supply systems rehabilitated in the two regions during the project period. The project would finance vehicle, equipment and operat- ing costs to support the operation and maintenance of shallow wells in Mwanza reg:ion and to bo:Lster the overall operation and maintenance capability in Shinyanga region. Project Coordination and Evaluation 4.18 Project: Coordination (US$2.3 million). The project would establish within the Regional Planning Office of each region a Project Coordinating Section (PCS). Each section would include a Project Coordinator, an interna- tionally recruited Financial Controller, a Monitoring and Evaluation Unit (cf para. 4.19) and support staff. The Project Coordinator would coordinate and monitor the activities of functional managers involved in the project. The Financial Controller would be responsible for project procurement and would manage and control project funds. The project would finance staffing, offices and transport for the two PCSs, storage facilities administered by the PCSs and 24 senior staff houses. A Project Special Fund (US$0.18 million) would be established in each region to be administered directly by the res- pective RDD, to finance the many unforeseen needs that may arise during implementation relating to technical assistance, training and technical innovations. Assurances have been obtained that expenditures from the Project Special Fund in excess of US$10,000 would be made only after consultation with the Association. 4.19 Evaluation (US$0.4 million). The project would establish a Monitor- ing and Evaluation Unit within the Project Coordination Section of each region. Each Unit would consist of a Regional Evaluation Officer (REO), statistical assistant and support staff. The REO would report to the Regional Planning Officer through the Project Coordinator and would be responsible for: (i) coll(ecting, coordinating and analyzing data for monitoring project progress to facilitate management decisions; and (ii) evaluating project impact. The unit would give special attention to monitoring the operation of the VSHP (para 4.14). The project would finance staffing, equipment, operating costs, training and loca:L consultant services for each unit. 4.20 The project would also support establishment of a Central Evaluation Unit, responsible to the Prime Minister's Office (PMO), to coordinate and assist the evaluation activities in all regions for which IDA is financing or is expected to finance rural development projects. The unit would provide the evaluation and monitoring work of each region with methodological support, quality control, aLnalytical assistance and in-service training. The unit  - 23 - would include an agricultural economist, a sociologist/economist, a statis- tician and supporting staff. The project would finance most of the unit's staffing, transport office and consulting costs, the balance to be paid by the Tabora Rural Development Project (Cr. 2043-TA). D. Cost Estimates 4.21 Total project cost, over the five-year implementation period, is estimated at US$30.5 million, of which US$15.4 million (50%) is the estimated foreign exchange component. Total project cost excluding taxes and duties is estimated at US$29.5 million. Baseline costs have been estimated as of November 1977. Project costs are summarized below: Local Foreign Total Local Foreign Total % of % --- TSh millions -- -- US$ millions --- Baseline Foreign Costs Exchange Agricultural Development 12.2 17.8 30.0 1.5 2.1 3.6 16 59 Livestock Development 7.4 8.8 16.2 0.9 1.1 2.0 9 55 Forestry Development 10.8 5.4 16.2 1.3 0.7 2.0 9 33 Land-use Planning 4.6 2.4 7.0 0.5 0.3 0.8 4 35 Village Self-Help Program 17.2 19.3 36.5 2.1 2.3 4.4 20 53 Road Improvement 16.3 20.0 36.3 2.0 2.4 4.4 20 55 Water Supply 7.7 9.6 17.3 0.9 1.2 2.1 9 55 Project Coordi- nation and Evaluation 14.3 8.7 23.0 1.7 1.0 2.7 13 38 Total Baseline Costs 90.5 92.0 182.5 10.9 11.1 22.0 100 50 Contingencies: Physical 7.6 7.5 15.1 0.9 0.9 1.8 8 50 Price 27.7 27.8 55.5 3.3 3.4 6.7 30 50 Sub-total 35.3 35.3 70.6 4.2 4.3 8.5 I 50 Total Project Costs 125.8 127.3 253.1 15.1 15.4 30.5 138 50  - 24 - 4.22 Physical contingencies of 10% have been included on civil works, vehicles and equipment; 15% on materials and vehicle operation and maintenance; and 5% on expatriate staff costs. Price contingencies have been calculated at the following annual rates: (a) equipment and foreign salaries at 7.5% for 1978-79 and at 7% for 1980 on; and (b) civil works at 12% in 1978, 11% in 1979, 10% in 1980, 9% in 1981, and 8% for 1982 on. Local staff costs have been inflated at 5% a year throughout, a level in keeping with Government's policy of wage and salary restraint. Total price contingencies represent 30% of baseline costs. Table 4 (page 27) indicates annual project costs by year and by subcomponent. E. Financing 4.23 The financing of the project costs would be shared in the following amounts and proportions: US$ (millions) % IDA 12.0 39 International Fund for Agricultural