Mali - Urban Development Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No.P-2595-MLI REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF MALI FOR AN URBAN DEVELOPMENT PROJECT June 12, 1979 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may sot otberwise be discosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Malian Franc (MF) MF I million = US$2,273 US$1 = MF 440 FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES: METRIC SYSTEM 1 meter (m) 2 39.37 inches (in) 1 square meter (m ) = 10.9 square feet (sq ft) 1 kilometer (km) = 0.62 mill (mi) 1 hectare (ha) = 10,000 5 or 2.471 acres 1 acre = 4,047 m or 0.405 ha 1 kilogram (kg) = 2.2 pounds (lbs) 1 pound (lb) = 0.454 kg 1 tonne (metric) = 2,205 lbs or 1,000 kgs ABBREVIATIONS AND ACRONYMS BADEA - Banque Arabe pour le Developpement Economique de l'Afrique BDM - Banque de Developpement du Mali BMET - Bureau Municipal d'Etude CAFOBA - Caisse Fonciere de Bamako CEAO - Communaute des Etats de l'Afrique de l'Ouest DNAFUC - Direction Nationale de l'Amenagement Foncier de l'Urbanisme et de la Construction (called "Habitat") DHE - Direction de l'Hydraulique et de l'Energie EMD - Energie du Mali FED - Fonds Europeen de Developpement IDA - International Development Association KFW - Kreditanstalt fur Wiederaufbau MTTP - Ministere des Transports et des Travaux Publics SNHPA - Service National d'Hygiene Publique et d'Assainissement SOMIEX - Societe Malienne d'Importation et d'Exportation  FOR OFFICIAL USE ONLY MALI URBAN DEVELOPMENT PROJECT CREDIT AND PROJECT SUMMARY Borrower: The Republic of Mali Amount: US$12.0 million Terms: Standard Relending The Government would make the proceeds of the IDA credit and Terms: its own contribution available to the various execuiting agencies as loans or budget allocations (grants). Loans would have a 7.5 percent interest rate and be payable over 23 years including a 3-year grace period. They would relate to sites and services and upgrading components and the improvements of municipal services. Grants would be given for items for which costs are not normally recovered. Project The project would assist Government in providing afford able Description: urban services to low income urban residents. It includes (a) the provision of shelter services and related community facilities for about 44,000 low income residents in Bamako; (b) improvement of health and sanitary conditions in Bamako (garbage collection, drainage, water supply and public lava- tories); (c) provision of market facilities and financial assistance to the informal sector, and promotion of local building materials; (d) provision of essential water and sanitation services to secondary cities (Mopti, Kayes and Gao); (e) strengthening of the urban sector through the estab- lishment of new institutions and the provision of outside expertise; arid (f) an investment programming study for Bamako, and a study to prepare a possible follow-up project. Some 75 percent of the total project cost would directly benefit the urban poverty group. Project Risk: Project risks; relate to (a) institutional arrangements for project execution, (b) cost recovery, and (c) conformity of ultimate beneficiaries to the initial target population. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Estimated Costs: Local Taxes Foreign Total -----US$ million------------ Shelter Services in Bamako 3.6 0.4 1.0 5.0 Improvement in municipal sanitary conditions, Bamako 0.6 0.3 1.1 2.0 Assistance to the informal sector, Bamako 0.3 0.1 0.1 0.5 Essential services in secondary cities 0.2 0.1 0.3 0.6 Advisory services for project implementation 0.6 0.0 2.1 2.7 Studies - - 0.9 0.9 Assistance to Institutions 0.2 0.1 0.3 0.6 Contingencies 1.3 0.2 _1.5 3.0 Total Project Costs 6.8 1.2 7.3 15.3 Financing Plan: Local Taxes Foreign Total --------------US$ million-------------- IDA 4.7 - 7.3 12.0 Government 2.1 1.2 - 3.3 Total 6.8 1.2 7.3 15.3  - iii - Estimated Disbursements: Fiscal Year Annual Cumulative --------------US$ Million--------------- 1980 1.18 1/ 1.18 1/ 1981 2.67 3.85 1982 5.30 9.1i 1983 2.85 12.00 Economic Rate The combined economic rate of return for upgraded, and of Return: sites and service areas, which represent 42 percent of project costs, is 22 percent. Rates of return were not computed for other project components due to difficulty in quantifying their benefits. Appraisal Report: No. 2444--MLI MAP: IBRD 13985 to 13987, 14017, 14019 and 14108 1/ Includes disbursements under PPF prior to 1980.   INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE IDA TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF MALI FOR AN URBAN DEVELOPMENT PROJECT 1. I submit the following report and recommendation on a proposed credit for the equivalent of US$12 million on standard IDA terms to the Republic of Mali to help finance a proposed urban development project. US$6 million of the proceeds of the credit would be relent to the District of Bamako and the Municipality of Mopti for 23 years, including 3 years of grace, with interest at 7.5 percent per annum. PART I - THE ECONOMY 2. A report entitled an "Economic Memorandum on Mali" (1134a-MLI) was distributed to the Executive! Directors on January 5, 1978. The following paragraphs are based on that report and the findings of subsequent staff visits. Country data are ccontained in Annex I. 3. With a population of about 6.3 million and a per capita GNP of US$130 in 1.978 Mali is one cof the poorest countries of Africa and among the 29 least deve].oped countries identified by the United Nations. It is handicapped by serious obstacles to development. The extreme variability of rainfall causes sharp fluctuations in crop and livestock production. Access to foreign markets is made difficult by its landlocked position and the long distances - more than 1000 km - to the nearest seaports, Abidjan and Dakar. Development is also constrained by the substantial internal distances (the country covers an area of 1.24 million km2) and by the shortage of skilled manpower and the narrow domestic market for industrial products. About 90 percent of the popu- lation depends for a livelihood on crop farming, animal husbandry, forestry and fishing. Exports consist almost entirely of agricultural commodities and livestock. 4. Over the fifteen years following independence, economic growth has barely kept: ahead of the growth of population. During the 1960s, GDP in real terms increased at an average annual rate of 2.8 percent. During the drought of the early seventies, GDP declined and Mali's problems were further aggra- vated by international inflation, excessive credit expansion and growing budget and balance of payments deficits. The Government has initiated action to redress major financial imbalances through credit restraint, through some reduction of the subsidy element in the prices of essential consumer goods, fertilizers and agricultural !quipment, and through improved tax collection. Good crop seasons in 1975, 1976 and 1977 facilitated the implementation of these measures and contributed to an average annual growth rate for the 1970-77  -2- period of 5 percent per year. In 1978, another drought year, Mali experienced a 3 percent decline in GDP. However, as a result of a good 1978-79 crop season, real growth in 1979 is expected to be around 5 percent. The Drought Years: 1972-1974 5. All economic sectors were in varying degrees affected by the drought of 1972-1974, and the recovery of these sectors has followed different pat- terns. The full extent of loss of human life resulting from the drought is not known but it was particularly severe among nomadic groups and espe- cially the young and elderly. With respect to the cattle herd, estimated 5.5 million head in 1971, it was reduced by 15 to 20 percent. 