Guinea - National Agricultural Research and Extension Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 7277-GUI STAFF APPRAISAL REPORT REPUBLIC OF GUINEA NATIONAL AGRICULTURAL RESEARCH EXTENSION PROJECT August 24, 1988 Agriculture Operations Occidental and Central Africa Department This document has a restricted distribution and may be used by recipients only in the performance of their offcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Guinean Franc (GF) US$1.00 = GF 445 a/ WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS BSD - Bureau de Strategie et de Developpement CCCE - Caisse Centrale de Cooperation Economique CIRAD - Centre International en Recherche Agronomique pour le Developpement CNEARC - Centre National d'Etudes Agronomiques des Regions Chaudes DGFPR - Direction Generale de la Formation et Promotion Ruzale DMVA - Division des Methodes de Vulgarisation Agricole DNRA - Direction Nationale de la Recherche Agronomique EEC - European Economic Community FAC - Fonds d'Aide et de Cooperation FAPA - Fermes Agro-Pastorales d'Arrondissement FED - Fonds Europeen de Developpement FEW - Field Extension Worker GTZ - Gesellschaft fUr Technische Zusammenarbeit IFAD - International Fund for Agricultural Development IITA - International Institute for Tropical Agriculture MARA - Ministere de l'Agriculture et des Ressources Animales ONADER - Operation Nationale pour le Developpement de la Riziculture PAG - Projet Agricole de Gueckedou PE - Point d'Essai PPF - Project Preparation Facility PPV - Projet Pilote de Vulgarisation SAFGRAD - Semi-Arid Food Grain Research and Development SCET-AGRI - Societe Centrale pour l'Equipement du Territoire Agricole SED - Secretariat d'Etat A la Decentralisation SERS - Secretariat d'Etat a la Recherche Scientifique SMS - Subject Matter Specialist SNATC - Service National d'Assistance Technique aux Cooperatives UEP - Unit6s d'Experimentation Paysanne WARDA - West Africa Rice Development Association FISCAL YEAR Government: January 1 - December 31 PROJECT YEAR January 1 - December 31 a/ West Africa regional rate for February 1988  FOR OFCIAL USE ONLk REPUBLIC OF GUINEA NATIONAL RESEARCH AND EXTENSION PROJECT TABLE OF CONTENTS PaRe DOCUMENTS CONTAINED IN PROJECT FILE ..... ..................... (iii) CREDIT AND PROJECT SUMMARY .......................... .. (v) KEY FEATURES OF THE AGRICULTURAL SECTOR ................... ... (ix) I. INTRODUCTION ............................................ 1 II. THE AGRICULTURAL SECTOR ...... ........................... 1 Agricultural Performance and Prospects ................ .. 1 Agricultural Institutions and Services .................. 3 Government's Policy and Strategy ..... .................. 5 IDA's Sector Strategy and Experience .................... 5 III. AGRICULTURAL RESEARCH AND EXTENSION, AND COOPERATIVES .... 6 A. Agricultural Research .............. .. ................ 6 B. Agricultural Extension ...... ......................... 7 C. Cooperative Development ..................... 8 IV. THE PROJECT ............................................... 9 A. General .............................................. 9 Project Rationale ....... ........................... 9 Project Concept and Objecti'es ............ ........ 9 Project Description . .............. 10 B. Detailed Features . . .11 1. Applied Research ..11 2. Adaptive Research Network . .12 3. Trainiing ..................... ...... 12 4. Extension Services ............................. 13 5. Cooperative Development ...... .................. 14 6. Monitoring and Evaluation .................... .. 14 7. Project Preparation Fund .................... ... 15 8. Institutional Strengthening .. .................. 15 This report is based on the findings of a Bank Appraisal Mission which took place from February 22 to March 11, 1988, consisting of Messrs. E. Locatelli (Mission Leader), B. de Chazal, L. Pohlmeier and Ms. L. Wardle (IDA) and B. Gray (Consultant). Figures were checked by Mr. S. Bakayoko, and secretarA Al work was done by Mrs. D. Abhe. The report was checked by Mrs. J. Ogang and Mrs. A. Hadjadj. This document has a restricted distribution and may be usd by recipients only In the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  (il) TABLE OF CONTENTS (Continued) Page C. Project Costs and Financing ........................ 15 r'.,t Estimates ................................... 15 Project Preparatior. Facility ..................... 16 Financing Plan ................................... 16 Financial Management Systems ..................... 17 Auditing and Reporting Requirements .... .......... 18 Procurement ...................................... 18 Disbursements .................................... 20 Revolving Fund ................................... 20 V. ORGANIZATION AND MANAGEMENT ............................. 21 Research .............................................. 21 Extension ............................................. 22 Research/Extension/Farmers Linkage .................... 23 Cooperatives .......................................... 23 Institutional Strengthening ........................... 23 Monitoring and Evaluation ............................. 24 VI. BENEFITS AND RISKS .25 Benefits.25 Budgetary Implications. 26 Employment and Poverty Impact ......................... 27 Environm.ental Impact ................................................... n7 Project Risks ........................................ 27 VII. ASSURANCES, CONDITIONS AND RECOMMENDATION .... ........... 28 ANNEXES 1 Technical Recommendations Readily Available for Main Food Crops 2 National and Project Area Planted with Main Food Crops and Current/Estimated Yields 3 Location, Programs and Size of Research Centers 4 Location of Off-Station/On-Farm Trials 5 Population, Ratios Extension Agents to Rural Families, Estimated Area Covered 6 Extension, Phase-in of Prefectures and Staff 7 Project Costs by Component and Nature 8 Project Costs by Institution, Component and Nature 9 Disbursement Estimates and Profiles 10 Direction of National Agricultural Research - Organization Chart 11 Research Action Plan 12 Organization Chart - Extension Services 13 Technical Assistance 14 Economic Analysis - Economic Rate of Return 15 Economic Farmgate Prices MAP: IBRD No. 20896: Guinea National Research and Extension Project - Project Area, Location of Research Centers  (iii) REPUBLIC OF GUINEA NATIONAL RESEARCH AND EXTENSION PROJECT DOCUMENTS CONTAINED IN THE PROJECT FILE A. DOCUMENTS AND REPORTS 1. Deuxibme Projet d'Appui aux Services Agricoles/Vulgarisation Agricole. Preparation Report. SCET-AGRI, September 1987. 2. Deuxieme Projet d'Appui aux Services Agricoles-Recherche Agronomique. SCET-AGRI, July 1987. 3. Rapport sur la Recherche Agronomique Guineenne. Projet Quinquennal de Recherche Rizicole, Fruitiere et Vivriere. SCET-AGRI, February 1987. IRAT-IY%FA-CIRAD. 4. Etude de Restructuration des Services Agricoles et de Schemas Directeurs Regionaux de Developpement Rural. SCET-AGRI. AGROPROGRESS. August 1986. B. STAFF WORZKING PAPERS 1. Research-Diagnostic Survey; Training Program; Project Staffing; Research Program; Calendar of Research Activities. Extension-Training Program; Staffing. 2. Detailed Cost Tables; Production Data; Economic Analysis. 3. Cooperati;e Development.  (v) REPUBLIC CG' GUINEA NATIONAL RESEARCH AND EXTENSION PROJECT CREDIT AND PROJECT SUMMARY Borrower: Government of Guinea Beneficiaries: Ministry of Agriculture and Animal Resources (MARA) State Secretariat for Scientific Research (SERS) State Secretariat for Decentralization (SED) Amount: SDR 14.2 million (US$18.4 million) Terms: Standard IDA terms, with 40 years maturity Proiect DescriRtion: The project would, over a fiv--year period, improve the efficiency of Guinea's agricultural research and extension services, and develop an institutional framework for promoting farmers organizations, thereby contributing to increased agricultural production and farmers' incomes. This would be implemented through: (a) selection and testing of promising local and introduced plant materials and production technologies at the research stations; (b) establishment of teams for survey and analysis of farmers' constra'4nts; and a network of on-station and on-farm trials to test the adaptability of crop varieties and production technology in selected agro-ecological areas; (c) local and overseas training in commodity and cropping systems research, research and extension methodologies and management, and specific tezhnical topics; (d) reorganization and strengthening of extension services at the central and prefectoral levels; (e) support to a national cooperative support agency (SNATC) to establish the basis for a sound and sustainable cooperative movement; (f) strengthening of the capacity of MARA's and SERS's extension and research structurea for planning, management, and monitoring and evaluation; and (g) funds to prepare/start-up other projects in the sector.  (vi) Estimated Proiect Costs a/ Local Foreign Total 2 of --- (USS million)------- Base Cost Applied Research 2.0 6.1 8.1 32 Adaptive Research 1.2 1.6 2.8 11 Training 0.6 2.7 3.3 13 Extension 1.9 4.0 5.9 24 Cooperatives - 0.6 0.6 2 Monitoring & Evaluation - 0.2 0.2 - Project Prep. Fund 0.2 0.8 1.0 4 Institutional Strengthening 0.8 2.7 3.5 14 Total Base Costs 6.7 18.7 25.4 100 Physical Contingencies 0.7 1.1 1.8 7 Price Contingencies 1.9 1.8 3.7 15 Total Project Costs 9.3 21.6 30.9 122 (Including Taxes) Taxes 0.9 - 0.9 Total Project Costs (Net of Taxes) 8.4 21.6 30.0 a/ Including two PPFs for US$0.87 million for Pilot Extension Project and start-up research activities. Tentative Financing Plan Local Foreign Total -------(US$ million)------- Government 2.0) 0.9 2.9 IDA 4.6 13.8 18.4 FED 1.8 4.3 6.1 FAC - 1.6 1.6 IFAD 0.9 1.0 1.9 9.3 21.6 30.9 Estimated Disbursements of IDA Credit IDA Fiscal Year 1989 1990 1991 1992 1993 1994 1995 ---------------------(US$ million)--------------------- Annual 3.7 2.8 4.2 4.0 1.8 1.7 0.2 Cumulative 3.7 6.5 10.7 14.7 16.5 18.2 18.4  (vii) Benefits and Risks Benefits would stem from: (a) MARA's and SERS's improved ability to plan, coordinate, and implement agricultural research and extension at the national level; (b) increased production of food crops (about 1Z per annum) and fruit crops, thereby contributing to food security and increased exports. The increase in foocd production and the participation of women in extension activities would directly benefit them both as heads of rural households and as an important labor force in crop production; and (c) increased incomes for most of Guinea's rural community. Readily available technology would benefit, in a reladively short period, over 200,000 rural families directly touched by the renewed extension service; research results would, in the medium- to long-term, benefit the majority of the rural families. Additional benefits would derive from the training of local Rtaff and the enhancement of farmer organizations. Major risks are related to ineffective management of research and extenaion programs, failure to adhere to agreed priorities and balance in research programs, and low adoption of research findings due to lack of confidence on the part of farmers and inappropriate research conducted in isolation. The first risk would be minimized by establishing an ad hoc committee for research and extension, providing technical assistance, and establishing contractual arrangements between research and extension services. The second risk would be reduced by establishing research priorities through an annual review of programs and budgets involving all donors and farmers. The third risk is addressed by the Pilot Extension Program wnich h.as reestablished fa_mers' confidence, and by emphasizing on-farm research and linkage among research and extension staff and farmers to make research and extension responsive to farmers' needs. Economic Rate of Return: 20Z (Extension component) Map: IBRD No. 20896  (ix) REPUBLIC OF GUINEA NATIONAL RESEARCH AND EXTENSION PROJECT KEY FEATURES OF THE AGRICULTURAL SECTOR Unit 1974-76 Av. 1986 1. Population Total M 4.7 5.64 Rural as 2 of Total Z 84.0 78.0 Rural Families '000 611.0 770.0 2. Economic Overview GDP/Capita $ 320.0 Agric. GDP/Capita Rural Population $ 140.0 126.0 Agricultural GDP as Z of Total S 43.0 31.0 3. Land Use Land Area sq.km 246.0 246.0 Perennial Ciops '000 ha 131.0 211.0 Annual Crops '000 ha 912.0 1,328.0 4. Output a/ (i) Rice 74-75 Av. a 100 100.0 144.0 (ii) Fonio 100.C 165.0 (iii) Cassava 100.0 120.0 (iv) Coffee 100.0 51.0 5. Inputs Fertilizers '000 tons - 1.0 6. Trade (Current Prices) Total Exports (FOB) $ m 186.0 554.5 of which: Agricultural Products S - 19.3 or which: (i) Palm Kernels Z 35.0 - (ii) Coffee S 25.0 - (iii) Pineapple S 31.0 - Total Imports: $ m 257.0 451.7 of which: Agricuitural Products S 9.0 - 7. Govornment Expenditures Total Recurrent Budget $ m 212.0 251.3 of which: Agriculture S - 1.0 a/ Total Capital Budget $ m 174.0 147.8 of which: Agriculture S 17.0 - a/ Outside externally financed projects  REPUBLIC OF GUINEA NATIONAL RESEARCH AND EXTENSION PROJECT STAFF APPRAISAL REPORT I. INTRODUCTION 1.01 Since December 1985, the Government of Guinea has been implementing an ambitious economic reform program to reverse the deteriorating trend of the economy over the last 25 years. In 1986-87, significant progress was made toward establishing a market-oriented economy. Results have been encouraging as significant supply responses have been observed in the rural sector; however they have not been sufficient to fill the gap between current and potential agricultural production. To achieve this, the favorable environment created by the policy reforms needs to be complemented by the improvement of agricultural support services which have been neglected for several decades. The Government has requested IDA's assistance in the formulation and financing of investments to improve such services: research and extension have been identified as priorities. The Government, aware of the need to start strengthening farmer organizations to provide input and credit services, would provide the seed funds required to help develop cooperatives. 