Document of The World Bank FOR OFFICIAL USE ONLY Report No. 11769-TA STAFF APPRAISAL REPORT TANZANIA AGRICULTURAL SECTOR MANAGEMENT PROJECT (ASMP) JUNE 30, 1993 Agriculture and Environment Operations Division Eastern Africa Department Africa Region 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 - Tanzania Shilling (TSh) US$1.00 - TSh 350 SDR 1 - US$1.41686 (as of May 20, 1993) WEIGHTS AND MEASURES ha - hectare km - kilometer mt - metric tons ABBREVIATIONS ASMP Agricultural Sector Management Project ATC Advisory Technical Committee CBS Central Bureau of Statistics CIF Cost Insurance Freight CSRP Civil Service Reform Program CMEWU Crop Monitoring and Early Waming Unit ERP Economic Recovery Program ESAMI Eastern and Southern Africa Management Institute ESAP Economic and Social Action Program FAO United Nations Food and Agriculture Organization GDP Gross Domestic Product IAPSO Inter-Agency Procurement Services Office ICB International Competitive Bidding IDA International Development Association IDS Institutional Development Strategy IDOS Institutional Development Objectives and Strategy IMF International Monetary Fund LCB Local Competitive Bidding MDB Marketing Development Bureau MIS Management Information System MOA Ministry of Agriculture MTR Mid-term Review NALERP National Agricultural and Livestock Extension Rehabilitation Project NALRM National Agricultural and Livestock Research Master NALRP National Agricultural and Livestock Research Rehabilitation Project NGO Non-Governmental Organization NMC National Milling Corporation OED Operations Evaluation Department OJT On-the-job-training PPMB Project Preparation and Monitoring Bureau PCR Project Completion Report PPF Project Preparation Facility PPRP Parastatal Sector Reform Project PSAC Public Sector Adjustment Credit PSRC Public Sector Reform Commission PTP Personal Training Plan RALDO Regional Agriculture and Livestock Development Office RPFB Rolling Plan and Forward Budget RTF Rationalization Task Force SOE Statement of Expenditure SPAAR Special Program for African Agricultural Research TA Technical Assistance TANAA Tanzania Agricultural Adjustment Program TANSEED Tanzania Seed Company Ltd. TOR Terms of Reference TTG Technical Task Groups UNDP United Nations Development Programme FISCAL YEAR July 1 to June 30 TANZANIA FOR OFFICIAL USE ONLY AGRICULTURAL SECTOR MANAGEMENT PROJECT STAFF APPRAISAL REPORT TABLE OF CONTENTS Credit and Project Summary.. 1. BACKGROUND ......................................... 1 Project Background ..................................... 1 Macroeconomic Setting .................................. 2 Public Sector Adjustment Reform ............................ 2 2. THE AGRICULTURAL SECTOR .............................. 5 Sector Performance and Prospects ............................ 5 Sector Rehabilitation .................................... 5 Sector Reforms ....................................... 6 ................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Institutional Constraints to Sector Management and Reforms ... ........ 8 An Agenda for Accelerated Reforms .......................... 8 An Institutional Development Strategy ......................... 10 3. BANK GROUP ASSISTANCE AND STRATEGY .................... 11 Lessons from Previous IDA Involvement ....................... 11 Rationale for IDA Involvement .............................. 11 4. THE PROJECT .1.2..................................... . 1 Project Objectives and Strategy .............................. 12 Project Description ..................................... 13 Detailed Features .......... ............................ 13 Project Costs and Financing ................................ 15 Procurement . ......................................... 16 Disbursements . ....................................... 19 Accounting and Audits ................................... 20 5. ORGANIZATION, MANAGEMENT AND IMPLEMENTATION .... ...... 21 6. BENEFITS, RISKS AND SUSTAINABILITY ....................... 25 Benefits . ........................................... 25 Risks . ............................................. 25 Sustainability ......................................... 25 Recurrent Cost Implications on the Budget ....................... 25 7. AGREEMENTS, ASSURANCES AND RECOMMENDATION .... ........ 27 This report is based on the findings of a World Bank apprisal mision which took place in March 1993. The mission was led by the tank nuager, Mr. F. Byamugisha, and included Mesrs. J. Coates (AF2AE), policy component; R. Southworth (AF2TA), project implemtation angemant; D. Sungusia (AF2TA), tbaining and promotion of local conntultancy capacity; D. Gustafson, consultant, institutional development; C. Smavedra connultant, agricultural information component; K. Kimgu, connultant, civil srvice reformn; and V. Jayaraman, consultant, finncial analysim and procurement. Mr. J. Silvernmn (AFrES) wan 1a Advisor and Mesrs. A. Abramovich (LA2AG) and 1. Knapp (AF2PE) were the peer reviewen. Procesing assisance wan provided by Ms. C. Jones and seretarial assitance by Mmes. M. Hileman and A. Tadeera. Sector Division Chief was Ms. S. Ganguly; and Country Diretor was Mr. F. Colaeo. 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. ANNEXES A. Rationalization of MOA Functions B. Policy Formulation, Planning and Monitoring Component C. Agricultural Information Systems and Services D. Selected Project Cost Tables E. Terms of Reference for Key Positions and Consultants F. Schedule of Disbursements G. General Supervision Plan H. Procurement Schedule and other Procurement Tables I. Organization of the Ministry of Agriculture J. Selected Documents in the Project File TANZANIA AGRICULTURAL SECTOR MANAGEMENT PROJECT CREDIT AND PROJECT SUMMARY Borrower: Government of Tanzania (GOT) Benefariaes: Ministry of Agriculture (MOA) Amount: SDR 17.3 million (US$24.5 million equivalent) Terms: Standard, with 40 years maturity Project Objectives: The overall objective of the project is to strengthen institutional capacity to formulate and implement the Government's agricultural development policies, strategies and programs. Specific objectives include strengthening institutional capacity to support: (a) rationalization