Benin - Natural Resources Management Project

The WrdBn mOR OFFICæALUS ONLY MICROFICH COPY rt No. p- 564-BEN Type / 34920 / J8118 AP-5645EN D3 ViM AND RE løs,DAIO PUS8IDENT OP TRE DE~OMW ASSOCIATION AO - IMP?OSED CREMIT i'OV- StR 10'.1 >MILI1N TO 'M, EPUBÉIC OP BENIN FOR A -KATR RESOURCES ~AAGZMENT PRJECT FEBRUARY 18l 1992 'Ji rnUi distrIhtioo aali10y b. u4e r.cip only in the perfor-an~~ o i? het iiIøø4Øl u watiters ot eer wise .didsa ftøu Woal s 8uIa.riaalo.I CURRENCY EQUIVALENTS Currency Unit CFA Francs (CFAF) US $ 1.00 = CFAF 2831/ WEIGHTS AND MEASUBES Metric System ABBREVIATIONS AND ACRONYMS DFRN Direction des For6ts et des Ressources Naturelles CARDER Centre d'Action Regionale at de Ddveloppement Rural CCCE Caisse Centrale de Cooperation Economique CENATEL Centre National de T616dStection FAO-CP FAO/World Bank Cooperative Program IDA International Development Association MDR Minist&re du D6veloppement Rural NGO Non Governmental Organization PCR Project Completion Report PPAR Project Performance Audit Report UNDP United Nations Development Program GOVERNMENT FISCAL YEAR ' January 1 - December 31 A.f Exchange rate of December 1991. Tho parity of the CFAP with the Preach Pranc is fixed at 50/1. FOR OFFICIAL USE ONLY REPUBPLIC OF BENIN NATURAL RES0URCES MANAGEMENT PROJECT CREDI1T AND PROJECI SUMMARY Borrwer:Republic of Bonin Benefcliligs:Local rural communities, Ministry of Rural Development (MDR) Amu SDR 10.1 million (US$ 14.1 million equivalent) Igrma:Standard IDA terms, with 40 years maturity Einancing Plan: Government US$ 2.3 million IDA US$14.1 million German aid US$ 5.1 million CCCE US$ 2.3 million TOTAL US 24.4 million Eggno_mi1c Rate of Return: Not applicable Staff AggrAisal Regort: P-998 2-BEN Maps:IBRD 23346 IBRD 23347R IThis 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 T HE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF BENIN FOR A NATURAL RESOURCES MANAGEMENT PROJECT 1. I submit for your approval the following report and recommendation on a proposed development credit to the Republic of Benin for SDR 10.1 million (US$ 14.1 million equivalent), on standard IDA terms with a maturity of 40 years to help finance a Natufal Resources Management Project. 2. B Agriculture accounts for about 40% of GDP, over 50% of exports and 75% of the active population. Agricultural growth averaged 4.2% over the period 1980- 88, but this was achieved mainly by more extensive land use. Owing to mounting demographic pressure, soil productivity is steadily decreasing. Population is estimated at about 4.6 million with a growth rate of more than 3% per year and densities varying from 340 inhabitants/km2 in the south, to 14 inhabitants/km2 in the north. Although 65% of Benin's total area is :overed by some type of woody or bushy vegetation, the overall natural resources situation shows evidence of advanced degradation everywhere and desertification in the north. Only about 200,000 ha are still covered with tree species of any economic value. About 2.7 million ha constitute the so-called protected zones (national parks, gazetted forests and fauna reserves), but unrecorded surfaces are continuously being cleared for farming and grazed for livestock within and outside protected areas, expanding the agricultural frontier. In the whole country, and especially in the center and the south, the pressure of itinerant agriculture, overgrazing, bush-fire and wood exploitation (mostly for energy) is dangerously depleting natural resources. Water runoff intensifies on ill-protected soils, erosion accelerates and water source and well replenishment declines, leading also to lake silting. 3. The Ministry of Rural Development (MDR) has the main responsibility for agriculture, livestock, fisheries, water management, forestry, wildlife management, and agricultural research. Diffusion and implementation of agricultural development policies are entrusted to regional rural development agencies (CARDER) located in each Department, under the MDR. The Forestry and Natural Resources Directorate (DFRN), within MDR, is responsible for the management of forests and fauna (protection, replanting, repression and training). DFRN includes the Teledetection Center (CENATEL) responsible for remote sensing and environmental monitoring. 4. Ongoing agricultural policy measures, spelled out in a Letter of Rural Development Policy of the Government of May 1991, include a major institutional reform defining new statutes for MDR and the CARDERs, and a redefinition of the role of the State while encouraging greater scope for the provision of services to agriculture by the private sector. 