Rwanda - Agricultural Research Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 5181-Ri STAFF APPRAISAL REPORT RWANDA AGRICULTURAL RESEARCH PROJECT January 10, 1985 Central Agriculture Eastern and Southern Africa Projects This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit Franc Rwandais (RP) US S1.00 = RF 97.00 RF 100 = US $1.03 WEIGHTS AND MEASURES Metric British/US Equivalents 1 meter (m) = 3.3 feet 1 hectare (ha) 2.47 acres 1 are (100 m2) = 0.02 acre 1 kilometer S1oM) 0.62 mile 1 are (100 a ) - 0.01 hectare 1 square kilometer (km2) 0.39 square miles (sq. mi.) 1 kilogram (kg) = 2.2 pounds (lb) 1 liter (1) 0.26 US gallons (gal) 1 metric ton (a ton) 2,204 pounds (lb) GLOSSARY AND ABBREVIATIONS CERAI - Centres d'Enseignement Rural et Artisanal IntEgri CGIAR - Consultative Group for International Agricultural Research CIAT - International Center for Tropical Agriculture CIMMYT - International Maize and Wheat Improvement Center CIP - International Potato Center EA - Executive Architects EDF/FED - European Development Fund/Fonds Europgen de D4veloppement FAC - Fonds d'Aide et de Coop6ration FAO - Food and Agriculture Organization (United Nations) FSIP - Farming Systems Improvement Project FSR - Farming Systems Research GERDAT - Groupement d'Etudes et de Recherche pour le Developpement de I'Agronomie Tropicale GOR - Government of Rwanda GTZ - German bilateral aid agency IARCs - International Agricultural Research Centers ICRAF - International Council for Research in Agro-forestry IDRC - International Development Research Center IFAD - International Fund for Agricultural Development IFCC - Institut Francais du Cafe et du Cacao IITA - International Institute for Tropical Agriculture ILCA - International Livestock Center for Africa INEAC - Institut National pour l'Etude Agronomique du Congo Belge ISAR - Institut des Sciences Agronomiques du Rwanda /Agricultural Research Institute of Rwanda ISNAR - International Service for National Agricultural Research MINAGRI - Ministry of Agriculture, Livestock and Forestry OFR/FSP - On-farm research with a farming systems perspective PNAP - Programme National pour l'Amglioration de la Ponme de Terre PAK - Projet Agricole de Kibuye PPF - (1) Project Preparation Facility (Advance) (2) Pilot Forestry Project SSS - Selected Seed Service UNR - National University of Rwanda USAID - United States Agency for International Development FISCAL YEAR Government - January 1 to December 31 ISAR - January 1 to December 31  FOR OMCIAL USE ONLY (i) RWANDA AGRICULTURAL RESEARCH PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. Tables of Contents . . .......................... (i) to (iii) Credit and Project Summary ............... . . .... (iv) to (v) I. BACKGROUND ....................................... 1 A. Project Background .... 0........... se ................ 1 B. The Rural Sector .....................2 2 C. Sector Issues and Strategy ................. 4 D. Agricultural Research and Related Services ......... 6 II. THE PROJECT ............................................ 7 A. The Proposed National Agricultural Research Strategy 7 Master Plan for Agricultural Research .... ....... 8 B. Summary Project Description .............. 9 C. Detailed Features ...... ............................ 12 Crop Research Programs .. ........................ 12 Farming Systems Research (FSR) Programs ......... 15 Livestock Research Programs ..................... 16 Forestry and Agro-forestry Research Programs 18 Strengthening ISAR's Headquarters ............... 18 Staffing ................................................... 20 Training ............. ............ ..... .................... 22 Visiting Scientists ..... * ..... ... . . . .......... ..... . 22 Agricultural Research Mascer Plan Preparation ... 22 Support for the Agronomic Faculty and Geographic Department of the University of Rwanda (UNR) . 23 Th7s report is based on findings of an IDA mission which visited Rwanda in April 1984 comprising Messrs. Jan Weijenberg, Michel Imbert and Abdul Haji (Bank), Mr. Rudolf Contant (ISNAR) and Mr. Guido Grysseels (ILCA). This docunent has a restricted distribution and may be used by recipients only in the performance of their official duties Its contents may not otherwise be discbsed without World Bank authorization.  (ii ) Page No. On-farm Experimentation ... 23 Research Station Development and Civil Works .... 23 Vehicles and Equipment .......................... 24 Cartography . ......................... 24 III. PROJECT COSTS AND FINANCING ..... ....................... 25 A. Cost Estimates ..................................... 25 B. Proposed Financing ..................... 28 C. Financial Implications and Budget Procedures and Reviews . ............................ 29 D. Procurement and Disbursement ....................... 30 E. Accounting Procedures .............................. 32 IV. ORGANIZATION AND MANAGEMENT .................. ... . 34 A. General Management * *............... ... .-- 34 B. Research Management ....................a... 36 C. Internal and External Research Program Review ...... 37 D. Station Management ...... ........................... 37 E. Reporting * ..... e, .... , * 38 F. Research Master Plan Preparation .............. 39 G. Research-Extension Liaison ......................... 40 R. Civil Works .............. .......... ................. 40 I. J.mplementatetn Schedule ....... 41 V. BENEFITS AND JUSTIFICATION ..... ........................ 41 VI. AGREEMENTS REACHED WITH THE BORROWER, CONDITIONS AND RECOMMTNDATIONS ............................. 44 TABLES IN MAIN TEXT Table 2.1: Research Staff Requirements ...* .............. 21 Table 2.2: Civil Works and Equipment Requirements ... ...... 25 Table 3.1: Summary Project Costs .......................... 27 Table 3.2: Proposed Project Financing .............. o...... 28 Table 3.3: Procurement Procedures . ........................ 31  (iii, Page No. SUPPORTING ANNEXES, TABLES, CHARTS AND MAP Annexes and Tables: Annex 1 - Sector and Sub-sector Background ........ 48 I. AGRICULTURAL PRODUCTION TRENDS .......... 48 Table 1: Trends in Food Crop Production, Acreage and Yields ......... 49 Table 2: Export Crops - Production, Acreage and Yields ......... 50 Table 3: Trends in Real Producer Prices for Export Crops ........... 51 Table 4: Trends in Livestock Production 51 II. STRUCTURE AND CURRENT STATUS OF AGRICULTURAL RESEARCH . ................ 52 III. CURRENT STATUS OF AGRICULTURAL EDUCATION, EXTENSION AND SEED PRODUCTION ........ 56 Annex 2 - Crop Research Program Descriptions ... eo.oo .... 60 Annex 3 - Responsibilities and Qualifications of Key Personnel * . ......................... ...... 62 Annex 4 - Outline of Duties of the Executive Architects . 75 Annex 5 - Training Scholarships ...... o ................* 77 Annex 6 - Table 1 - ISAR's Balance Sheet ............. . 78 Table 2 - ISAR's Income and Expenditure ASccount ................ ............................. 79 Annex 7 - Table 1 - Project Expenditures by Category in Constant Prices ................ 80 Table 2 - Project Expenditures by Category In Current Prices .............. 81 Table 3 - Project Expenditures by Category and Component in Constant Prices 82 Annex 8 - Estimated Schedule of Disbursements ........... 83 Annex 9 - Estimated Internal Rates of Return to Agricultural Research Expenditures ......... 84 Annex 10 - Selected Data and Documents Available in the Project File ........ . . ..................... * .. ...... . 85 Charts: Chart 1 - ISAR's Organization .................... ....... 87 Chart 2 - Implementation Schedule ............ ........... 88 Map: IBRD Map 18308  (iv) RWANDA AGRICULTURAL RESEARCH PROJECT Credit and Project Summary Borrower: Rwandese Republic Amount: SDR 11.7 million (US $11.5 million equivalent) Terms: Standard IDA terms Beneficiary: Ministry of Agriculture, ISAR (Agriculture Research Institute of Rwanda) Project Description: (i) Objectives and Content: The Project would constitute a first phase of a long-term support program to strengthen the national agricultural research in Rwanda, and to make agricultural research activities more responsive and applicable to the needs and constraints of the producers. The Project would consist of: the development of a long-term master plan for agricultural research, including a national seed multiplication and distribution policy and a long-term manpower development plan; support of ongoing research programs; institutional development of ISAR (Rwanda's national research organization) through reinforcement and reorganization of research effortb, the expansion of farming systems and on-farm research, better linkages between research and extension activities, and the improvement of research management; development, rehabilitation and equipping of research station facilities; and other essential agricultural and laboratory equipment; provision of a soils map of Rwanda; and support to the Faculty of Agriculture and to the Department of Geography of the University of Rwanda to increase the research capabilities of students and faculty. (ii) Benefits: Benefits would include strengthening of Rwanda's agricultural research efforts, which in turn are a prerequisite for sustained agricultural development. By strengthening individual research programs and setting them in the context of a longer-term master plan, the Project would assist in directing research to priority areas, adapting it to Rwanda's needs, and coordinating external assistance amongst all donors funding agricultural research in Rwanda.  (v) (iii) Risks: Delays in upgrading research staff and/or their recruitment could slow down the Project's execution. Incomplete development of linkages between research and extension could delay diffusion of newly generated technologies and their impact at farm level. Estimated Project Costs: /a Local Foreign Total (US$ millions equivalent) Capital costs 2.1 3.6 5.7 Research staff expenditure 1.1 1.1 2.2 Operating costs 3.8 2.5 6.3 Base cost 7.0 7.2 14.2 Physical contingencies 0.4 0.4 0.8 Price contingencies 1.9 1.1 3.0 Total Project costs 9.3 8.7 18.0 /b Financing plan: Government 5.1 0.2 5.3 ISAR 0.6 0.6 1.2 IDA 3.6 7.9 11.5 Total 9.3 8.7 18.0 Estimated disbursements: IDA Fiscal Years FY85 FY86 FY87 FY88 FY89 FY90 - - US$ millions - Annual 1.2 2.0 2.3 2.7 2.4 0.9 Cumulative 1.2 3.2 5.5 8.2 10.6 11.5 Rate of Return: Not applicable Map: IBRD 18308 /a Import duties would not be levied on the Project; base costs are at January 1984 prices and include 5 percent taxes on civil works, locally procured equipment and operating costs (US $0.4 million). /b Including an advance of US $687,000 from the Project Preparation Facility.  RWANDA AGRICULTURAL RESEARCH PROJECT STAFF APPRAISAL REPORT I. BACKGROUND A. Project Background 1.01 In June 1981, an RMEA mission suggested to the Minister of Agriculture, Livestock and Forestry the idea of holding a seminar on agricultural research in Rwanda. It anpeared that research, which had in the past concentrated mainly on export crops, had developed few technical recommendations on food crops which were sufficiently attractive to farmers to be adopted. As a consequence, research has had little impact on food crop production. Concerned that the situation was blocking rural development projects, the Government supported the idea of a seminar to bring together Rwandan and foreign research staff and technicians. The objective of the seminar was to discuss the problems of Rwandan agriculture, in particular food crops, and to define a research strategy which would re-orient future research programs to national priorities and to the real needs of the farmers. 1.02 In November 1981, the Government of Rwanda (the Government) formally requested the assistance of the International Service for National Agricultural Research (ISNAR) to prepare an analysis of the existing agricultural research system. The ISNAR report 1/, which focuses mainly on the reorganization of the research system, was issued in December 1982, after having been extensively discussed with and broadly approved by the Minister of Agriculture, Livestock and Forestry. The seminar took place from February 5 to 12, 1983, with about 150 participants from Rwanda, the International Agricultural Research Centers (IARCs) and aid agencies, including the Bank. The Bank mission which participated in the seminar developed preliminary proposals for follow-up. Subsequently, a US $687,000 advance was granted under the Project Preparation Facility (PPF No. P250) to help finance preparation costs. These included short term consultant services, the recruitment through ISNAR of a financial director and a research programmer for the Institut des Sciences Agronomiques du Rwanda (ISAR), the preparation of architectural plans for research, infrastructure, rehabilitation and constrtction, and a financial audit of ISAR. 1/ "Le Systame National de Recherche Agricole au Rwanda" (decembre 1982).  -2- 1.03 A preparation team spent four weeks in the field in May/June 1983 and made detailed recommendations to the Government on project orientation, scope and further preparation. These recommendations were discussed with Government and ISAR in September 1983 and agreements were reached on the broad outlines of a 3-year Agricultural Research Project. In the meantime, detailed working documents were prepared by ISNAR's staff and Bank consultants on crops, livestock and farming systems research, infrastructure, rehabilitation and construction, equipment requirements and research documentation. In November/December 1983, a final preparation mission of Bank and ISNAR staff discussed in detail the substance of the research programs to be undertaken over the project period and reached agreement in principle on project content. By the end of March 1984, the following were available: architectural sketch plans and cost estimates for research infrastructure, rehabilitation and construction, the financial audit of ISAR, and an additional working document on an agro-forestry research strategy prepared by the International Council for Research in Agro-forestry (ICRAF). An IDA appraisal mission, supplemented by ISNAR and International Livestock Center for Africa (ILCA), visited Rwanda in April 1984. Upon completion of detailed architectural designs, negotiations were held in Washington in December 1984. B. The Rural Sector 1.04 General. Rwanda is a landlocked country covering an area of approximately 26,000 km2. The topography is hilly to mountainous with elevation and rainfall increasing from east to west. The country is characterized by a wide diversity in agro-ecological situations and corresponding farming systems. The western part (Lake Kivu), the central high plateau and the northern volcanic highland areas have the highest agricultural potential, and also the highest population density (300 to 600 inhabitants per square kilometer of usable land) 2/. The semi-arid eastern savannah, traditionally a grazing area sparsely populated, is increasingly being settled as a result of the recent control of the tsetse fly and mounting population pressures elsewhere in the country. About half the total area is currently exploitable for agricultural purposes. Of this, 50% is planted in food crops: beans, sweet potatoes, cassava, beer banana and sorghum (and more recently, potatoes, maize and peas). About 5% is under export or industrial crop cultivation - mainly coffee, but also tea - and approximately 40% is used as pasture land, wood lots and fallow. Rapidly growing population pressure (3.6% per annum growth rate in 1982) has resulted in an expansion of the area under cultivation at the expense of forested areas, grazing lands and the practice of fallow. Declining land availability has forced an intensification of agriculture through double cropping. Productivity per hectare may be falling as a result of increased cultivation of marginal lands and decreasing soil fertility due to intensification and erosion in some fragile areas. Population pressure 2/ Third Development Plan (1982-86) estimates for 1981.  -3- has also led to a diminishing average in farm size, with more than half of all farm families occupying less than I hectare. Average rural family income is equivalent to about US $550 (US $70 per capita). With its present growth rate, the population may sooner or later outgrow availahle food resources and further increase unemployment. The project addresses only one aspect of this long-term problem in aiming at sustainable increases in food production. A population, health and nutrition project, presently under preparation, would begin to address other aspects of the fundamentally linked problems of dynamic population growth and dilution of economic gains. Through its emphasis on food crop research the project is geared to counter increasing poverty and to promote production, nutrition and better standards of living. 1.05 Agriculture in the Economy. The agricultural sector is the most important contributor to the national economy. Its share of GDP at current prices has averaged about 46% over the last five years with subsistence agriculture accounting for an estimated 80% of this. In 1981, agricultural products represented 79X of the total value of exports, with coffee alone accounting for 60% and tea for 10%. 1.06 Up to the present, food crop production appears to have kept pace with population growth, roughly maintaining national food self-sufficiency. Nevertheless, some dependence has been developing on imports of certain types of food products (wheat, rice, salt, oils, etc.). Food imports (food aid excluded) averaged about 9% of total recorded imports during 1977-80. Food aid contributed mainly by United States Agency for International Development (USAID), EEC and the World Food Program (UNDP) was estimated at about 7,000 tons in 1980 and 11,000 tons in 1982 (essentially grain flour, oil and powdered milk). 1.07 National statistics indicate that total agricultural output expanded at an average of 3.2% per ai,num during the period 1969-74 and accelerated to 5.8% per annum for the period 1974-81, due to a temporary rise in the world market price of coffee in the late 70s and a significant inflow of foreign assistance and favorable weather conditions. This rate of growth, however, is no longer sustainable. The economy is facing a period of unprecedented constraints, both physical and technical at the farm level and financial and institutional at the national (governmental) level. There is not much scope for expansion of cultivated area in the future, and therefore increases in production must come essentially from intensification of production at the farm level. On the national level, the current market forecast for Rwanda's major export crops is not favorable, and economic recession in the principal donor countries has resulted in aid cutbacks and uncertainty in the level of future concessionary aid. 1.08 Production Trends. As suggested by production data provided in Annex 1, food crop production increased by about 50% during the last ten years, with growth coming mainly from an expansion in the area under cultivation of about 40X. Over that period, and except for sweet potatoes, yields of most food crops have remained stable or have decreased. Because  -4- of population growth and limited land availability, cattle herd size is declining and there are indications of gradual replacement of cattle by more efficient transformers such as small ruminants, pigs and chicken. The country's natural forest resources are endangered by growing pressure for cropping land and by lack of adequate protection. Natural forest reserves cover 6.5% of the total land and are estimated to he declining at a rate of 5Z per annum. Reforestation is actively being promoted by the Government. 1.09 Although export crops contribute only about 5% of GDP and occupy less than 5% of the total cultivated area, they constitute the major source of foreign exchange earnings for the country. The area under export crops increased by 45% from 1970 to 1980. Coffee represents 75X of the area under export crops and is now spreading to areas considered marginal for its cultivation. Production has remained fairly stable over recent years, resulting in exports of between 15,000 to 18,000 tons of green coffee, short of Rwanda's current quota under the International Coffee Agreement (25,400 tons). In the past, the emphasis in research and production has been on yield maximization rather than quality improvement. The area under tea cultivation has increased steadily from about 1,600 ha in 1970 to 7,800 hasin 1981. The crop has no major problems or diseases that would require extensive research. The quality of tea is at present among the best in the world. Production of pyrethrum and cinchona has remained limited and erratic in the past and their future is highly uncertain (development of cheaper synthetic substitutes). C. Sector Issues and Strategy 1.10 A review of the agricultural sector conducted by the Bank was the subject of discussions (November 1983) with the Government, and its main conclusions and proposals for priority actions were agreed upon. The analysis suggests two overall objectives. First, an agricultural strategy for Rwanda should focus on national food self-sufficiency in view of a rapidly expanding population. This is a priority objective of the Government's Third Development Plan (1982-86) and is also at the center of the recently published Food Strategy Document, prepared jointly hy EEC and the Government. Second, agricultural exports, which account for a critical portion of Rwanda's foreign exchange, must be sustained and expanded with a focus on improving quality. 1.11 These two objectives can best be achieved through a broad based growth in production, with the expected increases likely to result mainly from intensification of production. Priority actions to promote intensification include the generation and distribution of new and improved technologies, which are urgently needed and should be attractive to farmers. The priorities for action, therefore, should be in developing and strengthening agricultural research, agricultural extension and the production and distribution of inputs. Concnrrently, it is essential to maintain, and if possible, to improve the country's agricultural land. Land, which is Rwanda's most important productive capital, is increasingly being threatened by declining fertility and erosion.  -5- 1.12 Previous Bank Group Involvement. IDA lending for the rural sector has amounted to US $80.9 million for seven operations, as follows: (i) four area development projects in the eastern savannah zone were financed by Credits 439 RW (US $3.8 million 1974), 668 RW (US $14.0 million 1977), 937 RW (US $8.8 millin 1980) and 1283 RW (US $16.5 million 1983); (ii) two area development projects in the Lake Kivu and Zaire-Nile divide zones financed by Credits 1039 RW (US $21.0 million 1981) and 1126 RW (US $15.0 million 1981); and (iii) one more narrowly focussed (cinchona) agricultural development project financed by Credit 656 RW (US $1.8 million 1977). Through these projects, the Bank has been involved in development efforts in several ecological zones covering a broad spectrum of regional development activities in all of the major sub-sectors, food crops, export crops (coffee and cinchona), forestry and livestock. 1.13 Performance Evaluation. To date the Mutara Agricultural Development Project - Phase I (Credit 439 RW) is the only project for which both a project completion report and a PPAR (Sec. M81-570, 1981) are available. Completion reports for the Cinchona (Credit 656 RW) and Bugesera Gisaka Migongo - Phase I (Credit 668 RWi) Projects are under preparation. Even though the economic impact of these early projects was marginal in that they did not result in the expected increase in agricultural production, substantial achievements have been realized in the areas of infrastructure development and the establishment of a core of technical and managerial cadres, and relatively efficient administrative and financial control systems. 1.14 The experience accumulated in these and other ongoing IDA supported projects points to a number of common issues which tend to affect project performance: (i) insufficient knowledge of Rwanda's complex farming systems and therefore weakness in the design of appropriate technical packages; (it) lack of training and experience of Rwandese management; (iii) poor statistical base preventing adequate monitoring of project progress; and (iv) insufficient emphasis on financial matters (cost recovery and recurrent cost financing). In addition, inadequate budget resources, unclear and sometimes inconsistent sub-sector policies and investment criteria, and poor coordination of donor supported activities are serious constraints to achieving agricultural development objectives. 