Document of The World Bank FOR OFFICIAL USE ONLY Report r o. 4818-TU STAFF APPRAISAL REPORT TURKEY AGRICULTURAL EXTENSION AND APPLIED RESEARCH PROJECT March 13, 1984 Regional Projects Department Europe, MLddle East and North Africa R gional Office This docnment has a restricted distribution and may be used by recipients only in the performance of I their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS US$1 Turkish lira (TL) 270 a/ TL 1 US$0.004 TL 1,000,000 US$3,704 WEIGHTS AND MEASURES 1 kilogram (kg) 2.20 pounds 1 metric ton 1,000 kilograms I metric ton 0.98 long ton 1 meter (m) 1.09 yards 1 kilometer (km) 0.62 mile 1 hectare (he) = 10,000 m2 2.47 acres 1 decare = 0.1 ha 0.25 acre I sauare kilometer (km2) 0.386 square mile 1 liter (1) 0.264 gallon ABBREVIATIONS AE - Agricultural Engineer for Extension CAE - County Chief Agricultural Engineer of TZ EIC - Extension Information Center FRT - Film, Radio and Television Center of Ministry of Education GAHRI - Grassland and Animal Husbandry Research Inetitute of GDAA GDAA - General Directorate of Agricultural Affairs of MAFRA CDPPQ - General Directcrate of Plant Protection and Quarantine of MAFRA GDVA - General Directorate of Veterinary Affairs of MAFRA ICB - International Competitive Bidding LCB - Local Competitive Bidding LDP - General Directorate of Livestock Development Projects of MAFRA LIB - Limited International bidding MAFRA - Ministry of Agricu'cure, Forestry and Rural Affairs M&E - Monitorirg and tvaluation MPWR - Ministry of Public Works and Resettlement ORKOY - Department of Forest Villages of MAFRA PAU - Project Administration Unit in GDAA's Department of Externally-Financed Projects SEE - State Economic Enterprise SEKER - Turkish Sugar Factories, an SEE SIS - State Institute of Statistics SMS - Subject Matter Specialist SPO - State Planning Organization TCZB - Agricultural Bank of Turkey TEKEL - Tea & Tobacco Monopoly, a Parastatal TMO - Soil Products Office, an SEE TOPRAKSU - Land and Water Development Agency of MAFRA TRT - Turkish Radio and Television Service TSEK - Milk Industries Organization, an SEE TURDOK - Turkish National Documentation Center TYT - Wool and Mohair Corporation, an SEE TZ - Teknik Ziraat, the Field Extension Service of GDAA TZDK - Agricultural Supply Organization, an SEE VGI' - Village Group Technician YEM - Turkish Feed Industries, an SEE FISCAL YEAR Government of Turkey - January 1 to December 31 SEEs ,nd TCZB - January 1 to December 31 a/ Exchange rate for December 1983. Exchange rate is adjusted daily on a crawling-peg system. FOR OFFICIAL USE ONLY TURKEY AGRICULTURAL EXTENSION AND APPLIED RESEARCH PROJECT Tablc of Contents Page No. I. BACKGROUND ................................., , 1 A. Project Background , . f 1 B. Agriculture in Turkey .................... , 1........... . I C. Agricultural Policies, Performance and Prospects , 3 D. Bank's Contribution and Lending Strategy in the Agricultural Sector .............* ............. 4 II. AGRICULTURAL EXTENSION AND RESEARCH IN TURKEY ..... ..... 6 A. Agricultural Extension ...... .. .............. .... ... 6 - GDAA's Extension Service (Teknik Ziraat) 6 - Other Extension Services .............................. 10 B. Agricultural Research ....... .................... 11 - Institutional Aspects .... ............... ..... 11 - Staffing and Links with Outside Research Institutions 13 - Current Research Activities of GDAA .M..............." 14 C. Bank's Experience with Extension and Research in Turkey .. 15 III. THE PROJECT ................... , , , .. . .... ...... .17 A. Objectives and Rationale .. ......... , , 17 B. Project Scope ..18 -Project Design and Sectoral Context , , 18 - Project Area ...................... 20 C. Project Concepts and Overall Description ... . . . . . .. 21 D. Detailed Features ...................................,.22 - Technology Transfer ....... ......., 22 -Research and Development ...... .............. 28 -Monitoring and Evaluation .... ...., 30 - Training ...... 32 -Technical Assistance and Studies.. .. 33 E. Project Cost . ................. ...... 34 F. Financing ................ ...... 36 G. Procurement *..*...........***..... 37 H. Disbursements .............. ............. ........... 39 I. Accounts and Audit ........................ .. ...... 40 This report is based on the findings of the preappraisal/appraisal mission of May/June 1983, which consisted of Ms. S. Tillier, Messrs. R. Burcroff II, S. Freiberg and D. Kaufmann (Bank), and Messrs. R. Ayre-Sniith, Y. Doganca, D. Shoesmith and R. Sood (Consultants). The mission was joined in the field by Mr. B. Aklilu (IFAD). 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. Table of Contents (cont'd) Page No. IV. PROJECT IMPLEMENTATION ......................... 41 A. Organization and Management , . , ., 41 B. Civil Works ................,.,., ., 42 C. Implementation Schedule . ........... *.......... ******** . 43 D. Project Supervision and Progress Reporting 45 V. BENEFITS, JUSTIFICATION AND RISKS. ......... .... 46 A. Benefits and Justification. 46 B. Project Risks . ......... ,,,47 VI. AGREEMENTS AND RECOMMENDATIONS ..................... 48 TEXT TABLES 3.1 Project Cost Summary 3.2 Project Financing Plan 3.3 Summary of Procurement Arrangements ANNEXES 1. Cost Estimates 2. Proposed Allocation of Bank and IFAD Loans 3. Schedule of Disbursements 4. Annual Work Program 5. Standard Cadre of Extension Service in the Project Area 6. Extension Staff: Total Requirements, Existing Staff Fnd Incremental Requirements 7. Extension Buildings: Total Requirements, Existing and Incremental Requirements 8. Extension Vehicles: Total Requirements, Existing and Incremental Requirements (Indicative) 9. Staffing Schedule for Consultants 10. Outline of Terms of Reference for the Working Groups on Research and Extension 11. Selected Documents and Data Available in the Project File CHARTS World Bank 25526: Organization Chart of GDAA World Bank 25793: Project Organization Chart World Bank 25527: Project Implementation Schedule MAP IBRD 17595: Project Area TURKEY AGRICULTURAL EXTENSION AND APPLIED RESEARCH PROJECT l. BACKGROUND A. Project Background 1.01 The Government of Turkey seeks to improve the efficiency of its agricultural extension services throughout the country. Tlhe proposed project will provide support to the reorganization and strengthening of the extensior service of ttie General Directorate of Agricultural Affairs (GDAA) of the Ministry of Agriculture, Forestry and Rural Affairs (MAFRA) in 16 provinces and will strengthen six selected agricultural re,earch institutes serving the project area. This project ia intended to be the first phase of a multiphased effort which will ultimately extend similar concepts to all 67 provinces of the country. 1.02 The proposed project originated with Government's request to the June 1980 Agricultural Sector Identification Mission for Bank assistance to finance a nationwide extension irnprovement project, and the Bank's suggcstion that a phased approach be followed instead on the basis of agroecoLogical zones. The Government accepted this recommendation in 1982. Following the initiation of formal preparation by GDAA, an FAO/CP mission visited Turkey in August/September 1982. Subsequently, the International Fund for Agricultural Development (IFAD) expressed interest in cofinancing the project, and a number of Bank missions discussed with GDAA the need for additional preparation. A formal Bank preparation mission went to Turkey in March/April 1983, followed in May/June 1983 by a preappraisal mission during which a decision was made that preparation had advanced sufficiently to proceed with appraisal. B. Agriculture in Turkey 1.03 While the importance of the agricultural sector in the Turkish economy is declining, it still accounts for about 20% of the gross domestic product (GDP), close to half of all export earnings, and more than 60% of total civilian employment. 1Besides meeting domestic food needa, it also supplies much of the raw materials for industry. The growth rates of agricultural GDP and exports are projected to remain below those for the rest of the economy. Nevertheless, agricultural growth has a significant role to play in providing foreign exchange earnings and employment. 1.04 Turkey occ-tpies a total area of about 78 million ha and consists mostly of an eastwards rising plateau (AnatolUa) of 800-2,000 meters of elevation, bordered by mountains in the north and in the south, with fertile plains along the coast and in valleys. Alluvial soils have the greatest imDortance for crop production; large areas of central Turkey are, however, aominated by fine-textured medium to shallow calcareous soils of the reddish brown and brown soil groups. Turkey's climate is mainly determined by its physical features and varies widely across the country. The northern coastal zone bordering the Black Sea receives the highest annual rainfall with fairly even distribution throughout the year. The southern and western coastal regions have a Mediterranean type climate with hot, dry summers and mild winters during which occurs most of the annual rainfall. The interior regions - 2 - (which comprise most of the country) are subjE-t to continental influences with a lower rainfall occurring mostly in spring and winter and more extreme temperatures than the coastal areas; cold, snowy winters in particular greatly limit the growing season and the range of crops grown. The mountains create throughout the country many different local nicroclimates which vary with the run of the valleys and other topographic features. 1.05 Intensive crop cultivation is prevalent in the coastal regions, which have the most favorable climatic and soil conditions and where irrigation is &enerally more developed than in the rest of the country. The production of fruit and vegetables is particularly important in these regions; although cereals occupy the largest share of the area under annual field crops, indus- trial crops such as cotton and sunflowe- are wicaspread. In all the rest of the country, mixed farming (crop and livestock) predominates; a large share of the agricultural land is occupied by low productivity pastures and rangeland, and most of the arable land is under a cereal-fallow rotation with limited cultivation of fruit and vegetables and of industrial crops such as sugarbeet. 1.06 For the whole of Turkey, some 17 million ha are sown annually with field crops (80% of which is cereals), while about 8 million ha are left under fallow and a further 3.5 million ha consist of orchards, vineyards and vegetable gardens. Until the late 1960s, agricultural development in Turkey was characterized by a steady expansion of the total crop area, most of which was at the expense of grazing land. Between 1946 and 1975, the total crop area increased at an annual rate of 2.2%. The arable land frontier was effectively closed in the 1970s and during the last decade, the total crop area in Turkey expanded by only 0.3% p.a.; however, as a result of some reduction in fallow land the area effectively cropped each year increased by close to 0.8% p.a. Although changes in cropping patterns have been modest, the relative importance of fruit and vegetables has increased somewhat during the past decade while, among field crops, the share of cereals has declined slightly in favor of pulses and oilseeds. 1.07 During the 1970s intensification of production was achieved through yield increases for a number of major crops, largely as a result of a considerable increase in the consumption of modern agricultural inputs (fertilizer use tripled during the 1970s). Substantial increases in cereals vields took place as a result of the successful wheat improvement programs nplemented by the Government (para 2.02). Average wheat yields went up from l.r tons per hectare in the late 1960s to 1.8 tons per hectare in the late 1970s. As discussed in the agricultural sector study recently carried out by the Bank 1/ there is scope for further intensification of agricultural production in Turkey which, besides increases in irrigated area, could be derived in particular from (i) further progression of yields, both in the rainfed and irrigated areas, through diffusion of improved varieties and wider adoption of the packages of complementary practices required to realize their yield potential; (ii) further reduction in fallow land, a substantial part of which is located in areas where climatic conditions would allow cultivation of a forage or grain legume crop in alternate years in place of fallow; and (ii;.) increase in double cropping in presrtntly irrigated areas, particularly in the coastal regions. 1/ Turkey - Agricultural Development Alternatives for Growth with Exports, Report No. 4204-TU, June 30, 1983 (Annex 7). 1.08 Turkey has a large livestock resource, with over 15 million head of cattle, 65 million sheep and goats and 3 million other large animals, many of which are used for draft purposes. Commercial poultry production is expanding; apiculture is widespread throughout the country and represents a v:luable source of income for landless rural people, as does sericulture in the Marmara region. The large population of grazing animals is partially supported by close to 22 million ha of natural grasslands, about 3% of which is productive neadowland, the remainder being rangelands. Due to the restricted growing season and the degraded nature of the pastures and ranges over much of Turkey, many animals suffer from a severe deficit of feed for 4-6 months of the year, which is only partially offset by the use of crop residues and conserved forages. Livestock productivity is thus poor, the situation often being exacerbated by the presence of animal disease and parasitism. During the last decade, livestock productivity has not improved significantly and most of the increase in production has been derived from increases in liv1estock population, which has exacerbated the problei of overgrazing. A priority for achieving broad-based productivity increases in the livestock subsector is to strengthen the feed base for use by ruminants. Considering the long-term nature of range improvement, and the sociopolitical constraints which it faces, emphasis will have to be placed in the medium-term on maximizing the use of crop residues and industrial by-products, expanding the cultivation of forage crops and improving their harvesting and conservation techniques. In parallel, standards of disease prevention and control and of herd management should be improved. C. AgTicultural Policies, Performance and Prospects 1.09 Turkish development strategy during the 1960s and 1970s was based upon industrial growth, with agriculture playing essentially a supportive role. Agricultural policies were geared to ensuring an adequate and cheap domestic supply of foodstuffs and indtustrial raw materials chrough budgetary and financial subsidies to guarantee high producer prices, low cost inputs and cheap credit in order to stimulate agricultural production and investment. The domestic market was highly protected to encourage self-sufficiency in foods, and agricultural commodity export markets were regarded as a vent for any surplus production, with public agencies extensively involved in the limited exporting that occurred. These policies encouraged the development of near self-sufficiency in foodstuffs, and a respectable growth and investment performance in the agricultural sector until about 1975. From 1972-1975, agricultural GDP grew at an average rate of 4.7% p.a. and sectoral fixed investment at an average rate of 17.9% p.a. By the mid-1970s, the burden on the economy of the subsidies to the agricultural sector had become all too evident and these incentives could not be sustained, although the basic strategy did not change. In addition, the annual rate of increase in cultivated area slowed down as a result of the closing of the arable land frontier, and the shift to intensive cultivation lagged. During the 1976-79 period, agricultural GDP growth fell to 1.4% p.a., and sectoral invest.,ent growth declined to 1.7% p.a. During the entire decade, sectoral exports remained a small fraction of total production (less than 1% of agricultural CDP in 1979) and way bfelow potential due to the overvalued exchange rate and other disincentives to export. - 4 - 1.10 With the imposition of crisis management measures by the Government in 1980 and 1981, much of the incentive apparatus put in place for farmers in the 1970s was abruptly dismantled. The more outward-oriented development strategy adopted by the Government led to a sharp reduction in input subsidies and production price supports and the overall restraint o.i monetary policy forced a curtailment of agricultural credit, while the introduction of a competitive exchange rate policy and other incentives, together with a slack domestic demand, encouraged exports. Thic. shift in strategy initially resulted in considerable disarray in the agricultural sector; the growth of agricultural GDIP in real terms fell to 1.7% in 1980 and further to less than 0.5% in 1981. In 1982, however, as a result of adjustments to the new policy environment, ard aided by favorable weather and a good harvest, real growth in agricultural GDP recovered to about 6.6%. In contrast with sector production performance, agricultural exports during 1980 and 1981 increased by an annual average rate of 29% over the two-year period. In 1982, however, export performance was somewhat mixed. The total value of agricultural exports declined by 4% below the 1981 level; despite some increase in volume for most crops, the total value of crop exports declined by close to 12% as a result of depressed prices, while the value of livestock exports continued to increase in 1982 by more than 50% over the 1981 level. The livestock subsector, which accounts for about one-third of agricultural GDP, has thus contributed 18% of total agricultural exports in 1982, being equal in importance to the major traditional export products of tobacco, cotton and hazelnuts. In 1983, agricultural GDP fell by 0.8%, largely due to the effects of adverse weather conditions, while the value of agricultural exports during the first nine months of the year declined by some 15% below the 1982 level, due primarily to further declines in export prices of main commodities. 1.11 The performance possibilities for Turkey's agricultural sector, over the medium term, were examined in the recent agricultural sector study by the Bank which indicates that during the remainder of the 1980s the agricultural GDP could achieve a sustainable growth rate of 2.8-3% p.a., associated with agricultural exports growth of 4-6% p.a., provided certain key policies are pursued. Besides a continuation of the current movement towards free-trade price and trade policies, this will require strong institutional measures to foster a continuous growth in agricultural productivity, including: (i) improvements in technology generation and its dissemination to farmers through strengthening of research and extension programs; (ii) an increase in the rate of investment in irrigation together with concentration of resources on a few selected priority projects with high economic returns and in particular on completion of ongoing projects with large sunk costs and of on-farm works in areas already served by major irrigation infrastructure; (iii) the provision of additional credit to encourage the uptake of improved technology at the farm level; and (iv) improvements in marketing and inputs distribution systems. D. Bank's Contribution and Lending Strategy in the Agricultural Sector 1.12 As of January 1984, Bank/IDA have made 15 loans and 7 credits totalling $846 million for 19 agricultural projects in Turkey, 8 of which have been completed so far. Agricultural projects financed by the Bank include several major irrigation schemes and projects for credit and the development of farmer support services in horticulture, livestock, storage and processing and rural development. Related investment support in other sectors includes two fertilizer indtustry rehabilitation projects, the rehabilitation of the Turkish Sugar Industries through a DFC loan to the State Investment Bank, and support Eor the cotton textiles industry to increase the domestic value-added content of textile exports. The Bank has also financed important sectoral planning studies as project components, including master plans for the fruit and vegetable and the livestock products subsectors, and a fertilizer pricing and marketing study. 