Somalia - Agricultural Extension and Farm Management Training Project

Document of > The World Bank FOR OFFICIAL USE ONLY Report No. 217Oa-SO SOMALIA AGRICULTURAL EXTENSION AND FARM MANAGEMENT TRAINING PROJECT STAFF APPRAISAL REPORT April 12, 1979 Eastern Africa Region Northern Agriculture Division This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Somali Shillings (So.Sh.) US$ 0.1589 = So. Sh. 1.00 US$ 1.00 = So. Sh. 6.295 WEIGHT AND MEASURES 2 1 hectare (ha) 2 10,000 m = 2.47 acres 1 square kilometer (km ) = 100 ha = 0.39 square miles 1 metric ton (mt) = 1,000 kg = 2,204 lbs. ABBREVIATIONS ADC - Agricultural Development Corporation ADF - African Development Fund CARS - Central Agricultural Research Station CSD - Central Statistical Department DEO - District Extension Officer DSF - Demonstration State Farm EEC - European Economic Community ETC - Extension Training Center FEA - Field Extension Agent FMAS - Farm Management Advisory Service FMETC - Farm Management and Extension Training Center FTC - Farmers Training Center GOS - Government of Somalia ICB - International Competitive Bidding IDA - International Development Association, World Bank MOA - Ministry of Agriculture MCSB - National Commercial and Savings Bank NES - National Extension Service ONAT - National Tractor Hiring Agency PMU - Project Management Unit REO - Regional Extension Officer SDB - Somali Development Bank USAID - United States Agency for International Development WDA - Water Development Agency FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY SOMALIA AGRICULTURAL EXTENSION AND FARM MANAGEMENT TRAINING PROJECT STAFF APPRAISAL REPORT Table of Contents t Page No. I. THE AGRICULTURAL SECTOR ................................... 1 A. Background . B. The Production Environment.. 3 C. Agricultural Policies and Services. 4 D. Agricultural Extension and Farm Management Services 7 D. Major Constraints to Increased Crop Production. 9 II. THE PROJECT ...........................................10 A. Project Concept ...................................O10 B. General Project Description .11 C. Detailed Features .12 III. PROJECT COST ESTIMATES, FrNANCING, PROCUREMENT AND DISBURSEMENT .29 A. Project Cost Estimates .29 B. Financing .31 C. Procurement .33 D. Disbursement .......................................... 34 E. Accounts and Audit ............. 35 IV. ORGANIZATION AND MANAGEMENT ............. 35 V. PRODUCTION, FARMER BENEFITS, AND EFFECTS ON GOVERNMENT CASH FLOW ............. 38 A. Production and Farmer Benefits .... ......... 38 B. Government Cash Flow ................................. 45 VI. BENEFITS AND ECONOMIC JUSTIFICATION . . 45 VII. SUMMARY OF AGREEMENTS REACHED ............. 48 The proposed Project was prepared by Government with the assistance of RMEA (Regional Mission in East Africa). This report is based on the findings of an appraisal mission which Jisited Somalia in Januarv/February 1978 composed of Messrs. S. Gafsi and K. Niemann, IDA, and Messrs. E. Reisch and R. Sood (consultants). This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  -2- Page No. CHARTS IN THE MAIN TEXT Chart 1 Organization of the Ministry of Agriculture 51 2 Project Organization 52 IMPLEMENTATION VOLUME Table of Contents 53 IM?LEMENTATION SCHEDULE - Chart 3 54 LIST OF MAPS IBRD 13606 Somalia A^  SOMALIA AGRICULTURAL EXTENSION AND FARM MANAGEMENT TRAINING PROJECT I. THE AGRICULTURAL SECTOR A. Background 1.01 With a per capita GDP below $100, Somalia is one of the poorest countries in Africa. Total population in 1978 was estimated at around 3.7 million with an annual rate of growth of around 2.6%. The majority of Somalis live in rural areas and practice subsistence crop production and nomadic animal husbandry. The country's two main exports are livestock and bananas, which in 1976 accounted for nearly 90% of total exports. Increased livestock exports could be achieved mainly through better local marketing structures. Banana production and exports have been declining since 1972 and are expected to continue to decline because of failure to sustain the productivity of plantations. Somalia's imports are dominated by investment goods and other essential items such as cereals, petroleum and medical pro- ducts. Government policy aims at substituting cereal imports through local production. 1.02 Somalia is located between the latitudes 11030'N. and 1030'S with an area of over 638,000 square kilometers. The topography consists mainly of plateaus sloping from the Ethiopian highlands to the Indian Ocean in the East and the Gulf of Aden in the North. These plateaus are broken by chains of mountains in the North and they end in a broad coastal plain in the South. Climatically, Somalia may be divided into (a) the Northwest zone with a semi-mediterranean climate and with an average rainful of over 400mm per year in certain areas, (b) the Central and the Northern sea coast zone with an arid and hot climate and with annual precipitation ranging between 50 and 100mm, and (c) the Southern zone with an equatorial climate and with precipitation of up to 600mm per year. Two rainy seasons prevail over much of the country, the major one referred to as "Gu" from March-April to June and the other one referred to as "Der" from September-October to December. 1.03 Most of Somalia is, therefore, classified as arid to semi-arid and the natural environment is on the whole rather harsh. Rainfall is not only low but also irregular both with respect to total quantity and to its timing and spread over the seasons. This irregularity causes partial and in places complete rainfed crop failures in two out of five years. Groundwater resources, although thought to be limited, remain substantially unexplored. The two major rivers, Shebelli and Juba, flow through the southern part of the country. The Shebelli flows for about 7 months, while the Juba flows throughout the year.  1.04 About 8.2 million hectares or 13% of the land area in Somalia have been estimated as potentially suitable for crop production, but only about 0.7 million hectares or 1% of the total area are cultivated. Land use, as reflected by the existing sketchy statistics, may be described as follows: Land Use Area ('000 ha) % of Total Controlled Irrigation 50 0.08 Flood Irrigation 110 0.17 Rainfed Farming 540 0.85 Total Cultivated 700 1.10 Cultivable but Uncultivated 7,500 11.75 Total Cultivable 8,200 12.85 Rangeland 28,800 45.15 Unusable 26,800 42.00 Total Land Area 63,800 100.00 TwID regions, Lower Shebelli and Bay, together contain over 40% of the total cultivated area. About 70% of the irrigated area is along the Shebelli River, 27% is along the Juba River and 2% is in the Northwest. In contrast, out of an estimated total area of 240,000 ha potentially suitable for irriga- tion, about two-thirds are located along the Shebelli River. There is a shortage of water to meet the irrigation needs of available good land along the Shebelli River and a shortage of good land for optimum use of the water available in the Juba River. 1.05 Traditionally, cultivable land has been held by families whose members acquire the right to cultivate by virtue of birth, kinship or adoption. Law No. 173 of October 1975 declared all land state property and gave the Ministry of Agriculture responsibility for granting concessions to individuals desiring to use land for agricultural purposes. The new law intends to transform the traditional land usage into a leasehold system with provisions for lease transfer and lease inheritance. Cooperative land use would also be promoted. Government has started land registration to implement this law, bult shortage of manpower has delayed progress. Meanwhile, regional authori- ties issue concessions to any Somali desiring to cultivate land that has lain id:Le for two or more years. In general, however, customary rights over cul- tivable land continue to be respected. Larger tracts of cultivable land tend to be under the control of larger families, indicating the general availability of land to those who wish to cultivate it. 1.06 Crop production in Somalia engages about 195,000 families, most of them in rainfed farming. Livestock production is Somalia's principal economic activity, engaging approximately two-thirds of the population. Following the 19,73-75 drought, Government is attempting to expand irrigation and thereby recduce the impact of future droughts. The overall performance of both the crops and livestock sub-sectors is difficult to assess, as reliable data are not: available. It appears, however, that domestic output which had declined sharply as a result of the drought, has been continuously improving, although pre-drought levels of production have not yet been reached.  - 3 - 1.07 Sorghum, maize and sesame are the three principal crops in Somalia accounting for 90% of the cultivated area. Sorghum, mostly grown on small rainfed farms, covers approximately 55% of the total cultivated area. Bananas, sugar cane, vegetables and fruit as well as small amounts of groundnuts, sesame, cotton and pulses are grown under irrigation. State farms growing maize, rice and other irrigated crops are slowly gaining importance. The overall position in 1975 was as follows: Crop Area Production Yields ---ha-- --%-- (tons) --kg/ha-- Sorghum 388,000 55% 137,000 353 Maize 172,000 25% 150,000 872 Sesame 70,000 10% 26,500 378 Bananas 10,000 1% 142,000 14,200 Others 60,000 9% 1.08 Cereal consumption in the country is around 350,000 tons per year, of which about 15-30% has to be imported. Production trends are not keeping pace with population increases, thus increasing the future reliance on imports. Nevertheless, there is considerable scope to increase the cul- tivated area both for rainfed and irrigated crops. Most importantly, how- ever, there is ample room for increased productivity without substantial additional inputs and with reliance on the present level of know-how. In rainfed agriculture, the ineffectiveness of the extension service, and in irrigated agriculture the lack of technical know-how and the absence of man- agement skills are major impediments to the realization of such increase in productivity. 1.09 The Government of Somalia has requested IDA assistance in financing an Agricultural Extension and Farm Management Training Project that would expand and improve the services provided by the Department of Production and Extension of the Ministry of Agriculture (MOA). The objective would be to create an environment where existing and new know-how could flow to all agricultural producers and where public lands become an effective policy tool for stabilizing food supplies and meeting the country's needs in emergency situations. B. The Production Environment 1.10 Production Patterns. A typical rainfed small farm consists of about five hectares under cultivation where sorghum is the main crop with some inter- planted pulses, and small areas of maize, sesame, millet and more recently groundnuts. Maize is normally only grown in the Gu season while sorghum is sown or ratooned in both the Gu and the Der seasons. A small number of live- stock is herded in the neighboring grazing areas. Cultivation is done by family labor using rudimentary hand tools and practically no market inputs. Along the Shebelli and Juba Rivers, some small farms benefit from flood irrigation which allows them to grow relatively more maize and sesame.  -4- 1.11 State Farms. As a result of the 1973-1975 drought, the MOA has taken over an increasing number of irrigated large scale farms in order to increase food production in general and to provide a reliable source of food supply in case of another drought. Shortage of qualified management, however, has resulted in poorly run farms, often being a burden on the Government budget rather than contributing to it. Large scale irrigated state farms with an average size of about 600 hectares specialize in food crops such as rice, maize and sesame, or concentrate on bananas and sugar cane. Some cotton is also grown. Settlement schemes and crash program farms are operated in a manner similar to that of state farms. Livestock has not been integrated, so far, in the production process on state farms. C. Agricultural Policies and Services 1.12 The severe drought of 1973-1975 disrupted the Somali economy but has forced Government to reorder the country's development priorities, parti- cularly in agriculture. Somalia aims at self-sufficiency in major food commo- dities through an expansion of the area under cultivation and through gains in productivity. The main elements to achieve this are increased technical assistance to agriculture, soil conservation, better water management and irrigation intensification and progressive transition from nomadism to set- tled farming. Irrigation development is intended as a shield against future weather vagaries affecting crops, while range conservation and management would protect livestock against future prolonged drought. The livestock development strategy emphasizes disease control measures, improvement of the marketing system and improvement of herd productivity through better range and animal management. 1.13 The 1974-78 development program reserved 29% of planned investments to the crop production sub-sector. The aim was to achieve self-sufficiency in sorghum, maize, oilseeds, cotton and sugar, and a partial import substitu- tion for rice and wheat, mainly through accelerated development of state farms and cooperatives and the intensification of Government services to farmers. Nearly four fifths of planned investments in agriculture were allocated to irrigaton development for a reliable food supply, despite the high investment costs. The emphasis on irrigation has been a matter of phasing of priorities and currently Government is turning more to the development of rainfed crop production, particularly through strengthening research to make know-how available and the establishment of Extension and Farm Management Advisory Services to deliver this knowhow to small farmers and to state and joint- venture farms. The major factor slowing Government efforts has been the lack of trained manpower at all levels. 1.14 Ministry of Agriculture (MOA). Government programs related to crop production are the responsibility of the MOA assisted by parastatals and public agencies - the Agricultural Development Corporation (ADC), the National Tractor Hiring Agency (ONAT), the Somali Development Bank (SDB), and the Water Development Agency (WDA). The organization of the MOA is shown in Chart 1. The Ministry suffers from a shortage of trained staff both at headquarters and in the field. Existing field staff are limited to administrative functions because of lack of or badly organized transport.  - 5 - 1.15 ADC was set up in 1971 and granted a monopoly to purchase all marketable surpluses of sorghum, maize, oilseeds and cotton from farmers, to procure sorghum and maize from abroad (when necessary), and to sell this produce to regional governments and municipalities at prices fixed by Government. The regional governments and municipalities in turn sell these commodities at a price which is fixed by Government and which is intended to cover the cost of handling. ONAT provides tractor hire services for farm operations and distributes inputs. ONAT's operations are constrained by a shortage of trained staff, operation over a widely dispersed area and inex- perience of its management in large-scale operations. WDA is an autonomous agency within the Ministry of Mineral and Water Resources which is charged with the siting, drilling and equipping of boreholes for municipal and rural water supply and the excavation and maintenance of man-made water reservoirs for livestock. It suffers from shortages of both qualified staff and equipment and, for that reason, is not very active. The Somali Development Bank lends to all sectors of the economy. For instance, agricultural loans are given for tractors, wells, pumps, and the clearing and leveling of land. Security consists of liens on equipment, with mortgages of personal property. During 1977, SDB expected to lend small farmers up to So.Sh. 10 million (US$1.6 million). Interest rates on agriculture loans are 5.5% per annum for short and medium term loans (1-6 years) and 6% per annum for long term loans (7-20 years). 