Niger - National Agricultural Research Project

Document of The World Bank FOR OFFICIAL USE ONLY Cz/aZ - /v" Report No. P-5163-NIR MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 15.0 MILLION TO THE REPUBLIC OF NIGER FOR A NATIONAL AGRICULTURAL RESEARCH PROJECT FEBRUARY 23, 1990 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency unit - CFA Franc (CFAF) US$1.0 - CFAF 320 (as of July 1989) 1 SDR - US$ 1.33 WEIGHTS AND MEASURES Metric System ABBREVIATIONS INRAN - .nstitut National de Recherche Agronomique du Niger ISNAR - International Service for National Agricultural Research GOVERNMENT FISCAL YEAR January 1 - December 31  FOR OFFICLAIA USE ONLY - ii - NIGER NATIONAL AGRICULTURAL RESEARC,H PROJECT CREDIT AND PROJECT SUMMARY Borrower: Government of the Republic of Niger Beneficiary: National Agricultural Research Institute (INRAN) Amount: SDR 15.0 million (US$ 19.9 million equivalent) Terms: Standard IDA, with 40 years maturity Onlending Terms: Not applicable Financing Plan: US$ million Government 3.5 IDA Credit 19.9 Bilateral Donors 4.6 TOTAL 28.0 Economic Rate of Return: Not applicable Staff Appraisal Report: No. 8007-NIR Map: IBRD No. 21774 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF NIGER FOR A NATIONAL AGRICULTURAL RESEARCH PROJECT 1. The following report and recommendation on a proposed development credit to the Republic of Niger for SDR 15.0 million (US$19.9 million equivalent) is submitted for approval. The proposed credit would be on standard IDA terms with 40 years maturity and would help finance the first five-year phase of a long-term support program to strengthen national agricultural research, to make agricultural research more responsive to producers' needs, and to assist with the restoration and conservation of soil fertility. Parallel financing in the amount of US$ 4.6 million equivalent would be provided by bilateral donors. 2. Backg-ound. The rural sector is the principal source of livelihood for about 80Z of the population and accounts for about 45Z of Niger's GNP. Although the country has been traditionally self-sufficient in food production (except during severe droughts), increased production to keep up with population growth has taken place by shortening fallow periods and cultivating more marginal lands, as well as by overexploiting the plant cover for livestock and fuelwood production. This leads to a decline of soil fertility and soil degradation. Past attempts to introduce improved technical packages for rainfed agriculture (chemical fertilizers, single cropping, aiiimal traction) have not been successful, partly because they do not seem to respond adequately to farmers' constraints and priorities. 3. Agricultural Research. The performance of agricultural research in Niger has been disappointing up to now. The need to evaluate the current system and to redefine research priorities was recognized during the preparation of structural adjustment lending in Niger in 1985-1986. With external assis.ance from ISNAR, the Government undertook a thorough study in two phases of the current agricultural research system in order to propose a long-term plan. Phase 1 was prepared by an ISNAR team in February, 1987. Phase 2 was prepared by six national working groups assisted by ISNAR. With assistance from FAO/CP, this study has led to an operational first five-year tranche of a long-term research plan. 4. Project Objectives. The proposed project would represent the first five-year phase of the long-term development plan for agricultural research. Its basic objectives are to strengthen the national capacity for agricultural research planning and implementation by: (i) improving priority-setting and resource allocation methodology, taking into account farmers' needs and resource conservation; (ii) improving coordination in the formulation and execution of national and international agricultural research programs; (iii) improving research programming, budgeting and financial management, as well as monitoring and evaluation of research programs; (iv) improving