1.02 An IDA-financed Pilot Extension Program is underway and training of research staff and maintenance of research activities are being executed under IDA Project Preparation Facility (PPF) financing. To complement these activities, the proposed project would (a) help develop an institutional framework for defining strategies and national programs of research and extension; (b) provide necessary funding to revamp and operate the systems; (c) provide support for cooperative development; and (d) make funds available to prepare other projects essential for sector development. It would finance the first five-year phase of a long-term program to improve research and extension at an estimated cost of US$30.9 million to be financed by IDA, the Government, the European Development Fund (FED), the French Aid Agency (FAC), and the International Fund for Agricultural Development (IFAD). The project was prepared through the pilot project (para 2.17). A preparation report formulated with the assistance of consultants (SCET-AGRI) was issued by the Government in December 1986. II. THE AGRICULTURAL SECTOR Agricultural Performance and Prospects 2.01 The rural sector, including agriculture, livestock, fisheries and forestry accounted for 30Z of GNP in 1986, and provided employment for about 80Z of the population. Despite the potential offered by Guinea's diverse and  -2- fertile natural resources, agricultural performance has been disappointing during the past 25 years. Agricultural commodities, while accounting for the bulk of Guinea's exiorts in 1958, now represent less than 3Z of the value of exports. In 1986, food imports increased by 13Z of total exports. 2.02 This picture of stagnating production and mounting import requirements until about 1980 was in marked contrast to Guinea's agriculture potential. The failure to develop the agricultural sector stemmed largely from distorted macroeconomic and sector policies (pricing, marketing, and resource allocation), dilapidated infrastructure, and ineffectual institutions (transport, research, extension, input supply, storage, and rural credit). This resulted in a lack of adequate technical advice and inputs to farmers. Since December 1985, the Government has implemented far-reaching reforms, including an initial 13-fold devaluation of the Guinean Franc (SF), followed by the ilntroduction of an at.-'tn system for foreign exchange; price decontrol; liberalization of internal and external trade; disengagement of the public sector from productive activities; and reorientation of public investment programs toward supporting the directly prod-ictive sector, particularly in rural areas. 2.03 While the policy reforms undartaken during the last three years have elicited an important supply response from the rural sector, the sector is still faced with the following constraints: (a) a very low level of technology, use of genetically eroded crop varieties, and inadequate production technologies resulting in extremely poor yields; (b) limited crop diversification; (c) slow emergence of the private sector in input distribution; (c) institutional weakness of support services including poor training, inadequate organization, and insufficient operating fur.ds; (d) lack of formal credit and of organized farmer groups; and (e) lack of rural infrastructuze. Nevertheless, the abundance and diversity of natural resources, though inadequately exploited so far, offer a wide r-nge of possibilities for inducing growth in the sector. In addition Guinea has a comparative advantage over a wide range of food and export crops even at prevailing yields, and the low yields offer considerable scope for increasing production through i-provements in cultivation practices and utilization of improved crop variet is. 2.04 Aware of this situation, the Government is now turning its attention to restructuring the agricultural services as a mean of releasing the sector's potential. However, services such as research and extension have to be started from scratch and their benefits can only be realized in the longer term. The farmers' confidence in coope-.atives has to be slowly regained. For this reason, in the medium-term, the sector is projected to grow at a rate of 3.82 per annum (below the expected average economic growth rate of 4.02 per annum). The contributors to this growth are likely to be food crops, coffee, cotton, fruits, and fisheries. However, if the present incentive framework can be maintained, and infrastructure and services improved, a higher rate of growth can be expected in the 1990s, making the rural sector the main pillar of economic growth.  - 3- Agricultural Institutions and Services 2.05 MJnistry of Agriculture and Animal Resources. The rural sector institutions were reorganized at the end of 1985, when rural activities (except forestry and hydrology) were entrusted to the then Ministry of Rural Development, today Ministry of Agriculture and Aniuial Resources (MARA). MARA is currently overstaffed and most staff are poorly equipped and trained to carry out their responsibilities. The Government is unde7taking a reorganization of central and field services to reduce staff numbers and to upgrade the training of the remaining staff. IDA is helping MARA in this effort through the study of the Ministry, financed and carried out under the First Agricultural Services Project (Cr. 1636-GUI), and through staff evaluation and selection financed under a PPF advance for the Second Structural Adjustment Credit. The Government is proposing for external financing an Institutional Reform Project to upgrade staff training, define work programs, anid equip various services to improve their efficiency. 2.06 Under the new organization, there were five Technical Directorates: Agriculture, Livestock, Training and Rural Promotion (DGFPR), Civil Works, and Agricultural Research (DNRA). Agricultural research has recently been transferred to the State Sec-etariat for Scientific Research (SERS). Extension services come under DGFPR. At the prefectoral _evel, the Technical Directorates, except for research, are under the supervision of a Prefectoral Director of Rural Development. At the regional level, Rural Development Regional Inspectors coordinate activities of various services in the prefectures under their jurisdiction. 2.07 Support Services. Research activities are few and do not respond to farmers' needs. Extension services, although physically present at prefectoral level, are not oDerational for lack of funding and national strategy. Input supply and distribution are inadeqgate, rural credit is virtually absent, and rural infrastructure has completely broken down. Donors' inputs have been restricted to enclave development projects, which in some cases are successful, but in general have not had a significant and sustainable impact. The current situation of research and extension services and the strategy for their development are elaborated in paras 3.01 to 3.08. 2.08 Seed availability is an important constraint on agricultural production, and the demand for improved seeds exceeds supply. Only about 350 tons of improved conditioned seed are produced under several externally funded projects including the IDA-financed Gueckedou Agricultural Development Project (PAG) (Cr. 1635-GUI, November 1985). Limited imports are available from tiae to time but tend to be rejected by farmers because they are of untested varieties. There are no private commercial seed operations in Guinea due to inadequate knowledge, uncertain financial profitability, and lack of capital and entrepreneurial experience. IDA is assisting in financing a National Seeds Project (Cr. 1864-GUI), recently approved by the Board, to select, multiply and condition improved seeds for sale to farmers. 2.09 The use of other production inputs such as fertilizer and chemicals has been minimal, not only because of limited availability and inadequate distribution by parastatals responsible for input supnly, but principally  - 4 - because of inadequate research and extension services. Since 1986, the Government has decontrolled the procurement of agricultura inputs, but the private sector has been slow to emerge. This is due in part to the high distribution cost and in part to farmers' lack of familiarity with the existence and potential benefits of production inputs. Greater use of production inputs and increased crop productivity are likely to result from the invigoration of research and extension services, and reduced distribution costs through improvements in the transport network. The Government intends to transfer responsibility for input supply and distribution to the private sector and subsequently to close the parastatals concerned. 2.10 Agricultural credit has been rare before and after the closing of the State Agricultural Credit Bank in 1986, except for credit financed under rural development projects by external donors. Commercial banks have just begun to establish branches in rural areas but are not inclined to lend for productive investments, except for trading, due to lack of security from farmers. Pilot programs to test the concept of rural banks that mobilize informal savings and lend to groups of farmers are being established by various donors in several selected areas. 2.11 Cooperatives. Before independence, cooperatives exported about 80,000 tons of fruit. During the following 25 years, the same negative environment that affected extension services (para 3.04) destroyed farmers' confidence in cooperatives. The cooperative membership was imposed by the Government and utilized as a means of extracting rent from farmers and of creating a collectivist movement (FAPA). Consequently, although aware of the importance of cooperatives to obtain credit and marketing services, farmers withdrew their active participation. Cooperative development is therefore delicate because if the State participates, it may be as a response to farmers' demand. The Government is making an effort to convince farmers of its intention to facilitate the cooperative movement without direct interference and, with its reform program launched in late 1985, invited the rural population to organize independeit cooperatives. Also, the Government passed a new cooperative law which emphasizes the autonomy of the cooperatives and gives the Secretariat for Decentralization (SED) an overseeing role. Under the law, the support and supervision of cooperatives would be performed by an independent Cooperative Support Agency (SNATC) (paras 3.09, 4.19 and 5.09). Although there are about 80 cooperatives and 130 pre-cooperative groups at different stages of development, additional support is necessary to ensure their success and to expand the movement. 2.12 Roads connect the main towns but are generally in poor repair. Rural roads development is limited and fragmented undeL various externally funded projects. In its public investment program, the Government gives priority to the rehabilitation of highways and the building of rural roads; IDA has assisted in formulating a national program for rural roads construction. It is now preparing a first five-year program under a Rural Infrastructure Project.  - 5- Government Policies and Strategy 2.13 The Government's current objectives in the rural sector are to promote food security, increase agricultural and fishery exports, and raise the standard of living of the rural population. To reach these objectives, the strategy adopted by the Government and supported by IDA aims at: (a) establishing trade and price policies to reinforce the functioning of a market-oriented economy; (b) improving investment conditions to attract private investment in the rural sector; (c) reorganizing agricultural services to provide national coverage and to reach mass audiences as opposed to area based services; (d) improving rural infrastructure in productive areas; and (e) developing MARA's capability in planning, strategy formulation, investment selection, monitoring, evaluation, and management of investment programs. 