Tunisia - Second Fisheries Project

Document of FILE COPY The World Bank FOR OMCIAL USE ONLY Report No. P-2592-TUN REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF TUNISIA FOR A SECOND FISHERIES PROJECT June 18, 1979 This doeument hus a resticed distribution ad may be used by recipients only in the performance of their official duties. Its contents may not otherwise be dielosed without World Bank authorization.  Currency Unit Tunisian Dinar (DT) The exchange rate of the Tunisian dinar is floating. The rate used in the staff appraisal report, which approximates the current rate is: US$1.00 - D 0.400 D 1.00 = US$2.50 D 1,000 = US$2,500 D 1 million US$2,500,000 Fiscal Year January 1 to December 31 Abbreviations BNT Banque Nationale de Tunisie - National Bank of Tunisia DSP Direction des Services des Pgches - Directorate of Fisheries FA Fisheries Authority FAO-CP Food and Agriculture Organization Cooperative Program FOSDA Fonds Special de Developpement Agricole _ Special Fund for Agricultural Development FOSEP Fonds Special d'Encouragement a la Pgche - Special Fund for Fisheries Development HARBOR DEPARTMENT Department of Harbors and Aerial Bases in the Ministry of Equipment ICB International Competitive Bidding INSTOP Institut Scientifique et Technique d'Oceanographie et de Peche - Institute of Science and Technology for Oceanography and Fisheries MSY Maximum Sustainable Yield ONP Office National des Pgches - National Office of Fisheries  FOR OFFICIAL USE ONLY TUNISIA SECOND FISHERIES PROJECT LOAN AND PROJECT SUMMARY I Borrower: Republic of Tunisia. Amount: US$28.5 million. Terms: The loan would be repayable in 17 years, including a 4-year grace period; interest would be at 7.9 percent per annum. Project Description: The Project aims to (i) increase the whitefish, shrimp, and octopus production by 8,600 t, 160 t and 60 t respectively, per annum; (ii) offer improved income opportunities to about 2,000 existing fishermen and create about 1,750 jobs for new fishermen and 250 jobs in other project related services; (iii) increase the efficiency of the fisheries subsector through reorganization of its administration; and (iv) improve the skills of fishermen through on-the- job training. The project would finance investments in (i) new port infrastructure and shore facilities to serve as a base for coastal fishing activities along the Tunisian coast; (ii) boat repair facilities and ice making and cold storage equipment; (iii) boat construction for 400 boats of 11.25 m overall length and 30 boats of 13.80 m overall length; and (iv) training equipment and vehicles. Tech- nical assistance for construction, supervision, training and preparation of studies for the expansion of ports in Tabarka and Kelibia and research on the potential of lagoon fishing and exploitable fish stocks would also be financed. The main risk involved in the project would result from a delay in the implementation and operation of the new organizational set-up proposed under the project. This document has a restricted distribution and may bc used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - 11 Estimated Cost: Local Foreign Total US$ Million -- Ports 19.2 11.1 30.3 Equipment for Existing Ports 1.7 2.0 3.7 Supervision of Construction and Installation 1.3 0.6 1.9 Boats and Spare Parts 5.6 8.5 14.1 Training and Incremental Personnel 3.4 0.6 4.0 Studies and Research 0.5 0.9 1.4 Total Base Cost 31.7 23.7 55.4 Physical Contingencies 2.2 1.3 3.5 Price Contingencies 5.2 3.5 8.7 TOTAL 39.1 28.5 67.6 Financing Plan: Sub- Govern- 1/ IBRD Category Borrowers ment BNT- Loan Total New Ports Civil Works - 21.1 - 11.1 32.2 Equipment - 2.5 - 2.2 4.7 Existing Ports - 1.8 - 1.8 3.6 Supervision of Construction and Installation - 1.4 - 0.8 2.2 Boats 1.6 4.9 - 9.8 16.3 Training Technical Assistance - 0.1 - 0.3 0.4 Local Personnel - 1.2 - - 1.2 Fellowships - - - 0.1 0.1 Equipment - 0.2 - 0.3 0.5 Vehicles Refrigerated Trucks - 1.0 - 1.2 2.2 Ports - 0.2 - 0.1 0.3 Incremental Personnel Cost - 2.0 0.5 - 2.5 Studies and Research - 0.6 - 0.8 1.4 TOTAL 1.6 37.0 0.5 28.5 67.6 1/ Banque Nationale de Tunisie  - iii - Estimated Disbursements: (US$ Million): BANK FY 80 81 82 83 84 85 Annual 4.4 9.0 5.9 4.7 3.5 1.0 Cummulative 4.4 13.4 19.3 24.0 27.5 28.5 Economic Rate of Return: 27 percent. The economic rates of return for the individual ports range from 17 to 35 percent. Staff Appraisal Report: No. 2436-TUN, dated June 6, 1979.   INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE IBRD TO THE EXECIJTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF TUNISIA FOR A SECOND FISHERIES PROJECT 1. I submit the following report and recommendation on a proposed loan to the Republic of Tunisia for the equivalent of US$28.5 million to help finance a Second Fisheries Project. The loan would have a term of 17 years, including 4 years of grace, with interest at 7.9 percent per annum. A portion of the proceeds of the loan (US$9.8 million) would be relent to the Banque Nationale de Tunisie for a term of twelve years including 5 years of grace, at a rate of interest of 2.5 percent per annum. PART I - THE ECONOMY 1/ 2. An updating economic mission visited Tunisia in June 1978; its report entitled "Economic Position and Prospects of Tunisia" (No. 2201-TUN) was issued on November 16, 1978. Country Data sheets are attached in Annex I. 3. Tunisia is rather poorly endowed with agricultural resources. Much of the country is arid or semi arid. Agricultural activity is concentrated along the coast, in the North West, and in a few oases, but continues to play an important role in Tunisia's economic structure. During 1970-77 agriculture generated some 17 percent of GDP and accounted for some 40 percent of total employment.. The main crops are wheat and olives. These crops are subject to sharp annual output fluctuations because of irregular rainfall in the case of wheat and a natural production cycle for olives. Tunisia's most important raw materi.als are phosphates, petroleum and natural gas; except for phosphates, known reserves are relatively small. Industrial development, although rapid, has been hampered by shortaiges of industrial entrepreneurs, the limited size of the domestic market and difficulties in marketing Tunisian products abroad. The most iimportant sector is services, which, during 1970-77, generated about half of GDP, a quarter of that sector's contribution consisting of government services. Tourism has developed rapidly during the 1970's. Workers' remit- tances have become a significant item in the balance of payments, generating about 10 percent of current account receipts during 1970-77. 4. Tunisia's economy has performed remarkably well during the period 1970-77. Real GDP grew at an average annual rate of 8.6 percent, nearly twice as fast as during the 1960's. Per capita GNP in 1977 reached $860, which in real terms is some 72 percent above its level of 1969. According to the 1978 World Bank Atlas, Tunisia was one of the few countries in the world whose per capita GNP during 1970-76 increased by 6 percent and more. 5. This performance was partly attributable to improved economic man- agement and partly to fortuitous factors. During the 1960's, Tunisia's policy orientation centered on an inward-looking investment strategy based on 1/ Substantially unchanged from the President's Report for the Second Urban Sewerage Project (No. P-2485-TUN), approved March 22, 1979.  state .!redomTnance ;i? al-L portan ecoonomic act liiv iesn Econoinic management re Iton or, a complex cystern of governnerit regulatkoris. In 1969, new policy orientations were announced, whichi, during the 1970's, resulted in change towards a more open and export-oriented economy in which private initiative Could play anl increasing role. A number of decontrol measures were introduced, albeit slowly. Overall, tne new policy orientation proved highly beneficial for the country. In addition, the economy benefited from favorable weather conditions resulting in good agricultural crops while the change in world mar- ket prices during 1973/74 brought sizeable windfalls as the terrms of trade improved sharply. This all-owed domestic savings to increase to 22 percent of GDP during 1970-77, compared with 15 percent during the 19190's. Tunisia's dependence on external financing declined from about 32 percent of investment in 1969 to 25 percent in 1977; the share s.as as low as 15 percent during 1973-76, when gains from the terms of trade were at their peak. The balance of payments had been in continuous overall surplus since 1967, but after 1975 this was no longer the case as the terms of trade began to deteriorate wlhile imports continued to increase rapidly. However, Tunisia's debt service ratio in 1977 was still a low 8.9 percent, compared with 20 percent in 1970. 6. Rapid economic growth allowed Tunisia to make substantial social gains during the 1970's. By 1976, primary school enrollment had reached 96 percent and secondary enrollment 20 percent of the relevant age groups. Education is free virtually through university. Public health services have been expanded, with many services provided free. A family planning program has been introduced and since 1973 has met with substantial success. The birth rate declined from 43.8 per thousand in 1966 to 36.4 per thousand in 1976 while the rate of natural growth declined from 3.0 to 2.6 percent in the same period. Attempts have been made to correct regional imbalances and to improve income distribution. The share of the population living in absolute poverty declined from 30 percent in 1966 to 18 percent in 1975. However, important disparities remain between income levels among individuals and regions. In coping with the social aspects of development, Tunisia faces strongly increased aspirations of its population in the face of limited natural and financial resources. 7. The most important problem facing the Tunisian economy is widespread open and hidden unemployment. In 1977, about 13 percent of the labor force-- some 220,000 people--were unemployed and the unemployment rate is rising. In addition, there is considerable hidden unemployment in agriculture, which employed about 35 percent of the labor force in 1977. If one considers that about 40 percent of this labor force does not have full time jobs, the effec- tive unemployment rate is more like 25 percent. An increasing number of young people born during the high birth rate years are reaching working age and a growing number of women are joining the labor force. About half of the registered unemployed are young people seeking their first employment. These are mostly relatively educated people whose job aspirations cannot be met. 8. During 1970-77, agriculture provided about 40 percent of total employment, 25 percent of merchandise exports and 17 percent of GDP. Food processing --ccounted for another 4 percent of GDP and comprised 35 percent of value added in manufacturing. During this period agricultural production  rose substantially, largely as a result of favorable weather. Large infra- structure investments were made during the last decade. Current policy, which emphasizes projects that make a rapid and direct contribution to production, recognizes various constraints on agricultural development: insecurity of tenure; inadequate access to agricultural credit; inadequate extension ser- vices; insufficient agricultural education; and underutilization of irrigation investments. Under the Fourth Plan (1973-76) about $140 million was allocated to a rural development fund executed by the provincial administrations. 