Burkina Faso - Environmental Management Project

Document of The World Bank FOR OIO CAL USE ONLY Ret Ne. P-5434-BUR MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 11.5 MILLION TO BURKINA FASO FOR AN ENVIROMNENTAL MAAGEMENT PROJECT r MARCH 12, 1991 Thbi docoment bas a restricted dbigbution and may be sed by reclpieots ooly la the perforoe of their officWa dotles Its contts may ot otherwis be disebsed wthoot World Bak auaiation.  CURRUENCY EQUTVALENTS Currency Unit - CFA Franc (CFAF) US $ 1.00 - CFAF 253 (as of January 1991) 'YEIGaTS AND OEASURES Metric Systen GOVERUENT FISCAL YXl Jaruary 1 - December 31 .  FOR OFFICIAL USE ONLY BURKINA FASO ENVIRONMENTAL MANAGEMENT PROJECT Credit and Pro iect Summary Borrovers Republic of Burkina Faso Beneficiaries: Rural community members, Ministries of Agriculture and Livestock (MAE), Environment and Tourism (MET). Amounts SDR 11.5 million (US$ 16.5 million) Terme: Standard IDA terms, with 40 years maturity On-lending Terme: Proceeds of the Credit would be passed on by Goverument lu grant form to rural commnunities, MAE and MET. Financing Plan: Government $ 1.8 million IDA $16.5 million France $ 1.5 million Germany $ 2.0 million Norway $ 3.4 million TOTAL $25.2 million Economic Rate of Returni Not applicable Staff Avvraisal Report: No. 9094-BUR Mapst IBRD 22598, 22599, 22600 |bis do_at bas a Nsticted distributIon sad may be used by te ipients only in the performanca of their offic dutis Its contcuts may not otherwise be dis-losed w{. jout World Bank authoa  MEMORANDUM AND RECOMMENDATION OP THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO BURKINA FASO FOR AN ENVIRONMENTAL MANAGEMENT PROJECT 1. The following memorandum and recommendation on a proposed development credit to Burkina Faso for SDR 11.5 million (US$ 16.5 million) is submitted for approval. The proposed credit would be on standard IDA terms with 40 years maturity and help finance the first phase of a long-term program aimed at stopping and reversing the process of natural resources degradation. 2. Back2round. Agriculture in Burkina accounts for 302 of GDP and 75Z of exports and is the main or only source of livelihood for 85Z of the people. Real GDP grew by 42 a year between 1982 and 1989, led by agriculture, mining and government services. Agricultural growth, as conventionally measured, averaged 4.7Z. This rate is impressive, but it was achieved in large part by more extensive land use; fallow periods have been shortened, whereby natural processes of maintaining soil and pasture productivity have been put at increasing risk. Given the population dynamics, natural resources will come under increasing pressure for the next decade at leasts prevention of natural resource degradation is a national priority, and the priority for Burkina'a environment. The proposed project has been prepared on the basis of pilot operations in natural resources management undertaken by the Government and financed by IDA, other donors and non-governmental organizations over the past five years. The proposed project constitutes one of the most important action programs contained in the National Environmental Action Plan, presently nearing completion. 3. Rationale for IDA Involvement. The project forme an integral part of IDA's sector development strategy; closely related projects in national agricultural research (Cr. 1896-BUR), and national agricultural support services (Cr. 1979-BUR) were approved in FY88 and FY89 respectively. The proposed project, together with the sectoral adjustment operation that is being prepared, constitute the final elements of IDA's four-pronged etrategy for helping the Government address the key constraints on sustainable growth of the rural sector. The proposed project has been developed and appraised in close collaboration with France, Germany and Norway, represented by CCCE, GTZ and the Ministry of Foreign Affaire respectively, who will participate in project financing. 4. Proiect Obtectives. The proposed project seeks to stop and reverse the proceses of natural resources degradation in order to secure sustainable agricultural growth, to restore biodiversity, and to manage forests and wildlife sustainably. The project vould be the first five-year phase of a long-term national program. 