Guinea - Rice Development Project

Document of The World Bank FL vOY FOR OFFICIAL USE ONLY Report No. 2389-GtIt STAFF APPRAISAL REPORT REPUBLIC OF GUINEA RICE DEVELOPMENT PROJECT August 17, 1979 Regional Projects Department West Africa Regional Office 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 Currency Unit = Syli US$1.00 = 20 Syli Syli 1.00 = US$0.05 WEIGHTS AND MEASURES Metric System LISTS OF ABBREVIATIONS ADF - African Development Fund BGCE - Banque Guineenne du Commerce Exterieur BMP - Brigade Mecanisee de Production BNDA - Banque Nationale de Developpement Agricole CGR - Commissariat General de la Revolution ERC - Entreprise Regionale de Commerce IITA - International Institute for Tropical Agriculture IRAT - Institut de Recherche Agricole Tropicale ONADER - Operation Nationale pour le Developpement de la Riziculture ORG - Operation Riz Gueekedou PPF - Project Preparation Facility PRL - Pouvoir Revolutionnaire Local WARDA - West Africa Rice Development Association GOVERNMENT FISCAL YEAR January 1 - December 31  GUINEA FOR OFFICIAL USE ONLY APPRAISAL OF A RICE DEVELOPMENT PROJECT Table of Contents Page No. I. BACKGROUND .............................................. 1 A. Project Objectives. 1 B. Country Characteristies and Economic Performance 1 C. The Agricultural Sector. 2 D. Institutions: Administrative Structure. 4 Agricultural Education. 4 Agricultural Research. 5 Agricultural Extension. 5 E. The Pilot Project Area: Location and Physical 5 Characteristics. 5 Soils, Vegetation and Crops Grown. 6 Farming Systems. 7 Land Tenure. 9 II. THE PROJECT .9 A. Project Description .9 B. Detailed Features .................................. il 1. The National Components: ONADER ...................................... il Applied Agricultural Research .... ........... il Upper Guinea Project Preparation Study ...... 13 Agricultural Pricing Study .... .............. 13 2. The Pilot Project: Technical Packages .......................... 14 Seed Multiplication ......................... 16 Land Engineering Works ...................... 18 Field Trials ................................ 19 Extension Service ........................... 19 Access Roads ................................ 19 Rice Hullers ................................ 19 III. ORGANIZATION AND MANAGEMENT ............................. 20 Organizational Structure ................................ 20 Staffing, Technical Assistance and Training .... ......... 21 Implementation .......................................... 23 Project Evaluation and Monitoring ....................... 24 Gueekedou Second Phase Preparation ...................... 24 Project Buildings ....................................... 25 This report is based on the findings of an appraisal mission consisting of Messrs. K. Oblitas and 0. Honisch (IDA), and R. Orsini and K. Maibach (consultants) which visited Guinea in May 1978. I 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.  - ii - Table of Contents (Continued) Page No. IV. PROJECT COSTS AND FINANCING ...... .................. ...... 25 Project Costs .................................................... 25 Proposed Financing ... .. . .... ... ....................... 28 Project Preparation Facility .......................... .. 29 Procurement ............................................. .... ... 30 Disbursement ................................................. 30 Financing Procedures and Revolving Funds ......... ....... 31 Reporting Requirements and Auditing ..................... 31 Credit Arrangements . ................. ... .. ........ 32 V. MARKETS, PRICES, FARMER BENEFITS AND PRODUCTION ......... 34 Prices and Marketing .................................... 34 Farmer Benefits ............................................ :...... 35 Proiect Production ....... .. .. . ................................... . 37 VI. BENEFITS AND JUSTIFICATION ...... ........................ 38 VII. AGREEMENTS AND RECOMMENDATION ............................ 45 LIST OF TABLES IN THE MAIN TEXT Table No. i Project Cost Summary .................................... 27 2 Financing Plan ....... ........ ...... 29 3 Economic Rates of Return ................................ 41 4 Economic Benefits by Crop Production System .. 