Development (IFAD) 12.0 39 Tanzania Government 4.8 16 Villagers 1.7 6 30.5 100 The proposed IDA credit of US$ 12.0 million would be on standard terms to the Government of Tanzania. The proposed IFAD loan of US$12.0 million would be administered by IDA acting as Cooperating Institution under the terms of an agreement between IFAD and IDA which was approved by the IDA Board of Governors on March 31, 1978 (IDA Board of Governors Resolution No. 106), and pursuant to a Loan Agreement between the United Republic of Tanzania and IFAD. The Road Improvement and Waiter Supply components would be financed entirely from the IDA credit, which would cover 100% of the foreign exchange costs (US$5.0 million) and 50% oiE the local currency expenditures (US$2.0 million). The balance of the IDA credit and the IFAD loan would be applied in a 30:70 proportion to all remaining components and would cover 100% of the foreign exchange costs (US$10.4 million) and 59% of the local currency expenditures (US$6.6 million). Overall, 79% of total project costs, excluding taxes and duties, would be externally financed which represents 81% of project costs net of taxes and duties. 4.24 Villagers' cash contributions for village investments made within the context of the VSHP are estimated at US$1.7 million. In addition, vil- lagers would contribute some 280,000 mandays of unskilled labor, valued at approximately US$0.17 million. Assurances have been obtained that villagers would contribute a minimum of 25% of the initial direct costs. Further, assurances have been obtained that villages would be required to contribute towardLs the ongoing operational maintenance costs of each project, as deter- mined for each type of project by the VSHP Board of each region. The VSHP Boards would be authorized to fix the village contribution above these levels  - 25 - depending on the type of project and resources of the individual village. Funds for village credit under the VSHP would be made available by Government to TRDB at 4% annually for 25 years, including 5 years' grace. This arrange- ment would be subject to a subsidiary loan agreement: a condition of dis- bursement against any TRDB sub-loans would be that this agreement shall be in effect. Villages would pay an interest rate of 8.5% for medium and long-term loans, the interest rate prevailing under recent IDA-financed projects. The Government would also ensure through its regular budget that the project- financed roads units were operated and maintained to realize their full economic life. To ensure sufficient project liquidity, it is essential that Government make adequate and timely provision of funds to the project. This would be done on the basis of annual budgets prepared by the Project Coordi- nating Sections in coordination with the Regional Planning Officers, and approved by the Regional Development Committees (RDCs). F. Procurement 4.25 Contracts of US$100,000 or more for purchase of vehicles and equip- ment (US$3.0 million) would be awarded on the basis of international competi- tive bidding (ICB), in accordance with Bank Guidelines. Domestic manufacturers would be granted a preferential margin in bid evaluation equal to the prevail- ing tariff, or 15% of the cif cost of imports, whichever is the lower. Civil works contracts totalling US$100,000 or more (US$1.2 million) would be subject to ICB; in evaluating bids, domestic contractors would be allowed a 7.5% preference. Contracts for the purchase of vehicles, equipment and materials, and the construction of civil works which cannot be bulked in packages of US$100,000 or more would be handled in accordance with existing government procedures which are satisfactory. The aggregate value of such contracts for the purchase of vehicles and equipment would not exceed US$1 million equiva- lent. Most contracts for building construction (US$5.7 million), which would generally be small, of varied design and geographically scattered, would be constructed by a combination of local competitive bidding, force account and self-help. Because of the long delays in procurement of vehicles and equip- ment, steps have already been initiated for procurement of items required during the first year to ensure delivery shortly after the start of project implementation. Each Project Coordinating Section would be responsible for coordinating procurement of items financed under the project. Appropriate staffing and storage facilities would be provided for this purpose. Orders of the two regions would be bulked where practicable. The procurement officer located in Dar-es-Salaam and financed under the Kigoma Rural Development Project (Cr. 508-TA) would be used to expedite purchase and delivery of equip- ment and material required by this project. Assurances have been obtained that the procurement procedures outlined above would be followed. G. Disbursements 4.26 IDA funds and IFAD funds with respect to its components would be disbursed according to the following percentages