and strengthening of goverrnent functions in the agricultural sector; (b) formulation and implementation of agricultural policies; and (c) improvement of the agricultural information systems and services required to facilitate an effective functioning of the Government and the private sector in a market-oriented economy. Project Description: The project would finance technical assistance, training, personnel service contracts, workshops, seminars, study tours vehicles and office equipment in support of the following components: (a) rationalization and strengthening of MOA functions by supporting: (i) activities of MOA task forces, task groups and consultants engaged in phasing out at least 48 MOA functions, developing cost sharing (with the private sector) mechanisms for at least 20 other MOA functions and restructuring or preparing for privatization about 80 agricultural parastatals; (ii) strengthening management systems and capacity related to planning and budgeting, management training, personnel management, management information system, accounting and procurement. (b) Strengthening of institutional capacity to formulate and implement policies by supporting two sets of activities: (i) policy analyses; and (ii) longer term institutional strengthening. The work program in the area of policy analyses would include: preparation of sector policies and programs; improved policy coordination and feedback through support to strengthen the Policy Analysis and Advisory Committee; improved regulations, incentives and an enabling environment for private sector development; and food security policy and strategic grain reserve. Support for longer term institutional strengthening would include a comprehensive training program, and improved work environment and facilities. (c) Improving agricultural information systems and services by supporting the strengthening, rationalization and expansion of the agricultural information base which is presently very weak. Priority would be given to supporting the country's capacity to generate reliable information on crop and livestock production and productivity, and marketing and trade, at the ii national, regional and district levels by (i) carrying out an agricultural census; (ii) expanding the subsequent surveys to provide adequate data for planning and policy evaluation on an annual basis; (iii) carrying out a pilot survey to establish less expensive sources of data collection; (iv) improving the data collection capacity of the Crop Monitoring Early Warning System; and (v) improving communication facilities for better collection and dissemination of marketing and trade information. Benefits: The project benefits would accrue from four sets of activities: Flrst, the role of MOA would be refocused to the provision of public goods and an enabling environment for the private sector. Second, successful implementation of this project would set up MOA as a pioneer participant in the forthcoming Civil Service reforms which are geared to enhancing the pay, morale, performance and productivity of government employees. Third, MOA's policy formulation and implementation capacity would be strengthened, enabling the accelerated implementation of agricultural reforms. Fourth, the agricultural information base, systems and services would be strengthened, facilitating improved public sector management, and planning and management by the private sector. These activities would help to sustain the process of improving agricultural growth, food security and foreign exchange earnings. Risks: The main risk relates to government commitment to implement the institutional development strategy and to effectively utilize technical assistance to strengthen institutional capacity. Government commitment was tested during preparation of the institutional development strategy, during preparation of the project by Government and local consultants and during appraisal; it was found strong at technical and management levels. The strength of government commitment was further demonstrated by the Government's letter of institutional development objectives and strategy addressed to IDA. iii Estimated Project Costs (US$ Million) Coonnt Local Foreign Total Rationarion of MOA Functions 4.2 3.6 7.8 Policy Formulation and Implementation 2.1 5.0 7.1 Agricultural Infonnation System 6.1 4.7 10.8 Total Bawline Cogs 12.4 13.3 25.7 Price Contingencies 0.8 0.7 1.5 Total Project Cosi 13.2 14.0 27.2 (of which, Taxes and Duties) 0.4 0.4 Financing Plan (JS$ Million) Local Foreign Total IDA 10.5 J 14.0 24.5 GOT 2.7 | | 2.7 Total 13.2 j 14.0 * 27.2 i Estimated Disbursemnents from IDA Credit (US$ Million) IDA Fiscal Year 94 95 96 97 98 99 Annual 5 4.4 4.5 5.0 2.5 2.6 Cumulative 5.5 9.9 14.4 19.4 21.9 24.5 Economic Rate Return: Not applicable Map: IBRD No. 19829 TANZANIA AGRICULTURAL SECTOR MANAGEMENT PROJECT (AS1M 1. BACKGROUND Project Background 1.1 The proposed project would be the third IDA-funded technical assistance intervention in the agricultural sector in Tanzania. The first Technical Assistance Project (Cr. 1206-TA) was identified in 1980 primarily to support an Export Rehabilitation Program. To this end, the majority of the financing went to support the Ministry of Agriculture's (MOA) capacity to implement agricultural policies and to increase exports of eight agricultural parastatals. Some assistance was also allocated to support the preparation of an Economic Recovery Program. The second Technical Assistance Project (Cr. 1524-TA) was prompted by the poor performance of the agricultural project portfolio and was therefore aimed at strengthening the capacity of the relevant Departments in the Ministry of Agriculture to coordinate and monitor project and parastatal performance. The organizational units within the Ministry of Agriculture that have been the main recipients of institutional strengthening under the two projects are: the Sectoral Planning Section; the Project Preparation and Monitoring Bureau, which monitors Government investments and parastatal activities; and the Marketing Development Bureau, which provides pricing and marketing information and advice to the Government, farmers and traders. 