1.16 Agricultural Research. Crop research under the responsibility of the Director of the Agricultural Research Institute (part of the MOA) is currently being carried out almost exclusively at the Central Agricultural Research Station (CARS) at Afgoi. Three regional research stations are being developed in the major ecological zones, one at Gelib in Middle Juba (irrigated), another at Bonka in Bay Region (rainfed), and the third at Aburein in the Northwest Region (rainfed). The CARS at Afgoi was started in 1965 with technical assistance from the University of Wyoming, funded by USAID. Initial trials included variety testing and cultural practices, mostly for irrigated crops. In 1969 the US assistance was terminated and research activities were reduced due to a shortage of staff and funds. UNDP/FAO are now assisting with a 6-year program implemented by MUCIA, a consortium of seven Midwestern universities in the USA. 1/ The past and on-going programs are steps in the right direction but fall far short of current needs. Programs under the latter project are being approved from year to year, which makes worthwhile planning difficult. Adaptive research to be financed under the on-going IDA Northwest Region Development Project and the proposed Bay Region Development Project is expected to shift the emphasis to rainfed agriculture. Although some work has been done, there is a great need for a long range comprehensive adaptive research program. Cost savings and early results could be achieved by making use of knowledge available in other countries and at international research centers. 1/ UNDP Project Som/72/014/C/01/12. Provisions over 4 years amount to $2.6 million.  1.17 Cooperatives. In an attempt to facilitate its access to farmers, the MOA has strongly supported the development of cooperatives. These are expected to become a major vehicle for the transfer of knowledge to farmers and for providing access to the market at an affordable cost for small scale producers. Three types of cooperatives have been given legal status: (a) Multipurpose Cooperatives. Such cooperatives have a minimum of 100 members and are intended to provide organizational, technical and administrative assistance both to members of farmers cooperatives and to cooperative farms. They are meant to supply inputs and services, to market agricultural products and, if required, to handle storage and processing. (b) Cooperative Farms. Within a multipurpose cooperative, a group of 20 farmers or more may be given a plot of land for collective or semi-collective cultivation, while the same farmers continue to cultivate their individual holdings. Government normally provides facilities for land clearance, a tractor, a water pump and assists with the building of irriga- tion canals. (c) Production Cooperatives. Production cooperatives would normally have a minimum of 30 members, who pool their land and resources into a large unit. This is expected to be the final stage in the development of agricultural cooperatives in Somalia, but so far, no such cooperatives have been formed. 1.18 Prices of major crops are controlled by the Government at all marketing levels. Producer prices of particular importance are those of sorghum, maize, rice, oilseeds and cotton. Producer prices of sorghum and maize are currently set by the ADC at So.Sh. 75 per quintal compared to selling prices of So.Sh. 116 per quintal and import prices of about So.Sh. 90 per quintal for sorghum and So.Sh. 100 per quintal for maize. The prices of sorghum and maize have been consistently adjusted upward since 1973. In real terms, prices for both crops declined in 1974 and 1975 but went back to their 1974 levels in 1977. Prices of oilseeds have been controlled since 1973. The price of sesame has been raised nominally but declined in real terms. The prices of groundnuts and sunflower have been maintained at their 1972 level of So.Sh. 100 per quintal. Upland rice is bought by ADC at So.Sh. 350 per quintal for milled rice, which is high by international standards, and this should stimulate domestic production. Government price policy, therefore, is not presently unfavorable to farmers, but price adjustments tend to lag because of lack of information and because of the inability of the ADC to gather market and cost of production information. The weakness of the market- ing system, however, makes price policy an ineffective tool for increasing production as most farmers have limited access to the market. 1.19 Inputs. Government policy has been to encourage the use of modern production inputs, which have to be imported and are often not only exempted from duties but are also subsidized. Because quantities of inputs involved are limited, subsidies may be defendable at this stage of development as a  - 7 - means of getting farmers familiarized with new techniques, but could become a political issue if attempts to eliminate them occur at a later stage. It may put an excessive burden on the Government budget and cause distortions in the relative prices of inputs, hence causing inefficiency in the allocation of the country's resources. IDA will maintain a dialogue with Government on this issue. D. Agricultural Extension and Farm Management Services Organization 1.20 Somalia is divided into 16 geo-political administrative regions sub- divided into 78 administrative districts. Under the Interior Ministry, each region is administered by a Governor and each district by a District Commis- sioner. Six regions are rangelands, suitable primarily for livestock, but not for crop production. Of the other ten regions, six have potential for irriga- tion, while the other four rely wholly on rain. In these ten regions, 33 districts out of the total of 78 have potential for crop and on-farm livestock production. The Government has decided accordingly to limit the extension service to these 33 districts. 1.21 The National Extension Service is headed by the Director of the Production and Extension Department who reports to the Director-General of the MOA. At the regional level this department is represented by a Regional Agricultural Superintendent, who works under the Regional Agricultural Coor- dinator. The latter officially represents the Ministry of Agriculture in the Region and is responsible for coordination with the Regional Government. The Regional Coordinator is responsible directly to the Director-General, along- side the Regional Land and Water Officer, the Regional Cooperative Officer, the Regional Administrative Officer and the Regional Plant Protection Officer. At the district level, there is an Extension Officer, a Plant Protection Officer, a Land and Water Officer and a Cooperative Officer under a District Agricultural Officer, who is responsible to the Regional Agricultural Coor- dinator. Provision is also made for Agricultural Instructors for field work under the District Agricultural Officer; however, except for a few Cooperative Instructors, the posts are vacant. There is thus no effective field service beyond the district office. The Production and Extension Department is also concerned with the State Farms Production Service, Seed Multiplication Service, Credit Service and Extension and Training Service. The majority of extension personnel at regional and district levels have had eight years of schooling, but their only agricultural training has consisted of short in-service train- ing courses. Headquarters staff and Regional Coordinators are a mixture of university and secondary school graduates and of field trained staff. 1.22 The State Farms Production Service administers the state farms, which cover about 50,000 ha, or over one-half of the total area farmed in large scale production units. The remainder consists of the Crash Program farms, the Settlement Development farms, other large scale farms and coopera- tive farms. All large scale production units are administered by Government  - 8- appointed staff, often with no technical background and in most cases with no managerial skills. Large scale production units have been created without taking into account the availability of competent people to run them. Training 1.23 Agricultural training is provided at three levels: (a) The Faculty of Agriculture of the National University of Somalia was set up at Afgoi in 1971 and offers a four-year course in agriculture for secondary school graduates, leading to a Bachelor of Science degree. Facilities are provided for an intake of 60 students a year. Only 21 graduated in 1975 and none in 1976; 30 were expected to graduate in 1977/78. The present enrollment in the four classes is 164. In addi- tion, 62 are enrolled in pre-first year to learn Italian. English is also taught and used to a limited extent as medium of instruction. A high proportion of the reference materials in the library is in English. The Faculty, supported by the University of Florence, has staffing problems; 11 of the 33 permanent teachers are on 6-month assignments. There is also a shortage of facilities such as a farm for practical training. The curriculum needs strengthening, with more emphasis on locally relevant problems, particularly in regard to rainfed agriculture. Moreover, courses on agricultural extension and farm and range management should be added. (b) The Agricultural Secondary School, also at Afgoi, was started in November 1973. Originally, facilities were provided for a total enrollment of 240 intermediate school graduates for a four-year curriculum leading to a secondary school level diploma in agriculture. Recently, the period was reduced to three years by presidential decree. The majority of students have a rural background. Instruction is in English. The first group of 38 students graduated in 1978. The school aims to produce middle level general agricultural technicians for employment by the MOA, the Ministry of Livestock and other public and semi-public institutions. The level of training is not high because of the shortage of qualified technical teachers, the lack of practical training facilities and the absence of a curriculum development capability. The school urgently needs the services of at least six permanent teachers in Agricultural Chemistry and Soil Science, Agricultural Economics, Agricultural Engineering, Agronomy, Animal Husbandry and Range Management and Plant Protection. (c) Farmer training is provided at five Farmers Training Centers (FTCs) at Bonka, Jannale, Jamame, Aburein and Erigavo. Theore- tically FTCs are required to run four one-month courses per year for 30 to 45 farmers. This has not always been possible because of a shortage of funds, teachers and organization  - 9 - staff. The courses include agriculture, cooperative organiza- tion and political education. The trainees, who are "leading farmers", are expected to pass their knowledge on to other farmers upon returning home, but the quality of training is very low due to the shortage of trained instructors. The frequency of training sessions and enrollment are limited by the lack of facilities and transport. E. Major Constraints to Increased Crop Production 1.24 The present extension organization has several weaknesses. While limited staff are available for extension work at the regional and district levels, there are no extension agents at the field level. A major priority is, therefore, to employ trained extension officers at all levels, in partic- ular at the field level. 1.25 The present extension staff of the MOA is, by and large, not appro- priately qualified. In the circumstances, it would not be feasible to upgrade the quality of the staff, since facilities for systematic in-service training do not exist; in any case, the Government lacks the resources to undertake such a program. Even staff who graduate from the Agricultural Faculty and the Agricultural Secondary School lack practical knowledge and experience in growing a crop properly. This is particularly important on state farms, where those in charge also lack managerial capability and the motivation to produce efficiently. 1.26 The work of the extension staff and of state farm supervisors is not adequately planned or supervised. Technical guidance is needed, not only for the individual farmers cultivating their smallholdings, but also for large scale production units, including state farms, group farming cooperatives, settlement farms, "Crash Program" farms, as well as state run seed farms. These units also need management assistance. 1.27 The flow of knowledge from the research stations, relating to suit- able high yielding seed varieties and proven agronomic practices, is slow and often of low quality, particularly regarding rainfed farming. More research is needed on the development of technology based on improved hand tools and draught animals. Research facilities need strengthening, partic- ularly at the regional stations. Effective coordination between research and extension needs to be established. 1.28 Infrastructural facilities are inadequate for making inputs like fertilizers, improved seeds, pesticides, and credit available. Farmers are not, however, at a technological stage where such facilities would represent a serious constraint to production at their present level of technology, but would need to be strengthened once effective extension work increases the demand for marketed inputs. ONAT, which has a monopoly for the distribution of inputs, would need to expand its distribution network. Facilities for the production and processing of seeds would need to be streamlined. The Somali  - 10 - Development Bank (SDB) and the National Commercial and Savings Bank (NCSB) would have to strengthen their services to ensure more widespread availability of credit. II. THE PROJECT A. Project Concept 2.01 A strategy to increase production of major food commodities (paras. 1.12, 1.13) would have to take the following factors into account: (a) Somali agriculture is mainly rainfed and, hence may suffer from the insufficiency, overabundance, and improper timing of rainfall. Partial and in certain places complete crop failures occur two years out of five. Any technological improvements in rainfed agriculture, therefore, would also have to be risk reducing or at least risk neutral from the farmer's point of view; (b) Husbandry practices are rudimentary and suffer from elementary failures, such as unsatisfactory land preparation, low quality seeds, inadequate seeding and seed rate, lack of weed control, improper timing, and a total absence of rational water manage- ment and moisture conservation. These are situations which the farmer himself could remedy at little cost with more efficient use of his family labor. Many of these practices are risk reducing from the farmer's point of view; (c) A policy aimed at self-sufficiency in food could not rely ex- clusively on irrigated agriculture. Available information indicates that not more than 240,000 ha could potentially be irrigated; and (d) The supply of skilled manpower remains very limited for rainfed or irrigated agriculture. Long term solutions need to be devised to correct the situation. 2.02 Despite its emphasis on irrigation, the 1974-78 plan (para 1.13) did not give due consideration to the resources needed to exploit the potential of newly established irrigation facilities. In addition to capital, irrigated agriculture needs motivated people with the appropriate technical knowledge. This need has not been met, so far. Rainfed agriculture, on the other hand, has suffered from limited public investment. Contributing factors were the inbuilt limitations of a primitive agriculture, spread over extensive areas and involving a large number of small decision making units, as well as the limited capacity of the public sector to put together an improved techno- logical package and to muster the human resources capable of extending such a package to farmers. Simple and low cost productivity increasing practices are  - 11 - known in Somalia, and a sustained flow of further yield increasing practices could be established by strengthening adaptive research. 