and amounts:  - 26 - (a) 100% of foreign expenditure and 85% of local expenditures for vehicles and equipment (US$3.0 million); (b) 75% of total expenditure for operation and maintenance of vehicles and equipment (US$4.1 million); (c) 100% of foreign expenditures and 75% of local expenditures for technical assistance, staffing and training (US$5.7 million); (d) 100% of foreign expenditures and 75% of local expenditures for civil works and materials (US$5.7 million); and (e) 100% of amount disbursed for TRDB sub-loans under VSHP (US$0.7 million). An amount of US$4.8 million would be unallocated. Disbursement against category (a) and foreign expenditures under categories (c) and (d) would be fully documented. Disbursements for expenditures under categories (b) and (e), and for local expenditures under categories (c) and (d) would be made against a certificate of expenditure, the documentation of which would not be submitted for review but would be retained by the PCS and made available for inspection by IDA during project supervision missions. Table 5 (page 28) ind:Lcates estimated disbursements by fiscal year. H. Accounts and Audits 4.27 All project funds except for term credit would be channelled from the Ministry of Finance and Planning to the Regional Development Budget in each region, where they would be administered for the Regional Planning Office by each Project Coordinating Section. Each Project Financial Controller would maintain separate accounts of project funds allocated to his region and would make annual alloc:ations as necessary to the regional functional managers and District Development Directors (DDDs). Because the vehicle capital and recur- rent costs represent such an important part of total project costs (20%), special accounting would be instituted to ensure the proper operation and maintenance of all project vehicles. Assurances to this effect have been obtained. Funds to support project activities administered by the central ministries or parastatal organizations would be channelled through the appro- priate Regional Development Budget and handled in separate agency accounts. Project funds designated for term credit would be directly allocated to and administered by TRDB, which would maintain separate accounts for sub-loans under the project. 4.28 Accounts of project funds would be audited by independent auditors acceptable to IDA, and the accounts and auditors' reports would be submitted to IDA within six months of the close of each financial year. Accounts of funds allocated to villages under the project would be maintained by officers of the appropriate cooperative and audited by Ujamaa and Coopera- tive Development staff.  Table. 4: Proj1etCot b ubonooel (TSh6 000) M .an.a Region Shinyago Region National Institotton. Grad Total SnAoj ..s oetsF1 By2 P3 PT4 TS Total PT I Py 2 PT 7 PT 4 PT S Total BY 1 PT 2 PT 3 PT 4 PT 5 Total TSh0050 080'000 AgeLcoltoral DeveloPment Technicol package development 71.2 922.1 570.0 745.2 541.2 2849.7 169.1 1653.8 1452.7 1487.2 1159.1 5921.9 8 771.6 1056.8 Villa.ge trials verification 350.8 1135.0 704.4 562.4 532.4 3285.0 280.9 839.3 698.9 844.8 524.3 3194.2 - ---- 6479.2 780.6 Crop researh - - - - - - - - - - - - 314.4 1931.5 992.5 822.3 677.0 4737.7 4737.7 570.8 Eotansion serice coorgani- ra tion - 2473.1 1177.1 963.9 814.6 5428.7 - 1963.5 1039.0 878.8 7L19.5 4599.8 - - - - - - 10028.3 1208.3 lob-total 422.0 4530.2 2451.5 7271.5 1888.2 11563.4 436.0 4456.6 3199.6 3210.8 2401.9 13713.9 314.4 1931.5 992.5 922.3 677.0 4737.7 30017.0 5616.5 Livetock Development Entensoo serice stcengthesing 84.9 7062.3 1223.1 871.1 974.0 5216.3 84.9 2382.3 2478.3 1665.5 1331.3 7942.3 - - - - - - 13158.6 1585.4 Range itepovnet - - - - - - - - - - - - 10.6 855.9 479.7 457.6 457.6 2261.4 2261.4 272.5 Voterin...y center rapport -- _- _- ___- - _- _- - - ---- - i3.4 323.7 042.7 142.7 242.7 757.2 737.2 91.7 Sub-total 84.9 2062.3 1223.1 971.1 974.9 5216.3 84.9 2382.3 2-478.3 1665.5 1331.3 7942.3 24.0 1171.6 622.4 600.5 600.3 3018.6 16177.2 1949.1 Forstry Develpmet Forest plisnistlo devlop- nent 960.5 1745.9 1307.9 1613.2 1718.0 7345.5 825.0 1551.8 1131.0 1530.1 1593.5 6671.4 - - - - - - 14016.9 1688.8 Forest .assessment and management - - - - -- - - - - - - 206.0 86.0 32- 28- - 292.0 292.0 35.2 Forest research - - - - - - - - - -- - 3704 612.4 323 285 270.9 1854.5 1854.5 223.4 Sub-total 960.5 174-5.9 1307.9 1613.2 1718.0 7345.5 825.0 1551.8 1171.0 1530.1 1593.5 6671.4 576.4 698.4 302.3 298.5 270.9 2146.5 16163.4 1947.4 Road Inecvemnt Regional roads improvmet 81.6 6635.1 2554.1 2554.1 2554.1 14379.0 81.6 7760.1 2554.1 2554.1 2554.1 15504.0 - - - - - - 29883.0 3690.4 Village access road improvonet 28.7 1492.0 554,6 554.6 554.6 3184.5 28.7 1492.0 554.6 554.6 554.6 3184.5 -- ---- 6369.0 767.3 Sub-total 110.3 8127.1 3108.7 3108.7 3109.7 17565.5 110.3 9252.1 3108.7 51108.7 51-08.7 18688.5 -36-252.0 4367.7 Water barbl Shalln welInI osruto 82.2 5011.0 3469.2 3463.1 3399.9 15425.4 - - - - - - -- ---- 