1.2 While the two projects have improved the Ministry's stock of trained personnel in policy analysis, as well as project and parastatal monitoring, there has been limited effective utilization of this personnel primarily because they have until recently been deployed in general planning functions, controlling and directing the economy. Moreover, the present institutional strength has depended significantly on external assistance to finance the required technical assistance, operating budget, and facilities. These are currendy financed under the Tanzania Agricultural Adjustment Program (TANAA) supported by IDA (Cr. 2116-TA) and other donors. Sustainability of this institutional capacity is very fragile and is significantly conditioned on continuation of external assistance. Further external assistance is necessary to support the formulation and implementation of the next phase of sector reforms since these are expected to be more institutionally demanding in terms of design, implementation and evaluation. 1.3 In addition to its weaknesses in policy management, the institutional framework in Tanzania's agricultural sector is not yet equipped to manage a market-oriented economy. MOA's roles, structures and functions are still fashioned on the old vision of interventionist development. The country has attempted to do too much through the public sector, assigning tasks to Government agricultural institutions for which they are ill-suited; some activities still remain in public hands which conditions and resource availability no longer justify. The agricultural institutions should be reformed and strengthened to deal not only with policy formulation and implementation, but also to support the process of developing and implementing a strategic vision in which agricultural institutions manage less but better. This 2 Chapter 1 means withdrawing from areas best served by the private sector and strengthening performance in areas where the Government's contribution is vital. Macroeconomic Setting 1.4 Since the Economic Recovery Program (ERP) was launched in 1986 and succeeded by the Economic and Social Action Program (ESAP) in 1989, the decline in the Tanzanian economy has been reversed by policy reforms aimed at transforming the economy from central control to market orientation. The policy reforms have consisted of macroeconomic stabilization, exchange and trade liberalization, and financial and sectoral restructuring including agricultural marketing reforms supported by four IDA quick-disbursing operations. While the reforms and increased external assistance have reversed Tanzania's economic decline and supported a real economic growth rate of about 4.9 percent per year during the period 1986 to 1991, the recovery falls short of Tanzania's potential and is not enough to generate sufficient employment and incomes to match the country's fast growing population (45 percent of whom are aged below 15 years). Moreover, the economy remains heavily dependent on foreign savings, with the external current account deficit estimated to be about 30 percent of GDP. 1.5 The Bank's country assistance strategy highlights the need to accelerate implementation of policy reforms as part of an overall effort to move to higher rates of economic growth, while reducing dependence on foreign savings. This calls for decisive economic management, a shift in the delivery of economic growth from the public to the private sector, adequate infrastructure, efficient economic services and mobilization of adequate external resources in the short to medium term. Given the importance of agriculture in the economy (contributing in 1991 about 60 percent of GDP, 80 percent of recorded exports and 90 percent of employment), it is imperative that policy and institutional reforms and improved sectoral management assume top priority. Public Sector Adjustment Reform 1.6 The role of the public sector in economic production and exchange has declined as a direct consequence of the expansion of markets and private sector activities following the launching of the ERP. For agriculture there has been expanded private trade, especially in cereals and non-traditional exports, and expanded production associated with the farmers' response to the improved incentive structure. The expansion in private trade in cereals has taken away the market share of the main parastatal in that subsector, the National Milling Corporation (NMC). While the expansion in private trade has forced the parastatals to adjust their roles, this adjustment has been limited and brought about only indirectly. In order to overcome this weakness, several initiatives intended to bring about a major adjustment of the public sector have been made. 1.7 First, reforms in planning and budgeting have been introduced to rationalize government priorities and move the Government from central planning to policy and macroeconomic management. These reforms are centered around the replacement of the Five Background 3 Year Development Plan with the Rolling Plan and Forward Budget. Second, a parastatal restructuring and privatization program has been launched which aims at getting the Government out of the economic activities that are best suited for the private sector, as well as improving the efficiency of the activities the Government will stay involved in. Third, a civil service reform program has been launched to reduce the size of the civil service, improve its management and restructure its remuneration package for more effective performance of the functions remaining with the Government. Overall, these public sector adjustment reforms are expected to transform the role of Government to one that enables the private sector's development and provides public goods effectively and efficiently. These public sector adjustment reforms, pursued at macro level, will be supported by the IDA- funded Public and Parastatal Sector Reform Project (PPRP) and the Public Sector Adjustment Credit (PSAC). These operations will be implemented simultaneously with the proposed ASMP. 4 Chapter Two 2. THE AGRICULTURAL SECTOR Sector Performance and Prospects 2.1 Tanzania has a diverse ecology and ample land resources to sustain high levels of agricultural