2.03 Thus, the main problem is how to raise the level of technology in both irrigated and rainfed agriculture to what is achievable with the present know-how. The proposed Project would strengthen the Extension Service, develop a National research strategy, and establish a Farm Management Advisory Service, all of which would bring essential knowledge to the farm level. The proposed Project would also provide for the training of staff who would be expected to transfer the knowledge most appropriate for various types of farms and to communicate it to those who make production decisions. This training would take place at the proposed Farm Management and Extension Training Center to be located at Afgoi and at two of the existing Extension Training Centers at Jannale and Bonka. B. General Project Description 2.04 The Project would, over a period of five years, provide technical assistance, strengthen the Extension Service and make it operational at the field level. The Project would also establish a Farm Management Advisory Service which would assist large scale producers and develop a farm manage- ment capability to run state and cooperative farms efficiently. Specific- ally, the Project would provide for: (a) The establishment of a Farm Management and Extension Training Center (FMETC) at Afgoi to provide practical pre-service training for farm managers, assistant managers and field managers, and for regional and district level extension staff reaching out for small farmers (para. 2.08). Development and operation of the FMETC would include: a 60 ha training farm, staff housing, a library, classrooms, a dormitory, a workshop and other facilities needed for training, as well as transport. It would be a condition of credit effectiveness that Government had officially allocated to the FMETC the 60 ha training farm; (b) The strengthening of the National Extension Service (NES) through the introduction of an extension methodology with emphasis on continuous training given to extension personnel and regular contact with farmers. The Project would provide for upgrading two Farmers' Training Centers, which would be converted into Extension Training Centers (ETC's). The Project would also provide for the construction of staff housing, offices, other facilities, transport, and for incremental operating costs; (c) The establishment of a Farm Management Advisory Service (FMAS) to provide field back-up to existing and newly trained farm managers, and advise Government on large scale farming and related issues. A 400 ha state farm at Jannale would be  - 12 - rehabilitated to become a Demonstration State Farm (DSF). FMAS would also strengthen the management of the two other state farms in the vicinity of Jannale which, along with the DSF, would be used by the FMETC students during the field internship stage of their training. The Project would provide for the construction of staff housing, offices, a workshop, storage facilites and transport. Operating costs would be financed for three years for the DSF after which it is expected to become self-sufficient, and for five years for the other activities of the FMAS; (d) A Project Management Unit, which would be responsible for Project implementation, for procurement of all Project related goods and services and for monitoring its progress and evaluat- ing its results. A system of internal functional monitoring at all levels of the organizational structure of the Project would be established and the information generated from it would be fed back into the Project Management decision making process. The Project would provide for the construction of staff housing and office space, transport and operating expendi- tures for five years; (e) Strengthening the Agricultural Secondary School at Afgoi through the provision of teachers and training equipment; (f) Training abroad, which would cover: (i) post-graduate training abroad for 38 faculty graduates; (ii) three to six week trips abroad for senior Ministry of Agriculture personnel (9 man months); (iii) study trips of at least 3 months duration for senior extension and farm management field technical staff (21 man months); and (iv) about 3 month study trips for district extension officers (192 man months); (g) Developing a Master Plan for strengthening the National Research System and its links with Extension; and (h) Strengthening the Central Department of Statistics in the State Planning Commission and setting the stage for a National Statis- tical Development Program. C. Detailed Features 2.05 In addition to the components dealing directly and exclusively with National Extension and Farm Management, the Project would provide funds for three components of broader scope, namely (i) the development of a national agricultural research strategy, (ii) the strengthening of the Department of Statistics in the Planning Commission with the objective of initiating a national program for development of statistics, and (iii) the strengthening of the Agricultural Secondary School.  - 13 - 2.06 The Agricultural Research strategy would be developed as a basis for initiating useful research programs and, for this reason, it would be prepared as soon as the project becomes effective. Support to the Statistics Depart- ment would be the stepping stone for a more comprehensive program for develop- ment of national statistics and would emphasize training Somali staff. The Agricultural Secondary School would be the main supplier of Extension and Farm Management Personnel and, for that reason, would be strengthened to ensure the quality of that personnel. The Farm Management and Extension Training Center (FMETC) Training of Professional Staff 2.07 Potential farm managers, assistant managers, regional extension officers and directors of ETC's would be Faculty graduates. These graduates would go through a two-year training program organized in three stages in order to provide a balanced mix of institutional and field training. The first 10 months would be spent at the FMETC and would include classroom work and practical work on the training farm. This would be followed by 11 months of supervised internship in the field at the DSF or other appropriate loca- tion, and two months of rounding up training and examinations. At the end of the two years, trainees would receive a diploma in Farm Management or in Agri- cultural Extension, depending on their specialization. This diploma would allow them to accede to the position in the salary scale immediately above the one they occupied when they joined the FMETC in order to motivate the students to join the FMETC and remain in the jobs they would ultimately be assigned to. An understanding on this matter was reached with Government during negotiations. 2.08 Institutional training at the FMETC would be organized in two semesters of 20 weeks each. The first semester would group both farm manage- ment and extension trainees and would center on basic instruction on how to grow crops. The second semester would center on specific skills and technical requirements of potential farm management personnel on the one hand, and on those of potential extension personnel on the other hand, as separate groups. The field internship period lasting 11 months would be spent on selected state or cooperative farms, settlement schemes, development projects eand other suit- able large scale farming operations, in the case of farm management trainees. Extension trainees would spend their internship period at regional extension headquarters and extension training centers. All trainees would be under the direct supervision of the FMETC teaching staff during the field internship program. 2.09 Training at the FMETC would be structured to balance classroom teaching and practical work on the Training Farm. Training would be given in a series of 90 to 120 minute sessions, emphasizing the case study approach, which is considered most suitable for this type of training. Although the use of case studies in the classroom might be limited in the first few years because of the expected high number of students per class, this approach would, nevertheless, be used for field training, workshop training and group special project work. Using the session as the basic timetable unit, the weekly schedule for training at the FMETC would be as follows:  - 14 - Session 1 (7:00 to 9:00 AM) Practical field training (6 sessions per week) Session 2 (9:30 to 11:00AM) & Classroom sessions on different Session 3 (11:30 AM to 1:00 PM) subjects (12 sessions per week) Session 4 (4:00 PM to 6:00 PM) Workshop training (twice a week) Animal husbandry (once a week) Visit to research station and farms (once a week) Project work (twice a week) Practical field training would include the use of hand tools and simple imple- ments including ox-drawn implements, the use and maintenance of farm machinery and the proper maintenance of student plots, where a given team of students is allocated a piece of land for the period of their stay at the FMETC and on which they would learn how to grow a crop properly. 2.10 The curriculum for the first semester classroom sessions would cover the following fields: Technical subjects: Crop production and plant protection 4 sessions per week Animal husbandry 1 session per week Implements, machinery and buildings 3 sessions per week Farm Management: Basic farm management and farm accounting 2 sessions per week Agricultural Extension: Basic extension methods and communication techniques 2 sessions per week 2.11 The curriculum for the second semester classroom sessions would continue with the basic technical subjects, laying emphasis on irrigation, cropping systems, crop rotation, the integration of animal and crop produc- tion, and cooperative organization and cooperative farming. These subjects would take up about half the classroom sessions, or six sessions per week. The remaining six sessions per week would be used for job-specific training. Farm management staff would attend special courses covering (i) accounting, production costing, record-keeping and analysis, and the evaluation of farm data, (ii) farm planning and budgeting, with emphasis on budgeting for land and water use, the allocation of machinery and labor, and optimal production programs, and (iii) management techniques including labor mobilization and training, workers' motivation and evaluation, team decision making, procure- ment procedures, and livestock management. Extension staff would attend special courses in extension methodology and communication techniques, orga- nization, administrative procedures and performance evaluation.  - 15 - Training of Agricultural Technicians 2.12 Potential field managers for large scale farms and cooperatives, and district level extension officers and trainers for the ETC's would be graduates of the Agricultural Secondary School. They would receive two years of prac- tical agricultural training at the FMETC based on a format similar to that described above for professional staff, but at a level commensurate with the responsibilities they would be called upon to assume. More emphasis would, however, be put on crop and animal production techniques since they would be the immediate supervisors for those called upon to implement manage- ment or extension service recommendations. They would, therefore, need a good understanding of the technical aspects of the production process and of basic principles governing the proper use of the means of production. Potential Field Managers, District Extension Officers and ETC Trainers would be taught how to grow a number of crops with limited means at their disposal. In addi- tion, job-specific training would be provided. Field managers would receive instruction in farm management emphasizing (i) farm machinery and labor management, work plans, and production costing, (ii) land and water management and their relationship to cropping systems, (iii) budgeting, record-keeping, and planning the flow of inputs, and (iv) data collection including the esti- mation of yields, and measurement and control of field work performance. Potential district extension officers and ETC trainers would be trained in extension methodologies and communication techniques and in the design of village level surveys as well as data collection. Upon successful completion of their course, these trainees would be awarded a certificate in farm manage- ment or in extension, according to their specialization. This Certificate would allow the trainees to accede to the position in the salary scale imme- diately above the one they were at when they joined the FMETC (see also para 2.07 for professionals). Government assurances to that effect were obtained at negotiations. Special Technical Training 2.13 Regional subject matter specialists (para. 2.19), ETC instructors and field managers on state farms play a critical role in providing training and technical support to field staff. Attention needs to be given to the continuous upgrading of their technical competence to enable them to guide those in charge of actual field operations. They would, therefore, receive one or two weeks intensive training at the beginning of each season in sub- jects related to their specialization. In addition, special courses, ranging from one to several weeks, would be organized at the FMETC to cover a variety of subjects such as: improved sowing practices, better use of hand tools, ox-drawn implements, pest and disease control for different crops, new farm machinery, etc. The program for these special courses would be drawn up by the Training Program Officer of the NES in cooperation with the FMAS. The FMETC would also provide courses in farm accounting and farm machinery main- tenance for prospective bookkeepers and assistant mechanics for large scale farming units. These courses would be for about 3 months and designed to meet specific needs as they arise.  - 16 - FMETC Teaching Staff Requirements 2.14 The FMETC would operate with a full teaching staff of eleven - nine internationally recruited and two locally recruited. The internationally recruited staff would consist of seven full time teachers and two part-time teachers, the latter to be shared, one with the Extension Service and one with the Farm Management Advisory Service. The seven full-time teachers would include the Principal of the FMETC who would be an Agricultural Training Specialist, two Agriculturalists (one with experience in rainfed agriculture and the other with experience in large scale irrigated agriculture), a Farm Management Specialist, a Livestock Specialist, an Agricultural Engineer and a Master Mechanic. The two internationally recruited part-time teachers would be a Communication Specialist who would be officially assigned to the National Extension Service headquarters (para. 2.17), and a Farm Economist (agricul- tural economist with strong background in accounting and farm planning) who would be officially assigned to the Farm Management Advisory Service (para. 2.31). Two teachers in plant protection and animal husbandry would be recruited locally. The Plant Protection Specialist would, in the early stages, be backed up by the two internationally recruited Agriculturalists. Instruction would be principally in English. The National Extension Service (NES) 2.15 The Project would support the reorganization and strengthening of the Agricultural Extension Service ultimately covering 33 out of a total of 78 districts in 10 out of 16 regions of the country. The selection of dis- tricts for Extension coverage would be based on their relative importance in terms of potential for crop and on-farm animal production. Trained field extension agents would ensure regular contacts with farmers, and would continuously receive intensive on-the-job training at short fixed intervals. Steps would be taken to provide pre-service, in-service and on-the-job train- ing for all extension staff in order to raise the level of their technical competence. A well trained, technically competent, motivated and well- equipped organization would thus gradually be built up. 2.16 Because of the large size of the country, its poor communications, because of small areas of capital-intensive irrigation and larger areas which depend on an erratic rainfall with varying production potential, and, in particular, because of a shortage of adequately trained staff, the extension component would be phased over seven years, the first five years falling within the Project period. The last two years would not involve major invest- ments and would consist mainly in a continuation of training and the deploy- ment of the staff in the field. This would be financed by Government. Exten- sion operations would be initiated from year one to ensure maximum benefit to the farmers. Pending the unavoidable time requirements for building up the ntLmber of trained Extension personnel, it is proposed to initiate the Exten- sion program on a modest scale with the use of existing untrained staff who would be carefully screened before their deployment in the start-up program. They would be assisted and trained periodically on-the-job by two internation- ally recruited subject matter specialists - a Farming System Specialist and a Plant Protection Specialist - who would be stationed at headquarters under the  - 17 - authority of the Director of the NES and would be in contact with the research scientists at the Central Research Station. The present extension staff would be rotated through the FMETC/ETCs for more thorough grounding in agricultural extension as these facilities became available. The start in extension work would be made in irrigated and rainfed areas close to headquarters in order to facilitate supervision and intensive on-the-job training. Once extension staff had been trained, the outlying regions would be progressively staffed. Priority would be given to the Regions and Districts with the greater poten- tial in crop and on-farm animal production. 