1.15 Sector Lending Strategy. Based on these lessons of experience and within the context of the sector strategy outlined above, the Bank is proposing to focus its lending strategy over the next few years on support for the following priority areas: (i) the development of Government agricultural services through the strengthening of national systems in the fields of agricultural research, agricultural and veterinary extension, and eventually agricultural credit; (ii) the development of the private sector in service areas (marketing, input supply and agro-industry) which the Government is unable to provide efficiently; (iii) the development of export crops (e.g. coffee and tea); (iv) the coordination of activities combining erosion control, reforestation and agricultural development; (v) the strengthening of sectoral management through improved agricultural planning, project preparation, monitoring and evaluation, and financial budgeting and control; and (vi) the identification of training priorities, particularly in the area of public sector management.  -6- D. Agricultural Research and Related Services 1.16 Agricultural Research. L'Institut des Sciences Agronomiques du Rwanda (ISAR) created after independence in 1962 is responsible for agricultural and livestock research. Most of ISAR's income is derived from Government budgetary allocations (equivalent to US $640,000 in 1982) and sales of its products (US $370,000). Through 1981, ISAR was supported mainly by Belgian aid and received limited funds from International Development Research Center (IDRC-Canada) for research on sorghum, triticale and oil seed crop breeding. The Swiss government provides assistance in forestry, and coffee and some food crop research is supported under the Lake Kivu Coffee and Food Crop Project (Credit 1066 RW). ISAR manages seven research stations and employs about 1,000 workers, 35 technicians and 16 full time Rwandese research workers (of whom only one holds a PhD). 1.17 Four technical departments cover: crops (including trees), animal production, laboratory investigations (including plant protection) and environmental improvement. ISAR's research efforts have resulted in improving husbandry standards for industrial crops, particularly tea and coffee. ISAR has also introduced new bean and soybean varieties and trials are underway covering several new maize, sweet potato, wheat and triticale varieties. It has worked on blight resistant potato and virus resistant manio- varieties and introduced grafted avocado trees. 1.18 In general, however, ISAR's program has lacked socio-econodic studies of farm systems and adaptive trials on farmers" fields. Research efforts have been conducted in isolation with few links to the traditional farming context. These problems are beginning to be addressed and intercropping trials of common crop mixtures are now being carried out at the Rubona station (ISAR's current headquarters). Two programs are under way with a decided focus on farming systems: one with French assistance in the Zaire-Nile divide region, and the other financed under the BGM II Project (Credit 1283 RW) executed under an agreement between ISAR and IITA. A third program, the Farming Systems Improvement Project, to be financed by USAID for the middle and high altitude region of the Rwerere station in the northwest, is under preparation. 1.19 Over the last ten years, ISAR has intensified its collaboration with the IARCs of the Consultative Group for International Agricultural Research (CGIAR) system: International Potato Center (CIP) continues to support potato research; International Institute for Tropical Agriculture (IITA) is assisting with research on cassava and sweet potatoes; International Maize and Wheat Improvement Center (CIMMYT) is cooperating in wheat and triticale research, and may extend its involvement in maize research through the Birunga Maize Project financed by the International Fund for Agricultural Development (IFAD); and International Center for Tropical Agriculture (CIAT) started in 1983 with Swiss financing an amtbitious expansion of the bean research program.  -7- '. 20 Other Agricultural Services. The shortage of trained manpower in agriculture is a vital constraint in Rwanda, but some important efforts to provide more and better training are underway. The Agricultural Faculty of the University of Rwanda in Butare was created in 1977 and turns out 12 to 14 graduates annually. Students graduate after six years (three years general science education and three years in general agronomy and related subjects) and must go abroad for further specialization. Technical training in agriculture and veterinary sciences for A2 level staff is provided in three schools (a fourth one is under construction). A3 level foremen and schooled workers are trained in Rwanda's 180 Centres d'Enseignement Rural et Artisanal Integre (CERAI). 1.21 The agricultural extension system is generally weak and ineffective: agricultural technology and extension messages insufficiently adapted to farmers, uncoordination of efforts among development projects, inappropriate extension methods (often coercive), insufficient training and irregular supervision, etc. However, there is a growing awareness of the situation and a few promising initiatives are being tested. A project aiming to introduce a national extension system and provide for improved management and training is presently under preparation for possible Bank financing. 1.22 ISAR is involved with the production of breeder seeds. Seed multiplication and distribution is the responsibility of the Selected Seed Service (SSS) of MINAGRI. The present situation is characterized by: (i) insufficient collaboratton between ISAR and SSS; (ii) lack of trained staff and infrastructure; (iii) no formalized seed control and certification system; (iv) insufficient multi-location trials; and most important (v) poor quality of breeder seeds. II. THE PROJEC_ A. The Proposed National Agricultural Research Strategy 2.01 The Government of Rwanda has decided to reorient its agricultural research effort to improve its efficiency, so that research will contribute to the success of the Government's development strategy in the rural sector. Research is to be made more problem oriented - that is more responsive and more applicable to the real constraints of the agricultural producer -- communications between research workers and the development and extension staff of MINAGRI and individual projects in the rural sector are to be intensified. Focussing research on problem areas will be pursued by strengthening ISAR through the establishment of nationally coordinated mustidisciplinary research teams on priority commodities and regional agricultural production systems. Following the publication of ISNAR's analysis of the current agricultural research system and the February 1983 Seminar (paras. 1.01 and 1.02), and realizing that agricultural research takes many years to bear fruit, requiring a long term commitment, it was  -8- decided to limit a first phase project to three years to develop a long term master plan for agricultural research, a national certified seed multiplication and distribution policy, and a long term manpower development plan. To reach these broad objectives the Project would: ti) provide for technical assistance for MINAGRI to develop a long term national agricultural research and certified seed multiplication strategy; (ii) replace the existing fragmented disciplinary research approach by a nationally coordinated multidisciplinary team approach along commodity problem area lines; (iii) strengthen and coordinate the ongoing and planned regional farming systems research programs; (iv) strengthen research management, programming, evaluation and review through reorganization of ISAR, and institution of more appropriate procedures for formulation of research programs and their follow-up; (v) establish a documentation system at a later stage to be extended with an information system for the dissemination of research results; (vi) strengthen capabilities for evaluation and application of new technology, including more effective linkages with extension; and (vii) strengthen linkages with external technical assistance organizations, including the IARCs. Following the February 1983 Seminar, the Government of Rwanda endorsed the above research philosophy. Master Plan for Agricultural Research 2.02 During the three years (1985-87) of project implementation, a master plan for national agricultural research would be developed with a 15 to 20 years' perspective within the framework of a well defined and realistic agricultural sector strategy. The master plan preparation process would: (i) define an agricultural research strategy based on a clear definition of specific research objectives and priorities; (ii) define possible research coordination mechanisms with neighboring countries with a view to limit the total costs of research for Rwanda through the establishment of regional multidisciplinary commodity research teams,  - 9 - exchange of information on research results and coordination of research programming to avoid duplication; (iii) propose procedures/strategies for the development of effective links between research and extension services of both MINAGRI and development projects; (iv) develop a long term manpower development plan for ISAR, including satisfactory recruitment and promotion (career development) procedures; (v) develop adaptations to ISAR's organizational structure to enable it to execute the defined research strategy; (vi) propose a national information system for the dissemination of research results and extension themes; and (vii) prepare a follow-up project (including staff, infrastructure and equipment requirements) as a first phase of the execution of the research master plan. The master plan would ultimately serve as a framework to which various donor financed projects and IARCs would contribute rather than compete. B. Summary Project Description 2.03 Research Programs. Partly as a result of the February 1983 seminar and further project preparation, a number of new research programs have been initiated with the contribution of major donors. To enable ISAR to continue worthwhile ongoing and new research activities before a long term research master plan would be available, the Project would support ISAR over a period of three years to implement: (i) three production systems programs: in the Bugesera region for the semi-arid eastern part of the country (financed under the second BGM Project, Credit 1283 RW, executed by IITA), in the Zaire-Nile divide for the high altitude regions (financed by Fonds d'Aide et de Cooperation (FAC) and FED, executed by Groupement d'Etudes et de Recherche pour le Developpement de l'Agronomie Tropicale (GERDAT), and in the medium and high altitude regions of the North-West (financed by USAID, executed by the University of Arkansas); (ii) nine nationally coordinated multidisciplinary commodity research programs on food crops: beans (financed by Switzerland, executed by CIAT); peas; soybeans and  - 10 - groundnuts; maize (partly financed under the IFAD Birunga Maize Project, possibly executed by CIMMYT); sorghum and millet; wheat and triticale; sunflower; cassava and sweet potato (financed by IDRC, executed by IITA); and potatoes (executed and partly financed by CIP); (iii) two nationally coordinated programs on cash crops: coffee and tea (partly financed under the ongoing Lake Kivu Coffee Improvement and Food Crop Project, Credit 1126 RW); (iv) two programs on fruits: bananas and avocado; (v) continuation of the breeding program for local cattle (with assistance from ILCA); (vi) one program on animal nutrition (assisted by ILCA); (vii) one program on small ruminants (financed under the ongoing Integrated Forestry and Livestock Project, Credit 1039 RW); (viii) continuation of the forestry research program (financed by Switzerland); and (ix) the start-up of an agro-forestry program (financed by Switzerland). The majority of the above programs are initiated and continue to be funded by other donors and ongoing Bank projects. Of the 21 programs, 16 are ongoing and four are starting-up (the USAID funded production systems program at Rwerere, the IFAD funded Birunga Maize Project, the Swiss-financed agro-forestry program and the small ruminants program financed under Credit No 1039 RW). Only the animal nutrition program would be initiated under the project. 2.04 In particular, the Project would include: (i) assistance to the Ministry of Agriculture, Livestock and Forestry for coordination of the preparation of a long term agricultural research master plan (15 to 20 years), including a seed control and certification system and assistance to the development of a national agricultural information system; (ii) the reorganization of ISAR into four research departments (Crop Production, Environmental Studies and Production Systems, Animal Production, and Forestry and Agro-forestry), and a Financial and Administrative Service to make research problem-oriented through the introduction of multidisciplinary research;  - 11 - (iii) reinforcement of research programming, budgeting and financial management through technical assistance (two expatriate staff of which one will be provided by ISNAR) and regular financial audits; (iv) technical assistance for priority research programs (three expatriate scientists) 3/; (v) establishment of an annual research program review system and a donor coordinating mechanism; (vi) short and medium term overseas training (ranging from one month to two years, both in Africa and elsewhere) for Rwandese scientists in special subjects; (vii) infrastructure rehabilitation of four research stations (Rubona-Songa, Karama, Ruhengeri-Kinigi and Tamira), construction of a liaison office in Kigali and housing for additional research staff; (viii) provision of vehicles, agricultural, laboratory and office equipment, and furniture; (ix) provision of equipment and research supplies for the Faculty of Agroromy and the Department of Geography of the University of Rwanda for research by students and Rwandese faculty staff members in collaboration with ISAR; and Cx) support for vehicle and tractor operating costs, research supplies, and infrastructure and equipment maintenance. This first phase project would assist ISAR over a three year period, the time deemed necessary to complete the research master plan, to prepare ISAR f or the full execution of the master plan and to prepare a follow on project consisting of a second (five year) tranche of the master plan. During this phase, the project would aim at the consolidation of mostly ongoing research in one national system throuigh reinforcement of ISAR and improving coordination amongst all donors funding agricultural research in Rwanda. 3/ A senior agricultural economist specialized in farming systems research, an animal production systems specialist and an animal nutrition scientist.  - 12 - C. Detailed Features Crop Research Programs 2.05 A detailed description of the various research operations for each of the crop research programs is given in Annex 2 and the Implementation Volume. Most of the programs will be limited under this first phase project to varietal screening, comparative trials (both on-farm and on-station) and research on identified problems. Cross breeding may be required in the future for beans, maize, sorghum, triticale, cassava and sweet potatoes. For many of the crops, the problems are related to on-farm post-harvest technology (storage, oil extraction, milling, brewing, nutritional value and organoleptic characteristics), for which ISAR is not equipped and requirements for research will be studied under the master plan. One of the first actions to be undertaken under the Project will be to purify the breeder seed of existing varieties of food crops that have proven in the past to outperform farmers' traditional varieties. To improve seed multiplication and distribution under a possible follow-up project, proposals would be developed by MINAGRI for a quality control and seed certification system, including the required legislation. The Project includes in the framework of the master plan preparation (para. 2.39) technical assistance to assist MINAGRI in this task. To regain farmer confidence, it is of the utmost importance that farmers car. count on the quality of seeds they buy. 2.06 Beans Research Program. The main thrust of the program would be to find or develop varieties of both bush and staked beans that outperform the traditional varieties under the prevailing cultivation practices and are adapted to a wide range of agro-ecological conditions. Farmers intercrop up to three varieties of beans with cereals or bananas or other crops, a practice which probably developed to avoid risk. Screening of varieties would as much as possible be done under the same conditions. For staked beans, the emphasis of the program would be on methods of staking with crops such as maize and sorghum, because of the increasing difficulty in finding stake material as a result of deforestation. Under the Project, FAO would survey the nitrogen fixation characteristics of the traditional varieties under various soil and climatic conditions. 2.07 Pea Research Program. Peas are traditionally grown in an extensive manner on fallow fields where the natural vegetation serves as support. It is an important high altitude crop where beans can no longer be grown. The area under peas has steadily decreased with the decline of the fallow practice. One of the challenges for research will be to find a way to intensify pea production in using other crops as support. Another important aspect of pea research would be to develop a rhizobium seed dressing system to improve yields. 2.08 Soybeans Research Program. The main problems farmers are faced with when growing soybeans are a limited market, bird damage at germination, low germination rates and lack of knowledge of methods of  - 13 - utilization. Bird damage may be limited through intercropping. The reasons for the low germination rates are not fully understood and will therefore be the subject of a special study. Soybeans are presently sold for fodder and a small quantity for the oil mill in Nyabisindu. Research under the Project would be extended to investigate available on-farm technology to improve preparation of soybeans for human consumption. 2.09 Groundnuts Research Program. The main thrust of groundnut research would be to find drought resistant varieties for the eastern part of the country. Since groundnuts are mostly grown on poor soils, the economic effects of limited phosphate fertilization will he investigated (Karama station). 2.10 Maize Research Program. Maize is a crop of growing importance. Whereas sorghum covered in the early 1970s approximately 20% of the area under food crops, its share had dropped to 15% by the end of the decade (Annex 1). Over the same period, maize increased its share slightly from 7.2% to 7.5Z. Maize is most important in the high altitude (over 1,900 m) regions of the north-west and below 1,500 m. One of the first priorities of the maize research program will be to restore the purity of the breeder seed of the Katumani (low lands) and Bambu (middle altitude) varieties. However, these cultivars are not ideal and further research will be directed towards high yielding, disease resistant short stalk varieties with a shorter growing cycle and yellow grain. The main thrust of the program would be to develop varieties suitable for intensive cultivation in the north-western high altitude regions. This part of the program may be executed by CIMMYT with IFAD financing (Birunga Maize Project) within the overall framework of the national maize research program. Agronomic trials will emphasize intercropping and the use of maize stalks as natural stakes for bean cultivation. 2.11 Sorghum Research Program. Yield improvements in the highlands can probably only be obtained through crossing of traditional cultivars with varieties introduced from elsewhere. For the lower altitudes in the eastern part of the country, chances of finding higher yielding varieties through introductions from elsewhere are much higher. However, since 90% of present sorghum production is transformed into beer, the future accent of sorghum research would be on improved on-farm post-harvest technology for both beer and flour production and storage. 2.12 Wheat/Triticale Research Program. Home consumption of wheat is increasing in the main production areas (the high altitude regions of Ruhengeri and Gikongoro prgfectures). At the same time, demand is increasing in the urban areas. Recently, ISAR has identified two new rust resistant wheat varieties (in collaboration with CIDMMT with IDRC financing). Like elsewhere in the world, the emergence of new rust strains obliges breeders to introduce continuously new cultivars. The wheat/triticale program will mainly consist of the continuation of varietal screening in collaboration with CIMMYT, the study of cultural methods and on-farm fertilization trials.  - 14 - 2.13 Sunflower Research Program. Since 1977 ISAR has conducted a screening program on a small scale to study the possibilities of introducing an oil crop as a cash crop in the north-western high altitude regions. The main problems encountered with sunflower so far are fungus diseases, bird damage and lodging. Under the Project, past research results would be analyzed and variety screening for adaptability will be continued on a limited scale. 2.14 Cassava Research Program. Cassava is increasingly used as a reserve staple in the central plateau and semi-arid regions where it is harvested when needed. In the marginal zones recently brought into cultivation, cassava is gradually becoming an important cash crop. The main problems encourtered in cassava cultivation are diseases (mosaic, bacterial wilt and cercosporiose) and the green spider mite (Mononychellus tanajoa). Research will therefore concentrate on disease and mite resistant varieties in collaboration with IITA with IDRC financing. 2.15 Sweet Potato Research Program. In terms of production volume, sweet potatoes are the second most important food crop after bananas (Annex 1) with its relative share in terms of area planted rapidly increasing. Traditionally, farmers grow mixtures of local varieties in the same field as a guarantee against climatological and disease hazards. Pure stand varieties that gave superior results on station do not generally outperform traditional varieties on farmers' fields. As for cassava, diseases (viruses and anthracnose) and parasites (Cyclas spp. and Acraea acerata) are major obstacles for production increases. Under the IDRC financed tuber program in collaboration with IITA, research will be directed towards disease and insect resistant variety screening in pure stands as well as under intercropping conditions. In the future, polycross breeding with local varieties may be be the only way to develop higher yielding clones. 2.16 Potato Research Program. Potato research carried out since 1979 by Programme National pour l'Ainelioration de la Pomme de Terre (PNAP), with Belgian financing in close collaboration with CIP, presents one of the success stories of agricultural research in Rwanda. Since its inception, PNAP has introduced and tested 9,000 different genetypes. In 1982, the first five Rwanda potato varieties were formally recognized. A large part of the program consists of seed potato production (190 tons in 1982). Under the Project, PNAP will be entirely integrated in ISAR's research structure. It will continue to be responsible for seed production of the Sangema and Montsama varieties, and research will focus on disease resistance (Pseudomonas soleanacearum, Phytophtora infestans and various virus diseases), cultural practices and on-farm storage. CIP will continue its collaboration, but additional financing requirements would be covered under the Project. 