1.13 The principal objectives of the Bank program in agriculture are to help increase output, productivity and exports, to contribute to reduction in poverty thtough increased rural employment and to promote the necessary policy and institutional reforms in the sector. To support the country's medium-term macroeconomic adjustment program, the elements of Bank strategy in agriculture inciude: (a) rationalization of the public sector investment program, particularly in ir:igation, with greater focus on quick gestating investment; (b) expanded credit supply, parti.ularly for medium- and small-scale farmers, together with increased efficiency of credit institu- tions and improved financial sector policies to encourage greater private investment in the sector; (c) promotion of the greater use of market forces through reductions in subsidies and price supports, interest rate reform and increased involvement of the private sector in marketing of agricultural inputs and products; (d) liberalization of the foreign trade regime, including further deregulation of agricultural exports and seed imports and inclusion of selected types of agricultural machinery and food products on the lists of permitted imports; and (e) support to institutional reform, particularly the developmelnt of improved research and extension services, the establishment of a sectoral planning capability, the refornm of government enter- prises involved in agriculturaL marketing and input supply, and improvements in the implementation capacity of irrigation agencies. 1.14 These objectives are being pursued through sector dialogue, the structural adjustment lending program, and the lending program in agricul- ture. At the project level, the core of the Bank lending strategy under consideration for agriculture would be implemented through a series of projects for completion of large under-financed irrigation schemes, develop- ment of the agricultural extension services along multipurpose lines to address Turkey's regionally diverse mixed-farming conditions, and repeater lines of agricultural credit to an appropriate financial intermediary to support farmers benefiting under these projects. Through a proposed IAEE Irrigation Project, public sector investment will be channelled more efficiently to quick-yielding projects, and greater private contractor participation in on-farm development works will be promoted, together with a reduction in subsidies for water, drainage and land-levelling work.i. The recent Agricultural Credit II Project is expected to promote agricultural output and the adoption of new technology through the expansion of credit availability, stimulate a reform of the principal financial institution in the agricultural sector, foster the rationalization of interest rate policy in agriculture, and initiate an investigation of ways to broaden agricultural credit and resource mobilization in the rural areas. The proposed Agricul- tural Extension and Applied Research Project coristitutes a majot component of the Bank's strategy in the agricultural sector, and will represent a first step in improving the delivery and quality of a6.icuLtural extension services nationwide, thus completing the first tranche of the core investments needed to stimulate intensified production. II. AGRICULTURAL EXTENSION AND RESEARCH IN TURKEY A. Agricultural Extension GDAA's Agricultural Extension Service (2eknik Ziraat) 2.01 Among the various agencies providing extension services to farmers, the General Directorate of Agricultural Affairs (GDAA) of MAFRA has by far the largest number of field staff, with responsibilities covering virtually every aspect of crop and livestock agriculture. Its field organization, known as Teknik Ziraat (TZ), is represented in all 67 administrative provinces and 631 counties of the country, with a total staff of 947 agricultural engineers, 5,377 agricultural technicians and 858 home economists as of mid-1983. Many of these are, however, extensively involved in administrative and other duties besides extension (paras 2.09-2.1G). 2.02 In the late 1960s and early 1970s, the TZ extension service has substantially contributed to increases in agricultural productivity and income, mainly by participating in the distribution of improved seeds and the promotion of fertilizer use and to a lesser extent improved agronomic practices. In particular, spectacular increases in cereals yields occurred during this period as a result of the introduction of high-yielding wheat varieties suited to the coastal areas and, thereafter, of improved winter varieties for the central Anatolian plateau togethler with complementary agronomic practices for moisture conservation and weed control. These improved varieties and cultivation methods were developed in the context of the National Wheat Program launched by Government in 1969 with support from CIMMYT, under which national priority was given to increasing wheat produc- tion, special research groups were established in regional research institutes in order to carry out variety development and adaptive wheat trials, and teams of extension staff from GDAA were posted at the research inatitutes. These "wheat subject matter specialists" of the extension service were responsible for iiaising with the researchers, preparing extension materials such as pamphlets, slides or cassettes, and training the TZ staff and farmers in the provinces on the new varieties and cultivation practices for wheat. 2.03 Since this extension campaign for wheat production in the early 1970s, there has been a slackening off in extension drive, and both the effectiveness and credibility of the TZ extension service have been -7- deteriorating. The absence of further technological breakthroughs comparable in importance and visibility to the introduction of high-yielding varieties as well as the lack of clear national priorities both for research and extension have largely contributed to this situation. At the same time, TZ hias been slow in adapting to changing agricultural circumstances in Turkey. The use of improved seeds and chemical inputs is now widespread and a degree of technical skills and sophistication has been achieved in Turkish agriculture, while a ntumber of production incentives are now progressively decreased as a result of the new economic policy of the Government. As a result, the role of the extension service has to shift from the mere promotion of modern inputs towards more sophisticated technical advice taking into account particular locations as well as the economic environment of the farmers (e.g. advice on optimal quantities and types of fertilizer, cultivation methods relevant in specific locations, machinery adapted to farm size, practical way of feeding animals within the financial constraints of the farmers, etc.). Very little extension work is presently done along such lines by TZ. 2.04 Weak links with agricultural research institutions contribute to limit the efficiency of the TZ extension service. GDAA's agricultural research institutes have only tenuous formal links with TZ, although since 1981 both belong to the same General Directorate of MAFRA. These linkages are limited to occasional temporary cooperation on specific projects, whereby the TZ staff may be involved in assisting researchers in the implementation of field trials on the farmers' land, and to occasional participation of researchers in training sessions for the extension staff. Such activities are neither systematic nor regularly programmed, and communication between research workers and extension agents remains largely dependent on individual initiative at the field level and is in most cases insufficient. Links between TZ and research institutes or stations of agencies other than GDAA are even weaker. This situation has somewhat limited the relevance and usefulness of some of the investigations undertaken by the research institutions (para 2.26), while on the other hand the extension workers are often unaware of existing research results which could benefit the farmers. 2.05 Other features relating to TZ's own modes of operations and/or resources also affect its effectiveness as an extension service. TFirstly, the only consistently programmed and monitored extension activities of the TZ field staff consist of local extension projects which are usually commodity- specific and each of which concerns only -ne particular aspect of the farmers' operations. These projects form the basis of the annual budget requests submitted by the TZ county offices, and are often carried over ftos year to year. Their targets are most of the time set in terms of area (e.g. 1,000 decares to be sown under a new variety of maize, 30,000 decares of cotton to be treated against a particular pest) or quantities of inputs to be distri- buted (e.g. 20 improved bulls to be distributed). By contrast, the more general aspects of extension, including advice on farm man-agement and answers to particular problems faced by the farmers outside of these projects, are not systematically budgeted nor monitored. As extension agents deal mostly with the individual farmers who are willing to participate in the programmed projects, there is no operational procedure for incorporating general feedback from the farmers to the extension service and assessing the relevance of the projects to the specific needs of various groups of farmers. -8- 2.06 These problems resulting from the programming and monitoring procedures of TZ 's operat4ons are often compounded by the inadequacy of the technical and specialist expertise available to support the extension wort' of the county staff. The programnmed extension projects are implemented by TZ's county staff, which consist mostly of agricultural technicians with a generalist background, working under the supervision of the county agricul- tural officer (normally a graduate agricultural engineer). At the provincial level, there is a teatn of agricultural engineers organized in specialist sections (field crops, horticulture, mechanization, etc.), with responsibility for technical support to the staff of the various counties within the province. In reality, the distribution of these specialist agricultural engineers between provinces is rather unbalanced and until recently their assignment to one particular specialist sectiun was made with virtually no regard for thei.- academic specialization or technical background. Although CDAA implements eachi year a substantial in-service training program, it is not bused on a systematic assessment of training needs for TZ's specinlists, and staff often attend training on a specific subject which is not related to their position cr the priority needs of their area of operation. As a result, the actual role of the provincial specialists tends to be limited to the control of the physical implementation of the approved projects by the county technicians, with little further support. 2.07 The field implementation of the programmed extension projects often involves an important bias in the location of the recipient farmers. Typically, these tend to belong to the largest and most accessible villages, for instance in irrigated plains, with outlying or lesser developed villages in surrounding hills being left out. Several projects are often carried out in one sin-,le village, with sonmetimes the same participating farmers, while other villages do not benefit from any specific project and are rarely visited by the TZ staff. This results at least in good part from the fact that in most cases TZ's operations are carried out entirely from its county offices with limited availability of transportation. Although each county is in theory divided for extension purposes into a number of village groups, with in each group a "focal" village to be staffed with an agricultural technician, in reality only a very small number of TZ's village groups do have a resident technician. The shortage of technicians, together with the lack of housing in many villages and the insufficient number of vehicles available, has up to now prevented TZ from posting its technicians in the villages as intended. 2.08 TZ's extension operations are done quasi-exclusively through personal contacts with individual farmers, sometimes supplemented by group discussions or farmers' training sessions. "1ery little use is made of audiovisual materials and mass media. While most of TZ's provincial and county offices are equipped with projectors, there is a dearth of slides or movies, and the few that are available are often of foreign origin and of limited relevance to local conditions. Some TZ provincial offices publish newsletters or ot'ner written materials for use by extension staff or farmers, but such publications are sporadic and of poor design with plain text presentation. The journal- istic, editorial and design skills which would be necessary to produce printed materials, such as posters, adapted to the level of education of the farmers, are not available in the TZ service. While the Turkish Radio and Television Service (TRT) produces regular agricultural radio programs, and occasionally some television programs, there is no systematic coordination with TZ on these matters and the resources offered by radio and television for agricultural extension remain underutilized. 2.09 Apart from extension, the TZ staff is responsible for extensive administrative, regulatory and record-keeping duties. These tasks are very time-consuming and associated with a heavy paperwork load, especially in the prevailing context of strict centralization and cumbersome bureaucratic procedures. They include the preparation of agricultural stati-tics and of estimates of fertilizer and seeds requirements, the administration of a number of laws and arbi:iation o farmers' disputes, the certification of farmers' land area and sometimes the preparation of loan applications for individuals requesting credit from the Agricultural Bank (TCZB), the issue of requisition forms enabling the farmers to purchase fertilizer from the public agency in charge (TZDK), etc. Most of these tasks have a useful purpose and have to be performed by an organization, such as TZ, which has an extensive field base. Some of them also represent an opportunity for providing technical advice to the farmers or for coordinating with other public agencies involved in credit and input supply. However, TZ's actual role is often limited to paper stamping or to filling forms with data of questionable accuracy and hence limited use, and since all TZ staff are involved to some degree in administrative tasks, they occupy a large portion of the time of skilled agricultural engineers and technicians, even though a lot of them could be carried out by less qualified personnel. As administrative or regulatory duties are easier to perform and more immediatel- visible than actual extension work and, on the other hand, the latter is poorly planned and does not provide adequate guidance and technical support to the field extension agents, the TZ staff tend to hedge behind their administrative and regulatory functions and have little incentive to suppress unnecessary or redundant tasks and to streamline the procedures to reduce the bureaucratic workload. 2.10 Although the supply of agricultural inputs through public channels is mostly vested in a separate organization (TZDK), TZ often handles itself the distribution of seeds, seedlings or breeding animals from the producing organization (state farm, research institute or production station) to the farmers, which also generate paperwork and delays since each institution has to seek authorization from its own headquarters. In the implementation of its extension projects, TZ often distributes the corresponding inputs to partici- pating farmers and/or provides agricultural equipment to perform the work. In some cases, TZ operates itself production stations for seeds, seedlings or animals, which are then distributed to Zarmers at no or reduced charge. All these production/distribution functions, even though they do represent a service to the farming community, distract the TZ staff from actual extension work. They tend to be favored by some of the most dynamic elements of TZ, who are eager to serve the farmers but lack adequate support to carry out extension and are uncertain, under present circumstances, as to whether they are in a position to provide useful technical advice to the farmers. 2.11 During recent years, officials from Government and the Ministry of Agriculture have become increasingly aware of the benefits which could be derived from providing a more efficient extension service to the farmers. A - 10 - number of steps have already been initiated in order to improve the efficiency of the TZ extension ser-ice by tackling some of the above problems. A detailed survey of TZ staff and transportation resources was carried out by MAFRA in 1981, following which a staffing plan was drawn up for each province, based on the intended adoption nationwide of a training and visit approach to extension similar to the system previously adopted in some Bank-assisted projects (para 2.27). At the same time, a decision was made to establish a pre-service training if six months to one year for all staff newly recruited by GDAA and to take into account the particular field of specialization of the graduaLe agricultural engineers in organizing this practical training and in their subsequent assignment in the provinces, so as to allow them to operate as true subject-matter specialists within TZ. 2.12 In the context of the decision to strengthen and reorganize the TZ extension service nationwide, GDAA has been authorized to recruit a number of additional engineers and technicians since mid-1982. As of mid-1983, there were some 260 agricultural engineers and 410 agricultural technicians in pre-service training in GDAA, and a further 130 positions for engineers and 250 for technicians were being opened by competitive examination. In 1982-83, a pilot program was started in six selected provinces, where existing agricultural technicians have been redeployed in the villages and provided with motorcycles and housing. In parallel with this, starting in 1981 GDAA has set up two crash programs (second crop and fallow reduction programs) which aim at promoting the adoption of key technological innovations by integrating extension, applied research and the provision of credit. Under these programs, additional extension staff and vehicles have been provided to selected provinces, the TZ extension service has been revitalized by setting clear priorities and targets in these two areas identified as national priorities for increasing agricultural productivity and attempts have been made to foster closer linkages between extension and research through the establishment of joint field trials. Other Extension Services 2.13 Besides GDAA. other public agencies are also involved in extension activities, usually in specific subjects and/or in particular locations. Among these, the General Directorate of Plant Protection and Quarantine (GDPPQ) and the General Directorate of Veterinary Affairs (GDVA), both in MAFRA, have the largest number of staff and provide a comprehensive coverage of the country down to the provincial or county level. Both GDPPQ and GDVA provide a technical service to the farmers (plant protection or animal vaccination campaigns), together with some extension advice on related matters. GDPPQ is fairly well orF,anlzed, with much stronger and more systematic links between its own research and extension staff than GDAA, largely as a result of its regionally-based organization whi-h is characterized by direct responsibility of each of the seven .egional plant protection institutes for technical training and support to the plant pr-tection field staff of a given region. The collaboration between GDPPQ's field staff and TZ is generally quite good, and in cases where GDPPQ has no direct representation at the county level the TZ staff is in charge of doing plant protection work on its behalf and with its technical support. By contrast, collaboration between TZ and GDVA at the field level is virtually - 1l - non-existent. It is usually considered that extension on animal production, feeding and management is the responsibility of TZ, while GDVA deals with animal health and breeding. This dichotomy and the lack of collaboration between veterinarians of GDVA and zootechnicians of GDAA hamper the provision of an efficient extension service for animal husbandry, whereby health care and breed improvement should be tackled on a village basis with simultaneous complementary actions on animal feeding, forage production and general husbandry. 