2.17 The technical headquarters of the reorganized NES would be located at Afgoi and would be headed by a Director who would be an internationally recruited Agricultural Extension Specialist. He would be responsible for the supervision, support and coordination of the regional extension activi- ties. It would be his responsibility to ensure high quality of training and of field performance. The Director would be assisted by a Farming System Specialist, a Plant Protection Specialist, a Communications Specialist, all of whom would be internationally recruited and by a locally recruited Training Program Officer. 2.18 The crop production sub-sector, as it now exists, would need about 400 new Field Extension Agents (FEAs). Each FEA would serve about 500 fami- lies. This ratio of one FEA to 500 families takes into consideration the size and spread of cultivated holdings, the area an agent would have to cover, the present low level of technology on the average farm, and the level of tech- nical competence that may be expected from an extension agent. This ratio is likely to improve as agriculture becomes more intensive and market oriented. FEAs would be supervised by District Extension Officers (DEOs) at the rate of one DEO per 8 FEAs. This would enable each DEO to visit the area served by each of his FEAs once every two weeks at the rate of four touring days per week. He would check that visits by FEAs were being carried out regularly and on schedule, and assist the FEAs and farmers in addressing technical matters. He would attend the training sessions with the regional subject matter specialists along with the FEAs. This type of work relationship between the FEAs and DEOs would obviate the need for formal reporting. FEAs would, however, be expected to maintain diaries of their activities which would be scrutinized and signed by the supervising DEO. The DEOs would find out whether the FEA's visits were being made as planned by making surprise visits and by asking farmers simple questions like the name of the FEA, the day fixed for his or her visits and whether his or her messages were being implemented in the fields. Once farmers had become aware of the FEA's visit schedule, they would themselves become effective supervisors. 2.19 The regional extension program would be headed by the Regional Extension Officer (REO) who would be assisted by two regional subject matter specialists, one for crop and on-farm animal production and one for plant protection. The subject matter specialists would provide on-the-job training for groups of DEOs and FEAs every two weeks, followed by technical guidance regarding their field work with farmers. The regional specialists would spend about one-third of their time briefing FEAs on the "message" to be delivered  - 18 - to farmers. Another third of their time would be spent on field visits with DEOs and FEAs, helping them solve specific technical problems and conducting and supervising crop trials and field demonstrations. The remainder of the specialists' time would be devoted to preparing the content of the "messages" and on visits to the local research station for an active, continuing, first hand contact with research. The REO would involve the research scientists and the instructors at the ETCs in planning and conducting the regional training program and in developing training materials. Allowances would be paid to participating research and ETC personnel. The REOs, DEOs and regional subject matter specialists would, in turn, be brought together at the FMETC for a period of two days at the beginning of each month, for intensive training by the Farming System and Plant Protection Specialists based at Headquarters. Here again, these specialists would maintain close contact with the Central Research Station through regular and frequent visits and discussions and through the active involvement of the research scientists and the FMETC staff in the formulation of the extension messages to be delivered to farmers. 2.20 The extension effort would concentrate on the few important crops and a limited number of easily understood tasks to be implemented during the two-week period between FEA briefing sessions. The message would focus on those practices likely to bring the best economic results, while making optimum use of the farmers' available resources. A number of sound research recommendations and common sense answers to failures in the farming system are presently available for use by the Extension Service. A parallel devel- opment of problem solving, applied research is, however, needed to ensure the viability of the Extension Service. This would be initiated in the context of the proposed Bay Region Development Project. The initial thrust would be towards improving the husbandry practices such as field preparation, sowing, weeding, and plant protection. The main concern in the early stages would be to ensure an even plant coverage in the fields by harvest time, which by it- self would result in a substantial increase in yields. Improved management practices would be stressed, rather than the use of purchased inputs. His own labor is all tliat a small farmer usually invests in his field, thus the initial messages would aim at the effective use of this labor. Since low pro- ductivity is often the result of inappropriate elementary husbandry practices, simple technological improvements could be introduced quickly at this stage without waiting for the results of an elaborate, time consuming screening and trial process. Improvements in productivity could be achieved even with the 4 improved use of traditional hand tools by farmers. Once yields and incomes could be made to increase in this way, so would the farmers' confidence in the extension service, hence making them receptive to further and more sophisti- cated messages. The extension service could thus, without delay, obtain an initial reaction which would ensure its continued acceptance. Once convinced of their capability to increase production through improved practices with the help of extension workers, farmers would be willing to adopt the use of more sophisticated inputs such as pesticides, new seed and crop varieties, ox plc,ughs, fertilizers (where applicable) and other improvements which would be identified and developed by a strengthened national research service.  - 19 - 2.21 In order to diffuse the know-how obtained by them at the bi-weekly training sessions, the FEAs would follow a fixed schedule of visits to farmers, at a fixed time and day through four days every week. The "clients" of a given FEA would be divided into eight groups. The FEA would visit two groups a day, one in the early and the other in the late morning. He or she would attend the bi-weekly briefing sessions either at regional lieadquarters, or at the ETC on a fixed day, after having carried out two rounds of visits to farmers. The spare days would be used for make up visits and for solving problems encountered by farmers. The chart below illustrates a typical FEA's bi-weekly work schedule. Typical Timetable for an FEA SAT SUN MON TUE WED THU FRI SAT SUN MON TUE WED THU FRI 1&2 3&4 5&6 7&8 EV,PS OW H 1&2 3&4 5&6 7&8 EV,PS BRF H 1-8 = Visit to Farmers Groups EV = Extra visits for checking field trials, etc. PS = Problem solving discussions and visits (perhaps accompanied by a regional specialist) OW = Other work, such as input delivery arrangements, etc. H = Holiday BRF = Bi-weekly training at regional headquarters or ETC. 2.22 It would not be possible or necessary to attempt to reach all farmers directly through extension work in the field. The FEA would identify about 6 farmers (about 10%) from each group of 60-70 farmers to serve as his "contact farmers." Contact farmers would be drawn from all levels of vil- lage society, and would be selected in consultation with local people taking into account their potential influence and willingness to collaborate with the FEA. Contact farmers could be replaced between seasons if they proved to be ineffective or ceased to cooperate. During his field visits the FEA would make special efforts to visit all contact farmers' fields and encourage them to get in touch with other farmers. Their fields would be used for carrying out demonstrations and field trials. 2.23 Given the overall technical weakness of the existing staff, all extension personnel, including those involved in the start-up program, would go through 2 year pre-service training at the FMETC or at an ETC. In addi- tion, a program of intensive on-the-job training would be established to build up the technical competence of the staff, step by step in periodic, small, easily digestible doses of know-how directly related to the particular stage  - 20 - of the production process prevailing at the time. The regional senior exten- sion staff would provide this type of training for DEOs and FEAs at regional headquarters or at ETCs, in groups of 30 to 40, on fixed days, say Wednesdays or Thursdays, once every two weeks. The regional officers would, in turn, attend training sessions at the National Extension Service headquarters in Afgoi conducted by the Headquarters Crop Production and the Plant Protection Specialists under the supervision of the Director of the NES. These sessions would be held on the first and second day of each month. 2.24 Extension work would be carried out under difficult conditions and would require a high degree of motivation in order to be successful. Since salary levels are fixed by Government, it is recognized that housing and working conditions are among the most important elements for increasing staff motivation. The Project would, therefore, provide free housing and the neces- sary transportation facilities and office space, where needed, for all exten- sion personnel in order to motivate them to live close to their work and to give them the needed mobility to do their job effectively. 2.25 In the long term, the extension service would be effective only if an adequate flow of proven know-how were forthcoming from agricultural research and if farmers had access to and the means of acquiring the required inputs. Coordination between extension and research would be needed for identifying relevant research themes, for the transfer of the outcome of research from the stations to the field and for the training of extension personnel. Given the dependence of the extension service and of the farm management service on research, the Project would provide funds for developing a national research strategy aimed at strengthening applied research, partic- ularly in the field of rainfed agriculture. Implementation of such a strategy would be initiated under the proposed Bay Region Development Project. Coor- dination would also be needed between the extension service and marketing and credit agencies regarding the availability of the appropriate inputs at the proper time, of market outlets for farm produce, and of credit when farmers run short of cash. A Technical Coordination Committee would be constituted uinder the chairmanship of the Director General of Agriculture. The Department Directors of the MOA and the representatives of marketing and credit institu- tions would be members. The committee would meet at least twice a year to coordinate the activities of various agencies and ensure that the services they provide can be of use to the farmers. Government has informed the Asso- ciation that the Technical Coordination Committee has been established. 2.26 Collaboration between extension and research services is particularly important. Regarding extension, primary responsibility for coordination with research would lie with the technical specialists in crop production and plant protection based at headquarters and at regional offices. Their duties would require them to devote one-third of their time for contact and discussions with research scientists, both at the Central and at the Regional Research Stations. Extension literature and briefings would be prepared on the basis of these contacts and discussions. It would also be necessary to draw on the research scientists as well as staff from FMETC, the Faculty of Agriculture and the Agricultural Secondary School to assist in implementing the training  - 21 - programs and to ensure that the available training skills be used to maximum advantage. Cooperating instructors would be compensated on a scale to be determined by the PMU in order to enlist their continuous participation. 2.27 Two existing Farmer Training Centers, one at Jannale in Lower Shebelli, and the other at Bonka in the Bay Region, would be upgraded and developed to become Extension Training Centers (ETCs). They would serve primarily for pre-service and periodic in-job training courses attended by Field Extension Agents, foremen of large scale farms and District Extension Officers. In addition, the ETCs would be used for occasional training of farmers and cooperative leaders in specific subjects which cannot be covered by the FEA on the farmer's field. 2.28 These two ETCs would be strengthened through the provision of quali- fied management, teaching staff, training facilities and equipment. Staff to be trained at the ETCs would be intermediate school leavers (eight years of schooling). The course would cover two years and would be given in three stages. The first stage would last 6 months and would aim at providing basic classroom knowledge in general agriculture along with practical work on the training farm of each ETC; the second stage would consist of 14 months of internship in the field during which trainees would carry out supervised field work through two crop seasons, both Gu and Der, on rainfed as well as irrigated lands. In the third stage, trainees would return to the ETCs for 3 months, for rounding up training and examinations. Those graduating would receive a Certificate in Agricultural Production which would enable them to accede to the next higher level in the salary scale they were at when joining the ETC (see paras. 2.07 and 2.12). Government assurances to that effect were obtained at negotiations. 2.29 Each ETC would have a Principal who would be a Faculty of Agricul- ture graduate with two years' training at the FMETC; there would also be four instructors and a Farm Manager who would be Agricultural Secondary School graduates with two years' training at the FMETC. The ETCs would operate under the direct authority of the Director of the National Extension Service, in close cooperation with the regional extension staff. Training programs would be established jointly by the NES and the FMAS. Emphasis in the curriculum would be on the practical and technical aspects of how to grow a good crop and how to convey that know-how to farmers and to the staff of large scale farms. The Farm Management Advisory Service (FMAS) 2.30 At present, state farms are administered rather than managed because of the lack of a farm management capability in the country. The Project would partially correct this situation by providing for the establishment and opera- tion of the FMETC, but this alone is not sufficient, since neither the FMETC nor the MOA would have the capability to provide effective field back up for newly trained management personnel. Moreover, even with the FMETC in place, the Government would be left without formal channels for policy oriented feedback on the performance of the mostly Government controlled large scale  - 22 - farms. The Project would, therefore, provide for the establishment of a Farm Management Advisory Service (FMAS) as part of the Department of Production and Extension. It would be located at Afgoi, next to the National Extension Service headquarters. The major functions of the FMAS would be: (a) To develop and implement a program of regular advisory visits to all Government controlled large scale farming operations, including State Farms, Settlement Schemes, Crash Program Farms, Seed Farms, Joint Venture Farms, Cooperative Farms and Agricultural Development Programs. Initially, the advisory function would be limited to account-keeping, financial con- trol, input procurement, marketing of crops, farm planning, the setting of management objectives, and feedback to the MOA on ways and means of improving the management and productivity of large scale agriculture. As it develops its technical capa- bility, the FMAS would expand its advisory function and pro- gressively assure the flow of technological know-how to large scale farms and the exchange of information between farms, training and research institutions and policy makers at the MOA. (b) To develop a suitable farming environment where farm manage- ment trainees would spend the field internship stage of their pre-service training. Due to the absence of reasonably well- operated state farms, there are no suitable establishments where trainees could learn the practical day-to-day aspects of farm management unless an effort is made to correct the situation. Accordingly, the Project would provide for the re- habilitation of a 400 ha State Farm at Jannale, which would become the Demonstration State Farm (DSF); the Project also would provide management assistance for two other state farms nearby. The three farms would accommodate trainees during their internship period; they would be treated as regular full-time employees. Field training on these three farms would be progressively diminished as other farms are upgraded. The DSF would, in addition, provide the other large scale farms, the Government, and the training and research institutions with a sample of the benefits resulting from sound management and efficient farming practices in the Somali farming environment. It would also generate farm management data in a form usable by the training institutions and by Government. The DSF would operate on a commercial basis and would be expected to be finan- cially independent and viable by the end of the third year of the Project period. It would be a condition of Credit effec- tiveness that Government had officially allocated the 400 ha Demonstration State Farm to the FMAS and given control to the FMAS over the other two state farms in Jannale to allow the immediate strengthening of their management.  - 23 - (c) To develop and operate a system for the gathering and processing of country-wide farm management data for use by training insti- tutions, Government agencies, and the FMAS itself. As part of this function, the FMAS would adapt the Unified Accounting System of Somalia to meet farming requirements and introduce its use on the state farms. 2.31 The FMAS would initially be headed by an internationally recruited Farm Economist (an Agricultural Economist with strong background in account- ing, financial control, and farm planning) who would be assisted by the internationally recruited manager of the DSF, by an internationally recruited Farm Management Specialist, and by Somali staff. Close cooperation would be established between the FMAS, the Central Research Station, the FMETC and the National Extension Service. The Project Management Unit (PMU) 2.32 The PMU would be established at Afgoi. It would consist of the Somali Project Director, an internationally recruited Project Technical Manager, an internationally recruited Financial Controller and their support staff. The PMU would be responsible for planning and coordination of Project activities, for procurement of Project financed goods and services and for management oriented monitoring and evaluation of Project activities. The PMU would require the services of a Procurement agency to assist in drawing up specifications, preparing tender documents and analyzing bids. It would also require the services of construction specialists to supervise the implementa- tion of civil works on its behalf. Appointment of such consultants would be a condition of credit effectiveness. 2.33 Monitoring would be done by Somali staff under the supervision of the Project Technical Manager. It would require systematic data collection, analysis, and periodic reporting for evaluation purposes. The data generation systems to be set up in connection with the Project would be composed of (i) Internal Reporting or functional reporting from the lower to the higher echelons of the organization, as part of the day-to-day operations, and (ii) Monitoring and Evaluation through special surveys and studies which would generate supplementary information. 2.34 Internal Reporting. A sound internal reporting system would provide essential information for the successful management of the Project. The extension methodology provides for contact with farmers by FEAs at a set time, on the same day every week. The approach concentrates on practical field work, with paper work being kept at a minimum. DEOs would rely on personal monitoring during the supervisory visits to each FEA's "client" farmers, and during the program review by the regional officers at the briefing sessions. These briefing sessions would ensure direct contact between regional officers and field level agents every two weeks and would constitute a key mechanism, not only for imparting technical know-how to field staff, but also for monitor- ing and controlling the entire system. The briefing sessions would, in time, establish personalized answerability between FEAs, DEOs and regional officers and this is unlikely to be improved by paperwork.  - 24 - 2.35 The FEA would maintain a diary to record his activities including farmer visits. He would note the number of contact farmers and other farmers met, the technical recommendations extended, the response of farmers, and the problems encountered. The diary would be inspected and discussed during visits of DEOs and higher level supervisors. No formal reports from the FEAs would be required. A similar diary would be maintained by the DEO. Written reporting would be adopted only at the higher levels of responsibility, starting with the DEOs whose reports would be submitted to the REO before the bi-weekly briefings. These reports would reflect the progress of that part of the extension program for which the DEOs are responsible, with respect to the regularity of visits to farmers, the quality of farmer responses, and the implementation of recommendations by farmers. 2.36 On the state farms, internal reporting would originate with the foreman. Like the FEAs, state farm foremen would keep diaries which would be periodically inspected by the field manager. The field manager, in turn, would be required to file written reports based on the foremen's diaries and on his own observations. This report would be submitted to the Assistant Manager at bi-weekly training sessions as a routine function, and would not involve the Monitoring and Evaluation Section. 2.37 Monitoring and Evaluation. The Extension and Farm Management Advisory Services would be monitored by PMU to provide management with an assessment of its impact on the farms. A monitoring and evaluation section would be established within the PMU and would consist of two services, one for data collection and one for data processing. Data collection would be under- taken through four teams of investigators located at Hargeisa, Bonka, Jannale, and Jamame. These teams would undertake continuing random sample surveys in regard to various activities of the NES and FMAS, including the regularity of FEA visits to farmers groups, the intensity of coverage of farmers, the extent of acceptance of recommendations by farmers, and the effectiveness of the state farms organization. Data would be aggregated and processed at the end of each round of surveys and analyzed to indicate overall progress and to reveal areas of weakness. 2.38 The ultimate test of the efficacy of the extension service is the effect it would have in increasing crop yields and farmers' incomes. The Monitoring and Evaluation Section would gradually build up a system for gathering information on the variables affecting farmers incomes. Such vari- ables include crop and animal husbandry practices, input and output marketing channels available to farmers, and storage facilities and techniques. On State Farms, similar information would be gathered to assess their production efficiency, the extent of their contribution to the fulfillment of the coun- try's food production objectives and their financial viability. 2.39 The Monitoring and Evaluation Section would undertake reviews of samples of DEO's reports and of successful FEA's, foremen's, and field managers' diaries in order to identify trends and patterns in relation to their work in the field.  - 25 - 2.40 Physical and financial information on Project progress would be com- piled at the end of every six months and presented to the Technical Coordina- tion Committee to serve as a decision making tool for the MOA. Results of internal monitoring and evaluation by PMU would be sent to IDA within 6 months of the end of e-ch fiscal year. This was confirmed by Government during nego- tiations. 2.41 The information generated through regular reporting and sample surveys would be supported by empirical surveys and ad hoc studies with limited objectives but of relevance to the NES and FMAS. Examples of such studies would include: (a) a monitoring survey (pre-harvest months) of a sample of contact farmers and state farms; (b) an evaluation survey (at harvest time) of a sample of the total farming population; and (c) ad hoc monitoring and evaluation studies such as the per- formance of DEOs and FEAs in selecting contact farmers, the quality of training sessions, farm practices and case studies regarding the impact of extension on villages. 2.42 Two sample surveys (pre-harvest monitoring and harvest time evalua- tion) would be replicated periodically and would generate time series data, thus allowing for comparisons over time. The ad hoc studies would serve to complete the survey information with a more analytical in-depth exercise. During negotiations, Government gave assurances that the sample surveys would be carried out following consultation with IDA. The Agricultural Secondary School 2.43 The Agricultural Secondary School would be the major supplier of trainees for the FMETC. In order to ensure the quality of such trainnes, the school would be strengthened through the provision, over 2 years, of technical assistance and training equipment. The Project would provide for an Agricul- tural training specialist to assist in curriculum development, six teachers in the fields of Agricultural Economics, Agricultural Chemistry and Soil Science, Agricultural Engineering, Animal Husbandry and Health, Plant Protection and Agronomy. The Project would also provide for teaching, laboratory and print- ing equipment, transport facilities and operting costs. Government has been actively seeking sources for hiring the technical assistance for the Agricul- tural secondary school and assured the Association that the 6 teachers and the Agricultural Training Specialist would be appointed no later than August 31, 1979.  - 26 - Technical Assistance and Training Abroad 2.44 The Project would require the services of 26 internationally recruited specialists whose qualifications and experience would be acceptable to IDA, for a total of 87 man-years, and at an estimated cost of US$80,000 per man year (Table 2.1). GOS has identified definite sources for recruiting the bulk of the required Technical Assistance Staff, with the exception of those required for the Central Statistical Department (para. 2.49), and is actively seeking to identify candidates for the unfilled positions. 2.45 In order to ensure continuity of Project activities after the in- vestment period, provision would be made for training Somali staff at a level that would allow them to take over full responsibility for Project implementa- tion. Operationally, two Somali faculty graduates would be nominated as counterparts for each internationally recruited expatriate appointee in the context of the Project. While one of these Somali graduates would be working full-time with the expatriate on the Project, the other would be sent abroad for undertaking studies at the Master of Science level in the required field of specialization (Table 2.2). In this manner two Somalis would be trained for each internationally recruited technician. The expatriate staff would start working in line positions and as Somali trained staff start returning, the expatriates would devote progressively more of their time to on-the-job training and ultimately assume the functions of advisors towards the end of the Project period. 2.46 In addition, the Project would provide for 3 to 6 month study trips (Table 2.2) for extension and farm management field staff and for 3 to 6 week field visits for MOA senior staff. Study trips would be organized for the counterparts of the Farming System Specialist, Plant Protection Specialist, and Communication Specialist of the NES, for the counterparts of the Farm Economist, the Demonstration State Farm Manager and the Farm Management Specialist of the FMAS and for 52 District Extension Officers. The purpose of these study trips would be to give these technicians the opportunity to observe how other countries are dealing with technical, managerial and com- munication issues in agriculture similar to those likely to be encountered in Somalia. The field visits for senior MOA staff at the Department Director's level and above would aim at giving these senior officials the opportunity for first-hand evaluation of potential results of effective extension work. 2.47 The programming, location and nature of training abroad, study trips and field trips would be determined by the Project Director assisted by t'ne Project Technical Manager and a program would be submitted for approval by IDA by March 31, 1980. Assurances to that effect were obtained at nego- tiations.  - 27 - Table 2.1: Technical Assistance Required (In man-years) Project Component Year 1 Year 2 Year 3 Year 4 Year 5 FMETC Agricultural Training Specialist 1 1 1 1 1 Agronomist (rainfed agriculture) - 1/2 1 1 1 Agronomist (irrigated agriculture) - 1/2 1 1 1 Farm Management Specialist - 1/2 1 1 1 Agricultural Engineer - 1/2 1 1 1 Master Mechanic - 1/2 1 1 1 Livestock Specialist - 1/2 1 1 1 NES Agricultural Extension Specialist 1/2 1 1 1 1 Farming System Specialist 1/2 1 1 1 1 Plant Protection Specialist 1/2 1 1 1 1 Communications Specialist 1/2 1 1 1 1 FMAS Farm Economist 1/2 1 1 1 1 Farm Management Specialist 1/2 1 1 1 1 Farm Manager (DSF) 1 1 1 1 1 PMU Project Technical Manager 1 1 1 1 1 Financial Controller 1 1 1 1 1 Agricultural Secondary School Agricultural Economist 1 1 - - - Agricultural Chemistry and Soil Science Specialist 1 1 - - - Agricultural Engineer 1 1 - - - Animal Husbandry and Health Specialist 1 1 - - - Agriculturalist 1 1 - - - Agricultural Training Specialist 1 1 - - - Central Statistical Department (CSD) Economist/Statistician 1 1 - - - Agriculturalist/Statistician 1/2 1 - - - Demographer/Statistician 1/2 1 - - - Data Processing Specialist 1 1 - - - TOTAL 16 23 16 16 16  - 28 - Table 2.2: Training Abroad of Somali Staff (In man-years) Number of Year Year Year Year Year Field of Studies Trainees 1 2 3 4 5 Agricultural Education 2 - 1 1 1 1 Agronomy 6 - 3 3 3 3 Farm Management 6 - 3 3 3 3 Agricultural Economics 4 - 2 2 2 2 Agricultural Engineering 2 - 1 1 1 1 Agricultural Machinery 2 - 1 1 1 1 Accounting and Financial Control 2 - 1 1 1 1 Statistics 8 7 8 1 1 1 Agricultural Extension 2 - 1 1 1 1 Plant Protection 2 - 1 1 1 1 Communication 2 - 1 1 1 1 Total 38 7 23 16 16 16 Study Trips Farming System 1 - 0.50 - Plant Protection 1 - - 0.25 - - Communication 1 - - - 0.25 - Farm Management 3 - 0.25 0.25 0.25 - DEOs 52 - 4.00 4.00 4.00 4.00 Field Visits 6 0.25 0.50 - - - Total 64 0.25 5.25 4.50 4.50 4.00 National Research Strategy 2.48 Agricultural research in Somalia is at its early development stage. It presently lacks the sense of direction that would make it purposeful and economic for the country to undertake. Because of the dependence of the Extension Service on research, the Project would provide for consultancy - services to undertake a study aimed at developing a research strategy which would serve as a basis for the future initiation of research programs that would back up agricultural extension and ensure its utility and viability. The study would focus on: (a) evaluating the adequacy of the existing research institutions and assessing the relevance of ongoing crop and animal husbandry research to national production objectives; (b) assessing the present level of governmental support for research, particularly with respect to financial means, manpower, equipment and other research facilities;  - 29 - (c) assessing the manpower needs of agricultural research and out- lining a long-term training program for research staff; and (d) identifying research areas where Somalia can benefit from work being done at International Research Institutions. Government agreed that terms of reference for the preparation of the strategy would be agreed with IDA and the study report on that strategy would be sub- mitted to IDA for review by September 1980. The Central Statistical Department (CSD) 2.49 Development of statistics in Somalia is the responsibility of the Central Statistical Department of the Planning Commission. Government requested assistance in undertaking the preparation of a comprehensive statis- tical development program. Funds provided under the present Project would serve for building the basis for such a program. This would include the provision of technical