2.14 The investment strategy so far has been to finance area and crop development projects. These projects have their own organizations, and little provision has been made for sustaining their activities after project completion. The Government has recognized this shortcoming and is designing agricultural support services projects with a national perspective to ensure an harmonious approach to the provision of services to farmers and to make them sustainable in the longer term. National organizations would consolidate and take over structures and services created by donors in regional development projects, once the donors withdraw and financing ends. IDA's Sector Strategy and Experience 2.15 IDA's assistance in the Guinean rural sector has emphasized raising smallholders' incomes while creating durable institutions in both the public and private sectors. At the policy level, IDA has supported economic and financial reforms aimed at providing incentives to agricultural production, liberalizing internal and external trade, freeing producer prices to the determination of market forces, and enhancing the role of the private sector. Since February 1986, this strategy has been supported through the Structural Adjustment Credit (Cr. 1659-GUI) and the Special Facility for Sub-Sahara Africa (Cr. A/II-GUI). A second SAL operation was approved in June 1988. At project level, IDA has emphasized improvements to agricultural services for smallholders. 2.16 IDA has participated in the financing of five agricultural projects, of which two have been completed and one cancelled. The Daboya Pineapple F:oject was completed in 1981 to satisfactory technical standards but has experienced financing, input supply and marketing problems since completion. The Government is now seeking to involve private partners. The Rice Development Project (Cr. 952-GUI. September 1979) promnted rice development in the Forest Region and its successful results gave rise to the PAG which is progressing satisfactorily. The Livestock Development Project (Cr. 1063-GUI, September 1980) was cancelled in September 1983 due to the Government's failure to take measures to remove forced marketing of cattle and to offer adequate incentives to herdsmen for sale of thsir cattle. Most of the components of this project were subsequently included in the Livestock Sector Rehabilitation Project (Cr. 1752-GUI, August 1986), after the change of Government in April 1984. Although the project started slowly due to difficulties in implementing a staff redundancy program, it is progressing  -6- satisfactorily. An Agricultural Services Project (Cr. 1636-GUI, November 1985) was designed to improve MARA's capability in planning, policy formulation, and project analysis; it is also progressing in a satisfactory manner. 2.17 IDA's lending strategy for the medium-term continues to support the policies outlined above. In addition, it focuses project lending activities on the improvement of agricultural services at the national level, starting with the National Seeds Project. A Pilot Extension Program (PPV), started in July 1986 (paras 3. 5 and 3.06), has provided the basis for the preparation and appraisal of the proposed project. A Rural Infrastructure Project to develop rural roads and valley bottoms is under consideration. To support initiatives in protecting Guinean natural resources, IDA is considering the financing of a National Forestry Project. III. AGRICULTURAL RESEARCH AND EXTENSION, AND COOPERATIVES A. Agricultural Research Background and Current Situation 3.01 Before 1958, agricultural research was actively and well conducted in four stations (Bordo, Foulaya, Koba and Seredou). Research during this period was diversified with emphasis on food, fruit and industrial crops. Several varieties of rice, maize, groundnuts and fruits were selected and disseminated, and some can be used today due to their good agronomic and cooking characteristics. From 1959 to 1963, resources became scarce and research activities stagnated. From 1964 to 19_', agricultural research services were placed under the management of the Ministry of Education and concentrated on direct production, neglecting research. After 1980, some research was initiated through the creation of a Rice Development Agency (ONADER), the membership of Guinea in regional research efforts including the West Africa Rice Development Association (WARDA), and Guinea's participation in Semi-Arid Food Grain Research and Development (SAFGRAD). Activities were also initiated in various rural development projects including the IDA-financed Gueckedou Rural Development Project (PAG), with small research components. In 1985, the Government entrusted all research responsibilities to a newly created National Directorate for Agricultural Research (DNRA) now under the State Secretariat for Scientific Research (SERS) (para 2.06). 3.02 Despite the numerous institutions and projects involved, agricultural research activities are minor except under externally financed projects in which research is crop specific and isolated. Research stations outside PAG have been short of equipment and operating funds. As a result, past research has been mothballed, infrastructure inadequately maintained, records poorly preserved, and conservation of germplasm jeopardized. Furthermore, there is a duplication of research and extension efforts among the various regional development projects, and a serious geographic imbalance of research programs caused by fragmentation into regional projects. In sum,  research has failed to deal adequately with production problems and environmental degradation. Nevertheless, Guinea is relatively well endowed with technical agricultural research staff, several research stations still maintain some acceptable infrastructure, and some gool genetic materials have been preserved. The update of staff's technical knowledge and provision of maintenance and operating funds are urgently needed to reinvigorate the research service and prevent further loss of qualified staff and deterioration of infrastructure. With proper measures, the research system could be rehabilitated. Several donors are willing to contribute to the development of a sound and coordinated research effort. IDA is assisting this rehabilitation under a recently approved PPF by providing the training of essential staff, diagnostic surveys, and minimum logistic and operating cost support. Research Obiectives and Strategy 3.03 The main objective of research is to provide, as soon as possible, plant material and production technologies developed in Guinea or elsewhere, which would increase productivity and narrow the gap between current and potential agricultural production in Guinea. To achieve this goal, the strategy would consist of the rehabilitation of the existing research network, aimed at developing a national, decentralized service staffed and managed by trained local personnel. It would concentrate on adaptive, on-farm research to provide rapid answers to farmers' needs. B. Agricultural Extension Background and Current Situation 3.04 For over 20 years, there has been no extension service for smallholders in Guinea outside area based rural development projects (notably PAG, the CCCE/EEC Cotton Project at Kankan and the African Development Bank's Siguiri Rice Project); but these projects have only covered a fraction of the country. Before 1984, the concept of extension did not exist. State agents were tax collectors exploiting farmers, thereby creating a sentiment of distrust. After 1984, responsibility for extension was passed on to MARA, but no national strategy was designed; there was no national coordination, and several structures and unrelated methods were used within confined geographical areas or on specific crops. However, the most important shortcoming was that messages, when available, were disseminated by individuals at the prefectoral level rather than through mass transfer to farmers. Consequently, current efforts are poorly coordinated and will probably be non-sustainable once project funds are no longer available. 3.05 It was the PAG, started in 1980, that first convinced the Government that peasant farmers could produce surpluses for the market. The project showed that extension services, run along the lines of the Training and Visit (T&V) system, and raral engineering services designed to improve water management in small peasant rice fields can be very productive. Faced with this positive experience but also with the problems of distrust and inefficiency of extension services (para 3.04), the Government launched, in July 1986, a Pilot Extension Program (PPV) using the T&V system of extension  - 8 - in 6 of its 33 prefectures. This action was intended to test (a) the ability of Guinea's managers to operate an extension system according to a carefully programmed work schedule, the standard T&V system; (b) the technical capacity and attitude of field extension workers to teach and transfer messages to farmers; (c) the ability to locate and train Subject Matter Specialists in an environment with limited information; and (d) the reactions of farmers, considering that there was a history of government agents exploiting peasants (para 3.04). 3.06 The geographic scope of the PPV was to be relatively modest, covering 20-252 of the districts in any given prefecture. A total of 123 districts were covered. IDA provided a PPF advance of US$0.32 million to execute the program. The Government began training staff in September 1986, with the help of specialists from IDA. In July 1987, a Bank mission reviewed progress and concluded that, despite a lack of equipment: (a) the national and prefectoral management of PPV was in place and had shown its ability to execute a production extension program based on the T&V system; (b) farmers had shown willingness to work with extension workers who follow good work schedules and have meaningful technical advice for them; (c) a small but sJignificant number of technical themes for major annual crops has given demonstrable results (Annex 1); and (d) othe.r projects (e.g., GTZ-financed Rural Development Project in Kissidougou and the Rural Development in the Fouta Djallon to be financed by IFAD) now intend to use the T&V system. Therefore, the mission proposed to add 88 new districts to those already included in PPV and to expand the number of prefectures covered from 6 to 10 in 1988/89. 3.07 Since the benefits of PPV in the field have met expectations, MARA would now like to apply the system at the national level so that low risk research results can be transferred quickly and with modest means to a greater segment of the farming population. Extension Obis-tives and Strategy 3.08 The main objectives of extension are to (a) help identify farmer needs; (b) assist in the formulation of relevant research programs; (c) ensure the utilization of research results; and (d) provi.de farmers' feedback to research on the acceptability of technologies. To achieve these objectives, the strategy would consist of the rehabilitation of the extension system by developing a national, decentralized, low cost and sustainable extension service built on the PPV experience. The service would be staffed by adequately trained local personnel and would emphasize coordination among research, extension, and farmers. C. Cooperative Development 3.09 Aware of the importance of farmer organizations (para 2.11) the Government has recently decided to entrust the role of supporting cooperative development to an independent cooperative support agency (SNATC). This service would be the predecessor organization of a national federation of cooperatives and its initial activities would be financed under the proposed project. The main objective of supporting a cooperative development movement is to facilitate the establishment and evolution of a network of rural  - 9 - organizations which would provide their members with inputs, marketing, savings and credit services. The strategy would consist of establishing a cooperative support agency to promote existing pre-cooperatives (farmers and wome:, groups) and cooperatives, and facilitate the establishment of new groups and new cooperatives. IV. THE PROJECT A. General Project Rationale 4.01 Guinea's overall economic growth continues to depend heavily on "griculture. The Government has made considerable progress in creating a favorable economic environment (para 2.13) and its attention is now turned to specific agricultural services. It aims at creating and rehabilitating priority services at the national level to complement policy measures in filling the gap between current and potential agricultural production. To achieve this goal, action is needed to rehabilitate the research and extension services, and the existing cooperatives, and to support new groups of farmers who can supply marketing and credit services. Such actions are however constrained by shortage of finance, institutional weakness, farmers' distrust, and the need for Guinean staff to develop research and management skills (paras 2.11, 3.02 and 3.04). 