5. Project Descrivtion. The above objectives would be sought through design and implementation of community land management plans, using an innovative participatory and holistic approach that has been tested and developed in about 20 pilot operations. The project would have two principal components, namely (i) identification, design and implementation of comuunity  - 2 - land management plans in three provinces located in different ecological zones of the country, and (ii) design and implementation, in two provinces, of combined management plans for large protected forest areas and the lands of surrounding communities. The project's four supporting components are (iii) technical support for other ongoing natural resources management operations in 18 provinces; (iv) establishment of national environnental and project impact monitoring systems; (v) human resources development; and (vi) management and studies. The project, to be carried out over five years, would provide funding for land and natural resources management works in 167 communities and three large protected forest units, vehicles, equipment and modest infrastructure, training costs, incremental operating costs, and short-term consultants. The total cost of the project is estimated at US$ 25.2 million equivalent with a foreign exchange component of US$ 9 million (36Z). A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and of disbursements, and the disbursement schedule are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in Burkina are given in Schedules C and D respectively. Three maps are also attached. The Staff Appraisal Report, No. 9094, dated March 12, 1991, is also attached. 6. ARreed Actions. The Government agreed on the following actions: (a) a mid-term review would be undertaken not later than June 30, 1994 and the operational conclusions accepted by Government and IDA would be promptly implemented; (b) procurement under local competitive bidding will be made in accordance with procedures satisfactory to IDA; (c) by April 30 of each year, the Operational Management Unit would convene a round table on natural resources management operations and a project implementation review meeting vith IDA and other donors; and (d) project accounts would be audited annually by independent auditors acceptable to IDA, all disbursements under SOEs would be audited separately and the audited accounts and the auditor's report would be submitted to IDA no later than six months after the close of the financial year. Conditions of effectiveness would be that: (a) a revised land tenure law satisfactory to IDA had been enacted; (b) the Operational Management Unit, Provincial Terroir Management Units and Forest Management Units had been established and staffed in a manner satisfactory to IDA; (c) the Provincial Terroir Committees and the Interministerial Project Steering Committee had been established and mandated in a manner satisfactory to IDA; and (d) the Operational Management Unit had concluded contractual arrangements satisfactory to IDA with the implementing agencies for the Project Impact Monitoring and the National Environmental Monitoring components of the project. 7. Environmental Impact. The broad objective of the project is to stop and reverse the process of natural resources degradation in order to secure sustainable agricultural growth, to restore biodiversity, and to manage forests and wildlife sustainably. The project will clearly have a positive impact on the environment. 8. Benefits. The project focusses on sustainable management of local community assets. The potential benefits are big, although not easily quantifiable, because many natural resource management problems can only be tackled by some form of communal endeavor. Resolution of these problems will contribute significantly to securing sustainable agricultural growth.  - 3 - Specific environmental benefits vill be restoration of biodiversity and sustained management of forests and vildlife. Another important benefit vill be the learning-by-doing experienced by community members and technical staff, and the distillation of best practices - vithout resorting to blueprints - that vill provide guidance to others engaged in natural resources management operations. 