staff planning, training, recruitment and career development in research; (iv) strengthening linkages between research, extension services and farmers with on-farm adaptive research and participatory research programs. In addition it would improve environmental protection and soil fertility through closer  integration of research on crops, livestock and agro-forestry and will develop optimum farming systems for each agro-ecological zone. 5. Bank Role and Rationale for IDA Involvement. IDA is helping the Government to reorient its agricultural policy as part of its overall structural adjustment program. The past failures of zainfed projects highlight the importance of having effective agricultural research systems which are responsive to farmers' needs and take into account their constraints within their own farming systems. The proposed project is part of IDA's effort to improve agricultural research services and complements an agricultural extension services pilot program which is being implemented in the framework of the Small Rural Operations Project (Credit 1890 NIG). 6. Project Description. In the first tranche of the long-term research plan, the proposed project would seek to achieve the above objectives by financing: (i) improvements to INRAN's basic network of research centers; (ii) short-term and long-term technical assistance and staff training needed to strengthen the local technical and administrative capacity to plan, implement, monit.or and evaluate the national research program; (iii) equipment, vehicles and supplies, and operating and maintenance costs associated with the implementation of the priority recearch programs; (iv) equipment and operating costs needed by research staff for the periodic training of extension staff and for the off-station adaptive research program. These components would be accompanied by the following reforms: (i) change in the statute of INRAN defining its relationship with the Goverreent and making adequate provisions for personnel recruitment, training and career development; (ii) reorganization of INRAN, redefining technical and financial responsibilities for multidisciplinary programs, research stations and research departments as well as reorganization of the Management Council, Technical Committee and Financial Committee (including representatives from relevant ministries, extension services, and the farmer community). 7. The total cost of the five-year project is estimated at US$28.0 million equivalent, of which US$17.08 (61Z) is in foreign exchange. A breakdown of costs and the tentative financing plan are shown in Schedule A. The amounts and methods of procurement and disbursement, as well as the disbursement schedule, are given in Schedule B. A timetable of key project processing events and the status of Bank Group operations in Niger are given in Schedules C and D, respectively. A map showing project coverage and location of research centers and research stations is also attached. The Staff Appraisal Report No. 8007-NIR dated February 23, 1990 is also attached. Two Project Preparation Facilities (PPF) were made available: one to undertake the preparation of the long-term plan and the other to assist INRAN to prepare for project implementation. 8. Actions agreed upon. Assurances were obtained from Government on the following: (a) Government budget allocation for INRAN to finance the salaries of new INRAN staff, all incremental overhead operating costs, and on an increasing basis, the operating costs of new research programs; (b) revision of INRAN statutes and reorganization of INRAN; (c) INRAN would prepare new procedures for research programming, a Manpower Development Plan, and a livestock production research program; (d) Government would create a Donor Consultative Group 'or agricultural research programming and financing,  - 3 - with operational regulations acceptable to IDA, in which all donors funding agricultural research in Niger would be invited to participate; and (e) a mid-term review would be carried out. Conditions of