4.02 IDA's involvement in the project is regarded by the Government as important in helping to develop one national rather than several regional agricultural research and extension services. Other donors have focused their efforts on area based services, ignoring the need to ensure services over the entire country and sustain them once donor financing ends. Only IDA is interested and able to assist in establishing a sustainable national service, which will also help coordinate the various donor approaches and eventually prevent the emergence of programs outside the national strategy. The project is fully consistent with IDA's assistance strategy for Guinea in that it would build upon existing organizations, plant material and technological improvements in the region (Annex 1), available infrastructure and staff, and ongoing pilot programs (paras 2.11, 3.02 and 3.05); it would provide a catalyst for improvement in the contribution of several other donors (paras 3.02 and 3.05) and would rely heavily upon the closest possible links with the main recipient of the effort - the small farmer. It is also an essential link in the chain of agricultural services projects financed by IDA in Guinea, which includes the Agricultural Services and the National Seeds Projects as well as projects under preparation (para 2.16). Also, the Bank has a model in the T&V system, which is working well in other countries. Proiect Concept and Obiectives 4.03 The proposed project is the first five-year phase of a long-term program during which agricultural services would receive external support.. Its main objective would be to assist farmers who operate at a very low level of technology in improving the productivity of their farming systems. This objective would be accomplished through: (a) providing the support necessary  - 10 - to plan, manage, monitor and evaluate a National Research and Extension Program; (b) funding and expanding commodity research consistent with sector development objectives; (c) rapid testing of locally and regionally available crop varieties and production technologies; (d) adequate transfer and diffusion of these through a system of mass extension sustainable in the long run by the Government; (e) creation and consolidation of links among research, extension and farmers; (f) development of an institutional framework for promoting farmer organizations; and (g) support to the above actions through a major training program so as to develop the Cuinean capacity for designing, managing and implementing research ana extension operations. The project is designed so that priority is given to the diagnosis of farmers' needs and the early development of improved techniques which would respond readily to these needs. Proiect Description 4.04 The project would support, over a five-year period, the rehabilitation of the national research apparatus and the establishment of a sustainable extension system. It would be national in scope, involve several donors interested in supporting the services, and include the following components: (a) Applied Research. Support to six research centers located in the main agro-ecological regions, to facilitate the identification, selection, and testing of local and introduced plant materials and production technologies. (b) Adaptive Research. Establishment of Research and Development (R&D) teams for survey and analysis c' farmers' constraints; and of an off-station and on-farm research network to carry out trials to test adaptability and acceptability of crop varieties, production technologies and different farming systems for smallholders in the different agro-ecological regions of Guinea. (c) Training. Provision of local and overseas task-oriented training in commodity and cropping systems research, research and extension methodologies and management. (d) Extension Services. Strengthening and reorganization of MARA's extension services to ensure proper assessment of farmers' needs and adequate delivery of messages. (e) Cooperative Development. Support to an independent Cooperative Support Agency (SNATC), to create the neccssary conditions for a sound and sustainable cooperative movement which would ensure marketing and credit services to farmers. (f) Monitoring and Evaluation. Support to MARA and SERS for overseeing project impact through the creation of small M&E cells. (g) Project Preparation Fund. Funding to prepare and start other projects in the sector.  - 11 - (h) Institutional StrengtheninR. Strengthening of the capacity of the research and extension structures for the planning and management of research and extension activities. B. Detailed Features 4.05 The refinement and better definition of the research and extension programs and of farmer groups requirements necessary for a coherent approach to farmers' problems would be sought by means of diagnostic surveys, on-farm research, training of key research and extension staff, and support to farmer groups. Farmers would actively participate in most stages of the process from conducting on-farm trials to assessing the benefits of new developments and providing feedback through direct interaction with research/extension staff and participation in an advisory committee (para 5.04). This work would permit the assessment of farmers' preferences and production cor.straints; the identification of available technologies and plant materials suitable to Guinea; and the launching of operations and programs with sufficient, adequately trained staff. Some of these surveys and training have already started under PPF funding. 4.06 Applied research would seek to verify the performance of new plant materials and technologies in the various agro-ecological conditions of DNRA research stations, off-station sites, and farmers' fields. Research programs on off-station sites would include farming systems and crop trials to both maximize production and assist in environmental protection. Adaptive research in on-farm trials would be designed to validate and adjust on farmers' fields the technical recommendations derived from applied research i'nd the findings of diagnostic surveys. Work would concentrate primarily on removing major technical constraints for the production of rice and other important cereals such as fonio, maize, root crops, and to a lesser extent, f. it crops, coffee, and oil palm. These commodities have been selected on the basis of area planted (Annex 2), economic importance, and indicative demand and potential. 1. Applied Researcb 4.07 On the basis of the results of diagnostic surveys (Working Paper No. 1), applied research would be conducted in six selected research centers (Annex 3). The work in the centers would concentrate in order of priority, on (a) testing varieties and production technologies already available, which could be readily transferred to the field; (b) providing solutions to problems encountered in the field which require statistically valid and well controlled research; and (c) developing alternative rotation and cropping systems for problem regions (e.g., Fouta Djallon and the Forest Region). The main thrust would be to produce rapid results to solve farmers' problems, test them in farmers' fields and evaluate them socio-economically. 4.08 Research would be conducted by existing staff who would undergo appropriate training (para 4.12). These staff would be supported by international orgatixzations, such as CIRAD, WARDA, IITA, etc., which would provide assistance with plant materials and production technologies and  - 12 - advise on the organization and conduct of research under contractual arrangements in specific situations. The stations selected are Koba, Foulaya and Kilissi in Guinee Maritime, Bareng in Middle Guinea, Bordo in Upper Guinea, and Seredou in the Forest Region. Koba, on the coastal plains, would be concerned with rice and possibly other food crops, whereas Bareng, Bordo and Kilissi would deal with the whole range of annual food crops. Foulaya would be largely involved in fruit trees but with a limited food crop program (basically root/tuber crops). Seredou, in the distinct forest zone environment would be concerned with both food and perennial crops. Details of the stations and their crop development responsibilities are given in Annex 3. 4.09 The project would finance a minimum of civil works consisting of office and laboratory facilities, limited housing for stations distant from urban centers, and farm infrastructure. It would also finance farm and laboratory equipment, vehicles and operating costs, incremental staff salaries, and travel allowances. Financing would also be provided for short- and long-term technical assistance (paras 5.10 to 5.12). 2. Adaptive Research Network 4.10 Off-station, adaptive t:ials including both simple replicated experiments on distinct sites set up by research/extension staff and tests on farmers' fields (conducted by farmers) would be given priority under the project. As the precursors to the establishment and development of the adaptive trials network, diagnostic surveys would be conducted in four ecological zones within the operating area of each center. These surveys would be directed, and the results analyzed by, multi-disciplinary teams which for each center would consist of agronomists, agricultural economists, and sociologists. Thus, farmers' criteria would be given major emphasis and on-station research would be reoriented as appropriate. 4.11 Trials would be carried out at strategic points in each ecological region of the country (Annex 4) directly linked to, implemented and controlled by research and extension staff. Initially about 20 off-station sites would be developed preferably in areas adjacent to the stations but representative of agro-ecological differences; in addition, six sites would be established within the centers. About four tests on farmers fields (on-farms trials) per off-station site would be conducted with direct participation of farmers. The linkage among research, extension, and farmers would be ensured through research and extension staff working with farmers in the on-farm trials program. Details of diagnostic surveys and on-farm research as well as locations of off-station and on-farm trials are given in Annex 4 and Working Paper No. 1. Financing would be provided for materials, vehicles, incremental staff salaries, and operating costs for the surveys and on-farm trials. 3. Training 4.12 The main areas of training for research staff are management and budgeting, research methodologies, specific disciplines (soil fertility, pest control, etc.), cropping systems research, and statistical and socio-economic evaluation of resul-s. Local and overseas task-oriented training would be  - 13 - provided for about 251 staff, of which 19 are research directors and managers, 14 administrators, 33 generalist researchers, 61 Fpecialists, and 124 technicians. A systematic training program for the five years of the project has been prepared (Working Paper No. 1;. The rigorous enforcement of this program is of critical importance for executing the research program under consideration, and for that reason national and international organizations including WARDA, IITA, CNEARC, and CIRAD have been contacted to provide specific training on site and overseas. An emergency training program is being implemented under PPF financing. 4.13 Extension staff would be trained on management and budgeting, extension methodologies, and task oriented topics primarily on site. Local training would be carried out in four areas (Gueckedou, Tindo, Banban and Pita) utilizing existing infrastructure except for Pita whLere a simple classroom would be constructed. Training for field extension workers (FEWs), other than the regular fortnight sessions typical of the T&V, would be carried out by Subjec. Matter Specialists (SMSs) and/or visiting research staff. Training of the SMSs would be carried out annually at the nearest research center. Six three-month s-ssions of overseas training in specific areas would also be provided for key counterpart staff. Funds would be available for 19 man-months of consultants to train staff in Guinea in areas such as training for trainers, extension methodology, diffusion methods, and preparation of audiovisual material. 