Upper Volta - Niena Dionkele Rice Development Project

Document of FILE CQ?- The World Bank F C FOR OMCIAL USE ONLY Report No. P-2768-UV REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF UPPER VOLTA FOR THE NIENA DIONKELE RICE DEVELOPMENT PROJECT April 10, 1980 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 CFA Franc (CFAF) US$1 CFAF 210 WEIGHTS AND MEASURES I metric ton 0.98 long ton (2,205 lbs.) 1 hectare (ha) 2.47 acres 1 kilometer = 0.62 mile ABBREVYIATIONS BND National Development Bank CERCI Irrigated Crops Research Center FAC French Fonds d'AiLde et de Cooperation FAU Financial and Administrative Unit MRD Ministry of Rural Development ONBI National Dams and Irrigation Department ORD Regional Development Organization PMU Project Management Unit SOFITEX Textile Fiber Company FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY UPPER VOLTA NIENA DIONKELE RICE DEVELOPMENT PROJECT CREDIT AND PROJECT SUMMARY Borrower: The Republic of Upper Volta A Amount: US$6.5 million equivalent Terms: Standard Project Description: The project is a pilot phase of a possible three phase program to convert swampland to more productive use. The main objectives of this first four-year pilot phase would be to (a) test key assumptions regarding future development of swamp areas and (b) address price structure, marketing and economic issues of the rice subsector. In addition, the project will assist Government to promote institution building in the subsector through organizational, training and-evaluation components; define a national rice policy; and create a market structure to ensure farmer confidence in rice production and train future rice industry managers. Four hundred hectares of swampland will be developed through construction of simple flood protection works. Support to the rice industry will be provided through provision of technical experts' services to the Ministry of Rural Development and, to the Kou Valley Rice Mill, and through an evaluation unit and studies to review policy and practice in the industry. Eight hundred farm families would benefit directly from introduction of swampland water control and improved extension service and access to farm inputs and credit. Indirect benefits would result from the technical assistance and training programs affecting the staff of the Ministry of Rural Development, the cooperative program, and farmers. Technical and sociological data gathered by the project would be valuable for the rural sector as a whole as well as the rice subsector. Risks arise from a potential slow adoption rate of recommended cultural practices, This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - the unknown responsiveness of people to technological innovation, changes in farming practices and sociolo- gical factors; and the unknown effectiveness of revised crop marketing arrangements. The project design incor- porates safeguards against these risks by adopting modest yield levels, creating an intensive extension service in the project area and providing staff and farmer training, linking research to practical needs, providing a Monitor- ing and Evaluation Unit for early problem identification and establishing assured rice marketing for project farmers. Estimated Cost: Project costs exclusive of taxes are detailed in the table below: Local Foreign Total