9. During the 1960's, manufacturing production in Tunisia increased by 8 percent annually. This growth rate accelerated in the 1970's to 11 percent annually, due in part to re,cord years for the olive oil processing industry and to favorable developments in the textile and chemical industries. The early thrust of industrialization was supplied by large import substitution projects. These suffered, however, from the limited domestic market and from shortages of experienced staff and management. Since 1970, more emphasis has been put on export-oriented private industries, particularly in food processing, textiles, fertilizers and mechanical and electrical industries. Foreign and domestic private investment is now stimulated by a comprehensive incentive framework and facilitated by streamlined approval procedures of the investment promotion agency. Foreign investors are expected to contribute know-how and overseas marketing capability. Although an agreement between Tunisia and the European Community signed in April 1976 provided for duty free entry into the Community of nearly all Tunisian industrial products, new restricticns have recently been imposed. The Government has established a special fund to encourage growth of small industries and industrial decentral- ization, and it has started a program to establish industrial estates. 10. The development of tourism in Tunisia is relatively recent. Foreign- visitor arrivals reached 1 million in 1977, with an average annual rate of growth duting 1970-1977 of 12 percent -- sharply higher than that of the Mediterranean tourism market as a whole. Since 1970, tourism has become a major source of foreign exchange earnings, reaching $315 million in 1977; this was slightly more than earnings from all manufacturing exports and was exceeded only by petroleum exports. The rapid development of tourism in Tunisia has unfortunately not been accompanied by adequate development of infrastructure (particularly recreational facilities), trained manpower, or related services. The Government is endeavoring to alleviate these con- straints t:hrough a variety of measures including revised investment incentives, increased marketing and training efforts, codes to enforce quality standards, and more stringent zoning laws. 11. The main objectives of the current Five-Year Plan (1977-81) are: (i) full employment of the additional labor force; (ii) self-sufficiency in major foodstuffs (defined as a balanced trade account for agricultural goods); (iii) increases in the standard of living; and (iv) social stability through incomes policies and wage and price harmonization. The Plan foresees an aver- age annual rate of real GD]? growth of 7.3 percent. This is somewhat below the 9.2 percent achieved during 1970-76, mainly because the fortuitous factors prevalent during the early 1970's were not expected to continue. Investment  - 4 - is projected at D 4.2 billion ($9.8 billion) in current prices during the Plan. In real terms, average annual investment would be 54 percent greater during 1977-81 than during the preceding Plan period. Nonetheless, the targeted average annual rate of growth of real investment during the Fifth Plan is only 4.1 percent, as this rate is influenced by the very high investment level achieved in 1976 in an effort to meet targets of the precedling Plan. 12. The Fifth Plan's strategy emphasizes in particular export-oriented industrial development and agricultural growth. Special attention is given to employment creation and to balance of payments considerations. Substantial investments are to be made in hydrocarbons, manufacturing, water development, transport and housing. The Plan prescribes increased domestic production and processing of Tunisia's mineral resources (phosphates, petroleum) to export as much value-added as possible. Extraction and distribution of newly discovered offshore gas deposits in the Gulf of Gabes rank prominently in the list of major projects. This gas will substitute for petroleum-based fuels, freeing the latter for export. Eventually, gas will also be used as an input for the chemical industry. Private sector initiative is expected to dominate invest- ment in textiles, mechanical and electrical industries, and tourism. It is in these activities that the authorities expect most employment creation to take place. Employability of the labor force is to be increased through education and training programs. Efforts towards regional development are to be pursued through establishing regional planning structures, strengthening regional administration and developing incentives for the decentralization of produc- tive activities. The strategy proposed for the Fifth Plan does not represent any major departure from the strategy pursued successfully during the preced- ing Plan. 13. Tunisia's existing resource base, its institutional and infrastruc- tural framework, its good performance in the earlier part of this decade, and the desire of the authorities to support further development with appro- priate policy measures and institutions are fundamental factors pointing towards continuing rapid economic growth during the Fifth Plan. The 7.3 percent growth target is in line with the possibilities of the economy. The investment priorities formulated in the Plan are considered necessary to support the sectoral strategies. There are, however, some less favorable signs. Tunisia's development recently benefitted from the structural changes in world market prices and from excellent weather conditions. As noted above, it cannot be expected that these fortuitous factors will continue in Tunisia's favor to the same extent as in the past. Hence, Tunisia will have to rely increasingly on its own resources. As the resource base is relatively narrow, available resources should be efficiently deployed. Achieving the Plan tar- gets presupposes the timely introduction and successful execution of measures to (i) strengthen the absorptive capacity for investment, especially for labor intensive projects; (ii) promote exports; (iii) base economic management on an efficient price and incentive system and improve productivity; and (iv) mobilize the resources needed to realize the comprehensive social development targets while maintaining domestic and external financial stability. The Tunisian authorities have begun to introduce measures in these respects. 14. Substantial efforts in domestic and external resource mobilization rear i I 1- r e jf nu cial importance to finance the planned level of  - 5 - investment. On the domestic side, there is a great need for increased savings and improved financial intermediation. The Government sector, in particular, will again be called upon to contribute substantially to the savings effort. The Plan suggests that this should be done by prudent expenditure policies and increased revenue collections (selective tax increases and better tax collec- tion). In addition, the public enterprise sector will have to increase sub- stantially its contribution to public savings through better management and especially through cost-related increases in the sale prices of selected enterprises. Externally, Tunisia would have total financing requirements (disbursement basis) of some $2.8 billion during 1977-81. Given the country's creditworthiness, Tunisia should be able to mobilize such financing without putting undue strain on the country's debt servicing capacity (see below, para. 16). 15. Since the early 1960's, Tunisia has obtained large amouats of official aid. A Consultative Group chaired by the Bank provided a forum for aid-coordination among major donors in the past. During 1970-77, annual loan commitments fromn public sources averaged $235 million, or about $43 per capita. About 73 percent of these commitments came from bilateral public sources, chiefly from France, Canada, and the Federal Republic of Germany. About 17 percent came from oil-producing countries whose share increased rapidly from 8 percent in 1970 to 29 percent in 1977. Commitments from the Bank Group during 1970-77 accounted for 20 percent of total public commitments. Most aid has been obtained on concessionary terms; in 1977 the average terms of borrowing were 5.8 percent interest and 20 years maturity, including 6 years of grace. During 1970-77, Tunisia also received annually some $43 million in grants. Loan commitments from private sources averaged $34 million a year. While direct foreign private investment has been compara- tively small, it has recently picked up momentum following increased activity in the petroleum sector and new incentives offered to foreign investors in manufacturing. Net direct foreign investment increased from $19 million in 1970 to $75 million in 1977. 16. At the end of 1977, total foreign debt (disbursed and outstanding) was estimated at about $1.6 billion, or 32 percent of GDP compared with some 40 percent in 1970. According to preliminary estimates, it has reached about $2 billion at the end of 1978. The debt service ratio in 1977 was 8.9 per- cent, compared with 20 percent in 1970. This significant decline in the debt service ratio was mainly due to the sharp increase in export earnings follow- ing the changes in world market prices in 1973/74. External borrowing at the rate projected in the 1977-81 Plan (para. 14) would increase debt service obligations in relation to exports to around 13 percent by 1981 and 17 percenL by 1986, according to current Bank projections. At these levels, the debt service burden would be manageable, particularly when seen in the light of Tunisia's long record of prudent and skillful balance of payments and external debt management. Tunisia is therefore considered creditworthy for further Bank lending.  - 6 - PART II - BANK GROUP OPERATIONS IN TUNISIA 17. Since 1962, Tunisia has received a total of thirty-five loans and eleven credits amounting respectively to $541.0 1/ million and $70.1 million, net of cancellations. Annex II contains a summary statement of Bank loans, IDA credits and IFC investments as of April 30, 1979, and notes on the execution of ongoing projects. While disbursements of some loans and credits have been slower than foreseen at appraisal, on the whole, project execution has been satisfactory. As of December 31, 1978, total disbursements amounted to 54 percent of initial appraisal forecasts, and to 67 percent of revised forecasts. In a number of sectors, important institutional imprDvements have been achieved and independent agencies have been created otr strengthened. 18. The Bank's lending strategy in Tunisia aims at supporting Government efforts to (a) increase employment, (b) encourage more balanced growth and distribution of income among regions and income groups, (c) promote export- oriented policies and investments, and (d) provide selective support for the development of infrastructure and for institution building in key public services. The main supporting feature of this lending strategy is to encour- age the Tunisian authorities in timely and well-coordinated preparation of projects, with emphasis on technical assistance. The Bank is also cooperating with the Government in its efforts to increase the mobilization of domestic and foreign resources, in part through encouraging project cofinancing; the latter is particularly important in view of the extent of Tunisia's external resource needs (e.g. the large size of many priority projects) and the limited availability of Bank resources relative to the country's needs. 19. Within this broad framework, past Bank Group lending has emphasized support for -long-term investments in infrastructure and social development. Lending for urban and social development, including water supply, sewerage, education, family planning, urban low-cost housing, and the Tunis planning and public transport project has accounted for 36 percent of Bank/IDA commitments in Tunisia since 1971. Lending for transport, power and tourism infrastruc- ture has accounted for 28 percent. Agriculture and fisheries have received 15 percent of total commitments. Industrial and hotel financing through the Banque de Developpement Economique de Tunisie (BDET) has accounted for 16 percent, and the Gafsa phosphate development project received 5 percent of total commitments. 