4. Extension Services 4.14 The project would organize and strengthen the extension services by supporting and gradually expanding the Pilot Extension Program (PPV) activities; it would also provide the necessary assistance at headquarters level to manage the national service. The typical T&V field organizational structure and ratios between staff/extension workers and farmers would be used in the project with local modifications deriving from experience in implementing the PPV. The average ratio of FEW to farmers would initially be 1:250 to 1:300, but would be modified under the project as appropriate and significantly reduced as the system becomes known and established. Under the T&V system, extension agents regularly visit farmers on their own land. They provide messages which farmers put into practice on demonstration plots or in their own fields. The original message is then spread to the farming community. No inputs or credit are provided, and the messages are linked to crop cycles and initially emphasize simple cultivation practices (improved spacing, planting rates, timely weeding, etc). The system ensures an efficient mass transfer of technology and proper feedback from farmers. 4.15 The PPV initiated activities in 6 prefectures and 123 districts in 1987, with a plan for expansion to 10 prefectures and 275 districts in 1988 and 1989. In the five-year period, the project would expand the managed extension service to a total of 16 prefectures or about 48X of the total. At full development, the system would directly involve at least 50? of the farming population in these prefectures. Details on population by prefectures, rural families, participating staf., and phase-in involvement program are presented in Annexes 5 and 6 (see also IBRD Map No. 20896).  - 14 - 4.16 As in most other African countries, women play a key role in Guinea's agriculture and consequently in food production both as heads of rural households and as an important labor force in crop production activities. They also suffer from the usual problems of poverty and are often disadvantaged by tradition which limits their capacity to earn income, access information and productive resources, and control time and resources. Some ways of addressing women's needs are to ensure that they are chosen as contact farmers or appointed as extension agents, that messages relevant to their activities (food crops, crop storage) are designed, and that women groups are used as contact points. 4.17 The T&V system seems to be well suited to reach women farmers. Organized groups of women farmers are more willing to meet regularly faith extension agents than individual women. Also they tend to be more ready to adopt extension messages and more effective in channelling information. In order to ensure proper coverage of women farmers and given their important role in Guinean agriculture, the project would employ qualified women in key positions such as high level extension officers at headquarters and extension workers at prefecture level, and give them adequate logistic support. 4.18 The project would fund a minor infrastructure program at headquarters and prefecture levels (office and classroom space) and the logistic support for field and headquartcrs' staff in terms of vehicles, motorcycles, audiovisual and other teaching equipment, and development of demonstration plots and operating costs, including incremental salaries and indemnities for local staff. 5. Cooperative Development 4.19 The Government intends to rely increasingly on the private sector for agricultural support services such as input supply, marketing, and credit and savings. Since the traditional private sector is slowly developing and participating in agricultural services, farmer groups and cooperatives are expected to play a major role. The project would fund selected investments and operating expenditures to facilitate the start-up operations of a National Cooperative Support Agency (SIlATC), including a cooperative management specialist. This agency woul.d support an essentially volunteer cooperative movement to become a service agency as opposed to a regulatory body so the interest would be in field support rather than administration. SNATC would provide assistance to formal cooperatives and informal farmer groups (para 3.09). The project support would be complemented by financing from other donors. 6. Monitoring and Evaluation 4.20 The project M&E system would be set up to provide MARA and SERS with information on the effectiveness of research and extension services. Data collection and monitoring of these services would not be a cumbersome operation; base line surveys would not be conducted. Data collection would be carried out through mechanisms built in the research and extension organizations, e g., log books, frequent visits by supervisors to farmers, R&D activities, without significantly increasing their work load. Initially, simple surveys would be conducted to quantitatively determine the level of  - 15 - technology used by farmers and farmers' needs (part of diagnostic surveys). This would provide qualitative information not only to evaluate impact but also to plan research on the basis of farmers' needs. The impact of the project would then be determined by subsequent surveys aimed at assessing the development and adoption rate of technologies. The project would finance incremental costs of the National Directorate for Agricultural Research (DNRA) and the Extension Unit in MARA to carry out this work (para 5.13). 7. Project Preparation Fund 4.21 In view of the shortage of PPF funding, funds have been included in the project to complete (Forestry/Environzment Project) and initiate (Rural Infrastructure and Export Crops Rehabilitation Projects) preparatory activities in these forthcoming projects. The Forestry/Environment Project will need complementary funding to complete a forestry inventory and other studies needed for start-up. The Rural Infrastructure Project aimed at assisting the Government in implementing its policies in the sub-sector, e.g., institutional strengthening and specific investment programs, has been identified and requires further preparation work to be funded under this project. The new Export Crops Rehabilitation Project is being identified and would include production support and marketing services to farmers. The Tree Crops Sector Review has been completed, and funding provided under this project would ensure preparatien. Ly the end of 1988. 8. Institutional Strengthening 4.22 The project would finance resident experts, short-term consultants, and logistic support to (a) strengzhen tile capacity of MARA and State Secretariat for Scientific Research (SERS) to plan, administer, monitor, and evaluate research and extension programs, and (b) advise and train local staff within specific technical areas. Details of the structure, functions and technical assistance proposed are given in paras 5.01 to 5.12. C. Prolect Costs and Financing Cost Est.mates 4.23 The cost of the propesed five-year project is estimated at FG 1.37 billion (US$30.9 million), including a foreign cost component of US$21.6 million, representing 702 of total costs. Project costs include activities financed under the PPF, amounting to US$0.87 million, which would be refinanced under the Credit. 4.24 Base costs are given in January 1988 prices. Physical contingencies of 15? have been allowed on building costs and 102 on all project costs except fcr personnel, technical assistance and short-term consultants. Price contingencies on foreign exchange costs based on the Bank's projections have been included at an average of 3Z for 1989 and 1990 and 42 from 1991 to 1993. Price contingencies on local costs, based o" the Bank's forecast of domestic inflation, are 7.8Z for 1989, 7.7Z for 1990, 4.6? for 1991, and 2.8Z for 1992 and 1993. Total price contingencies amount to 14.4Z of base costs. Project costs are summarized below and details are given in Annexes 7 and 8 and Working Paper No. 2.  - 16 - Proiect Cost Summary Local Foreign Total Local Foreign Total FE Base Component --------GF million------- -----US$ million ----- Z Costs Applied Research 884 2,718 3,602 2.0 6.1 8.1 75 3' Adaptive Research 548 706 1,254 1.2 1.6 2.8 57 11 Training 292 1,185 1,477 0.6 2.7 3.3 82 13 Field Extension Services 831 1,822 2,653 1.9 4.0 5.v 68 24 Cooperatives 18 272 290 0.6 0.6 92 02 Monitoring & Evaluation 14 61 75 - 0.2 0.2 100 00 Project Prep. Fund 97 348 445 0.2 0.8 1.0 80 04 Institutional Strengthening 322 1,213 1,535 0.8 2.7 3.5 80 14 Total Base Costs 3,006 E,325 11,331 6.7 18.7 25.4 74 100 Physical Contingencies 305 476 781 0.7 1.1 1.8 61 7 Price Contingencies 843 787 1,630 1.9 1.8 3.7 47 15 Total Project Costs a/ 4,154 9,588 13,742 9.3 21.6 30.9 70 122 (includ. Taxes) ==== ==== Taxes 0,416 - 0.416 0.9 - 0.9 Total Project Costs (Net of Taxes) 3,738 9,588 13,326 8.4 21.6 30.0 a/ Include US$0.87 million for two PPFs. Proiect Preparation Facility 4.25 Two advances under the PPF were awarded for US$320,000 in July 1986 and US$550,000 in December 1987. The first PPF financed the start up of PPV in six prefectures, and the second PPF financed limited operating costs for the main research centers as well as an initial training program for research staff. Financing Plan 4.26 The financing of project costs, including taxes, would be shared in the following amounts and proportions:  - 17- Financing Plan by Category of Goods and Services IDA FED FAC IFAD Government Total Taxes ------------------(US$ million)----------------- Civil Works 2.1 1.4 0.4 0.4 4.3 0.4 Vehicles 3.2 0.9 0.1 3.8 Equipment 1.4 1.1 0.5 3.0 Technical Assistance 2.8 0.8 1.6 5.2 Consultants 1.1 0.1 1.2 Personnel (incremental) 1.3 0.3 0.1 1.0 2.7 0.2 Training 1.3 0.6 1.9 Project Prep. Fund 1.0 1.0 Operating Costs 4.2 1.3 0.8 1.5 7.8 0.3 Net Financing Requirements 18.4 6.1 1.6 1.9 2.9 30.9 0.9 e==~= === .= === == === e== Share of Financing (Z) With Taxes 59.5 19.7 5.2 6.2 i.4 1002 Without Taxes 61.3 20.3 5.3 6.4 6.7 1002 4.27 The proposed IDA credit of US$18.4 million would finance about 612 of project costs (net of taxes) including US$4.6 million of local costs. The GoveLrnment would mainly finance incremental local staff salaries, operating costs and taxes. The credit funds for the cooperatives component would be granted from the Government to SNATC. External financing by FED, FAC and IFAD, would be under parallel arrangements. The proposed FED grant, estimated at US$6.1 million (20' of project costs), would finance all costs of Koba and Bordo research centers, the cost of adaptive research within the areas of influence of these two centers, and ali training costs of their local staff. In addition, FED would finance two long-term technical specialists in maize for Bordo and in rice for Koba, as well as short-term consultants in specific technical areas (para 5.12). FAC would finance technical assistance, vehicles and operating costs for a total grant estimated at US$1.6 million 05Z of project costs). IFAD would finance all invesfment and operating costs of Bareng research station and will help finance Research and Development costs up to US$0.57 million. Financial Management Svstems 4.28 The project would maintain accounting records for project activities, consistent with sound accounting practices which would reflect fairly, in accordance with international accounting principles, the overall financial situation of the pro:ect. It would also keep separate detailed ccsts records for the research, extension, and cooperatives components. A microcomputer would be used to record and consolidate projec_ expenditures as well as prepare and monitor the project annual budget. Budgets and work plans would be prepared for review by the Research/Extension Committee (paras 5.04 and 5.06). Approved annual budgets for research ,id extension would be submitted to IDA for review and comments two months prior to the beginning of  - 18 - the year. Measures to improve financial _-ment and accountability within the project would ir.clude strengthening the accounting sections of DNRA, MARA, and the research centers by recruiting qualified local staff and either a financial manager or the services of a qualified accounting firm already in place. The internationally recruited fina"cial manager or the accounting firm, would (a) establish, no later than Jhi,c 30, 1989, a closing balance sheet as of December 31, 1988, for each research center and the PPV; and (b) design and set up a financial management system for project activities. Afterwards, the financial manager or the accounting firm would be responsible for consolidating the accounts and preparing disbursement applications and records. Assurances on these conditions were obtained during negotiations (para 7.01(a)). Auditing and Reporting Requirements 4.29 Project financial statements and Statements of Expenditures (SOEs) would be audited annually in accordance with internationally accepted auditing standards by independent auditors acceptable to IDA. Audited accounts would be submitted to IDA within six months of the end of each financial year. Progress reports on project implementation would be prepared by DNRA and MARA and submitted to IDA twice a year, within three months after the half-year review, until project completion. Progress reports would include: (a) project achievements compared with the agreed annual program; (b) actual cost for carrying out the program compared with cost projected during appraisal; and (c) comments on key problems and future priorities and needs. The Planning Bureau, BSD, would submit an annual evaluation report on the research and extension programs and a Project Completion Report within six months after project completion. Assurances on the above were obtained at negotiations (para 7.01(a)). 