2.17 Coffee Research Program. Mbirizi was the first coffee variety introduced in Rwanda. For years the Jackson and Bourbon Mayagues 71 and 139 varieties have been successfully promoted to replace the Mbirizi variety. Coffee research in Rubona was in the past very nmch oriented towards yield improvement. More recently, Rwandan coffee quality (taste)  - 15 - has declined for reasons which are not entirely clear (variety, cultural practices and post-harvest technology (washing) ). Future research will be directed towards quality improvement and will also include research on cover crops to replace the present practice of mulching; research on integrated pest management (Antestiopsis and rust control) including a field survey to determine the importance of damage caused by Anthrachnose, Antestiopsis and Stephanoderes, and multi-location trials on plantation renewal methods. Much of this research is being financed under the Lake Kivu Coffee and Food Crop Project (Credit 1126 Rt, Annex 1). 2.18 Tea Research Program. Rwanda's tea quality is excellent and yields are stable, but relatively low in the absence of the use of fertilizers. Future research would concentrate on the economics of fertilizer usage in the different ecological zones where tea is grown and study, in particular, the use of legumes (green manure) as cover crops for shade and as erosion control hedges. 2.19 Banana Research Program. Beer bananas are the most important cash crop for the Rwandese farmers. Only 10% to 15% of all bananas grown in Rwanda are for cooking or table bananas, their consumption is however on the increase. Under the Project, a modest start will be made with research on beer and cooking bananas through an inventory by ecological region of existing local varieties, beer brewing losses, major diseases and parasites, and production characteristics. In the future, research should be extended towards post-harvest technology for beer production, cultural practices, intercropping and effects on soil structure, soil fertility and erosion. As part of the master plan preparation exercise, particular attention would be given to regional cooperation in banana research. 2.20 Avocado Research Program. Avocado is rapidly becoming an important oil and food crop. The main problems are: a lack of quality grafts, a lack of uniform rootstocks and a lack of adapted technology for on-farm oil extraction. Under the Project, some limited support would be provided for research on these problem areas. Under a follow-up project responsibility for rootstock and graft production may be transferred to SSS. Farming Systems Research (FSR) Programs 2.21 Two programs of Farming Systems Research (FSR) with a Farming Systems Perspective - OFR/FSP 4/ in CIMMYT terminology - are presently executed by ISAR (Bugesera and Zaire-Nile divide). Further detailed description of the various research operations for these programs is given in the Implementation Volume. In principle, OFR/FSP consists of four components: 4/ OFR/FSP stands for On-farm Research with a Farming Systems Perspective.  - 16 - ti) an initial diagnostic survey to identify and quantify rapidly technical, economical and social production contraints; followed by (ii) an analysis of agrarian production systems (by homogeneous groups of target farmers) in the region surveyed, leading to identification of main constraints in their order of importance; (iii) testing of solutions to identified constraints, both on-station and with farmers an their fields; and finally (iv) pre-extension testing of new technology on farmers' fields to familiarize extension agents with the new techniques. A third FSR program in the Rwerere region is under preparation for execution by ISAR in collaboration with the University of Arkansas to be financed by USAID. The ongoing Swiss financed Projet Agricole de Kibuye (PAK), FAC financed Projet de Kigali-Est and German financed (GTZ) Nyabisindu Project all have FSR elements and are executed as rural development projects under MINAGRI responsibility. Under the Project, ISAR would, through its Production Systems Department, establish closer working relationships with these projects. 2.22 Bugesera OFR/FSP Program. The constraints the farmers in the Bugesera region are facing are related to low rainfall (800 to 1,000 mm), poor soils and severe erosion hazards despite relatively moderate slopes. The population consists of recent immigrants from overpopulated higher rainfall areas who have adapted themselves remarkably well to their harsh environment. Even though the OFR/FSP program has started only recently, some urgent research operations have been identified. Following a more detailed analysis of prevailing agrarian production systems, research would concentrate on the integration of livestock and agriculture (stall feeding and introduction of animal traction), soil fertility management, testing of on-farm erosion control measures combined with intercropping and the introduction of agro-forestry. 2.23 Zaire-Nile Divide OFR/FSP Program. The principal production problems in this high altitude area of recent immigrants are also soil related: acidity, poor soil fertility and steep slopes. Research would be directed towards integration of livestock and agriculture (sheep and goats, and manure production), soil improvement measures (possible use of travertine, a base rich rock), soil fertility management, and on-farm erosion control measures combined with intercropping and the introduction of agro-forestry. Livestock Research Programs 2.24 Past livestock research has concentrated on breed improvement for extensive meat production, and more recently, on intensive milk production  - 17 - (Annex 1). Under the Project, livestock research would be reoriented away from breed improvement for extensive grazing and more directed towards integration of animal husbandry and agriculture, intensification and the introduction of small ruminants. For this research, the Livestock Research Department's staff would be reinforced with an animal production systems expert, who would in close collaboration with the Production Systems Department, guide component research on animal nutrition, small ruminants and cattle breeding. As a condition of disbursement for infrastructure investments for livestock research at Karama and Songa stations, ISAR would enter into a formal agreement with ILCA. Under this agreement to he financed under the Credit, ILCA would recruit two research scientists (an animal production systems expert and an animal nutrition scientist) and provide support and guidance for all the activities of the Animal Production Department. 2.25 Animal Nutrition Research Program. Experience with selected local cattle or crossbreeds has shown mixed results, mainly because the selected cows rarely outperform the non-selected ones under farmer conditions. The bottleneck to increase milk and beef production is invariably the lack of fodder required for high performance. With the gradual reduction of Rwanda's grazing areas, the extension services actively promote stall feeding of cows, which is only possible when the farmer has sufficient land to feed the animals with agricultural by-products and fodder crops. The objectives of the animal nutrition research program would therefore be: (i) to determine the fodder and by-product potential for the different farming systems occurring in Rwanda; (ii) to introduce, screen and test various annual and perennial fodder crops, both on-station and with the farmers; (iii) to study on-farm fodder conservation; and (iv) in close collaboration with the agro-forestry research program (para. 2.29) to study the use of fodder trees in the farming system. 2.26 Small Ruminants Research Program. With the decreasing farm sizes, goats and sheep have been replacing cattle in the farming system, in particular in the highlands where the traditional cattle grazing areas are rapidly overtaken by crop cultivation (Annex 1). The small ruminants research program, for which a 300 ha station will be established under the Integrated Forestry and Livestock Project (Credit 1039 RW), would be preceded by a survey amongst farmers to study the role of small ruminants in the farming system, and at the same time, identify animals that best represent the characteristics of the local breeds. The on-station selection progam of 500 sheep and 500 goats could also include some imported breeds. The whole program, from the survey onwards, would be supported by ILCA under the agreement referred to in para. 2.24. 2.27 Cattle Breeding Program. ISAR proposed an extension of the infrastructure (mainly drinking water supply and pasture improvement) at the Karama station to extend further its breeding program for milk production of the local Ankole breed of cattle. Similar programs elsewhere in Africa have seldom led to useful results, mainly because the selected cows rarely outperform the non-selected ones under farmer conditions. ISAR  - 18 - agreed first to analyze their 20 years' non-treated data on cattle breeding with the assistance of ILCA. An expert scientist on cattle breeding from ILCA has visited Rwanda in July of 1984 and will advise on the future of the breeding program. ISAR agreed that investments for extension of the breeding program should only be undertaken if the outcome of the above investigations was conclusively positive. Receipt by IDA of an independent opinion by an expert scientist from ILCA on the usefulness of extending ISAR's cattle breeding program is a condition of disbursements for expenditures for civil works in Karama or Songa (paras. 2.24 and 2.42). Forestry and Agro-forestry Research Programs 2.28 Until recently, forestry research has been handled by the Crops Research Department. Under the Project, both forestry and agro-forestry research would become the responsibility of a separate department. The ongoing Swiss financed forestry research program described in Annex 1 would continue. 2.29 Agro-forestry Research Program. Following the agro-forestry research strategy paper prepared by ICRAF (para. 1.03), ISAR has decided to extend further its agro-forestry research. Under an agreement to be negotiated prior to Credit effectiveness, ICRAF would provide from Nairobi expert advice on research orientation and design, and training for Rwandan scientists (para. 2.37). Continuation of Swiss financing for technical assistance and operating costs for the entire forestry and agro-forestry research program would he requested upon expiration of the current funding agreement by the end of 1985. The agro-forestry program would be undertaken in close collaboration with the Animal Production and Production Systems Departments, and would focus on: (i) an inventory of the agro-forestry systems of Rwanda; (ii) an evaluation of the available biomass by photo interpretation; (iii) the optimal spacing of woody species integrated in the farming system; (iv) the improvement of fodder availability from low growing trees and shrubs; (v) research on the optimal intercropping patterns of food crops and fruit trees for the higher altitudes; and (vi) a study of the possibilities to develop beekeeping through agro-forestry. Strengthening ISAR's Headquarters 2.30 ISAR's headquarters would be strengthened through: Ci) establishment of a Research Programming and Evaluation Unit directly attached to the Managing Director; (ii) reinforcement of the Financial and Administrative Service; (iii) reinforcement of the Central Support Services: documentation and publication, data processing and statistics, and the central laboratories; and  - 19 - (iv) establishment, staffing, equipping and operation of a full-time liaison office at Kigali. 2.31 The Research Programming and Evaluation Unit would be headed by a Senior Research Programming and Evaluation Advisor responsible for: (i) developing a uniform system within ISAR for effective programming, direction, evaluation and overall management of research; (ii) developing and operating a research progress monitoring and evaluation system; (iii) preparing and coordinating internal and external research program reviews (paras. 4.06 and 4.07) with regard to priority order, scientific and technical soundness, and progress in implementation; and (iv) preparing quarterly progress reports and a project completion report according to guidelines to be agreed upon with IDA. The advisor has been recruited under ISNAR's responsibility and has been in position since April 1984 with PPF funding. 2.32 The Financial and Administrative Service would be headed by ISAR's financial director, who has been recruited with the assistance of ISNAR and has been in position since March 1984 with PPF funding. His functions include: Ci) updating ISAR's accounts and gradually integrating all accounts of research activities undertaken under ISAR's ultimate responsibility, PNAP and research components of IDA financed projects 5/; (ii) reviewing the necessity and practical implications for ISAR of integrating the accounts of research related projects presently under preparation (USAID FSR Project at Rwerere and IFAD Birunga Maize Project at Ruhengeri/Kinigi); (iii) designing in close collaboration with the research planning and programming advisor and gradually implementing a cost accounting system that would ultimately permit budgeting and budget control by research program and research station; (iv) preparing project financial statements and ISAR's balance sheet including consolidated and detailed annual budgets and quarterly cash flow projections (to be included in quarterly progress reports); (v) designing and implementing sound financing and management controls particularly with regard to fixed assets, accounts receivable, accounts payable, inventories, stocks and receipts, equipment maintenance and vehicle operating costs; and (vi) supervising the disbursement records for the various donors and supervising all procurement procedures. As part of the overall reorganization and refocussing, ISAR's Financial and Administrative Service is to clearly distinguish between research station management and operation which is the responsibilitv of the station chief, and research program management which is the responsibility of the national and regional research program coordinators (paras. 4.05, 4.08 and 4.09). 2.33 The Central Support Services at Rubona, administratively under the financial director, would he reinforced as follows: 51 Integrated Forestry and Livestock Project (Credit 1039 RW), Lake Liku Coffee and Food Crop Project (Credit 1126 RW) and BGM II Project (Credit 1283 RW).  - 20 - (i) The documentation and publication racilities would be expanded through the purchase of some 800 technical and scientific works, extension of the central library in Rubona, installation of two small libraries cum documentation units in Ruhengeri and Karama, purchase of printing equipmint and training of a documentalist and a librarian (para. 2.37). (ii) The central laboratories would be rehabilitated and part of the equipment would be renewed, and management would be improved through the design and introduction of an effective cost accounting system (currently, a large part of all plant and soil analyses are done for non-ISAR customers). (iii) The data processing and statistics unit to be established under the Project would, in the first instance, consist of one person, an experienced biometrician who would be responsible for: (i) the review of all experiment design and on the job training of research staff in routine experiment analysis, including the use of micro-computers; (ii) the design of complex experiments involving interacting functions; and (iii) the training of research staff on data collection and presentation for computer processing. Staffing 2.34 ISAR would employ in nine different locationis by 1987 a total of 56 scientists (AO), nine senior scientific administrators (AO), 62 other scientific staff (A1 and A2), 24 higher level administrative staff (A1 and A.2), 202 lower level administrative staff and 858 agricultural staff (Table 2.1); 14 of them would be key staff: ISAR's Managing Director (Project Manager); Senior Programming and Evaluation Advisor; five Department Heads of the Crop Production, Environmental Studies and Production Systems, Animal Production, Forestry and Agro-forestry Departments, and the Financial and Administrative Service; Statistician/Biometrician, Chief of the Data Processing and Statistics Unit; three senior scientists in the Environmental Studies and Production Systems Department, farming systems agronomist, agricultural economist and rural sociologist; senior animal production systems specialist in the Animal Production Department; documentalist; and Technical Liaison Officer (para. 4.14). Assurances have been obtained from Government that key pzoject staff would have qualifications and experience acceptable to IDA and would be appointed for periods which are appropriate to the demands of the research programs in question to assure the necessary continuity for successful project implementation. Detailed terms of reference for key staff are in Annex 3. During negotiations, a clear understanding was reached with Government on the number of staff appointments (A2 through AO) and the operating budget allocations for the Project.  - 21 - Table 2.1: Research Staff Rea irements /a Researeh /b posiLtions - Manryears /c t progras 1984 1987 Rwvndan Expatriate Total Crops Research: Beans 2.60 3.55 3.15 6.90 10.05 Pea .35 .80 2.00 - 2.00 Soybeans/groundnuts 1.40 1.90 4.10 1.20 5.30 Maize 1.50 2.85 2.45 6.00 8.45 Sorghum 1.58 1.71 4.23 .90 5.13 Wheat/triticale 1.07 1.52 4.36 - 4.36 Sunflower/pyrethrum 1.00 1.21 3.53 - 3.53 Cassava/sweet potato 2.90 3.50 7.40 3.00 10.40 Potato 3.70 3.95 8.75 3.00 11.75 Coffee/tea 1.45 1.45 4.35 - 4.35 Bancns .85 .95 2.85 - 2.85 Avocado .60 .61 1.83 - 1.83 Sub-total 19.00 24.00 49.00 21.00 70.00 Produetion Systems: Central unit 2.00 8.00 7.00 -9.00 16.00 Bugesera 2.00 4.00 10.00 6.00 16.00 Zaire-Nile divide 1.00 5.00 11.00 6.00 17.00 Ruhengeri/KinIgI 1.00 1.00 - 1.00 1.00 FSIP - 3.00 - 3.00 3.00 Sab-tocal 6.00 21.00 28.00 25.00 53.00 Livestock Research: Aniual production systeme - 1.00 - 3.00 3.00 Animal nutrltion 1.00 2.00 3.00 3.00 6.00 Small ruminants - 1.00 3.00 - 3.00 Cattle breeding 2.00 1.00 3.00 - 3.00 Sub-total 3.00 5.00 9.00 6.00 15.00 Forestry and Agro-forestry: Forestry research 3.00 3.00 6.00 3.00 9.00 Agro-forestry Program 2.00 3.00 6.00 3.00 9.00 Ssb-total 5.00 6.00 12.00 6.00 18.00 Total 33.00 56.00 98.00 58.00 156.00 By Station Ribona 19.45 32.00 19.00 51.00 Songs - - - - Rahande 6.00 12.00 6.00 15.00 Karaaa/Gashora 9.55 16.00 12.00 28.00 Cisowu 6.00 14.00 6.00 20.00 Gishwati 1.00 3.00 - 3.00 Rahengeri/Kinigi 6.07 6.00 12.00 18.00 Tamira .84 3.00 - 3.00 RJerere 7.09 12.00 3.00 18.00 Total 56.00 98.00 58.00 156.00 /a Excluding Department Heads. Station Chiefs - university graduates (AO level) who are counted as administrative. /b Unive rity graduates only (AO plus expatriates). e Over three year project period (1985-87).  - 22 - 2.35 For seven of the 14 key staff, it is unlikely that suitable candidates could be found within Rwanda; two have been recruited under IDA financing (PPF), two would be provided under the USAID financed Farming Systems Improvement Project (FSIP), one has heen recruited through CIAT with Swiss financing and one would be recruited internationally through ILCA and funded under the Project (the animal production systems specialist). 2.36 Of the 56 scientist positions (Table 2.1), 29 would be filled by Rwandan university graduates (AO level), 24 would be filled by expatriate staff through the various ongoing donor funded research projects and three would be recruited internationally and funded under the Project (the animal production systems specialist, an animal nutrition/fodder crops specialist, both through ILCA, and an agricultural economist specialized in OFR/FSP). As a condition of Credit disbursement, Government would seek annually a formal agreement on research staffing amongst aid agencies financing agricultural research in Rwanda. Training 2.37 ISAR would aim to have all its research worker positions ultimately manned by M.Sc. or Ph.D. level scientists. M.Sc. and Ph.D. level specialization is currently not available in Rwanda (Annex 3). Scholarships for such training are available in sufficient numbers from bilateral aid agencies. The Project would provide US $560,000 for specialized training - 71 scholarships from one month to two years duration have been identified and detailed in Annex 5. Training needs would be annually reviewed by ISAR's management, ISAR's Board of Directors, aid agencies and IDA. Under the Project, an amount of US S45,000 has been allocated for a thorough independent analysis of farming systems research in Rwanda in early 1986 to review the first results of the three regional OFR/FSP programs (Bugesera, Zaire-Nile divide and FSIP). Visiting Scientists 2.38 The Project would provide US S675,000 for 56 man-months of short term consultancies by visiting scientists, of which 15 man-months would be used for assistance to MINAGRI for the research master plan preparation (para. 2.39). The remainder 41 man-months would be used for specialized consultancies at the request of research teams and for program reviews (para. 4.07). Agricultural Research Master Plan Preparation 2.39 The preparation of a long term (15 to 20 years) master plan for agricultural research in Rwanda would be the responsibility of the Ministry of Agriculture, Livestock and Forestry. For this purpose, MINAGRI would be reinforced with one expatriate staff, one AO and one A2 level Rwandan staff and three administrative staff. A total of 15 man-months (para. 2.38) of high level consultant staff would be available through ISNAR. The total preparation costs of US $745,000 include vehicles, equipment, a micro computer, operating costs and one year training abroad for Rwandan staff.  - 23 - Support for the Agronomic Faculty and the Geographic Department of the National University of Rwanda (UNR) 2.40 The main purpose for supporting the Agronomic Faculty and Geographic Department is to increase the research capability of students and faculty, currently extremely limited. A total of US $170,000 would be provided under the Project to finance agricultural and laboratory equipment, ten micro computers, research supplies and travel indemnities. Each year, a detailed research program and budget would be discussed with ISAR and presented to IDA for approval. The accounts for this component will be kept by ISAR, and payments will only be made for approved budget items on presentation of evidence of payment or invoices. On-farm Experimentation 2.41 The Project would aim at improving the research-extension linkage at the field level. To overcome the shortage of research technicians (A2), to involve the extension services to the maximum extent possible, to increase the number of multi-location trials, and to emphasize on-farm experimentation rather than on-station research, the project would include means of transport, operating costs and indemnities for extension staff at the prefecture and commune levels. A total of 20 motorcycles would be sold on credit to extension staff who would receive indemnities according to annual research contracts. These contracts would be separately specified in ISAR's annual research programs and budget. The total cGst of this component is estimated at US $40,000. On-farm research executed by extension staff would remain under the full responsibility of ISAR's scientists. Research Station Development and Civil Works 2.42 The civil works program (US $4.1 million) consists of the rehabilitation of 15,000 mt of existing operational buildings and housing units, and construction of 4,350 m2 of additional buildings at five locations. In addition, rehabilitation and extension of existing infrastructure at Ruhande, Gisovu, Ruhengeri/Kinigi and Rwerere Stations would be undertaken under respectively: Swiss financing for forestry and agro-forestry research, FED financing for the Zaire-Nile divide FSR Program, IFAD financing for the Birunga Maize Project and USAID financing for the FSIP project. The Gishwati station would be developed with IDA financing under Credit 1039 RW. The most noteworthy features of the civil works program are the construction of a cold store at the Rubona station for seed storage, the extension of ISAR's headquarters at Rubona to accommodate additional staff, the improvement of rangeland at Karama station including drinking water supply, and the establishment of an ISAR liaison office in Kigali with a small guest house and a meeting room. Investments for rangeland improvement at Karama station would be subject to the disbursement condition referred to in para. 2.27. Architect's fees for a total amount at base cost of RF 25 million (US $260,000) are included in the Project costs, as well as RF 10 million (US $105,000) for additional studies, such as water supply to ISAR's stations.  - 24 - Vehicles and Equipment 2.43 The cost tables in the Implementation Volume contain detailed equipment lists for a total of US $1.9 million, including six tractors, 16 cars, 12 trucks, 20 motorbikes, 15 micro computers, two word processors, three generators and office equipment (US $2,000 per office). To promete off-station research and increase research efficiency, the mobility of extension staff should be assured. Therefore 20 additional motorcycles would be provided under the Project (para. 2.41). Vehicles and motorcycles are renewed every three years. Vehicle and truck requirements are based on pooling and calculated as follows: one car for each department chief and expatriate research worker, one car for two Rwandan research workers and one truck for four research technicians. Vehicle and equipment requirements are only included for the Rubona, Songa, Karama and Tamira stations and the liaison office in Kigali. As for infrastructure requirements, equipment for the Ruhande, Gisovu, Ruhengeri/Kinigi and Rwerere stations would be financed by other donors (para. 2.42). Equipment for the Gishwati station would be financed by IDA under Credit 1039 RW. Cartography 2.44 Included in the assistance to MINAGRI for the research master plan preparation is a component under which the soils map of Rwanda would be published. The survey for this map has been financed by Belgium and is almost completed. The work has been done in such detail that the map could be published on a 1:50,000 scale, while available funding would only allow publication on 1:100,000, a scale generally considered of nor much use for agricultural planning and development purposes. The Project therefore includes a total of RF 5.6 mil.lion (US $58,000) for multicolor printing on a 1:50,000 scale. Tnis map on soils will be one of the basic elements for the inventory of Rwanda's agro-forestry systems included under the agro-forestry research program (para. 2.29). A second element required for such an inventory is a map of Rwanda's agro-ecological zones of more detail than the one presently available 6/. Funding for the publication of such a map is included under the Project for a total amount of RF 11.3 million (US $116,000). 6/ Disponibilite et Utilisation des Terres au Rwanda, situation actuelle et perspectives, by B. .Prefol and G. Delepierre, November 1973.  - 25 - Table 2.2: Civil Works and Equipment Requirements Rehabilitation Extension Operational Operational Civil Works buildings Housing buildings Housing Rubona 475 7,500 1,166 1,740 Songa 1,720 590 - - Karama 2,395 2,000 105 820 Tamira 245 360 100 230 Kigali - - 115 75 Equipment 1984 /a 1985 1986 1987 Total - - -RF million /b--- Renewal: Agricultural equipment - 15.5 10.2 - 25.7 Laboratory equipment - 1.4 2.4 - 3.8 Vehicles - 4.2 2.0 - 6.2 Extension: Agricultural equipment - 4.6 6.7 1.2 12.5 Laboratory equipment .5 8.4 15.4 .3 24.6 Vehicles 3.0 12.2 8.5 6.2 29.9 Office equipment .4 5.9 4.5 - 10.8 Furniture 1.5 10.8 6.2 - 18.5 Micro computers .3 4.2 1.4 .7 6.6 Radio equipment 1.5 3.0 - - 4.5 Generators - 2.7 1.7 - 4.4 Workshop equipment - .7 .8 - 1.5 Documentation equipment - 2.2 3.4 2.8 8.4 Topographic equipment . 9 1.1 .4 2.4 Total 7.2 76.7 t4.3 11.6 159.8 /a Under PPF financing. /b At base cost. III. PROJECT COSTS AND FINANCING A. Cost Estimates 3.01 Total Project costs, reflecting both ongoing and incremental research activities, but excluding activities financed by other donors or under separate IDA Credits for the three year implementation period 1985-87  - 26 - are estimated at RF 1,740 million (US $18.0 million), with a foreign exchange component of about 48%. Costs include direct taxes of about 5% on civil works, locally procured equipment and operating costs, but exclude import duties since the Government has indicated that these would be waived. Base cost estimates reflect January 1984 prices. Because the PPF, under which a large variety of project items is financed, became effective in mid-1983; December 1984 (date of negotiations) base costs would therefore tend to confuse presentation of project costs. Physical contingencies include 20% for all new construction; 15% for rehabilitation works; 10% for office, radio, furniture and workshop equipment; 5% for all operating costs and training; 15% for documentation equipment, books and periodicals; and 15% for seasonal workers. No provision for physical contingencies has been included for staff and equipment for which numbers are clearly established. Expected price increases are compounded at the following annual rates: Project (Expqtriate (Local year Foreign staff) Local staff) 1984 3.5 (3.8) 9.5 (0) 1985 8.0 (7.5) 9.5 (0) 1986 9.0 (8.5) 9 (10, 15, 30) /a 1987 9.0 (8.5) 9 (0) /a 30% for seasonal and contract workers, 15% for skilled workers and 10% for all higher level staff. Total expected price increases amount to 16% of total Project costs or 21% of base costs. Expected salary increases of local staff account for 34% (US $1.0 million) of the total price contingency provision. The last general salary increase was in 1980. Costs are detailed in the Implementation Volume, and summarized in Annex 7 and Table 3.1.  - 27 - Table 3.1: Summary Project Costs Share of Project base Foreign component Local Foreign Total Local Foreign Total cost exchange - FRW million -- -- US S million -- Capital Costs Civil works 172.6 115.1 287.7 1.8 1.2 3.0 21 40 Vehicles and equipment 19.3 135.5 154.8 .2 1.4 1.6 11 88 Architect and audit fees and studies 1.7 37.8 39.5 - .4 .4 3 96 Cartography 1.5 13.5 15.0 - .2 .2 1 90 Training 4.5 41.1 45.6 .1 .4 .5 4 90 Sub-total 199.6 343.0 542.6 2.1 3.6 5.7 40 63 Research Staff Expenditures Local scientists and technicians 92.1 - 92.1 1.0 - 1.0 7 - Expatriate scientists (a 12.0 108.0 120.0 .1 1.1 1.2 9 90 Sub-total 104.1 108.0 212.1 1.1 1.1 2.2 16 51 Operating Costs Local support staff 266.6 - 266.6 2.7 - 2.7 19 - Expatriate support staff 8.8 79.2 88.0 .1 .8 .9 6 90 Research suxpplies 18.7 56.3 75.0 .2 .6 .8 6 75 Other supplies and services 12.0 17.9 29.9 .1 .2 .3 2 60 Vehicle operating costs 15.7 62.9 78.6 .2 .6 .8 6 80 Infrastructure and equipment maintenance 30.4 28.1 58.5 .3 .3 .6 4 48 Other operating costs 23.6 - 23.6 .2 - .2 1 - Sub-total 375.8 244.4 620.2 3.8 2.5 6.3 44 39 Base Cost 679.5 695.4 1,374.9 7.0 7.2 14.2 100 51 Physical contingencies 43.4 36.5 79.9 .4 .4 .8 6 46 Price contingencies 180.6 106.5 287.1 1.9 1.1 3.0 21 37 Total Project costs 903.5 838.4 1,741.9 9.3 8.7 18.0 127 48 /a Includlig visiting scientists.  - 28 - B. Proposed Financing 3.02 It is proposed that an IDA Credit of US $11.5 million be made to the Government of Rwanda to finance 64% of Project costs. This would cover 90% of all civil works (para. 2.42); 100% of vehicles, equipment and training costs (paras. 2.37, 2.43 and 2.44); 80% of research supplies, vehicle operating costs, infrastructure and equipment maintenance; 100% of four key expatriate staff (paras. 2.36 and 2.39), two expatriate research workers (para. 2.41) and 56 man-months of short term consultants and visiting scientists (para. 2.38), architect's fees and annual audits (para. 2.42). Of the total US $5.3 million Government participation, 92X or US $4.9 million would be earmarked for local staff salaries, of which US $1.0 million or 20% for salary increases expected in 1986 (para. 3.01). A formal commitment has been obtained from the Government at negotiations that it would make the necessary annual budget allocations to meet its contribution. Table 3.2: Proposed Project Financing Project Component Total IDA GOR ISAR IDA --- (USmilin) - - lO Capital Costs Civil works 3.6 3.2 .4 - 90 Vehicles and equipment 1.6 1.6 - - 100 Consultant fees and studies .3 .3 - - 100 Cartography .2 .2 - - 100 Training .5 .5 - - 100 Research Staff Expenditures Local scientists and technicians 1.0 - 1.0 - - Expatriate scientists 1.2 1.2 - - 100 Operating Costs Local support staff 2.7 - 2.7 - - Expatriate support staff .8 .8 - - 100 Research supplies .8 .6 - .2 80 Other supplies and services .3 - - .3 - Vehicle operating costs .9 .7 - .2 80 Infrastructure and equipment maintenance .6 .5 - .1 80 Other operating costs .2 - - .2 - Refunding PPF .3 .3 - - 100 Contingencies (price) 3.0 1.6 1.2 .2 53 Total 18.0 11.5 5.3 1.2 64 Percentage 100 64 29 7  - 29 - C. Financial Implications and Budget Procedures and Reviews 3.03 Financial Implications for the Government. Currently (1984), ISAR is supported for RF 60 million (US $0.6 million) by the Government, and for RF 35 million (US $0.4 million) by its own income from sales of produce (Annex 1). Over the three year project period, Government's total incremental outlays would be RF 320 million (US $3.4 million), of which RF 40 million (US $0.4 million) as counterpart funds for the civil works component and the rest, RF 280 million (US $3.0 million) for local staff salaries. Of the latter amount, RF 98 million (US $1.0 million) is earmarked for a general wage increase expected in 1986. 3.04 Annual Budget Procedures and Review. Paras. 4.06 and 4.07 describe the procedures for formulation, review and submission of the annual research programs. Appended to these programs, ISAR will submit a financial budget for expenditures to be incurred during the year. The first program aid annual budget for 1985 has been submitted to IDA prior to negotiations. Fir subsequent years, ISAR will submit by September 30 the programs and budge: for the following year. The annual budget will include the following: i) A detailed list of investment items to be procured during the year, indicating approximate costs and proposed procurement procedures (para. 3.05). (ii) An estimate of total operating costs during the year by various categories as determined by ISAR. Principle items are likely to be: salaries of local staff, vehicle operating costs, consumable supplies, staff travel indemnities, maintenance, transport and other services. (iii) A financing plan, both for capital expenditures and operating costs, indicating total amounts to be paid by ISAR and those proposed for IDA financing. (iv) A formal assurance from the Government that the amount indicated in the financing plan for subsidies to ISAR has been allocated in the budget and will be made available to ISAR during the year. If not, IDA's approval would be withheld until the budget has been voted by the National Assembly. Following a review, the Bank would advise ISAR of its approval of the annual program and budget by November of each year. The first budget (for 1985) has been discussed and agreed during negotiations. Annual approval by IDA of the research programs and budgets would be a condition of disbursement for vehicles, equipment and operating costs for replenishment of the revolving fund (para. 3.09) and for direct payments for vehicles, equipment and operating costs (para. 3.06, Categories II and V).  - 30 - D. Procurement and Disbursement 3.05 Procurement procedures are summarized in Table 3.3. Given the scattered nature of works, no international contractors of civil works are expected to be interested. Therefore, all new civil works to he financed by IDA (US $3.5 million) would be locally procured under bidding documents, divided into lots to be proposed by the executing architects and allowing bidding for one, several or all of the lots. IDA would review: (i) the bidding documents and bid award procedures; and (ii) the bid evaluation and proposed contracts prior to contract award, for all civil works estimated to cost over US $100,000. All rehabilitation works (US $0.6 million), much of which is delayed maintenance, will be divided into lots for which three contractors would be invited to submit proposals. For lots exceeding an estimated cost of US $50,000, local procurement procedures will apply. Architectural designs, preparation of bidding documents and supervision of works for a total estimated cost of US $0.4 million are being undertaken by an architectural firm acceptable to IDA. Three annual lots of vehicles and tractors (US $0.7 million) would be procured through local competitive bidding amongst all locally represented manufacturers with adequate repair facilities. For lots exceeding an estimated cost of US $100,000, international competitive bidding procedures will apply following IDA guidelines. Because of the nature of research, purchase of specialized equipment and renewals (US $0.3 million) from one manufacturer only would be allowed. All other equipment (US $0.7 million) would be procured based on price quotations from at least three local or foreign suppliers. Grouped equipment purchases exceeding US $50,000 would require local competitive bidding and prior Bank approval of bidding documents and draft contracts. For research supplies (seeds, fertilizers, pesticides, animal feed, hand tools, etc.), vehicle operating costs (gas, spare parts and external repair bills), and infrastructure and equipment maintenance (spare parts, construction materials and external invoices), for a total estimated cost of US $2.8 million, direct purchases from one supplier only would be allowed. However, whenever possible, purchases would be grouped and procured based on price quotations from at least three local or foreign suppliers. Grouped purchases under this category exceeding US $50,000 would require local competitive bidding and prior Bank approval of bidding documents and draft contracts. Contracts for goods and services estimated to cost more than US $100,000 would be procured through international competitive bidding following IDA guidelines. Items under this category, presently identified, are multicolor printing of maps (US $190,000). Two expatriate staff (estimated cost US $755,000) have been recruited through ISNAR and two (estimated cost US $585,00) would be recruited through ILCA. Visiting scientists (estimated cost US $675,000) and two expatriate staff (estimated cost US $495,000) would be internationally recruited following procedures acceptable to IDA. Auditors (estimated cost US $55,000) acceptable to IDA have been recruited. Training fellowships (estimated cost US $560,000) are being obtained following procedures acceptable to IDA.  - 31 - Table 3.3: Procurement Procedures Disbu rsemuent Total Category ICB LCB Other /a N. A. costs -US $ million I. Civil works - 3.5 0.6 - 4.1 (3.1) (0.4) (3.5) II. Vehicles and equipment - 0.7 1.2 - 1.9 (0.7) (1.2) (1.9) III. Expatriate staff and - - 2.7 - 2.7 consultant fees (2.7) (2.7) IV. Training and printing 0.2 - 0.5 - 0.7 (0.2) (0.5) (0.7) V. Eligible operating - - 2.8 - 2.8 costs (2.4) (2.4) VI. Refunding PPA - - - 0.30 0.30 (0.30) (0.30) Other operating costs and local staff - - 5.5 5.5 Total costs 0.2 4.2 7.8 5.8 18.0 (Total IDA) (0.2) (3.8) (7.2) (0.3) (11.5) =~ ~~~~~~~ = /a Shopping (three suppliers) or sole source. 3.06 A Schedule of Disbursements is at Annex 8. The proceeds of the IDA Credit would be disbursed as follows: Category I: Civil works, 90Z of total expenditures (US $3.0 million) Category II: Vehicles and equipment, 100% of foreign expenditures and 90% of local expenditures (US $1.4 million) Category III: Expatriate staff, auditors, architect's fees and short term consultancies, 100% (US $2.3 million) of total expenditures Category IV: Training and printing costs (cartography), travel allowances for students and faculty members of the Agriculture Facilty and  - 32 - Geographic Department of the National University of Rwanda, 100% of total expenditures (US $ .7 million) Category V: Research supplies (seeds, fertilizers and pesticides), vehicle operating costs (gas, spare parts and external repair bills), and infrastructure and equipment maintenance (external bills, spare parts and materials), 100% of foreign expendi- tures and 90% of local expenditures (US $1.6 million) Category VI: Refunding of the Project Preparation Advance (US $ .? million) Category VII: Initial deposit into Special Account (US $ .8 million) Category VIII: Unallocated (US S1.4 million) E. Accounting Procedures 3.07 ISAR has a generally sound and acceptable accounting system for the type and level of its current activities. The existing procedures, and mainly manual accounting system, are those instituted by the Belgians. Bank preparation and appraisal missions have, however, identified several weaknesses and areas for further improvements: (i) Since the departure of the Belgians in 1982, there has been a lack of adequately qualified accounting staff as a result of which there is a backlog in maintenance of up-to-date accounts. For example, the system provides for 'cost accounting" (i.e. breakdown of all expenses by ISAR's major programs or activities). Such accounts have not been prepared since 1981. (ii) The present procedures do not fully integrate accounting for expenses (and revenues) of several research projects which are implemented by external donors or through other intermediaries (such as under the BGM project). (iii) Although ISAR prepares budgets at irregular intervals (mainly to substantiate requests for funds from the Government), there are no clearly defined procedures for annual budgets, its follow-up and the budget is not used for internal management of research programs nor allocation of priorities, etc. (iv) Until recently, ISAR's annual accounts were not subjected to an independent audit. Although the 1982 accounts of  - 33 - ISAR were examined by Commissaires aux Comptes from the Ministry of Finance, such examination does not constitute a complete audit of annual financial statements as normally required by the Bank. 3.08 To correct the above deficiencies and as part of project preparation efforts, the Bank has agreed on the following action with ISAR: (i) ISAR, in consultation with the Bank, has signed a contract with a qualified consulting firm under which this firm will provide a qualified and experienced staff as head of ISAR's Accounting and Administrative Services Department. The Bank was consulted on the appointment of the expatriate officer who joined ISAR in March 1984. His terms of reference include bringing the accounts up-to-date, making changes to accounting procedures required to integrate financial management of all research activities under ISAR's control, recruitment of additional staff and instituting adequate procedures for efficient operation of common services (garage, workshop, financial aspects of station managements, etc.). The services of this expatriate officer are being financed under the PPF. (ii) ISAR had its 1982 accounts audited by an acceptable external auditor. The 1983 audited accounts were available at negotiations. 3.09 Disbursement Procedures and Imprest Account for Disbursements under the IDA Credit. No expenditures for vehicles, equipment and operating expenditures relating to any year will be eligible for financing under the IDA Credit until the program and budget for that year have been approved by IDA. ISAR will claim withdrawal for expenditures under the usual Bank procedures, including reimbursement of expenditures pre-financed by ISAR, direct payment to suppliers, etc. Under the Project, however, ISAR is likely to incur expenditures for numerous small amounts. To facilitate disbursements of these and to reduce the number of withdrawal applications to be processed, IDA would soon after the Credit becomes effective, advance to ISAR a sum of US $800,000, corresponding to approximately three months expenditures over the first two years of the Project (construction period), increased by 20X. ISAP would utilize tnese funds to commence project implementation. This should enable ISAR to group claims for reimbursement and submit withdrawal applications of not less than US $20,000. The advance would be disbursed in US dollars by IDA in the first instance into a Special Account with the National Bank of Rwanda. This account will be used to pay: (i) expenditures in foreign currency and possibly salaries of expatriate staff; and (ii) local expenditures for civil works, vehicles, equipment and operating costs. Transactions for all expenditures will be effected using the exchange rate of the day. Funds in the Special Account cannot be mixed with funds from other sources.  - 34 - 3.10 Disbursements on Statements of Expenditures (SOEs). ISAR would claim reimbursement on the basis of Statements of Expenditures for: (i) civil works contracts costing less than US $50,000 equivalJnt (Disbursement Category I); (ii) vehicles, equipment, goods, services and operating costs for single items or contracts costing less than US $15,000 equivalent (Disbursement Categories II, IV and V); and (iii) consulting services contracts costing less than US $50,000 equivalent (Disbursement Category III). Withdrawals for local expenses above these limits and for expenditures in foreign curency in excess of US $5,000 equivalent would be fully documented (invoices, evidence of payment, etc.). The suitable format for this has been agreed at negotiations and will be confirmed as part of the disbursement letter. ISAR will maintain all the relevant supporting documents for reimbursement claims under SOE for inspection by supervision missions. During the course of the annual audit of ISAR's accounts, the auditor will be requested to certify that all expenditures claimed under SOEs during the year have been properly incurred for the Project. ISAR's accounts will be audited by independent auditors acceptable to IDA, and their report would be submitted within six months of the end of ISAR's fiscal year. IV. ORGANIZATION AND MANAGEMENT A. General Management 4.01 ISAR's existing disciplinary oriented research departments would be reorganized in the first phase in four scientific departments: crops research, farming systems research, livestock research, and forestry and agro-forestry (Chart 1). Research on soils and erosion control would be integrated in the farming systems research department. Entomology and phytopathology would be integrated in the crops research department. Central support services - documentation, central laboratories, data processing and statistics - would be regrouped with research station management in one Financial and Administrative Service. The purpose of the reorganization is to reorient ISAR's staff into practical adaptive research through multidisciplinary teamwork. As part of the reorganization, the stations will be reorganized as services that are for all administrative and financial matters (accounting and budget control) supervised by the Head of the Financial and Administrative Service, to emphasize the fact that the stations will implement the research programs under the supervision of research teams rather than operate as independent units as at present. The Managing Director of ISAR would have overall  - 35 - responsibility for project implementation. His office would be strengthened by the establishment of an internal ISAR Research Committee (para. 4.06) and Research Programming and Evaluation Unit (para. 2.31). Within the reorganized ISAR structure he would delegate most of the daily research management to the four Department Heads for: (i) crops research; (ii) production systems research; (iii) livestock research; and (iv) forestry and agro-forestry research. Accounting and financial management would be delegated to the Read of the Financial and Administrative Service who would be in charge of accounting, cost accounting, budgeting, personnel administration and common support services including workshops, documentation, central laboratories and the data processing and statistics unit. 4.02 The Environmental Studies and Production Systems Department. Under the Project this department would be newly created. Initially, the department would have three field operations: Bugesera, Zaire-Nile divide and Rwerere. Its functions would consist of: (i) support to the field operations (surveys, cartography, soil physics and soil fertility analysis, etc.); (ii) programming of component research; Ciii) coordination of OFR/FSP activities of the department with MINAGRI (extension services, MINAGRI, etc.) and rural development projects; and (iv) synthesis of the results of the field operations in view of a broader diffusion of research results and to define OFR/FSP guidelines for future operations. Initially, the department's central scientific staff at Rubona would consist of: a department chief, a farming systems agronomist, an agricultural economist, a rural sociologist and a geographer. They would fully participate in the three regional progratis in their respective fields of conpetence, since the field teams would consist of two, maximum three, scientists only. The four scientists at Rubona would be recruited over the next three to four years. In other words, the department would be gradually established once the regional programs would become fully operational. 