20. The Bank Group has financed five projects in the agricultural sector and one project in the fisheries subsector in Tunisia totalling $92.2 million and $2 million respectively. The Cooperative Farms project aimed at conso- lidating and creating production cooperatives in northern Tunisia, mainly through increasing productivity of small plots. As a follow up, the First Agricultural Credit project sought to develop the private sector through financing on-farm investments as well as providing credit facilities to small and medium farmers to help generate employment in rural areas. Both projects have been fully disbursed. The Second Agricultural Credit project further contributes to improving and extending access to medium and long term credit 7/ ThiF iunt irclides $25 million for a Fifth Water Supply project and 81'S r. .'ecor'd Urban Development project, both approved May e,/9.  - 7 - by small and commercial farmers. The Bank also supports irrigation invest- ments, through an Irrigation Rehabilitation and the Sidi Salem Multi-Purpose projects, and other infrastructural and on-farm investments aiming at rural developmenl:, such as the Rural Roads project, approved in June 1978. The implementation of these projects is proceeding satisfactorily. The recovery rate for subloans granted to fishermen under the First Fisheries project remains a matter of concern (para 42). 21. Cn addition to the proposed loan for a Second Fisheries project, a loan for a Second Urban Sewerage project was approved in March 1979, and loans for a Fifth Water Supply project and Second Urban Development project in May 1979. In t:he next and subsequent fiscal years, Bank lending intends to sup- port the two objectives set by the Government to balance its economy, namely promotion of agriculture, and of export-oriented and employment-generating industries. Emphasis will be placed on agricultural production p-ojects in less developed regions, such as an irrigation project in southern Tunisia, an agricultural development project in the Northwest, and continued assistance for agricultural credit to small and medium farmers and agroindustrial bor- rowers. Bank assistance to industry will focus on small-scale industrial enterprises, mechanical and electrical industries and the rehabilitation of the textile subsector; this assistance may also include financing for the Miskar project for the deve:Lopment and distribution of Tunisia's offshore gas resources. The program wouLd also continue supporting priority infrastructure and social development projects such as a Third Port project, a Second Popula- tion project, a Vocational Training project and further assistance to education. 22. The Bank Group accounted for about 20 percent of total public com- mitments to Tunisia during L970-77. The Bank Group's shares in total debt outstanding and disbursed at the end of 1977 (including loans from private sources) and in debt service during 1977 were 14 percent in both cases. The Bank Group's share in Tunisia's disbursed external debt by 1986 is expected to remain unchanged from about 14 percent in 1977, but its share in debt service would decline to about 12 p,ercent of total. 23. IFC has invested in NPK Engrais (a fertilizer plant), in BDET, in Compagnie Financiere et Touristique (COFIT, a company to promote and invest in tourism projects), in Societe Touristique et Hoteliere RYM (a large hotel development) and in Industries Chimiques du Fluor, which will produce alumi- nium fluoride from local fluorspar for export, and in the Sousse-Nord inte- grated tourism development project. IFC's net commitments in Tunisia total $15.6 million. IFC's Board has approved the sale of IFC shares in NPK Engrais to the Tunisian Government. PART III - THE AGRICULTURAL SECTOR AND THE FISHERIES SUBSECTOR Agriculture 24. During the Fourth Development Plan (1973-1976), agricultural produc- tion grew by 5.5 percent per year, and agricultural exports were nearly equal  to food imports. Investment in agriculture amounted to $139.0 million in constant 1972 prices, representing about 13 percent of the total investments during the plan period. In 1977, agriculture, including fisheries, accounted for 16 percent of GDP, 35 percent of the total labor force and 16 percent of total value of exports. During the same year, agricultural production declined by 9.1 percent from the 1976 level, primarily because of bad weather. As a result, overall GDP growth in 1977 was only 2.8 percent as compared with 7.5 percent in 1976. 25. The Fifth Plan (1977-1981) aims to achieve self-sufficiency in food- stuff (defined as a balanced commodity trade) and to reduce unemployment and rural migration by 1981. The Plan envisages development of water resources for irrigation to reduce output fluctuaticns in the rainfed areas, establish- ment of new irrigation and rural infrastructures, increased use of inputs and modernization of technology and guaranteed minimum farm-gate prices for cereals and other basic commodities. About D 500 million in current prices would be invested in the agricultural sector, or an average of D 50.6 million per year in constant 1972 prices, compared to D 34.8 million per year during the Fourth Plan. This represents an average annual increase of 45.4 percent over the Fourth plan. 26. Self-sufficiency in foodstuffs would require an increase of produc- tion of about 7 percent per year during 1977-81. This anticipated growth seems however somewhat difficult to achieve because of constraints which are still hampering agricultural development. These constraints include (i) limited investment in rainfed areas in the past; (ii) allocation of much of the investment to important infrastructure projects with long gestation periods; (iii) insufficient training and research capacity; (iv) skewed land tenure and land fragmentation, and slow progress in implementation of land reform legislation in public irrigation areas, (v) inefficiencies in extension services for small and medium size farmers; (vi) inadequate supply of credit to small farmers, and (vii) inadequate agricultural price and subsidy poli- cies. While the Government has recognized the need to introduce measures to remove most of these constraints, achievement of the projected growth rates would still depend on favorable weather conditions during the Plan period. Tt is thus important for the Government to promote production in subsectors such as fisheries, which are largely immune to weather conditions. The Fisheries Subsector 27. Fisheries in the Economy. Over the period 1971-77, the contribution to GDP by the fisheries subsector in real terms grew at a faster rate (8.8 percent per year) than agriculture excluding fisheries (6.7 percent per year). The volume of fish production grew at an annual rate of 9.9 percent from 27,800 t to 54,000 t. Fisheries now accounts for almost 6 percent of the value of total agriculture output. In 1977 fish exports (mainly shrimp, octopus and lobster) represented 7 percent of the total value of agricultural exports as compared to 3 percent in 1970. Most of the catch is consumed fresh on the domestic market. Also in 1977, about 27 percent of the production was  processed by canning plants for both domestic and export markets. In the same year, coastal fishing accounted for 44 percent of total fish production (or 23,800 t), lamparo 1/ fishing for 29 percent (or 15,400 t) and trawler fishing for 20 percent (or 10,600 t); the remaining 4,200 t were attributable to lagoon and other types of fishing. 28. Over the past four years, growth in the supply of fresh fish has lagged behind the rapidly increasing domestic demand, and the price of fish has been increasing at an average of 6 percent per year in real terms. Low catches have been due partly to unsatisfactory fishing techniques, and lack of equipment and facilities, but also to the shift of fishermen to other sectors of the economy, especially tourism. Thus, there is scope for sub- stantial increases in fish production in Tunisia. While the maximum sustain- able yield (MSY) of pelagic fish (living in open waters) has been estimated at 150,000 t per year, only about 16,000 t (or 11 percent of MSY) were actually landed in 1977. Although reliable information about the MSY of demersal species (living in bottom waters) is not available, estimates vary between 50,000 t and 80,000 t. In 1977, production of demersal species amounted to 34,000 t. 29. In the Northern Zone 2/, fishing grounds within a three nautical mile limit and in the Southern Zone, the continental shelf to depths of up to 50 m are reserved for coastal fishing. Beyond these limits, all types of fishing, including trawler fishing, are permitted. Of the 77,000 km2 of continental shelf area down to 200 m depth along the Tunisian coast, about 17,500 km2. (or 23 percent) are reserved for coastal fishing. The Northern Zone has 40 percent of the exploitable areas for coastal fishing, but its share of actual coastal fisheries production is only 15 percent (compared to 60 and 85 percent respectively, in the Southern Zone). This less than desirable performance is attributable to the lack of adequate port facilities and boats in the Northern Zone where sea conditions are rougher than in the Southern Zone and were topographical conditions are not conducive to the construction of economically viable small coastal fishing ports. In the Southern Zone, lack of port infrastructure in sufficient water depth to allow fishing activities at all tidal ranges is the most important constraint. 30. At present about 45 fishing harbors including small shelters are scattered along the Tunisian coast. The major ports (see attached Map) such as Tabarka, Bizerte, La Goulette, Sousse, Mahdia, La Chebba, Sfax, Gabes and Zarzis are used by trawlers and lamparo units and are equipped with basic facilities including access roads, water and electricity supply. However, 1/ Lamparo fishing involves the use of lights to attract fish, which are then caught in seining operations by lamparo fishing units consisting of a carrier boat and two or three small boats. 2/ Mahdia is considered to be the dividing point between the Northern and Southern Zone.  - 10 - most of the landing sites used by coastal fishing exclusively are not well equipped and very often do not provide even a basic shelter for boats. To tap the unexploited fish resources of the coastal areas, Government needs to construct new ports and further equip existing ones. Fishing boats adapted to rough sea condition in the Northern Zone also need to be constructed. 31. Increases in fish production would also require improvements in the existing fleet to increase the size and range of individual boats. The number of existing crafts used for coastal fishing was estimated at about 5,000 in 1977, of which about 1,400 were motorboats and the rest rowing or sailing boats. The most commonly found motorboats are those of 7 m to 8 m overall length (with engines of 15 to 20 hp), which are usually constructed in local shipyards. Although large numbers of this type of boat are used all along the Tunisian coast, they are considered to be too small for the remote fishing grounds. These boats which have low daily catch rates, frequently transport the catch on deck together with the entire fishing gear and the fish often deteriorates before the catch is landed. Rowing boats and most of the sailing boats do not have decks, which makes them vulnerable to wave action. Even motorboats do not provide adequate shelter to the fishermen. The 190 boats of 11.25 m overall length, sold under the First Fisheries project were designed to provide better protection and to permit longer fishing trips. These boats which are now well accepted by fishermen (para 41) have a daily catch rate of about 70 kg as compared to 35 kg per day for the smaller motorboats. 