6. In an effort to maintain essential supplies at a sufficient level, the Government resorted to large imports of cereals, only partly financed by external aid, and to consumption subsidies. Thus cereal imports shot up from 64,000 tons in 1972 to 235,000 tons in 1974, and the resource gap widened to nearly one-third of GDP in 1974. To finance losses incurred by state enter- prises in charge of imports and sales of subsidized goods, growing amounts of bank credit were used. The GDP deflator, reflecting subsidization through officially controlled prices, increased at an annual rate of only around 5-6 percent between 1970 and 1974, although prices in the open market had risen more steeply after the onset of the drought. Because supplies of exports were affected by the drought, export receipts did not increase as much as the favorable world prices would have permitted, and the policy of price containment and subsidization translated into very large external deficits. These years, apart from imposing appalling human suffering on important segments of the Malian population, left an unfortunate legacy on Mali's public finances. Uneven Recovery: 1975-1977 7. Normal rainfall resumed in 1975, and real GDP increased by 12.7, 9.0 and 7.4 percent respectively for the following three years. The resource gap was reduced from one-third of GDP in 1974 to 10 percent of GDP in 1977. Over the same period, net foreign assets declined from minus MF 83.7 billion to minus MF 92.4 billion (US$184 million). Public dissaving continued as growth of revenues lagged behind rapidly rising expenditures, particularly expenditure on personnel. The wage bill increased because of cost of living adjustments and the policy of Government to serve as employer of last resort of nationals who complete secondary or higher education. Current revenues did increase significantly as a result of efforts to improve tax collection, but not enough to keep pace with rapidly growing expenditures. Nevertheless, the current budget deficit decreased from MF 8.6 billion in 1975 to MF 5.8 billion in 1977, or about 12 percent of total current revenues. 8. In 1976 and 1977, improvement in GDP growth continued, largely as a result of a good harvests, but also because of continued growth in the secondary sector.  - 3 - 9. Credit expansion in 1976 was reduced sharply from 1975 levels, with an overall increase in outstanding indebtedness of the economy to deposit banks amounting to about 20 percent, as compared with 47 percent growth rate in 1975. However, it must be recognized that much of what is included under "credit to the economy" in effect finances operating losses of public enter- prises. (When substantial improvements in indebtedness have taken place, such as in 1976/77, they have largely been attributable to the export earnings of SOMIEX, the state export monopoly.) At the beginning of 1975 the Central Bank discount rate was raised from 3.5 to 6.0 percent with corresponding increases in the whole set of borrowing and lending rates of deposit banks. And a new banking law, providing for legal minimum cash reserve and liquidity ratios has recently been promulgated. This took place within the framework of a new monetary agreement with France in mid-1977. This agreement aims at bringing about the conditions requisite for Mali's membership in the West Africa Monetary Union by 1981, imposing a very restrictive credit policy on the operations of the Central Bank, notably in establishing more stringent conditions on rediscount facilities, thereby precluding the financing of operating losses of state enterprises, one of the most persistent drains on Mali's economy. 10. During 1978, credit to the economy grew by nearly 25 percent, mainly because of a sharp increase in seasonal credit to finance the larger 1978/79 crop, and also because of the substantial rise in non-seasonal credit to the commercial and industrial sectors, the former largely for increased import financing, and the latter to the state enterprise sector, often to finance operating 'Losses. With respect to public finances, the 1978 current deficit is estimated at MF 4.5 billion; including capital expenditures, the deficit amounts to nearly MF 8.0 billion. As in the past, most of the increse was for wages and salaries (9 percent). 11. The 1978 current account balance registered a substantial decline compared to 1977, moving from a surplus of US$12.8 million to a deficit of US$74.5 million. In large part this came about because of a US$20 million increase in cereals imports (about half of which was financed by foreign grants), and a US$33 million drop in exports of cotton, due both to a sharp drop in exlport unit values of cotton and a two-thirds drop in groundnuts exports resulting from a sharp reduction in marketings of the latter crop. On the capital account, net long-term capital flows increased by US$28 million in 1978, to a level of US$68.6 million, or almost six-fold since 1975, so that the overall deficit was only US$9.3 million, as compared with US$51.6 million in 1975. Most of the deficit was financed by increases in the operations account with the French Treasury, bringing it to an operating balance of MF 35.7 billion. Foreign capital and debt 12. Public investment is mainly financed by foreign aid. During most of the sixties the USSR and the People's Republic of China were the most important aid donors. At the end of 1975, they held in roughly equal pro- portions nearly 57 percent of Mali's external public debt disbursed and  - 4 - outstanding. Gross disbursements (grants and loans) from DAC sources increased from US$24 million in 1969 to US$127 million in 1974. Roughly 60 percent came from bilateral sources (mainly France, United States, Germany and Canada). Since the early seventies the amount of public aid received by Mali has increased very rapidly and grants account for most of the increase. 