15425.4 1858.5 Systems operation and maintenance ~ ~ ~~~~~- - 251.1 187.1 233.3 671.5 - 578.0 240.0 240.0 240.0 1298.0 - -- --- 1969.5 237.3 Sub-total 82.2 5011.0 3720.3 3650.2 3633.2 16096.9 578.0 240.0 349.0 240.0 1298.0 1349 29. Village napping and planning 136.8 1387.4 722.4 731.6 731.6 3799.8 121.3 1249.4 614.4 623.6 613.6 3212.35 7012.3 846.9 Village Self-HeIr PLroga VlSHpAdnimintrative Unit 246.6 954.7 359.7 319.7 319.7 2200.4 246.6 954.7 359.7 319.7 319.7 2200.4 ------ 4400.8 538.2 VSNP suboote 38.2 1613.7 2680.8 3892.3 4529.0 12753.9 38.1 1626.4 2163.4 2793.9 2980.8 9602.6 ----- 22356.5 2693.6 TEDS regional office 13.2 415.6 218.8 218.8 218.8 1085.2 13.2 397.6 210.8 210.8 210.8 1043.2 - -- -- 2128.4 256.4 TSDB line of -rdit 140.0 910.0 1030.0 1070.0 1100.0 4250.0 20.0 490.0 730.0 1540.0 1050.0 3230.0 ------ 7580.0 815.5 Sob-total 438.0 3894.0 4289.5 5500.7 6167.5 20289.5 317.9 3469.7 3463.9 4264.4 4561.3 16176.2 36465.7 4393.5 Prjet Coordination and Ev-i-tin Pro.ject Co-ciintion Secti-n 684.2 4503.1 1643.3 743.5 743.5 8317.8 084.2 4303 1 1643.5 743.3 743.5 9317.8- - --- 16635.6 2004.3 Project Special PunS 185.0 345.0 445.0 260.0 260.0 1495.0 185.0 345 0 445.0 260.0 260.3 1495.0- -- -- 2990.0 360.2 Centrol/regina .. valE-. Unit, 63.9 245.1 -191.1 191.1 191.1 882.3 63.5 245 1 191.1 191.1 191.1 882.3 29.7. 558.9 3518 51.8 301 .8 nj 13j93.4 5359.1 404.6 - Sub-total 9~~~~~33.1 593.2 27279.6 1-19-4.6 11594.6 10-6-95.1 9331 509 32 2279.6 1146 1194.6 10655.1 79.1 558.9 3151.8 301.8 301.0 T593Z 22985,7 2769.1 TOTAl. BASELINE COSTS 3187.8 31581.2 09232.8 18961.6 19436.7 92370.0 2840.7 28032,1 16346.5 15927.7 13044.9 78399.9 993.9 4360.4 2269.0 2423.9 1850.0 11,496.2 182466.2 21983.9 P1hyoiol co.ntingencies 161.1 2832.6 1541.0 1541.9 1590.3 7666.9 144.0 2493,0 1332.5 1295.2 1225.9 6495.6 50.2 587.8 182.8 1a44.5 151.3 536.4 15090.1 1819.2 Price contingencies 277.3 6660.3 5547.4 7061.1 8976.1 28522.2 247.8 5861.1 4797.0 3931.1 694M8.0 23785.0 86.4 912.1 657.9 -753. 2 8i54.L. 3364.3 55571.2 6695.3 Sob-total 438.4 5492.5 7089.4 8605.0 1054i.4 36189.1 29-1.8 0-354, 1 6-129.5 -7226.3 81701.9 30280.6 136.6 1299.9 840.7 917.7 1005.7, 4200.4 70670.3 8514.5 TOTAL NEGlxECT CosTS 3636.2 41344.0 262321.2 27364.6 30033.2 228759.1 3240.3 36306.2 23676.0 23234.2 23223.8 208680.5 5230.5 5660.3 2100.7 2940.4 2855,7 15696.3 253136.5 30498.4 a! R,elijre cets have been estimated as of Noveber 1977. Noie: py I = Project Teat 1 July 1, 1978 to June 30, 1979.  - 28 - Table 5: Estimated Schedule of Disbursements-/ (US$'000 equivalent) IDA Fiscal Year IDA Credit IFAD Loan (Quarter Estimated Cumulative Balance Estimated Cumulative Balance Ending) Disbursement Disbursement of Credit Disbursement Disbursement of Loan 1978/79 Septembetr - - 12,000 - - 12,000 December - - 12,000 - - 12,000 March - 12,000 - - 12,000 June - - 12,000 - - 12,000 1979/80 Septembe!r 'iO 50 11,950 50 50 11,950 December 50 100 11,900 50 100 11,900 March 100 200 11,800 200 300 11,700 June 300 500 11,500 400 700 11,300 1980/81 September 600 1,100 10,900 800 1,500 10,500 December 1,000 2,100 9,900 900 2,400 9,600 March 1,600 3,700 8,300 1,000 3,400 8,600 June 1,200 4,900 7,100 900 4,300 7,700 1981/82 September 800 5,700 6,300 700 5,000 7,000 December 700 6,400 5,600 600 5,600 6,400 March 500 6,900 5,100 600 6,200 5,800 June 500 7,400 4,600 600 6,800 5,200 1982/83 September 500 7,900 4,100 600 7,400 4,600 December 500 8,400 3,600 600 8,000 4,000 March 500 8,900 3,100 600 8,600 3,400 June 500 9,400 2,600 600 9,200 2,800 1983/84 September 500 9,900 2,100 600 9,800 2,200 December 500 10,400 1,600 600 10,400 1,600 March 500 10,900 1,100 600 11,000 1,000 June 500 11,400 600 600 11,600 400 1984/85 September 400 11,800 200 300 11,900 100 December 200 12,000 - 100 12,000 - 1/ The IDA and IFAD funds for all items jointly financed by IDA and IFAD (i.e., for all components except water supply and road improvement) would be disbursed in the ratio of 30:70.  - 29 - V. ORGANIZATION AND MANAGEMENT A. Introduction 5.01 The project would observe existing organizational structures to the fullest extent possible. It would support the institutional arrangements introduced during Government decentralization in 1972 by building up the re- gional and district administrations in Mwanza and Shinyanga, which now have responsibility in the project area to implement the Government's development program (cf para 1.06). Where possible, the project would utilize existing staff and endow them with active and meaningful roles and sufficient resources and support. About 80% of the manpower requirements of the project would consist of existing cadres. The project would thus render productive an important but under-utilized resource. Where not possible to use existing staff or organizations, the project would support special arrangements to assist efficient implementation. The project would thus include the appoint- ment of eight internationally recruited staff in the two regions (five in Mwanza region and three in Shinyanga region) and three internationally re- cruited volunteers (two in Mwanza region and one in Shinyanga region). Sixteen additional senior Tanzanian personnel would be appointed to the regional staff (eight in each region). It would also establish new divisions within the relevant technical departments in each region to implement the roads and shallow wells components. By focussing on the institutional limita- tions and opportunities of the regional and district administrations, the project would help to improve the Government's capacity to implement develop- ment programs both present and future in the two regions. Table 6 (page 36) summarizes the incremental requirements of staff and vehicles. 