32. Subsector Organization. Administration of the fisheries subsector is vested in several ministries and government agencies. The most important ones are the Directorate of Fisheries (Direction des Services des Peches - DSP) in the Ministry of Agriculture, the Department of Harbors and Aerial Bases in the Ministry of Equipment (Harbor Department), the Merchant Marine Department ia the Ministry of Transport and Communications, the Office National des Peches (ONP) under the Ministry of Agriculture, the Rural Devel- opment Program under the Ministry of Planning and the Banque Nationale de Tunisie (BNT). The responsibilities of these various agencies are widely overlapping and not clearly defined. In the absence of coordination and cooperation among these ministries and agencies, contradictory policy deci- sions have often been made, and the implementation of action programs has met with serious difficulties. These action programs have often lacked coherence and comprehensiveness, and were more designed to meet the short-term needs of individual agencies than the long-term needs of the subsector. All these factors have led to a weak and inefficient administration of the subsector. Because of these institutional weaknesses, project preparation and imple- mentation have, more than in other sectors, encountered difficulties, which although eventually resolved, have cost the Government time and money. Use of existing shore and ports facilities, supervision of marketing and distribution channels, training and research programs, and policy-making and implementation processes need improvement. 33. For instance, DSP is entrusted with formulation and implementation of fisheries policies, enforcement of fishing regulations, preparation of  - L. - statistics, research and devrelopment, technical appraisal of fishermen's loan requests for boats, extension training, and administration of the coastal fishing fleet. DSP has 8 regional offices and 11 local offices, most of them located in the key fishery centers, but lack of budgetary allocations has severely impaired its capaciLty to hire and maintain the staff required to discharge its functions. This has resulted in inefficient extension work, unreliable fishery statistics, lack of proper research and very often the abandonment of regulatory and training functions to Government agencies, such as ON]?, with regard to administration of the coastal fleet, and BNT with regard to subloan appraisals. This situation has frequently led to conflicts of interest because some of the agencies involved are themselves fishing operators and do not have the legal status to carry out the tasks assigned to them. 34. Construction and maintenance of all port infrastructure is the responsibility of the Harbor Department. This Department also shares with ONP and the municipalities the responsibility for management of a number of fish ports and shore facilities. It is responsible for the entire supervision of the port activities. In practice, however, different agencies are involved in the operation of port and shore facilities in each port. Lack of clearly defined responsibilities and coordination of the activities of the concerned agencies has resulted in inadequate maintenance of ports and shore facilities, and difficulties in identifying problems and planning for new construction. 35. Other departments involved in the subsector include the Merchant Marine Department for navigational security services, personnel management of seamen and fishermen, the fishing fleet and fishing facilities. The Depart- ment is also responsible for approving boat designs, supervising construction and delivering certificates of inspection. While it approves the designs for each boat type, it hardly carries out any supervision during boat construc- tion, leaving the shipyards, especially those of ONP, at liberty to introduce modifications in the design in accordance with the wishes of individual fishermen. This department is more involved with the merchant marine and is ill-equipped to supervise and direct fishing activities. The ONP has respon- sibility for promoting and developing the fishing industry and for marketing fish production for domestic consumption and export. ONP's marketing efforts are deficient, and since it has assumed responsibility for operating a large trawler fleet as well as ship building and ship repair facilities, its capac- ity to properly carry out all its functions is limited. The Rural Development Program shares with the DSP the responsibility for training fishermen and craftsmen of related industries but there has been little coordination so far between the Ministries of Agriculture and Planning regarding training facilities and programs; training standards are not uniform, and the Merchant Marine Department is awarding diplomas and certificates only after long delays. 36. In summary, both physical and institutional constraints are presently hindering development of the fisheries subsector in Tunisia. A comprehensive development strategy for cc,astal fisheries would need to include the following actions: (a) development of marine and shore facilities to harbor fishing fleets, handle fishermen's production and service their fleets; this would  - 12 - mean constructing new fishing ports and modernizing existing ones wherever it is technically and economically feasible; (b) provision of adequate equipment, mainly boats and fishing gear; (c) establishment of a Central Authority with well defined responsibilities, budget and staff to: (i) decide on policy in the subsector; (ii) initiate and plan a fisheries development strategy, including promotion of public and private investments; (iii) implement the regulatory functions in the subsector; (iv) promote training and research; And (v) administer the country's fisheries resources and Government's fisheries investments along the coast. 37. The Financial System and Fisheries Financing. BNT administers Government concessionary credit and subsidies to fishermen through the Fonds Special d'Encouragement a la Peche (FOSEP). As of November 1978, FOSEP funds committed by BNT amounted to about $33 million in loans and $6.5 million in subsidies. In addition, $2 million in IDA funds under the First Fisheries project (Cr. 270-TUN) and $0.4 million in related subsidies were committed as of that date. BNT does not assume the default risk for FOSEP loans, but bears 50 percent of the default risk for the IDA Credit. The Government, until 1977, provided funds to fishermen from the Rural Development Program, for the purchase of fisheries equipment, but since then only seasonal credits have been provided under this program. Total resources allocated to the fisheries subsector are modest, but could substantially be increased if the institu- tional constraints mentioned in paragraph 32 were removed. 38. Government subsidizes investments in agriculture and fisheries as part of its efforts to increase the standard of living of the rural population and to reduce rural-urban migration. At present, the Government provides sub- sidies of up to 40 percent for investments in agriculture and 15 percent for individual investments in fisheries, especially for purchases of boats. The 15 percent Government subsidy for the purchase of motorized boats and fishing equipment applies to investments financed by both FOSEP and IDA subloans. The loan amount is 75 percent of investment costs and fishermen are expected to finance the remaining 10 percent. Interest rates are set at 6 percent for all loans financed through the Fonds Special de Developpement Agricole (FOSDA) and FOSEP. FOSEP regulations set ceilings on subloans for boats not exceeding 11 m at about $25,000, and for those of 12 m to 16 m at about $37,500. 39. Development Objectives. Fisheries are expected to make a signif- icant contribution to increases in agricultural production during the Plan period (1977-81). Fish production is projected to increase by 12.4 percent per year from 49,000 t in 1976 to 88,000 t in 1981. To achieve this increase, investment of D 46 million ($115 million equivalent) in current prices is foreseen fo-- development of harbor and related facilities and for equipment,  - 13 - research and training. This amount represents 9 percent of total agricultural investment:s planned during 1977-81. The average annual real investment in fisheries during the Fifth Plan would be about 40 percent greater than that implemented during the Fourth Plan (1973-76). 40. A second major objective is the creation of permanent employment in the subsector to increase output, and reduce migration to urban centers and tourism areas along the coaist. Estimates of the number of fishermen vary from 18,000 to 22,500. Included in this figure are about 12,000 fishermen involved in coastal fishingy activities. The Plan envisages the creation of 3,000 new jobs for fishermen by 1981 and the establishment of training pro- grams. Employment creation in the fisheries subsector is vitally important because oE the chronic unemployment and underemployment levels in agriculture, and reductions of manpower demands in tourism due to slow growth of tourism activities during the past three years. 41. Performance under the First Fisheries Project. In 1971, a credit of $2 million was made for the First Fisheries Project mainly to finance the procurement of about 335 fully equipped fishing boats, spare parts and sup- porting services. Due to the institutional weaknesses (paras 32-36) and other difficulties, this Project has faced major implementation problems and delays in execution. Disbursements have been slower than expected because of two main reasons. First, a new boat design developed after Credit signature was found to be generally unacceptable to the fishermen and had to be altered. An existing boat design with slight modifications was finally accepted and the first hulls were built only in 1974. Second, procurement difficulties resulted from the Bank's insistence that Tunisian authorities comply with agreed ICB procedures by awarding the engine contract to the lowest evaluated bidder, whereas the DSP would have preferred purchasing engines which were already well accepted by fishermen. As a result of these difficulties, there was a long delay in project implementation, Initial boat sales were sluggish and picked up only after DSP had introdu;.-e a mobile repair unit which made periodic visits to ports and was also av.,ilable on call. 42. Recovery of sub-,)a,- r fisherrten tinder thc Ciedi: 1-ia; been difficulh f; r -er - r zs ' large percentae- of f sh en received fuods from the Ri 2 -e Progr..m to finance the- requi7'ed 1" percent advance payment for the acqu of boats- Most of the fisherme- have therefore regarded BNT loans as g as well; (ii) the la.k of coopera- tior between BNT and DSP in attemptinr L .cover loan repayments anl insuf- ficient personnel have aggravated this sl uation; and (iii) credit supervision and a collection system of fisheries subloans by BNT have been non-existent in the past. None of the twenty BNT branch offices along the coast had a collection agent. As a result of these deficiencies the recovery rates declined steadily to a level of about 6 percent in September 1978 for IDA financed subloans. Upon the Bank's recommendation, measures were taken to: (i) improve the cooperation between DSP and BNT's technical services; (ii) recruit seven BNT recovery agents, and (iii) start legal proceedings against loarn defaulters. This has resulted in an iimpro,ement in the recovery rate to 23 percent as of April 30, 1979. The loan reco-ery performance is expected to  - 14 - improve further, once BNT's newly recruited recovery agents will be in full operation. An understanding was reached before negotiations that BNT will take all necessary actions to achieve by the end of 1983 a debt recovery ratio for subloans extended under the IDA Credit of not less than 80 percent with 30 percent by end of June and 40 percent end of 1979. To that effect a per- manent Coordinating Committee between BNT and DSP has been constituted to monitor the supervision and subloan recovery efforts and to recommend measures to be taken against any defaulters. Also, the proposed reorganiza- tion