growth. However, pervasive government interventions in the seventies and early eighties, including villagization and the monopolization of agricultural inputs and produce marketing by cooperatives and parastatals, plummeted real agricultural growth (which was modest at 3.1 percent per year in 1965-73) to 2.6 percent per year (in constant 1976 prices) during the period 1978-1985. The ERP and its follow-on program, the ESAP, supported the liberalization of the marketing of food grains and non-traditional exports. Donor-supported projects were initiated to rehabilitate rural infrastructure and agricultural extension and research services. As a result of this rehabilitation, policy reforms, the increased supply of consumer goods (associated with increased foreign exchange availability) and favorable weather conditions, agricultural growth has rebounded to about 4.9 percent per annum during the period 1986-1991. But with a predominantly rural population (90 percent) and a population growth rate of 3.2 percent, higher agricultural growth rates are required to provide food security, absorb new farm workers at high levels of productivity, and stimulate off-farm economic activities and employment. Sector Rehabilitation 2.2 The program for rehabilitating the agricultural sector has included the following projects: the Integrated Roads Project, cofinanced by 16 donors including IDA (Cr. 2149-TA) and the Sixth Highway Project (Cr. 1688-TA), which have supported rehabilitation and maintenance of key highways, trunk roads, and some feeder and access roads; the Ports Rehabilitation and Modernization Projects (Cr. 1536-TA and Cr. 2095-TA), the Railways Restructuring Project (Cr. 2267-TA), and the Telecommunications II Project (Cr. 1810-TA) which have supported rehabilitation of ports, railways and telecommunications networks; the Agricultural Export Rehabilitation Project (Cr. 1891-TA), which has supported the rehabilitation of processing infrastructure for traditional export crops; and the National Agricultural and Livestock Research Rehabilitation Project (NALRP; Cr. 1970-TA) and National Agricultural and Livestock Extension Rehabilitation Project (NALERP; Cr. 1994- TA), which have supported the rehabilitation of research and extension services, respectively. 2.3 The NALRP, co-financed by the African Development Fund, the Netherlands, the United Kingdom and the Republic of Germany, is the first phase of a long-term program to reinforce agricultural technology generation and dissemination in Tanzania. It has supported: (i) the consolidation of various research agencies and units into one Directorate of Research and Training under the Ministry of Agriculture; improvement of research planning and management, and financial control and monitoring; the formulation and implementation of a National Agricultural and Livestock Research Master (NALRM); establishment of an Agricultural Research Fund to finance priority activities identified in the NALRM; purchase of vehicles, equipment,and materials to sustain on-going programs; training for research staff to strengthen management and research methodology, and to support the research program; and financing of civil works, technical assistance, training and recurrent foreign costs. The 6 Chapter Two support by the Special Program for African Agricultural Research (SPAAR) has facilitated close donor coordination in project implementation. A mid-term review of the project commenced in April 1993. Constraints to project implementation include lack of adequate budgetary provisions by Government to cover operating costs of essential programs and inadequate staff incentives required to motivate and retain staff. 2.4 The NALERP, co-financed by the African Development Bank, has been supporting the rehabilitation and strengthening of the Ministry of Agriculture's capacity in planning and implementing efficient and sustainable agricultural extension services in Tanzania. Its focus has been on: establishing a streamlined organization and management structure for extension services within MOA based on a single chain of command at all levels; introducing an extension system based on the Training and Visit extension methodology; providing training and supervising extension activities to facilitate the establishment of an efficient delivery system for quick adoption of improved technologies; construction and upgrading of staff houses and rehabilitation of training facilities, and provision of vehicles, bicycles, equipment, furniture and other materials required to enable staff to attain a more extensive coverage of the farming community through increased mobility; and enhancing the Ministry's extension planning and implementation capacity through provision of technical assistance in specific fields. The program is currently being implemented in 12 out of 20 regions of mainland Tanzania covering an area which serves 3.2 million farm families. A mid-term review for the project is currently underway. Issues arising from the project include inadequate budgetary support to cover operational costs not covered by donors; and inadequate incentives for staff. Sector Reforms 2.5 The agricultural sector has been favorably affected by a wide range of policy and institutional reforms at the macroeconomic and sectoral levels over the last seven years. Among the main policy instruments has been the exchange rate. The continued real depreciation of the Tanzanian shilling since the mid-1980s has improved prices of exportable commodities although part of this improvement has been absorbed by continuing high costs of the single channel marketing system dominated by inefficient marketing cooperative unions. Over the same period, real interest rates have moved from being strongly negative to zero or slightly positive. 