5. A new Ministry of Environment, Habitat and Urbanism was recently created to coordinate sectoral policies affecting the environment through the preparation of an Environmental Action Plan and its subsequent implementation. 6. Legislation on water, forestry or land tenure is nonexistent, inadequate or little enforced. However, an interministerial land tenure commission was created in the Ministry of Justice to address land tenure issues and initiate land legislation, and the forestry code has recently been revised in the context of the preparation of natural resources management activities. Research on natural resources is exclusively forestry oriented and limited to exploring possibilities of introducing exogenous species in reforestation schemes. 7. Proiect obectives. The project has two main objectives: (a) institution-building, including strengthening of the planning, management, monitoring and evaluation capacity, formulation of a national forestry program, training and control of poaching in the national parks; and (b) site-specific pilot activities in rural areas aiming at stopping and possibly -2- reversing the present trend of degradation of renewable natural resources (land, forest, wildlife), by promoting sustainable production systems and natural resources management by organized rural communities. 8. Pilot activitios would concentrate on simple and replicable interventions, accessible and economically attractive to rural groups, with an emphasis on minimizing recurrent costs to the State as well as to the local communities. Over a first five-year phase of a longer term program, a balanced and sustainable process of farmer participation in the management of land, water, forest and wildlife would be tested, under MDR and CARDER guidance and monitoring. 9. Project Descriotion. The project would include the following activities: Institution building activities would comprise: (a) strengthening of the natural resources planning, management, monitoring and evaluation capacity, including support to DFRN, as the central program coordinator, and CENATEL for remote sensing, analysis and mapping; (b) reinforcement of the forestry posts for poaching control in the national parks; (c) training and education of farmers, support staff and planners; (d) various studies, including the elaboration of a natural resources management master-plan for the Borgou Department, a study of the wood sub-sector and of the possibility for the creation and management of a national fund for natural resources to ensure financial sustainability once donor financing ends. Site-soecific ilot activities would comprise: (i) participatory management of natural forests and rehabilitation of three pilot sites representing different situations and degrees of forest encroachment; (ii) land management operations on four watersheds located in different ecological and agro-demographic zones; (iii) land registry operations in the pilot watersheds, leading to mapping and recording of individual and community rights and providing basic information for the future elaboration of land legislation; (iv) adaptive research programs and experiments conducted on the same wvatersheds and on farmer fields, involving soliwater management, improved fallow, agro-forestry, village plantations and livestock integration; and (v) wildlife management with local participation at two sites on the border of the national parks. 10. The total cost of the project is estimated at US$ 24.4 million equivalent, with 52% in foreign exchange. French and German agencies, and the United Nations Development Program (UNDP) have participated in the appraisal of the project and will participate in its financing. 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 the Bank Group operations in Benin are given in Schedules C and D respectively. Two maps are also attached. 11. Proiect Imolementation. DFRN is the principal implementing agency for carrying out and coordinating the proposed activities. The same staff has successfully managed the previous IDA-financed Forestry Development Project, thus gaining experience in project implementation. CENATEL would be entrusted with environmental monitoring. Field activities would be demand-driven and promoted with the support of decentralized technical staff, farmer organizations, NGOs and the private sector. Participation of the extension staff of the CARDER in field activities in the pilot areas would contribute to sustainability and would serve as a support to extension activities of the CARDERs. 