of the fisheries subsector under this project is expected to improve the situation. PART IV - THE PROJECT 43. As a follow-up to the First Fisheries project, the Tunisian Govern- ment requested Bank assistance in financing a second project which would contribute to the integrated development of coastal fisheries. A study financed by the Bank's Project Preparation Facility and the Government was undertaken by the consulting firm Societe Generale de Technique et d'Etudes (SGTE) and supervised jointly by the Tunisian Ministry of Equipment and the IBRD/FAO Cooperative Program. The Second project was appraised in October/ November 1978. The Staff Appraisal Report (No. 2436-TUN, dated June 6, 1979) is being circulated separately. The main features of the loan and the project are mentioned in the Loan and Project Summary and in Annex III. A map showing the location of the ports covered by the project is also attached. Project Objectives and Description 44. The proposed project would aim at contributing to an increase in coastal fisheries production by about 8,800 t per year at full development. This would be achieved by providing new boats and by constructing urgently needed port infrastructure and shore facilities. Increase in fish production would also contribute to foreign exchange earnings directly through the export of frozen octopus and shrimp, and indirectly through additional consumption of high quality fish by tourists. A further major objective would be to offer improved income opportunities to fishermen, at present engaged in less efficient fisheries activities at the port sites, and to create new jobs for fishermen, many of whom would come from the rural poor and who are at present unemployed or underemployed. Additional employment would be created in auxiliary indus- tries like boat building and repair, wholesale and retail outlets and fisheries supply stores. The project would also improve fish supply and the uneven dis- tribution of fish among the population. Perhaps the most important long-term objective of the project would be the establishment of a central authority, with well defined responsibilities, to administer the fisheries subsector. Thus the project would provide an institutional framework to improve adminis- trative efficiency in the fisheries subsector. Better access to credit for fishermen and improvement of their repayment performance on subloans through adequate supervision would be an additional institutional objective. The project would consist of the construction of small fishing ports and various shore facilities, the provision of boats, training of fishermen, studies and research.  - 15 - 45. Ports. The major component of the project would be the construction of small fishing ports equipped with shore facilities to serve as bases for coastal fishing activities. In the course of project preparation and appraisal 47 sites were visited of which 10 sites were finally retained as least cost alternatives. The ports, which are evenly spread from Cap Bon to the Gulf of Bou Grara, are the following: Sidi Daoud, Beni Khiar, Hergla, Salakta, En Najet, La Louata, Mahares, Zarat, Bou Grara and Adjim. The new ports to the north of Mahdia would be enclosed by break-waters because of their exposure and adequate depths close inshore, while the port installations and landing facilities south of Mahdia would be constructed well offshore because of the flat foreshlores and large t:Ldes in this area. All the ports constructed under the projeci: would be provided with a service quay, jetties to moore the boats, a fish halL and boat repair facilities, and most of them with a cold store, an ice-plant and other necessary installations. Construction and equipping of additional shore facilities would also be made available for the axisting ports of Glhar el Melh, La Goulette, Monastir, Saiada, Teboulba, Mahdia and Houmt Souk. 46. 'Boats. The Project would finance about 400 boats of 11.25 m overall length. In accordance with fishermen's preference and experience the boats would in mDst cases have wooden hulls. They would be equipped with inboard diesel engines and a full set of fishing gear. Although quite similar in design and equipment to those constructed and sold under the First Fisheries project, a number of small but important technical improvements would be introduced. Spare parts would be included in this component. Ferro-cement boats constructed under an FAQ financed program as well as fiberglass hulls boats would also be eligible for financing under the project should fishermen request them. For fishing along the northern coastline, where seas are rough in winter time, about 30 coastal fishing boats of 13.80 m overall length would be constructed under the project. They would have a greater fishing radius to take account of the lower density of harbors and would offer better protection in rough weather. 47. Technical Assistance for Training, Training Equipment and Vehicles. The training element of the Project would focus on on-the-job training of fishermen who are normally not willing to spend several months in training. For this purpose, it would provide for: (i) the staffing and equipping of about 10 mobile training units including the provision of about 12 boat engines for demonstration purposes and ten van-type vehicles; (ii) technical assistance to train instructors for the mobile units and training institu- tions, and (iii) short-term fellowships to instructors at the end of their training period in Tunisia. To facilitate administration of the new ports, 10 small pick-up trucks would be financed for the regional offices of the Fisheries Authority. 48. Studies. The Project would also finance the preparation of fea- sibility studies for the expansion of the ports of Kelibia and Tabarka. The Government is interested in expanding these harbors because of their impor- tance as catalyst for the development of the Cap Bon and the Northwest Regions. In addition, the project would include a comprehensive study of the possibilit:ies of lagoon fishing, mainly in the Lakes of El Biban, Tunis and  - 16 - Ichkeul and the Gulf of Bou Grara. These lagoons with small openings to the sea are considered to have large fish resources which are at present under- exploited. Finally, research work would be undertaken under the project to determine the entire coastline fish stocks and the maximum sustainable yields. Project Implementation 49. The project would be implemented over a period of five years and is expected to be completed by the end of 1984. The construction of ports would take three years and be completed by the end of 1982; the construction of boats would start in 1980 and continue until 1984. The training and techni- cal assistance component could start as soon as the first boat hulls were built and the first engines delivered, i.e. by the end of 1980. On-the-job training of fishermen would be carried out throughout the implementation period and could be continued after 1984, if deemed necessary. The study for the expansion of the harbors in Kelibia and Tabarka would commence in 1980 and be finalized by 1982. Research work for the determination of fish stocks would start as soon as possible in 1980, and would carry on throughout the project implementation period. The study on the potential of lagoon fishing would also commence in 1980 and is expected to be finalized in 1982. The Ministry of Equipment (Harbor Department), the newly created Fisheries Authority (FA) and BNT would be in charge of project implementation (draft Loan Agreement, Section 3.01). 50. Port Construction and Facilities. The Harbor Department would be responsible for all port construction, including infrastructure and shore facilities (draft Loan Agreement, Section 3.01(a)). In the supervision of construction and installation, it would be assisted by consulting engineers. A total of 108 man/months of expatriate consultants and about 720 man/months of local consultants would be needed. The Harbor Department would also be responsible for hiring a consulting firm for the preparation of feasibility studies for the port expansion in Kelibia and Tabarka, for which approximately 40 man/months would be needed. Assurances were obtained during negotiations that for construction supervision and for the studies, consultants would be employed whose qualifications, experience and terms and conditions of employ- ment would be satisfactory to the Bank (draft Loan Agreement, Section 3.02(a)). 51. Coordination and Supervision. A Fisheries Authority (FA) would be created as a public agency with a legal personality and financial autonomy and with appropriate resources, functions and responsibilities under the supervi- sion of an appropriate ministry, to combine all regulatory functions and to regroup services connected with the administration of the fisheries sub- sector. The establishment of an efficient Fisheries Authority prior to Loan effectiveness would be essential for successful project implementation since this institution would be involved in the following project activities: (i) procurement of boats, equipment and vehicles, including the preparation of bidding documents, bid evaluation and award of contracts; (ii) supervision of boat construction and pre-delivery inspection;  - 17 - (iii) i.dentification of applicants for subloans and preparation of technical/economic appraisals of fishermen's applications for subloans; (iv) coordination with other agencies involved in project imple- mentation, especially: (a) the Harbor Department regarding port construction;; (b) Banque Nationale de Tunisie (BNT) regarding subloan supervision and collection; and (c) Office National des Peches (ONP) regarding marketing and exports of fish; (v) collection of harbor fees from fishermen; (vi) operation of project ports and shore facilities until they can be leased under commercial lease agreements, and then suiper- vising the leases; (vii) supervision of the study on the potential of lagoon fishing and the research program on assessment of fish stocks and Maximum Sustainable Yield (MSY); (viii) overall responsibility for organizing and implementing project- related training programs; (ix) monitoring the project progress and the project impact on the fisheries subsector; (x) preparation of periodic progress reports; and (xi) promotion of new fishermen's cooperatives or similar profes- sional organizations and supervision of their activities. 52. During negotiations, agreement was reached that, prior to Loan effectiveness (i) appropriate legislation would be introduced and promulgated by the Tunisian Government to establish the Fisheries Authority, whose role would comprise, inter alia, the tasks described above; (ii) the Director of the Authority be appointed; and (iii) the Government would make the necessary arrangements to enable the FA to perform all its obligations under the project (draft Loa,n Agreement, Sections 6.01(a) and 6.02 (a)). 53. Boat Financing. As under the First Fisheries project, subloan disbursements to fishermen would be channelled through BNT. In its subloan supervision and collection efforts, more responsibilities would be given to BNT branches along the Tunisian coast; BNT would also cooperate closely with the Fisheries Authority to meet the project objectives (draft Loan Agreement, Schedule 2, Part B and draf't Project Agreement, Schedule). Before loan effectiveness, BNT would recruit seven recovery agents for its branches at a ratio of one recovery agent. per 50 outstanding subloans financed by the Bank. Agreement to this effect was obtained during negotiations (draft Project  - 18 - Agreement, Section 3.01(b) and draft Loan Agreement, Section 6.01(c)). Assurances were also obtained that BNT would exercise all means of collection at its disposal against defaulters and that FA would suspend or not renew their fishing licences (Draft Project Agreement, Schedule, paragraph 4). 