assistance to identify the weaknessess of the present system and develop an efficient methodology for improving it, training of Somali staff, initiating the build up of field statistical offices, and start- ing a limited statistical work program involving such items as a national multi-purpose household survey, an agricultural land use and yield survey and cost structures surveys for various production activities. Disbursement of funds for the support of CSD would be subject to Government having appointed the necessary technical assistance staff for that Department. III. PROJECT COST ESTIMATES, FINANCING, PROCUREMENT AND DISBURSEMENT A. Project Cost Estimates 3.01 Total Project costs, including contingencies, are estimated at So.Sh. 204.0 million (US$32.4 million). The foreign exchange component rep- resents 64% of total costs, the equivalent of So. Sh. 129.9 million (US$20.7 million). Project cost estimates are summarized below:  - 30 - Table 3.1: Project Cost Summary Local Foreign Local Foreign Foreign Project Component Currency Exchange Total Currency Exchange Total Exchange ---- So. Sh. million---- ------US$ million------ % Project Management 7.1 11.1 18.2 1.1 1.8 2.9 68 Consultancy Services: Procurement and Preparation Phase II - 3.2 3.2 - 0.5 0.5 100 Farm Management and Extension Training Center 11.4 23.9 35.3 1.8 3.8 5.6 66 National Extension Service 27.5 27.5 55.0 4.3 4.4 8.7 50 Farm Management Advisory Service (excluding DSF) 1.7 6.9 8.6 0.3 1.1 1.4 79 Demonstration State Farm 7.2 12.8 20.0 1.1 2.0 3.1 65 Research - 0.7 0.7 - 0.1 0.1 100 Central Statistical Department 1.3 5.4 6.7 0.2 0.9 1.1 82 Consultancy Services for Civil Works - 1.2 1.2 - 0.2 0.2 100 Agricultural Second- ary School 0.3 7.8 8.1 0.1 1.2 1.3 92 Total Base Costs 56.5 100.5 157.0 8.9 16.0 24.9 64 Physical Contingencies 2.4 4.4 6.8 0.4 0.7 1.1 64 Price Contingencies 15.2 25.0 40.2 2.4 4.0 6.4 64 Total Cost 74.1 129.9 204.0 11.7 20.7 32.4 64 Type of Expenditure Vehicles and Equipment 1.9 15.4 17.3 0.3 2.5 2.8 89 Civil Works 17.7 16.8 34.5 2.8 2.7 5.5 49 Technical Assistance - 47.4 47.4 - 7.5 7.5 100 Training Abroad - 8.8 8.8 - 1.4 1.4 100 Local Salaries and Wages 32.0 - 32.0 5.0 - 5.0 - Operating and Maintenance Costs 4.9 12.1 17.0 0.8 1.9 2.7 70 Total Base Cost 56.5 100.5 157.0 8.9 16.0 24.9 64 Physical Contingencies 2.4 4.4 6.8 0.4 0.7 1.1 64 Price Contingencies 15.2 25.0 40.2 2.4 4.0 6.4 64 Total Cost 74.1 129.9 204.0 11.7 20.7 32.4 64  - 31 - 3.02 Costs are estimated on the basis of prices expected to prevail in March 1979. Physical contingencies are allowed at the rate of 10% of capital and operating costs items, except salaries. Price contingencies have been calculated at the following rates: vehicles, equipment and all other operat- ing costs 6.5% for 1979 and 6.0% per year thereafter, and civil works and salaries and wages 10% for 1979 and 8% per year thereafter. Physical and price contingencies combined represent 30% of base costs. Price contingencies alone represent 25.7% of base costs over the Project period. The Government of Somalia does not levy import duties on goods for the agricultural sector. Consequently all capital items are included without such duties. Costs of internationally recruited staff are estimated at US$80,000 per man year, except for those employed by the Agricultural Secondary School who were costed at US$50,000 per man year because the positions are junior ones. Local salaries are those suggested by MOA and include field allowances and per diem for all Project staff. A total of US$0.5 million is included in Project costs to pay for consultancy services to help PMU with procurement related matters and for follow-up studies needed for preparation of a second phase Project, if needed. B. Financing 3.03 The financing of the Project would be shared in the following amounts and proportions: Amount % of Total Amount So. Shs. Project Costs US$ million million % IDA 10.50 66.0 32.3 ADF 8.88 55.9 27.4 USAID 7.60 47.9 23.4 EEC 1.50 9.5 4.6 GOS 3.96 24.7 12.3 Total Costs 32.44 204.0 100.0 The proposed IDA Credit of US$10.5 million would be to the Government of Somalia on standard IDA terms. IDA would co-finance the Project with ADF, USAID, the EEC Special Action Account and Government along the lines described in Table 3.2 below. IDA would provide funds for establishment and operation of the PMU for operation of the Farm Management and Extension Training Center and the National Extension Service and for assistance to the Central Statis- tical Department in the Planning Commission. ADF would finance civil works and the Demonstration State Farm except technical assistance. USAID would provide funds for technical assistance for the Farm Management and Extension Training Center and the National Extension service, for developing a national  - 32 - Table 3.2 Project Financing GOS IDA ADF USAID EEC - ------------US$000- Vehicles and Equipment Year 1 14.2 29.9 18.1 144.1 331.0 2 86.2 294.0 528.5 871.1 252.0 3 24.0 160.0 2.1 243.0 - 4 12.0 - - 120.2 5 23.6 - 20.0 235.4 - Sub-Total 160.0 483.9 568.7 1,613.8 583.0 Civil Works Year 1 - - 965.5 - 2 - - 4,458.1 - 3 - - 1,377.2 - 4 - - 110.4 - 5 - - 210.5 - Sub-Total - - 7,121.2- Technical Assistance Year 1 - 841.0 42.5 392.8 401.0 2 - 1,191.5 46.2 945.2 434.0 3 - 741.2 50.8 1,401.1 - 4 - 790.0 50.4 1,602.9 5 - 860.2 53.5 1,636.2 - Sub-Total - 4,423.9 243.4 5,978.2 835.0 Local Salaries and Wages Year 1 220.0 180.9 15.4 - - 2 430.0 366.0 90.7 - 3 580.0 486.2 166.8 - 4 1,050.0 693.8 - - 5 1,520.0 1,080.2 - - Sub-Total 3,800.0 2,807.1 272.9 - - Operating and Maintenance Costs Year 1 - 324.2 32.5 - 40.0 2 - 378.5 106.5 - 42.0 3 - 622.6 176.6 - - 4 - 691.2 202.2 - 5 - 768.6 156.0 - - Sub-Total - 2,785.1 673.3 82.0 Total Costs 3,960 10,500.0 8_880.0 7,592.0 1,500.0  - 33 - research strategy and for training abroad of Somali staff. The EEC Special Action Account would finance assistance to the Agricultural secondary school at Afgoi. The Government of Somalia would contribute US$3.96 million or 12.3% of total Project costs. 3.04 IDA's participation of US$10.5 million would cover about US$6.9 mil- lion, 66% of which would cover foreign exchange expenditures and 34% would be for local currency expenditures. It would cover 33.5% of total foreign exchange costs of the Project. Direct foreign exchange expenditures financed by IDA would amount to about US$4.8 million or 46% of IDA's contribution. 3.05 Funds for all Project expenditures financed by IDA would be chan- neled by Government as a grant to the Project, which would be operated as an identifiable separate entity within the MOA, and would also have a separate Bank account. In order to ensure smooth Project implementation and continued liquidity, the Government would provide the PMU with operating funds in the form of a revolving fund, initially in the amount of So. Sh. 3.0 million, to be paid into the Project account. This amount would be increased to So.Sh. 5 million by the end of the first year of the Project investment period. Assurances were obtained during negotiations that Government would credit the Project account every six months with sufficient funds to replenish the account and meet expenditures during the next six months. The initial payment to the Project Account would be a condition of Project effectiveness. C. Procurement 3.06 The main items financed by IDA include vehicles and equipment (US$0.5 million), technical assistance (US$4.4 million), local salaries and wages (US$2.8 million) and operating and maintenance expenditures (US$2.8 million). 3.07 Contracts for the supply of vehicles and equipment would be awarded after international competitive bidding (ICB) in accordance with IDA guide- lines. Orders would be bulked whenever possible. Recruitment of the Proj- ect Technical Manager and the Financial Controller would be subject to IDA approval. Technical Assistance for the FMAS and CSD would be procured by Government after prior consultation with IDA. Training abroad would be planned and organized by the Project Director and the Project Technical Man- ager. Its nature and location would be subject to approval by IDA. Contracts for the supply of other Project inputs, including office equipment and sup- plies costing US$50,000 equivalent or more would be awarded after inter- national competitive bidding in accordance with IDA guidelines. Orders would be bulked whenever possible to attract the highest number of bidders. Con- tracts for less than US$50,000 but in the aggregate not exceeding US$300,000 would be awarded locally following Government procurement procedures which are satisfactory to IDA. Draft tender invitations and bid documents would be submitted to IDA for review before issue. Assurances were obtained during negotiations that the above procurement procedures would be followed.  - 34 - 3.0)8 For goods purchased under ICB, PMU would submit general procurement notices to IDA for insertion in the UN publication "Development Forum." D. Disbursement 3.0)9 The IDA Credit would be disbursed over about 5 years against: (a) 100% of expenditures on vehicles and equipment (US$0.4 mil- lion) for PMU, FMAS (excluding DSF), and CSD; (b) 100% of foreign exchange expenditures on Technical Assistance and Training abroad (US$3.5 million) for the PMU1, the FMAS (including DSF), and the CSD; (c) 41% of local expenditures on local salaries and wages (US$2.1 millon); (d) 100% of operating and maintenance costs (US$2.1 million) for PMU, FMETC, NES, FMAS (excluding DSF) and CSD; and (e) US$2.4 million would remain unallocated. 3.10 Disbursements under (a) and (b) would be fully documented. Dis- bursements under (c) and (d) would be made against appropriate certificates of expenditures, certified by the Project Director and the Project Technical Maniager, the documentation for which would be retained by the Borrower and made available for inspection by the Association during the course of super- vision missions. The schedule of estimated disbursements is in Table 3.3. Any funds remaining in the Credit account upon completion of the Project would be available for reallocation to Project-related expenditures at the discretion of the Association. 3.11 Disbursements against assistance to the Central Statistical Depart- ment would be conditional on the Government having selected the four technical assistance staff with competence acceptable to IDA.  - 35 - Table 3.3: Estimated IDA Disbursements (US$ million) Disbursements Semester Cumulative 1979 1st 2nd /a 0.50 0.50 1980 1st 0.91 1.41 2nd 1.00 2.41 1981 1st ~ 1.54 3.95 2nd 0.74 4.69 1982 1st 1.32 6.01 2nd 0.74 6.75 1983 1st 1.34 8.09 2nd 0.79 8.88 1984 1st 1.62 10.50 2nd /b /a Estimated effectiveness date: July 1979. /b Estimated closing date: June 30, 1985. E. Accounts and Audit 3.12 Separate accounts would be kept, reflecting expenditures financed by each co-financier. Project related accounts would be audited by an inde- pendent auditor. The Magistrate of Accounts is an independent auditing agency in Somalia. Although the auditing capability of this agency is presently less than optimum, IDA is considering measures for strengthening it under the Tech- nical Assistance Credit. In view of this consideration, and provided this assistance materializes, the Magistrate of Accounts would be an acceptable independent auditor for Project accounts. Government would submit audited accounts to IDA within six months of the end of each fiscal year. Assurances to the above were obtained at negotiations. IV. ORGANIZATION AND MANAGEMENT 4.01 The major institutional objective of the Project would be the estab- lishment of direct lines of authority and a clear definition of responsibili- ties within the National Extension and Farm Management Advisory Services of the MOA (Chart 2). The responsibility for extension and for the management of state farms presently lies with the Department of Production and Extension of  - 36 - the MOA. This Department would have overall responsibility for the implemen- tation of the Project. In order to allow it to assume this responsibility effectively, the Department of Production and Extension would be strengthened through the provision of trained staff, the establishment of a National Tech- nical Headquarters for the NES and FMAS and the constitution of a Technical Coordination Committee under the Director General of the MOA. The present organization of the Department in Mogadishu would remain relatively unchanged and continue to assume its overall coordination, policy making and adminis- trative functions. NES Headquarters would be located at Afgoi, close to the existing agricultural training institutions and the Central Agricultural Research Station, and next door to the proposed FMETC. The NES would be responsible for developing appropriate extension programs for various regions and for providing technical back-up for the regional extension organizations. The FMAS headquarters would be located adjacent to the NES Headquarters at Afgoi. It would be responsible for accounting and technical back-up for the management of large scale farms, for the establishment and operation of a farm management data collection and processing system, and for advising Government on large scale farming policy and related issues. The Technical Assistance staff provided for under the Project would be responsible to the Project Director through the Project Technical Manager. Project Management Unit (PMU) 4.02 The PMU would be established at Afgoi. It would consist of the Somali Project Director, an internationally recruited Project Technical Manager, an internationally recruited Financial Controller and their support staff. The Project Technical Manager would be responsible to the Project Director. He would be the leader of the team of internationally recruited staff and would assume overall responsibility for assisting the Project Director in coordinating the implementation of the Project, including the construction of facilities created under the Project, the coordination and quality control of training programs, the proper use of Project funds and the monitoring and evaluation of Project activities. The Financial Controller would be responsible to the Project Director. He would assist the Project Technical Manager in overseeing the procurement of Project related goods and services. He would be responsible for establishing a system of strict finan- cial control and accountability for the constitutent units of the Project. The appointment of the Project Director would be conditional upon IDA approval of his qualifications and terms of reference which were agreed upon at nego- tiations. The official establishment of the PMU would be a condition of credit effectiveness. 4.03 The Monitoring and Evaluation Section would be a new addition to the present structure of the Department of Production and Extension. It would be headed by an experienced Agricultural Economist who would be responsible to the Project Technical Manager. The data collection unit and the data pro- cessing unit would come under his authority.  - 37 - 4.04 GOS would submit annual and half yearly Project progress reports to financing agencies. Within six months of completion of disbursements under the IDA Project, GOS would, through the Department of Extension and Training of the MOA, prepare a completion report on the implementation of the Project, including actual costs, benefits and contribution towards the accomplishment of the country's development objectives. Assurances to this effect were obtained from Government at negotiations. The Farm Management and Extension Training Center (FMETC) 4.05 The Center would be headed by an internationally recruited Agricul- tural Training Specialist as its principal. He would be responsible to the Project Director through the Project Technical Manager and would have a Somali deputy. The Principal would be responsible for curricula, the programming and supervision of training, and also for establishing and maintaining strong professional links with the neighboring agricultural training institutions, agricultural research centers, the NES and the FMAS. The teaching staff at the FMETC would come under his immediate authority. The Farm Management Advisory Service (FMAS) 4.06 The FMAS would be a new unit. It would be headed by an internation- ally recruited experienced Farm Economist, who would be responsible to the Project Director through the Project Technical Manager. The FMAS would have its headquarters in Afgoi, adjacent to the NES and the FMETC. In addition to providing field back-up for farm managers and advice to the MOA regarding large scale farms, the FMAS would be responsible for establishing and running the 400 ha Demonstration State Farm at Jannale, and for strengthening the management of two other state farms, also at Jannale, to make them suitable for accommodating students from the FMETC during their field internship stage. The Manager of the DSF, who would also be internationally recruited, would be responsible to the Project Director through the head of the FMAS. The FMAS would also have a Farm Management Specialist who would be responsible to the Project Director through the FMAS head. The National Extension Service (NES) 4.07 A Technical Headquarters for the NES would be established at Afgoi, headed by a Technical Director, who would be responsible to the Project Director through the Project Technical Manager. He would be assisted by a Farming System Specialist, a Plant Protection Specialist, a Communication Specialist who would all be internationally recruited, and a Somali Training Program Officer. The most important criteria for recruiting expatriates for the Extension Service would be their experience with extension in environments similar to Somalia. 