5.02 The project would both strengthen and supplement the Government's ongoing development program in the two regions. The project's agriculture, forestry and land-use planning components would subsume all of the regions' projected capital investment programs in these sectors, and would finance the required incremental salaries and operating expenses. The livestock component would, as a pilot effort, reinforce only parts of Government's projected program. The remaining components would be fully additional to the regions' present development efforts. The project would thus represent mainly supple- mental funding to the currently projected budgets of the two regions. 5.03 The project would also support a limited number of activities falling under the administrative responsibility of the central ministries, including the appointment of three internationally recruited specialists and six senior Tanzanian staff. This support would be directed principally towards agricultural, livestock and forestry research which, although located in the two regions and important to the regions' development, fall under national jurisdiction.  - 30 - B. Project Coordination, Monitoring and Evaluation 5.04 The regional administration of each region would have overall responsibility for the project. Policy matters would be decided by the Regional Development Committee chaired by the Regional Development Director (RDD). The project would be coordinated, guided and monitored by a Project Coordinating Section in each region, under the respective Regional Planning Officer (RPLO), who is a member of the Regional Development Committee. The RPLO would be assisted by a Project Coordinator, who would be responsible for overseeing the day-to-day operations of the project and coordinating the activities of the various functional departments concerned. The Project CDordinators would each be supported by an internationally recruited Financial CDntroller and a Regional Evaluation Officer, each with appropriate support staff. The Regional Monitoring and Evaluation Units will receive methodo- logical assistance and guidance from the Central Evaluation Unit, to be set u]? in the PMO under the project (para 4.20). The Regional Evaluation Officer would institute and coordinate an internal reporting system on progress by project component, initiate special ad hoc surveys as required to serve the iniformation needs of project management and collate the mid-term data needed to undertake project evaluation. A baseline survey in each region was con- ducted in 1976 under the aegis of the Project Preparation Team. One of the two Financial Controllers would be responsible for coordinating procurement activities of the two regions where appropriate and for coordination of reim- bursement claims before submission to the Ministry of Finance and Planning (Treasury). All items in the statements of expenditure attached to reimburse- ment claims would be categorized to the extent possible by part of the project. The appointment of qualified individuals, satisfactory to IDA, to the posts of Project Coordinator and Financial Controller would be a condition of effectiveness. The Project Coordinating Section of each region would maintain close relations with the office of the Planning Commissioner of the PMO, to which it would submit written progress reports each quarter. TRDB would also submit quarterly reports to PMO on the status of their portfolio under the VSHP. The PMIO would have responsibility for final compilation of the quarterly project reports for submission to IDA. Assurances have been obtained that Government would submit a report to the Association within six months of completion of disbursements analyzing the implementation and impact of the project against the targets and objectives set. C. Project Implementation 5.05 The project would generally be implemented through existing regional and district organizations, which would be strengthened with additional resources and funding as required. Chart C-1 in Annex 2 shows the integration of the project into the existing organizational structures. Chart C-2 in Annex 2 indicates the estimated schedule of project implementa- timn. Organizational arrangements to implement each component would be as follows: 5.36 