4.30 The proposed programming and budgeting procedure (para 4.28) Is aimed at providing the heads of research and extension, and directors of research stations, with a certain autonomy in carrying out their tasks within defined and approved national programs. This exercise would be worthless if a priori control from MARA and SERS were enforced as it is with most ongoing projects. Consequently, assurances were obtained at negotiations that (a) the Director of DNRA and the Director of the Extension Unit would be authorized to directly engage on expenditures up to the limit for which Government procurement code would be applicable; (b) they would be authorized to effect payments out of IDA's Special Account for up to GF 50 million; (c) the Directors of DNRA, the Extension Unit and SNATC would aiso be authorized to effect direct payments out of the local currency Project Accounts (para 4.34) up to the limit of the initial deposit on each respective account; and (d) the Directors of the Research Centers would be allowed to open, maintain and replenish accounts in FG on a commercial bank, to ensure funds are available to cover the operating costs of the centers (para 7.01(b)). The submission of a satisfactory action plan for compliance with the Government's debt reporting obligations to the World Bank would be a condition of effectiveness of the Credit (para 7.02(a)). Procurement 4.31 The relatively small civil works program (about 20 offices, repairs and laboratories at 18 different locations) which would be scattered geographically is not suitable for International Competitive Bidding (ICB)  - 19 - and would be procured by Local Competitive Bidding in accordance with procedures satisfactory to the Association. Contracts for goods and civil works below US$30,000 may be procured through Local Shopping; the aggregate value would not exceed US$1.5 million. Contracts for goods exceeding US$100,000 would be procured through international competitive bidding (ICB) and those below US$100,000 but above US$30,0'J would be procured under local competitive bidding (LCB); the aggregate value would not exceed US$1.0 million. Procurement for less than US$30,000 would be on the basis of quotations from at least three reputable suppliers. To the extent possible, procurement of goods would be grouped to allow for ICB. All procurement decisions in excess of US$100,000 would be submitted to IDA for prior review. Technical assistance and consultants financed by IDA would be selected in accordance with the Bank Guidelines. Procurement arrangements are summarized below; all figures include contingencies. Procurement Arrangements Procurement Method* Other ocurement Element ICB LCB Other source a/ Total - -------------------(US$ million)------------------- vil Works 2.0 0.1 2.2 4.3 (2.0) (0.1) (2.1) icles 2.6 0.4 0.2 0.6 3.8 (2.6) (0.4) (0.2) (3.2) ipment 1.1 0.3 1.6 3.0 (1.1) (0.3) (1.4) :hnical Assistance nd Short-Term Consult. 3.9 2.5 6.4 (3.9) b/ (3.9) rsonnel 2.2 c/ 0.5 c/ 2.7 (1.3) (1-3) aining 1.3 d/ 0.6 d/ 1.9 (1.3) (1-3) ject Prep. Fund 1.0 1.0 (1.0) e/ (1.0) erating Costs 5.0 f/ 2.8 7.8 (4.2) (4.2) tal Costs 3.7 2.7 13.7 10.8 30.9 (3.7) (2.7) (12.0) (18.4) Amounts in parentheses indicate IDA financing. Parallel financing by other donors would be under their own procurement procedures. Technical Assistance and Consultants will be procured following IDA Guidelines for use of consultants. Local salary premium. Local and international travel costs. Procurement elements to be detined (para 4.21). Operating costs for vehicles, travel and office expenses, following acceptable government procurement procedures.  - 20 - D1siursements 4.32 The proposed IDA credit would be disbursed over a period of six and a half years, which corresponds to the standard disbursement profile for Guinea (Annex 9). IDA's contribution to operating costs and personnel would be on a declining percentage, allowing the Government to build up to its post project funding responsibilities. The credit allocated to the cooperatives component would be disbursed against proof that SNATC has been created with a structure and organization satisfactory to IDA (para 5.09). Disbursements would be made against SOEs for all operating costs and all contracts equivalent to less than US$50,000. Documentation of SOEs would be held for annual review by IDA supervision missions. The disbursement categories would be as follows: Allocation and Disbursement of IDA Credit Percentage of expenditures, Category Amounts to be financed (in US$ million) 1. Civil Works 1.9 100Z 2. Vehicles Equipment 4.0 100? 3. Technical Assistance 3.5 100Z 4. Fellowship Seminars 1.0 100? 5. Operating Costs 4.8 90Z in PY1 85Z in PY2 752 in PY3 50Z in PY4 40? in PY5 6. Goods/Serv. for Project Preparation 0.9 100Z 7. Refinancing PPF 0.9 8. Unallocated 1.4 Total 18.4 Revolving Fund 4.33 In order to expedite project execution, a Special Account (SA) would be opened in a commercial bank acceptable to IDA with an authorized  - 21 - allocation of US$500,000 (four-month average of all eligible expenditures). The account would be established immediately after credit effectiveness through the withdrawal of this amount from the IDA credit. IDA would replenish the account on receipt of evidence of disbursements from the SA for eligible expenditures. Monthly bank statements of the SA would accompany replenishment requests. 4.34 To ensure efficient and timely implementation of the project, the Government would open three local currency Project Accounts (PAs) for the project at a commercial bank in Conakry. Requirements in local currency would be established twice a year and would form the basis upon which the local currency account would be maintained. Assurances were obtained at negotiations that the Government's portion of incremental funding would be deposited in the local currency PAs; the accounts would be replenished quarterly and in advance on the basis of cash requirement forecasts, so as to meet local expenditures for the next three months (para 7.01(c)). Opening of the PAs and initial deposit by the Government of GF 55 million (GF 25 million for Research, and GF 30 million for Extension), equivalent to ha'lf of its first year contribution in local funds, would be a condition of credit effectiveness (para 7.02). V. ORGANIZATION AND MANAGEMENT 5.01 Research, extension, and cooperatives would each maintain a separate organization under the supervision of three different ministries; budgets and accounts would be prepared and maintained separately. Management would also be separate. Nevertheless, strict coordination would be needed to ensure adequate impact and this would be attained through an ad hoc committee (para 5.04) and various measures (5.08). Research 5.02 Research services would be the responsibility of the National Directorate for Agricultural Research (DNRA), directly under the State Secretary, State Secretariat for Scientific Research (SERS). The current structure of DNRA was established in June 1987 on the basis of recommendationr, made by a consultant firm hired to advise the Government on the reorganization and restructuring of MARA (Annex 10). DNRA would enjoy autonomy in decision making. Assurances were obtained at negotiations that while within the SERS, the Director, DNRA, would be directly under the State Secretary, SERS, and that DNRA would maintain at least the status of a national directorate and the required autonomy of action, and that the research centers would remain under the tutelage of the Director, DNRA (para 7.01(d)). The suitability of this structure would be evaluated two years after credit effectiveness (para 7.01(e)). Until then, structural changes would be made only after consultation with IDA. 5.03 At the central level, DNRA would be responsible for policy determination, direction, coordination, overall budgeting and control of all research activities carried out as part of the project as well as in other projects involved in research. At the local level, the Directors of the research centers would be responsible for resource allocation and control. The centers' technical staff, organized in multi-disciplinary teams by  - 22 - different commodities and programs, would prepare working programs and budgets to be submitted annually to DNRA headquarters where they would be consolidated. For each commodity group, there would be a national research leader located at the main center for research into that commodity. This arrangement would ensure a coherent approach to the particular program and minimize duplication of effort. A well designed action plan has been prepared following this arrangement (Annex 11). 5.04 The research program would respond to government priorities. It would truly reflect farmers' needs identified through diagnostic surveys and the close interaction between staff and farmers when conducting adaptive research. The program and budgets would be reviewed annually (in October) by a National Research/Extension Committee, prior to submission to IDA for comments. The Committee, in consultation with IDA, would advise DNRA and the centers' Directors on formulation of research objectives, priorities and programs. The Committee would have an important representation of national development and extension specialists and farmers, to ensure emphasis on adaptive research programs directed toward achieving early and easily adoptable results; it would be established with membership satisfactory to IDA before March 31, 1989. Assurances on the above were obtained at negotiations (para 7.01(f)). Extension 5.05 The Directorate for Training and Rural Promotion (DGFPR) has overall responsibility for country-wide extension work through its Extension Division (DMVA) (organization chart is presented in Annex 12). However, because the administrative reform of MARA is not yet completed, direct implementation of the Extension component of the project would continue to be the responsibility of the Director of the Extension Unit (ex-Pilot Extension Project (PPV)) who would report directly to the Secretary General, MARA. This Director has the decision making and management powers of a Directorate, which it would become on completion of MARA's administrative reform. 5.06 At the central level, the Director of the Extension Unit assisted by specialized staff and advised by a National Research/Extension Committee (para 5.04) would be responsible for the planning, budgeting, organization and coordination of all extension activities. As for research (para 5.04), the National Research/Extension Committee would meet annually to review programs and budgets prior to submission to IDA for comments. Assurances on the above were obtained at negotiations (para 7.01(f)). 