4.03 During negotiations, Government confirmed that ISAR's reorganized administrative structure had been approved by its Board of Directors. Because of the location of ISAR's headquarters in Rubona (without even telephone communicatior with Kigali), coordination and liaison with MINAGRI and other ministries has in the past been extremely difficult. At negotiations, assurances were obtained that ISAR would maintain a permanent liaison office in Kigali. 4.04 Aid Coordination. To ensure the desired coordination in implementation and financing of the overall research effort, Government  - 36 - would invite annually all bilateral and international agencies interested in the financing of agricultural research in Rwanda to review research concepts, staffing and financial support for ISAR. To meet this requirement, the Minister of Agriculture, Livestock and Forestry would furnish by September 30 of each year to all agencies, including IDA, the proposed research programs, corresponding work programs, budgets, financing plan, staffing and training program and research program review schedule (paras. 4.06 and 4.07) for comment and suggestions. IDA approval of these documents, following their consideration by the above agencies, would be a condition of disbursement for Categories II and V (para. 3.06). The documents for 1985 would be distributed upon signature of the Development Credit Agreement. A first donor meeting was held during appraisal. B. Research Management 4.05 Because multidisciplinary research needs careful programming and coordination, one scientist in each national or regional research team would be appointed as program coordinator (team leader). His task would be to prepare and present, in cooperation with his colleagues, the annual research program, the program budget and the annual report. In addition, he would be responsible for daily coordination of the research work and budget control. The program coordinators would be directly responsible to their respective Department Heads. Detailed terms of reference for a research program coordinator are at Annex 3. A coordinator should not be perceived as another layer in the hierarchy; he is in the first place a research worker. His coordinating role is most apparent in the preparation of the annual research programs and reports. Because several crop research programs are limited in scope, a research worker may work on more than one crop at a time. Therefore several crops will be grouped under one national program coordinator as follows: (i) A legumes program consisting of beans, peas, soybeans and groundnuts. (ii) A cereals program consisting of maize, sorghum, wheat and triticale. (iii) A tuber program consisting of cassava, sweet potatoes and potatoes. (iv) An industrial crop program consisting of coffee and tea. (v) A fruit crop program consisting of bananas and avocadoes.  - 37 - C. Internal and External Research Program Review 4.06 Internal Program Review. Annually, each of the national and regional research teams would prepare its own research proposals and corresponding budgets for the coming year under the supervision of the Department Heads and accor7ing to a format designed by the Research Programming and Evaluation Advisor. These would subsequently be discussed and agreed upon by ISAR's Research Committee consisting of the Department Heads, the Programming and Evaluation Advisor (the Committee's secretary), the Station Chiefs and two senior representatives of the research workers under the presidency of ISAR's Managing Director. Subsequently, each research team would prepare the research protocols and detailed budgets for each program within the limits of the budget allocations decided ty the Research Committee. The quality control of the research protocols is the responsibility of the Department Heads, thereby assisted by the Research Programming and Evaluation Advisor. Once the detailed budgets are established, ISAR's overall budget and programs are presented to its Board of Directors for approval. The Ministry of Agriculture's representatives on the Board have two weeks to approve the programs and budgets or propose alternatives. A new law is under consideration whereby ISAR's programs would be reviewed by a National Research Council. It may take several years before this law would come into effect. The purpose of the law would be to integrate agricultural research in a national research strategy and to amplify internal program review. 4.07 External Program Review. Under the Project, funds are included for visiting scientists (para. 2.38). These scientists would be specialists in their field, and they would be recruited under terms of reference and qualifications acceptable to IDA. They would review past research results, advise on research orientation and review program proposals. In cases where national research institutes or IARCs are involved under formal agreements with ISAR, these institutes would provide for external program reviews. Since agricultural research programs are generally set up for periods from three to five years, ISAR would arrange in all cases for external program reviews at the end of each program prior to decide on its continuation or reorientation. In the case of the longer programs (five years or more), ISAR would also arrange for midterm reviews. ISAR would include in its annual budget proposals to be presented to the agencies financing agricultural research in Rwanda and IDA (para. 4.04), a detailed planning of program reviews to be ur2ertaken over the year, as well as the results of last year's reviews. D. Station Management 4.08 The most important function of a research station manager is to provide the best possible physical support services to realize the full production potential of the highly qualified scientists working on the station. This function becomes even more important for coordinated  - 38 - multidisciplinary research that is highly field oriented. Research station management exists primarily to serve the needs of the research staff. Its responsibilities would include: maintenance of buildings and grounds; vehicle and equipment maintenance and repair, operation of the station's vehicle pool; soil preparation, cultural care, assistance in seeding and harvesting experimental plots; the care of livestock; seed and feed production and other service duties prescribed by proper authority. Details of a station director's required qualifications (senior level officer of Grade A2 or above) and responsibilities are at Annex 3. 4.09 ISAR presently operates seven stations outside Rubona for research activities: Songa, Ruhande, Karama, Gisovu, Ruhengeri/Kinigi, Rwerere and Tamira. These stations vary in size, management structure and scope of activities. The Gisovu and Ruhengeri/Kinigi stations have been operating as autonomous stations, but are currently being integrated in ISAR's station network. Under the Project, an eighth station at Gishwati for small ruminants research will be added to this network (financed under Credit 1039 RW). For research and technical activities within the station, the station director will report to the program coordinators and/or Department Heads as appropriate. For all financial, administrative and personnel matters, he will be answerable to the Head of the Financial and Administrative Service. The station director will be empowered to authorize the expenditures of all funds provided for the general experiment station budget (general farming operations, maintenance, etc.). It would be his responsibility to see to it that funds budgeted for research in the coordinated research programs at his station are distributed according to the official budget. Because the budgets for these programs are prepared by the program coordinators and because the funds are allocated specifically to carry out these programs, the station director would not have the authority to shift these to other programs or prohibit their expenditure for properly budgeted purposes. E. Reporting 4.10 At negotiations, it has been agreed that: (i) ISAR's Managing Director would introduce by June 30, 1985, a project reporting system, including quarterly progress reports (civil works, procurement, project expenditures, recruitment, training, etc.) and annual scientific reports; the reporting format would be proposed by ISAR's management and reviewed by IDA; (ii) ISAR's management would prepare and forward not less than three months prior to the end of ISAR's fiscal year its annual work program and budget, after internal and external reviews (paras. 4.04, 4.06 and 4.07) to IDA for approval; and (iii) ISAR would within six months of the closing date of the proposed Credit, prepare a project completion report. The draft annualwork progam and budget would show a breakdown by research program, as well as proposed lists of all infrastructure, vehicles, equipment and research supplies to be acquired for the Project for the following year by donor. The first budget covers the period January 1,  - 39 - 1985, through December 31, 1985, and has been submitted to IDA at negotiations. IDA approval of the annual work programs and budgets would be a condition of disbursement of funds for vehicle and equipment expenditures and operating costs, and for the replenishment of the revolving fund (para 3.09). 4.11 The Research Programming and Evaluation Advisor (para. 2.31) financed under the Project, would design and implement the reporting system described above (para. 4.10). This system would provide a dual service to ISAR's General Manager and Department Heads as a data collection, analysis and advisory system, and the Government and ISAR financiers as a source of information for effective project supervision and impartial assessment of performance. The Research Programming and Evaluation Unit would also be responsible for: (i) preparing and guiding the annual internal and external research program and budget reviews; (ii) preparation and publication of ISAR's annual scientific reports by June 30 of each year; (iii) preparation and publication of the quarterly project progress reports and a project completion report (para. 4.10); and (iv) acting as a secretariat to ISAR's Scientific Committee. F. Research Master Plan Preparation 4.12 The Ministry of Agriculture, Livestock and Forestry would have final responsibility for the preparation of the master plan for agricultural research (paras. 2.02 and 2.39), since its purpose would be to respond to farmers' needs and Rwanda's Iong term agricultural sector strategy. The expatriate staff to be recruited under the Project is expected to be in position by June 1985. By September 1985, the Ministry would present a first outline for the master plan, including detailed terms of reference for additional studies to be undertaken in respect of various sub-sector strategies (industrial crops, food crops, livestock, etc.), status of agricultural research in neighboring countries, a national seed control and certification system, a long term agricultural research manpower development plan, a national information system for the dissemination of research results and extension themes, etc. A study and possible reorganization of the national extension system would be undertaken sinultaneously under a separate project presently under preparation. A draft master plan would be available by June 1986, to be finalized after review by all aid agencies, including IDA and the Government by September 1986. This would allow one year to prepare a follow on agricultural research project corresponding with the first five year tranche of the master plan. The Ministry would prepare annual budgets for review by IDA and semi-annual progress reports for the master plan study. ISNAR would provide consulting services in specialized subjects.  - 40 - G. Research-Extension Liaison 4.13 Institutionalized liaison mechanisms between research and extension do not exist at the present time. A project aiming at strenghthening the national agricultural extension system is in an advanced stage of preparation for IDA financing (para. 1.15), and would specifically address the issue of poor communication mechanisms between services in the agricultural sector, including the national agricultural research system. Nevertheless, the project would actively promote a closer collaboration at the grass roots level between research and extension workers through research contracts for on-farm adaptive research (para. 2.41). In several ongoing projects financed by IDA (para. 1.12, Credit Nos. 1039, 1126 and 1283 RW), and other donors, a close working relationship has already been established with the extension services. However, in the future it will become increasingly important to institutionalize feedback from extension through the program review process (paras. 4.06 and 4.07). In fact, such a system does exist, albeit in embryo form, through the annual program and budget review by ISAR's Board of Directors in the person of MINAGRI's representation (para. 4.06). Proposals for further strengthening of institutionalized feedback mechanisms from extension will be developed during the research master plan preparation (paras. 2.02 and 4.12) and as part of a new national extension system. One of the studies already being undertaken in this respect concerns the appropriateness of present extension themes. H. Civil Works 4.14 A firm of executive architects has been hired in agreement with IDA under PPF financing to prepare the plans for building construction and site development, implementation schedules, bidding and contract documents, carry out bid analysis, to advise on the award of contracts and to supervise construction. ISAR would obtain the services of a Technical Liaison Officer for the duration of the construction period. The Technical Liaison Officer would be responsible for: (i) supervision and liaison with the executive architects; and (ii) liaison with research staff on building design. Detailed terms of reference for the executive architects and the Technical Liaison Officer a-e at Annex 3. ISAR would seek IDA approval of the civil works component of the Project in three stages: (a) preliminary design and cost estimates;(b) detailed design, architect's confidential cost estimates and bidding documents; and (c) bid evaluation and award. Preliminary design and cost estimates have been reviewed at appraisal. Detailed design and architect's confidential cost estimates have been reviewed during negotiations.  - 41 - I. Implementation Schedule 4.15 The Project would provide the institutional framework for a better coordination of agricultural research activities - the introduction of nationally coordinated multidisciplinary research teams, the establishment of an Environmental Studies and Production Systems Department within ISAR and the introduction of on-farm research. This new orientation will he gradually introduced over the three year project period to prepare ISAR for its role in the execution of the agricultural research master plan to be prepared under the Project. The phasing of the main project activities is illustrated in Chart 2. Detailed engineering design for infrastruture rehabilitation and construction including architect's confidential cost estimates was available prior to negotiations. Bidding documents would be available by the time of Board presentation. Execution of the works by contractors is expected to take two years. Most of the vehicles and equipment would also be procured over the first two years of the Project (Table 2.2). The Senior Research Programming and Evaluation Advisor and the Financial Director, both financed under the PPF, were in position by March 1984. The research master plan preparation is expected to be completed by the end of the second year of the Project, leaving one more year for the preparation of the second agricultural research project, as a first phase of the execution of the master plan. V. BENEFITS AND JUSTIFICATION 5.01 It is generally accepted that a strong national agricultural research system integrated into the rural development process, with problem-oriented research focussed on farmer's needs, can make an important contribution towards improving the lot of the rural population through improving the quantity, quality and productivity of food, as well as cash crops. To a large extent, however, only in extreme cases would private entrepreneurs engage in agricultural research, especially in developing countries, since research results cannot often be marketed as private goods. Thus, it devolves on governments to invest in research to maintain and improve growth in the agricultural sector. Government involvement is also necessary to: (i) generate cooperation between researchers; (ii) direct research to meet national needs and objectives and in the appropriate direction; (iii) meet the large capital outlays which may prove excessive for the private sector; and (iv) create an effective institutional framework in which research forms part of the crop production system, and to avoid the research effort being spread too thinly between a multiplicity of ministries, institutes and projects. 5.02 No attempt has been made in this report to quantify the ex ante economic rate of return of the Project for several reasons: Ci) The outcome from research activities is uncertain and attempts to give values to unknown results would be highly subjective and speculative.  - 42 - (ii) The time lag between investment and research findings, as well as between findings and adoption, is uncertain. Adoption of research findings, for example, is related to a variety of factors which may not be directly linked to the research but dependent on Government policy. (iii) The actual amounts expended on research and research related activities are difficult to estimate since they may include costs of extension, training and development projects which may or may not be directly related to the research project. (iv) Research sometimes may yield results not related to the purpose of the initial research but which nonetheless are useful and add to the pool of knowledge necessary for subsequent research efforts. 5.03 Despite the difficulty of an ex-ante estimation of the economic rate of return, ex post calculations of rates of return on successful agricultural research have been found to be high in all such studies completed (Annex 9). In virtually all cases, the estimated internal rates of return have been higher than the opportunity cost of capital and higher than the rates of return estimated for most development projects in those countries. Thus, some crop programs in Latin America and Asia have been evaluated at between 35% and 102%; applied research in LDCs has shown an average rate of 42%, and scientific research 60%. Attainment of high economic rates of return depends on research focus and careful monitoring and evaluation at reasmnable operating and maintenance costs. 5.04 Risks. The above discussion should not be taken to suggest that all agricultural research that could be undertaken in Rwanda would have a high economic rate of return. A number of factors may affect the success of the Project and these include: Ci) ISAR's middle level and research management staff does not have in all cases the required qualifications and experience, and their upgrading may take more time than expected and slow down project execution. (ii) Lack of sufficiently trained local research staff and the time lag in their training, as well as possible unavailability of trained expatriates to carry out a true systems research effort. (iii) The possibility that the linkages between research, extension and agricultural development activities are not completely developed, whereby inefficient diffusion of newly generated technology would delay the impact of the Project at the level of the farmer. 5.05 Risks that are specifically addressed under the Project which may nevertheless delay new technology generation include:  - 43 - (i) Government financing may not be available to execute all the research programs as conceived. (ii) Program segmentation, where given the multiplicity of co-financiers there is a possibility that their research interests may not coincide, and hence programs may be executed in fragments. (iii) The possibility that ISAR may be slower than expected in shifting research emphasis from the present disciplinary research towards problem-oriented research using multidisciplinary teams to tackle priority problems. 5.06 The major general risk is that the various problems may bog down the reorientation of research and hence, delay possible results. However, the Government is fully committed to the Project and a general consensus exists with ISAR on the proposed research programs. Moreover, a number of measures have been proposed in the Project to ensure that the probability of any of the specific risks becoming real is reduced to the minimum. The systems teams are to be kept as small as possible, with a coordinator responsible for ensuring that research is focussed on the resolution of pressing problems. The reorganization of the Project executing agency, ISAR, will ensure that all agricultural research is organized from a systems perspective. There will be a Research Programming and Evaluation Unit responsible for overall planning and evaluation of research. The multidisciplinary teams would focus research on understanding how all significant factors relate and interrelate within the production process and would set priorities as a team avoiding individual biases. The linkage of research to extension through on-farm experimentation by extension workers should also have a high chance for success, and would give to both the scientist and the extension worker a unique insight into farmers' practical problems. Annual internal and external review processes established for the Project and the aid coordination proceeures should ensure that research is problem-oriented and congruent with the Government's agricultural development plans. The multiplicity of donors should make it possible to obtain enough qualified expatriate staff to man the Project for the first few years while Rwandese staff are in training. The Project has therefore recognized the existence of risks and designed procedures to minimize them. The expected benefits should outweigh the costs and from the national perspective, even one research component that is a major success could finance or justify the total agricultural research effort for years, and those that may fail are part of the cost to be borne by those that succeed. Cost minimization can be achieved through careful design of the research organization, staff development, constructively critical project evaluation, ex ante and ex post program and project monitoring, and adequate funding; and the Project is designed to do all these.  - 44 - VI. AGREEMENTS REACHED WITH THE BORROWER, CONDITIONS AND RECOMMENDATIONS 6.01. At negotiations, assurances have been obtained from the Government on the following principal points: (i) Project staff would be appointed for periods which are appropriate to the demands of the research programs in question and key project staff would have qualifications and experience acceptable to IDA (para. 2.34). (ii) ISAR would maintain throughout the disbursement period of the Project a research programming and evaluation adviser (through ISNAR), and a financial director, both with qualifications, experience and terms of reference acceptable to IDA (para. 2.35). (iii) (a) ISAR would recruit internationally an animal production systems specialist (para. 2.35) and an animal nutrition/fodder crops specialist (para. 2.36) (both through ILCA); a senior agricultural economist specialized in farming systems research (para. 2.36); and (b) MINAGRI would recruit internationally an agricultural economist (para. 2.39), all with qualifications, experience and terms of reference acceptable to IDA. (iv) ISAR would submit annually to all bilateral and international agencies interested in the financing of agricultural research in Rwanda for review and to IDA for approval a detailed training program for its staff (para. 2.37). (v) ISAR would, no later than early 1986, organize a thorough independent analysis of farming systems research to review the first results of ongoing research in this field in Rwanda (para. 2.37). (vi) (a) The Agronomic Faculty and the Geographic Department of the University of Rwanda would submit annually their proposed research programs and corresponding budgets to IDA for approval; and (b) ISAR will only make payments to the University of Rwanda for approved budget items and properly incurred expenses (para. 2.40). (vii) By September 30 of each year ISAR would submit its work program and budget for the following year with supporting documents to all bilateral and international agencies interested in the financing of agricultural research in Rwanda for comment and review and to IDA for approval (para. 3.04).  - 45 - (viii) (a) ISAR's accounts and the project revolving fund would be audited by independent auditors acceptable to IDA; (b) the report of the auditors would be submitted to IDA within six months of the end of the ISAR fiscal year; and (c) the report of the auditors would be of such scope and in such detail as IDA may reasonably request, including a statement as to whether or not IDA funds had been used for their intended purpose, and a certification that all expenditures claimed under SOEs during the year have been properly incurred for the Project as designed (paras. 3.09 and 3.10). (ix) ISAR would maintain a permanent liaison office in Kigali (para. 4.03). (x) Government would invite annually all bilateral and international agencies interested in the financing of agricultural research in Rwanda to review research concepts, staffing and financial support for ISAR (para. 4.04). (xi) ISAR would submit with its annual work program and budget to all agencies financing agricultural research in Rwanda for review and IDA for approval: (a) a detailed schedule of independent annual, midterm and final research program reviews; and (b) a list of visiting scientists for either research program support or program review, and their proposed terms of reference (para. 4.07). (xii) By March 31, 1985, ISAR's management would propose a project reporting system, including quarterly progress reports and annual scientific reports for review by IDA (para. 4.10). (xiii) ISAR would prepare a Project Completion Report according to guidelines to be agreed upon with IDA, within six months of the closing date of the Credit (para. 4.10). (xiv) The Ministry of Agriculture, Livestock and Forestry would present: (a) by September 1985, a first outline of a master plan for agricultural research including a schedule and detailed terms of reference for additional studies for review and approval by IDA; (b) by June 1986, a draft master plan for agricultural research, including among others, detailed proposals for a national seed control and certification system, a national information system for the dissemination of research results and extension themes, and a long term research staff manpower development and training plan, for review by the Government of Rwanda, all agencies financing agricultural researcb in Rwanda and IDA; (c) by September 1986, a  - 46 - final master plan for agricultural research, and detailed proposals and terms of reference for the preparation of a second agricultural research project; and (d) by June 1987, a preparation report for the second agricultural research project (para. 4.12). (xv) The Ministry of Agriculture, Livestock and Forestry would present to IDA for review: (a) two months before the start of each fiscal year, a detailed work program and budget for the preparation of the master plan for agricultural research; and (b) semi-annual progress reports for the master plan and the second agricultural research project preparation studies (para. 4.12). (xvi) (a) All bidding documents for local and international competitive bidding on civil work contracts would be subnitted to IDA for approval; and (b) bid evaluation results and draft contracts for civil works would be submitted to IDA for approval prior to bid award (para. 4.14). (xvii) ISAR would obtain the services of a Technical Liaison Officer to supervise the execution of engineering and construction contracts for the duration of the construction (para. 4.14). 6.02 As a condition of Credit effectiveness, ISAR would enter into a formal agreement with ICRAF for support to and regular review of ISAR's agro-forestry research programs, and for providing technical assistance and training of ISAR's agro-forestry research staff (para. 2.29). 6.03 Conditions of disbursement are: (i) That no withdrawals would be made from the IDA Credit for civil works in Karama or Songa until: (a) ISAR has entered into a formal agreement with ILCA for support to and regular review of ISAR's livestock research progams, and for providing technical assistance and training of ISAR's livestock research staff (para. 2.24); and (b) IDA has received an independent advice by an ILCA expert on the usefulness of extending ISAR's cattle breeding program (para. 2.27). (ii) That no withdrawals would be made from the IDA Credit for replenishment of the revolving fund for expenditures for vehicles, equipment and operating costs until all agencies financing agricultural research in Rwanda have reviewed, and IDA has approved, ISAR's annual operating budget, research programs, financing plans, proposed investments by procurement procedure, training schedule,  - 47 - research program staffing and external research program review schedule. A formal assurance from the Government to make the necessary budget allocations as indicated in the financing plan is an additional condition of budget approval (paras. 2.37, 3.02, 3.04, 4.07 and 4.10). 6.04 With the indicated assurances and conditions the proposed Project would be suitable for a Credit on standard terms of SDR 11.7 million equivalent to the Government of Rwanda.  - 48 - Annex 1 Page 1 RWANDA AGRICULTURAL RESEARCH PROJECT Sector and Sub-sector Background I. AGRICULTURAL PRODUCTION TRENDS 1. Food Crops. As suggested by production data provided in Table 1, food crop production increased by about 50% during the last ten years, with growth comIng mainly from an expansion in the area under cultivation. The area under peas declined by one third because they are mainly grown on fallow land. The yields of the two basic staple crops - bananas and beans - covering together 50% of the total planted area, declined by about 20%, probably because they are increasingly grown on marginal soils in the eastern part of the country under semi-arid conditions or at too high altirudes close to the temperature limit for these crops, and in high altitude areas where soils are becoming increasingly acid. Sweet potatoes, on the contrary, seem to thrive because they are increasingly grown on formerly uncultivated and annually reclaimed swamp soils (mainly peats). Yields of all the other food crops remained fairly stable. Up to very recently no research has been done on bananas and peas in Rwanda, and only limited researcn on beans.  - 49 - Annex 1 Page 2 Table 1: Trends in Food Crop ProducLion, Acreage and Yields Production Area Planted Yields ('000 mt) ('000 ha) (at/ha) 1970 1980 increase 1970 1980 increase 1970 1980 increase Bananas 1,656 2,063 24 146 225 54 11.3 9.2 -19 Sweet potatoes 379 871 130 65 114 75 5.8 7.6 31 Cassava 330 542 64 28 46 64 11.8 11.9 1 Beans 145 181 25 161 257 60 .9 .7 -22 Sorghum 141 179 27 132 145 10 1.1 1.2 9 Potatoes 134 217 62 21 32 52 6.4 6.7 5 Peas 64 35 -45 76 51 -33 .8 .7 -13 Maize 50 85 70 50 72 44 1.0 1.2 20 Peanuts 15 16 7 16 ]7 6 .9 .9 - Soybeans * 4 * * 5 * * .8 * 695 964 39 Not available. Source: Ministries of Agriculture and Planning. 2. Export Crops. Although export crops occupy less than 5% of the total cultivated area of Rwanda and contribute about 5% of GDP, they constitute the major source of foreign exchange earnings for the country. The four principal export crops - coffee, tea, pyrethrum and cinchona - accounted for an average of 75% of the total value of exports during the last five years, 80% in 1981. Coffee continues to dominate in export crop production, accounting in 1981 for 80% of total agricultural exports, with tea a distant second, accounting for approximately 12% of agricultural exports in 1981. The recent trends in planted area and yield are shown in Table 2. Coffee is grown almost entirely by smallholders. An estimated 400,000 farm families (or about half of all smallholders) grow coffee; the average family has a plot of about 150 trees, covering approximately 0.08 ha. The most favorable zones for coffee cultivation in terms of climatic factors are the Lake Kivu shore and central high pateau regions; bowever, due to the relatively well organized marketing system and, in some areas, the lack of viable cash crop alternatives, coffee cultivation has spread with population migration to the eastern savannahs to areas considered very marginal for its cultivation. New varieties with yields of the order of 1,400 kg/ba have been introduced since the mid-1960s. Unfortunately, the emphasis in research and production in the past has been on yield maximization rather than quality improvement, although the latter is possibly the best way to minimize the impact of depressed world market prices in real terms.  - 50 - Annex 1 Page 3 Table 2: Export Crops Production, Acreage and Yields /a 1970 (average 1969-71) 1975 1980 1981 /b Production ('000 mt) Coffee (parchment) 18.9 24.4 20.3 31.2 Tea (dried leaves) 1.4 4.0 6.6 6.8 Pyrethrum (dry flowers) .7 1.8 .9 .5 Cinchona /c .2 .3 .8 .3 Area Planted ('000 ha) Coffee 23.9 28.8 28.5 30.0 Tea 1.6 3.5 7.3 8.0 Pyrethrum 1.0 4.9 1.5 1.2 Cinchona .3 .4 1.6 .6 Total 26.8 37.6 38.9 39.8 Yields (mt/ha) Coffee .8 .8 .7 1.0 Tee .9 1.1 .9 .9 ?yrethrum .7 .4 .6 .4 Cinehona .7 .8 .5 .5 /a Yields of coffee and tea are heavily influenced by weather conditions and, particularly for coffee, cyclical production patterns. /b Provisional. /c For cinchona, production given corresponds to purchases by RWANDEX, the sole buyer in Rwanda; as a result of depressed world market prices in 1981/82, purchases of bark have been temporarily discontinued. Data on cultivated area are particularly weak. Source: Ministries of Agriculture and Planning and mission estimates. 3. The second most important export crop is tea with 1980 exports of 6,600 tons of made tea worth RF 1,000 million (US $11.9 million), or 11% of the value of all exports. Tea was introduced in Rwanda from the Congo (Zaire) only in 1946. Ihe area under tea increased fourfold between 1970 and 1981. Since tea bushes take three years to start bearing, Rwanda's tea production will continue expanding for a few years on the basis of existing  Annex 1 - 51 - Page 4 plantings, given normal maintenance. Seventy-eight percent of the tea hectarage is part of "village tea' schemes, or operated by cooperatives, mostly the former. Only 13% of tea plantings are state-owned plantations and 9% are privately-owned plantations. The crop has no major problems or diseases that would require extensive research. Little is known however about the most appropriate fertilization requirements and its effect on tea quality which is at present amongst the best in the world. Fertilization and, in some areas, better management of green leaf purchases is thought to be the only way to increase Productivity. 4. The future of pyrethrum and cinchona is highly uncertain due to the development of cheaper synthetic substitutes. Comparative varietal research on pyrethrum is still continuing on a small scale. No research is being done on cinchona. 5. Because of the gradual erosion of real producer prices for all major export crops since 1978 (Table 3) except tea, farmers' interest in food crop marketing is rapidly expanding. The Government, faced with one of the fastest growing populations in the world, gives food self-sufficiency its highest priority. This is reflected in its agricultural research strategy. Table 3: Trends in Real Producer Prices for Export Crops (1976 = 100) 1978 1979 1980 1981 1982 Coffee 143.2 123.7 115.2 108.2 98.3 Tea 116.3 100.0 101.3 110.0 106.3 Pyrethrum 77.5 66.7 68.3 73.3 70.8 Cinchona bark 77.6 64.2 52.0 48.8 47.3 6. Livestock. Declining pasture area for extensive grazing and the difficulty of producing adequate fodder for semi-stabling on the farm are reducing scope for the traditional pastoralists and slowly crowding cattle out of the traditional farm system. Available data in Table 4 suggest a gradual replacement of cattle by more efficient transformers, such as the small ruminants, pigs and chicken: Table 4: Trends in Livestock Production ('000 head) 1970 1981 increase Cattle 752 611 -19 Goats 480 943 96 Sheep 185 336 82 Pigs 55 140 155 Poultry 510 1,090 114 Rabits 55 107 95 Source: Ministries of Agriculture and Planning.  Annex 1 -52 - Page 5 7. Forestry and Agro-forestry. The country's natural forest resources are endangered by growing pressure for cropping land and by lack of adequate protection. Existing natural forest reserves cover approximately 6.5% of the total land and are estimated to be declining at a rate of 5% per annum. The energy output of controlled forest reserves (123,000 ha) and family wood lots (60,000 ha) represents only about 6% of estimated current consumption of wood for cooking heat, construction and industrial purposes. Although there is no rigorous monitoring of this resource, physical evidence points to the fact that this deficit is being made up largely through deforestation of remaining wooded savannahs, increasing use of crop residues for fuel and growing informal imports of wood from neighboring countries. Reforestation and the use of trees as protection against erosion have been actively and successfully promoted by the Government. II. STRUCTURE AND CURRENT STATUS OF AGRICULTURAL RESEARCH 8. Rwanda has a relatively long history of agricultural research, beginning in Rubona in 1930 when a station was established to produce and distribute seeds to farmers who had consumed their seed stocks during the 1923 and 1929 famines. In 1935, the supervision of the research programs was entrusted to the Institut National pour l'Etude Agronomique du Congo Belge (INEAC), which was created in 1933. In 1950, the Rubona station was administratively and technically integrated in the INEAC system, together with an annex for cattle breeding at Songa, a former state farm established in 1935. In 1955, the Rwerere station was opened to study the adaptation of certain crops to the high altitude regions of Rwanda. A second livestock station was created at Karama in the Bugesera region in 1959 to study the possibilities of developing the south-eastern savannah areas infested by tsetse flies. With the increased settlement of the Bugesera region over the last 20 years, crops research became increasingly important at the Karama station. In 1972, a small station for pyrethrum research was created in Tamira on the fertile volcanic soils of the north-western part of the country. Since 1979, a potato research station at Ruhengeri with a seed potato farm at Kinigi were established with support from CIP. The latest station added to ISAR's network is located at Gisovu in the Zaire-Nile divide region, financed by the European Development Fund (EDF) and FAC, operated by GERDAT. In 1980, a forestry and agro-forestry research station was established in Rwanda's National Arboretum at Ruhande. The newest station that will be added to this list is the small ruminant research station at Gishwati, to be constructed under the IDA financed Integrated Forestry and Livestock Project (Credit 1039 RW). 9. After independence, ISAR was created on June 22, 1962. Following an agreement signed in 1965, Belgium was entrusted with the scientific, technical and administrative management of ISAR. This agreement was amended in 1969 to give the supervision of the scientific and technical activities of ISAR to the Agronomic Faculty of Gembloux (Belgium). In  - 53 - Annex 1 Page 6 1975, the general management of ISAR was taken over by a Rwandan national. In 1977, the Belgian Government informed of its intention to limit its involvement to a few well-defined research programs. Since 1981, Belgian support has been restricted to legumes, livestock and horticultural research. On June 16, 1982, Belgium withdrew all of its scientists and financial support from ISAR. At present, ISAR's research stations are operating with varying degrees of autonomy. Certain activities, presently or formally financed by external donors (e.g. Ruhande and Ruhengeri/Kinigi stations), are not recorded in ISAR's accounts. This has led to a certain dispersion of efforts and distortions in research emphasis. The Project is designed to correct these flaws through the introduction of multidisciplinary research programming and budgeting, where work would be coordinated at a national level. 10. Food Crop Research. Traditionally, food crop research in Rwanda has been limited to screening of local and imported varieties, comparative trials, followed by multi-location trials. No actual crossbreeding has taken place and variety screening was always done in pure stands without fertilizers, so that most varieties cultivated in Rwanda are fortunately "non-fertilizer responsive- 1/. However, some of the most important crops (beans, maize, sorghum and others) ore traditionally almost entirely grown under intercropping. As a result, many varieties screened under pure stand conditions found little adoption amongst farmers. In the past, in an effort to intensify Rwandan agriculture through diversification, food crop research has concentrated on recently introduced crops, such as soybeans (introduced from Zaire in 1940), groundnuts (introduced in 1920), maize, wheat and triticale, cassava (introduced from Zaire in the 1940s), sunflower (since 1977), and potatoes (introduced since the 1920s). For the traditional crops occupying 77% of the total food crop area or 74% of the total cultivated area in 1980, some research has been done for a few years on sweet potatoes and beans, but no research at all on bananas and peas. Sorghum (90% for beer production), the traditional cereal between 1,400 and 2,000 m, has been researched for over 20 years; but of all the introduced material, none has outperformed the existing traditional varieties. Over the last ten years, ISAR has intensified its collaboration with the IARCs of the CGIAR system: CIP continues to support potato research; IITA with financing from IDRC is, since 1983, assisting with research on cassava and sweet potatoes; CIMMYT is cooperating in wheat and triticale research, and is expected to extend its involvement in maize research through the Birunga Maize Project financed by IFAD; and in 1983, CIAT started with Swiss financing an ambitious expansion of the bean research program. The CIMMYT wheat and triticale, CIP potato and CIAT bean programs form parts of regional programs managed by the IARCs involved. Unfortunately, the 1/ The terminology used in this report indicates that the improved varieties do not necessarily require additional chemical nutrients to obtain a reasonable yield and outperform the traditional varieties under pure stand conditions. This does not mean that under certain soil fertility management conditions no higher yields would be obtained with chemical fertilizers.  -54 - Annex 1 Page 7 national institute has little or no control over these regional programs. The same is often true for research components of rural development projects financed by a variety of external donors. 11. Export Crop Research. The first arabica coffee variety introduced in Rwanda - Mibirizi - has since long been outperformed by Jackson and Bourbon Mayagues 71 and 139, selected at the Rubona station. The last comparative trials on coffee were done between 1974-79. Fifteen out of the nineteen hectares under coffee at the Rubona station are only used for production. In an effort to increase both quality and yield, new trials started in 1983 in collaboration with the Institut Francais du Cafe et du Cacao (IFCC), financed by the Lake Kivu Coffee and Food Crop Project (Credit 1126 RW). Starting from 1984, ISAR will, for the first time in many years, employ a full-time research worker for coffee and tea. ISAR operates a small tea research station at Mata where a small number of comparative trials has been undertaken for 12 years. One of the more serious shortcomings of past research on coffee and tea has been that it was undertaken at two locations only, so that results have a limited value, in particular for fertilizer recommendations. 12. Livestock Research. Most of the past livestock research in Rwanda has dealt with breed improvement of cattle. Selection of the local Ankole breed for beef production started in 1945. Since 1976, selection has been gradually oriented toward stall feeding and milk production. Since 1950, crossbreeding between Ankole, Jersey and Sahiwal was thought to be the solution. However, stall feeding of selected local and crossbreeds under farmer conditions did not outperform the traditional Ankole breed, attributable perhaps to the absence of a well organized veterinary service and the larger nutrition requirements of improved breeds. ISAR has not undertaken any animal nutrition research so far. 13. Forestry and Agro-forestry Research. Forestry research in Rwanda started in 1934 with the establishment of the National Arboretum at Ruhande. More recently, forestry research with Swiss financing has focussed on a better knowledge of the various species to be used for reafforestation and erosion control in relation to the physical environment. This work will result in a map indicating optimum growing conditions for each species. In this research, special attention is given to the introduction and testing of fast growing species, other than Eucalyptus, for use as firewood, and a survey on firewood requirements is being undertaken. Another ongoing survey will provide, a few years hence, a map with the distribution of indigenous tree species in Rwanda. Agro-forestry research within ISAR has started recently with food crop intercropping trials amongst the various tree species occurring in the National Arboretum. Most of the agro-forestry research, however, has been undertaken outside ISAR by the Nyabisindu project. Several agricultural and forestry projects under MINAGRI include applied forestry research components, the most important of which is the Swiss financed Pilot Forestry Project (PPF) at Kibuye.  - 55 - Annex 1 Page 8 14. New Farming Systems Research (NFSR) 2/,. The first attempts in what may be called NFSR have been undertaken since 1975 by the University of Heidelberg on a hillside near Nyabisindu with German financing (GTZ). The purpose of this research was to develop an entirely self-sustainable agricultural production system by integrating crop production with erosion control measures, tree cultivation, livestock (manure production through stall feeding), composting of crop residues and green manure production. On-station, this research has proven quite successful, but none of its findings have been adopted by surrounding farmers. Still, elements are useful to be pursued as component research in other Farming Systems Research programs. The Nyabisindu station is entirely outside ISAR's control and it is only since January 1984 that detailed technical results are being systematically published in French. 15. On-farm Research (OFR) with a Farming Systems Perspective (FSP) 3/. Two programs are under way, both since 1983; one in the Zaire-Nile divide region, financed by FAC, under an execution agreement between ISAR and GERDAT, and the second, financed under the BGM II Project (Credit 1283 RW) and executed under an agreement between ISAR and IITA. These programs are based on understanding the present farming system, identifying the major constraints to improvement encountered by groups of farmers, and subsequently, devising solutions to these constraints and testing these solutions with the farmers on their fields prior to including them in general extension themes. Both programs are too recent to draw conclusions. A third program, FSIP, to be financed by USAID for the middle and high altitude region of the Rwerere station, is under preparation. A first survey to identify the major farming constraints of the region has been completed. The University of Arkansas is responsible for project implementation. The program will become operational by early 1985. All three programs are being integrated in the ISAR system. Other FSR/FSP research activities are being undertaken under the Swiss financed PAK under the direct responsibility of MINAGRI. 