13. Mali's external public debt outstanding at the end of 1977 (exclud- ing drawings on the operations account with the French treasury) was US$570.5 million, including an undisbursed amount of US$193.4 million. IDA's share in the total amount disbursed and outstanding was 19.5 percent. Repayments of principal and interest due in 1977 would have claimed more than a quarter of foreign exchange earnings, but actual debt service payments have been small, about 2 percent owing to the rescheduling since 1970 of Chinese, Russian and some other debts. However, projections indicate that the actual debt service ratio may go up to about 19 percent by 1980 unless some further rescheduling of debt takes place,which is probable. In transactions with the IMF, Mali drew SDR 5.0 million under the 1974 oil facility and obtained another credit of SDR 3.99 million (in March 1976) under the 1975 oil facility. In addition, Mali borrowed US$4.6 million from the IMF trust fund facility in January 1978. Development prospects 14. The return of more normal weather conditions in 1975 strengthened the economy's short run position, at least through 1977. However, the poor harvest of 1977/78 represented a set-back in Mali's development prospects and, together with weaknesses in the export crop sector, may have retarded some necessary improvements in Mali's economic management. In any event, over the medium and long term Government must address two sets of interrelated objectives. The first is to correct the profound financial imbalances that have developed over the years, especially since the early seventies; the second is to accelerate the pace of economic growth against a background of minimal improvement in per capita income since 1960. 15. Government began in 1975 to tackle some of its financial problems and has been relatively successful in readjusting some key prices to more realistic levels. Thus, incentives to agricultural production are stronger, consumer prices more closely reflect economic costs, the burden of subsidies has been somewhat alleviated and credit expansion has slowed since official prices to producers and consumers have failed to keep pace with rising costs. Reform of public enterprises is being undertaken, but is unavoidably a very gradual task and much remains to be done, particularly in the area of cereals marketing. The budget is still basically unbalanced, but Government is now seriously reconsidering its employment policy with a view to make it more selective so as to check the growth of current expenditure; yet this is clearly a longer-term project. 16. Prospects for real long-term growth are probably better than in most other Sahelian countries. Agriculture has considerable potential for expansion both in the south where rainfed agriculture meets relatively favor- able conditIons and in the vast inland delta of the Niger river. The river  -5 - also offers much potential for power development. Planned investment in new capacity for cotton seed oil extraction, cotton textiles for export, and in sugar production, together with increasing crop and livestock production, will eventually strengthen the balance of payments. Mineral resources (iron ore, phosphates) remain at present unexploited, but may offer interesting longer term development possibilities. 17. 'Che Five-Year SociLal and Economic Development Plan (1974-1978) gave priority to agriculture, water and power development, industries proces- sing agricultural materials, and road transport. The overall size of the investment program is estimated at MF 543 billion (about US$1.2 billion). Altogether MF 427 billion of- this total was expected to be realized during the plan period; in mid-1977, the latest date for which data are available, total investments realized amounted to MF 122 billion. The problem is more one of implementation than financinig with continuing delays being encountered in project preparation and execution, particularly at startup. Project financing, on the other hand, is reasonably well advanced, with MF 429 billion having been received or firmly committed. With regard to investments being under- taken under the revised plan (revisions having been made in 1976 and 1977), priority is currently being given to food crops, animal husbandry, minor irrigation works and more efficient manufacturing activities. 18. Despite the fact that economic performance since the drought has been largely good, sustained and viable growth in the longer run depends crucially on investments and policy measures that will strengthen the economy's export base, particularly in cash crops. Mali's capacity to finance new investment, however, is severely constrained by the limited savings potential resulting from the extremely low per capita income level, a situation reflected in the Government's budget and further complicated by serious financial difficulties particularly in the public enterprise sector. Borrowing on conventional terms would add considerably to the burden of servicing an already sizeable external debt. External aid, accordinglv, should be on soft terms and should finance, besides foreign exchange outlays, a significant proportion of local currency costs. PART II - WORLD BANK GROUP OPERATIONS IN MALI 19. The proposed credit would be the Association's eighteenth operation in Mali, which would bring total commitments of IDA funds to US$165.2 million. US$84.9 million had been disbursed as of April 30, 1979. Of the seventeen credits already approved, six have been for transport, eight for agriculture, two for education and one for telecommunications. Agriculture represents the largest share (48 percent) of past commitments followed by transportation (41 percent). Experience with ongoing operations has in general been satisfactory. Notes on the execution of ongoing projects are set out in Annex II. 20. The Bank Group's strategy in Mali is governed by the extreme poverty of the country and the need to raise productivity in agriculture, on which  90 percent of the population depends for a livelihood. Thus major objectives of Bank lending in Mali focus on the promotion of agricultural and rural development and on the provision of adequate infrastructure facilities. Agri- cultural and rural development projects cover most of the country's cultivable area and benefit the majority of farm families. Basic infrastructure is being developed with the assistance of IDA projects in road and railway con- struction and maintenance, and in telecommunications. In education the focus is on providing appropriate basic and secondary education and vocational training. In the urban sector, the Bank's focus would be on providing low- cost replicable urban services for a growing urban population. PART ITT - THE URBAN SECTOR 21. Mali, one of the poorest countries in the world, faces accelerating urban growth. Whereas Mali's population is increasing at 2.5 percent per year, its urban population is growing at 4.5 percent annually. Nearly 14 percent of its 1978 population of 6.6 million was urban. Bamako, the capital of the country, now has about 470,000 residents, or about half of the country's urban population, and has been growing at about 8.7 percent per year since 1965. Bamako could reach 2 million by the year 2,000, nearly 5 times its present size. 22. Growth in Mali's secondary centers is also rapid. While small relative to Bamako, six urban areas with populations over 30,000 are growing at 4.3 percent annually: Segou (72,000); Mopti (62,000); Sikasso (52,000); Kayes (50,000); Gao (33,000) and Koutiala (30,000). Urbanization trends indicate that these cities will at least double their population by the year 2000. Of the six cities, Government is particularly concerned about the role of Mopti, Kayes and Gao in national economic development and has requested that these cities be included, along with Bamako, in the first urban develop- ment project. Bamako Urban Environment 23. A shortage of housing affects all income levels with the burden of the shortfall on the poorer residents. Privately built housing in the formal sector is only affordable by the higher income groups, and is not built in sufficient numbers to meet the demand, intensifying speculation. The high costs of imported building materials, particularly cement and corrugated roofing, are deterrents to increasing the private housing stock. The Govern- ment is seeking to remedy the situation by promoting the use of improved local building materials. 