Agriculture. Implementation of the agricultural component would be under the overall responsibility of the respective Regional Agricultural Dev- elopment Officer (RADO). A Regional Seeds Officer would be appointed in each  - 31 - region to work under the RADO and with the District Agricultural Develop- ment Officers (DADOs) in implementing the seed multiplication subcomponent. Direct responsibility for the extension and trials subcomponents would lie with the Regional Extension and Training and Regional Trials Officers respec- tively, who would be appointed to work within the RADO's office but would rely heavily upon the Regional Planning Officer to provide the administrative authority over district agricultural staff necessary to carry out effectively their programs. Two specialists would be internationally recruited to advise the Regional Extension and Training Officers for three years in each region. Two internationally recruited technical specialists (one for seeds and one for trials) would be appointed. Their time would be shared by the two regions to advise the Regional Seeds Officers and Regional Trials Officers respectively. Short-term consulting services financed from the Project Special Fund would be provided for the prefeasibility study on the agricultural development of southeast Shinyanga and the testing of ox-drawn equipment. The regional offices of the Tanzania Cotton Authority (TCA), or other relevant agencies, would be responsible for transporting to villages improved seed and dressing provided under the project, which would be sold through village cooperative stores under the joint responsibility of village storekeeper and bookkeeper. Assurances have been obtained that certified seed produced under the project would be sold to farmers; each Regional Seeds Officer would maintain records and accounts to monitor the costs of seed multiplication. The Crop Develop- ment Division of the Ministry of Agriculture (Kilimo) in Dar-es-Salaam would have administrative and technical responsibility for the research subcompo- nents but would consult regularly with the RADOs on program policy and design. Two specialists would be internationally recruited to implement the root crop and sorghum/millet research subcomponents, assisted by local staff. 5.07 Extension staff within the wards would be responsible in both technical and administrative matters to the relevant DADO, through area supervisors to be assigned under the project in an approximate ratio of one area supervisor to eight wards (see Annex 1, para 8). Approximately 390 field extension staff in the two regions would be required to implement the project effectively; this number was in place at the time of appraisal. In view of the recent assignment of Village Managers, and the consequent loss of approxi- mately 30% of the extension staff in the two regions (see Annex 1, para 4), assurances have been obtained that the required number of extension staff would be employed for the project; that if specific senior staff important for the project had been assigned as Village Managers, suitable replacements would be obtained; and that any further recruitment of Village Managers would take place through public recruitment. Further, the Government has confirmed that no change in the chain of command in the extension system had taken place as a result of the appointment of Village Managers. 5.08 Livestock. The livestock component would fall under the general responsibility of the respective Regional Livestock Development Officer and would be implemented by district livestock staff. The subcomponents to strengthen the Veterinary Investigation Center and to support range improve- ment research would be administered by the Livestock Development Division of  - 32 - Kilimo in close consultation with the regional authorities. A Livestock Research Officer would be appointed to the Veterinary Investigation Center to strengthen its staff and an internationally recruited specialist, assisted by local staff, would be responsible for the research program on pasture improvement. 5.09 Forestry. The forestry component would be administered in each region by the Regional Natural Resources Officer. He would be assisted in this task by a Regional Forest Officer to be appointed to each region. The forest research subcomponent would be implemented by a Forest Research Officer, who would report directly to the Forestry Division of the Ministry of Natural Resources and Tourism in Dar-es-Salaam. 5.10 Land-Use Planning. The land-use planning component would be implemented in each region by a Regional Planning and Drafting Unit, each headed by a Regional Land-Use Officer to be appointed under the project and to be responsible to the Regional Land Development Officer. Each unit would consist of three field teams, each headed by a team leader of assistant Field officer level. 