2.6 The increased availability of foreign exchange together with the liberalization of external trade has increased imports and the availability of wage goods; this has provided a stimulus to agricultural production particularly of food crops and non-traditional exports. Exports of traditional crops have not responded positively because exchange rate benefits have not been able to reach farmers in the form of improved real producer prices; they have instead been absorbed by the single marketing channel dominated by cooperative unions and marketing boards. Major changes have taken place in the marketing of food crops. The deconfinement of domestic trade in food during the early 1980s has resulted in increased competition and development in food grain markets. Consumer prices of food crops have experienced large falls from their peak in 1983-85, whereas producer prices for export crops have remained steady in real terms over the same period. The Agricultural Sector 7 2.7 As for trade in agricultural inputs, private sector entry and competition have been limited. Although liberalization measures have attracted some private stockists, fertilizer supply and use in the counitry has remained low while significant demand has remained unmet in some farming areas. Supply of improved seeds is low despite the active involvement of a multi-national company. Formal credit is not yet available to the majority of smallholder farmers while informal credit markets are limited. Poor transport is still a constraint in the development of marketing systems. 2.8 The macro reforms were underpinned by IDA support under the Multi-Sector Rehabilitation Credits (Cr. 240-ET; Cr. 241-ET; and Cr. 1741-ET) which helped to initiate the reform process by supporting the required macroeconomic measures and providing an infusion of much needed foreign exchange. The agricultural sector reforms were underpinned by TANAA which has, since 1990, supported policy and institutional changes in the pricing and marketing systems for food crops, the three major export crops (coffee, cotton and cashew nuts) and production inputs. The reforms in the cereal trade which focussed on reducing restrictions to private trade resulted in a diminished role of government control over the cereal trade in the late eighties. Adjustment in other subsectors of agriculture has proceeded more slowly. 2.9 The main thrust of the reforms for the three traditional export crops were in the following order. The cooperative unions which used to sell their crop to the marketing boards were to own the crop to the point of export sale. The functions of the boards were to change to that of administering tenders and auctions; quality control; market intelligence; and providing advice to Government. Boards could also offer services as clearing agents to the unions but in competition with private agents. Indicative prices were to be set only as a guide to farmers in their negotiations with traders. Private traders were to be allowed to participate in crop procurement in competition with the previous official buyers (the cooperatives and marketing boards). Cooperative unions were to become member-controlled independent organizations, with no government interference. The cashew industry was to play a leading role in the liberalization of the nation's export crop marketing system, and it was planned that lessons learnt in the process would be carried over into the other crop industries. 2.10 These government decisions were announced in April 1991. Except in the cashew industry, where 100 traders have so far been licensed for the 1992/93 season, implementation of the reforms has been very slow. Policy announcements have not been followed up by legislative changes to effect the policy changes. As of today, the marketing of coffee and cotton is still contained within a single channel system, dominated by the cooperative unions which are inefficient and heavily indebted to the banking system. As for the reforms in the area of agricultural inputs, the focus was on reducing the fertilizer subsidy which currently stands at about 40 percent of the panterritorial price in the regions, as compared to a previous high of 80 percent. Foreign multi-national companies have entered the improved seeds industry; not much progress has been made in involving the private sector in agrochemicals for disease control in cotton and coffee, or in the veterinary drugs sector. 8 Chapter Two Institutional Constraints to Sector Managemnent and Reformns 2.11 Management of the agricultural sector through the Ministry of Agriculture has been very weak. There are at least three underlying sources of this weakness. First, the Government has attempted to do too much with declining resources. Its involvement has ranged from investing in and managing public enterprises to controlling and operating the producer and marketing cooperatives, providing services like agricultural mechanization, veterinary services, distribution of agricultural inputs and research and extension even for the specialized self-supporting crop enclaves. The Government ought to limit itself to critical services for which it has a comparative advantage in delivering and leave the rest to the private sector. Moreover, for some of the critical services the Government continues to provide, user charges could be levied in order to improve financing and promote economy in use of the services. 2.12 Second, there has not been any attempt to build institutional capacity on a long term sustainable basis. Institutional support by donors, including IDA, has been motivated by and directed at addressing short-term concerns. IDA's first Technical Assistance Project in the agricultural sector was motivated by the institutional need to implement the Export Rehabilitation Program of 1980 and to prepare a Structural Adjustment Program. The second Technical Assistance Project in the sector was prompted by the poor performance of agricultural projects and was hence designed to improve policy and project planning and monitoring. The technical assistance component of TANAA was designed to implement the TANAA reforms. Because these and other donor-supported technical assistance projects were driven by the need to undertake certain tasks at a certain point in time, the institution building effort has been uneven and ad hoc, requiring last minute requests for yet more technical assistance in order to address emerging institutional challenges. For example, while the technical assistance financed under TANAA has made a substantive contribution to implementing TANAA sector reforms, there is no institutional capacity to prepare and implement the next phase of sector reforms. 