24. Deficient infrastructure services are a major problem. Bamako's residents are poorly served by the water system, and have only limited access to potable water. The sewer system serves less than 10 percent of the popula- tion, and the lack of sanitation facilities in many schools and market areas constitute a considerable health hazard. Whereas Bamako's population produces  about 270,000 m3 of solid waste yearly, the Distri5t's maintenance office has a solid waste collection capacity of only 90,000 m per year. Uncollected waste is dumped either into the streets or into drainage ditches, accumulating into mounds of garbage that breed a host of diseases. In addition, almost all roads in Bamako are in very poor condition, which hampers even minimal collec- tion of garbage. Storm water drainage is provided for by a well-conceived, but poorly maintained network of lateral open ditches in the older sections of the city; newer areas are not served at all. The poor condition of the system, cotupled with the water disposal problem are major factors in the deteriorating quality of the urban environment. One result is a high i-cidence of malaria, which is the major cause of death among children under five. 25. T'he urban poverty threshold for Mali is MF 30,000 (US$69) per household per month. Approximately 40 percent of Bamako's households have incomes below this level. Government and state enterprises dominate the urban employment base, but the government payroll is severely burdened, and it is unlikely that the public sector will increase rapidly enough to absorb the growing numbers seeking income-earning opportunities in the city. In the absence of a sizeable and vigorous formal private sector, the informal sector, accounting for nearly 50 percent of total employment, represents a potentially attractive, albeit limited area for employment growth. Mopti, Kayes and Gao Urban Environment 26. Sanitation is the most urgent problem facing Mopti, in a context of extreme poverty and limited Government resources. The storm drainage network serves only 30 percent of the city, contributing to severe flooding in the rainy season. When the water level of the Bani River rises, the old and the new parts of the city become two islands connected by a road strip. Solid waste is not collected except in the commercial zone, forcing most of the population to dispose of its; garbage outside the city limits or in low-lying areas of the city, posing serious health problems when there is flooding. There is no waterborne sewerage system, with most of the modern buildings relying on septic tanks which are periodically but infrequently emptied by the municipal sanitation service. The mud-brick houses use pit latrines. 27. Inadequate water supply is a particularly serious problem in Kayes and has been aggravated by recent breakdowns of the intake works. Nearly 15 percent of the town's population lives in the rapidly growing Ndi area, which has no access to potable water. 28. Gao, the capital of the 7th region, Mali's most arid zone, also faces serious water supply problems. These are related to production as well as distribution of water, problems which are heightened by a large influx of temporary residents and cattle during the dry season. This temporary migration doubles the town's population of 33,000. Only about 1/3 of the residents have access to a piped water supply. The remainder is forced to seek water at the few available wells in the town.  - 8- Government Responses to Urban Needs 29. Given the projected level of urban growth, the extreme poverty, and the difficulty to reverse these trends in the short term, Government faces a major dilemma in responding to the needs of its urban population. It is increasingly realizing that the urban sector cannot compete for scarce re- sources with the countryside, but must support and promote productive growth in the rural areas. Thus, it is willing to examine the issues of cost recovery standards and the capacity to pay of its urban households. As a first step, this project will explore low cost, replicable solutions to the provision of urban services. Government has also acknowledged that public institutions that are responsible for providing urban services face serious financial and manpower problems, which must be solved if they are to be effectively respon- sive to increasing demand. In this context, Government is undertaking several actions which will assist the District of Bamako in meeting its responsibil- ities. These include: (a) further elaboration and completion of a schematic plan for the Bamako area; (b) revision of tenure legislation and elaboration of a land management policy; and (c) a detailed review of the institutions in the sector. With regard to urban services, project identification and prepa- ration efforts are under way for urban roads, water supply and electricity. PART IV - THE PROJECT 30. An IDA mission identified the project in 1976 and a feasibility study was submitted in 1978. The project was appraised in October 1978. Negotiations were held in Washington from May 7 to 14, 1979. The Mali delegation was led by Mr. Sekou Ly, the Minister of Interior. The Appraisal Report (No. 2444-MLI) is being circulated separately to the Executive Directors. Annex III contains supplementary project data. Project Objectives 31. The project would assist the Government in providing affordable urban services, particularly shelter, water supply, garbage collection, drainage, schools and health care to low income urban residents. To enable replicability and maintenance of project components, cost recovery will be a major goal. 32. The specific objectives of the project will be to (a) provide shelter services and related community facilities to meet about half of the growth in demand for low income groups in Bamako, (b) improve health and sanitary conditions in Bamako, (c) stimulate productive employment through financial assistance to the informal sector and the promotion of local build- ing materials, (d) provide essential water and sanitation services to secon- dary cities, and (e) establish and strengthen institutions that deal with the urban sector, particularly the Bamako regional Directorates of Habitat and Taxes, the Land Management Agency and the District Housing Directorate and Technical Services Directorate.  -9- Project Description 33. The proposed project, to be carried out over a three and one half year period (1979-1983), consists of: (a) Shelter Services, Bamako: (i) upgrading of the squatter neighborhood of Ma,gnambougou through the provision of basic infrastructure (water supply, drainage, roads), community facilities (12 classrooms, a health center and a retail market) for 22,000 people and home improvement loans to plotholders; (ii) preparation and servicing of new lots adjacent to the area being upgraded, and covering about 100 ha. Services include public water standpipes, drainage, street lighting, roads and community facilities (12 class- rooms and a retail market). (b) Improvement in municipal sanitary conditions, Bamako: provi- sion of vehicles and equipment for garbage collection, repair and maintenance of drainage ditches, repair and extension of the public standpipe system, and provision of public lavatories. (c) Assistance to the informal sector, Bamako: provision of retail market facilities; credit (workshop construction and equipment loans) to artisans who are beneficiaries of lots under the project; and promotion and development of the use of local building materials. (d) Essential services in secondary cities: provision of equipment for sewage and garbage collection in Mopti and improvements in water supply and distribution in Gao and Kayes. (e) Advisory services for project implementation: technical assistance for: (i) the Project Unit; (ii) aerial surveys to prepare cadastral survey for a new municipal tax system; and (iii) auditing of project accounts. (f) Assistance to Institutions: provision of vehicles, office materials and equipment for the Project Unit, the Bamako Land Management Agency (CAFOBA), and the Regional Director- ate of Taxes and D)omain of the District of Bamako. (g) Studies: provision of consultant services for: (i) an investment programming study for the District of Bamako; and (ii) preparat:Lon of a possible further urban project. Project Execution 34. The Ministry of Interior would have overall responsibility for pro- ject implenentation. A Project Unit would be established in the Minister's office to coordinate, monitor and supervise project implementation. The Project Director, who would be head of the unit, would report directly to the Minister  - 10 - and would lead a team working in the various executing agencies (see para. 35). In addition to local administrative staff, the Project Unit would be assisted by six internationally recruited experts - an administrator, systems analyst, municipal management expert, municipal engineer, mechanic and local building materials expert (Section 3.01(b) and Schedule 4 of the Credit Agreement). 35. Responsibilities for individual project components are summarized below: Executing Agency Component 1. Minister of Interior Technical assistance. Project Unit. 2. District of Bamako (i) Regional Directorate of Planning, design, detailed Habitat engineering and supervision of on-site infrastructure works, schools, health facilities and markets. (ii) Regional Directorate of Land registration, establishment Taxes and Domain of the Land Management Agency and new municipal taxes. (iii) Regional Directorate of Off-site water, electricity and Water Resources and Energy drainage, main drainage outlets. (iv) District Technical Services Reorganization of District Directorate services, garbage collection, clearing and repair of drainage ditches, repair of standpipes, public lavatories and off-site roads. (v) District Housing Directorate Pre-selection of beneficiaries, recovery of lot charges, building loans and credit to artisans. 2. Municipality of Mopti Sewage and garbage collection. 3. Directorate of Water Resources and Water supply, Gao. Energy (7th Region) 4. Directorate of Water Resources and Water supply, Kayes. Energy (1st Region) 5. National Directorate of Habitat Project preparation, investment Ministry of Public Works programming study and second project study; development of local building materials.  - 11 - 36. As part of the institution building effort under the project, a Land Management Agency (CAFOBA) would be set up to manage all state owned land in the Bamako region. It would be an autonomous agency under the tutelage of the Ministry of Finance. The phased establishment of CAFOBA will be monitored by the Project Unit (Section 3.03 and Schedule 5 of the Credit Agreement). Technical Assistance 37. Provisions have been made under the project for 313 man-months of consultant services at an average cost of US$11,00 per month excluding con- tigencies (salaries and related benefits are US$3,000 per month). Of these, the Project Unit would utilize 228 man-months. The remaining 85 man-months have been retained for the preparation of the studies mentioned in para. 33(g) above (Section 3.06 and Schedule 1 of the Credit Agreement). Allocation Procedures 38. At present, the land in Magnambougou belongs to the State, but it will be transferred to the District of Bamako before lots are allocated. Residents in the upgrading area will be given 20-year leaseholds with option to pu5chase. I4 the sites and services area, where lot sizes can range from 160 m to 500 m , the majority of lots would be allocated by lottery and leased to beneficiaries for 20 years with a lease-purchase contract. Only the largest lots (50 lots of 500 m2) would be sold freehold. The lease will require that a house be erected on a lot and will specify the period within which it should be built (one year) and that the beneficiary live on the lot. Beneficiaries wishing to sell or transfer lots in the sites and services area within the lease period will return the lots to the District Housing Directorate and receive compensation for improvements made (cost of material plus an imputed cost for labor). In case of default the Housing Directorate would repossess lots and buildings (Section 3.02 and Schedule 6 of the Credit Agreement, Schedule 1 of the Project Agreement). Cost Recovery Arrangements 39. The following principles of cost recovery would be applied to the various elements of the project: (a) costs which are ordinarily recovered through user charges or tariffs will be similarly recovered (e.g., primary infrastruct:ure for water, electricity, markets); (b) urban services provided by the Dist:rict will be recovered via special taxes (e.g., garbage collection, street cleaning, water from standpipes); and (c) all site development related costs (on-site infrastructure, building loans, design, engineering and super- vision) are borne directly by beneficiaries. It is expected that 60 percent of total project costs will be directly recovered. Unrecovered costs represent mainly teclnical assistance and studies (30 percent) and primary