16. Structure. ISAR is a Government-owned institution, under the overall control of MINAGRI. Most of its revenue to cover salaries and operating costs is derived from Government budgetary allocations which are voted annually as part of MINAGRI's budget. ISAR has an independent Board of Directors of eight members. The President of ISAR's Board is the Secretary General of the Ministry of Higher Education and Scientific Research created in 1981. Decisions of the Board must be submitted to the Minister of Agriculture for formal approval. The latter has the right to veto decisions within 14 days after submission. 2/ Terminology first introduced by Dr. E. W. Simmonds in the 1984 Agriculture Seminar for Bank staff. 3/ CIMMYT termdnology, further used in this report.  -56 - Annex I Page 9 17. Currently, ISAR is organized into four research departments: (i) central laboratories, including phytopathology and entomology; (ii) soil conservation (amenagement du milieu), including pedology, soil physics, soil chemistry, climatology and agricultural equipment; (iii) crop production, including food crops, cash crops and forestry; and (iv) livestock production. An administrative unit is in charge of general services, accounting, documentation and station management. The present organizational structure is not conducive to a major reorientation of research content that would require a nationally coordinated multidisciplinary team approach. This was generally recognized by the Government after the publication of the ISNAR report in December 1982. At that time, after the withdrawal of Belgian support, ISAR did not have the management capacity nor the human and financial resources to sustain a national agricultural research effort. This was the principle reason for the Government's request for Bank support for agricultural research in the framework of Government's sector strategy. 18. ISAR's Kanower. In December 1983, ISAR had 21 university educated Rwandan staff (AO level), including the Director and four department heads, leaving only 16 full-time research workers, of whom only one holds a PhD. In early 1984, ISAR recruited six new university graduates, bringing the total number of full-time Rwandan research workers to 22. The situation for research technicians (A1 and A2 level combined) is even more precarious. Currently, ISAR employs one research technician for every two research workers. 19. ISAR's Present Funding. Since the departure of the Belgians and due to the lack of adequate staff, ISAR has not been able to maintain up-to-date accounts. The present accounting system does not reveal accurate costs of all its operations since costs incurred in research activities funded by other donor agencies are not incorporated in ISAR's accounts. As part of project preparation, ISAR has had its accounts for the year 1982 audited by an external auditor. The balance sheet and income and expenditure accounts for the year ended December 1982 are at Annex 6. These indicate that in 1982, ISAR received RF 60 million (US $640,000) as subsidies, most of it from the Government, which covered salaries of ISAR's personnel. It received about RF 35 million (US $370,000) from sales of its products (mainly milk, meat, coffee and breeder seed), which just about covered ISAR's other operating costs (including purchase of materials, transport and other services). There has been no significant change in the pattern of funding in 1983, and ISAR received about the same amount of Government subsidy (RF 60 million) in 1984. The 1983 audit was available at negotiations. III. CURRENT STATUS OF AGRICULTURAL EDUCATION, EXTENSION AND SEED PRODUCTION 20. Higher Education. The University of Rwuanda in Butare was created in 1963, its Agricultural Faculty in 1977. The latrer liS aa average  -57 - Annex I Page 10 annual output of 12 to 14 graduates. Under the current system, students gradnate after six years (three years general science education and three years general agronomy and related subjects). There are no possibilities yet for further specialization, although plans have been developed to provide in the future for specialization in agronomy, animal husbandry and crop husbandry. But even then, further specialization in subjects such as plant breeding, forestry, entomology, phytopathology and animal nutrition, can only be pursued abroad. Until recently, most graduates found a position with MINAGRI. Because of budget limitations this year (1984), it is expected that for the first time not all 13 graduates can be accommodated. ISAR will take this chance to recruit a larger than usual number and send them abroad for further training and specialization. 21. Technical Education. Technical training in agriculture and veterinary sciences for A2 level staff, from which research technicians are recruited, takes place in three schools: (i) The Agricultural and Veterinary School in Kabutare, financed by FAC and EDF. (ii) The Agricultural School for Girls in Nyagahanga (Byumba), financed by USAID. (iii) The Agro-forestry School in Nyamishaba (Kibuye), created in 1981 and financed by Switzerland. A fourth school in Busogo (Ruhengeri) is currently under construction with Algerian financing, and should open its doors in September 1985. In 1981 the duration of elementary school education in Rwanda was increased from six to eight years, and technical education reduced from seven to six years. Thus, no technicians will be graduating in September 1986. The number of students presently in the system and scheduled for graduation in 1984 and 1985 is as follows: Agricultural Veterinary technicians technicians 1984 32 10 1985 47 16 ISAR is expected to recruit between 1984 and 1987 a significant number of them to improve the relation between the numbers of research workers and technicians. A3 level foremen and schooled workers are trained in Rwanda's 180 CERAI or the Training School for Livestock and Veterinary Services in Rubilizi, financed under Credit 1283 RW. Training at the CERAI is for three years after elementary school. 22. Agricultural extension is formally organized following the public administration structure. Each of the seven prefectures has a university educated agronomist and a veterinarian. In principle, there is an A2 level agricultural technician and a veterinary technician in each of the 143  - 58 - Annex I -58- ~~~Page II comuines. The extension workers (monagris) are in direct contact with the farmers at the cellule level. The coffee and tea parastatals have their own extension workers. The extension themes and objectives are handed down from MINAGRI and consist of several campaigns: erosion control, coffee and tea grove maintenance, reafforestation and thinning of banana groves. Each area development project adds its own themes to this basic pattern. The extension system can be characterized as follows: ti) Rwanda's agricultural research has not been producing or adapting much useful agricultural technology for Rwandan farmers. The mechanism for communicating agricultural technology to the extension service is weak. (ii) Numerous projects have developed separate and uncoordinated extension services, methods, etc. The National Extension Service has been neglected. When project financing period end, extension systems established under the Project also end. (iii) Extension messages are most often ill-adapted to the needs of the majority of farmers. (iv) Extension agents carry out many non-extension related activities including statistics gathering. There is also a tendency to try to impose on farmers what the Government regards as appropriate agricultural practices. Farmers may be fined in some cases for not applying practices "recommended' by extension agents. (v) Extension agents receive little or no in-service training, receive irregular and poor supervision, and are not guided by systematic programs. (vi) Agricultural inputs are often not available, so that farmers cannot apply recommended packages. The result is an ineffective extension apparatus. However, there is a growing awareness of the situation and a few promising initiatives are being tested, e.g. the extension system developed under the Swiss financed PAK. Also, reafforestation efforts have been reasonably successful with the establishment of individual and communal wood lots. Following the recent sector discussions, the Government agreed to the urgent need to define a national extension strategy and has requested Bank assistance. A project that would address the problems enumerated above is presently under preparation; its main objectives would be to introduce a national extension system and provide for improved management and training. 23. Seed Production. Formally, ISAR is responsible for the production of breeder seed. Seed multiplication and distribution is the responsibility of the Selected Seed Service (SSS) of MINAGRI. Apart from some small quantities of sweet potato, cassava, table bananas and  _ 59 _ Annex 1 Page 12 avocadoes, the main thrust of the SSS multiplication activities is the production of improved seed potatoes and groundnut, soybeans, wheat and maize seeds on approximately 130 ha of scattered seed multiplication fields (10) under force account. The total annual seed production does not exceed 260 tons. The main problems with Rwanda's seed multiplication system are: (i) insufficient collaboration between ISAR and SSS; (ii) a chronic lack of trained staff and infrastructure; (iii) no formalized seed control and certification system; (iii) insufficient multi-location trials; and most important (iv) poor quality of breeder seed.  - 60 - Annex 2 Page 1 RWANDA AGRICULTURAL RESEARCH PROJECT Crop Research Program Descriptions Research Program Research Operations Beans Varietal prospection, introduction and collection. Selection: pure llnes, variety mixtures, regional adaptation and testing under mixed cropping. Breeding through hybridization. Studies of crop associations. Study/survey of nitrogen fixation (Rhizobium). Post-harvest technology: on-farm storage. On-farm uultilocation trials and pre-extension. Breeder seed production. Peas Varietal prospection, introduction and collection. Selection/regional adaptation. Intensification trials. Development of a seed dressing system (Rhizobium). Breeder seed production. Soybeans Collection/introduction/selection. Post-harvest technology for human nutrition. Development of a seed dressing system (Rhizobium). Crop association trials; bird protection. On-farm multilocation trials and pre-extension. Breeder seed production/germination capacity study. Groundnuts Collection/introduction/screening (drought resistance). On-farm fertilization trials on poor soils. Breeder seed production and storage. Maize Collection/prospection/introduction. Selection and breeding for high altitude and semi-arid regions. On-farm fertilization trials, studies on association of maize with staked beans. Purification of existing varieties and breeder seed production. Sorghum Collection/prospection/introduction. Selection and breeding. Agronomic trials: on-farm fertilization and crop associations. Post-harvest technology (flour technology/on-farm storage). Breeder seed production.  -61 - Annex 2 Page 2 Research Program Research Operations Wheat/triticale Introduction/collection. Selection/breeding (triticale). Study of cultural methods and on-farm fertilization. Post-harvest technology (grain and flour quality). Breeder seed production. Sunflower Analysis of past research results. Renewal of collection and seed purification. Introduction/screening. Cassava Collection/prospection/introduction. Screening and selection (disease and parasite resistance, regional adaptation). Breeding. Intercropping trials. On-farm trials. Production of healthy cuttings. Sweet potatoes Collection/screening/introduction. Selection in pure stands and crop associations. Polycross breeding and progeny trials. Trials on cultural practices/physiological studies. Post-harvest technology: nutritional value/taste and storage. On-farm trials. Production of cuttings. Potato Introduction/collection/evaluation/rapid multiplication. Agronomy/physiology: cultural practices and crop associations. Phytopathology and crop protection. Storage and physiology (dormancy) of seed potatoes. On-farm trials/demonstration plots. Coffee Cover crops. Studies on tree density and plantation rejuvenation. Research on pesticides and alternative methods of Antestiopsis control. Research on fungicides and rust resistance. Anthracnose survey. Collection/introduction/comparative trials. Seed production. Tea Collection/introduction/multi-location comparative trials. Fertilizer/tea quality trials. Pyrethrum/cinchona No research, maintenance of existitng collection. Banana Prospection/introduction/collection. Screening and on-farm rwlti-location comparative trials. Cultural practices/ccmparison of intercropping with pure stands. Traditional post-harvest technology: inventory/study of brewing losses. Multiplication. Avocado Collection, on-station multi-location comparative trials. Multiplication. Research on uniformization of rootstocks. On-farm post-harvest technology: juice extraction and oil distillation. Phenologic observations on best varieties.  - 62 - Annex 3 Page 1 RWANDA AGRICULTURAL RESEARCH PROJECT Responsibilities and Qualifications of Key Personnel Senior Research Planning and Evaluation Advisor 1. Under the direction of ISAR's Managing Director he would as head of the Monitoring and Evaluation Unit be responsible for: (i) planning, managing and supervising the Monitoring and Evaluation Unit; (ii) acting as senior advisor to ISAR's Managing Direcor regarding the development of national systems for research program planning, coordination, budgeting, management and evaluation; (iii) setting up an information and data collecting system to monitor project progress in physical and financial terms, and preparing project reporting guidelines; (iv) analyzing the data collected, including the non-quantifiable aspects of the research effort and reporting his findings and recommandations to ISAR's Managing Director and the Department Heads; (v) in coordination with and with the collaboration of the Department Heads and their senior staff, evaluating research results and developing a long term agricultural research strategy; (vi) coordinating and preparing ISAR's annual scientific reports; (vii) preparing quarterly project progress reports and the project completion report; and (viii) training in technical and managerial matters all staff directly under his orders.  -63 - Annex 3 Page 2 2. The qualifications and experience of the Senior Research Planning and Evaluation Advisor would be: (i) a post-graduate degree in agriculture or veterinary science or a related field; (ii) at least seven years experience in agricultural research management and programming; (iii) actual experience with monitoring and evaluation of agricultural research or agricultural development; and (iv) a good knowledge of the French language. Research Department Head 3. Under the direction of ISAR's Managing Director, he would manage his research department and be responsible for: Ci) planning, supervising, managing and coordinating all research activities of his department; (ii) preparing annual work programs an' budgets for each of the research programs carried out by his department in close liaison with the Senior Research Planning and Evaluation Advisor and the Head of the Financial and Administrative Service; (iii) managing his department's expenditures and handling all its personnel matters; (iv) transmitting to the staff of his department the recommendations and decisions of the Managing Director and the Board of Directors that concern the department or its personnel; (v) coordinating the activities of his department with those of the other departments of ISAR and of other organizations in Rwanda that carry out research and experimentation in relevant fields; (vi) preparing quarterly progress reports and annual scientific reports for his department In close liaison with the Senior Research Planning and Evaluation Advisor, and presenting these to ISAR's Research Committee and the Managing Director; Cvii) planning and programming the training in technical and managerial matters all staff under his orders;  -64 - Annex 3 Page 3 (viii) determining the department's needs in the area of scientific documentation and prepare purchase orders for books and articles for transmission to the ISAR Documentation Center; (ix) representing the department in the ISAR Research Committee; (x) ensuring the department's functional relations with organizations, projects, farmers and other users of research results so as to be constantly aware of user needs; (xi) assuring the department's relations with research institutions and research workers abroad; and (xii) synthesizing the department's research results in a form suitable for the national authorities responsible for rural development and agricultural research notably in the context of the preparation of the agricultural research master plan. 4. The qualifications and experience of the Department Read should be: Ci) a post-graduate degree ir agriculture or related field; (ii) at least five years experience in relevant aspects of agricultural research and knowledge of small farm production problems; (iii) actual experience in agricultural research management and prngramming; (iv) a proven ability to lead and coordinate the activities of multidisciplinary research teams; and (v) a good knowledge of the French language. Head of the Financial and Administrative Service 5. Under the direction of ISAR's Managing Director he would be responsible for: (i) designing and implementing a detailed and effective cost accounting system that would permit budgeting per research program and per organizational unit; (ii) setting up detailed budgeting procedures for use by ISAR staff and an effective budgetary control system;  - 65 - Annex 3 Page 4 (iii) review of budgets prior to their approval by ISAR's management for presentation to the Board of Governors; (iv) control of project financial statements of ISAR's balance sheets including consolidated and detailed annual budgets and quarterly cash flow projections; (v) designing and implementing sound financing and management controls particularly with regard to fixed assets, accounts receivable, accounts payable, inventories, stocks and receipts, equipment maintenance and vehicle operating costs; (vi) supervising disbursemen- records for the various donors involved in the Project and ISAR; (vii) supervising all procurement procedures; (viii) follow-up of auditor's recommendations; and ix) training in technical and managerial matters all staff directly under his orders and all other ISAR financial and accounting staff. 6. The qualifications and experience of the Head of the Financial and AdminIstrative Service would be: (i) a university degree (or its equivalent) or membership in a recognized professional body evidencing formal knowledge of modern accounting theory and practice in accordance with generally accepted international standards; Cii) at least seven years professional experience, preferably in a count.y using the OCAM accounting plans and some of which in a commercial enterprise; (iii) actual experience with internal auditing, cost accounting, budgetary control and general management; and (iv) a good knowledge of the French language. Research Program Coordinator 7. Under the direction of the Research Department Head, a Research Program Coordinator would, apart from being an active research worker himself, be responsible for:  - 66 - Annex 3 Page 5 (i) coordinating, managing and supervising the research activities of all the research workers participating full-time or part-time, within or outside ISAR, in the research program; (ii) coordinati-ng execution of all on-station research work with the station Heads; (iii) coordinating all laboratory services for his research program with the chief of the central laboratories; (iv) preparing annual work programs and budgets, including all central services' needs in coordination with his fellow reseLrch workers, and in close liaison with and according to guidelines from the Department Head; (v) supervising his team's expenditures; (vi) preparing quarterly progress reports and annual scientific reports according to guidelines from the Department Head; Cvii) ensuring that research results are written up for publication in scientific and technical journals, and are synthesized in suitable form for the extension services; and (Viii) training in technical and managerial matters of all staff under his supervision. 8. The qualifications and experience of a Research Program Coordinator should be: gi) a post-graduate degree in agriculture or related field; (ii) at least three years experience in agricultural research; (ii4) a keen interest and proven ability in research management and in leading a multidisciplinary research team; and (iv) a good knowledge of the French languange. Farming Systems Agronomist 9. Under the direction of the Head of the Environmental Studies and Production Systems Department, the Farming Systems Agronomist would, as a member of the department's central team, be responsible for:  - 67 - Annex 3 Page 6 (i) participating in studying the main agricultural production systems in Rwanda through agricultural surveys and monitoring; (ii) coordinating and supervising agronomic aspects of all work done on farming systems research in Rwanda, including farm surveys and monitoring; (iii) on-farm testing of crop rotations and intercropping systems in close collaboration with the Crops Research Department; (iv) on-farm testing of erosion control measures and agro-forestry in close collaboration with the Forestry and Agro-forestry Department; (v) on-farm testing of soil fertility management techniques; (vi) preparing guidelines for the programming, planning and execution of farming systems research; CVii) coordinating the preparation of progress and scientific reports on the agronomic aspects of farming systems research according to guidelines from the Senior Research Planning and Evaluation Advisor; (viii) coordinating the farming systems research activities with the extension services of MINAGRI and the rural development projects; (ix) acting as senior advisor to the farming systems agronomists in the regional production systems research field teams; and (x) training in technical and management matters all staff of the department. 10. The qualifications and experience of the Farming Systems Specialist would he: (i) a post-graduate degree in agriculture or related field; (ii) at least seven years experience in agricultural research, part of which in farming systems research and preferably some experience in agricultural extension; (iii) actual experience in multidisciplinary agricultural research planning and programming; and (iv) a good knowledge of the French language.  -68 - Annex 3 Page 7 Animal Production Systems Specialist 11. Under the direction of the Read of the Animal Production Department, the Animal Production Systems Specialist would be responsible for: (i) studying the main animal production systems in Rwanda through livestock surveys and monitoring; (ii) coordinating and supervising all work done on animal production systems research in Rwanda, including farm surveys and monitoring; (iii) on-farm testing of agriculture and livestock integration (stall-feeding, feed supply, stables and manure production); (iv) on-farm testing and studies on fodder crop production, agricultural by-products and agrostology (grazing and rangeland management); (v) preparing guidelines for the programming, planning and execution of animal production systems research; (vi) coordinating the department's animal production systems research with the Environmental Studies and Production Systems Department; (vii) coordinating the preparation of progress and scientific reports on animal production systems research according to guidelines from the Senior Research Planning and Evaluation Advisor; (viii) coordinating the animal production systems research activities with the extension services of MINAGRI and the rural development projects; (ix) acting as senior advisor to the animal production scientists in the production systems research field teams; and (x) training in technical and managerial matters all staff of the department. 