4.08 At the regional level, the extension service would be headed by a Regional Extension Officer assisted by a Regional Farming System Specialist and a Regional Plant Protection Specialist. All three would be graduates of the Faculty of Agriculture and the FMETC. The Regional Extension Officer  - 38 - would be responsible to the Technical Director of the NES. At the field level, the Field Extension Agents, who would be graduates of the Extension Training Centers at Bonka or Jannale, would be responsible to the District Extension Officer who would be a graduate of the Agricultural Secondary School and the FMETC. The District Extension Officer, in turn, would be responsible to the Regional Extension Officer. 4.09 In addition to its regional and district organizations, the NES would maintain two Extension Training Centers, one at Bonka and one at Jannale. These ETCs would be headed by principals, who would be graduates of the Faculty of Agriculture and who would be responsible to the Technical Director of the NES. The Agricultural Secondary School 4.10 The Technical Assistance team provided for the Agricultural Second- ary School would include six technical teachers and an agricultural training specialist as the team leader who, in turn, would be responsible to the Proj- ect Director through the Project Technical Manager. The Central Statistical Department (CSD) 4.11 This Department of the State Planning Commission would be strength- ened through the provision of technical assistance and training of Somali staff. An internationally recruited Economist/Statistician would lead a team comprising an Agriculturalist/ Statistician, a Demographer/Statistician and a Data Processing Specialist. The team leader would be responsible to the Director of the Central Statistical Department in the State Planning Commis- sion. V. PRODUCTION, FARMER BENEFITS AND EFFECTS ON GOVERNMENT CASH FLOW A. Production and Farmer Benefits 5.01 The Project is essentially an institution building and technical assistance project. The benefits would materialize progressively over the years and could not be fully expressed in terms of increased production because of the complementary factor inputs required to bring about produc- tivity increases. Increases in productivity would also depend on adoption rate of improved practices and the efficiency of the newly trained farm managers. 5.02 The Project would provide the basis for building efficient extension and farm management services necessary to increase the productivity and income of farmers in Somalia. The estimated 195,000 farm families who would, pro- gressively, be served by the NES are all subsistence farmers. The cost of the extension component would amount to US$60 per farm family or, on the basis of  - 39 - the area presently cultivated by small farmers, to about US$18 per ha for the investment period. A high proportion of these costs is intended to pay for technical assistance and staff housing. Without these two items extension costs would be US$32 per farm family or US$10 per ha. 5.03 Based on an estimated area of about 240,000 ha planned for large scale production units to be progressively covered by the Project, the cost of the Farm Management Advisory service including the DSF would amount to US$24 per ha for the investment period. Without the technical assistance, the cost would be US$16 per ha. 5.04 The project is in line with Somalia's agricultural development objectives, particularly with respect to: (a) self-sufficiency in basic food commodities; (b) reduction of income disparities; (c) improvement of the productivity and incomes of the poorest segments of the Somali population; and (d) strengthening of the institutions serving agriculture. 5.05 In the medium term, increased crop production attributable to the Project would be primarily the result of improved extension and farm manage- ment services. Changes in cultural practices, for most farmers, would be simple and would not initially involve increases in cash expenditure. Mois- ture conservation, row planting, increased and homogeneous plant population, and improved grain storage practices would be stressed. At the same time, more advanced farmers would be progressively introduced to seed dressing, plant protection, alternative cropping systems and animal traction. In this manner, and as research result become available, farmers would be gradually guided in the selection of production practices that would be the most eco- nomic for them and that fit well in the technological level they operate in. 5.06 Food production in rainfed and irrigated areas is projected to increase as a result of increased productivity and the expansion of the area under crops. Sorghum is the major crop on rainfed farms, and maize the major crop on small scale irrigated farms. It is estimated that a few simple changes in production techniques could increase sorghum yields from the present average of 350 kg/ha to 500 kg/ha and maize yields from the present average of 875 kg/ha to 1,000 kg/ha. These yield increases are believed to be realizeable over a period of five years if the extension service succeeds in merely convincing farmers to have a uniform plant coverage in each field. The projected yields are well within field results already obtained by farmers in Somalia. Observed yields in 1977 (a good year) were between 300 and 1400 kg/ha for sorghum and between 600 and 2000 kg/ha for maize. This variation in yields cannot be attributed to varying use of marketed inputs, but rather to different soil conditions and cultural practices including land preparation, sowing techniques, and seeding rates. Animal traction would allow the average  - 40 - farm family to cultivate up to 50% more land with the same labor force. This would bring the average size of cropped holdings from the present 5 ha to over 7 ha. Since suitable land would not be a constraint in the foreseeable future, this increase is believed to be a realizeable objective and one that, if properly implemented, would not necessarily interfere with other develop- ment goals such as livestock production. 5.07 Sorghum presently accounts for about 55% of the cropped land, followed by maize, about 25%, and sesame, about 10%. The Project would put emphasis on the major crops - sorghum, maize and sesame, particularly in the early years. The following assumptions have been made for estimating the incremental production attributable to the strengthening of the extension service: Level I For farmers presently at a low level of technological sophistica- tion, the simple improvements of production practices (Level I) recommended would be adopted, on the average, by 3% of farmers per year during the first 8 years. This rate would increase to 5% for the succeeding 5 years and to 7% thereafter. At full development, by year 15, increments in yields per ha would have risen from 25 kg to 100 kg for sorghum, from 25 kg to 100 kg for maize, and from 10 kg to 70 kg for sesame. The yield increases would be progressive, resulting from successive technological improvements, and would be achieved by an increasing proportion of the farm population. Level II Farmers at a more advanced technological level could increase their cropped area through the use of animal traction (Level II). It is assumed that this would become significant by year 4 of the Project period and would progressively be taken up by half of the farmers who adopted the simple improved practices (Level I). It is assumed that this would result in a 25% increase in cropped area for those adopting animal traction. The expansion could not be greater because of the shortage of good crop land in certain areas. Yields used in estimating incremental production from the new acreage are those assumed for farmers at Level I of technology. Level III Farmers at yet a more advanced level of technological sophistica- tion would adopt the use of marketed inputs (such as insecticides, improved seeds and fertilizers for irrigated areas, Level III). This would become significant by year 8 and would be taken up by 50% of the more progressive farmers, particularly those who also  - 41 - had adopted animal traction. The incremental yields resulting from these practices are estimated to average 20% of those assumed for Level II. 5.08 Countrywide incremental production from small scale farms attri- butable to the project is summarized below: Table T4: Incremental Production From Small Farms with Project (tons) Stage I Stage II Stage III Total Year 5 Sorghum 1,150 2,662 -- 3,812 Maize 550 2,975 -- 3,525 Sesame 180 588 -- 768 Year 10 Sorghum 5,700 6,640 664 13,004 Maize 2,650 7,020 702 10,372 Sesame 880 1,452 145 2,477 Year 15 Sorghum 21,600 13,590 1,359 36,549 Maize 10,100 13,395 1,340 24,835 Sesame 3,010 2,820 282 6,112 5.09 These quantities are significant for a food deficient country such as Somalia. The estimates are believed to be conservative and achievable with an only moderate performance by the extension service. Under the above assumptions the national production of the three major crops (sorghum, maize and sesame) would increase at the average rate of about 2% per year over the base year, which is lower than the rate of population growth. It is essen- tial, therefore, that the above estimates be surpassed; this would not be difficult provided a strong and disciplined extension service is set up and a steady flow of yield increasing practices is developed through a well thought out research program. 5.10 Farming in Somalia is, presently, a low input/low output activity in which land and family labor are the major ingredients. The extension service would aim at increasing the output through better use of these resources. Farmers would thus be under no financial pressures and would only be asked to implement practices which can easily be explained to them in terms of labor savings or higher output per hectare. As their trust in the extension service develops, farmers would be introduced to practices, such as animal  - 42 - traction, that would allow them to exploit more land with the same labor force a,nd, at a more advanced stage, allow them to obtain more output per hectare through purchased inputs such as insecticides, improved seeds and, where applicable, fertilizers. 51.11 Most importantly the incremental production from small farms, if properly stored, would allow the average family to meet its basic food needs and to generate a marketable surplus. The extension service would help farmers take full advantage of what they produce through adequate storage technology and information on market outlets. It is estimated that over half of the increased production would find its way into the market and would benefit urban consumers. By year 10 the incremental marketable surplus from the small scale private sector would be at least 7,000 tons of sorghum, 5,000 tons of maize and 1,300 tons of sesame. 5.12 Production on large scale farms would improve as a result of the introduction of sound management practices and more efficient use of produc- tive resources. Present Government development policies appear to favor the production of rice, maize and sesame on irrigated large scale farms. Assuming that this trend continues, it is estimated that by year 10 about 26,000 ha would be under efficient management. This could result in doubling of present yrields of 1000 kg/ha for rice, 1600 kg/ha for maize and 400 kg/ha for sesame. These yield increases are feasible with the existing knowledge, and are real- izeable in a ten-year period, since the major constraint to increased produc- t:ivity, namely the absence of management capability, would have been removed. The incremental production per year on large scale farms would then amount to a minimum of 13,000 tons of rice, 7,000 tons of maize and 2,000 tons of sesame. By year 10, this would bring the total expected incremental produc- tion from both small and large scale farms up to 13,000 tons of sorghum, 13,000 tons of rice, 17,000 tons of maize and 4,500 tons of sesame. 5.13 On an average rainfed farm with 5 ha under crops per year, farm income would increase from the present So. Sh. 1,500 to So. Sh. 2,200 with extension as the only additional input; to So. Sh. 2,500 with the introduc- tion of animal traction; and to So. Sh. 3,700, with the introduction of marketed inputs. This would result in an increase in the return on family :Labor from the present So. Sh. 4 to about So. Sh. 10 per man day, which corresponds to the cost of labor in urban areas. Similarly, on an average iLrrigated farm with 3 ha under crops per year, farm income would increase from the present So. Sh. 1,600 to about So. Sh. 2,000 with extension as the only additional input; to So. Sh. 2,250 with the introduction of animal traction; and to So. Sh. 3,600 with the introduction of marketed inputs. The return on family labor would increase from the present So. Sh. 4.4 to So. Sh. 10 per imanday. The figures above are derived from farm models which are summarized :in Tables 5.1 and 5.2.  - 43 - Table 5.1: Farm Model (Rainfed) Improved Improved Improved Present (Level One) (Level Two) (Level Three) Cropped Area (ha) 1/ 5 5 7 7 Sorghum 4 4 5 5 Pulses (intercropped with sorghum) 4 4 5 5 Other Crops 1 1 2 2 Yield Sorghum (kg/ha) 350 500 500 800 Pulses (kg/ha) 70 100 100 150 Value of Output ----------------- So. Sh. ------------------- Sorghum (So.Sh.75/100 kg) 1,050 1,500 1,875 3,000 Pulses (So.Sh.150/100 kg) 420 600 750 1,125 Other Crops 200 250 500 500 Total 1,670 2,350 3,125 4,625 Costs of Production Investment 2/ - - 400 500 Operating Cost 3/ 200 200 200 400 Total 200 200 600 900 Net Financial Return 1,470 2,150 2,525 3,725 Family Labor (Mandays) 4/ 360 360 360 360 Net Financial Return per ha 294 430 360 532 Net Financial Return per manday 4.1 5.0 7.0 10.3 1/ Total surface area, cropped in Gu and Der seasons. 2/ Ox-drawn implements depreciated over 3 years with oxen sold for meat and replaced every 3 years. At Stage Three farmers would also buy plant protection equipment. 3/ Including hand tools, seeds, insecticides. 4/ Labor available during the cropping seasons: the equivalent of 3 adults per family for 6 months at the monthly rate of 20 mandays for crops.  - 44 - Table 5.2: Farm Model (Irrigated) Improved Improved Improved Present (Level One) (Level Two) (Level Three) Farm Area (ha) Area Cropped (ha) 1/ 3.0 3.0 4.0 4.0 Maize 1.5 1.5 2.0 2.0 Sesame 1.0 1.0 1.0 1.0 Other Crops 0.5 0.5 1.0 1.0 Yield (kg/ha) Maize 875 1,000 1,000 1,600 Sesame 400 500 500 600 Value of Output ------------------ So. Sh. ------------------ Maize (So.Sh.75/100/kg) 985 1,125 1,500 2,400 Sesame (So.Sh.250/100 kg) 1,000 1,250 1,250 1,500 Other Crops 300 300 600 1,200 Total 2,285 2,675 3,350 5,100 Costs of Production Investment 2/ 300 300 700 700 Operating Cost 3/ 400 400 400 800 Total 700 700 1,100 1,500 Net Financial Return 1,585 1,975 2,250 3,600 Family Labor (Mandays) 360 360 360 360 Net Financial Return per ha 528 658 562 900 Net Financial Return per manday 4.4 5.5 6.3 10.0 1/ Total surface area, cropped in Gu and Der seasons. 2/ Oxen and oxen-drawn implements and irrigation related expenditures. 3/ Including hand tools, seeds, insecticides.  - 45 - B. Government Cash Flow 5.14 Government would finance So. Sh. 22 million or 10.7% of the Project cost. After the implementation period, Government would have to meet recur- ring operating and maintenance costs of about So. Sh. 29 million (US$4.6 million) per annum (in 1984 prices) as well as meet debt service payments to IDA and the other financiers. The Project would earn direct income through the sale proceeds of production at the Demonstration State farm and would save on subsidy paid for grain that would have been additionally imported in the absence of the incremental production ascribable to the Project. In addition, Government would also recoup part of its expenditures, through income tax levied on salaries paid under the Project. 