5.11 Village Self-Help Program (VSHP). The VSHP would be administered by a special unit to be established in the Regional Planning Office of each -egion. The unit would be staffed by a Senior Economist (VSHP), three junior economists and supporting personnel; it would draw upon technical staff resources of other agencies as needed. A regional VSHP Board, consist- ing of appropriate Party and administrative officials of the region, would be constituted to formulate policy and provide overall guidance for the VSHP. Assurances have been obtained that the VSHP Board would be established in each region by December 31, 1978, and that these Boards would operate according to policies and procedures satisfactory to the Association. As the size of the program increases in each region, an Executive Committee of each VSHP Board, miade up of relevant regional and district administrative staff, could be established tc oversee ongoing operations and approve most projects. The VSHP regional unit would be assisted at ward level by Ward Ujamaa and Cooperative Development Officers (WUCDOs), who would be trained initially by the IDA- financed Village Management Technician Training Program and subsequently by special courses organized under the project. Village investments would be supported by either the VSHP subvote, administered by the VSHP regional unit, or the TRDB line of credit, administered by the TRDB regional office. Both TRDB regional offices would be provided additional staff to undertake their administrative, appraisal and supervisory responsibilities. 5.12 Village projects under the VSHP would be processed in the following manner. Wards selected for inclusion under the VSHP would each be assigned a WUCDO who, assisted by an initial socio-economic survey, would work with village leadership including the Village Manager, where present, to formulate individual needs and development priorities. Project requests, representing a consensus of tlne Village Assembly, would normally be submitted to the VSHP regional unit and the TRDB regional office for appraisal and approval. A feasibility team would then be constituted. This would be headed by an economist of the VSHP regional unit or TRDB project officer, as appropriate,  - 33 - and would include the relevant DUCDO and district functional managers. The team would prepare a feasibility study which would include: (i) a technical and/or financial assessment; (ii) a review of the organizational and management arrangements; (iii) an assessment of the required materials, equipment, labor, transport and technical and supervisory services; and (iv) an agreement on the size, nature and schedule of the village contribution to both initial and ongoing costs of the project. The feasibility study would be presented to the Village Assembly for its review. Evidence of the Village Assembly's approval, together with evidence showing that the specified village cash contribution had been deposited in a village bank account, would be required before submis- sion of the project for approval to the VSHP Regional Board of the TRDB Regional Loan Committee, as appropriate. Village projects once approved would be implemented jointly by the village and appropriate district technical department. 5.13 Roads. The roads component would be implemented in each region by a Regional Roads Unit and a Village Access Roads Unit, both under the administra- tive responsibility of the Regional Engineer. The Regional Roads Unit would be administered by a Plant Superintendent, recruited as an international volunteer and assisted by a senior roads technician and two senior mechanics. The Village Access Roads Unit would be administered by a senior road technician with the assistance of a foreman. The equipment, accounts and work program of the project-financed units would be separately maintained. The Village Access Road Units would operate on village projects which had been formulated and approved under the VSHP. 5.14 Water Supply. The water supply component would fall under the overall responsibility of the Regional Water Engineer of each region. The Shallow Well Construction Program in Mwanza region would be administered by a separate division to be created within the Regional Water Department. The division would be headed by an internationally recruited Program Manager and would include two ring well units and one pipe well unit, operating in the field, and a central compound of office and workshop facilities. The division would be assisted by an internationally recruited geologist and an interna- tionally recruited volunteer workshop master. The Shallow Well Construction Program would respond to village requests forwarded under the VSHP. The rehabilitation programs and support services financed by the project would be administered by each Regional Water Engineer. Accounts, vehicles, equipment and work programs would be maintained separately for the Shallow Well Construction Program. 