12. The qualifications and experience of the Animal Production Systems Specialist would be: (i) a post-graduate degree in animal husbandry, veterinary science or related field;  - 69 - Annex 3 Page 8 (ii) at least seven years experience in animal husbandry or livestock research, part of which in animal production systems research and preferably some experience in agricultural extension; (iii) actual experience in multidisciplinary agricultural research planning and programming; and (iv) a good knowledge of the French language. Agricultural Production Systems Sociologist 13. Under the direction of the Head of the Environmental Studies and Production Systems Department, the Systems Sociologist would be responsible for: Ci) studying the main agricultural production systems in Rwanda through surveys and monitoring of how farming systems function (migration, social and family relations, decision making, family labor, etc.); (ii) surveying and monitoring farm development: the application of new techniques and innovations, the role and effectiveness of the extension service and other development criteria; (iii) coordinating and supervising all work done on rural sociology research; (iv) preparing guidelines for the programming, planning and execution of rural sociology research; (v) coordinating the preparation of progress and scientific reports on research in rural sociology according to guidelines from the Senior Research Programming and Evaluation Advisor; (vi) coordinating the rural sociology research activities with the extension services of MINAGRI and the rural development projects; (vii) acting as senior advisor to the rural sociologists in the production systems research field teams; and (viii) training in technical and managerial matters all staff of the department. 14. The qualifications and experience of the Systems Sociologist would be:  -70 - Annex 3 7 ~~Page 9 (i) a post-graduate degree in rural sociology or related field; (ii) at least seven years experier.ce in rural sociology research, part of which in agricultural production systems research and preferably some experience in agricultural extension; (iii) actual experience in multidisciplinary research planning and programming; and (iv) a good knowledge of the French language. Agricultural Production Systems Economist 15. Under the directon of the Read of the Environmental Studies and Production Systems Department, and as a member of the department's central team, the Agricultural Production Systems Economist would be responsible for: Ci) participating in studying the main agricultural production systems in Rwanda through surveys and monitoring of farm budgets, sources and importance of monetary income, consumption patterns and marketed production; (ii) surveying and monitoring of farm production, labor use, farm and family size distribution, the decision making process, etc.; (iii) studying and surveying the marketing channels of both cash and food crops, price variations in time and space, food shortages and surpluses, farmer reactions to price incentives (policies), price elasticities, etc.; (iv) coordinating and supervising all work done on research in agricultural economics; (v) preparing guidelines for the programming, planning and execution of research in agricultural economics; (vi) coordinating the preparation of progress and scientific reports on research in agricultural economics according to guidelines from the Senior Research Programming and Evaluation Advisor; (vii) coordinating the research activities in agricultural economics with the extension services of MINAGRI and rural development projects;  - 71 - Annex 3 Page 10 (viii) acting as senior advisor to the agricultural economists in the production systems research field teams; and (ix) training in technical and managerial matters all staff of the department. 16. The qualifications and experience of the Agricultural Production Systems Economist would be: Ci) a post-graduate degree in agricultural economics or related field; (ii) at least seven years experience in agricultural economics research, part of which in agricultural production systems research and preferably some experience in agricultural extension and rural development; (iii) actl'nl experience in nultidisciplinary research planning and rogramming; and (iv) a good knowledge of the French language. Station Head 17. Under the direction of the Financial and Administrative Service Head in respect of all financial, administrative and personnel matters, and under the Research Department Heads for all research activities, a Station Head would be responsible for: (i) planning, managing and supervising all services delivered to the research programs, to realize the full production potential of the scientists working on his station; (ii) supervising all station expenditures within the limits established in the budgets of each research program (he is not allowed to reallocate funds); (iii) handling all personnel matters for research station staff (excluding research staff); (iv) coordinating the available services on his station with the needs expressed by the research workers through close liaison with the Research Program Coordinators; (v) maintaining and repairing buildings, grounds and equipment;  - 72 - Annex 3 -72- ~~Pagell1 (vi) soil preparation, cultural care, assistance in seeding and harvesting experimental plots, the care of livestock, seed and feed production and other service duties described by proper authority; (vii) preparing, based on needs expressed by the Research Program Coordinators, annual work programs and budgets in close liaison with the Financial and Administrative Service Read, directly allocatable costs would be included in the research programs concerned; (viii) preparing quarterly progress reports in close liaison with the Financial and Administrative Service Head; and (ix) training in technical and management matters all staff under his orders. 18. The qualifications and experience of a Station Head would be: (i) preferably a post-graduate degree in agriculture, veterinary science or related field (AO level); (ii) at least ten years experience in agricultural research in case an A2 level staff is appointed; (iii) a proven ability to lead and coordinate the activities of large numbers of staff; (iv) general management skills should preferably include familiarity with farm management and accounting and budgeting procedures; and 'v) a good knowledge of the French language. Statistician/Biometrist, Chief of the Data Processing and Statistics Unit 19. Under the direction of the Managing Director, the Chief of the Data Processing and Statistics Unit would be responsible for: (i) planning, managing and supervising all actions of his unit; (ii) preparing annual work programs and budgets based on the needs of the various research programs ane in close coordination with the Research Program Coordinators and Research Department Heads; (iii) screening, supervising and where necessary, preparing all experiment and test designs;  - 73 - Annex 3 Page 12 (iv) supervising the statistical analysis and interpretation of all research results; (v) supervising the writing of all computer programs; (vi) supervising the use of ISAR's future computer facilities; and tvii) training in technical and managerial matters all scientific staff and staff under his orders. 20. The qualifications and experience of the Chief of the Data Processing and Statistics Unit would be: (i) a post-graduate degree in statistics, mathematics or related field; (ii) at least five years experience in agricultural experiment design and analysis; Ciii) actual experience or training in general management skills; and (iv) a good knowledge of the French language. Technical Liaison Officer 21. As distinct from the architects and associated professionals whose responsibilities are executive (Annex 4) and who are legally responsible for health and public safety, the Technical Liaison Officer would under the direction of the Head of the Financial and Administrative Service represent ISAR on technical matters and would be the locus of overall project coordination and liaison in respect to civil works. The duties of the Technical Liaison Officer would include: Ci) retaining professional services; (ii) representing ISAR in participation with the consultants retained to prepare the development plan required for each research station; (iii) arranging for the review and approval of architectural and engineering reports, plans, specifications, equipment lists and other material; and (iv) participating in the following: (a) weekly meetings with the executive architects during the design phase;  -74 - Annex 3 Page 13 (b) prequalification of contractors; (c) approval and supervision of bidding procedures; (d) adjudication and award of contracts; (e) monthly progress meetings with the contractors and architects during the construction phase; (f) overseeing project progress, making weekly internal progress reports and qnarterly reports to be included in ISAR's quarterly reports to the Association; (g) processing contractors' bills for payment by ISAR and subsequent forwarding to the Association for disbursement; (h) preparing a commissioning program and at the completion of construction, participating with the executive architects In advising ISAR on the acceptance of the completed buildings; and (i) providing adminitrative and technical management of contract maintenance and rehabilitation programs for all physical facilities in ISAR. 22. The qualifications and experience of the Technical Liaison Officer would be: (i) an undergraduate degree or certificate in architectural or civil engineering construction and contracting; (ii) at least five years experience in conducting construction works; (iii) preferably some basic accounting skills; and (iv) a good knowledge of the French language.  - 75 - Annex 4 Page i RWANDA AGRICULTURAL RESEARCH PROJECT Outline of Duties of the Executive Architects 1. In close collaboration with the Technical Liaison Officer of ISAR, the Executive Architects (EA) will establish and manage a work program, utilizing appropriate tools for all activities during the design, tendering, construction and commissioning phases of project development. 2. The EA would have prime responsibility for design and ultimate supervision of construction of a complete and functional project which would include architectural, engineering, site and research station development components. 3. The EA woud employ at his own expense structural, mechanical or other qualified engineers as required to carry out the Project design and implementation. 4. Master plans (1/500) including schematic designs (1/200) will be prepared by the EA for each of the four research centers proposed for upgrading under the projects. These master plans would indicate existing buildings, roads, fences, electrical distribution, water supply, etc., and any other features affecting the location of future construction or development. Additionally, work proposed under this project would be identified and shown to scale on the same master plan. 5. An "Avant-Projet" including design development drawings (1/100) and cost estimates would be prepared following master plan preparation. Variances in quantities of work or cost by more than 10% will be adequately explained and justified. The "Avant-Projet' will be approved by ISAR and IDA before proceeding with subsequent phases of project development. A full description of architect's work to be done will be included as part of the contract with ISAR. 6. A "Projet d'Execution" including detailed drawings (1/50) will be prepared by the EA on the approved "Avant-Projet" with revised and detailed cost estimates. These drawings will include floor plans, exterior elevations, sections through buildings as required and would be accompanied by technical specifications, materials, quantities and other information  -76 - Annex 4 Page 2 required to tender the Project by a schedule of unit prices based on an approximation of quantities of work to be done. Prior to call for bids, all tender documents would be presented to ISAR and IDA for approval. 7. Following approval of the Avant-Projet", the EA would assist ISAR by preparing formats and prequalifying local companies interested in subumitting bids on this project. These formats, as well as the prequalification procedure, would be approved by ISAR and IDA. The EA would evaluate the prequalification and make recommendations to ISAR and IDA as to the results. 8. In cooperation with the Technical Liaison Officer the EA will assist ISAR with: (i) prequalification of contractors; (ii) calling for bids; (iii) interpretation of contract documents; -iv) evaluation of bids; Cv) adjudication; and (vi) award of contracts. 9. The EA would supervise construction of the project reinforced as necessary by on-site clerks of the works. 10. The EA would verify contractor's periodic payment requests and certify that the work for which payment is requested had been satisfactorily completed. 11. Prepare change orders to the contract during the construction phase. 12. Prepare periodic reports, as required, outlining project status and constraints in accordance with reporting needs and requirements of ISAR and IDA. 13. Make final inspection and accept the Project as fulfilling the terms and conditions of the agreement between ISAR and the contractors.  - 77 - Annex 5 RWANDA AGRICULTURAL RESEARCH PROJECT Training Scholarships Unit (man-years or Description man-months) 1984 /a 1985 1986 1987. Total MINAGRI, Master Plan Preparation I AO man-years - 1 - - 1 Administrative and Financial Service Department 2 Ao man-months - 6 3 - 9 Support Services 3 AO computer programming man-months - 1 2 - 3 I documentalist (AO) man-months - 5 5 - 10 2 librarians (A2) man-months - 2 2 - 4 2chemists man-months 1 2 1 2 6 1 Al laboratory assistant man-mont%s - .3 1 1 5 Crop Production Department 8 AO scholarships Europe man-months - 8 4 4 16 3 2 yr AO scholarships Europe man-years 1 2 2 1 6 3A2 scholarships Africa man-months - 2 2 2 6 Animal Production Department 4 AO scholarships ILCA man-months 2 2 2 8 1 Ao scholarship France man-months - 6 - - 6 4 A2 scholarships Europe man-months 3 3 3 3 12 Environmental Studies and Production Systems Department 7 AO scholarships Europe man-months 8 8 8 4 28 7 AO scholarships Africa (CIMMYT) man-months 4 4 4 2 14 10 A2 scholarships Africa man-months 4 4 4 8 20 Forestry and Agro-forestry Department 1 AO scholarship ICRAF man-years 1 - - - I 1 AO scholarship Costa Rica man-years - - 1 1 2 2 AO scholarships Africa man-months - I - 1 2 1 A1 scholarship Auwtralia man-years - - 1 - I 1 A1 scholarship Africa man-months - - - 2 2 2 A2 scholarships Africa man-months - - 2 2 4 4 A2 scholarships ICRAF man-months I 1 1 1 4 71 Total scholarships /a Uneer P"F financing.  -78 - Annex 6 Table 1 RWANDA AGRICULTURAL RESEARCH PROJECT ISAR's Balance Sheet 1982 1983 -- Rw F million - Fixed Assets Office and operational buildings 80.0 82.5 Residential houses 53.' 61.3 Vehicles 14.5 29.3 Equipment 90.5 93.9 Other assets 7.2 8.8 Works in progress 3.4 - 249.5 275.8 Less accumulated depreciation 168.3 81.2 182.9 92.9 Current Assets Debtors 20.1 35.8 Less provision 8.7 8.8 11.4 27.0 Livestock 27.2 26.2 Other stocks 10.9 13.0 Cash and bank 96.6 146.1 77.8 144.0 Total assets 227.3 236.9 = FinancebXy: Current Liabilities Government loan 4.3 13.8 Other loan .6 .7 Sundry creditors 10.0 14.9 10.2 24.7 Long Term Loan 5.9 5.2 Capital and Reserves Cunulative subsidies Government 38.9 44.2 - Belgian Government 78.7 80.4 - Swiss Government 8.6 10.7 - Others 1.9 2.0 128.1 137.3 Retailed earnings 78.4 206.5 69.7 207.0 Total 227.3 236.9  79 - Annex 6 Table 2 RWANDA AGRICULTURAL RESEARCH PROJECT ISAR 's Income and Expenditure Account 1982 1983 -- Rw F million -- Income and Revenues Sales 32.6 44.3 Less cost of goods sold 3.0 4.3 29.6 40.0 Increase in stock of cattle 2.5 32.1 (1.0) 39.0 Subsidies received 63.3 80.3 95.4 119.3 Expenditures Staff salaries 60.6 77.6 Materials and supplies consumed 18.1 21.8 Other services 2.1 4.2 Transport .9 .4 Interest paid .6 .6 Depreciation 11.8 14.6 Provision for doubtful debts 9.3 103.4 8.8 128.0 Excess of Expenditure Over Income for the Year (8.0) (8.7) Cumulated Revenue Reserves Cumulated revenue as of January 1, 1981 127.5 Add adjustment of prior year's income /a 7.7 Less: (i) reduction in total accumulated revenue resulting from change in accounting principle /a 48.8 (ii) loss for the year 1982 8.0 Accumulated revenues as of December 31, 1982 78.4 /a Subsidies received from procurement of fixed assets have been accounted as capital after having been reduced by the cumulative amount for depreciation since 1976. This accounting principle has been revised and the amortized subsidies have been reintegrated in ISAR's capital.  - 80 - Anex/Annexe 7 Table 1 JEAT K IOSI MlEN DOOEM NULES ME SOXE NE flUINACEEITrATElIRIE (FRO '05) CAst tetam ax Pix tsta,ts Devises 1984 I185 193 1987 Telaa I Nost#t n - _m eo a_r I. IHESIISSEUTS A. UUNEhJ ENIIE CIML UAITAII - 30,950.0 70,413.0 - 101,265.0 40.0 40,56.0 1. IUM fEIII CML OFEIAIDImIEL - 93,79.0 530613.0 - 144406.0 40.0 579762.4 C. EH10 IL1TATIN MIM CIVIL HADITATID - 3.350.0 13,050.0 - 71,400.0 40.0 3B,.0 3. 1EMILITAIM GENE CIL UER1aT - 11,135.0 9,450.0 - 20e,55.0 40.0 3,234.0 E. INUEL EMBENT IRICOLE - 4.530.0 6,715.0 1,130.0 12,475.0 ss.0 11,51.3 f. EWlEEIIN EUIEIEIT ARStUE - 15,520.0 10.170.0 - 23,6Y0.0 7..0 24405.5 S. NOWE. EUJ 1 LADTMZE 414.0 3439.0 13,414.0 250.0 24,ss7.0 n5.0 73n;.,.7 W. EN J fENDf EUIIFET LANRTINE - 1,307.0 2o436.0 - 3423.0 99.0 3411.9 I. VERILES sfEh 3100.0 12,200.0 9.00.0 69200.0 29900.0 95.0 23,405.0 J. TKNNEIENT WItLS - 4i20O.0 2,000.0 - 6,200.0 99.0 5ue0.0 K. HOWL EDUFT K IEM 400.0 3A40.0 2s,00.0 - 5.100.0 30.0 4,640.0 L. OWOL EWIPEN NELEB 1,500.0 10,767.0 6,217.0 - 183484.0 40.0 7t3936 N. HOVEL EDUET IWORKATIIUE 350.0 4.150.0 1.400.0 700.0 66N.0 95.0 6,270.0 O. CIYEL EQUUfDTf RAIO 1,500.0 3.000.0 - - 4,500.0 95.0 49275.0 D. NOELE EUJIPEN ETRIIE - 26o0.0 1700.0 - 4,330.0 95.0 4,161.0 P. ORWL EUIPENT ATELIER - 750.0 75D0. - 1400.0 95.0 1,421.0 U. OLEN EUIJIPC MTMU ATIUI - 2.220.0 39440.0 2,3W0.0 8460.0 95.0 P.037.0 R. HOVWEL EUIIIPEJI TOPUUPAE - 930.0 1.110.0 360.0 2P400.0 95.0 2,290.0 S. FMTATI 6533.0 19,390.0 11,345.0 B-323.0 45,646.0 90.0 41,091.4 T. ETDES 9500.0 16u500.0 13,000.0 1,5O.0 3,500.0 99.0 37,53.0 U. tRTOGWI - 7,500.0 7W.5.0 - 15,000.0 95.0 14,ZS.0 Totum WIIESTISSEUJITS 224322.0 261i736.0 237,230.0 21.313.0 s4,61.0 63.4 3439941.7 U. FRUAS ME fPONCrlOHN A. FEKSOEL OPERA? 18.WERITAIE - 3,030.0 3.532.o 32.0 10144.0 0.0 0.0 3. FENIIEL OPERATIIIEL TENCS - 79964.0 3664.0 89664.0 292n.0 0.0 0.0 C. FERS1EL WPERATIIEL APFOPTES - 29.532.0 3050.0 e 31,543.0 919620.0 0.0 0.0 D. PRSENEL WURTIUN EL JULRS 141.0 381117.0 33,322.0 39.762.0 116,842.0 0.0 0.0 E. FERSNEL OERAIIOEL SAISS_E - 7,560.0 7,160.0 7i560.0 27W60 0.0 0.0 F. lERSle O TISAELSSISTMIE E 16000.0 24.000.0 24.50.0 24,000.0 Ww900.0 90.0 79200.0 S. FERSONNEL K REDOEI I IVERTABE - 033s6.0 109776.0 12.536.0 33M643 0.0 0.0 H. FENNEL E RIIERCIE TEDIIICI6 - 17s150.0 19,600.0 2100.0 3s,640.0 0.0 0.0 I. -Es K RllEE1 A9iSTAIIE IEOHZRE - 16,00o.0 24,000.0 24000.0 640iN0.0 90.0 57,600.0 J. FSfhEL BE REDEKIE 11159I1S D APPUT 2.000.0 19,0.0 19,000.0 16,000.0 56,00.0 90.0 s0,400.0 K. FRAUS WEATIUIUELS FEWIIURE REDECI - 24,000.0 25000.0 26,000.0 75,000.0 75.0 56,250.0 L. RAU WEAIRAIES DI2 ESSER S - 9,700.0 9,700.0 11500.0 29,990.0 0.0 17o940.0 B. FRS WERATIONELS WHItES - 22,400.0 26,400.0 2S-B00.0 7s9600.0 30.0 62,330.0 H. FRAIl UPERATUNNELS EPLAEDNT - 4,31.0 6,1.0 Br350.0 19050.0 0.0 0.0 D. FRAUS WMU1UIS EIETIEN EaIFIEIQT - 4,5O0.0 4,500.0 4D500.0 13,550.0 73.0 10P,1.0 P. ris WDRAnIOELS ENTREIEN IIFPASlTWE - 15,000.0 15500D.0 15O00.0 45,000.0 40.0 13.000.0 O. FIS UPERATIOINELS ASSUMAES - 1,000.0 1400.0 20OO0.0 4.100.0 0.0 0.0 Tatu FRAIS BE FOINIE 18,141.0 252,68.0 274,944.0 29,452.0 932,226.0 42.3 312,395.0 Trla COTS 40.463.0 514.425.0 5129174.0 307,765.0 1374,s7.0, 30.6 69,336.7 Prision rwr iin phssiouen 669.4 36,19.1 35,229.1 6,963.7 78,931.2 45.2 35,693.5 Prvision Pour hasos de Prix 852.1 61,059.9 115,320.9 102,045.3 279,278.3 38.1 106507.6 Tatum C11T1 U FRO, Y COIS PFID US 41984.5 U6,654.0 662,r.4.0 416,674.0 1?,7,036.4 48.4 833,57.8 - - - - a~~~~~wwfwjw -- na-,, Devises 37,365.1 303,111.3 3189746.4 17N31'.0 833,57.3 0.0 0.0  - 81 - Anuex/Annere 7 Table 2 rimE PUS K KOIKIC AflE WENESM ANELES PAR m UNCE K flNUI:C41E10RE C tAs tlan u cnnris Pnwisies Cots totau , cwrris rovisiu, (FRV 'NO) (USS 100) 1984 1185 1116 1937 Tote 1934 195 136 19S7 Teta 1. D'INVESTIEENTS A. W U GENIE CIVIL NNlUATIN - 41P416.8 103005.5 - 1449422.3 - 427.0 1,061.9 - 1,418. L I111 GENE CIVIL WEERATOIIEL - 125.12.4 74,045.8 - 19.959.1 -19299.1 763.4 - 2.061.4 C. fMADLITAnlhIU GEIE CIVIL HAIATII - 10,743.0 18.294.6 - 29,037.5 - 110.3 1B.6 - 29.4 D. IEDIMLITATION ERIE CIVIL MERATIOUEL - 14,326.1 13,247.8 - 27,573.9 - 247.7 16.6 - 294.3 E. AMIW EOIIPEINT AltAELE - 4,946.1 7#972.3 1,507.9 14,326.2 - S1.0 1.2 15.5 147.7 F. RElNUEEN EWUIPMN SiCMLE - 16,760.5 119922.7 - 283683.3 - 172.8 172.1 - 295.7 S. NW! EIFEDWE LADOIRE 493.2 1,113.5 130P70.5 319.5 27.996.7 5.1 14.0 116.3 3.3 2136 H. UNOEML EDUIPIEB LANRATOIE - 1,497.9 2.955.8 - 49353.7 - 15.4 29.4 - U.9 1. VEIVNfIEAUX 3.057.0 13,175.2 9,964.9 7,922.7 34,119.3 31.5 135.3 102.7 91.7 351.3 J. REN DENT VEICLUES - 4535.7 29344.7 - 6,990.4 - 46.3 24.2 - 70.9 K. NOU ERMPEN BE 11E 450.3 4,073.6 2,607.2 - 7,136.1 4.6 42.0 26.9 - 73.d L. NW!L 1NC IEIKS 1.703.i 13250.3 3,3.6 - 23,295.5 17.6 136.6 .9 - 240.2 1. JNEW! EDIJIT DFOMATJE 356.7 4,491.7 1.641.3 094.5 7.374.1 3.7 46.2 16.9 9.2 76.0 N. N1. EHNV RADI 1,S81.4 3.563.1 - - S245.1 17.3 36.7 - - 54.1 L NIU EOPNTR ECMTRIGE - 2,394.2 1.993.0 - 4,987.2 - 29.3 20.5 - 50.4 P. 1N1 EIU1PENT AlELIER - 890.9 967.2 - 1985B.1 - 9.2 20.0 - 11.7 0. NOW E EuF DOOETATIWN - 2,757.1 4,637.3 42114.7 11,501.6 - 21.4 47.3 42.4 113.7 L NOW .PSENT TUFOGRPHIE - 1104. 19431.4 506.0 34,2.2 - 11.4 14.3 5-2 31.4 S. FIEATIU 79051.2 22,053.7 14,015.8 11,207.38 54341.6 72.3 227.4 144.5 115.5 560.2 T. ETUDES 8e61.5 17.915.? 15.240.5 1.96.3 43,637.6 89.3 113.7 157.1 119- 449.9 0. CSTIIRARIE - 9099.5 8792.6 - 16,9F2.1 - 31.5 90.6 - 174-1 Toem D'DIESTISSEIMIETS 23467.9 3239425.5 321,29P.0 29,3P1.9 6969571.2 241.9 39334.3 39312.2 292.7 74131.1 ~ ur _ = m rr .z z asn U. FRiAS K F01TlHEEI A. 0ESlEIW OPERATllQ! tWIUERSITAIRE - 3t532.3 49425.! 44823.3 12.7M2.2 - 36.4 '5.6 49.7 131.8 3. PERfIC!. OPERSATI(E 7ECl - 9,134.1 20,355.9 119832.9 31,B23.5 - 94.2 111.9 122.0 323.1 C. PEr .E OPERATIE APPINTES - 33,973.6 399266.0 43,096.7 115P226.3 - 349.2 394.5 444.2 11W7.9 3. PERIOiiEL OERA IOI.JUW 147.7 43P720.7 49.643.2 549304.? 146,316.5 1.5 450.7 501.S n .1 1.513.6 E. PErl PRAl7IWEL SAISUERS - 9,M.1 10t 393.4 111P73.8 32,739.4 - 102.3 112.3 122.4 337.5 F. wssNEB DPESA1I3IE 4S51571111 7EIINMUE 16,323.0 26t043.1 23t238.1 30779.6 101,34B.3 163.3 210.1 29.1 317.3 1044.3 S. PERS1E DK REIE IIQVFPSITAIE - 11,855.5 13.502.1 17,121.0 42,47B.7 - 22.2 139.2 176.5 437.? H. PERIWOEI.OE RERCIME TECHNICIENS - 19,671.3 24.553.4 21,36.6 73-866.5 - D2. 253.2 305.5 761.5 1. ROJUEL IIDE RE E ASSIS7AICE TECNIE - 17,335.4 3,238.1 30,779.6 769353.1 - 17B.7 291.1 717.3 717.1 J. PERSOF31! BE REC3ERCIE IISSIONS B API1 2,041.0 20,585.B 22,355.2 20,519.7 65.501.7 21.0 212.2 230.5 211.' 675.3 K. FRAIS GPEJATIDNNELS FOURNTMS RECER3E - 27570.1 31S219.7 35,390.6 Y4.180.4 - 234.2 321.9 364.9 9.? L. FRAIS EATIOELS FOnIMS SERICES - 10.090.9 122242.9 ISP121.1 39,155.0 - 104.0 12.2 163.1 393.4 M. FRAI TERnONELS WILES - 2S,649.1 32P350.3 40,418.4 93,917.6 - 264.4 33.7 416.7 1,019.3 N. rAIS WMTIlIELS DLCOEIT - 5239.0 89354.3 11,974.2 25,Sr7.4 - 54.0 86.1 123.4 263.6 0. FRAIS WAn IULs ENRITE1 IIIBEIEJT - 5.169.4 5,619.5 6125.3 16,914.2 - 53.3 57.9 63.1 174.4 P. FRAISl IFfVATIOELS ENTRETIEN IRMSTITRICTE - 17,620.6 199199.7 20,927.7 57,743.0 - 131.7 197.9 215.7 515.3 a. FRAIlS EERATXIIS ASSIMNMCES - 1,204.4 19734 2i68.1 6.045.? - 12.4 20.3 79.6 62.3 Totaux FRS BE FCNCTIINHEIIENIT 18.516.7 289322B.5 341,435.9 318.24.1 1.036.465.2 190.1 2,971.4 3,520.0 4,002.9 10.615.2 Ta Tc -60 6=== 4== 13= == L_.7 _=n _Srns 18st Totai