infrastructure (10 percent:). Lot charges in the sites and services area would vary in price according to location, accessibility, size and form of tenure. Leasehold lots would be sold at prices varying from slightly below cost to slightly above cost. Freehold lots would be sold at market prices. Development costs are estimated  - 12 - 2 at US$3.20 per m . A downpayment of 10 percent would be required on leasehold lots in the sites and services area. Beneficiaries would also be entitled to a construction loan at 12 percent per annum over a maximum of 20 years. Recovery of the costs of retail markets will be through stall fees based on current market rates, which are sufficient to recover costs over ten years at 12 percent interest rate. Loans to artisans for construction of workshops and to finance purchases of materials or small equipment and tools would be at 12 percent interest, repayable over ten years, for construction loans, and over three years for materials and tools (Section 3.05 and Schedule 6 of the Credit Agreement, Section 2.09 of the Project Agreement). Cost Estimates and Financial Arrangements 40. The total cost of the project including contingencies is estimated at US$15.3 million. Taxes account for US$1.2 million. The proposed IDA credit of US$12.0 million would finance 85 percent of project costs excluding taxes and would cover 100 percent of estimated foreign exchange costs (US$7.3 million) ar.d 78 percent of local costs excluding taxes and land. The Government would provide the balance of US$3.3 million or 20 percent of the total costs. Government would make the proceeds of the IDA credit and its own contribution available to the various executing agencies as loans (50 percent) or budget allocations (grants). In addition to the Project Agreement between the District of Bamako, the Municipality of Mopti and IDA, subsidiary loan agreements would be entered into between Government and the District and Mopti, respectively. Terms of the subsidiary loans will be 7.5 percent interest repayable over 23 years including a 3-year grace period. The sub- sidiary loan agreements will cover all funds on-lent by Government, and which relate mainla to the sites and services and upgrading components and to the improvement rf municipal services. The balance of project costs, which relates to items for which costs are not normally recovered ,lirectly from beneficiaries, e.g. technical assistance, studies, primary infrastructure, health and educational facilities and water supply in Gao and Kayes would be granted to exec.ting agencies by budgetary allocation (Sections 3.01 (c) - (e) and 7.02 of the Credit Agreement). 4i. To ensure prompt availability of counterpart funds, Government would establish a fund of US$230,000 at the beginning of the project. It is proposed that these funds be deposited in a special project account in the name of the Project Unit as an additional condition of effectiveness of the credit (Section 7.01(b) of the Credit Agreement). Procurement 42. Contracts for a total value of US$4.7 million will be let on the basis of international competitive bidding, in accordances with IDA guide- lines for the procurement of: (a) eq-ipment and vehicles for (i) improvement of municipal services 1c Bamako (US$1.5 million), (ii) municipal services in Mopti (IJ3$0.2 million), (iii) water supply in Kayes (US$0.1 million), and  - 13 - (b) civil works for major contracts for (i) on-site infrastructure for Magnambougou sites and services (US$1.4 million), (ii) on-site infrastructure for Magnambougou upgrading, (US$1.0 million), and (iii) off-site water supply for Magnambougou (US$0.5 million). A margin of preference of 15 percent or the applicable customs duty, which- ever is lower, will be applied to domestic bidders offering domestically manufactured goods. Local contractors will be given a preference of 7.5 percent in the evaluation of tenders for civil works. 43. Contracts totalling US$2.5 million, for civil works for municipal services, community facilities, and secondary cities components, which would not be attractive to foreign suppliers or contractors, and estimated to cost less than the equivalent of US$400,000 each, would be procured on the basis of local competitive bidding procedures, which are satisfactory to IDA. Small equipment items costing less than US$50,000 each, which will not in the aggregate total more than US$800,000 will be purchased after solicitation of quotations from at least three suppliers. Labor for the clearing/repair of drainage ditches, and repair of standpipes will be provided by the technical services of the District. Disbursement 44. Disbursement of thie IDA credit will be made on the following basis: (i) 70 percent of expenditures for civil works; (ii) 100 percent of foreign expenditures for equipment, vehicles and materials or 80 percent of local expenditures; (iii) 100 percent of expenditures on loans to beneficiaries for construction and on credits to artisans; and (iv) 100 percent of expendi- tures for consultant and advisory services. Retroactive financing totalling US$450,000 would cover costs relating to setting up the Project Unit. Dis- bursements will be fully documented, except for loans to beneficiaries under (iii) where disbursements will be against a certified statement of expendi- tures for which the documentation will be retained by the executing agency. These expenditures will be reflected in separate accounts which will be audited by independent auditors acceptable to the Association semi-annually within six months of the endl of each semi-annual period. An advance of US$240,000 from the Project Preparation Facility was made to prepare the Project during 1978 and a further advance of US$240,000 was made to continue project preparation for the rest of 1978 and in 1979. Both advances will be refunded upon the effectiveness of the credit (Section 2.02(b) of the Credit Agreement). Benefits, ]?overty Impact ant Affordability 45. The project would have an important demonstration effect, parti- cularly with regard to: (i) cost recovery; (ii) least cost solutions for services provided; (iii) the use of indigenous building materials; and (iv) improvement of the tax base of the city. Direct benefits would arise from: (a) the provision of low cost essential services in the upgrading and sites and services areas; (b) the improvement of sanitary conditions in Bamako; (c)  - 14 - employment generation in the artisan and building materials sectors; and (d) the provision of improved water supply and sanitary conditions in secondary cities. The cost recovery mechanisms described in paragraph 39 are expected to generate surpluses to the District Housing Directorate (cumulative total US$1 million by 1985) which would be used to finance similar projects in the future (Schedule 1 of Project Agreement). 