2.14 The General Directorate of Livestock Development Projects (LDP), which was created within MAFRA for the implementation of the Bank-assisted livestock development projects, also has responsibility for providing technical advice on animal husbandry. However, its services have been up to now limited to farmers who have applied for credit to purchase a nucleus of improved animals under these projects, which concerns only a very small fraction of livestock farmers in Turkey. The General Directorate of Soil and Water Conservation (TOPRAKSU), which until December 1983 used to be in the Ministry of Village Affairs now merged into MAFRA, supports several extension programs in specific areas where it has constructed irrigation or soil conservation works. These programs are usually fairly efficient. Selected farmers or farmers' sons are trained as foremen in order to advise the other villagers on irrigation practices and related aspects of crop cultivation. There is usually a high ratio of foremen in relation to the number of farm families (e.g. 1:80) immediately after completion of the irrigation works in a given village; after a few years they are moved to another section of the irrigation project. 2.15 Some important crops, such as tea, tobacco and sugar beet, benefit from specialized extension services (respectively the tea and tobacco monopolies and SEKER, the Sugar Factories Corporation). The Department of Forest Villages (ORKOY) of MAFRA, which was established to provide assistance to the often impoverished and remote villages situated on land classified as forest, implements a number of forest village projects involving the provision of subsidized infrastructure and on-farm investment credit, sometimes accompanied by technical assistance with a variable degree of coordination with TZ. B. Agricultural Research Institutional Aspects 2.16 Agricultural research in Turkey is characterized by fragmentation of responsibilities among a bewildering array of public agencies, which creates important institutional barriers in ensuring an efficient utilization of the resources available for research.l/ Until recently, while responsibility for most aspects of plant research was vested in the Ministry of Agriculture and Forestry, responsibility for research on all aspects of soils fertility and management and irrigation lay within a separate Ministry of Village Affairs with the General Directorate of Soil and Water Conservation (TOPRAKSU) operating 10 research stations for that purpose. Since December 1983, both 1| During recent years, total agricultural research expenditures in Turkey have represented 0.3-0.6% of agricultural GDP. - 12 - Ministries have been merged into MAFRA. Aside from TOPRAKSU, agricultural research within MAFRA is apportioned between different General Directorates along either commodity or subject matter lines. The research department of GDAA carries out research for all annual and perennial crops except sugarbeet, as well as for pastures, meadows and animal husbandry in a total of 33 active research institutes hnd stations. GDPPQ operates nine plant protection research institutes with responsibility for research on diseases, pests and weed control for all crops except sugarbeet. The General Directorate of Veterinary Affairs (GDVA) does some research primarily on animal diseases and their control. Research on specialized crops such as sugarbeet, tobacco and tea is carried out by the corresponding agencies (SEKER, TEKEL) in other ministries. In addition, some limited agricultural research on various subjects is carried out by the four agricultural faculties at Ankara University, Ege University, Cukurova University and Ataturk University. 2.17 The difficulties in research planning and coordination which arise from this fragmentation among general directorates and ministries are further compounded by inadequate policy guidance and support at the national planning level. Each of the agencies involved in agricultural research has a national research council or committee which meets once a year in order to review the findings of the previous year and decide upon research programs for the forth- coming year. In MAFRA, a Ministerial Research Board is in charge of approving the decisions taken by the various Research Councils of the Ministry (GDAA, GDPPQ, GDVA, etc.), and the State Planning Organization (SPO) controls the final budget allocations for all ministries. Although this mechanism in itself would permit to achieve some degree of coordination in research planning and programs despite the prevailing fragmentation of responsibili- ties, the lack of clearly formulated and coherent priorities at the national level and the limited capability of both SPO and MAFRA for sectoral planning result in a situation where each coordinating body tends to merely endorse the programs which are submitted. 2.18 As a result, the various agencies involved in agricultural research tend to carry out their own array of activities without coordination with others, which leads to wasteful duplications. For instance, although the agronomic research done by TOPRAKSU concerns mainly plant nutrition and fertilization, it also gives attention to crop adaptation and variety testing for irrigated areas, thus duplicating work done on GDAA's institutes and stations. Considerable duplication of research activities, st_ff and physical resources also exist between other general directorates within MAFRA, in particular GDAA and GDPPQ. At the field level, collaboration depends on individual researchers and personal contacts, but is hampered in any case by the high degree of centralization which prevails and the fact that researchers belonging to GDAA and GDPPQ report to different general directorates with different policies and cumbersome bureaucratic procedures. 2.19 Attempts have been made by Government to foster better collaboration between research institutes belonging to different geineral directorates through the creation of multidisciplinary research projects. This started in 1969 in the context of the National Wheat Program, in which research was to be carried out by collaboration between GDAA, TOPRAKSU and GDPPQ. Some 30 - 13 - additional national research projects were subsequently established, most of which are commodity-specific (e.g. on maize, sunflower, legumes, tobacco, vineyards, citrus, cattle production, etc.). Under these national research projects, one research institute or station of GDAA is designated as the leader, while other institutions such as GDPPQ and TOPRAKSU are expected to collaborate in their respective field of expertise. A consultant from one of the agricultural universities is also designated as research advisor for each project. In reality, while under the wheat project improved collaboration was achieved between GDAA and GDPPQ as well as, to a lesser extent, TOPRARSU, this did not materialize in the more recent projects which tend to be carried out entirely by GDAA. 2.20 Besides leading to duplications in research activities of various agencies, the lack of clear guidelines on national research priorities also creates a situation where agricultural research is implicitly expected to cover all aspects of agricultural production and all crops and livestock activities. Each agency thus tends to carry out a large number of research projects on many different subjects, which results in a dilution of scarce manpower and financial resources. Although this problem is general, its extent varies with the internal structure of the various agencies involved in research. It is exacerbated in the case of GDAA, as it has a large number of research institutes and stations, each of which reports directly to the central level. Although seven of the largest ones are designated as regional research institutes, the definition of their regional responsibilities is rather loose, and they do not have primary programming responsibility or full technical control over smaller institutes or stations in the same agro- ecological zone. Under the national research projects, field testing in various locations is carried out by several of GDAA's institutes or stations under the supervision of a national coordinator designated in the leading research institute for the corresponding project. Nevertheless, each of GDAA's institutes or stations retains in addition to these projects a high number oE specific scattered research activities and on the whole the 33 research institutes and stations of GDAA work very much in isolation from each other. By contrast, both GDPPQ and TOPRAKSU research institutes have real regional responsibilities and have achieved better coordination. Staffing and Links with Outside Research Institutions 2.21 Besides the institutional problems described above, agricultural research in Turkey is also seriously impeded by a lack of sufficient numbers of highly trained professionals. Only 15% of GDAA's research staff have a PhD or Master's degree, with the remaining 85% being graduate agricultural engineers, i.e. having only the equivalent of a bachelor's degree with no training in research methodology. This situation seems to have been deteriorating over recent years, largely as a result of insufficient salary incentives for the younger researchers to pursue their academic studies beyond the bachelor's degree, as well as of attrition of advanced degree and experienced staff in favor of the private sector where salaries are much more attractive. The scarcity of research skills is exacerbated by their dispersion among a large number of research stations. - 14 - 2.22 Over the years, MAFRA's research institutes have developed good contacts with a number of external research institutions. Cooperative research and training programs have involved CIMMYT, IRRI, ICARDA, ICRISAT, IDRC, CIP, and some foreign universities. Nevertheless, in most research institutes there is a dearth of information and publications about research methods and results outside of Turkey which makes it very difficult for the research personnel to keep abreast of developments in their fields of specialization. As a result, research practices are often outdated and inefficient (both in terms of time and reliability of results), experimental procedures are not always sound and results obtained elsewhere are not effectively utilized for local adaptation. Current Research Activities of GDAA 2.23 GDAA's research institutes have succeeded in releasing a number of new varieties for several crops, together with recommendations on fertilizer application, plant density and timing of cultural operations for these varieties, and a body of knowledge is available at the research institutes for increasing crop and livestock productivity. However, the contribution made Ey GDAA's research institutions to technolo,'y development has not been commen- surate with its manpower and financial resources, and despite the large number of research projects carried out by GDAA some important aspects tend to be neglected. Although the determination of a comprehensive set of research priorities would certainly require further analysis, including a careful assessment of the main constraints to increased agricultural productivity, and the identification of specific areas in which research can be expected to contribute to removing such constraints, some gaps in GDAA's current research activities can be tentatively identified at this stage. 2.24 One important feature is that the share of research resources devoted to animal husbandry is far below the contribution of this subsector to agricultural GDP. GDAA's 33 research institutes and stations deal mostly with crop agriculture, with the exception of the Grassland and Animal Research Institute at Ankara, which coordinates four national research projects on respectively, grasslands, forages and large and small ruminant production. This institute has developed improved varieties of vetch, sainfoin and alfalfa for use in various agro-climatic zones of the county. It is also carrying out research on rangeland improvement and animal production studies on subjects such as the use of agricultural and industrial by-products for sheep and cattle fattening or crossbreeding studies. In all other research institutes or stations of GDAA, animal husbandry research is extremely limited. Outside of GDAA, the research carried out by the veterinary services (GDVA) concerns exclusively the preparation of vaccines and the diagnostic and control of animal diseases. This relative neglect of animal husbandry research is the result of the unclear distribution of responsibilities between GDAA and GDVA and their lack of collaboration rather than a conscious policy decision. 2.25 The major thrust of current crop research by GDAA is on plant improvement and breeding and the development and selection of new or adapted varieties of various field and horticultural crops. With the exception of the wheat research program in Central Anatolia, much less attention is paid to research on improved cultivation practices. Virtually no research is done in Turkey to develop farm machinery and equipment adapted to farm conditions and - 15 - suitable for the soils of different regions. Similarly, as the research is mainly carried out along commodity-specific lines, little attention is paid to cropping patterns and rotations. With the exception of the recently initiated programs for fallow reduction and second crop, the interaction between consecutive cr3ps through factors such as sail moisture, residual nutrients, disease and weed control, and the effect of such interaction on yields are rarely investigated, although this would not require any equipment beyond what is presently available on the main stations. This leads to recommendations which are not fully applicable on the farms and give only a very partial answer to the farmers' needs. 2.26 More generally, although most of the agricultural research undertaken by GDAA and other public agencies is of applied nature, investigations are sometimes undertaken which have little relevance to practical situations in the farms as a result of insufficient links with the extension service and farming community. Some of GDAA's research institutes carry out on-farm research, whereby trial varieties are distributed to the farmers to find out which new variety does best under the farmers' own conditions, or get involved in distributing improved seeds to farmers together with some technical advice. Such activities are, however, far from systematic and as they are mostly undertaken without close collaboration with the TZ extension service they remain very limited in scale. As a result, research findings are not adequately tested under farmers' conditions, and little feedback takes place from the farmers or the extension service to the research institutes. As research pays little attention to the economics of farn management and the acceptability of its recomnendations by farmers, recommendations on input use for improved varieties are often based on biological rather than economical optimums and the need for developing sub-optimal but simpler packages for extension in a first step is overlooked in most cases. Similarly, nost trials so far conducted on animal production have aimed at maximizing animal responses (e.g. obtaining maximum liveweight gains per day), with less attention paid to the use of low cost rations and other aspects of financial significance to farmers. On the whole, the emphasis in agricultural research is mainly on biological aspects of production, while agricultural economics is neglected and matters such as farm management, marketing arrangements, price policies, etc., are not adequately investigated. C. Bank's Experience with Extension and Research in Turkey 2.27 A number of Bank-assisted projects in Turkey, already completed or under implementation, have included an extension component as a support to specific investments in infrastructure or farm development. In most cases a special project extension unit was established independently from the existing countrywide extension services, This was first initiated in 1967 under the Seyhan Irrigation Project Stage I (Credit 34-TU), followed by the Seyhan Irrigation Project Stage It (Loan 587/Credit 143-TU), under which the training and visit system of extension was introduced for the first time before being extended to many Bank-supported projects in other countries. Similar extension units were created in a number of subsequent Bank-assisted projects in Turkey, such as the Fruit and Vegetables Export Project (Loan 762/Credit 257-TU), the Irrigat-on Rehabilitation and Completion Project (Credit 281-TU), the Ceyhan-Aslantas Multipurpose Project (Loan 883/Credit 360-TU), - 16 - the Corum-Cankiri Rural Development Project (Loan 1130-rTU), and the Fruit and Vegetable II Project (Loan 1967-TU). Under the more recent Erzurum Rural Development Project (Loan 2094-TU), the focus of the extension component is a strengthening and reorganization of the existing provincial TZ service rather than the creation of a separate project unit. 2.28 Starting with the Seyhan project, the special extension units created under the Bank-assisted projects have demonstrated the benefits which can be derived from a systematic approach to extension involving, in particular, the use of village level workers backed by more qualified staff, regular training of all staff and concentration or extension activities rather than data collection and other administra,ive tasks. While these units have had a substantial immediate impact on agricultural production in their area of operation, their long-term impact on institution building has started to materialize only recently. After completion of phase II of the Seyhan project in 1977, its extersion unit gradually faded away and despite its success the Government did not attempt to apply its basic principles to restructure its existing nationwide extension services. This failure to achieve a direct institution building impact has been related to the fact that the Seyhan extension unit was established in isolation from the existing extension system and apart from the main lines of responsibility of the existing government structure, so that it did not gain support from the ministries involved.l/ Although this weakness in design was apparent soon after the creation of the Seyhan extension unit, similar units were established under subsequent Bank-assisted projects as a practical solution to meet a pressing need for extension in areas benefitting from investments in infrastructure and farm development, at a time when Government was not committed to improving its own extension service. This has changed during recent years, and the extension component of the Erzurum Rural Development Project provides for improvements of the Government's existing extension service. In 1982, the Government made a decision to merge all existing project-specific extension units into the TZ extension service and to strengthen and reorganize the latter nationwide along the lines which have been successfully applied in Bank-assisted projects. 2.29 The experience gained under these projects also demonstrated the importance of having efficient research services to support the extension effort. This became apparent in Stage II of the Seyhan project when research institutions were slow in recognizing the importance of the white fly epidemic and in developing remedial action programs, which caused severe reductions in cotton yields and agricultural incomes and weakened the credibility of the extension service. Weak links between research and extension also resulted in the latter not being aware of existing findings concerning fruit and vegeta- bles. Similarly, under the Fruit and Vegetables Export Project, the lack of applied proven citrus research recommendations under Turkish conditions hampered the extension efforts, and the need for building a solid applied citrus research program geared to solving farmers' problems became apparent and was included in the Fruit and Vegetable II Project.2/ 1/ Turkey - Seyhan Irrigation Project Stage II, Completion Report, World Bank, April 12, 1979. 2/ Turkey - Fruit and Vegetable Export Project, Project Performance Audit Report, World Bank Report No. 4265, December 30, 1982. - 1 7 - 2.30 Other lessons have been drawn by Government from experience under tlhe Bank-assisted projects, in particular: (a) in the Corum-Cankiri project, political problems have arisen as foremen, who are practicing farmers or farmers' sons of the -ame village in which they work as extension agents, have been unionizing and claiming full-time employment and civil service benefits. It has also proved difficult in some cases to find sufficiently qualified foremen for carrying out this job. Since 1980 the Government has decided to use formally-trained agricul- tural technicians at the village level instead of foremen and to compensate their lesser field experience by improved pre- and in-service training. (b) The merging of the project-specific extension units into TZ has initially resulted in a loss of momentum in extension activities because of increased administrative pressures on the extension staff. In particular, difficulties h.ave been experienced in getting the provincial subject matter specialists actively involved in training village technicians and foremen, due to competing bureaucratic duties. As a result of this experience, GDAA has now explicitly included training responsibilities ia their new job descriptions. III. THE PROJECT A. Objectives and Rationale 3.01 The main objectives of the proposed project will be: (a) to foster increased productivity and agricultural incomes in the project area, through Amprovement in the flow of information between farmers and GJAA's extension/research services; (b) to contribute to institution-building of GDAA, the country's largest agency for agricultural extension and research; and (c) to permit further testing and refinement of methods of technology transfer to be ultimately extended to the whole country. 