54. Fishermen Organizations. The construction of new ports would be an opportunity for the fishermen to establish service cooperatives or similar organizations. These would be promoted under the project, and if successful, the system could be expanded to include other Tunisian fishing ports. Member- ship would be on a voluntary basis. These organizations would be eligible for renting and managing port facilities leased by the Fisheries Authority and would provide their members with various services, including eventually short-term seasonal credit to be refinanced by BNT (draft Loan Agreement, Schedule 5, Section II, paragraphs l(a) and 3(c)). They could expand their services by guaranteeing loan repayment of their members to BNT for the acquisition of boats. This could replace the present cumbersome system of boat mortgaging. Through appropriate marketing arrangements, they could also participate in loan recovery. 55. Operation and Maintenance. The FA will assume responsibility for the operation and administration of the ports to be constructed under the project. The FA will appoint a harbor-master prior to the initial operation of any of the ports and related shore facilities. He would be responsible for (i) the smooth operation of all port facilities and (ii) the planning and execution of maintenance and repair works. Boat servicing and boat repairs would be done in the repair facilities attached to each port. All shore facilities would be leased to ONP, service cooperatives or commercial operators and would be operated by them on a commercial basis. Assurances to this effect and regarding the appointment of harbor masters were obtained during negotiations (draft Loan Agreement, Section 3.03, and Schedule 5, Section II, paragraph l(a)). 56. Monitoring, Auditing and Project Accounts. All project activities including progress on port and boat construction and status of subloans would be closely monitored by the Fisheries Authority. Special attention would be given to a complete recording of catch including the fishermen's own consump- tion. Assurances were obtained during negotiations that an adequately trained employee of the Fisheries Authority would monitor on a sample basis the impact of the project on fish production, profitability of boats, income of boats owners and crew members, fish prices and supply in various ports, and that results of these efforts would be periodically reported to the management of the Fisheries Authority and the Bank (draft Loan Agreement, Schedule 5, Section II, paragraphs 5(b) and 5(c)). During project implementation, the Fisheries Authority would be required to submit quarterly and annual progress reports to the Bank in which the progress of all project activities would be described including the budgetary requirements and proposed budgetary alloca- tions for the following year for the departments and agencies involved in the carrying out of the project (draft Loan Agreement, Section 3.06(c) and Schedule 5, Section II, paragraph 5(c)). The Harbor Department, the Fisheries Authority and BNT would maintain adequate project accounts. BNT would have these accounts and its annual financial statements audited by independent auditors acceptable to the Bank. The audited financial statements would be submitted to the Bank not later than six months after the end of each fiscal year  - 19 - (draft Project Agreement, Section 4.02). Not later than six months after Project completion, the Government through the Fisheries Authority would prepare and furnish to the Bank a Project completion report (draft Loan Agreement, Section 3.06(d)). Cost Estimates and Financing Plan 57. The total project cost is estimated at D 27.0 million ($67.6 mil- lion) of which the foreign exchange component is D 11.5 million ($28.5 million) or about 42 percent. Allowances for physical and price contingencies of $12.2 million, and duties and taxes of $6.5 million, representing 18 percent and 10 percent of total Project cost,, respectively, are included. The cost estimates are expressed in projected 1980 prices. Physical contingencies of 10 percent are added for port works, other civil works and equipment. Price contingencies for local and foreign exchange components are estimated to be 6 percent per year between 1980 and 1984 in accordance with the projected rate of inflation. The estimated total cost, including contingencies, duties and taxes, for the ports and shore facilities and supervision of construction and installation is $42.7 million. The total cost of boats and spare parts is estimated to be $16.3 million, and the costs of training and equipment, and studies and research, $7.2 million and $1.4 million respectively. The average cost of consulting services is estimated at $7,800 per man-month for services provided from abroad and $1,500 per man-month for services provided locally. 58. Th,e proposed Bank loan of $28.5 million would finance the total foreign exchange cost of the project. The Government would be the borrower and would bear the foreign exchange risk. A foreign exchange component of 40 percent is estimated on port infrastructure based on the assumption that the works would be undertaken by a joint venture of foreign and local firms. Other civil works are estimated to have a foreign exchange component of 15 percent on the assumption that most of these contracts will go to local firms. Of the loca'L cost of $39.1 million equivalent, $37.0 million would be met by the Government, $0.5 million by BNT and $1.6 million by the fishermen. 59. About $16.6 million of Bank funds and $27.3 million equivalent of Government funds would be made available to the Ministry of Equipment for civil works and equipment in 10 port sites and in the existing ports, the supervision of construction and installation, and the feasibility studies for Kelibia and Tabarka. Dollars 0.4 million have already been paid under the Bank's Project Preparation Facility and the Government has contributed $0.3 million from its own funds. Another $2.1 million of Bank funds and $4.8 million equivalent of Government Eunds would be made available to the Fisheries Authority for training activities, studies, vehicles and related incremental personnel cost. The remaining $9.8 million of Bank funds and $4.9 million equivalent of Government funds would be made available to BNT for boat constructicn. Bank funds would be allocated to the capital budgets of the Ministry of Equipment and the Fisheries Authority while the Government would onlend Bank funds to BNT. Government funds to BNT would be as a loan and, in an equal amount, a grant, the latter to cover the subsidy for the acquisition of boats. Prior to loan effectiveness, the Government would (i) make arrange- ments with the Fisheries Authority regarding the use of Government and Bank  - 20 - funds (draft Loan Agreement, Schedule 5, Section III); and (ii) conclude a Subsidiary Loan Agreement with BNT to specify that BNT would obtain Government and Bank funds at 2.5 percent interest for 12 years, including 5 years of grace and the necessary subsidy as grant. A 3.5 percent interest spread would be necessary to cover BNT's administrative cost and the lending risk (Draft Loan Agreement, Sections 3.01(b) and 6.01(b)). 60. Under the project Agreement between the Bank and BNT, subloans to fishermen would be made by BNT at the FOSEP current interest rate of 6 percent (draft Project Agreement, Schedule, Section 2). This rate is the same as that charged for agricultural lending under FOSDA and under the Second Agricultural Loan (No. 1340-TUN) and is about the same as the past and pro- jected rates of inflation in Tunisia (1975: 5.4 percent, 1977: 6.7 percent, 1978: 5.3 percent, 1979-1981: 6 percent). Sublending conditions under the project would be reviewed periodically to determine their justification and would be adjusted if required (draft Project Agreement, Section 2.02(a)). In compliance with the Government policy to have banking institutions assume a greater portion of the lending risk, assurances were obtained during negotiations that BNT would assume 25 percent of the default risk on subloans granted to the fishermen under the proposed project (draft Project Agreement, Schedule, Section 5). As Government intends to have BNT gradually assume an ever increasing portion of the risk, an understanding was reached during negotiations that it would review periodically the rates of BNT's risk assump- tions in the fisheries subsector. Cost Recovery 61. In the past, no user charges, such as port fees, have been levied on fishermen for coastal fishing. This form of indirect subsidization would be gradually eliminated under the project, as the construction of the ten new ports would provide a good opportunity to start a system of levying port fees. Consequently, during negotiations assurances were obtained that cost recovery for project investments will be introduced to insure coverage of operating and maintenance costs and to the extent possible, depreciation concerning fishing port infrastructure. To this effect, the Government will carry out a study during 1980, and pursuant to its recommendations take, by the end of 1982, regulatory measures requiring fishermen using ports and related shore facilities to pay fees whose rate, variations and terms and conditions of collection will be determined by the study (draft Loan Agreement, Section 4.03). All shore facilities will be leased to commercial operators by the Fisheries Authority with rental fees covering operation and maintenance costs, depreciation and to the extent possible a reasonable rate of return on investment (draft Loan Agreement, Schedule 5, Section II, paragraph 1(a)). Concerning coastal fishing boats, each fisherman will contribute 10 percent of the boat investment cost, 75 percent will be financed by BNT and 15 percent will be made available as subsidy from FOSEP (draft Project Agreement, Schedule, paragraph 2(b)). Under the project, the Government will recover through taxes, duties, port and rental fees all of the operating and miaintenance costs and more than 80 percent of the total investment cost for port infrastructure, shore facilities and the subsidy on boat investment.  - 21 - Procurement and Disbursement 62. The Harbor Department would group contracts for port works, shore facilities and related equipment totalling $42.7 million together in lots of sufficient size to attract competition and award them on the basis of inter- national comioetitive bidding i.n accordance with Bank procurement guidelines. Contracts noi: exceeding the cost of $250,000 equivalent for civil works and $100,000 equivalent for equipment would be let under competitive bidding pro- cedures, advertised locally, provided that the aggregate amount of all such contracts woald not exceed $750,000 equivalent for civil works and $300,000 equivalent for equipment (draft Loan Agreement, Schedule 4, Part C, para- graph 1). Since Tunisian shilpyards have sufficient capacity to guarantee adequate competition and since experience shows that competition from foreign boat yards for wooden hulls is highly improbable, these hulls, amounting to $9.3 million, would be procured by the Fisheries Authority on the basis of local competitive bidding (draft Loan Agreement, Schedule 4, Part C, paragraph 2). Contracts of $2.2 million for fishing gear, of $4.9 million for boat engines and $2.2 million for refrigerated trucks would be procured by the Fisheries Authority under international competitive bidding procedures. Fishermen would have the option to choose between two different engine makes in order to avoid procurement problems sivilar to those under the first project (para. 41), and ensure proper after sale service. Vehicles and other equipment totalling $2.0 million would be procured under competitive bidding procedures advertised locally. For bid evaluation purposes, Tunisian manu- facturers would be granted a margin of preference for goods produced locally, of 15 percent or customs duties, whichever is lower. Assurances to this effect were obtained during negotiations (draft Loan Agreement, Schedule 4, Part B). 