46. The project is expected to have particular impact on the urban poor. The shelter services component will benefit 32,000 of the estimated 100,000 urban poor in need of shelter services in Bamako. Approximately 80 percent of beneficiaries in the sites and services area, and 60 percent of beneficiaries in the upgrading area, are below the poverty level for urban households. The improvement in municipal services will have a broad impact on the urban poor, who represent about 50 percent of the beneficiaries from this component. An estimated 75 percent of the total project cost would directly benefit the urban poverty group in terms of goods and services. Of the credit amount of US$12 million, urban poverty lending is 75 percent, or US$9 million. 47. In the sites and services area the minimum lot option plus a con- struction loan sufficient to self-build two rooms in banco (adobe) would be affordable to about 85 percent of the population of Bamako. Total project cost per household for all improvements averages US$710 in the upgrading area and US$1,110 in the sites and services area. Per capita costs are US$88 and US$138 respectively. Half of the beneficiaries would be selected from house- holds with incomes between the 15th and 35th percentiles of income in Bamako, and 85 percent of the beneficiaries would have incomes below the median city income. For the lowest income groups no more than 18 percent of income would need to be allocated for housing. Monthly payments for the upgrading area would amount to about 7 percent of income, or 8 percent if a house improvement loan is included. The smallest lot will be affordable by the 5th percentile. The table below sets out cost and affordability under the project:  - 15 - Cost and Affordability (mid-1979 prices) -------------- Typical Plot and Loan Options ------------- Sites and Services Upgrading Plot size: 160 m 374 m Min. (100 m ) Max. (500 m ) Services: Communal Communal Communal Communal Materials loans: Yes Yes Yes Yes 1. Cost to purchaser (US$/hh) 595 1,440 195 970 2. Total monthly payments (US$/hh) 6.6 16 2 7 3. Minimum monthly income required (US$/hh) 36 72 19 67 4. Lowest income percentile reached 15,th 42th 5th 35th 5. Number of house- holds benefitting (Total) 2,620 221 500 300 48. A total of about 9100 jobs are expected to be generated in the project areas by the assistance to the informal sector. The average incre- mental cosi: per job is estimated at about US$760. This cost is below the urban poveirty capital/labor threshold for Mali (US$900). Rate of Reiturn 49. The economic rates of return were calculated for upgraded, and sites and service areas, using expected increases in rental values brought about by the improvements made under the project. The sites and services component would yield an estimated economic rate of return of 19 percent and the upgrading component 26 percent. The combined economic rate of return of both components, which represent 42 percent of project costs, would be 22 percent. Rates of return were not computed for other project components due to difficulty in quantifEying their benefits. Risks 50. As the first urban development project in Mali, the project has a number of features which ;are subject to risk, although Government has expressed its commitment to these initiatives. Three main areas of risk can  - 16 - be identified: (a) the institutional arrangements for project execution, (b) cost recovery, and (c) con'ormity of the ultimate beneficiaries to the initial target population. 51. Regarding the institutional arrangements, the complexity and multi- sectoral nature of the project will require efficient management and close coordination among the different executing agencies. To reduce coordination problems and to ensure efficient management, responsibility for the project has been centralized under the Minister of Interior aided by a Project Unit that will report directly to the Minister. It will be supported by appro- priate technical assistance to strengthen the institutions involved in project execution. 52. The replicability of the project depends upon effective implementa- tion of the cost recovery mechanism. The introduction of lot charges and building loan repayments is relatively new to the population groups to be served by the sites and services and upgrading components. Surveys and discussions with project communities indicate, however, that beneficiaries are prepared to pay for security of tenure and the provision of essential services. The District Housing Directorate will have to work closely with the local community to ensure recovery of costs. Failure to collect the proposed taxes will result in lower standards of service, inability to meet debt repayment obligations and a need for subsidies from the central Government. The importance attached to the rapid introduction of the new taxes cannot therefore be overemphasized. However, the risk is considered worth taking in view of the expressed willingness to pay for improved services and the oppor- tunity that the new taxes provide for reducing state subsidies to the urban sector. 53. As regards conformity of the ultimate beneficiaries to the initial target population for the sites and services component, project design reduces risks to an acceptable level by both (a) short, and (b) long-term measures. (a) In the short-run - (i) site location (both social and spatial), lot size, level of services and type of tenure, would be des:igned to respond to needs of the low-income population and lots are not expect'ed to be taken up by higher income groups; (ii) the proposed project will itself satisfy about half of new land demand arising during execution; (b) In the long run the institution building component proposed under the project will greatly assist the Government in increasing the supply of urbanized land. PART V - LEGAL INSTRUNENTS AND AUTHORITY 54. The draft Development Credit Agreement between the Republic of Mali and the Association and the Recommendation of the Committee provided for in Article V, Section 1 (d) of the Articles of Agreement of the Association are being distributed to the Executive Directors separately.  - 17 - 55. Features of the Development Credit Agreement of special interest are listed in Section III of Annex III. Special conditions of effectiveness of the IDA credit are (Section 7.01 and 7.02 of the Credit Agreement): (a) establishment by Government of a fund of US$230,000; (b) ratification of the Project Agreement by the District of Bamako and the Municipality of Mopti; and (c) ratification by Government of the subsidiary loan agreement between Government and the District of Bamako. 55. 