3.02 Improvements in technology generation and transfer have bee,n identified by the Bank as key priorities for further growth of the Turlkish agricultural sector, and the Government has recently developed an increased commitment to strengthening its extension and research capability accoTdingly and has already taken a number of steps towards this end. The proposed project is viewed by Government as the first of a series of projects which will ultimately extend similar concepts to all 67 provinces of the country. As shown by the nature of the problems identified in the preceding chapter, the process of building up the extensiort and research services in Turkey will - 18 - require, in addition to investments in physical facilities and manpower development, a number of institutional and organizational changes to be accompanied by modifications in working patterns of the existing staff, including in particular the separation of administrative from extension duties within the extension service. Several years will be needed before such changes are fully implemented, and the commitment to this undertaking will have to extend much beyond the six-year implementation period of this first project. B. Project Scope Project Design and Sectoral Context 3.03 The major thrust o' Zhis project wilL be on supporting Government's ongoing efforts to improve the effectiveness of GDAA's extension service (TZ). Support to agricultural research will be mainly limited to the measures needed to improve the linkages with the extension service and to meet the immediate needs of the latter in the project area. This relative imbalance is not expected to cause problems in the short term, since technological informa- tion already exists for extension to the farmers. However, in the medium or long term the future viability of the extension service will depend on the continuous availability of improved technology, which will require additional eftforts to improve the overall effectiveness of apLicultural research in Turkey. Considering the extreme fragmentation and complexity of agricultural research organizations in Turkey, and the resulting dilution and waste of resources, a broad-based support to agricultural research could not achieve any meaniagful purpose until at least the initial steps are taken by Govern- ment towards defining research priorities and consolidating the diverse research programs and entities.l/ Under SAL IV, the Government has agreed to establish an interrninisterial working group in charge of developing medium- term plans in these areas. A substantial improvement has already been accomplished by the recent merger of the former Ministry of Village Affairs into MAFRA. The development of further recommendations will be supported under this project (para 3.42), which also includes a large program of overseas training to upgrade the caliber of existing research staff (para 3.40). 3.04 The proposed project will focus on the TZ extension service, in view of its overriding size as well as of the steps already taken for its improve- ment. Duplication exists in some specific locations with other extension services, in particular with TOPRAKSU (in some irrigated areas) and SEKER (in sugarbeet growing areas). Also, nationwide responsibility for extension on plant protection and animal health matters is entrusted to separate agencies outside of GDAA (respectively GDPPQ and GDVA). An ultimate goal to achieve improved efficiency in the delivery of extension services would be to consolidate all extension activities in a unified service. Under SAL IV, the Government has agreed to establish a second working group towards this end, and this will also be supported under the project (para 3.42). In the 1/ The importance of these factors is emphasized in a recent OED study based on extensive cross-country experience (Strengthening Agricultural Research and Extension - The World Bank Experience, World Bank Report No. 4684, September 1, 1983). - 19 - meantime, as a first step in ov2rall upgrading of agricultural extension in Turkey, this project will support TZ's reorganization and strengthening, with provisions to ensure adequate coordination with other agencies through a central coordination committee (para 4.02). 3.05 The effectiveness of the proposed project will depend on the adequate availability of agricultural inputs and credit. Existing arrangemnents for this purpose have proven generally satisfactory and will be utilized under the project. Agricultural inputs are distributed partly by the private sector and partly through the Agricultural Supply Organization (TZDK), which is a State Economic Enterprise under MAF. During the past years, most inputs have been a'ailable to the farmers as needed, with the exception of some specific types of seeds (forages, hybrid vegetables and maize) which have been in short supply. In order to imnprove this situation, the Government has decided since 1982 to allow the importation of such seeds in case of domestic shortages and has agreed under SAL IV to encourage the involvement of the private sector and foreign firms in their production. The recently revised seeds decree (November 1983) largely frees the prices of certified seeds and high quality cultivars in an attempt to attract joint venture seed producers. The incremental credit needs which are expected to result from the intensification of extension services under the project will be met by the Agricultura. Bank (TCZB). The recently approved Agricultural Credit II Project (Loan 2318-TU) includes funds for financing the estimated foreign exchange component of such credit over a period of about four years in 10 of the 16 provinces of the project area. 3.06 Government's policies influencing the farmgate price of inputs and of crop and livestock commodities also have important consequences on the operations of the ext-tision service and the financial attractiveness of the proposed improveC technology packages. Until recently, a complex set of incentives in thie form of input and interest rate subsidies, support prices snd low water charges and cost recovery in irrigated areas have resulted in distortions and misallocations of resources in Turkish agriculture. These matters are being extensively discussed between Government and the Bank in the context of the general sector dialogue and the structural adjustment and project lending programs. Under SAL IV, the Government has agreed to continue its policy of gradually reducing price supports and eliminating fertilizer subsidies. Agreement las also been reached in connection with the Agricultural Credit II Project (Loan 2318-TU) that real interest rates on agricultural credit will gradually become positive, and the draft legal agreements for a proposed IAEE Irrigation Project include provision for improved cost recovery, which will support efforts of the extension service in promoting more intensive use of irrigated land. Most importantly, the Government has agreed under SAL IV to develop a medium-term planning capability for the agricultural sector, which is expected to result in a clearer and more consistent definition of national policies and program priorities in the sector. - 20 - Project Area 3.07 The project will provide support to the ongoing reorganization and strengthening of GDAA's extension service in 16 provinces, together with support to siX major research institutes of GDAA serving the project area. As socioeconomic circumstances and systems of agriculture vary considerably between the various zones of the project area, this wi'll permit evaluation and refinement of the various m. jns of technology transfer adopted under the project, and improvement in the design of future projects that are intended for Turkey's remaining provinces. 3.08 The 16 project provinzes (see Map) are located in four main agro- ecological zones: (a) Aegean/Marmara zone (lzmir, Manisa, Balikesir, Canakkale, Bursa, parts of Denizli); (b) Western trar,sitional zone (Kutahya, Afyon, Isparta, Burdur, parts of Denizli); (c) Central Anatolian plateau (Eskisehir, Ankara, Konya); (d) Southeast Anatolia (Diyarbakir, Urfa, Mardin). Agriculture is relatively more developed and more commercialized in the provinces of the Aegean/Marmara zone, although the situation varies widely between counties and villages. The rest of the project area, particularly in Southeast Anatolia and to a lesser extent the western transitional zone, is comparatively less developed. The main characteristics of the project area and its contribution to Turkish agriculture can be summarized as follows: Turkey Project Area No. villages 35,997 10,370 No. farm families (million) 3.1 1.2 Cultivated area (million ha) 28.2 11.8 Of which: Field crops 16.4 6.8 Fallow 8.2 3.6 Vegetable gardens 0.6 0.2-0.3 Vineyard, orchards, special tree crops (olives, nuts, etc.) 3.0 1.1 Pastures and meadows (million ha) 21.7 5.2i Forest land (million ha) 23.5 8.1 No. cattle (million head) 15.9 3.4 No. sheep and goat (million head) 67.7 23.4 Detailed data on meteorological and topographic features, land use and tenure, and production and yields of various commodities in each of the 16 project provinces can be found in the project's preparation report (Annex 11, Bl). - 21 - C. Project Concepts and Overall Description 3.09 The project will support two complementary and mutually reinforcing approaches to agricultural extension and inform.ation transfer. The first approach will be based essentially on personal contact between extension agents and farmers and field demonstrations, along the lines which have been successfully applied under extension components of previous Bank-assisted projects and which are now endorsed by Government for nationwide application. The TZ extension service will be strengthened and reorganized so as to overcome the major shortcomings described in the preceding chapter (paras 2.04-2.10). AgricultL'ral technicians will be posted in selected villages rather than the county towns in order to permit close contact with the farmers, and each of them will be assigned responsibility for agricultural extension over a given area usually encompassing several surrounding villages. As each village group technician (VGT) will cover the whole range of farming activities in his area, a whole farm approach will be adopted rather than the commodity-specific approach which prevails at present. The VGTs will undertake an intensive schedule of programmed farm visits, and they will be closely supervised and regularly trained by subject matter specialists (SMSs). Strong operational links will be established between the extension staff and the six major research institutes which serve the project area so as to ensure that the VGTs are adequately supplied with appropriate techlology for improving crop and livestock production. While TZ will retain its current administrative, regulatory and record-keeping duties, the VGTs and SMSs will be relieved from most of them as they will be entrusted to separate staff identified for that purpose at both the county and province levels. 3.10 This essentially labor-intensive extension method will be supple- mented by a second approach to information transfer based on the use of mass communication and audiovisual aids. Little systematic use of these for agricultural extension has been made up to now in Turkey, with the exception of the National Wheat Program in the early 1970s. Under the proposed project, an Extension Information Center (EIC) will be established at the central leve'L and some of its staff stationed at the research institutes, so as to ensure adequate dissemination of existing information, the preparation of well designed and relevant audiovrisual materials for use by TZ staff and coordina- tion with the Turkish Radio and Television service (TRT) for the programming and preparation of raoio and television broadcasts. Audiovisual aids and mass media will be used throughout the project area as a ccmplement to or partial substitute for direct contact between extension agents and farmers, and these two approaches will be closely integrated so as to achieve maximum efficiency. 3.11 As this project is the firpt full-scale extension project directed at improving the nationwide TZ extension service, particular attention will be paid to assessing the relative effectiveness of these two extension approaches in various parts of the country, for various groups of farmers and/or various types of technical information to be disseminated. Similarly, the relative effectiveness of the different types of mass media and of various ways of transferring technology through direct contact between extension agents and the farming community will be tested under the project. - 22 - 3.12 The support provided to the six major research institutes serving the project area will aim at strengthening their applied and adaptive research on commodities and farmning systems of importance in t-he project area so as to foster the development of improved technology packages for further transfer to '1Z and the farmers. Under the project, the linkages between these research institutes and TZ will be reinforced, an expanded program of field trials will be undertaken by the researchers in close collaboration with the TZ staff, and research will focus on problems which are of immediate consequence to farmers in the project area in order to develop technologies which are both practical and financially rewarding for the farmers in the context of their whole farm system of land use. 3.13 A monitoring and evaluation (M&E) capability will be established under the project so as to assist its management in ensuring timely physical irnplementation and in adjusting the design of this and future similar projects in light of the experience gained during the early years of implementation. M&E will be carried out in such a way as to ensure that feedback from the farming community is take.: into account in the extension and research activi- ties, and that lessons can be drawn on the relative effectiveness of various methods of technology transfer under different socioeconomic circumstances. The project will be further supported by a substantial program for local and overseas training of research and extension staff, as well as by provisions for consultants as needed to supplement local expertise during early implementation. D. Detailed Features Technology Transfer 3.14 Reorganization and strengthening of the TZ extension service. Under the extension system which will be adopted in the project, mul.tipurpose agricultural technicians ,osted in selected villages (village group technicians, VGTs) will be the major contact points between farmers and the rest of TZ and GDAA. This approach has been successfully adopted under previous projects, and is suited to the conditions prevailing in most parts of the country, where large numbers of farmers with a low level of education still use systems of husbandry and materials ihat are inappropriate for today's need for more intensive forms of land use. The main role of the VGTs will be to dibseminate information on available improved technology and to assist farmers with different resources in tailoring it to suit their particular needs. Strong backup will be provided by teams of subject mnatter specialists (SMSs) to assist VGTs in this task. Adjustments to this system wi:l be made in some of the more developed counties of the project area, vilere the relative density of VGTs will be decreased, and the SMS teams reinforced by additional SMSs as needed to allow them to answer directly 4ueries from the more advanced farmers. 3.15 Each VGT will be assigned responsibility for agricultural extension over a given area, the size of which will be determi.ned by land-use practices, topography, distances between villages, current stage of agricultural develop- ment and number of farm families. For indicative planninn. purposes, VGTs will be allocated at the ratio of 1:250 farmers where irrigated farming practices predominate, while in areas of more extensive agricultural production, the - 23 - ratio will vary around 1:550-650 farmers, although it could be as high as 1:1,000 farmers in counties where modern farming systems are widely adopted. Adjustments will be made within the village and county boundaries. Within his assigned area, a VGT will concentrate initially on the more important agricultural crops, but this will always be done in full recognition of the overall system of land-use adopted in the area. Attention will be focussed on practices likely to bring the best economic results, such as seed bed preparation, seed treatment, spacing, weeding, efficient fertilizer use and timeliness of operations, while in livestock agriculture, emphasis will be on the production, conservation and use of forages duriug periods of feed deficit, together with the feeding and management of calves. 3.16 Systematic contacts between VGTs and farmers will be organized in such a fashion that as wide a range of farmers as possible can be reached. A number of farmers within a VGT's area of operation will be identified as "contact farmers" and will be regularly visited by the VGT on a fixed schedule known by other farmers who will be encouraged to join and participate. On each visit, the VGT will visit the contact farmer's fields and herds, discuss and if possible demonstrate innovations aimed at increasing farm productivity, check progress made in adopting previous recommendations and observe any technical problems the farmers may be having. The identification and selec- tion of contact farmers will be made by the VGT with assistance from more senior TZ personnel and in close consultation with village leaders and will be based on criteria such as their potential influence on the farming community, their willingness to collaborate with the extension service, the need to represent various categories of farmers with varying needs and resources, etc. The suitability of the identified contact farmers as channels for disseminating information to the rest of the farming community will be carefully monitored, and replacements will be made when needed. Under the project, the effectiveness of various methods of designating the contact farmers will be tested, such as the designation of fixed contact farmers over the years or a systematic rotation of contact farmers amongst members of the farming community after one or two cropping seasons. Similarly, the possibility of using some of the contact farmers more systematically to assist VGTs in their extension work with appropriate compensation may be examined in specific locations. In deciding on the application of such variants in particular counties and provinces the opinions and suggestions of the local TZ staff will be actively sought by project management. 3.17 Other extension techniques will be used as a complement to the systematic visits of contact farmers by VGTs. Meetings of groups of farmers will be organized, in particular during times of the year when there is little agricultural activity, and the VGTs will take advantage of existing farmers' associations such as village cooperatives and of traditional institutions such as the tea house which allow them to meet and talk to the majority of farmers in anv village at one time. The extent of such activities will depend upon the village, the time of the year as well as the type of technological improvement to be promoted. For instance, group action in the context of a whole village approach may take particular importance in areas where agriculture is largely based on systems of livestock production which rely heavily on communal use of fallow and grazing lands for several months of the year, and where as a consequence any attempt at improving grassland production or animal health standards on an individual basis would be frustrated. - 24 - 3.18 The VGTs will carry out their extension activities with village farmers on four fixed days each week that will be chosen in recognition of market days and those other days when farmers are not freely available on their holdings. On the fifth day in each week, VGTs will either attend training sessions conducted by SMSs or they will devote their time to administrative and organizational matters. Within this framework, precise schedules for VGTs activities will be drawn up and strictly adhered to in all the provinces of the project area. Although these schedules, as well as the number of contact farmers assigned to each VGT, will vary depending on the circumstances in different areas, for indicative planning purposes it is expected that on average about 40 contact farmers will be selected within the area assigned to a VGT and that his scheduled program of activities will include visits to 5-10 contact farmers per day on four fixed days each week, with adjustments according to the agricultural season. It is also expected that on one fixed day every fortnight, VGTs will attend an intensive training session provided by county group SMSs (para 3.20). 