5.15 Staffing. In addition to the 6 senior staff for project coordina- tion (para 5.04), 30 senior staff would be appointed elsewhere under the project. This number of senior staff, to be recruited over a two-year period, would represent an increment of approximately 10% over the number of existing senior staff in the two regions. Table 7 (page 37) summarizes the incremental senior staff to be financed by the project. The timely recruit- ment and posting of all senior staff would be critical to effective project implementation. All recruitment of senior staff would be conducted on the basis of detailed job descriptions, which are incorporated in the relevant  - 34 - working papers for implementation (see Annex 3). This recruitment has already been initiated. Assurances have been obtained that qualified and experienced individuals would be appointed to all senior staff posts listed in Table 7 (page 37). Moreover, it was agreed that internationally recruited staff provided under the project would be employed on terms and conditions satis- factory to the Association, and assurances were obtained that: (a) the following key positions be filled not later than December 31, 1978: the Trials, Extension and Training, and Seeds Officers in each region and their internationally recruited advisors; the EvaluatiLon Officer, Senior Economist (VSHP) and Forest Officer in each region; and the Program Manager for the Shallow Well Construction Program in Mwanza Region; and (b) the following positions be filled not later than July 31, 1979: the Plant Superintendent for the Regional Roads Unit and the roads technician for the Village Access Roads Unit; the Regional Land-Use Officer; the geologist and workshop master for the Mwanza Shallow Well Construction Program; and the specialists on root crops, sorghum/millet and range improvement research. 5.16 Training. The project would include the following specific training measures for each component, which would be provided by existing institutions or project-financed incremental staff, as appropriate: (a) Agricul:ure: (i) provision for five man-years of technical advice on extension and training; (ii) appointment of an Extension and Training Officer in each region; (iii) four training sessions per year per extension worker and area supervisor in technical subjects and extension skills; and (iv) five-day seminars for District Agricultural Development Officers (DADOs),, at the rate of one for the initial year and two per year thereafter, on policy and organizational issues in each region. (b) Livestock: (i) provision for six man-months of technical advice on livestock extension and training; (ii) two-month courses at the Veterinary Investigation Center (Mwanza) for 5 dip supervisors and 55 dip attendants per region; (iii) 240 ten-day courses per region on technical subjects at Lubaga Station (Shinyanga); and (iv) 100 ten-day courses on technical subject at other livestock stations. (c) Forestrr: (i) short courses for field staff in each region at which viisiting specialists (e.g., nursery work, plantations, establishment methods, citrus production, forest extension) would be invited to participate on special topics; and (ii) field courses for selected staff in large-scale plantation operations to be arranged in collaboration with the project manager of the Sao Hill Forestry Project.  - 35 - (d) Land-use Planning: (i) medium-term courses at the Nyegezi Agricultural Training Center for 15 assistant field officers per region over five years; and tii) annual ten-day courses for all land-use planning staff in each region. (e) VSHP: (i) two-day introductory sessions for 30 WUDCOs, 30 Ward Secretaries and 3 DUDCOs for each of the first three project years in each region; (ii) one-week sessions for 30 WUDCOs and 3 VSHP economists for each of the first three project years to be conducted by the Regional Evaluation Officers on survey methods in each region; and (iii) initial training of the RPLO and four VSHP economists in appraisal methodology through overseas courses or short-term technical assistance. (f) Roads: (i) provision for 8.5 man-years of volunteer technical assistance in unit operation and management; and (ii) initial seminars by equipment manufacturers' representatives. (g) Water Supply: (i) provision for 12 man-years of technical assistance on management, mechanics and hydrogeology related to the Mwanza Shallow Well Project; and (ii) one-month in-service training under the Shinyanga Shallow Wells Program for the three shallow-well construction teams and two shallow-well survey teams. (h) Monitoring and Evaluation: (i) continuous in-service training provided to each Regional Evaluation Officer by the Central Evaluation Unit, drawing upon technical assistance as required; and (ii) three-month training fellowships for all senior staff of both regional Monitoring and Evaluation Units and the Central Evaluation Unit.  Table 6% incremental Staff and Vehicles Financed by Proiject S TA FF V E 1I CL ES Expatriate Local Component Specialists Volunteers Senior Junior Operational Services Total Lorries 4 Wr Motorcycles Bicycles Total1' (MS 5-7) (MS 1-4) (081 - M402)