12. Proiect Sustainability. The proposed activities would result in increased institutional sustainability by seeking methods to increase productivity with lesser pressure on natural resources and by linking these activities with other agricultural services and sectoral programs. They would help the Government implement its stated policy of making the short- term objectives of villagers compatible with their long-term interests, making the rural communities and stockraisers responsible for the management of their assets; and developing appropriate and replicable technology acceptable to the local population. In addition, participation of the extension staff of the CARDERs in field activities in the pilot areas would contribute to sustainability and would serve as support to extension activities of the CARDERs. -3- 13. Lesson Leaed from Previous IDA Involvement. Previous agricultural projects have often been dictated by sectoral and regional approaches focused on short-term productivity criteria without the participation of local communities or consideration of farmer strategy. Moreover, State involvement in the direct management of production and natural resources has proven disappointing. The approach favoring local community participation in the preparation and implementation of natural resources management plans is increasingly being adopted by Government services, NGOs and donors agencies, including IDA, particularly in Sahelian countries. Local community response has generally been positive and proven effective in solving land related conflicts and common resources management issues. Experience shows that clarification of rights over resource utilization through supporting legislation and policy reforms is often needed. Furthermore, although field operations should be decentralized, national coordination among various types of interventions is required for overall coherence and long terrm development impact. 14. Rationale for IDA Involvement. The project is fully in line with Benin's new agricultural policy objective of reinforcing rural organizations and their management capability. By dovetalling with the recently approved Agricultural Services Restructuring program and the Environmental Action Plan under preparation, the project would ensure institutional and itrategic coherence. The project is national in scope and aims at dev3!oping a national capacity: to design policies; to participate in and coordinate the implementation of sustainable methods of land use; to monitor the deterioration of natural resources; to plan remedial actions; and to evaluate their impact. Through decentralized pilot operations and expert support missions, the project would help entrust local communities with the management of their own renewable natural resources. 15. Agreed Actiong. The Government has agreed on the following actions: (a) a national forestry plan would be finalized and diffused not later than June 30, 1993; (b) competent staff with qualifications, experience, terms and conditions of employment satisfactory to IDA would be appointed and maintained; (c) a Coordinating Committee would be maintained for the duration of the project; (d) a mid-term review would be undertaken not later than three years after credit effectiveness. Conditions of effectiveness are that: (a) a revised forestry code has been adopted; (b) technical assistance staff has been selected; (c) the decrees defining the new structures and status of MDR and the CARDERs have been signed and the professional staff of DFRN appointed; (o) a contract with a firm for the introduction of computerized accounting management and monitoring systems has been concluded; and (e) independent external auditors have been appointed. The deposit of 30 million FCFA into a project account as initial Government contribution would be a condition of disbursement against the works, equipment and operating costs categories of the credit. 