3.19 The VGTs will be administratively attached to the county TZ office. The County Agricultural Engineer (CAE) at the head of TZ county office will retain his present functions and be responsible for management and supervision of the extension program in his county. He will be assisted in the latter task by an additional agricultural engineer (AE) who will be specifically responsible for supervising the VGTs in the county. In each county office, a team of about three agricultural technicians will be assigned to assist the CAE in carrying out administrative functions, so as to ensure that VGTs and AEs will be effectively relieved of these tasks and will focus on cxtension work. 3.20 Technical support to the extension work of the VGTs and AEs will be provided by teams of SMSs which will serve a group of about 50-80 extension workers each, or on average 4-6 counties, and will be posted in one of these counties. Typically, each such county group SMS team would be composed of 4 SMSs specialized respectively in field crops, horticulture, animal husbandry and plant protection. Their main responsibility will be to organize regular and intensive fortnightly training sessions for VGTs, which will also be attended by the AEs and, on oceasion, CAEs and will concern groups of not more than 20-30 extension workers at a time. These training sessions will concentrate on activities to be undertaken by VGTs with contact farmers in the forthcorning two-week period, and will involve field visits in order to plan and implement demonstrations. They will also embrace the progress being made in adoption rate surveys, yield surveys (para 3.35), field trials (para 3.32) and other activities in progress by GDAA, so that VGTs may obtain stature in the community they serve not only on the grounds of their technical knowledge, but also of their awareness of and contact with other activities. The organization of training sessions will allow adequate time for a two-way flow of information. As the county group SMSs will be in close contact with research (para 3.26), they will expose VGTs to the ideas and practices being formulated at researcb: institutes, as well as act as conduits for exposing research institutes to farming problems brought forward by VGTs. - 25 - 3.21 The provincial TZ director will have overall responsibility for imnplementation of the extension program in his province. The existing specialist sections at the provincial level will be separated in two groups with one support services group reporting to the deputy to the TZ director in charge of administrative matters and one group responsible for technical matters (provincial SMS team) reporting to the other deputy to the TZ director, who will deal full-time with extension. The provincial SMS team will consist of generally eight SMSs who typically would be specialized respectively in field crops, horticulture, livestock, forage crops, plant nutrition and water management, mechanization, household e.:conomics, and information/training. Additional specialist support at the provincial level will be provided by staff from other agencies, in particular GDPPQ and GDVA as well as, in some cases, TOPRAKSU and LDP. The provincial SMS team will be responsible for developing, under the guidance of the central SMS team (para 3.23), a technical strategy for the province and for ensuring high quality in the VGTs training sessions conducted by the county group SMS teams. Provincial SMS will participate as needed in these training sessions in view of their particular fields of specialization, which mostly concern disciplines not represented in the county group SMS team. 3.22 All county group and provincial SMSs will participate systematically in monthly training workshops which will be undertaken both at the research institutes and in the provinces. For indicative planning purpose, each SMS will attend on average one of these monthly training workshops in each quarter (i.e. four per year) at oi.A of the six research institutes included in the project. The research institutes' directors, assisted by research coordina- tors (para 3.33), will be responsible for these workshops, which will be of 2-3 days duration each and will be organized on a regional basis for groups of 15-20 SMSs of similar field of specialization. The main purpose of these workshops held at research institutes will be to provide a channel for the transfer -f technology from the research to the extension service and for upgrading the technical competence of provincial and county-group SMSs in their particular field of specialization. The other monthly workshops for SMSs will be held in the provinces under the responsibility of the provincial TZ directors, who will liaise closely with the corresponding regional team of central SMSs (para 3.23) and with research institute directors in regard to the content and conduct of these provincial workshops. For indicative planning purposes, it is considered that one workshop in each quarter (i.e. four per year) will be held on a provincial basis with the participation of all SMSs regardless of their specialization in order to pursue provincial policies on farm improvement, with special emphasis being placed on the whole farm system and on in-service training on subjects such as extension methods, farm budgeting and decision-making, inputs and marketing, etc. These workshops would be used to promote collaboration among SMSs of different specializations and a whole farm approach. The third workshop in each quarter, also held on a provincial basis, would be more of a technical nature and commodity oriented, and associated with visits to farmers and on-farm trials, with attendance from some researchers, university staff, etc. The participation of research workers in this latter type of workshop will complement the technology transfer function of the workshops organized at the research institute by allowing the researchers to explain and demonstrate their recommendations in the particular context of a given province or county. - 26 - 3.23 At the central level, the head of the Extension Department of GDAA will oversee the extension operations of the provincial lTZ offices. The present organization of this Department, which is strictly commodity-specific, will be modified so as to foster an approach to extension based on regional land-use systems. Some of the existing staff will be reorganized into four regional multidisciplinary teams, each of which will comprise about six SMSs and will be responsible for one of the four main agro-ecological zones of the project area. These central SMS teams will develop a technical strategy for each agro-ecological zone of the project area, and will supervise and provide technical support to the provincial SMS teams. They will make frequent field visits, and will participate in the SMS workshops held at research institutes and occasionally in the SMS workshops in the provinces and in the VGTs training sessions. 3.24 Audiovisual Aids and Mass Media. In order to strengthen the capacity of GDAA to use audiovisual materials and mass communication methods, an extension information center (EIC) will be established in Ankara, which will (i) assemble a library of existing information from Turkey and abroad of interest to extension workers, abstract and disseminate such information to TZ, (ii) prepare and produce audiovisual aids (leaflets, technical bulletins, slides, movies, posters, video-films, etc.) for use by VGTs in farmers' training and by SMSs in VGTs' training, and (iii) coordinate the use of mass media for general information to farmers, particularly of radio and TV broadcasts and newspaper items. The EIC, which will administratively be located under the GDAA or his deputy in charge of extension, will collaborate with the national documentation center (TURDOK), the Turkish radio and television service (TRT) and the film, radio and television center of the Ministry of Education (FRT). It will comprise a total staff of 50-60 people, of which "20-.5 will be professionals in part drawn from existing staff at GDAA's headquarters. 3.25 One information coordinator belonging administratively to the EIC will be stationed at each of the research institutes supported by the project as part of the team of extension coordinators (para 3.26). He will assist with the organization of the SMS workshops held at research institutes by providing audiovisual aids when needed and coordinating the contributions of the various researchers involved in the workshops. He will also act as a main channel for ensuring that informatior. on feasible innovations available at the various research institutes serving the project area are communicated to the EIC aiad rapidly reach the farming community, and that the information/training provincial SMS are supplied with adequate audiovisual materials. With the assistance of the information/training provincial SMSs and under the guidance of the EIC and the researchers, the information coordinator will produce slides, film strips, video films and other materials of local relevance and will coordinate with the local press and with TRT's regional offices for the production of local radio talks and TV programs. 3.26 Extension-Research Links. Under the project, regular contacts will be maintained between TZ's provincial and county group SMSs and the research institutes through the workshops for SMSs held at research institutes and the participation of researchers in some of the SMS workshops held in the provinces and the associated field visits. Provincial and county group SMSs - 27 - will also be closely associated to the conduct and implementation of field trials under the responsibility of researchers (para 3.32). In order to facilitate communication between research and extension scaff, a team of four or more extension coordinators belonging to the extension service will be stationed permanently at each research institute supported by the project. Typically the team of extension coordinators in a given research institute will consist of one information coordinator, one farm management economist and two or more commodity specialists who will act mainly as field trial coordina- tors for the main commodities of the region. The extension coordinators' role will be to (i) facilitate the conduct of field trials in close collaboration between research and extension, (ii) participate with researchers in the formulation of practical technology packages suitable for release to TZ, (iii) assist researchers in the conduct of training workshops for SMSs held at research institutes, and (iv) assist SMSs in relaying farmers' problems to research workers in such a way that the latter develop an increasing concern for the relevance of their work to the farmers' needs. Extension coordinators will be drawn from experienced extension and research staff. 3.27 Investments and Incremental Operating Costs. To permnit the above aevelopments, provisions are made in the project for: (a) recruitment of about 400 agricultural engineers and 900 agricultural technicians for staffing the extension service, together with other professionals (translators, photographers, video and graphic specialists, etc.) and support staff as needed for the EIC. (Details in Annexes 5, 6 and IlC.) The project provides for incremental salaries and travel allowances to permit an expanded program of field visits; (b) construction of some 1,600 village housing units to allow existing and incremental VGTs to be deployed in the villages. Complementary housing is also provided for county staff and agricultural engineers at the county group and provincial levels so as to attract and retain qualified staff despite the relatively low civil service salaries and the resulting competition from the private sector. Provisions are also made for some additional offices for TZ in the provinces and counties and for a building for the EIC. (Details in Annexes 7 and llC.); (c) provision of some 1,650 motorcycles, 730 pickups and station wagons and 30 minibuses to give adequate mobility to the staff of the TZ field offices, extension coordinator teams and EIC, together with recruitment of some 580 drivers to permit use of these vehicles. (Details in Annexes 8 and llC.); (d) purchase of equipment for the IC and of complementary audiovisual equipment for the TZ field offices; (e) purchase of some specialized agricultural equipment for the TZ provincial offices, as needed to compleument standard equipment which can be borrowed or rented from the farmers for field demonstrations; - 28 - (f) provisions for incremental operating costs, including O&M of incremental vehicles and equipment, building upkeep and maintenance, inputs and machinery rental for demonstrations, guest speakers for the monthly SMS workshops, etc. 3,28 The mobility of the TZ staff is presently constrained not only by the lack of vehicles and drivers, which will be remedied under the project, but also by cumbersome bureaucratic procedures which require them to get several official authorizations at the county and provincial levels each time they need to travel outside of their county of residence on official business. Under the project all provincial and county group SMSs would be allowed to travel within their province of assignment and to the regional research institutes as needed to perform their duties, with the sole consent of their direct supervisor within TZ as is the case presently for staff of other government agencies (GDPPQ, TOPRAKSU, etc.) which have a regionally based organization. Similarly, problems have been encountered under previous projects in authorizing agricultural technicians to drive heavy motorcycles requiring a driver's license. Considering the need for mobility of the VGTs between different villages and the distances involved, heavy motorcycles will be required in much of the project area. Under the project, VGTs will be equipped with heavy motorcycles when needed, and measures would be taken for adequate insurance and authorization to .rive them to perform their work. Research and Developnent 3.29 Four of the six selected research institutes of GDAA supported under the project will assume regional responsibility for serving the needs of the neighboring provinces of the project area: the Middle Anatolia research institute (which will serve the provinces of Ankara and Konya), the Eskisehir research institute (Eskisehir, Afyon, Isparta, Burdur, Kutahya), the Aegean research institute (Denizli, Izmir, Manisa, Balikesir, Canakkale, Bursa) and the Southeast Anatolia research institute (Diyarbakir, Urfa, Mardin). These four institutes, all located in the project area, presently deal with most major crops within their region and will be the major source of crop tech- nology for the extension staff under the project. The Mediterranean regional agricultural research institute, although located outside of the project area, will also be supported by the project in view of its current responsibility for technical support to the Aegean and Southeast Anatolia research institutes for research on multiple cropping in irrigated areas. The sixth research institute supported by the project is the Grassland and Animal Husbandry research institute (GAHRI), located in Ankara, which will have regional responsibilities for livestock matters in the provinces otherwise covered by the Middle Anatolia and Eskisehir research institutes and will provide technical support to the Aegean and Southeast Anatolia research institutes which have limited facilities and staff for livestock investigations. 3.30 Under the project, these six major institutes will collaborate as needed with other institutions providing agricultural research services to the provinces of the project area. This includes a number of commodity-specialized research institutes of GDAA located either in the project area or in its - 29 - vicinity, some of which are being strengthened under other ongoing Bank- assisted projects, as well as research institutes of GDPPQ and TOPRAKSU. 3.31 Details on present facilities, staff and research programs of the six institutes supported by the project can be found in the project's preparation report (Annex 11, B1), together with a description of the main research findings and the resulting improved technology packages which have already been developed and will constitute the basis of extension recommendations during the early years of project implementation. Under the project, the agronomic research capabilities of these research institutes will be strengthened so as to permit more research to be conducted on practical ways of improving the plant environment (e.g. cultural methods, fertility, etc.) to permit full expression of the genetic potential of the improved varieties which are being developed. In animal husbandry investigations, emphasis will be placed on forage crops production and use (including harvesting and conservation techniques as well as the development of improved cultivars) and on maximizing the use of crop residues and industrial by-products for animal feeding (including improvements of their feed value and development of cheap means of conservation). The planning of specific research activities within this broad program, as well as the interpretation of the results to formulate technological packages, will take into account aspects such as the economic importance of the production activity considered in the region and the motives of the farmers for undertaking such activity, the scale on which this activity is prac.iced by the farmers, the interaction between consecutive crops within a rotation, etc. Economists and farm management specialists will be fully integrated in the Lesearch teams for the various commodities. 3.32 Under the project, researchers will undertake an expanded program of field trials in various locations outside of the research institute, either in substations or other government land or on farmers' fields, so as to allow proper testing of the recommended technological packages under various agroecological conditions and in various scales before release of the research findings to the extension service. The field trials will be conducted under the responsibility of the researchers who will lay out the experimental procedures and interpret the results. They will be assisted with the implementation and supervision of such trials by the members of the team of extension coordinators stationed at the research institutes, and in particular by the commodity specialists of such teams who will act primarily as field trial coordinators with the collaboration of the provincial and county group SNSs. In this fashion, the conduct of field trials will expose researchers to farmers' needs and as SMSs will become actively involved in field experimental work, their extension and technical capability will be strengthened. 3.33 At each of the six research institutes, one or more experienced scientist will be designated by the institute's director as research coordinator and will be vested with responsibility for (i) aTising the director in the definition of research programs and priorities and ensuring that they are relevant to the whole farm needs of the region; (ii) coordi- nating research work and findings and guiding the formulation by researchers and extension coordinators of practical technology packages for release to the extension service; (iii) guiding the conduct of the program of field trials - 30 - and obtaining assistance from extension workers for this task; and (iv) obtaining help from other researchers and from the extension coordinators for the training of SMSs. It is expected that two research coordinators will be designated at GAHRI, one for forage crops and the other for animal husbandry work, and that in other research institutes, one or more research coordinators will be designated for major commodities/group of commodities. One research coordinator will also be designated at each of the other research institutes or stations of GDAA or other organizations (GDPPQ, TOPRAKSU) which serve the project area. The designated research coordinator at such institutes will be the main contact for enabling the research and extension staff directly involved in the project to draw on the particular knowledge of more commodity-oriented or specialized research institutes. 