effectiveness would be: (a) approval and adoption of the revised statutes of INRAN; (b) establishment of the National Committee on Research Programs and of the Regional Research/Development Councils; (c) Financing Agreement duly executed on behalf of the Government and INRAN. Conditions of disbursement each year would be the approval by IDA of a detailed work plan, budget and financing plan for the next fiscal year. 9. Benefits. The productivity of the agricultural subsector is below its potential. Although difficult to quantify, the deteriorating environmental conditions in Niger constitute a serious economic loss. The development of adequate and sustainable technologies by an efficient agricultural research system linked with extension would help to increase and stabilize agricultural production, enhance household incomes, avoid a further decline in soil fertility, and combat rural poverty. 10. Risks. The greatest risk faced by the project is the potential difficulty in developing feasible economic solutions to the degradation of the environment and suitable technical recommendations for increased crop and livestock productivity in the context of the particularly difficult agricultural situation in Niger. However, the non-project risk in the decline of fertility, soil degradation and over-exploitation is considerable and research is essential to combat this. Potential risks also reside in the: (a) relevance of priority research programs taking into accoun. fa rmers needs and resource conservation; (b) adequacy of the linkages between research and extension; (c) adequate funding for the development of a long- term national research program; and (d) possible lack of qualified staff by non-adherence to recruitment and human resource development criteria. To reduce these risks, the project would include specific measures backed up by conditionality, in particular with respect to: government financial participation, donor coordination, training and short-term and long-term technical assistance, establishment of technical and financial committees with the participation of representatives of extension services and farming community. 11. Recommendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed credit. Barber B. Conable President Attachments Washington, D.C. February 23, 1990  -4- Schedule A NIGER NATIONAL AGRICULTURAL RESEARCH PROJECT ESTIMATED COSTS AND FINANCING PLAN Estimated Costs a/ Local Foreign Total --------US$ million------ Civil Works 1.78 2.46 4.24 Equipment 0.82 2.34 3.16 Vehicles 0;28 1.57 1.85 Salaries 2.36 - 2.36 Operating Cost: Research 2.33 1.24 3.57 Operating Cost: Overhead 0.52 0.10 0.62 Technical Assistance 0.26 2.34 2.60 Training - 2.48 2.48 Base Cost 8.35 12.53 20.88 Reserve Research Fund 1.84 0.46 2.30 Physical Contingencies 0.47 1.68 2.15 Price Contingencies 1.21 1.48 2.69 Total Project Cost 11.87 16.15 28.02 a/ exclusive of taxes and duties Financing Plan CFAF billion US $ million Government 1,100 3.5 Bilateral Donors 1,472 4.6 IDA 6,368 19.9 TOTAL 8,940 28.0  - 5 Schedule B Page 1 of 2 NIGER NATIONAL AGRICULTURAL RESEARCH PROJECT PROCUREMENT METHOD AND DISBURSEMENTS Project Element Procurement Method Total ICB LCB Other N.A. Cost a/ ......... (US$ million). Civil Works 5.32 - - - 5.32 (5.32) (5.32) Vehicles and Equipment 4.65 1.57 - - 6.22 (4.65) (1.57) (6.22) Operating Costs (incl. Audit) - - - 3.64 3.64 (excluding salaries) (3.16) (3.16' Short-term Consultants' services - - 2.48 - 2.48 & Training Costs (2.24) (2.24) (excluding long-term Techn. Assist.) Long-term Technical Assistance - - 4.60 - 4.60 and Fellowships b/ (-) (-) Incremental Local Staff - - - 2.71 2.71 (-_) (-) Reserve Research Fund - - - 2.30 2.30 (2.30) (2.30) PPF repayment - - 0.75 - 0.75 (0.75) (0.75) TOTAL 9.97 1.57 7.83 8.65 28.02 (9.97) (1.57) (2.99) (5.46) (19.99) Note: Figures in parenthese are the respective amounts financed by the IDA Credit. a/ Based on a five-year project implementation period. b/ Bilateral financing would be under the cofinanciers' procurement procedures.  - 6 - Schedule B Page 2 of 2 Disbursements Amount of IDA Financing Percentage Category US $ Million of expenditures (1) Civil Works 4.24 100Z (2) Vehicles and Equipment 5.00 100o (3) Operating Costs 3.57 87? a/ (excluding salaries) (4) ConRultants' services and 2.13 86? Training Costs (5) Reserve Research Fund 2.30 100? (6) PPF repayment 0.75 100? (7) Unallocated 2.00 TOTAL 19.99 Estimated Disbursements from IDA Credit IDA Fiscal Year FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 -----------------------(USS million)----------------------_ Annual 5.0 2.9 3.4 3.9 2.2 1.2 0.7 0.4 0.2 Cumulative 5.0 7.9 11.3 15.2 17.4 18.6 19.3 19.7 19.9 a/ 0 of overhead operating costs; 100Z of research programs' operating costs.  - 7 - Schedule C NIGER NATIONAL AGRICULTURAL RESEARCH PROJECT Timetable of Key Project Processing Events a) Time taken to prepare: Three years b) Prepared by: Government with ISNAR and FAO/CP assistance c) First IDA missions October 1987 d) Appraisal Mission Departures June 1989 e) Date of Negotiations: February 12, 1990 f) Planned date of Board Presentation: April 10, 1990 h) Planned date of Effectiveness: July iV i) List of Relevant PCR/PPARs: Dosso Project (Cr. 967- NIR) Completion Report; Maradi Project (Cr. 1026- NIR) Completion Report.  Status of Bank Group Op?rntions in Niger Schedule D SPNRO25 - -'. mary StatemLnt of Loans and P. 1 of 2 IDA Credits (IOA Data as of 8/30/89 - MIS Data 10/06/89) Amount in US8 mIllion (lese cancel lations) Loan or Fiscal Porrower Purpose Bnk IDA Undis- Closing Credit No. Yonr buroed Date Credits 19 Credit(u) closed C10280-NIC 1990 NIGER MARADI II 16.70 5.80 09/80/8S (R) CIISIO-NIC 1981 NIGER EDUCATION I 21.50 4.65 06/80/90 (R) C12260-NI0 1982 NIGER INDUSTRIAL DEVELOPMENT 16.00 6.49 12/81/90 (R) C12280-NIC 1982 NIGER FORESTRY II 10.10 2.88 06/30/89 (R) C18090-NI0 1983 NIGER WATEk SUPPLY 6.60 0.29 06/80/88 (R) C18940-NIG 1988 NIGER HIGHWAYS IV 28.60 1.96 10/30/90 (R) C14930-NIG 1984 NT5ER ECON, MOUT A TA 11.70 0.88 04/30/90 C16110-NIC 1986 NIGER POWER ENGINEERING 7.60 8.87 12/81/89 (R) Ci1i1O-NIG 1985 NIGER IRRIGATION REHAB. 9.80 8.07 12/81/90 CAO18O-NIC 198S NIGER TRANSPORT, SECTOR CRE 15.00 2.22 08/80/93 C10880-NIG 1980 NICEP HEALTH 27.80 28.60 06/80/98 C17060-NIC 1980 NIGER TRANSPORT, SECTOR CRE 15.00 10.40 06/80/98 C17080-NIG 1987 NIGER P.E. SECTOR ADJUSTMENT 20.00 8.60 09/80/89 (R) CAO81O-NIG 1987 NIGER PRIM EDUC DEV 18.40 16.80 08/80/94 C18830-NIC 1987 NIGER P.E. SECTOR ADJUSTMENT 60.00 28.60 09/80/89 C18380-NIG 1988 NIGER P.E. INST. DEVELOPMENT 5.60 8.08 00/80/92 C18800-.'4IG 1988 NIGER ENERGY 81.60 28.41 12/81/94 C18900-NIC 1988 NIGER SMALL RURAL OPERATIONS 9.80 7.26 08/80/96 TOTAL number Credits a 18 826.40 148.21 TOTAL*** 429.42 of which repaid 6.61 TOTAL hold by Bank A IDA 482.62 Amount sold of which repaid TOTAL undisburced 146.82 NOTES: ______________ * Not yet effective -e Not yet signed sa Total Approved, Repayments, and Outstanding balance represnt both active and Inactive Loans and Credits (R) indicates formally revised Closing Date The Not Approved and Bank Repaymnts are historical value, all othors are mrket value. The Signing, Effectiveness, and Closing dateo are based upon the Loan Department official data and are not taken from the Task Budget file.  Schedule D Page 2 of 2 The Status of Bank Group Operations in Niger B. STATEMENT OF IFC INVESTMENTS Inv. Fiscal Obligor Types of Amount (US$ million) No. Year business Loan Equity Total 619 1982 Les Moulins du Sahel Food and Agri- 2.22 0.33 2.55 S.A. (MDS) business Total Gross Commitments 2.22 0.33 2.55 Less cancellations. terminations, 0.575 0.24 0.815 repayments and sales Total commitments now held by IFC Total undisbursed  NIGER m NATIONAL AGRICULTURAL RESEARCH PROJECT LBA PROJET NATIONAL DE RECHIERCHE AGRONOMIQUE AGRO - ECOlOGICAL 7O.NES: ZONES AS: A I G E R I A Ddseff e-Ra'nent pastoral zones Transit l zones Zonep k b nurns " Zoa done - a Valle mi md c ar I~~Zoe I~ Mal et5vxJdbm i S Centers cVae z Tahou staim = - De w= &BENI so t= in 5 V _ - - ' A_ lsd n l\/ - z -BURKD>t s dsIN