5.07 At the local level, the extension services would be organized utilizing the PPV experience and adapted to the basic T&V principles modified according to the different socio-economic conditions. In each region, the basic field management unit would be at the prefecture level, with a Sector Head in charge of the Technical Supervisors, each of whom would be responsible for 8-10 Extension Workers. Subject Matter Specialists, in each technical topic, would, in addition to training the Extension Workers and the Technical Supervisors, be closely linked with the research program. Initially, during implementation of the PPV, each Extension'Worker was assigned one district, subdivided and visited on a fixed day every two weeks. During execution of the project, Extension Workers would be assigned based on  - 23 - number of rural families at a ratio of Extension Worker/farmer of 1:200-300 which would be modified during project implementation to account for population densities, settlement patterns, type of farming system, and communication facilities. Research/Extension/Farmers Linkage 5.08 The essential linkage between research and extension which would provide sound research results and a proper delivery and feedback system would be ensured through the National Research/Extension Committee and the joint work of research and extension staff and farmers in carrying out field trials (adaptive research). This would be reinforced by a contractual arrangement between MARA and SERS through which (a) the control of adaptive research activities would be under the responsibility of the Director of the Extension Unit; (b) research and extension staff would jointly design the research program; (c) staff of research stations would be responsible for developing the off-station trials, while extension staff would be responsible for overseeing the on-farm trials conducted by farmers; and (d) funding to carry out this research would be controlled by the Director of the Extension Unit, who would, based on an agreed work program, contract the services of DNRA to help with the execution and evaluation of results. Assurances were obtained at negotiations that the contractual arrangement would be signed before June 30, 1989 (para 7.01(g)). Cooperatives 5.09 Cooperative development would be under the overall supervision of SNATC's Board of directors. The Board would be composed of the Secretary of State for Decentralization, the Secretary General MAU and representatives of farmers and donor agencies. The Board would delegate most of its authority to SNATC management committee composed of the director and two section heads. Initially, SNATC would have three sectionc: (a) assistance to cooperatives and groups; (b) training and studies; and (c) evaluation and control. Assurances were obtained at negotiations that SNATC operate on the basis of the organization and structure described above (paras 4.19 and 7.01(h)); its creation before June 30, 1989, and the initial deposit by Government of GF 10 million in local funds, would be a condition for disbursement against the cooperative component (para 7.03). The Secretariat for Decentralization (SED) would have an overseeing role and would formally approve and register cooperatives under the exclusive recommendation of SNATC; it would also be responsible for monitoring and evaluating SNATC's performance. Programming, budgeting and procurement would be done by the local director SNATC supported by an internationally recruited cooperative management specialist. Further details on cooperative development and SNATC are presented in Working Paper No. 3. Institutional Strenatheninz 5.10 To assist in the initial stages of programming, organization, accounting and procurement, as well as in providing advice on specific technical areas and in training local staff to manage the services, the project would, during a five-year period, provide about 29 man-years (19 for research, 7 for extension, and 3 for cooperatives) of internationally recruited specialists and about 32 man-months of short-term consultants.  - 24 - Part of this assistance is already in post, financed by FAC who will continue financing this and additional assistance throughout the life of the project. FED would also finance technical assistance. Details are given in Annex 13. In all cases, the role of the internationally recruited -taff would be of an advisory and training nature. The services would continue to be managed by capable local staff, entirely responsible for implementation. In addition, assurances were obtained at negotiations that all technical local staff would undergo a technical test before being engaged for a particular program; the test would be carried out before June 30, 1989 (para 7.01(i)). 5.11 The central research ard extension structures would be supported by internationally recruited technical staff including: (a) a Research Manager to assist the Director DNRA to conceptualize, plan, review and control research programs; (b) an Agricultural Socio-Economist to assist in diagnostic surveys, socio-economic evaluation of production alternatives and on-farm research; (c) an Extension Specialist to help organize and manage the service; (d) a Training Specialist to organize the major training program for research and extension; and (e) a Financial Controller (or similar support provided by a firm locally established), to help with preparing and monitoring budgets for both research and extension programs. In addition, at each center for the priority crops, there is a need for about 10 man-years of 5 specialists spread over the 6 centers to assist the commodity research leaders. Terms of reference and requirements for consultants are shown in Working Paper No. 3. Assurances were obtained at negotiations that the international staff would be recruited before June 30, 1989 (para 7.01(j)). 5.12 Short-term consultants would be recruited during project implementation for some 30 man-months to advise on specific research and training topics such as demarcation of agro-ecological zones, specialized aspects of crop improvement, soil fertility, weed control and crop processing and training for trainers, extension methodology, diffusion technology, and audiovisual preparation (Annex 13). Monitoring and Evaluation 5.13 Two small M&E cells within DNRA and the Extension Unit, would be responsible for monitoring project progress. They would, from project inception, define the type, amount, purpose, and timing of data to be collected, provide the necessary staff training, and guarantee continuity in the collection of data series requiring extended time periods. Th-y would carry out evaluation surveys once a year to provide quantitative and qualitative information on the coverage and impact of research and extension services. Staff of both services advised by BSD would carry out the initial surveys (part of the Diagnostic Survey and substitution of the baseline survey) and help with subsequent data collection as necessary. The two cells would prepare by March 31, 1989, detailed plans for monitoring and evaluating project activities. Assurances on the above were obtained at negotiations (para 7.01(k)).  - 25 - VI. BENEFITS, JUSTIFICATION AND RISKS Benefits 6.01 The project is expected to improve significantly the organization and management or research and extension. Given the low level of technology currently available to Guinean farmers, properly directed and funded research could significantly increase yields. Moreover, the Training and Visit (T&V) system promoted by the project has been associated in many countries with significant yield increases, often because of its ability to teach farmers timely application of cultivation practices. It has also been the starting point for inst'tutional improvements. Thus, the main results anticipated from the support of the project to these two essential services would include: (a) MARA's and SERS's improved financial management and increased ability to plan, coordinate, and implement research and extension programs at the national level; (b) increased production and productivity of food, root and fruit crops, thereby contributing to the Government's food security objective and reducing food imports; (c) increased exports by improving the quality of fruit crops; and (d) increased incomes for most of Guinea's rural population. The emph&sis in research and extension toward application of readily available technology suitable to smallholders would benefit, in a relatively short period, over 200,000 rural families directly covered by the renewed extension service, and the majority of the rural families (over 600,000) through the delivery of research results via rural development projects. Additional benefits would be obtained from the em-hasis on women participation as extension workers and as recipients of custom-made messages, support provided for cooperative development, and training of local staff. 6.02 Economic Costs and Benefits. Attributing a precise level of benefits to this type of project is difficult as the nature and timing of scientific advances are unpredictable and it is not possible to accurately single out the proportion of benefits deriving from research and extension alone. In practice, it is the combination of a number of factors such as price policies, the availabilitv and cost of inputs, credit, and climatic conditions that brings the desired benefits, with extension playing tlMe role of catalyst. It is also difficult to calculate adoption rates for variius recommended practices. Moreover, because recommendations would vary according to crop, district, agro-ecological zone and the level of the farmer, it is difficult to estimate future yield and production increases. 6.03 Considerable ex-post evidence has accumul.ted of the usually satisfactory economic returns obtainable from investments in applied research. Accumulated evidence shows that research is a highly profitable form of public and private investment that confers benefits to both projects and consumers. Of 50 ex-post studies completed, most have shown rates of return that exceed 20Z and several that exceed 40Z. T.Le proposed project would rehabilitate and reinforce an existing network and benefit from considerable sunk costs. It is therefore not likely to be an exception to this general 'inding. Given the current very low level of crop yields in Guinea, compared with that in neighboring countries (para 6.04), even minor research progress is expected to effect important yield increases. On the extension side, significant increases in yield could be obtained with simple  - 26 - messages on timely application of cultivation practices. Since some of these (timely weeding and planting, proper spacing and plant population) are already available and are being proposed to farmers, it is possible to estimate the impact to be achieved through the extension component with a certain degree of accuracy, as follows. 6.04 Economic Rate of Return (ERR). An attempt has been made to estimate an ERR for the extension component. The project would concentrate on the main smallholder crops of each region for which technological packages are available (Annex 1): rice, maize, groundnuts and cassava, and eventually cash crops such as in the forest region. The average yield levels per hectare of small farms are substantially low for Guinea compared with those of neighboring countries and/or potential achievements: upland rice 750 kg, swamp rice 1,200 kg, maize 1,200 kg, groundnuts 600 kg and cassava 5,000 kg for Guinea, against 1,600-2,000 kg for upland rice, 3,000 kg for swamp rice, 1,400-2,200 kg for maize and over 10,000 kg for cassava in other West African countries. It is estimated that good farmers, applying proper cultivation techniques, could double these average yields for most crops, often by applying only low input husbandry measures. These yield potentials, however, would probably not be obtained until the extension system has become fully effective. The economic analysis is based on modest assumptions (Annex 14) including an adoption rate by which only 252 of the farming area covered by the project would be under new technology at full development (PY12 including the PPV). Under those assumptions, to achieve a 20Z ERR, yields would have to increase by about 152 which is modest by any standard and particularly feasible under the low technological levels prevalent in Guinea, even without new influx of locally developed research results. Production data, economic analysis and assumptions underlying the ERR calculation of the "with project" situation are presented in Annexes 14 and 15, and Working Paper No. 2. Budgetary Implications 6.05 Total incremental costs of the project extension component over the development period would be GF 4.8 billion (US$10.8 million) which is about US$5.9/ha of cultivated land during that period. Assuming a very modest adoption rate (about 100,000 ha under improved technology, or 62 of cultivated land), the incremental cost after the development period would be below US$3.0ha, which compares favorably with COte d'Ivoire (US$5.0/ha) and Togo (US$8.0/ha). In addition, much of the project overheads (research, financial management) are geared to setting up a national level research and extension service, which would spread fixed overheads over a considerably larger area, thereby reducing unit costs. The research and extension incremental recurrent budgets after the project development period would amount to about GF 250 million (US$0.55 million) or about 1 of the agricultural GNP, which is modest by arny standard; it could be managed by the Government's recurrent budget which, in 1986, was about GF 4.5 billion for MARA. Recurrent extension -- .4 tring this post development period would not be high since a much lighter extension coverage would be required to maintain a minimum level of technology flow within an already primed system. These costs are estimated at about GF 100 million (US$0.2 million) per annum at full development. Recu.rrent research costs, about GF 150 million (US$0.33) per annum would not diminish substantially because of the long-term nature of research; however, only very modest production gains would be  - 27 - neaded to recover this increase