5.15 Over the estimated life of the Project (15 years), the incremental revenues and expenditures ascribable to the Project would be as shown below: Million So. Sh. Million US$ Credit (+) 182 (+) 28.9 Tax revenue (+) 19 (+) 3.0 DSF sales (+) 52 (+) 8.3 Savings on import subsidy (+) 241 (+) 38.3 Project costs and maintenance (-) 491 (-) 77.9 Debt services (-) 26 (-) 4.1 (-) 23 (-) 3.5 Within the projected 15 years, Government's net cash flow would be negative until year 11 (except for years 3 and 4) and positive thereafter. In year 15, the cumulative cash flow would still be negative at So. Sh. 23 million (US$3.5 million). It would, however, turn positive in year 16 and remain so there- after. Possible farmers contributions to Government revenues through incre- mental indirect taxation resulting from increased income are expected to be significant but have not been taken into account. Although the budgetary implications of this Project taken alone are not severe, the issue of the aggregate effect of all development Projects on Government budget was dis- cussed with GOS and there is agreement that both GOS and IDA will keep this issue under close scrutiny in the context of both future project appraisals and economic and sector work. VI. BENEFITS AND ECONOMIC JUSTIFICATION 6.01 The Project would directly benefit the 195,000 farm families engaged in agricultural production as well as the farm laborers working on state and cooperative farms. The Project would indirectly benefit all food consumers through lesser reliance on imports and a steadier supply of food. It would benefit the rural population through the catalytic effect the extension ser- vice would have on general education, health, and nutrition.  - 46 - 6.02 The design and scope of the Project, the selection and relative size of Project components and the organizational arrangements for Project iLmplementation are based on past Bank experience with similar successful agricultural extension projects in various countries, particularly in India. Specific characteristics of the Somali environment, including budgetary and -institutional constraints, have been taken into account. As in all other :Lnstitution building projects, the benefits due to the Project cannot be estimated with accuracy. It is not possible to separate that part of benefits attributable to extension from that due to improved factor inputs not provided by the Project. In addition, farmers' reaction to extension in Somalia is as yet unknown, since up to now no extension service has functioned at the farm level. The economic rates of return given below should, therefore, be regarded as indicative. The following assumptions are made in estimating the rates of return: (a) Project period: The Project investment period is 5 years. Limited investment expenditures would, however, have to con- tinue until the end of year 7 if the extension and farm man- agement services were to become fully operational. For the economic evaluation, the investments for years 6 and 7 are included in the costs of the extension component. A project life of 15 years was used in calculating the rate of return. (b) Project components: Only two Project components, the National Extension Service and the Farm Management Advisory Service, which ogether account for about 58% of Project costs, were subjected to economic analysis. Costs include all incremental capital and operating costs for each component. The foreign exchange component was estimated using a shadow exchange rate of US$1 = So. Sh. 9 instead of the official rate of US$1 = So. Sh. 6.3, reflecting the scarcity of foreign exchange in Somalia. (c) Project benefits: The extension service would develop the means to cover all crop producing regions by year 8. It is assumed that the extension service would, by then, have suc- ceeded in reaching half the farmers and that 50% of those reached would have positively responded to their recommenda- tions. This means that farmers would adopt improved practices at the average rate of 3% per year during the first eight years. The adoption rate would increase thereafter. The cropped area would be expanded, starting in year 4, by half of the farmers who previously had adopted simple improved cultivation practices. The countrywide increase in the aver- age cropped area would be about 25%. Incremental production for sorghum, maize and sesame is estimated on the basis of their present relative importance in the cropping pattern.  - 47 - (d) Prices: Economic prices for sorghum, maize, rice and sesame are estimated on an import parity basis. Somalia is presently a food importer and the expected incremental production of these crops is unlikely to transform it into a net exporter within the life of the Project. 6.03 Based on these assumptions, the internal economic rate of return is in the range of 13 to 27% for the NES, which reflects different levels of achievement and various levels of possible cost overruns in bringing about the predicted crop yield increments attributable to extension. An internal economic rate of return of 27% is considered most probable. A different way of looking at the economic rationality of investing in developing the exten- sion service would be to consider that in order for this investment to make sense, all the NES would need to achieve over the next 15 years would be to help farmers increase their yields by 30 Kg/ha on half the present sorghum and maize acreages (9 and 3% increase over respective present yields). This is considered to be well within the capacity of the strengthened NES to accomplish. 6.04 The internal economic rate of return for the FMAS is in the range of 30 to 39% with a most probable rate of 39%. The internal economic rate of return for the DSF alone is in the range of 10 to 14%. This is a conservative estimate, since the major benefit from this farm, its demonstrative effect, could not be quantified. Nevertheless, it shows that the DSF would be eco- nomically viable with the assumptions made for Somali conditions, and that efficient management could transform state farms from a burden on the Govern- ment budget into profitable units that would contribute to that budget. 6.05 Important non-quantifiable benefits, which are not included in the calculations, would also be derived from the Project. One worthwhile benefit would be income redistribution through the shift in emphasis from large scale irrigated agriculture towards small farmers and towards rainfed agriculture. The Project would also be of considerable importance to the success of other production oriented agricultural projects in Somalia, as a result of its contribution to manpower development. In addition to the reasonable economic benefits at a reasonable investment cost, the Project would thus generate important social benefits. Risks 6.06 There are three kinds of factors which could affect the overall success of the Project, namely, factors which could impede the proper and timely implementation of the Project, those which could affect the viability of the institutions being developed and those that could negatively affect the system of production incentives in the country. With regard to Project implementation great care was taken to strengthen MOA's management capability through organizational arrangements, training programs and provision of tech- nical assistance to ensure timely and efficient implementation of the Project. The viability of the Extension and Farm Management Advisory Services being  - 48 - strengthened through the Project would depend on the continuous flow of exten- sion material from research which is presently weak. This represents a major potential risk to the success of the Project. For this reason funds are pro- vided for developing a national research strategy which Government would use as a basis for improving the country's research capability at the same time that the extension service is being strengthened. The research strategy to be developed would also consider ways to ensure that research results would be acceptable to farmers before their diffusion in order to maximize farmers' acceptance of improved practices. With regard to production incentives, Gov- ernment is aware of the fact that even with effective extension, increased production would only come about if there were a market which offered producers economic prices for their incremental output. IDA will continue to work with Government to ensure that a reasonable system of production incentives pre- vails in the country. These risks have to be balanced against the certainty that, without the Project, Government would not be able to develop the means to effectively help farmers improve their welfare and to help the country become more self-sufficient in major staple foods. Environmental Effects 6.07 The Project would build up the basis for the diffusion of appro- priate crop and animal husbandry practices. These improved practices would help retain soil fertility, conserve existing forest and pasture resources, and preserve irrigated areas from the negative effects of inefficient water management. Role of Women 6.08 Women in Somalia are presently responsible for a major share of food production in the country. Government is, slowly but surely, creating opportunities for active women participation in managing the country and getting the development process underway. This Project is one such oppor- tunity Government is counting on for getting educated women to help improve the welfare of those involved in agricultural production. VII. SUMMARY OF AGREEMENTS REACHED 7.01 Assurances were obtained from Government that: (a) a Technical Coordination Committee would be established and would meet at least once every six months. It would be chaired by the Director General of Agriculture. Department Directors from the Ministry of Agriculture and representatives of other agencies and institutions concerned with agriculture would be members (para. 2.25); (b) The Terms of Reference for the preparation of a national research strategy would be agreed with IDA and an agricultural  - 49 - research strategy for the country would be developed and the study report on that strategy would be submitted for review by IDA by September 30, 1980 (para. 2.48); (c) the Government would appoint the required Somali staff in time to meet the training and operational needs of the Project; (d) the qualifications and experience of staff internationally recruited for the Project would be satisfactory to IDA (para. 2.44); (e) the PMU would submit a training program by March 31, 1980 for approval by IDA (para. 2.47); (f) the results of surveys and analysis carried out by the Monitor- ing and Evaluation Section of the PMU would be sent to IDA and concerned Government Agencies (para. 2.40); (g) sample surveys would be carried out by the 2lonitoring and Evaluation Section of PMU following consultation with IDA (para. 2.42); (h) Government would appoint technical assistance staff to the Agricultural Secondary School no later than August 31, 1979 (para. 2.43); (i) Government would open a special account in the name of the Project, maintaining it as a revolving fund, initially paying in a sum of So. Sh. 3 million and increasing it to So. Sh. 5 million by the end of the first year of the Project investment period. The amount in the revolving fund would be renewed every six months (para. 3.05); (j) procurement procedures outlined in para. 3.07 would be followed; (k) separate accounts would be kept reflecting the expenditures financed by the co-financiers. Project related accounts would be audited by the Magistrate of Accounts, a Somali independent auditing agency which is acceptable to IDA. Audited accounts would be submitted to the Association by the Ministry of Agriculture within six months of the end of each fiscal year (paras. 2.49, 3.12); (1) during Project implementation, GOS would submit semi-annual and annual progress reports to financing agencies (para. 4.04);  - 50 - (m) Recruitment of the Project Technical Manager and the Financial Controller would be subject to IDA approval (para. 4.02); and (n) Government would prepare a Project Completion Report for sub- mission to IDA no later than six months after the end of the Project investment period (para. 4.04). 7.02 It would be a condition of effectiveness that: (a) Government officially made the 60 ha training farm at Afgoi part of the FMETC, the 400 ha Demonstration State Farm in Jannale part of the FMAS and reserved the two other State Farms in Jannale for use by FMAS during the Project investment period (paras. 2.04, 2.30); (b) Government had appointed the Project Director, the Project Technical Manager and the Financial Controller to the PMU; (c) Government had appointed a procurement agency to help PMU in drawing up specifications, prepare tender documents and assist in the analysis of bids (para. 2.32); (d) Government had paid So. Sh. 3 million to Project account (para. 3.05); (e) all conditions precedent to the effectiveness of other co- financiers' agreements regarding the Project had been met; (f) the legal instrument establishing the PMU had been executed (para. 4.02); (g) Government would appoint a consultant or consulting agency to supervise the implementation of the civil works component of the Project (para. 2.32). 7.03 Disbursement of funds for strengthening the Central Statistical Department would be subject to Government having appointed the necessary technical assistance staff for CSD (para. 3.11). 7.04 Subject to the above assurances and conditions, the Project would be suitable for an IDA Credit of US$10.5 million to the Government of Somalia.  A'A SOMALIA AGRICULTURAL EXTENSIONAND FARM MANAGEMENT TRAINING PROJECT ORGANIZATION OF THE MINISTRY OF AGRICULTURE Crash Programs a _ _ _ _ Minister of Agriculture Parastatals: Agricultural Development Technical Corporation (ADC) Director General _ Coordination National Tractor Hiring _ ~~~~~Committee Agency (ONAT) Regional Department of Department of Department of The Department Department Department Agricultural Production and Planning and Land and Agricultural of Plant of of Coordinators Extension Statistics Water Use Research Protection Cooperatives Administration Institute anCocutro and Tainin Production MultiplicationSrvc Service Service Service AWt April 4, 1978 WVorld Rank - 19978  SOMALIA AGRICULTURAL EXTENSION AND FARM MANAGEMENT TRAINING PROJECT PRO JECT ORG A Ni; ZAT;N Minister of Agriculture I Director General Technical Coordmation Agricultural Secondary School Project Management Unit l Monitoring and | Administration and|I Evaluation Section Financial Control | . ~~~~~~~ ~ ~~Section I Farm Management ani National Extension Farm Management Extension Training Center Service Advisory Service Demonstration State Farm World Bank-19979 1 C  - 53 - SOMALIA AGRICULTURAL EXTENSION AND FARM MANAGEMENT TRAINING PROJECT IMPLEMENTATION VOLUME Table of Contents ANNEX 1 Project Management Unit ANNEX 2 Farm Management and Extension Training Center ANNEX 3 National Extension Service ANNEX 4 Farm Management Advisory Service ANNEX 5 Cost Estimates ANNEX 6 Economic Analysis ANNEX 7 Government Cash Flow ANNEX 8 Central Statistical Department ANNEX 9 Agricultural Secondary School - Afgoi ANNEX 10 Project Financing  SOMALIA AGRICULTURAL EXTENSION AND FARM MANAGEMENT TRAINING PROJECT Implementation Schedule Pre-Project Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 January- July 1979- July 1980- July 1981- July 1982- July 1983- July 1984- June 1979 June 1980 July 1981 June 1982 June 1983 June 1984 June 1985 Preparatory Arrangements 1 !- Agreement on Financing Plan Negotiation of IDA Credit Presentation to IDA Board on Key Staff Identification and Appointment Appointment of Procurement Agency i _ Appointment of Consultant for Civil Works Appointment of Ag. Secondary School Teachers Legal Establishment of PMU Project Implementation Civil Works 41 Preparation of Tender Documents Implementation -I- Technical Assistance _ Appointment of FMETC Principal Appointment of T.A. Staff for NES Appointment of DSF Manager Appointment of T.A. Staff for FMAS Appointment of T.A. Staff for CSD i Appointment of T.A. Staff for FMETC Procuremenit of Machinery and Equipment NES Fielid Work - - - . - _ _ - - - Training at FMETC I - - 1 - , . - - , Train ing at ETEs T - - - - - i - - - ReFports to I DA i Semni-annual Report Annual Report and Audited Accounts Comnpletion Report Closing Date: June 30, 1985 I I li 1/ Project Technical Manager, Financial Controller, Project Director. World Bank -19980 L t S  IBRD 13606 48' JUN~~~~~~~~~WE 1978 / E\,,r 9 '~~PEOPLE'S DEMOCRATIC REPUBLIC OF YEMEN -12- DJIBOUTI -12