3.34 In order to achieve the objectives described above, the project includes investment and incremental operating costs at six existing research institutes, with the following main elements (details in Annex llC): (a) recruitment of about 100 researchers, together with additional support staff, with provision for incremental salaries as well as travel allowances to permit the conduct of an expanded program of field trials and participation in SMS workshops in the provinces; (b) construction of facilities such as dormitories, conference rooms and cafeterias to permit the conduct of SMS workshops, together with additional research facilities and housing for some of the researchers and extension coordinators as an incentive for attracting and retaining qualified staff in these functions; (c) purchase of a total of about 70 vehicles (station wagoas, pickups, trucks, buses, etc.) and of additional farm equipment and machinery to carry out applied research at the research. institute and by field trials; (d) purchase of additional laboratory and audiovisual equipment and provisions for subscription to scientific periodicals and books; (e) incremental operating costs, including vehicles and equipment O&M, building upkeep and maintenance, and inputs for field trials. Monitoring and Evaluation 3.35 The M&E system of the project will provide a management information service to assist with efficient and effective implementation (internal M&E) and assemble and assess data to assist with the formulation of policy decisions and with the design of future similar projects (external M&E). The internal M&E system being a management function, it will be essentially county- and province-based and it will be carried out by TZ staff. In the first year of project implementation, a data collection and record keeping system will be designed, which will be similar in the various counties and provincer of the project area. At the county level, the administrative group responsible to the CAE will undertake the routine assembly of monitoring data - 31 - on project operations and will prepare brief reports highlighting achievements, problems and anomalies for consideration by the CAE. In addition, they will undertake simple adoption rate surveys for assessing the effects of the project on the farmning community. At the province level, the engineers of the economics and statistics section of the support services group will be responsible for internal M&E. They will provide the county staff involved in M&E with technical guidance and support, and will undertake yield surveys on a restricted number of crops in order to determine if the innovations being promoted under the project are resulting in higher yields or increased benefits of another nature under farm conditions. When necessary, yield surveys will be augmented by case studies designed to investigate in depth any problems or anomalies that have been experienced in the field. At the central level in Ankara, the internal M&E systemn will be serviced by staff identified within GDAA's Departments of Economics and Statistics, and of Technical Cooperation and Coordination, together with additionally recruited personnel. The central internal M&E group will report to the project's national coordinator (para 4.02), wthom they will periodically present with a summary of problems, issues and recommendations for project improvement in the field. They will collate and summarize the information on progress with project implementation and operations in the provinces, and will maintain data obtair.nn over timne from adoption rate and yieLd surveys as an aid to evaluating the benefits derived by farmers from adopting innovations promoted by the project. 3.36 The external M&E will be carried out by the small M&E group recently created within GDAA's Department of Technical Cooperation, which will be strengthened for this purpose by additional staff. Initially, the external M&E group will assist in field staff training for internal M&E and in the design of data collection systems, adoption rate surveys and yield surveys. As project implementation progresses, it will undertake or commission special studies relevant to thc project in order to yield information that will assist with the formulation of new policies and programs for developing crop and livestock agriculture. For example, it is anticipated that during progress of the project studies will be pursued on subjects such as the ratio of VGTS to farmers in various parts of the project area, the impact of television and radio on agricultural development, the relative values of the contact farmer approach as compared to the whole village approach. etc. The need for studies related to availability of credit and to marketing opportunities or rural transportation may also arise as a result of project operations. In its evaluation activities, the external M&E group will use, whenever possible, data collection systems that are aLready established within GDAA or elsewhere. 3.37 Incremental staff to be recruited under the project for the M&E component will consist of a total of some 8 professional staff at headquarters together with some 36 enumerators. Provisions are also made in the project for the purchase of vehicles for use by the M&E groups at headcquarters and of office equipment, calculators and minicomputers, together with adequate funds for operation and maintenance, as well as for the subcontracting of special studies by the external M&E group to other agencies in Turkey. - 32 - Training 3.38 In-service training. During the first year of project implementa- tion, an intensive program of orientation for all staff to be involved in the project will be undertaken, and staff joining after this time will likewise be fully informed of the project's concepts and organization. For indicative planning purposes, it is expected that each engineer and VGT of the TZ service in the 16 project provinces will attend an orientation training session of about one week. Orientation of the TZ provincial directors and senior staff from the TZ provincial offices will be organized by the headquarters staff of GDAA's department of extension, with attendance from other staff involved in the project, such as the directors of the research institutes and some of their senior staff and the members of the M&E groups, as well as key government officials whose support to the project will be essential (e.g. provincial governors) and key members of related institutions such as GDPPQ, GDVA, LDP, TOPRAKSU, etc. Thereafter, orientation of the county and village TZ staff would be conducted by the provincial TZ directors/SMSs under guidance of GDAA's headquarters staff, and the VGTs would in turn undertake orientation of farmers through village meetings. 3.39 After the initial orientation period, a variety of in-service/ refresher training courses will be offered throughout the project period for extension staff as needed to complenent the fortnightly VGTs training sessions and the monthly SMS workshops. For indicative planning purposes, each agricultural engineer in TZ would attend such refresher training for about one week each year, while VGTs would benefit from a one-week course once every three years. The refresher courses will be organized at selected agricultural universities, research stations, specialized agencies like GDPPQ and TOPRAKSU, etc., and will deal with technical subjects as well as agricultural extension and communications methods. In order to ensure quality and relevance of the in-service training programs, the cost estimates include provision for hiring the services of local experts for the design of the training curricula. Agricultural faculties serving the project area (i.e. Ankara University, Ege University and Cukurova University) will be associated in curriculum design, as well as participate as guest speakers for particular training sessions. In-service training for the staff of the Extension Information Center will be organized in collaboration with TURDOK (national documentation center), FRT (film, radio and television center of the Ministry of Education) and TRT (Turkish radio and television service). 3.40 overseas training. The project will support an extensive program of overseas training-for extension, M&E and research staff as follows (details in Annex llC); - 33 - MSc Short-term Study Fellowships Fellowships Tours (2 yrs. each) (0-6 mos. ea.) (1 mo. ea.) ----(No.)---- - No. L,an-months------- TZ extension service 30 - 150 Erc 2 40 10 M&E 6 108 - Research 136 202 Total 174 350 160 Staff benefitting from such training will be required to stay within GDAA after their return for at least twice the period of time spent overseas. The large overseas training program for researchers will contribute to alleviating the current lack of qualified research staff in GDAA. By the end of the project implementation period about one-third of GDAA 's research staff will have an advanced degree, as compared to 15% at present. In addition, the project provides for short-term fellowships for researchers to learn a specific research technique, to visit key research institutions or attend international research conferences. In view of the extensive overseas training program, its adm:nistration will require the assistance of an outside organization acceptable to the Bank, such as FAO or ISNAR, with broad inter- national contacts for ensuring the placement of the trainees at suitable outside universities and the payment of tuition, lodging and travel expenses while abroad. Technical Assistance and Studies 3.41 A total of 100 manmonths of consultant services will be provided for direct support of the project operations. This includes a long-term extension consultant for a period of 24 manmonths, who should be in position about three months ahead of the start of the project's orientation program and will be assisted during early implementation of the project by two short-term consultants for periods of three manmonths each; an additional six manmonths is included for additional short-term extension consultants as needed later during project implementation. To assist with the internal M&E, a consultant will be appointed early during the first year of project implementation for a period of 12 manmonths (8 manmonths in PYI, and 2 in each of PY2 and PY3); a further 4 manmonths will be provided for a consultant to develop the external M&E component (2 manmonths in each of PY2 and PY3). Starting in the first year of project implementation, a media expert will be provided for 2 years and a documentation specialist for 1 year in order to assist with the initial operations of the EIC. A total of 12 manmonths ie also pzovided under the project for short-term consultancies as needed to assist in research activities. Terms of reference for the consultants to the project are detailed in Annex 11, C2. The project will also include 48 manmonths of English language instructors in order to provide language training for staff going abroad to English speaking institutions. - 34 - 3.42 A further 8 manmonths of technical assistauce will be provided in order to assist the working groups on research and extension orgarnization, which the Government has agreed to establish under SAL IV (paras 3.03-3.04), in carrying otit some aspects of their terms of reference. In view of the intended future extension of this project to the whole country and to agencies other than GDAA and considering the staffing and training problems faced by various technical agencies of MAFRA, the terms of reference of these workir.g groups will also include an assessment of MAFRA's medium-term training and manpower requirements. Terms of reference for the working groups on research and extension are outlined in Annex 10. A further two manmonths of technical assistance are included in the project for assistance in the preparation of repeater projects. E. Project Cost 3.43 The total project cost is estimated to be US$205.7 million equivalent (including some US$8.0 million in taxes), of which some US$82.2 million, or about 40%, is direct and indirect foreign exchange. The base cost represents the estimated cost of investment and initial operation, including incremental staff salaries, during 'he six-year (April 1984-March 1990) project implemen- tation period, in becember 1983 terms (exchange rate US$1=TL 270). Physical contingencies of 10% have been added for building construction costs. Price contingencies between January 1984 and the end of the project implementation per_od are estimated at US$32.3 million equivalent, or about 19% of base cost plus physical contingencies. They have been applied to both lo"al and foreign costs in US$ terms at the following annual rates: 7.5% in 1984, 7.0% in 1985 and 6.0X annually for subse4quent years. By measuring both foreign and local price contingencies in US$ equivalents, it has been assumed in line with the Government's policy that the lira exchange rate would change so as to offset the inflation differential between Turkey and its major trading partners. The lira has been devalued roughly in accordance with this pattern since 1980 and is now adjusted daily on a crawling-peg system. The base project cost includes about USt1.3 million for 110 man-months of consultants' services at an average estimated total cost of US$12,150 per man-month including fees, travel and subsistence allowances. A summary of the project cost by functional component is given in Table 3.1 with a breakdown by type of expenditure in Annex 1 and further details in Annex 11, Cl. - 35 - Table 3.1; PRGOECT OOST SMR"L. (TL Miillion) (USS Milliorn) ------------------------- --------------------- % Foreisn Z Total Local Forpign Total LoctPl Foreidr, Total Exchange Base Costs A. EXTENSION SFRVICE 1, BUILD, VEH A EGUIP (INV,) 14,185.2 79142.M 21,328.0 57.6 9A h4 79.0 33.9 47.! 2. TNrR STAFF I nPfR COSTS RWR91.3 4,203.9 13#09S.? 32.9 1S.A 4R.5 32.1 qiih-Tnt.al EXTFNRllN RFRUT8F 73#07A.9 11,34A.7 34.473,2 89.9 4?.0 12775 33.0 7A.7 B. EXTFNSTON TNFOlRMATION (FNTFR 1. BUILD, VEH & EQUIP (INV.) 125.7 182.4 308.1 0.5 0.7 1.1 99.? 0.7 7. TNrR STAFF A lPFR COSTS 401.9 453.6 85S.1 1.9 1.7 3.? 93.0 1.9 Siuh-Tot.al FXTFNSInN TNFORHATTON OFNTFR 597.7 A3A.0 1.263.2 2. ').4 4.3 94.7 7,A C. APPI TFn RESFARCH 1. R11TIl, VF 9 EGITP (TNU.) 1450.4 1.9R3,2 3,333,5 9.0 7.3 12,3 99.9 7.4 2, INCR STAFF A OPER COSTS 1,114.9 944.1 2,058.6 4,1 A,S 7.A 41.9 4,. Sub-Tot.al APPL TFD RESFARCH 2,464.8 ?.927.3 5#392.1 9,1 1O.R 20.0 94,3 120. Ti, PRORJET MANAGEMENT ANDl KlE 1. I4ONTTnRING AND EVALUATION ?15.7 59,4 27F.1 0.R 0.? 1.0 ?1.;) 0.A 2. PROJECT MANAGEMENT 5.8 26.8 32.6 0.0 0.1 O.1 F7.2 .l1 Sub-Total PROJECT MANAGEMENT AND HIE 221.5 86.2 307,6 0.R 0,3 1.1 21..0 0.7 E* TRAINING 1. TN-SFRUTCE 10R.0 - lOR.0 0.4 - 0.4 - 0.2 2. OVERSEAS - 3,063.0 3,063.0 - 11.; 11.3 100.0 6.R Sub-Total TRAININGf 108.0 3.063.0 3,171.0 0.4 11.3 12l7 96.6 7.1 F. TECHNICAL RSTISTAN/Fb 43.i 391.A 439.1 tt.? 1.9 1.7 90.0 1.) rnt.RI RASEL.INF COSTR 7A.W441.5 118v45A& 44R92.3 98.0 AR.1 1A4.3 41.1 100.0 Phwsical CrnntinrP,cisi 19.19.7 383.9 1.9?3,7 5.7 1.4 7.1 20.0 4.3 Price Contingencieq /c 5.37A,. 3.349.F R.727.4 20.0 12.3 3203 3.4 19.4 rntal PROJECT CnSTS 33,357.7 22,1R4.A 55,9542.3 123.7 82.0 205.7 39.9 123.7 Frnnt End Fee ./d 48.6 48,6 - 0,2 0.2 100.0 ,l1 *otai FINANCING RFflIITRFD 33,397.7 21,233.2 .95.990.9 123.7 82.2 209.9 40.0 i :4.R /a Table contains rounding errors. /b Includes TL 74.1 million (US$0.3 million) for English-language instructors and TL 361.0 million (UES1.3 million) for consultants' services. /c Estimated in US$ terms at an exchange rate of US$1 = TL 270. Because local inflation is expected to be higher than international inflation, the actual TL amunts will be higher, the difference being offset by changes in exchange rate. Id 0.25% of Bank loan. - 36 - F. Financing 3.44 The proposed Bank loan of US$72.2 million will finance about 88% of the foreign exchange cost of the project (about 35% of total cost) and the front-end fee. A loan from IFAD of $10 million equivalent, to be administered by the Bank, will finance the remainder of the foreign exchange requirement, or 12% of foreign cost (about 5% of tutal cost). The IFAD loan will be specifically applied to :.inance project activities in the iess developed Southeast Anatolia region. The Government of Turkey as the borrower will contribute US$123.7 million equivalent or the remaining 60% of the total project cost, Financing o. the various project components will be shared as shown in Table 3.2. Table 3.2: PROJECT FINANCING PLAN/a (US$ million equivalent) IBRD IFP Government Total Amount % AmounL % Amount % Amount % Extension Service 44.1 28 6.7 4 108.0 68 158.8 100 Extension Information Center 2.9 55 - - 2.4 45 5.3 100 Applied Research 11.1 46 1.6 6 11.6 48 24.2 100 Pzoject 1anagement and M&E 0.3 26 - - 1.0 74 1.4 100 Training 12.0 84 1.7 12 0.5 4 14.2 100 Technical Assistance 1.6 90 - - 0.2 10 1.8 100 Front-End Fee on IBRD Loan 0.2 100 - - - - 0.2 100 Total 72.2 35 10.0 5 123.7 60 205.9 100 /a Physical and price contingencies added to each component; table contains rounding errors. 3.45 Sufficient funds have been allocated in the 1984 budget for financing the invastments and operations planned for the corresponding period of project implemertation. It was agreed that (i) for subsequent years, the Government will inform the Bank by September 15 of each year of MAFRA's proposed budget allocations for meeting the needs of the various components of the project during the forthcoming fiscal year, and (ii) Government will take all necessary action to ensure availability of adequate agricultural input. and credit in the project area. - 37 - 3.46 In order to avoid requiring the Government to pre-finance local expenditures reimbursable under the Bank and IFAD loans, two Special Accounts will be established at the Central Bank and an amount of US$5.0 million enuivalent will be deposited in these accounts out of the Bank ($4.4 million) and IFAD ($0.6 million) loans upon request from the Borrower. Thereafter, the Bank and IFAD will replenish these accounts out of the proceeds of the loans upon receipt of evidence of disbursements from the Special Accounts for agreed expenditures. In the case of any disbursements made from the Special Accounts which prove to be unacceptable to the Bank, the Government will deposit a correspouiding amount in the Special Accounts. 3.47 During the six-year project implementation period, the Bank and IFAD loans will finance a progressively declining share of incremental operating costs. The recurrent costs which will be borne by the Government annually in suibseauent years are estimated at US$12.4 million equivalent in December 1983 prices, of which US$1.2 million equivalent will be recovered through income taxes on incremental staff salaries. Assurances were obtained that Government will provide adequate budgetary funds after the end of the six-year project implementation period to maintain in the project area the extension and applied research systems introduced under the project. G. Procurement 3.48 Goods. Vehicles, agricultural equipment and machinery and audio- visual and office equipment, totalling US$22.7 million equivalent including contingencies, will be grouped in appropriate bidding packages and procured by ICB in accordance with Bank Guidelines, with the exception of small items to be purchased in limited quantities and costing less than $10,000 each which will be procurea by local shopping with at least three price quotations for a maximum total amount of US$300,000. Laboratory equipment and seed stock for livestock investigations (US$1.9 million) will be procured under limited international bidding procedures. Since furniture (US$1.3 million) will be procured in several small packages as building construction is completed in scattered locations, this will be done by local shopping with at least three price quotations. 3.49 Civil Works. The contract for construction at the Middle Anatolia research institute, estimated to cost about US$3.7 million equivalent, will be awarded through ICB in accordance with the Bank's guidelines. Construction to be financed under the project at the five other research institutes and for the EIC and the TZ service, totalling about US$83.3 million equivalent, consists of small works scattered in various locations in rural areas which are not likely to interest foreign bidders. They will be procured through LCB procedures, which allow the participation of foreign bidders. Housing and office construction works for TZ will be packaged by county. Proposed contract packages are described in Annex 11, Cll; there will be about 200 packages of an average value of about US$400,000. 