63. The loan would be disbursed against: (i) 35 percent of the cost of all civil works contracts for port infrastructure and buildings representing the estimated foreign exchange component; (ii) 100 percent of foreign expendi- tures for aLl imported equipraent for shore facilities and vehicles and 55 percent of Local expenditures for the cost of goods purchased locally; (iii) 100 percent of foreign expenditures for all imported boat engines and boat equipment, ;30 percent of local expenditures for the goods purchased locally, and 30 percent of expenditures for boat hulls, (iv) 100 percent of foreign and 70 percent of local expenditure construction for fully equipped ferro cement or fiberglass boats and (v) 100 percent of foreign expenditures for consultants and fellowships. The $430,000 advance frcm the Project Preparation Facility (PPF) wouLd be reimbursed to the Bank under a separate disbursement category. The loan would be disbursed over a period of five years. The closing date of the loan would be June 30, 1985. Benefits and Risks 64. The overall project economic rate of return based on all quanti- fiable benefits and costs is 27 percent. The economic rates of return for the ports range from 17 percent to 35 percent. Benefits included in the analysis are the projected total catch vailue of new boats and the incremental catch value of the existing fleet due to tlhe increased number of fishing days as a result of the port facilities. However, the scope for potential benefits  - 22 - is far greater than those included in the analysis as there are benefits which do not lend themselves to quantification, but which are nonetheless substantial, such as training, institution building, etc. 65. In addition to the incremental fish production, other benefits derived from the project include improved income opportunities for about 2,000 fishermen at present. operating under difficult conditions in the port sites, and new jobs for about 1,750 fishermen, many of whom are at present underemployed or unemployed. It is expected that a high percentage of these fishermen would be drawn from the absolute poverty target group in the rural areas ($100 per year) and would remain unemployed without the project. As fishermen, they will have an average annual income of about $2,700. The 430 skippers of the project boats would earn about $4,700 in 1985 at full development (expressed in constant terms) while the 430 engine operators are expected to earn about $4,000. In addition, another 250 jobs (which would pay a remuneration of about $3,700) would be created in other related indus- tries and services which would be expanded under the project such as the wholesale and retail markets, cooperatives and fisheries supply stores, ship building and repair facilities, the Fisheries Authority's staff, and training instructors. One of the most important long-term economic benefits of the project would stem from the increased efficiency in the administration of the fisheries subsector as a whole as a result of the operation of the Fisheries Authorty which would be established under the project. The credit system and recovery of subloans would improve with the appointment of recovery agents in BNT's branches, thus preparing the subsector for expanded credit on a finan- cially sound basis. The marketing system and quality control is also expected to improve under the supervision of the Authority, and with the provision of additional refrigerated trucks the uneven distribution of fish marketing is expected to change over time as new markets are penetrated in the interior. 66. The sensitivity tests indicate that the risk to the project's economic viability as a result of decreases in benefits or increases in costs is minimal. Even a delay in the boats construction by one year, which would cause benefits to lag one year, would result in a total project economic rate of return of 23 percent. The main risk involved in the project would result from a delay in the implementation and the lack of efficiency in the operation of the new organizational set-up proposed under the project, which would affect the supervision and control, the training efforts and the rates of recovery of subloans made to fishermen. By addressing the technical and organizational deficiencies, there is reasonable ground to expect an improved performance from the fisheries subsector in the future in both the first project and the proposed one. Considering the important potential benefits of the proposed project, these risks are well worth taking. Environmental Impact 67. Pollution caused by effluent of Project boats would be minor and would have no important effect on sea water contamination. Discharge from shore facilities in the new port sites would be minimal. Waste water would be discharged into the sewer system built for each port site. The existing level of contamination of the Mediterranean Sea along the Tunisian coast  - 23 - is monitored by the Tunisian Environmental Agency. Areas with dangerous levels of sea water contamination are the Gulf of Gabes and the area around Tunis. The Tunisian Government has recently initiated a program to halt the discharge of industrial effluent into the Mediterranenan Sea. The Government has agreed to inform the Bank regularly on pollution levels along the Tunisian coastline (draft loan AgreemerLt, Section 4.04). PART V - LEGAL INSTRUMENTS AND AUTHORITY 68. The draft Loan Agreement between the Republic of Tunisia and the Bank, the draft Project Agreement between the Bank and the Banque Nationale de Tunisie, and the Report of the Committee provided for in Article III, Section 4 (iii) of the Articles of Agreement are being distributed to the Executive Directors separately. The draft Loan and Project Agreements con- form generally to the normal pattern for fisheries projects. Features of the draft Loan and Project Agreements of special interest are referred to in the appropriate paragraphs of this Report and on Section III of Annex III. 69. Special conditions of effectiveness are: (i) the Fisheries Authority has been established with resources, functions and responsibilities as set forth on Schedule 5 to the draft Loan Agreement, its Director has been appointed an,d taken up his duties and the necessary arrangements have been made by the Government to provide the Authority with resources and enable it to perform its responsibilities under the project; (ii) the Subsidiary Loan Agreement between the Government and BNT has been signed and authorized; and (iii) BNT has recruited agents in a number acceptable to the Bank (draft Loan Agreement, Section 6.01). 70. 1 am satisfied that the proposed loan would comply with the Articles of Agreement: of the Bank. PART VI - RECOMMENDATION 71. I recommend that the Executive Directors approve the proposed loan. Robert S. McNamara President Attachments June 18, 1979 Washington, D.C.  - 24 - ANNEX 1 Page 1 of 5 TUNISIA - SOCIAL INDICATORS DATA SHEET REFERENCE GROUPS (ADJUSTED AVERAGES TItNISIA a LAND AREA (THOUSAND SQ. KM.) - MOST RECENT ESTIMTE) TOTAL 164.2 SAME SANE NEXT HIGER AGRICULTURAL 76.1 MOST RECENT GEOGRAPHIC INCOHE INCOME 1960 Lb 1970 lb ESTIMATE Lb REGION /c GROUP 1d GROUP Le GNU PPt C'VF l' "'US) 220.0 360.0 860.0 1438.5 867.2 1796.4 ENERGY CONSUMPTION PER CAPITA (KILOGRAMS OF COAL EQUIVALENT) 190.0 261.0 447.0 816.7 578.3 1525.0 iiPtil,A?iN AND VITAL STATISTICS TOAL POPULATION, MID-YEAR (MILLIONS) 4.0 5.0 5.9 URBAN POPULATION (PERCENT OF TOTAL) 32.3 42.6 47.0 45.8 46.2 52.2 POPULATION DENSITY FER SQe. KM. 25.0 30.0 36.0 23.2 50.8 27.6 PER SQ. KM. AGRICULTURAL LAND 54.0 67.0 78.0 112.4 93.3 116.4 POPULATION AGE STRUCTJRE (PERCENT) 0-14 YRS. 42.4 45.5 43.1 46.0 42.9 34.8 15-h4 YRS. 52.6 50.5 52.7 50.6 53.5 56.0 65 YRS. AND ABOVE 5.0 4.0 4.2 3.3 3.5 5.7 POPULATION GROWTH RATE (PERCENT) TOTAL 1.8 /f 2.3 If 2.3 /f 2.9 2.5 1.6 "RBAN - 3.0 TR 4.7 5.0 4.7 3.3 CRUDE BERTUt RATE (PER THOUSAND) 46.6 44.7 40.0 45.0 37.8 27.0 CRUDE DEATH RATE (PER THOUSAND) 21.5 16.9 13.8 13.7 10.8 9.9 GROSS REPRODUCTION RATE 3.1 3.4 3.0 3.4 2.5 1.9 FAMILY PLANNING ACCEPTORS, ANNUAL (THOUSANDS) .. 29.2 58.1 USERS (PERCENT oF MARRIED WOMEN) .. 12.0 13.7 14.7 20.0 19.3 FOOD AND NUTRITION INDEX OF FOOD PRODUCTION PER CAPITA (1970-100) 124.8 100.0 128.2 107.1 107.3 103.8 PER CAPITA SUPPLY OF CALORIES (PERCENT OF REQUIREMENTS) 86.0 93.0 102.0 99.2 105.3 110.4 PROTEINS (GRAMS PER DAY) 54.0 63.0 /h 67.4 63.4 63.0 77.7 OF WHICH ANIMAL AND PULSE 13.0 14.0 /h 20.0 16.4 21.7 22.2 CHILD (AGES 1-4) MORTALITY RATE S . 1.5 L .. .. 8.0 1.9 HEALrH LIFE EXPECTANCY AT BIRTH (YEARS) 46.1 51.6 54.1 53.7 57.2 63.0 INFANT MORTALITY RATE (PER THOUSAND) . . 125.0 62.6 /I 77.7 53.9 38.2 ACCESS TO SAFE WATER (PERCENT OF POPULATION) TOTAL .. 49.0 .. 59.1 56.8 67.7 URBAN .. 92.0 93.0 85.9 79.0 83.5 RURAL .. 17.0 .. 38.0 31.8 41.5 ACCESS TO EXCRETA DISPOSAL (PERCENT OF POPULATION) TOTAL .. 62.0 . 64.3 30.9 70.3 100.0 .. 94.5 45.4 90.7 RURAL .. 34.0 .. 27.7 16.1 38.3 POPUiLATION PER PHYSICIAN 10000.0 5950.0 4620.0 4271.6 2706.8 1310.8 POPULATION PER NURSING PERSON .. 730.0 670.0 /k 2077.4 1462.0 849.2 POPULATION PER HOSPITAL BED TOTAL 360.0 /1 410.0 410.0 /k,m 580.2 493.9 275.4 URBAN .. 280.0 230.0 /k,m 310.0 229.6 129.9 RURAL .. 930.0 1040.0 /k,. .. 2947.9 965.9 ADMISS'ON' PFR HOSPITAL BED .. 24.1 22.0 22.1 18.9 HOUSING AVERAGE SIZE OF HOUSEHOLD TOTAI .. 5.1 /i 6.0 5.4 5.2 3.9 UJRBAN .. 5.1 J 5.8 .. 5.0 RURAL .. 5.1 /1 6.1 .. 5.4 AVERAGE NUMBER OF PERSONS PER ROOM T)rAL .. 3.2 /i .. .. 2.0 0.9 EJRBAN .. 2.7 /5 .. 1.8 1.5 0.8 CO'RAL. .. 3.6 /i .. .. 2.7 1.0 ACCESS TO ELECTRICITY (PERCENT OF DWELLINGS) OrAtO 24.0 'i . 40.3 64.1 59.2 URBA' . . . .. 67.8 78.0 RURAL .. .. .. 12.2 34.1 12.5  -25 - ANNEX I Page 2 of 5 TLNISIA - SOCIAL INDICATORS DATA SHEET REFERENCE GROUPS (ADJUSTED AVERlAGES TUN IS IA /a - MOST RECENT ESTINgTE) SAHE SAME NEXT HIIGEER MOST RECENT GEOGRAPHIC INCOME INCOME 1960 Lb 1970 Lb ESTIMATE Lb REGION Lc GROUP Id GROUP Le EDUCAT I)N ADJUS rED ENROLLMENT RATIOS PRIMtARY: TOTAL 66.0 100.0 95.0 80.8 99.8 97.6 FEIALE 43.0 79.0 75.0 61.8 93.3 87.4 SECONDARY: TOTAL 12.0 23.0 20.0 23.6 33.8 47.8 FEMALE 6.0 13.0 13.0 18.2 29.8 42.6 VOCATIONAL (PERCENT OF SECONDARY) 24.0 12.0 17.0 6.7 12.8 22.7 PUPIL-TEACHER RATIO PRIMARY 61.0 48.0 40.0 31.5 34.9 25.4 SECONDARY 16.0 28.0 23.0 22.3 22.2 24.9 ADULT LITERACY RATE (PERCENT) 15.5 24.0 i .. 50.1 71.8 96.3 CONSUMPTION PASSENGER CARS PER THOUSAND POPULATION 11.0 13.0 18.0 14.5 12.4 32.3 RADIO RECEIVERS PER THOUSAND POPULATION 41.0 77.0 49.0 125.8 104.5 201.9 TV RECEIVERS PER THOUSAND POPULATION 0.1 10.0 27.0 34.5 28.1 97.7 NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION PER THOUSAND POPULATION 19.0 16.0 28.0 17.4 45.2 70.9 CINEMA ANNUAL ATTENDANCE PER CAPITA 2.0 .. 2.3 1.6 4.6 4.4 EM PLO Y1E NT TOTAL LABOR FORCE (THOUSANDS) 1400.0 1300.0 Li 1.880.0 FEUILkE (PERCENT) 6.1 7.7 8.5 9.3 25.7 17.4 AGRICULTURE (PERCENT) 69.0 57.0 Li 37.4 42.0 46.2 38.4 INDUSTRY (PERCENT) 17.6 21.0 PARTIC]PATION RATE (PERCENT) TOTAL 27.0 23.7 23.7 26.9 33.8 33.7 MALE 50.2 44.2 44.0 46.6 48.1 50.8 FEMALE 3.3 3.6 4.0 5.3 17.3 12.6 ECONOMIC DEPENDENCY RATIO 1.3 1.8 /I 1.4 1.9 1.4 1.4 INCOME DISTRIBUTION PERCEGNT OF PRIVATE INCOME RECEiVED BY HIGHEST 5 PERCENT OF HOUSEHOLDS .. .. 17.0 *- 23.6 20.2 HIGHEST 20 PERCENT OF HOUSEHOLDS .. ,. 42.0 .. 52.3 47.9 LO4EST 20 PERCENT OF HOUSEHOLDS .. .. 6.0 .. 4.3 3.2 LO'WEST 40 PERCENT OF HOUSEHOLDS .. .. 15.0 .. 13.1 13.7 POVERTY TARGET GROUPS ESTIKATED ABSOLUTE POVERTY INCOMIE LEVEL (US$ PER CAPITA) URBAN .. .. 198.0 .. 191.9 RURAL .. .. 94.0 142.0 193.1 157.9 ESTIMArED RELATIVE POVERTY INCOME LEVEL (USf PER CAPITA) URBAN .. .. 500.0 236.1 319.8 448.8 RURAL . .. .. 144.7 197.7 313.1 ESTIMATED POPULATION BELOW POVERTY INCOKE LEVEL (PERCENT) URBAN .. .. 20.0 21.5 19.8 23.2 RURAL .. .. 