2.13 Third, institutional strengthening in policy management has been rendered ineffective by an institutional and policy environment which has emphasized government domination of the economy. The staff trained in policy analysis over the last ten years have found themselves deployed in planning, controlling and directing the economy rather than in policy analysis or the liberalization of markets and the business environment. Consequently, on-the- job retraining in policy and strategic management of a market-driven economy is required for government personnel. An Agenda for Accelerated Reforms 2.14 A Joint Government of Tanzania-World Bank review of the agricultural sector in October/November 1992 arrived at a consensus for the need for continued structural reforms in agricultural production, processing and marketing. An accelerated reform program is more urgently needed to handle the financial crisis of heavily indebted and insolvent cooperative unions which market traditional export crops. The Government is unable to continue to underwrite unsustainable processing and trading practices. The call on Government resources The Agricultural Sector 9 to finance basic social services and to respond to short term food security crises leaves little to subsidize unprofitable and inefficient production and marketing activities. The review concluded that a new policy approach was called for. This approach requires the Government to play a fundamentally different role which is restricted to the provision of public goods, policy management and the promotion of an enabling environment for the expansion of private sector production, trade and investment. The review identified at least thirteen priority areas for short- and medium-term actions. These are to: (a) allow agricultural exporters to exchange their foreign earnings at the market exchange rate; (b) terminate Government's financial support to the marketing parastatals (including those involved in agricultural inputs marketing), separate regulatory and commercial functions of marketing boards, and amend all relevant laws and regulations governing production, processing and marketing of export crops to allow multi-channel competitive marketing; (c) enable banks to manage the restructuring or liquidation of large cooperative union debtors, including bank take-over of cotton ginneries and coffee factories so they may be operated on a management contract or lease basis by the private sector; (d) implement the 'spirit' of the 1991 Cooperative Act by stopping political interference and dissolving or reconstituting cooperatives; (e) amend the Acts that restrict private commerce in food grains; (I) identify and institute measures to formalize land tenure, including the development of umbrella legislation based on recommendations from the Presidential Commission on Land Tenure which are acceptable to the Government; (g) identify and create conditions necessary for international inputs companies to import and distribute on their own account; (h) privatize veterinary services, veterinary drug distribution, heifer farms, and other directly productive activities which are currently under the MOA; (i) review the functions of MOA and support a program to enhance policy management, strengthen agricultural information systems and services and rationalize MOA operations; 0) restructure and staff the National Bank of Commerce and the Cooperative and Rural Development Bank so they may lend commercially to agriculture; (k) promote new sources of long-term investment funding for non-traditional exports; OI) define a national seed policy governing such items as patent protection, access to germplasm, imports, exports and quarantine; and 10 Chapter Two (m) undertake surveys and studies necessary to formulate a livestock development strategy and program. Detailed design and implementation of these measures requires an institutional capacity that is currently lacking. An Institutional Development Strategy 2.15 Recent changes in the economy have prompted the Government to consider revising its agricultural policies. During 1991 and 1992, several studies were sponsored by the Government, with donor support, to lay the foundation for a comprehensive review of the agricultural sector. These studies culminated in a 4-week review of the agricultural sector by a joint Government-IDA team in October and November, 1992 (para. 2.14). The review focussed on formulating agricultural strategies and policies. The agricultural policies aim at curtailing direct government intervention in production and marketing, and expanding the reform program to include restructuring of traditional export crop marketing and reforming the laws and regulations which restrict competition with the parastals and cooperatives, and hinder the development of the private sector. One of these is an institutional development strategy (IDS). While work on these is under way, there is a growing consensus on an IDS designed to transform the role of Government from direct intervention in production and marketing to one of facilitating the private sector to foster growth. This entails supporting a long-term process that will: (i) phase out the involvement of Government in activities better suited for the private sector; (ii) enable the Government to undertake more effectively and efficiently the remaining critical public sector functions; and (iii) build government capacity to provide an appropriate policy framework and to manage this process of functional rationalization. The ASMP would constitute the primary instrument to support implementation of this IDS. 3. BANK GROUP ASSISTANCE AND STRATEGY Lessons from Previous IDA Involvement 3.1 IDA has financed two technical assistance projects in the agricultural sector (Cr. 1206-TA and Cr. 1524-TA). Both projects have been completed and their project completion reports (PCRs) have been issued. Two of the lessons highlighted by the PCRs are that (i) institution building and personnel development require long-term assistance and continuity of implementation and (ii) the success of capacity building projects is enhanced if assistance is targeted at the strategic functions of the relevant institutions. These two lessons are also highlighted in a 1990 study by the Bank's Operations Evaluation Department entitled 'Free- standing Technical Assistance for Institutional Development in Sub-Saharan Africa". Other important lessons from this study include: the need for a clearly thought-out institutional development strategy; the need to take the borrower's limited absorptive capacity into account; and the need for adequate supervision, especially from World Bank Resident Missions. These lessons have guided the design of the proposed project and its implementation plan in several ways. First, the project has been designed to focus on implementing key elements of a long-term institutional development strategy in agriculture (para.2. 