in average annual expenditure arising from the project. Incremental costs would not be recovered directly, except for taxes and levies collected indirectly from additional consumption expenditures by project beneficiaries. Employment and Poverty Impact 6.06 The project would have only a comparatively small direct employment generation. However, by focusing research and extension services on smallholders whose present yields ate low, the project would lead to increases of farm productivity and farm output of a majority of 600,000 farm families in Guinea. This would generate substantial additional employment and income for farmers. By reaching the high agricultural potential areas and the less endowed regions of Guinea through an effective extension service, the project's indirect employment and income effect would accrue not only to the poor but also to the poorest of the poor. Environmental Impact 6.07 The project would help provide for the needs of Guinea's growing population while maintaining or improving the resource base. The project would place priority on adaptive research of pest and disease resistant varieties, and cultivation methods that would decrease dependence on chemicals and tillage operations which pose erosion/environmental problems. The project would also emphasize soil conservation and fertility research to avoid further environmental degradation and to restore soil productivity. It is expected that modernization of Guinean Agriculture would involve the use of chemical inputs, but technical messages generated by research would promote greater efficiency of chemical input use and relative reductions in rates/ha. Farmers would receive adequate training in the storage, application, and disposal of pesticides. Proiect Risks 6.08 In the current Guineau context, the project faces risks of ineffective management and coordination of research and extension programs, failure to adhere to agreed priorities and balance in research programs, low adoption of research findings due to lack of confidence on the part of farmers, and inappropriate research conducted in isolation. The first risk wo A.d be minimized bv strengthening the structure of the services through the establishment of an ad hoc committee for research and extension, provision of technical assistance, and the establishment of contractual arrangements between the services to jointly carry out adaptive research. This would ensure that adaptive research is directed toward providing early results, and that planning and coordination are effective. The second risk would be reduced by establishing research priorities through an annual review of programs and budgets involving all donors and farmers. The third risk is addressed by the Pilot Extension Program which has reestablished farmers' confidence in government extension. Emphasis on on-farm research and on the linkage among research and extension staff and farmers will make research and extension responsive to farmers' needs.  - 28 - VII. ASSURANCES, CONDITIONS AND RECOMMENDATION 7.01 Assurances Obtained at Negotiations (a) The project would submit annual budgets and work plans; maintain records and accounts; have accounts audited and submit audited accounts; strengthen accounting sections by recruiting a financial manager or firm; establish, no later than June 30, 1989, a balance sheet as of December 31, 1988; and submit progress reports and prepare a Project Completion Report (paras 4.28 and 4.29). (b) The Directors of DNRA and the Extension Unit would be authorized to directly engage on expenditures up to the limit for which Government procurement code would be applicable and to effect payments out if IDA's Special Account up to FG 50 million; these Directors and the Director of SNATC would be authorized to make direct payments out of the local currency Project Accounts up to the limit of the initial deposit. The Directors of the research centers would be allowed to open, maintain and replenish accounts in FG on a commercial bank to cover their operating costs (para 4.30). (c) The Government's portion of incremental funding would be deposited quarterly and in advance in the local currency Project Accounts (para 4.34). (d) The DNRA would at least maintain the status of a national directorate and while within the SERS its Director would be directly under the Secretaire d'Etat; the research centers would be under the tutelage of the Director, DNRA (para 5.02). (e) A mid-term review would be carried out to evaluate the performance of the project and the adequacy of the structures involved iri project implementation (para 5.02). (f) Government would ensure, through the National Research/Extension Committee to be established with membership satisfactory to IDA before March 31, 1989, that research and extension programs, strategies and budgets are reviewed annually prior to submission to IDA for comments (paras 5.04 and 5.06). (g) An agreement between the Ministry of Agriculture and Animal Resources and the State Secretariat for Scientific Research would be signed before June 30, 1989, through which MARA would engage the services of DNRA to carry out adaptive research (para 5.08). (h) SNATC would operate on the basis of an organization and structure satisfactory to IDA (para 5.09). (i) To maintain the quality of staff at DNRA headquarters, research centers, and extension a test would be given before engaging staff into the training program; the teat would be carried out before June 30, 1989 (para 5.10).  - 29 - (j) The international staff not yet in post would be recruited not later than June 30, 1989 (para 5.11). (k) The two M&E cells would prepare by March 31, 1989, detailed plans to monitor and evaluate project activities (para 5.13). 7.02 Condition of Credit Effectiveness (a) Submission of a satisfactory action plan for compliance with the Government's debt reporting obligations to the World Bank (para 4.30). (b) Opening of two local currency project accounts and the initial deposit by the Government of GF 55 million, equivalent to half of its first year's contribution in local funds would be a condition of effectiveness (para 4.34). 7.03 Condition of Disbursement. The creation of SNATC before June 30, 1989, and the initial deposit by Government of GF 10 million in local funds, would be a condition of disbursement against the cooperative component (para 5.09!. 7.04 Recommendation. With the above agreements, the project would be suitable for a credit of SDR 14.2 million (US$18.4 million) to the Government of Guinea on standard IDA terms with 40 years maturity.  REPUBLIC OF GUIINEA NATIONAL RESEARCH AND EXTENSION PROJECT Technical Recommendations Readily Available for Main Crops Rice U a/ BF n F haize a/ Cassava 6oundnuts a/ CSI bl CS2 b/ CS3 b/ Recooeendations ---- --- ----- ------ Seed Collection Selection x x Germination Test x x x K K K Planting (Tine, Population, System) x I x I x x s Nursery Planning, Execution I x I Line Planting (Spacing) I I K x K K x s Needing (Timinn Frequency) x I x x x x x x Transplanting ltime, Spacing) s x x Ridging (Type, Frequency) x x Conservation (Post Harvest) Crab Cantrol x Selection Planting Material x Preparation Stock x Positioning Stock x a/ Recomeendations on planting time, density, transplanling (at least), would change according to the different ecological regions of G6inea. bl Basically aised at improving the Tapade systen of the Fouta Djallon region. U Upland CSI a Cropping system Naize/Turo SF = Bas-Fonds C92 = Cropping system Maize/Potato N a Hangrove CS3 : Cropping system CompealHaizeiTaro F = Flooded X  -32 - ANTNEX 2 REPUBLIC OF GUINEA NATIONAL RESEARCH AND EXTENSION PROJECT National and Project Area Planted with Main Food Crops and Current/Estimated Yields Area c/ Benefitina from New Area cl Technology National a/ Projected bl Covered by at Full Current Estimated Area Planted Area Planted Extension Develooment IY9) Yields Increase ('000 ha) t1000 ha) (1000 ha) ('000 ha) kg/ha (ISI) Rice 750 920 161 40 900 .1035 Maize 140 180 75 19 900 1035 Groundnuts 120 140 45 11 600 690 Cassava 100 100 38 10 5000 5750 Total 1110 1340 319 g0 7400 8510 Total under cultivation 1600 a/ From SCET Aori Study of Agricultural Sector, 1987. Tree Crops not incladed in ERR calculation. b/ From estiuafions made for Seeds Project (for 1997), except cassava. cl From Annex 4-4.  REPULIC OF 6UINEA NATIONAL RESEARCH AND EITENSION PROMECT Location, Programs and size of Research Centres Station Principal Progras Station Principal Progras Station Principal Proqrae 1. treng Cereals 2. 8erdo Pootcrops 4. Kilissi Rice (rainfed and irrigatedl (30 ha) - - Maize Fonio, Iillet IContd) - CAsSAva, Sweet Potato, Tan (70 ha) . varietal selection . vaietal introduction Ifonla local .assessmnt of pests and diseases . cultural techniques varieties), selection varietal slection - Iheat c cultural tehniques Soybea . varietal testing at different altitudes . date of sowinq - Cotten varietal selection . cultural techniques . varietal i4urovesent cultural techniques cultural teKbiCues Legums . crop associations Swnt Potato - Conpea 3. Foulaya - Fruits . assessaent of pests and discases . varietal introduction, selection , - varietal selection . cultural techniques 11015 ha) - bananas cultural tecbniqres varietal Introduction, selection Rootcrops . plant protection 3. loea Rice (ungrove, rainfed, irrigated) "agqes - Cassava varietal introduction, selection (25 ha) varietal seletion . assessment of pests and diseases . plant protection . cultural techniques varietal selection . production, storage, processing techniques c cultural techniques pi1neapples Magrove SoilS - Potato . varetal iotroduction, selection t . varietal setltion . plant protection . Sail and Vater Mnageaent Vegetable Crops Legums 6. Seredon Rice (rainfed And valley bottom) . varietal seletion - copeaN grondnets, cajanas cajan 125 hal ) varittal selection . cultural techniques .varietal seW tion . cultural techniqu w .cultural techniques Soil Conservation Cassava . restoration of soil fertility t crops . assesmnt of pests And diseases . anti-erosion measures - CasSNava varietal selc ion varietal selection . cultural tcbniques 2. de . cultudra techniques 155 ha) Rice trninfed, Irrigated, floating) Livstock a/ --- . trials of plantinig uateria't varietal selection i inveotory of natural pastures . cultural techniques cultural tecniqls . introduction of forages species selection of improVeD typeS Plantaia Cereals C-- 5 . varietal selactim - Mlze Foio, Nillet, Sorghum . cultural tecknique . varletal 3eleCUOn . cultural techniques Coffe, Cocoa ad Kola D Legum introduction ad trials of plastial material varietal selKtion w - Coupea, 6roudnuts, Soybean . cultural techniqves . varital selection . cultural techniqus a/ Not financed under the project.  - 34 - ANNEX 4 REPUBLIC OF GUINEA NATIONAL RESEARCH AND EXTENSION PROJECT Location of Off-Station/On-Far. Trials Year Year Progras -2-P Progra -roram1 2 3 4 5 1 2 3 4 5 - Bareng Center - - Koba Center - .Foniolflaize . Rice PE Bareng Center x x x x x PE Kaba Center I K I I I PE 6aouai x s PE Sonfonia I I x I .Rice PE Botre I I I I PE 6aoual x I I I PE Kaback (Forecariah) I I I I Cassava/Sweet Potato PE Nasou x I I s - Seredou Center Coppea/6roundnut PE Bareng Center I x x I I Rice PE Gaoual PE Seredou Center I s * s I s s PE Kaealo (Guectedou) I I I s PE Yoeou I K I - Bordo Center PE Kissidougou I I I I s Oil Palo . Rice PE Seredou Center I I I I PE Bordo Center s x I I I PE Lola I I s I s PE Tokounou x x s x PE Yagoyah s x I I PE Suguiri x x a s x Coffee I Fonia/Raize PE Gueckedau I I I s K PE Bardo Centerc x x I x PE Kissidougou I I I I x PE fandiana x x K I I PE acenta I s I I s . 6roundnut/Cowpea PE N'Zerekore I x I I PE Bordo Center I x s s x . Plantain PE Dabola x s s s PE N'lerekore I x I K s . Cassava/Yan PE Seredou I I x s PE Baranama x I I x .Root Crops . Cotton PE Kmalo s s x PE landiana I x I I I PE Seredou Center I I * I - Foulaya Center Fruits PE Forecariah x s s s PE Pita (Bareng) x s s Groundnut PE Kilissi Center s x s x a PE Boffa x x x x . Cassava PE Foulaya Center I x x s x PE Forecariah x x t s PE Yilissi s x x x x . Veietable Crops PEBareng Center I I I I PE Kilissi Center x x x x PE Coyah * * s Note: PE refers to Points d'Essai at which trials be set up under controlled conditions. 6enrally PEs mould be located off-station although in certain cases they wuld be on-station. Each PE vould be surraunded by 4 units of on-fare trials. At each unit there uould he up to seven trials of simple design.  -35 -ANNEX 5 REPUBLIC OF EUINEA NATIONAL RESEARCH AND EXTENSION PROJECT Population. Ratios Extensionists (FEW) to Rural Fasilies. Estimated Area Covered Number Number Number Number Esfieiteid Recions and Rural Person Rural Number District Farms Surface Prifectures Population- per family Families FEW a/ Covered- Covered b/ Covered c/ 6UINEE NARITINE DOKE 168900 7 24128 48 72 14400 23040 RM