15.0 37.4 35.1 54.5 Not avalable Nat applicable. NOTES /a The adjusted group averages for each indicator are population-weighted geometric means, excluding the extreme values of the indicator and the most populated countSy in each group. Coverage of countries among the indicators depends on availability of data and is not unifors. /b Unless otherwise noted, data, for 1960 refer to any year between 1959 and 1961; for 1970, between 1969 and 1971; and for Most Recen.t Estinate, between 1973 and 1977. /c North Africa 6 Middle East; Id Intermediate Middle Income ($551-1135 per capita, 1976); /e Upper Middle Income ($1136-2500 per capita, 1976); /f Due to etsigration. population growth rate is Lower than rate of satural increase; IR 1956-66; /h Av. 1964-66; /i 1966; LI Registered only; /k 1972; /1 1962; /n Government hospital estELblishments only. September, 1978  -26- ANNEX I Page 3 of 5 DEFINITIONS O7 SOCIAL INDICATORS .a The adjusted group averaged for each indicator are population-weIghted geometric means, escluding the e-tre,e values of the indicator and the most p Ioulated drotiry In each group barrae of countries anong the tndicatore depends as acailahilIty of data sd is not unifor. Due to lack of data, urol. aversa'.. for IspPil Iuc;A,,I IIFnp-tcs and Indictors Of access to vater and norreca disposal, housing, incoe dirtrtbutios and poverty are llellul ep'..l.il.i.-a' Ighl.id K-1-n. I.e....., nIlitit tlitr bcloo of -rtreie caloen. 11fANL AREA (1lalFll and esI km7 1<)auletite per h11aspita1 bed - total, urban, and rural - Population (total, Total - fatal surface area o. pr,istr lend aru and Inlood ctrom urban, and rural) divided by their re-pective number of hospital beds Agricultural - Host recent estimate of agricultural area used temporarily available In public and private general and specIal.ced hospital sod re- or permanently fur crops, pastures. market and kitchen gardens or tc ahdilitatlon centers Hospitals are establishpents permanently staffed hy lie fallow. at lest one physician. Egtabblshhents providi pridnci pallycustodial CAP I I AU, .~~~~~~~~~~~~cre r not Included. ua hospting ho por,includphalthandtomial- N1 Ff0:K CA)'liA (lh,i) -JIi eri c a cart notes sat current marher prices, cal contin not perm nently stu ffed by a physic Ion (but pt a medIcal *Ia ulo11d I.y uaor c loor thud Wrld 11an At lI- (1975-77 bhals); sistant, nurue. midwife, etc.) which offer is-patient occiesadotino and ni' 0, 1)17)x, u'7J 9'}77 d ii . provide a limited range of medical facilities. Admisainna par hospital bed - Total number of admissions to or disoharges idFR'i tONiiMPliil PEi CAPITA - Annual c-nsupPtian of coercial energy from hospitaln diaided by the number of beds. (coal and lignite, petroleum, catural gas and hydra-, nuclear and geo- thermial electricity) in kilograms of coal oquivlent per capita. HOUSING Average sloe of houshehld (persons per household) - total, urban, sod rural - POP'JLATION AND VITAL STATISTICS A household consista of a group of individu ls who share living quartnrs nte*l population, mid-yost (millions) - As ol July 1; if not aoaiiable, and their main meals. A hoarden or lodger masy or maxy noat he included ic nvmrage of tan end-year estimates; 1960, 1970, and 1977 data, the bousahold far uratinriral purposes. Statistical dofinitiont of beaur- Irban population (Percent of total) - Ratio of urban to total papoii- bold vary. ties; different definitions of urban areas may affect comptrability Averae number of persosm per roa - total, urban, and rural - Average nun- of data among countries. her of persons per room7 is all, urban, and rural occupied nnnventional Population density dwellings, r-speeinvmly. Dwelling- enclde nan-permanent structures and Pern e. i - id-year poyulatioc per square kilometer (dt hectares) unoccupied parte. of total area. Access to electricity (percent of dwellings) - total, urban, and rural - Per sq. kin agriculture land - Computed us above for agricultural land Conventional dwellinge witb electricity in living quarters s percentage only. ol~~~~~~~~~~~~e total uerban.p, and P rurl dellng rms bantively. -rgeiu fpu tion age structure (percent) - Children (- yearn), working-age (15-64 years), and retired (65 years and acer) 0s percentages of mid- EDUCATION year population. Adjuoted enrollment tatsS Population growth rate (pelcent) -total, aed urban - Copund annual Pria ry school - total, and famale - Total and female enrollment of all ugen growth rates of tots) and urban aid-year populations for 1950-hi, at the primary level am percentages of rempectivaly primary school-age 1960-70, and 1970-75. populations; normlly includes children aged 6-11 years but adjusted for Crude birth cute (per thousand) - Annual live births per thousand of different lengths of priary education; for coantrina with uniersal ado- old-yeon population; cen-ynss onitanstin averages ending La 1960 and cation enrollment may escceed 100 perccont since *ones pupils ace below or 197) and floe-year average endlog in 1971 for mast recent estimate, above the official school age. Crude death rate (per thousand) - Annual deaths per thousand of mid- lecondary school - total, and female - Computed as shovel secondary educa- year population; ten-year arichnetic averages ending in 1961 and 1970 tions requires at least four years of approved primary instruction; pro- and floe-year average ending in 1975 for most recent estinote. oden general vocational, or teacher training instruttone for pspils Gross reproduction rate - Ai erage nuinS r of daughters a woman will hear uoually of 12 to 17 years of age; carrespondence coursen are generally In her normal reproductive period if she enperiences present age- eDcludedA ypecific fertility rates; osually five-peon aomnageu endiog in 1960, Vocational enrollment (percent of secondary) - Vocational institutions in- 1971, and 1915. clude technical, induatrial, or other programs which operate independently Familo planning - acceptors annual (thousands) - Annual number of on an dparteests of serondary institutions. acooptoos of birth-control devices onder acspices of natinonal family Pupil-teacher ratio - primary, and mecondary - Total students enrolled in F6anwing prograat primary and secondary levels divided by numbers of teachers in the corre- Fa=loy planniog - asers (percent of earred women) - Percentage of sponding levels. earnied waomen of child-hearing age (15-4i yasra) who use birih-contral Adult literacy rate (percent) - Literate adults (able to read and write) as dCrices to all married aonen in sane ago group. a percentage of total adult population aged 11 years and over. Piop ANDS NUTRlVION CONSUHPTIOiN Indon offood prouction pr capit (l97i~ll - lodn numbe of. pen Pa ffengerarl(ergth.ousand"r poulation) -o Passngreras compr-isentr- cats capita annual production of al 7tfond7 i00sodit es x sebrofprating less than eight persons; axciude mbuancem hearse andris noltpcary Per canine suoply of calories (perrenr of requirenments) - fomputed from vehicles. energy equioalent of net fond supplies available in country per capita Radio receivers (per thousand population' - All typee of receivers for radio per day. Avallable supplies comprise domestic production, imports less broadcasts to general public per thousand of population; mscludea unlicensed enports, and changes in stock. Net supplies enclude anima feed, seeds, receivers in countries and in rearm when registretin of radio seta was in qusldiclms Isad in food processing, and I aonse is distribution Re- effeot; data fur recent yearn may nor be comparable since most couctrien quirueents core estimated by PAl based an physiological needs for nor- abolished liceneing. ral activity and heslth considering environmesral temperature, body TV receivers (per thousand population) - TV receivera for broadcast to general weightu, age and see distributions of population, and allowing if per- public per thousand population; eicludes unlicensed TV receivors in coon- cnt for waste e househnld level, trios and in years when registration of TV pets was in effect. Per capita supply of Vrotein (grams per day) - Protein content of per Newspaper circulation (per thousand populatinn) - Shows the average circola- capita net snpply of food per day Net supply of food is defined an tion of "daily gereral interest sewpaper". defined as a periodical pakl- above. ceqairemennt for al countries established by USDA provide for cation dedoted primarily to recording general news It is considered to e sioinuiun ailoonnom of hi groan of total ptotein per day and 20 grams he "daily" if it appears at least four tinee a weeb. of animal and pulse protein, of which 10 grams shonld he aninal protein. Cinema annual attendanc par capipta per year - Based a the nuaber of tickets These ntandords are lower than those of y5 grams of total protein and sold during the year, including admissions to drive-in cihemas and nobily 23 gross of ainial protein an an average for the wnrld, propased by units. PAO in rho Third World Foad Sureny. Per capita protein supply iron animal and pulse - Protein asupply of food EfMPLIYEeT der-ive.rsaiasangassi rm per day.rTotal abor foc(thousandls) -dfinoidcaby sauceo t.. perons Inthdogare Chidd (gesn )Imoraity radPte (per thousand) Annual deaths per thous- forces and unemp oyed hut excLuding houa e wives paterota etc. ledinied and in age group 1-4 years, ta children in thin age group. tione in sarious countries are not comparable. Female (percent) - Female laker farce sr percentage of total labor force. HEiALfH Agriculture (percent) - Labor force in farming, farestry. hunting and fiohing Life espectancy at birth (years) - Aversago number of years of life as percentage of total labor force. remaining at birth; usually five-year averages ending in 19h0, 1971, Industry (percent) - Labor force in mining, construction, nanufacturnlo and and 1975. electricity, water and gasas* percentage of total labor forte. Int mortali rt sg pere phouaandS)_ -nnual de .h of infants under Participation rate (percent) - total, male;df-sengle - Total, male, and one yeao aePer dthonsOfand live bibi. femal. ineSSlahar oreigas percentgs; oflue theirrespctie.he een poua ions. Access to safe water (percent of poPulation) - total, urban, and rural - These are 1TO's adjusted participation rates reflecting Joe-sen number of people (tota, urban, and rural) with reasonable access to structure of the population, and long tine trend. cafe water nApply (includes treated surface waters or untreated bnt icanbeic dependency ratio - itic o d of population nder and 65 and over to uncontaminated water such as tkat from protected horeholes, springs, she labor force in age group of 15-64 years. and sanitary wells) as percentages of t.eir respective popolationsc In an urban area a public fountain or standpyot located ne0 more INCOME liSTRlbUTION than 200 Ieters from a house say he considered as being within rea- Percentage of private income (both in cash gad bind) received by ritbent 5 ihnable accsed of hat house. tn rOr i t areas reasonable acre-s wonld percent, richest 20 percent, poorest 20 percent, and poorest in pe-ce-t imply that the husewife or nembers of she household do not have to of households. spend a disproportionare parr of the day in fetching the family's water needs. POVERTY TARGET GRDUPS Access no etorera disposal (pcreent at Nepulation) - total, urban, and Estimated absolute poverty income lev Pe ( fn per capIta) - urban and rural - rural - Nusber of people (total, urban, aned rural) served b yancreta Absolute poverty income level is that income level below which a minimal disposal as percentages cf their respectioe populations. p dcreta nutritionally adequate diet plus essential non-food requirements is not disposal cay include the collection and dinptoel, nith or nithout affordable. Ofsatuint, of rican ocr 0 and waste -waer by waterh roryne syteDi ttisamed relative poverty income level (ySe per capita) - urian and rural - an the cue of pit priorvo and similar Ofarallatine. t Relative poverty income level is that income level t ean than one-third ru ofnr ici rot opt] asian