15). Second, the project has been made simple in design, limited to supporting only three project components, all in one ministry. And third, most of the project supervision would be done by the Resident Mission staff. Rationale for IDA Involvement 3.2 IDA's support to strengthening Lnstitutional capacity in Tanzania's agricultural sector is critical now for several reasons. Firstly, capacity building is urgently needed to support the next round of sector reforms. As the recent Country Economic Report (World Bank, 1991) notes, the reforms supported under the first adjustmnent program for agriculture (TANAA) were deliberately simple in design, requiring mainly announcements of policy changes to stimulate private activities. This was intended to be in conformity with the limited institutional capacity for policy formulation and implementation. The next round of sector reforms is institutionally demanding, requiring detailed design and intensive monitoring. It therefore needs to be preceded by institutional strengthening in policy formulation and implementation. Secondly, the MOA has been spreading itself too thin, undertaking functions best suited to the private sector; there is a need to rationalize its functions. Thirdly, there is a need to improve the collection, management and dissemination of agricultural information which is critical to public and private sector management in a market-driven economy. Given IDA's leadership in mobilizing development assistance and supporting policy and institutional reforms in Tanzania, IDA is best placed to support institutional strengthening in the agricultural sector. 4. THE PROJECT Project Objectives and Strategy 4.1 The overall objective of the proposed project is to strengthen institutional capacity to formulate and implement the Government's agricultural development policies, strategies and programs. Specific objectives would include fostering institutional capacity to support: (i) the rationalization and strengthening of government functions in the agricultural sector; (ii) the formulation and implementation of agricultural policies; and (iii) the improvement of the agricultural information systems and services required to facilitate an effective functioning of the Government and the private sector in a market-oriented economy. The strategy to achieve these objectives is contained in the Government's institutional development objectives and strategy (IDOS) for agriculture. The key elements of this strategy are: phasing out the provision of services better done by the private sector; supporting the restructuring and privatization of agricultural parastatals spearheaded by the Presidential Parastatal Sector Reform Commission (PSRC); revising laws and regulations to provide an enabling environment for private sector investment in the agricultural sector; developing management systems and capacity required to improve the allocation and utilization of budgetary and manpower resources, manage the functional rationalization and restructuring of MOA and improve the managerial skills of the decision makers in MOA; and strengthening the agricultural information systems and services that are important to supporting a market- oriented economy. Details are included in a letter of IDOS addressed to IDA. 4.2 During negotiations, assurances were obtained that the Government would implement the program contained in the IDOS. The project objectives are consistent with the Government's broader policy goals for reform of the public sector through programs of privatization of parastatals, the civil service reform, and the new approach to planning and budgeting through the Rolling Plan and Forward Budget which are being supported under the forthcoming Public Sector Adjustment Credit. The project would provide a key link at the sectoral level to these initiatives. The Project 13 Project Description 4.3 In line with its main objectives, the project has three main components: (i) rationalization of the government functions in the agricultural sector and the strengthening of the management systems of MOA; (ii) strengthening institutional capacity to formulate and implement policies; and (iii) improving agricultural information systems and services. Detailed Features 4.4 Rationalization of the Functions and Strengthening of the Management Systems of MOA (US$7.8 million). The project would finance activities related to supporting a process that would contribute significandy to four main areas: (i) phasing out of about 48 already identified MOA functions related to provision of services better done by the private sector; (ii) the joint operation by the MOA and the private sector of about 20 functions already identified; (iii) the privatization of about 80 agricultural parastatals; and (iv) strengthening MOA's capacity (at headquarters and regional levels) to manage the transition as well as to perform better the remaining functions through strengthening the planning and budgeting process, personnel management, management information systems including central records, and management training. 