9. Riaks. The project has been designed and appraised on the basis of about 20 pilot operations in natural resources management that vere initiated in the last five years. It cannot yet be claimed, however, that all the ingredients for success have been clearly determined. Indeed, one of the conditions of success in the pilot projects was site-specificity of the land-use plans; blueprints are not vorkable, and the process of devising appropriate land-use plans requires skilled and sensitive technical expertise. Moreover, Burkina has enjoyed good rainfall since the 1984 drought, so that the land-use plans designed under the pilot operations have not yet been put to the test of their capacity to contend vith bad years. The main risks are thereforet li) climatic variability which, in acutely dry years, could upset the best-laid community land management plans and possibly destroy their credibility, and (ii) the ability of Government services to provide site-specific counsels to rural communities and to inculcate a sense cf ownership of land management plans by rural communities. The project is therefore modest in geographie coverage in this first phase, and has a strong built-in monitoring system to enable early detection of problema, seo that remedial action can be taken promptly. 10. Recommendation. I am satisfied that the proposed credit vould comply vith 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. March 12, 1991  -4- Schedule A BURKINA FASO ENVIRONMENTAL MANAGEMENT PROJECT ESTIMATED COSTS AND FINANCING PLAN 2 of ESTIMATED COSTS ai Local Forelan Total Base Costs ........................(US$ million). A. Terroir Management Plans 5.9 2.5 8.4 39 (3 provinces) B. Terroir/Forest Management Plans 4.9 1.5 6.4 30 (2 provinces) C. Technical Support to existing 0.8 0.4 1.2 6 projects (18 provinces) D. Environmental Monitoring 0.7 1.5 2.2 10 E. Human Resources Development 1.0 0.1 1.1 5 F. Management, Studies, Reviews 0.6 1.7 2.3 il TOTAL BASE COSTS 13.9 7.7 21.6 100 of which Civil Works: Buildings 0.3 0.3 0.6 3 Land Improvements 6.8 0.8 7.6 35 Vehicles and Equipment 0.7 3.2 3.9 18 Consultants and Studies 1.2 1.2 2.4 il Training 1.0 0.1 1.1 5 Incremental Operating Costa 3.9 1.1 5.0 23 Refunding of PPF 0.0 0.6 0.6 3 Physical Contingencies 1.0 0.7 1.7 8 Price Contingencies 1.3 0.6 1.9 9 TOTAL PROJECT COSTS 16.2 9.0 25.2 117 FINANCING PLAN Local Foreign Total ----- -(US$ million)------- Government 1.4 0.4 1.8 IDA 10.3 6.2 16.5 Other donors 4.5 2.4 6.9 TOTAL 1S.2 2252 a/ Net of taxes and import duties.  Schedule B Page 1 of 2 BURKINA FASO ENVIRONWENTAL MANAGEMENT PROJECT PROCUREMENT METHODS ai Total Proiect Element ICB LCB other NA Cost -------------US$ million------------- Civil Vorke Buildings - 0.7 - - 0.7 (0.7> (0.7) Land Improvements - 2.0 7.1 - 9.1 (1.8) (4.3) (6.1) Vehicles and Equipment 4.7 0.3 0.2 - 5.2 (3.8) (0.2) (0.2) (4.2) Consultants and Studies - - 2.7 - 2.7 (2.3) (2.3) Training - - 1.3 - 1.3 (0.1) (0.1) ancremental Operating Coste - - 5.6 5.6 (2.5) (2.5) Refunding of PPF - - - 0.6 0.6 (0.6) (0.6) M= mn- _- _s Total 4.7 3.0 11.3 6.2 25.2 of which (IDA) (3.8) (2.7) (6.9) (3.1) (16.5) ai Figures in parentheses show respective amounts financed by IDA.  - 6- Schedule B Page 2 of 2 BURKINA FASO ENVIRONMENTAL MANAGEMENT PROJECT DISBURSEMENTS IDA Allocation X of Expenditure Categories (US$ million) to be financed by IDA 1. Civil Works 6.0 100 2. Vehicles 3.6 100 3. Training 0.1 100 4. Consultants and Studies 1.7 100 5. Incremental Operating Costs 2.5 60 6. Refunding of PPF 0.6 100 7. Unallocated 2.0 100 TOTAL 16.5 ESTIMATED IDA DISBURSEMENTS IDA Fiscal Year 92 93 94 95 96 97 9 98 ...... (US$ million)..... Annual 2.0 1.8 2.2 3.0 3.0 3.0 1.5 Cumulative 2.0 3.8 6.0 9.0 12.0 15.0 16.5  -7- Scheeule C BURKINA FASO ENVIRONNENTAL MANAGEMENT PROJECT Timetable of Kea Proiect Processing Events (a) Time taken to prepares 49 months (b) Prepared bys Government with IDA and FAO/CP assistance (c) First IDA missioni May 1986 (d) Appraisal mission departure: June 1990 (e) Negotiations: February 11-13, 1991 sf) Planned Date of Effectiveness2 December 1991 (g) List of Relevant PCRs and PPARss Hauts Bassins Agricultural Development (PCR No. 9055) Boucle du Mouhoun Agriculturai Development (draft PCR of December 6, 1990) Second Bougouriba Agricultural Development (PCR No. 9039) Koudougou Pilot Project (PCR No. 9296) See alsos "Cotton Development Programs in Burkina Faso, C