1 am satisfied that the proposed Development Credit would comply with the Articles of Agreement of the Association. PART VI - RECOMMENDATION 56. ] recommend that the Executive Directors approve the proposed Developmenl: Credit. Robert S. McNamara President Attachments June 12, 1979  - 18 - Annex r TABLE 3A Page 1 of 5 MALI - SOCIAL INDICATORS DATA SHEET REFERENCE GROUPS (ADJUSTED AVERAGES MALI ft LAND AREA (THOUSAND SQ. KM.) - MOST RECENT ESTIMATE) TOTAL 1240.0 SAME SAME NEXT HIGHER AGRICULTURAL 417.2 MOST RECENT GEOGRAPHIC INCOME INCOME 1960 lb 1970 Lb ESTIMATE Lb REGION /c GROUP /d GROUP Le GNP PER CAPITA (US$) 40.0 70.0 110.0 223.6 182.9 432.3 ENERGY CONSUMPTION PER CAPITA (KILOGRAMS OF COAL EQUIVALENT) 15.0 21.0 25.0 86.7 88.9 251.7 POPULATION AND VITAL STATISTICS TOTAL POPULATION, MID-YEAR (MILLIONS) 4.1 5.0 6.0 URBAN POPULATION (PERCENT OF TOTAL) 9.9 12.1 13.4 13.6 15.0 24.2 POPULATION DENSITY PER SQ. KM. 3.0 4.0 5.0 18.4 46.8 42.7 PER SQ. EM. AGRICULTURAL LAND 11.0 12.0 14.0 53.6 254.1 95.0 POPULATION AGE STRUCTURE (PERCENT) 0-14 YRS. 42.2 49.1 04.0 44.4 43.6 44.9 15-64 YRS. 54.5 49.3 53.3 52.7 53.3 52.8 65 YRS. AND ABOVE 3.3 1.6 2.6 2.8 2.9 3.0 POPULATION GROWTH RATE (PERCENT) TOTAL 1.9 2.1 2.5 2.6 2.4 2.7 URBAN 2.8 4.3 4.5 5.8 4.0 8.8 CRUDE BIRTH RATE (PER THOUSAND) 50.1 49.6 50.1 46.9 44.3 42.2 CRUDE DEATH RATE (PER THOUSAND) 32.4 27.8 25.9 20.6 19.7 12.4 GROSS REPRODUCTION RATE 3.8 3.3 3.3 3.1 2.9 3.2 PAMILY PLANNING ACCEPTORS, ANNUAL (THOUSANDS) .. .. .. USERS (PERCENT OF MARRIED WOMEN) .. .. .. 2.5 14.6 14.2 FOOD AND NUTRITION INDEX OF FOOD PRODUCTION PER CAPITA (1970-100) 95.0 100.0 113.0 94.2 96.4 104.3 PER CAPITA SUPPLY OF CALORIES (PERCENT OF REQUIREMENTS) 90.0 88.0 95.0 90.1 92.3 99.5 PROTEINS (GRAMS PER DAY) 66.0 69.0 .. 55.2 50.0 56.8 OF WHICH ANIMAL AND PULSE .. 23.0 /f 12.5 17.1 13.9 17.5 CHILD (AGES 1-4) MORTALITY RATE .. .. .. .. .. 7.5 HEALTH LIFE EXPECTANCY AT BIRTH (YEARS) 34.7 37.2 38.1 43.7 45.8 53.3 INFANT MORTALITY RATE (PER THOUSAND) 123.0 120.0 .. 138.4 102.7 82.5 ACCESS TO SAFE WATER (PERCENT OF POPULATION) TOTAL .. .. .. 22.4 26.4 31.1 URBAN .. 29.0 .. 66.3 63.5 68.5 RURAL .. .. .. 10.4 14.1 18.2 ACCESS TO EXCRETA DISPOSAL (PERCENT OF POPULATION) TOTAL .. 8.0 .. 23.9 16.1 37.5 URBAN .. 63.0 .. 70.3 65.9 69.5 RURAL .. .. .. 14.2 3.4 25.4 POPULATION PER PHYSICIAN 39000.0 aR 41490.0 37570.0 /h 21757.5 13432.7 9359.2 POPULATION PER NURSING PERSON 4650.0 /b._ 3860.0 2800.0 /h.1 3473.8 6983.3 2762.5 POPULATION PER HOSPITAL BED TOTAL 1490.0 /R.k 1390.0 /k 1380.0 645.4 1157.6 786.5 URBAN .. 780.0 .. 172.9 183.3 278.4 RURAL .. 1560.0 .. 1292.6 1348.8 1358.4 ADMISSIONS PER HOSPITAL BED .. 27.3 .. 19.2 19.5 19.2 HOUSING AVERAGE SIZE OF HOUSEHOLD TOTAL .. .. 4.8 4.9 5.2 URBAN .. .. .. 5.0 4.8 RURAL .. .. .. 4.7 5.3 AVERAGE NUMBER OF PERSONS PER ROOM TOTAL .. .. .. URBAN .. .. .. .. 1.8 2.3 RURAL .. .. ... . ACCESS TO ELECTRICITY (PERCENT OF DWELLINGS) Ti'ITA .. .. .. .. 25.9 28.3 .. - .. .. .. .. 8.7 10.3  - 19- Annex I Page 2 of 5 TABLE 3A MALI - SOCIAL INDICATORS DATA SHEET REFERENCE GROUPS (ADJUSTED AVERAGES MALI /a - MOST RECENT ESTIMATE) SANE SAME NEXT HIGHER MOST RECENT GEOGRAPHIC INCOME INCOME 1960 Lb 1970 lb ESTIMATE Lb REGION /c GROUP Id GROUP /e EDUCATION ADJUSTED ENROLLMENT RATIOS PRIMARY: TOTAL 7.0 20.0 22.0 52.1 62.9 75.8 FEMALE 4.0 14.0 16.0 37.6 45.9 67.9 SECONDARY: TOTAL 2.0 3.0 3.0 8.0 14.4 17.7 FEMALE 1.0 1.0 1.0 5.0 8.8 12.9 VOCATIONAL (PERCENT OF SECONDARY) 15.0 /1 40.0 25.0 7.2 6.6 7.4 PUPIL-TEACHER RATIO PRIMARY 45.0 35.0 35.0 43.2 38.5 34.3 SECONDARY 14.0 12.0 14.0 22.8 19.8 23.5 ADULT LITERACY RATE (PERCENT) 5.0 .. 10.0 20.3 36.7 63.7 CONSUMPTION PASSENGER CARS PER THOUSAND POPULATION 2.0 2.3 3.0 3.9 3.1 7.2 RADIO RECEIVERS PER THOUSAND POPULATION 2.0 12.0 13.0 40.1 31.1 71.1 TV RECEIVERS PER THOUSAND PCPULATION .. .. .. 2.2 2.8 14.1 NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION PER THOUSAND POPULATION 0.2 0.5 .. 3.9 6.0 16.3 CINEMA ANNUAL ATTENDANCE PER CAPITA 2.0 .. .. 1.2 1.4 1.6 E MPLOYMENT TOTAL LABOR FORCE (THOUSANDS) 2300.0 2900.0 3200.0 FEMALE (PERCENT) 48.0 47.4 47.1 32.6 24.2 28.0 AGRICULTURE (PERCENT) 94.0 91.0 88.7 73.3 60.7 54.1 INDUSTRY (PERCENT) 2.7 4.1 PARTICIPATION RATE (PERCENT) TOTAL 57.8 56.5 55.1 42.0 39.8 37.8 MALE 60.3 59.6 58.5 54.8 53.3 50.3 FEMILE 55.3 53.4 51.7 27.3 19.6 20.9 ECONOMIC DEPENDENCY RATIO 0.8 0.8 0.8 1.2 1.3 1.3 INCOME: DISTRIBUTION PERCENT OF PRIVATE INCOME RECE:IVED BY HIGHEST 5 PERCENT OF HOUSEHOLDS .. .. .. 25.7 20.3 19.5 HIGHEST 20 PERCENT OF HOUSEHOLDS .. .. .. 55.1 45.1 48.9 LOWEST 20 PERCENT OF HOUSEHOLDS .. .. .. 5.8 5.7 5.9 LOWEST 40 PERCENT OF HOUSEHOLDS .. .. .. 14.5 16.8 15.7 POVERTY TARGET GROUPS ESTIMATED ABSOLUTE POVERTY INCOME LEVE:L (USS PER CAPITA) UELBAN .. .. 73.0 108.8 88.5 155.9 RIIRAL .. .. 60.0 74.1 71.9 97.9 EST]MATED RELATIVE POVERTY INCOME LEVEL (US$ PER CAPITA) UEEBAN .. .. .. 124.4 100.8 143.7 RllRAL .. .. 30.0 59.6 42.0 87.3 ESTIMATED POPULATION BELOW POVERTY INCOME LEVEL (PERCENT) UELBAN .. .. 27.0 26.8 46.0 22.9 RIRAL .. .. 48.0 47.6 48.0 36.7 Not available Not 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 country in each group. Coverage of countries among the indicators depends on availability of data and is not uniform. /b Unless otherwiae noted, data for 1960 refer to any year between 1959 and 1961; for 1970, between 1969 and 1971; and for Most Recent Estimate, between 1973 and 1977. /c Africa South of Sahara; /d Low Income ($280 or less per capita, 1976); /e Lower Middle Income ($281-550 par capita, 1976); /f 1964-66; 14 1962; /h 1972; /i Government personnel, including midwives; /1 1972, governmkent only; 1k Government hospital establishments only; /1 Not including private vocational schools. September 1978  - 20 - Annex I DEFINITIONS OF SOCIAL INDICATORS Page 3 of 5 -X b The adjusted group average. for each iodicotcr ace population-weighted geometric means, excluding the extreme values of the indicator and the most populated country in each group. Coverage of count.tes among the indicators depends on availability of data and is not usifor. Due te tack of data, group averages for Capital Surplus Oil Emporters cuf liudictr,.s of access to water and excreta disposal, hoa.itog, in-on ditribution aend poverty are simple population-weighted geometric means without the exclusion of extreme values. LAND AREA (thousand sq. km) Population per hospital bed - total, urban, and rural - Population (total, Total - Total surface ares comprising laad area and inland waters, urban, and rural) divided by their respective number of hospital beds Aaricultural - Most recnat estimate of agricultural area used temporarily available in public and private geseral ard specialized hospital and ro- or permanently for crops, pasturea, market and kitchen gardens or to habilitation centers. Hospitals are establishments permanently staffed by lie fallow. at leastr one physician. Establlsh.esta providing principally ...scodial care are not included. Rural hospitals, however, include health end medi- GNP PER CAPITA (US$) - GNP pet capite estirates at current market prices, cal centers not permanently staffed by a physician (bat by a medical ao calc-lated by sane conversion method as World BSnk Atlas (1975-77 basis); sistast, nurse, idoife, etc.) vhich offer in-patient secoo-modactio and 1960, 1970, and 1977 data. provide a limited range of medical facilities. Admissions per hospital bed - Total number of admissions to or discharges ENERGY CONSUMPTION PER CAPITA - Annual consumption of commercial energy from hospitals divided by the number of beds. (coal and lignits, petroleum, netu.al gas and hydro-, sucle-r and go-