43 ANNEXES ANNEX 1 1 - Project Cost Summary Part A National Components Project Cost Summary Part B Gueckedou Pilot, Project 2 - Disbursement Schedule 3 - Crop Development Stages 4 - Summary Crop Production Budgets 5 - Farmer Participation, Hectares and Production 6 - Economic Value of Rice 7 - Economic Costs and Benefits  - iii - Table of Contents (Continued) ANNEX 2 List of Project File Contents Figure 1: Project Organizational Structure Figure 2: Project Implementation Schedule MAPS Guinea IBRD 14163R Pilot Project Area IBRD 14164   GUINEA APPRAISAL OF A RICE DEVELOPMENT PROJECT I. BACKGROUND A. Project Objectives 1.01 The Government of Guinea has requested IDA assistance for develop- ment of its rice sector. Rice is Guinea's major crop and staple food although, despite excellent climatic and water resources potential, Guinea does not produce enough for its own requirements. Government's objective is to in- crease national rice output in order to become self-sufficient and an eventual exporter of rice. A number of institutional and technical constraints impede the realization of this objective in particular and development of Guinea's rural sector in general. The proposed project would assist Government to overcome these constraints. Measures proposed under the project include: (i) strengthening of the Ministry of Agriculture's technical expertise; (ii) upgrading the country's agronomic research in order to provide a testing and demonstration capacity for introducing technical improvements; (iii) tech- nical training of Guinean cadres; (iv) assessment of ways to improve rural incentives; (v) a preparation study for a future agricultural development project; and (vi) a pilot rice development project in a high potential area to test and develop technical improvements and to establish the basis for a follow-up project in the same area. 1.02 The proposed project was prepared by consultants during 1977/78 through a study financed under the Daboya Pineapple Project (Credit GUI-569) which was the Bank's first intervention in Guinea's rural sector. The rice project was appraised in May 1978 by an appraisal mission composed of Messrs. K. Oblitas and 0. Honisch (IDA) and Messrs. R. Orsini-and K. Maibach (consul- tants). This report is based on the mission's findings. B. Country Characteristics and Economic Performance 1.03 Guinea has an area of 246,000 km and a population of about 5.0 million growing at 2.9% per annum. The country can be divided into four main natural regions (see map). Maritime Guinea is the coastal lowland plain covering about 18% of the country's area and with rainfall varying between 2,200 and 4,400 mm. Middle Guinea, which encompasses the upland plateau known as the Fouta Djalon and, to the north, the lowland plains of the Gaoual/ Koundara regions, has a rainfall between 1,500 to 2,000 mm and covers about 20% of the country's land area. Upper Guinea, occupying about 40% of the country's surface area, is to the east and northeast of Middle Guinea, and has a generally flat to undulating countryside covered with light forest to forest-savannah and rainfall varying from 1,200 to 1,700 mm. The Forest Region  -2- in the southeast, comprising about 22% of Guinea's surface area, has an equa- torial forest climate with rainfall varying from about 1,700 mm in the north to 3,000 mm in the south of the region. 1.04 Guinea's wide ranging climatic zones provide potential for a diversi- fied agriculture ranging from cereals and legumes to fruits and plantains, and industrial crops such as coffee, cocoa, coconut, oil palm and rubber. The country is also well suited for cattle raising. In addition, Guinea is characterized by its many rivers (particularly in upper Guinea) providing potential for irrigated agriculture and hydro-electric power. Mineral deposits include bauxite of which the country is estimated to possess eight billion tons -- the largest reserve in the world -- and about two billion tons of high-grade iron ore. Diamond and gold deposits have been identified and prospects for uranium mining and offshore oil exploration are being actively investigated. 1.05 Economic growth has, however, been slow. After independence (1958), the Government placed emphasis on developing infrastructure and mining at the expense of agriculture and developed a centrally planned economy with trade, banking and manufacturing handled almost exclusively by state enterprises. Poor performance of nationalized sectors, shortage of skilled manpower and a decline in the agricultural sect