16. Environmental Asgects. The proposed program would be the main vehicle to address the central questions of the rural environment, soil conservation and fertility, agriculture-induced deforestation, and management of natural forests. It would have a beneficial environmental impact by contributing to: a) a better awareness of local populations of the need for natural resources management; b) the introduction of more intensive production methods, thus reducing the pressure on land and forests; c) additional land tenure security creating a greater demand for improved technology and protecting the environment from abuse arising from open access to natural resources; d) the conservation of bio-diversity in the national parks; and e) the preparation of a forestry inventory and development of better knowledge on the wood subsector. The project would not entail any forced relocation. There is no commercial logging of natural forests in Benin. 17. ProaraM Obiective Categorigs. The proposed project addresses Benin's antipoverty strategy by intervening in areas of advanced degradation and low income and therefore having a benerial impact on poverty alleviation. 18. Priect Bgnefits. Without corrective action, the level of soil degradation will reach irreversible levels and the land/population ratio will continue to fall at an alarming rate. The principal benefits of the program would be a fundamental contribution to the foundations of productive and sustainable agriculture and the preservation of scarce natural resources. -4- At the same time, it would allow for more decentralized execution and would promote local community participation and private sector activities. 19. &JM. The principal risks are: (a) lowur than expected Government staff commitment to decentralized.asource managqment by local communities and private entities; (b) shortage of qualified local personnel capable of a participatory approach with rural communities and lack of experience in interministerial natural resources management coordination; and (c) delays in the implementatiin of the cestructuring of agricultural services. These risks would be minimized by the project's particular emphasis on (a) the introduction of forestry legislation favoring participatory management and the implementation of natural resources management by rural communities and private sector; (b) careful selection of local team members, training and envirormental sensitization at all levels and the provision of some technical assistance; and (c) satisfactory ongoing '.itiation of the restructuring of agriculture services for project start-up. 20. Recommendation. I am satisfied that the proposed credit complies with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed credit. Lewis T. Preston President Attachments Washington, D.C. February 18, 1992 fthiedule A REPUBLIC OF BENIN NATURAL RESOURCES MANAGEMENT PROJECT ESTIMATED COSTS AND FINANCING PLAN Estimated Proiect cost V/ Base LgPl Foreign Iffl ---- (US$ million)------ --- Planning and Management 1.9 3.1 5.0 23 Monitoring and Evaluation 0.8 1.9 2.7 12 Poaching Control 0.3 0.5 0.8 4 Training 0.9 0.7 1.6 7 Studies 0.2 0.6 0.8 4 Managt. of Natural Forests 1.8 1.1 2.9 13 Watershed Development 2.4 2.3 4.7 22 Land Tenure Operations 0.6 0.5 1.1 5 Research and Development 1.0 0.5 1.5 7 Wildlife Management. ..A ,..Q, _a Total base costs 10.3 11.5 21.8 100 Physical contingencies 0.7 0.8 1.5 7 Financial contingencies .l .QA 1.1 . TOTAL PROJECT COST 11.7 12.7 24.4 112 Financing Plan US $ million % Government 2.3 9 IDA 14.1 58 Germany 5.1 21 CCCE 2.3 9 UNDP _ .& 3 TOTAL 24.4 100 1 Net of taxes Page 1 of 2 REPUBLIC OF BENIN NATURAL RESOURCES MANAGEMENT PROJECT PROCUREMENT METHOD AND DISSURSEMENTS pf PrZ nt Acraemnts (US$ milion eWi vatent) Procurement Method Project Element ICS LCO Other N.I.F. Total Cost 1. Works 1.1. Buildings 1.0 0.3g/ 1.3 (1.0) (1.0) 1.2 Rural Works 0.8 1.9 1.22/ 3.9 (0.8) (1.9) (2.7) 2. Goods 2.1 Equipment/Vehicles 2.4 0.3 0.1 1.41/ 4.2 (2.4) (0.3) (0.1) (2.8) 3. Service Contracts 3.1. Aerial photo. aming, satellite egs 0.3 0.5 0.21 1.0 (0.3) (0.5) (0.8) 4. Consultanc. 4.1. Consultant services & studies 2.5 1.9g/ 4.4 (2.5)2/ (2.5) 4.2. Technical Assistance 0.9 1.3W 2.2 (0.9)g/ (0.9) 4.3. Training 0.6 0.8 1.4 (0.6)/ (0.6) 5. Miscellaneous 5.1. Incremental operating costs 2.0 3.2_W 5.2 (2.0) (2.0) 5.2. Retanding of the PPF 0.8 0.8 (0.8) (0.8) TOTAL 2.7 2.1 9.3 10.3 24.4 (2.7) (2.1) (9.3) (14.1) Note : Figures in parenthesis are the respective amounts financed by IDA credit. U.I.F.: Not IDA-Financed a To be cof fnencd by CCCE and GTZ with their om procurement arrangements To be coinanced by GT2 with their own procurement arrangements / To be 4ofinanced by CCCE, GTE and UNOP with their own procurement arreammento Inctules Goverraient, CCCE and 872 contribution a/ Servitres should procured in accordance with World Bank Guidelines -8- Schedule 3 Page 2 of 2 REPULICQF DENIN NATURAL RESOURCES MANAGEMENT PROJECT Disbursements IDA Allocation % of Expenditure Categories (US$ million), to be financed by QA 1. Civil & Rural Works 3.0 100 2. Vehicles & Equipmevt 2.6 100 3. Technical Assist. 