3.50 Local procurement procedures for building construction, while permitting procedures meeting Bank reauirements, also allow some pruccdures which are not acceptable to the Bank. Assurances were obtained during - 38 - negotiations that, for ouilding construction under the project, local bidding will be conducted under procedures acceptable to the Bank, with in particular pre- or post-qualifications of bidders on the basis of past performance, technical/management team, present workload, equipment and financial stability and no auction system after bid submission. Draft tender documents for the first contract to be awarded under the project are to be submitted to the Bank. During project supervision, a sample of the tender evaluations for civil works procured under LCB will be reviewed by the Bank to ensure that appropriately qualified contractors are being appointed. 3.51 Others. The overseas training program, of a total cost of US$13.7 million equivalent including contingencies, will be administered as indicated in para 3.40. Consultants (US$1.8 million) will be selected in accordance with Bank guidelines. The balance of project costs (US$77.3 million equivalent including contingencies) consists of some US$0.3 million for subscriptions to periodicals and books for research institutes and the EIC, which will be done by direct purchase from overseas suppliers, and of incremental operating costs (salaries, local training, vehicles O&M, building maintenance, etc.), for which procurement is inapplicable. A summlry of procurement arrangements is given in Table 3.3. 3.52 Contract Review by the Bank. All bidding packages for goods over US$200,000 equivalent will be subject to the Bank's prior review of procurement documentation. Since all goods to be procured under ICB are expected to be grouped in packages of at least this size, with the possible exception of equipment for the EIC, this will cover over 80% of the total value of all goods to be procured under the project. Other contracts for goods will be subject to selective post-award review by the Bank. For civil works, all bidding packages to be procured through ICB and LCB packages above US$750,000 will be subject to the Bank's prior review of procurement documentation. - 39 - TABLE 3.3: SUMMARY OF PROCUREMENT ARRANGEMENTSL/ (US$ million) Procurement Method ICB LCB Other NA Total Goujds: Total Cost 22.4 - 3,5 25.9 if which: IBRD funds 18.3 - 2.3 - 20.6 IFAD funds 2.0 - - - 2.0 Civil Works: Total Cost 3.7 83.3 - - 87.0 of which: IBRD funds 0.7 13.9 - - 14.6 IFAD funds - 2.8 - - 2.8 Overseas Training & Technical Assistance: Total Cost - - 15.5 - 15.5 of which: IBRD funds - - 13.7 - 13.7 IFAD funds - - 1.6 - 1.6 Others: Total Cost - - 0.3 77.0 77.3 Of which: IBRD funds - - 0.3 22.8 23.1 IFAD funds - - - 3.6 3.6 Total Cost 26.1 83.3 19.3 77.0 205.7 of which: IBRD funds 19.0 13.9 16.3 22.8 72.0 IFAD funds 2.0 2.8 1.6 3.6 10.0 /a Physical and price contingencies added to each category; table contains rounding errors. H. Disbursements 3.53 The proposed allocation of the Bank and IFAD loans against the disbursement categories is shown in Annex 2. Disbursements for the Bank and IFAD loans will be made on Lhe following basis: (a) 100% of the CIF cost of directly imported goods; (b) 100% of ex-factory costs of locally manufactured goods procured through ICB or LIB; (c) 20% of local expenditures for furniture and 80% for other goods procured through local shopping; (d) 20% of the cost of civil works contracts; - 40 - (e) 100% of foreign expenditures for foreign consultants and 90% of total expenditures for local consultants; (f) 100% of expenditures for overseas training; (g) a gradually decreasing percentage of incremental operating costs, from 50% of the total (including salaries) initially down to 10% at the end of the project implementation period. Disbursements for LCB civil works contracts below US$750,000, for goods procured through local shopping and for incremental operating costs, will be made against statements of expenditures (SOEs); supporting documentation will be retained by CDAA and will be made available for review by the Bank during supervision missions. Disbursements against all other items will be made against full documeritation. 3.54 The estimated semesterly schedule of disbursements of the Bank and IFAD loans is given in Annex 3. It is expected that the project will be completed on March 31, 1990, and the closing date of the Bank loan will be December 31, 1990. The disbursement profile for the proposed project has been compared with various agricultural sector profiles for IBRD loans to EMENA countries, FY70-80. These profiles show the following characteristics: No. of Year from Ddte of Approval Class Projects 50% Disbursed 90% Disbursed All Agricultural Projects 67 5th year, 1st half 8th year, 1st half Irrigation Subsector 31 5th year, 2nd half 8th year, 2nd half Rural Development Subsector 6 4th year, 2nd half 6th year, 2nd half Livestock Subsector 6 3rd year, 1st half 5th year, 1st half Under the proposed project, it is estimated that 50% of the loan will be disbursed during the 4th year, 1st half from the date of Board approval, which is due primarily to lar-ge front-end expenditures on vehicles and equipment. The proposed project is also expected to disburse more rapidly than previous agricultural projects in Turkey, because it supports an on-going effort within an existing structure and delays in setting up new project organizations will not arise. Furthermore, Turkey's historical disbursement profile includes periods of unusual political disruptions which are not expected to be repeated. I. Accounts and Audit 3.55 0DM will maintain separate accounts for the project and will prepare at the end of each semester a detailed statement of project expenditures during the period and submit such statement to the Bank within two months after the end of each semester. In addition, an annual audit will be carried out by the Ministry of Finance inspectors, including specific reference to, and comments on, SOEs and the supporting documents, and submitted to the Bank within nine months of the end of each fiscal year. Assurances to this effect were obtained during negotiations. - 41 - IV. PROJECT IMPLEMENTATION A. Organization and Management 4.01 The General Directorate of Agricultural Affairs (GDAA) of MAFRA will be the project implementing agency. Responsibility for execution tid management of project operations in the field will be devolved to the TZ staff at the provincial and county levels for extension and internal M&E, and to the six research institutes of GDAA strengthened under the project for the research component. As the project is mainly geared to supporting improvements in the operations and management of GDAA's extension and research services, description of organization and managenent aspects in thc field is included in the project description (Chapter III). 4.02 At the central level, a centrg. coordination committee (CCC) will be established under the chairmanship of the Undersecretary of MAFRA. The CCC will ensure, in particular, that under the project field staff from GDPPQ, CDVA, LDP and TOPRAKSU will provide training and participate as needed in extension and research work with TZ subject matter specialists and GDAA's researchers (paras 3.21, 3.30, 3.39). The General Director of Agricultural Affairs will chair a central executive committee (CEC), which will include his deputy directors in charge of extension and research/ and other staff as designated by the GDAA. This central executive committee will meet periodically to review progress under the project and will bring issues to the attention of the CCC as needed. When necessary, heads of other agencies providing complementary services (such as Gi'PPQ, TCZB, TZDK, etc.) would be invited by the CEC to attend its meetings. The Director General of Agricultural Affairs will designate one of his deputy directors to act as national coordinator for the project, with responsibility for successful implementation of all aspects of the project and day to day coordination on both technical and administrative matters. He will be assisted in this task by one senior staff assigned to work full-time on the project and by the central internal M&E group. GDAA's central Department of Extension will provide technical support for the field extension staff and ensure general supervision of their operations, and the Department of Research will play a similar role for the operations of the six research institutes under the project. Responsibility for external M&E will be devolved to the existing unit in the Department of Technical Cooperation and Coordination. GDAA's Department of Training will participate in the organization of in-service training, together with the concerned technical departments. The Department of Externally-financed Projects of GDAA will coordinate procurement, as is the case for other Bank-assisted projects such as the Corum-Cankiri Rural Development project and the Erzurum Rural Development project. A small project administration unit (PAU) will be established within this department, with at least one equipment procurement specialist and one architect-enginrer (para 4.06). The staff of the PAU will liaise closely with the central internal M&E group and the Department of Planning and Budget of GDAA for determining tihe annual budget allocations required for the project and keeping records of project expenditures. 1/ An organization chart of GDAA's central services is attached (W.B. 25526). - 42 - 4.03 For project purposes, appropriate interagency protocols will be signed between GDAA and the agricultural faculties at Ankara, Izmir and Adana to govern the use of university facilities, faculty and staff for the training component (para 3.39); and between GDAA and TURDOK, FRT and TRT for staff training and operations of the extension information center (paras 3.24, 3.39). An outline of these protocols is given in Annex 11, C3. Coordination with public agencies providing input supply (TZDK, YEM) or marketing services (e.g. TMO, TSEK) will be handled at the field level by the Provincial Director of Agriculture-/ and, if necessary, at the central level by the project's central coordination committee. The involvement of TZ field staff in farmers' sele.tion, farm plan preparation and technical supervision for agricultural credit provided by TCZB will be governed by the protocol signed between MAF and TCZB under the Bank-assisted Agricultural Credit II Project. 4.04 In order to foster improved coordination between extension and research services on a regional basis, a regional coordination committee will be established in each of the four agro-ecological zones under the project. These committees will consist of the directors of the relevant research institute(s) and the TZ directors and provincial directors of agriculture of the concerned provinces. Regional meetings will be held twice a year in each of the agro-ecological zones of the project area, usually at the main research institute responsible for the corresponding agro-ecological zone. Problems of mutual interest to extension staff and researchers will be discussed at these meetings, which will also provide an opportunity for bringing together the IZ directors and provincial directors of agriculture of the various provinces of a given agro-ecological zone. For indicative planning purpose, one of these biannual meetings could be policy-oriented and would involve only the provin- cial TZ directors and the research institute's director, while the other meeting would be more technical and would have a larger attendance of SMSs and researchers. At the second regional meetings in each year, specific research and extension programs for the forthcoming year will be discussed and agreed upon. These will be reviewed and a final decision made in an annual general meetina at the central level held at the end of each year under the chairman- ship of the General Director of Agricultural Affairs and with the participation of the 16 provincial TZ directors and the 6 research institute directors, together with other staff as requested by CDAA. B. Civil Works 4.05 According to government regulations, the civil works program will be carried out under the aegis of the Ministry of Public Works and Resettlement (MPWR). Large construction projects such as the Middle Anatolia, Eskisehir and Grassland and Animal Husbandry research institutes and, possibly, the Extension Information Center, will be let out by MPWR to private architectural firms through competitive tendering by prequalified firms; in accordance with 1/ Since 1982, a provincial director of agriculture has been designated in each province, among either the provincial director of TZ, the provincial director of veterinary services or the provincial director of forestry, with responsibility for coordinating all agricultural services on behalf of the provincial governor. - 43 - the current regulation of MPWR, the appointed firm will take full professional responsibility for architectural and engineering work and assist MPWR in administration of the tendering and site supervision during the construction period. For all other buildings, GDAA will be responsible for identifying and acquiring the sites, while the architectural and engineering work (including the preparation of site plans and adaptation drawings) will be done by MPWR, which will also administer the tendering for contracting construction to the private sector and carry out site supervision. Confirmation was obtained from Government that an adequate cadre of architect-engineers with vehicles will be available in MPWR for site supervision of the civil works program in the various provinces. 4.06 in view of the magnitude and complexity of the civil works program, GDAA has assigned an architect-engineer to deal full-time with this component. During project implementation, he will be assigned to the PAU to administer and coordinate civil works construction. During the design phase, he will be specifically responsible for dealing with architects in NPWR and in the private sector on behalf of GDAA. He will supervise the bidding procedures, and in the construction phase will monitor progress and participate with staff of MPWR in site supervision. He will also prepare cash flow forecasts for construction contracts to ensure that adequate government funding is available. Terms of reference for this architect-engineer are provided in Annex 11, Cll. 4.07 Status of Designs and Land Acquisition. Standard drawings already exist for the various types of housing and office buildings to be constructed for the TZ extension service, and preliminary drawings have been prepared for some of the research buildings included in the project. The Governmentt has decided that the Extension Information Center would be located on the site of the Grassland and Animal Husbandry research institute in Ankara. Site acquisition and zoning approval have been completed for most of the extension buildings included in the first year construction program, and are underway for the remainder. C. Implementation Schedule 4.08 The implementation schedule for the various components is given in Chart W.B. 25527. Based on experience under previous projects, it is expected that the construction of houses and offices for TZ will be completed by the fourth year of project implementation, while the construction of large facili- ties at the research institutes and EIC will be completed by the fifth year. Incremental staff recruitment will be carried out during the first three years of project implementation, so that all I'VTs can be posted in villages by the end of the fourth year of project implementation after pre-service training. Procurement of vehicles and equipment will be consonant with the availability of staff for the project. The total project implementation period will thus extend over six years so as to provide financial and technical support to the operations of the reorganized extension service for 1-2 years after it reaches its full strength. A number of factors are expected to contribute to timely implementation of the proposed project, despite its relatively large size and the delays encountered in implementation of some previous agricultural projects in Turkey. The proposed project organization is fully consistent - 44 - with the existing government structure, and the project will be implemented by a single agency (GDAA), thus avoiding the delays in setting up special project units and in achieving coordination between different agencxes which have largely contributed to slow implementation under previous projects. The government is strongly committed to the proposed project, which will support efforts which are already underway at Government's own initiative. Lastly, project preparation has been carried out by the implementing agency (GDAA) in close collaboration with the Bank. 4.09 Project implementation may proceed faster than indicated in the above implementation schedule, depending on the degree of priority which will be given to this particular project by Government. GDAA indicated to the appraisal mission its intention to complete the village housing construction program in 2-3 years, which could be feasible provided land acquisition and contract adjudication are expedited by both GDAA and MPWR. Furthermore, the deployment of technicians in the villages would be accelerated in cases where temporary housing is available. Following appraisal, GDAA conducted a detailed field survey of the project area during which village group centers to be staffed with a VGT have been identified on the basis of agreed indicative staff densities (para 3.15) and of criteria such as distances between villages, availability of transportation and other facilities, characteristics of surrounding villages to be served by the VGT, etc. During negotiations, agreement was obtained that for each year of project implementation aui annual work program will be prepared and submitted to the Bank for comment not later than September 15 prior to final budget approval for the forthcoming fiscal year. These annual work programs, for which an outline is given in Annex 4, will constitute the basis for a revised annual implementation schedule. They will also serve as an instrument for the Government to take all necessary action to ensure adequate supply of inputs and credit to support the operations of the extension service in the project area. The annual work programs will contain details on staff deployment, proctrement and civil works construction planned for the forthcoming year, together with an annual updated financing plan indicating, both for invest- ments and operating expenditures, the required budget allocations for the various components of the project including revised schedules accounting for physical and price changes. The format of the annual budget requests from the TZ field offices will be modified in accordance with the new organization of TZ's operations under the project and will form the basis of the annual work program for the whole project, which will be prepared by the PAU with assistance from the internal M&E group. 4.10 Since the project is aimed mainly at promoting conceptual changes and strengthening institutional arrangements that are already uniderway, it will be initiated simultaneously in all 16 provinces. Priority will be given to fully staffing the SMS teams in the early years, while the strength of VGTs in the villages will be built up as rapidly as possible according to housing availability. Incremental staff recruitment for the research institutes will give priority to staffing the S3ltheast Anatolia and Grassland and Animal liusbandry research institutes. The output of agricultural engineers and - 45 - technicians from the training instituitions, together with the. availability of past graduates on the job market is sufficient to ensure that staff avail- ability wilL not be a constraint for implementation of this project. Inx view of Government's intent to ultimately reorganize and strengthen the TZ service nationwide through a series of projects similar to this first one, CDAA's program for increasing enrollment in agricultural high schools in order to meet the projected medium-term needs for incremental staff will be reviewed as part of the work of the working groups on research and extension which are supported under the project (para 3.42). 