Upper Volta - Koudougou Agricultural Pilot Project

Document of The World Bank FOR OFFICIAL USE ONLY . Report No. P-3379-UV REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT IN AN AMOUNT EQUIVALENT TO US$7.0 MILLION TO THE REPUBLIC OF UPPER VOLTA FOR A KOUDOUGOU AGRICULTURAL PILOT PROJECT September 1, 1982 Western Africa Region 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 SDR 1.00 = US$1.12 = CFAF 336 US$1.00 = CFAF 300 = SDR 0.89 CFAF 1000 = US$3.33 = SDR 2.97 WEIGHT AND MEASURES 1 metric ton - 0.98 long ton (2,205 lbs) 1 hectare (ha) - 2.47 acres 1 kilometer - 0.62 mile 1 meter - 3.28 feet ABBREVIATIONS AVV: Volta Valleys Development Authority BOAD: West African Development Bank CNCA: National Agricultural Credit Bank FAER: Rural Equipment Fund HER: Water Supply Division ICRISAT: International Crops Research Institute for the Semi-Arid Tropics IRAT: Tropical Agronomic Research Institute IVRAZ: Voltaic Agronomic and Zootechnical Research Institute MDR: Ministry of Rural Development OFNACER: National Cereals Agency ORD: Regional Development Organization RDF: Rural Development Fund SAFGRAD: Semi-Arid Food Grain Research and Development SOFITEX: Voltaic Textile Fiber Company FISCAL YEARS Government: January 1 - December 31 ORD Koudougou: April 1 - March 31 Project: April 1 - March 31 .  FOR OFFICIAL USE ONLY UPPER VOLTA KOUDOUGOU AGRICULTURAL PILOT PROJECT CREDIT AND PROJECT SUtAARY Borrower: The Republic of Upper Volta. Amount: SDR 6.3 million (US$700 million). Terms: Standard Pro ject Description: The proposed project has developed out of previous efforts to design an agricultural development project for the Koudougou ORD. Previous project proposals had shown low estimated rates of return because the agricultural techniques to be recommended to the farmer were insufficiently adapted to the poor soil and rainifall conditions in the north of the ORD and because of the assumed low acceptance rate among farmers in the south resulting from social and demographic factors. The technical package has meanwhile been enlarged and improved, which should result in higher returns in the north and which makes it more relevant to the problems (particularly soil degradation) of the south. The proposed project would, therefore, test two key hypotheses, namely: (a) there exists an economically viable package of agricultural techniques for the northern half of the ORD; and (b) the social and demographic factors endangering the accept- ance of the package in the southern half of the ORD can be overcome. The project would consist in strengthening and reorganizing the extension service according to the training and visit system and provision of inputs and equipment. The extension recommendations would be derived from research and neighboring IDA projects, but modifications would be made and new elements added, to adopt them to the particular soil and climatic conditions of the project area. New recommendations would be the use of local rock phosphate with or without urea, the introduction of drought-resistant crop varieties, crop associa- tion methods and fallowing practices, the integration of animal husbandry and crop cultivation as well as the construction of contour bunds by means of animal traction. The extension recommendations would need further refinement to adapt them as well as possible to conditions in the project area. The project would therefore include an adaptive research component, which would conduct the necessary trials to do so. Because the 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 pro-ect st-resses the need for integration of animal husbandry and crop c...ltivation, it would also contain an animal health component, which would cover the entire ORD to account for nomadic movel.i,,ts of most of its livestock. A strong nmonitoring and evaluation unit would determine to what extent the tech- niques would be successful by conducting a base line survey at the start of the project and follow-up of key technical para- meters (particularly fertilizer response rates). Special emphasis would be placed on the study of farm budgets for various farming systems. Benefits: Because of the project's pilot nature, it is not justified to evaluate it on the basis of its particular costs and benefits and therefore no rate of return has been calculated. However, if the hypotheses to be tested prove correct, as anticipated, it should be possible to have ultimately a full-scale agricul- tural development project in the ORD with a rate of return similar to that of other projects in the country, i.e. in the range of 15 to 20 percent. However, the potential impcrtance of the project would exceed the benefits that accrue tc, the Koudougou ORD. If the project is successful' i'n the north, it would ultimately be introduced to other parts of the central plateau as well. A slow-down in soil degradation on the central plateau in general would produce substantial benefits. Areas outside the central plateau would benefit as well., as any reduction in soil degradation there would lessen the pressure to emigrate and reduce the adverse effects t-h2reof on the host regions. Risks: There is an inherent risk that the hypotheses to be tested will prove incorrect, that no economically iable package will emerge for the north and/or that the acceptance rate in. the south would stay below the minimum required to justify the cost of the extension effort and inputs. It was exactly because the risk was considered too great for a full-scale project that it was decided to minimize risks by limiting the project to two small pilot regions and by including an adaptive research component for refining the extension messages to increase their attractiveness to and chances of adoption by farmers. It is important that the project not fail for maragerial or admini- strative reasons. The project would, therefore, contain a relatively substantial technical assistance component.  - iii - Estimated Costs: (net of taxes and duties from which the proJect would be exempted) (incltuding US$725,000 financed through a Project Preparation Facility) Local Forel-n T3tal