0.9 100 4. Consultants' Services & Studies 3.0 100 5. Training 0.4 100 G. Incremental Operating Costs 1.8 variable 1/ 7. Refunding of PPF 0.8 100 8. Unallocated LA 100 TOTAL 14.1 1/ 90% of expenses incurred up to December 31, 1993; 60% of expenses incurred up to December 31, 1995; 30% of expenses incurred thereafter. ESTIMATED IDA DISBURSEMENT IDA Fiscal Year 92 93 94 95 96 97 98 99 -- -- -(US $ Million)------- -- Annual 1.5 1.7 2.0 2.4 2.4 2.1 1.5 0.5 Cumulative 1.5 3.2 5.2 7.6 10.0 12.1 13.6 14.1 -9- Schedule C REPUBLIC OF BENIN NATURAL RESOURCES MANAGEMENT PROJECT Timetble of Key Project Processing Events (a) Time taken to prepare: 2 years (b) Prepared by: Goiernment, IDA, FAO/CP (c) First IDA mission: July 1989 (d) Appraisal mission departure: May 1991 (e) Negotiations: December 1991 (f) Planned Date of Effectiveness: May 1992 (g) List of Relevant PCRs and PPARs: Borgou I Rural Development - 11S - Page 1 of 2 STATUS OF BANK GROUP QPERATIONS IN DENIN A. SUMMARY STATEMENT OF LOANS AND IDA CREDITS (As of December 31, 1991) - Amount in US$ ol II Ion ( amis tlations) Loan or Fiscal lndis- closing Credit No. Year Borrower Purpose Bank IDA bursed Date Credits 26 Credits(s) closed 229.81 C131404Ett 1983 REPUBLIC OF BENIN RURAL OEVT Ill (Z0U) 20.00 2.89 12/31/91(R) C153004EN 1985 REPUBLIC OF BENIN TECHNICAL ASSISTANCE 5.00 2.62 03/31/92{R) C17210-8EN 1986 REPUBLIC OF BENIN WATER II 10.00 3.67 12/31/93 C17480-8EN 1987 REPUBLIC OF BENIN PUBLIC ENTERPRISES 15.00 14.37 08/30/95 C18070-4EN 1987 REPUBLIC OF BENIN TRANSP.1NFRAST. 19.50 8.09 03/31/95 C18770-BEN 1988 REPUBLIC OF BENIN BORGOU RD.I 21.00 2.65 12/31/92 CIS600-BEN 1989 REPUBLIC OF BENIN TELECOM1NICATIONS 16.00 10.98 12/31/93 C20310*EN 1989 REPUBLIC OF BENIN HEALTH SERVICES CV 18.60 14.62 09/30/97 C20880 EN 190 REPUBLIC OF BENIN RURAL CREDIT 2.50 1.86 12/31/95 C22830-BEN(S) 1991 REPUBLIC OF BENIN SAL II 55.00 36.62 06/30/93 C22840-BEN (891 REPUBLIC OF BENIN POWER REHAB 15.00 16.16 12/31/97 C22850-BEN 1991 REPUBLIC OF BENIN kGRIC. SERVICES 12.30 13.30 08/30/95 C22880-8EN 1991 REPUBLIC OF BENIN PRE-INVESTMENT 5.40 5.88 08/30/95 TOTAL niber Cradits * 13 215.30 133.70 TOTAL** 444.91 of which repaid 16.08 TOTAL held by Sak & IDA 428.85 Amount sold of which repaid TOTAL undIsbursed 133.70 C2080-GEN i9e REPUBLIC OF BEIN SAL 45.9 .08 12/81/98(r) Total REPUBLIC OF ENIN 4g.gg .96 Notes: Not yet effective Not y signed ** Total Approved, Rqayments, and Outstanding balance represent both active and inactive Loans and Credits. ( Indicates formally revised Closing Date. ( indicates SAL/SECAL Loans and Credits. The Met Approved and Bank Repayments are hIstorical value, all others are market value. The Signing, Effective and Closing dates are based upon the Loan Department offical data and are not taken from the Task Budget f ie.to -12 - Schedule D Page 2 of 2 B. STATEMENT OF IFCE OPERATIONS (As of December 31, 1991) Origtnat Gross Amounts Fiscal Type of Ugg IUj Iggg 991 Bank øf Afrfica-lenin (AEF) ankn • 0.24 0.241) 1991 mBP (MF) Fish Processin. Total CniMtnt li LaI 1) Uncomitted as of Decer 31, 1991 IFC/AFRICA I jaury 1992 2107.SC:ee MAP SECTION IBRD 23346 NiGoe R s NIGER : nA BURKINA Gogounua NATIINC-41 + kuané Sind6 ORG Ue NATNGO KATandL "ES"dCE BORGO ATA0R PÅVhInko 1 1 TONATURAVL REASORE oesg- AVED ROADS RAILOADS INTERNAIONAL IRART GSaz AlWELDS @ PROVINCE CA~TL N NATIONAL CAP4TALS - PROVINCE BOUINDARIES ioi KMou - INTERNATIONAL BOUINDAMdES To t~ Adia- Pb ~ EoUU gAAOP4honk BONI TbOGAGO GHNAATLANTMQE BIGHT OF OO 1991N ~ ITERAllN OCIROR 19 MALI NIGER NIGER 75d T. N' ~ BURKINA FASO aZONE CYNEGEQUE N ~DE LAÅJN Z E 0 20 40 0 80 100 ZOE C NQUE LOTR -Snikocra To k=o Gogun 'NIGERIA Kobk Tokouniounø NA NGOU ouandé nende s - koumnbé . èèKll A ORAPéhmo Kdl é Niki TO OUEMEBENIN NATURAL RESOURCES MANAGEMENT PROJECT Tch rau >DX WATERSHED SITES GAZETTED FORESTS (PROJECT SITES) [~] GAZETTED FORESTS TOGO ToU-KilBo WILDLIFE MANAGEMENT SITES HUNTING AREAS ZOUL! ISOHYETS IN MM. -.'Savalou Glazoué PAVED ROADS GRAVEL ROADS 000 ++RAILROADS INTERNATIONAL AIRPORT DjiDKO AIRFIELDS ?000 0o DISTRICT CAPITALS ME) oc .200 z con x o PROVINCE CAPITALS Ag bm m ® NATIONAL CAPITALS -7 -ah- PROViNCE BOUNDARJES ZP A- INTERNATIONAL BOUNDARIES LOKO SÅ MONO e rn -aavi Lagos GHA NAB1GHT OF GHANA 1,M ATLANTIQUE BENIN PooBEI N;)0