4.11 At the central level, the first year of project implementation will be largely devoted to completing administrative arrangements and preparing the orientation program for field staff. During negotiations, assurance was obta..ned that revised job descriptions for all TZ staff in the project area and for selected MAFRA research staff will be issued before September 30, 1984, in accordance with agreed extension operational methods and organizational structure (described in Chapter III). Agreement was also reached on a tinetable for recruitment of consultants. In particular, the long-term extension and internal N&E consultants would be recruited by mid-1984 so as to provide timely assistance in reorganizing the extension service and organizing the orientation training for field staff, and in setting up the management information component of the M1&E system before operations start in the field. In the field, regular workshops for SMSs in collaboration with research will start during the first year of project implementation, and the selection of contact farmers and regular visits by VG?s will be initiated with the personnel already in position at that time. The first year of field operations will be largely devoted to a joint diagnosis by research and extension staff of the main constraints to increased productivity faced by various categories of farmers so as to determine the most relevant types of technology to be emphasized. Phasing of operations in regard to the technical content of the extension program wilL concentrate initially on a few selected cropslprograms which concern a majority of the farmers and for which research findings are available which can be of financial benefit for the farmers. This progressive strategy will ensure a gradual build-up of technical competence at various levels, and by ensuring quick results, of credibility of the extension service in the eyes of the farmers. Later, as information flows from farmers to extension and research institutes, the proposed technology packages will be refined, changed and expanded over time to cover other aspects of the farmer's operations. D. Project Supervision and Progress Reporting 4.12 This project is a complex and far-reaching one, which aims at laying sound foundations for a nationwide reorganization of the exihting extension and research services. Because of this, as well as of the large geographical coverage of the project and the flexibility which has to be built in its design to allow for needed adjustments over the six-year period, above average supervision coefficients will have to be allocated to this project by the Bank and IFAD in order to continue the dialogue which has been initiated during project preparation and appraisal and effectively contribute to institution building. - 46 - 4.13 In view of the complexity of organizational arrangements for operation of this project and the new concepts that they reflect as well of its intended future expansion nationwide, a mnid-term review will be undertaken during the third year of implementa.:ion with the broad objectives outlined in Annex 11, C5. This review will be conducted jointly by Government, the Bank and IFAD according to terms of reference that will be drawn up by Government and which shall be approved by the Bank before the end of the second year of project implementation. This mid-term review will allow to effect any changes in policy which may be required under this project and will contribute to improving the design of repeater projects. As staff build-up will proceed at a different pace in various counties of the project area, the effectiveness of different staffing ratios will be assessed at the mid-termn review. The M&E units associated with the project will have an active role in assembling and assimilating data for consideration at the time of mid-term review. 4.14 GDAA will submit to the Bank semiannual progress reports which will contain an assessment of technical and financial aspects during the past six months, including details on extension activities Eor specific crop and animal husbandry aspects in the various provinces and counties of the project area, and cn specific research programs carried out by each research institute to serve the needs of the extension service. These reports will be prepared by staff from the internal n4&E group with assistance from the PAU according to a format to be agreed upon with the Bank and will be forwarded to the Bank within two months from the end of each six-month period. Towards the close of the project period, the Government will prepare and submit to the Bank within six months of the loan closing date a project completion report summarizing performance under the project and evaluating its successes and problems. V. BENEFITS, JUSTIFICATION AND RISKS A. Benefits and Justification 5.01 The total investment cost of the project, excluding incremental operating costs, taxes and price contingencies, is estimated at US$11Z.8 million equivalent in December 1983 terms, which is about US$9.6 per hectare of cultivated land or US$94.0 per farm family in the project area. Incremental operating costs at full development, which will be met by the Government's recurrent budget, are estimated at US$11.2 million annually excluding taxes, or US$9.4 per farm family in December 1983 prices. Some of this cost will be recovered ind)'reculy through sales taxes on incremental production sold by the farmerslk and resulting from the intensification of agriculture to be promoted by the extension service. 5.02 The technology packages to be recornaended by the extension service for use by the farmers in the project area, as well as the yield and produc- tion increases to be expected from their application will vary according to crop, agro-ecological zone, county and the level of the farmers; they will be 1/ Since 1981, a 5/ tax is levied by Government on sales of agricultural products by the farmers. - 47 - further refined during project implemenitation as applied research progresses and increasingly takes into account on-farm conditions and constraints. Because of this, ard because adoption rates for various recommended practices would be difficult to assess, no attempt has been made to quantify the benefits expected from the project. Such benefits expressed in terms of production increases would be due to other factors besides extension, such as additional purchased inputs, increased farm labor, investments in complemen- tary infrastructure, etc., with extension playing the role of a catalyst. For these reasons, a project of the type proposed here does not lend itself to traditional economic analysis and estimate of an economic rate of return (ERR). An indicative calculation can, however, be made, which shows that even a very small and slow increase in productivity as a result of the nroject would be sufficient to generate an ERR of 20%, and hence that the proposed investments in extension and applied research appear to be economically justified. The net present value in economic terms!' of the project cost-stream (6-year project implementation period and recurrent costs thereafter), calculated at a 20% discount rate and assui,iing a project life of 30 years, is equivalent to TL 29,928 million in December 1983 prices. Assuming that full benefit would be reached in year 7, and that the build-up would be 0% in year 1, 10% in year 2, 30% in year 3, 60% in year 4, 80% in year 5 and 90% in year 6, the project's full benefit would have to amount to TL 10,654 million annually (in December 1983 prices) in order to achieve an ERR of 20%. This corresponds to TL 1,300 per hectare cropped (8.2 million ha in the project area excluding fallow). With an economic farmgate price for wheat, which is the major crop of the project area, of TL 35 per kg, this would correspond to an increase in wheat yield of 37 kg per hectare or only 2% above the current average wheat yield of about 1800 kg/ha in Turkey. This calculation is purely indicative, since it does not take into account incremental on-farm costs and concerns only the hypothetical benefits which would be derived solely from the proposed reorganization and strengthening of the extension service. 5.03 Besides its contribution to improving agricultural incomes, production and exports in the project area, this project will contribute to institution-building of GDAA, the country's largest agency for agricultural extension and research. Through its M&E component in particular, it will permit further testing and refinement of extension methods to be ultimately extended to the whole country. B. Project Risks 5.04 The project involves the reorganization of a major activity of the Ministry of Agriculture, providing extension services. It will introduce new methods of providing extension advice and managing extension staff which will probably take some years to be fully accepted. While the project supports ongoing efforts in MAFRA and GDAA, and has already been advertised and has generated a great deal of enthusiasm in the concerned provinces and among extension workers, there is a clear risk that the initial momentum may diminish and the proposed improvements in the delivery of extension services may not be fully adopted and permanently institutionalized. In particular, a change in project management in GDAA might affect project implementation. A 1/ Using a standard conversion factor of 0.8 for local costs. - 48 - second risk relates Lo the superiority of the knowledge of the extension workers above what is known by the farmers, and the continuous availability of further research findings on which to base extension recommendations after the initial stages of project implementation. The applied research and training components of the project are designed to minimize this risk; the Government is considering further imnprovemnents in its agricultural research capabilities, and further 3ank assistance in this field may be considered in the future. 5.05 Another set of risks relates to physical implementation of the project. Past experience with other agricultural projects in Turkey shows that building construction often progresses very slowly, as a result of delays in land acquisition and poor selection of contractors; provisions are made in this project to ensure that LCB procedures will be adequately adjusted (para 3.50). One risk which other Bank-assisted projects in Turkey have faced in recent years would be an inadequate local budgetary support which, as shown by expetience, would affect first and foremost the provision of funds for operating costs. This would result in particular in a lack of mobility of the extension staff preventing it from carrying out its duties. To minimize this risk, the project includes funds for incremental operating costs, of which a decreasing percentage will be financed by the Bank and IFAD during the six--year project implementation period. VI. AGREEMENTS AND RECOMMENDATIONS 6.01 Conditions of effectiveness for the Bank loan would be: (a) effectiveness of the proposed IFAD loan of US$UO million; (b) establishment of the working groups on research and extension (para 3.42); (c) opening of the Special Accounts (para 3.46); (d) establishment of the Project Administraticn Unit and Central, Executive and Regional Coordination Cornmittees and designation of the Project Coordinator (paras 4.02 and 4.04); and (e) signing of protocols between GDAA and other agencies (para 4.03). 6.02 During negotiations, assurances have been obtained from the Government that it would: (a) take all measures necessary to ensure availability of adequate agricultural inputs and credit in the project area (paras 3.05, 3.45); (b) employ an international agency for administering overseas training (para 3.40) and consultants (paras 3.41-3.42) in accordance with an agreed timetable; - 49 - (c) provide adequate budgetary funds after project completion for maintenance in the project area of the extension and research systems introduced under the project (para 3.47); (d) submit not later than September 15 each year for review by the Bank an annual work program and proposed budget allocations (para 4.09); (e) recruit adeauate project staff in accordance with an agreed schedule and issue revised job descriptions for project area staff by September 30, 1984 (para 4.11); (f) undertake a mid-term review of project implementation (para 4.13); and (g) discuss with the Bank the recommendations of the working groups on agricultural extension and research (para 6.01(e). 6.03 On the basis of the above assurances and agreements, the project is suitable foi a Bank loan of US$72.2 million to the Government of Turkey. - 50 - ANNEX I Toi)le I TURK;EY AGRICULTURAL EXTENSION AND APPLIED RESEARCH PROJECT Summari Account bo Tiee bise Costs Total Base Costs + Price Incl. (TL Million) Foreisn Exchange Colt, on Cont, - Base Costs (US$ PYI PY2 PY3 PY4 PY5 PY6 Total 2 Aeount (USt Million) Million) 1. INVESTMENT COSTS A. CIVIL WORKS 4t295.8 5,744.1 5,633.3 2,742.6 151.0 - 18,566.8 20.0 3.705.4 79.1 87.0 B. VEHICLES 2,598.3 1.459.2 545.1 - - - 4,602.5 90.9 4,184.1 18,6 18.6 C. FURNITURE & EiUIPHENT 1. FURNITURE 61,6 103,4 96.3 44.4 5.3 - 310.9 20,0 62.2 '.3 1.3 2. AUDIOVISUAL AND OFFICE EQUIPMENT 119.3 346.4 3.1 3.1 3.1 - 475.1 91.4 434.3 j,9 1.9 3. AGRICULTURAL EOUIPHENT 344.3 294.6 0.6 - - - 639.4 90.9 581.3 2.6 2.6 4. LABORATORY EOUIPMENT 229.8 223.9 - - - 453.6 90.9 412.4 1.8 i.B Sub-Total FURNITURE A EQUIPMENT 755.0 968.3 100.0 47.5 8.5 - 1,879.2 79.3 i,490.1 7.7 7.7 D. TRAININO 169.8 714.4 999.0 914.8 306.0 - 3,104.0 98.7 3,063.0 13.9 13.9 E. TECHNICAL ASSISTANCE 142.5 171.8 90.0 23.1 7.9 - 435.1 90.0 391.6 1.8 1.8 Total INVESTMENT COSTS 7,961.4 9,057.6 7,367.3 3,727.9 473.3 - 28,587.6 44.9 12.834.2 121.0 128.9 II. RECURRENT COSTS A. INCR. SALARIES AND ALLOWANCES 1. INCR STAFF SALARIES 591.4 1,170.5 1,539.4 1,539.4 1,53S.4 1,539.4 7,919.4 0.0 0.0 36.9 36.9 2. IHCR. TRAVEL ALLOWANCES 76.4 142.7 172.2 172.2 172.2 172.2 908.0 0.0 0,0 4.2 4.2 Sub-Total INCR. SALARIES AND ALLOWANCES 667.8 1,313.2 1,711.6 1,711.6 1,711.6 19711.6 8,827.4 0.0 0.0 41.2 41.2 0. INCR. VEHICLES 0U1 110.4 526,4 741.0 818.4 818.4 818,4 3,833.1 87.8 39364.3 18.1 18.1 C. INCR. BUILDING NAINT. - 43.0 100.4 156.7 184.2 185.7 669.7 20.0 134.0 3,2 3.6 D. REFRESHER TRO 6.5 16.9 19.4 8.0 8.0 8.0 66.9 0.0 0.0 0,3 0.3 E. OTHER INCR. OPERATING COSTS 155. 376.6 529.3 599.8 623.1 622.7 2,907.3 72.9 2,118.3 13.7 13.7 Total RECURRENT COSTS 940,4 2,276.2 3,101.7 3,294.6 39345.3 3.346.5 16,304.7 34.4 St616.6 76.5 76.8 Total BASELINE COSTS 8.901.8 1l333.8 10,469.0 7,022.5 3.818,6 3,346.5 44,892.3 41.1 18,450.8 197.5 205.7 Phssical CDntingenries 429.6 578.7 573.4 289.9 33.5 18.6 1,923.7 20.0 383.9 - - 'rice Contingencies 453,2 1,457o9 2,140.0 1.940.9 1t314.9 1.419.5 8,726.4 38.4 3.349.8 Total PC..JECT COSTS 9.784.6 13,370.4 13,182.4 9,253.4 5,167.1 4.784.5 559542.3 39.9 22,184.6 197.5 205.7 Taxes 133.7 283.2 399.4 423,3 448.7 475.6 2,164,0 0,0 0.0 - 8.0 Foreign Exchange 4,661.9 5r610.5 4,634.9 3.462.1 2,092.7 19722.5 22,184.6 0.0 0.0 - 82.2 tarch 5, 1984 17:34 - 51 - ANNEX 1 Table 2 TURKEY AGRICULTURAL EXTENSION AND APPLIED RESEARCH PROJECT Susmary Account bv Time Totals Including Contingencies (TL Million) ---------------------------------------------------------- PYl PY2 PY3 PY4 PY5 PY6 Total I. INVESTMIENT COSTS __ _ ______ _ __ A. CIVIL WORKS 4,954.9 7,091,7 7t397.5 3,817.6 222.8 - 23,484.5 B. VEHICLES 20724.5 1,637.7 650.7 - - - 5,012.? C. FURNITURE I EQUIPHEiT 1. FURNITURE 64.6 116.0 114.9 56.1 7.1 - 358.8 2. AUDIOVISUAL AND OFFICE EQUIPMENT 125.1 388.8 3,7 4.0 4.2 - 525.8 3. AGRICULTURAL EQUIPMENT 361.0 330.6 0.7 - - - 692.3 4. LABORATORY EQUIPMENT 240.9 251.3 - - - - 492.2 Sub-Total FURNITURE S EQUIPNENT 791.6 1,086.7 119,4 60.1 11.3 - 2,069.2 D. TRAINING 178.1 801.8 1,192.6 1Y157.6 410.5 - 3,740.6 E. TECHNICAL ASSISTANCE 149.4 192.8 107.4 29,2 10.6 - 489.3 Total INVESTMENT COSTS 89798.5 10,810.8 99467,6 5,064,5 655.2 34,796.5 II. RECURRENT COSTS _______________ A. INCR. SALARIES AND ALLOWANCES 1. INCR STAFF SALARIES 620.1 1,313.8 1,837.7 1,948.0 2,064.8 2,188.7 9,973.1 2. INCR. TRAVEL ALLOWANCES 80,1 160.1 205.6 217.9 231.0 244.9 19139.7 Sub-Total INCR. SALARIES AND ALLOWANCES 700.2 1,473.9 2,043.3 2,165,9 2,295.9 2,433,6 11,112.8 B. INCR. VEHICLE8 0511 115,8 590.8 884.6 19035.7 1,097.8 19163.7 4v888.3 Co INCR, BUILDING MAINT, - 53.0 131.E 218,2 271.7 290.4 965.2 D. REFRESHER TRG 6.8 19.0 23.1 10.2 10.8 11.4 81.3 E. OTHER INCR. OPERATING COSTS 163.4 422.7 631.9 759.0 835.7 885.4 3,698.1 Total RECURRENT COSTS 986.1 2,559#6 3,714.8 4,188.9 4,511.9 4,784.5 20,745.8 Total PROJECT COSTS 9784.6 139370.4 13,182o4 9t253.4 5,167.1 49784*5 55,542.3 Harch 5 1984 17:35 ANNEX 1 - 52 - Table 3 TURKEY AGRICULTURAL EXTENSION AND APPLIED RESEARCH PROJECT ProJect Component bv Tine (TL Million) Total Bsse Costs ---------------- ------------------------------------------------- (USS PYl PY2 PY3 PY4 PY5 PY6 TL Million) A. EXTENSION SERVICE ______ _ ____ _ _ 1. BUILD, YEE t EQUIP (INY.) 6,441.1 69570.2 5,726.2 2,590.6 - - 21,328.0 79.0 2. INCR STAFF I OPER COSTS 731.0 1786.3 2,481.3 2,668.7 2,713.9 20713.9 13,095.2 48.5 Sub-Total EXTENSION SERVICE 7,172.1 8,356,4 8,207.5 5,259,3 2,713.9 2,713.9 34,423.2 127.5 B. EXTENSION INFORMATION CENTER 1. BUILD, VEH I EQUIP (INV.) 38,0 236,9 33.3 - - - 308.1 1.1 2. INCR STAFF I OPER COSTS 66.8 152.9 158.1 159.1 159,1 159.1 855.1 3.2 Sub-Total EXTENSION INFORMATION CENTER 104.8 389.8 191.4 159.1 159.1 159.1 1,163.2 4.3 C. APPLIED RESEARCH 1. BUILD, VEH & EQUIP (INV.) 1,099.0 1,356.6 518.9 199.5 159.5 - 3.333.5 12,3 2. INCR STAFF g OPER COSTS 105.3 281.4 403.2 418.2 423.7 426.7 2,058.6 7.6 Sub-Total APPLIED RESEARCH 1,204.4 1,638.0 922.2 617.7 583.1 426.7 5.392.1 20.0 B. PROJECT MANAGEMENT AND HIE __________ __ _ _ _ ____ _ 1, MONITORING AND EVALUATION 79.6 44.4 37.5 38.5 38.5 36.6 275.1 1t0 2. PROJECT MANAGEMENT 22,2 2.1 2.1 2,1 2.1 2.1 32.6 0.1 Sub-Total PROJECT MANAGEMENT AND t&E 101.8 46,5 39.6 40.6 40.6 38.7 307.6 1.1 E. TRAINING 1, IN-SERVICE 32,5 24.8 26.1 8.3 8.3 8.0 108.0 0.4 2. OVERSEAS 143.8 706,5 992.3 914.6 305,8 - 3,063.0 11.3 Sub-Total TRAINING 176.3 731.3 1,018.4 922.8 314.0 8.0 3,171.0 11.7 F. TECHNICAL ASSISTANCE 142.5 171.8 90.0 23.1 7.9 - 435.1 1.6 Total BASELINE COSTS 8,901.8 11,333.8 10,469.0 7,022.5 3,818.6 3,346,5 44,892.3 166.3 Physical Contingencies 429.6 578.7 573.4 289,9 33.5 18.6 1,923.7 7.1 Price Contingencies 453.2 1,457.9 2,140.0 1,940,9 1,314.9 1,419.5 8,726.4 32.3 Total PROJECT COSTS 9,784.6 13,370,4 13,182.4 9,253.4 59167.1 4,784.5 55,542.3 205.7 Taxes 133.7 283.2 399.4 423.3 448.7 475.6 2,164.0 8.0 Foreign Exchange 4,661.9 5,610.5 4,634,9 3,462.1 2,092.7 1,722,5 22,184.6 82.2 March 5. 1984 17:36 - 53 - ,i4N Ix 1 Tabie 4 TURKEY AGRICULTURAL EXTENSION AND APPLIED RESEARCH PROJECT Project Component bg Tise (TL Million) Total Totals Including Contingencies --- ----- ---- ----- ---- ----- - -- ----- ---- ---- (US$ PYl PY2 PY3 PY4 PYS PY6 TL Million) A. EXTENSION SERVICE _ _ _ _ _ _ _ _ _ 1. BUILD, VEN I EQUIP (INV.) 7,2DO.2 7,947.5 7,445.6 3P601.3 - - 26,194.5 97.0 2. INCR STAFF I OPER COSTS 766.5 2,009.6 2y973.4 3,395.4 3,463.2 3,883.0 16,691.1 61.8 Sub-Total EXTENSION SERVICE 7,966.7 9,957.1 10.419,0 6,996.7 3,663.2 3,883,0 42P885,6 158.8 B. EXTENSION INFORMATION CENTER Is BUILD. VEH I EQUIP (INV.) 40,2 276,2 43.4 - - - 359.7 1.3 2. INCR STAFF I OPER COSTS 70,1 171.7 188,9 201.5 213.6 226.4 1,072.0 4,0 Sub-Total EXTENSION INFORNATION CENTER 110.3 447.8 232.3 201.5 213.6 224.4 1,431.7 5.3 C. APPLIED RESEARCH 1. BUILD, VEH I EQUIP (INV.) 1,156.2 1,583.8 678.6 276.4 234.1 - 3,929.1 14.6 2. INCR STAFF & OPER COSTS 110.5 315,8 482,1 530.5 570.0 608.8 2,617.7 9.7 Sub-Total APPLIED RESEARCH 1,266,6 1,899.6 1,160.7 806.9 804.2 608.8 6,546.9 24.2 D. PROJECT MANA6EMENT AND MIE 1. HONITCRING AND EVALUATION 83.5 49,8 44.8 48.7 51.6 52.0 330,4 . 2 2. PROJECT MANAGEMENT 23.3 2.3 2.5 2.6 2,8 3.0 36.5 0.1 Sub-Total PROJECT MANAGEMENT AND N&E 106.7 52.2 47,3 51.3 54,4 55.0 366.9 1.4 E. TRAINING 1, IN-SERVICE 34.1 27,8 31,1 10.5 11,1 11,4 126,1 0.5 2. OVERSEAS 150.8 793.0 1,184.7 1,157.3 410,1 - 3,695.9 13.7 Sub-Total TRAINiNG 184.9 820.9 1,215.8 1,1678 421,2 11.4 3t821*9 14.2 F. TECHNICAL ASSISTANCE 149.4 192.8 107.4 29.2 10.6 - 489.3 1.8 Total PROJECT COSTS 9,784.6 13,370.4 13,182,4 9,253.4 5,167,1 4,784.5 55.542#3 205.7 Harch S, 1984 17:36 TUCEY AGRICULTURAL EXTENSION AND APPLIED RESEACH PROJECT Sumsary Account bY Project Coaponent iT' Killion) EXTENSIUN INF5R MTIOK PROJECT MANAGENENT AND CENTER APLIED RESEARCEH IE EXTENSION SERVICE ------ - Ph9sical ----------------- WBUILD, YEN INCR STAFF WiLD. uEH 80CR STAFF WNITORIN6 TRAINING ContigemCies NUILD. IEM t INCR STAFF I I E0IP 1 OPER S EQUIP S OPER AND PROJECT ------------------ TECHIiICh ------------ EGJIP (IWN.) [PER COSTS (lNV.) COSTS (INV.) COSTS EVALUATION ,ANaOEtfENT IN-SERVICE OVERSEAS ASSISTANCE Total I Mount 1, lNVEStNENt COSTS A. CIVIL WS 17423.? - 126.5 - Ir416.4 - - - - - - 189566.9 10.0 1B56.7 B. EIUCES 3,496.0 - 25.9 - 11063,6 - 0.5 8.5 - - - 4v602.5 0.0 0.0 C. FURNITIE I EGUIPI
Группа Всемирного банка · Staff Appraisal Report
Turkey - Agricultural Extension and Applied Research Project
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