4.5 Support for parastatal privatization would be in the form of preparing privatization priorities and options and completing the on-going work, on behalf of PSRC, necessary to take agricultural parastatals to the point of sale; support for this would include 12 man-months of TA. Any more involvement of MOA in preparing agricultural parastatals for privatization would have to be financed by PSRC. Specific activities for financing would include the work of a task force and task groups to rationalize the MOA functions, a task manager to manage the rationalization program and 12 staff-months of international TA and 125 staff-months of local technical services to support the rationalization program. 4.6 Rationalization of functions at regional and district levels would involve support for seminars, workshops and activities of the rationalization task force. Moving to the new role of MOA requires a fundamental change in institutional culture and attitudes; hence an orchestrated campaign is called for to explain the rationale and the process of change. MOA management also has to undergo change in order to manage effectively the new role. This component would also support a campaign that would include revision of the MOA pre- service training curricula to reflect the new role of MOA. 4.7 Managing the transition to a new role for MOA requires improvements in the MOA management systems and capacity in five areas: (i) planning and budgeting; (ii) personnel management; (iii) management training; (iv) management information system (MIS); and (v) accounting and procurement. Planning and budgeting would be improved through support for the new planning and budgeting approach, the Rolling Plan and Forward Budget, which emphasizes definition of priority areas and allocation of resources to those areas, away from the functions that will be phased out. Personnel management would be strengthened in forecasting staffing requirements and identifying areas of overstaffing; re-deploying and retraining of personnel made redundant by the functional rationalization program; and 14 Chapter Four motivating and promoting career development. The support for management training would be for senior and middle grade MOA officers in managing the transition to and the new role of MOA; this would be complemented by support for an improved MIS. Support for improved procurement and accounting systems is essential to ensure that project and program implementation is improved and budgeted resources are accounted for. The project would support 6 staff-months of TA for planning and budgeting, 20 staff-months of TA for personnel management, 12 staff-months of TA for MIS as well as in-house local specialist consultants in financing and procurement and in MIS. Additional activities to be financed include workshops, seminars, study tours, short term training and office equipment including computers. (See Annex A for details). 4.8 While the approach to phasing out some functions of MOA is clear, specific activities related to the actual phasing out of each function or for establishing cost recovery mechanisms cannot be accurately predicted at this stage. These would be identified in the course of project implementation. An MOA Rationalization Fund of US$2 million would be included in the project to support these activities. These activities would be identified by the MOA rationalization task force and presented for approval by the Inter-Ministerial Steering Committee as part of the annual action program. Prior to implementation of the annual action program including financing from the MOA Rationalization Fund, MOA and IDA would exchange views and agree on the program. Inclusion in the annual work program and prior IDA approval would be a condition of disbursement for all activities supported by the MOA Rationalization Fund (para. 4.23). Assurances to this effect were obtained during negotiations. 4.9 Policy Formulaton and Implementation (US$7.1 million). The project would provide support in two broad areas: (i) policy analysis; and (ii) longer term institutional strengthening. The work program in the area of policy analysis would include: preparation of sector policies including short and medium term policies and programs; improved policy coordination and feedback through support to strengthen the Policy Analysis and Advisory Committee; improved regulations and incentives to establish an enabling environment for private sector development; and food security policy. During calendar 1993, policy formulation would focus on high priority reform areas for possible inclusion in a proposed Structural Adjustment Credit. Specific items for financing include TA, workshops, seminars, vehicles and office equipment. 4.10 Support for longer term institutional strengthening would include a comprehensive staff training program, and improved work environment and facilities. In addition, policy officers from headquarters will be stationed in each of the 20 regions to improve feedback on policy implementation, strengthen data collection and improve dissemination of new policies. Specific items for financing include seminars and workshops, TA, technical services provided locally through personnel service contracts and in-house local consultants, training, vehicles and office equipment including computers. (See Annex B). 4.11 Agricultural Information Systens and Services (US$10.8 million). The component would focus on strengthening, rationalizing and expanding the agricultural sector information base which is very weak. Priority would be given to supporting the country's capacity to lhe Project 15 produce reliable information at the national, regional and district levels, related to crop and livestock production and productivity, and marketing and trade. Emphasis would be on strengthening institutional capacity for timely analysis and dissemination of agricultural information, and anticipating the marketing information requirements to support an efficient functioning of trading in traditional export crops once they are fully liberalized. Institutional coordination and harmonization of efforts and outputs would be emphasized as well. Accordingly, the project would finance activities related to undertaking five tasks as well as flr longer term institutional strengthening. The five tasks are to: (i) carry out a national sample census of agriculture (the last one was done in 1971/72) which would yield benchmark data on the structure of agriculture; (ii) expand the subsequent surveys to provide adequate data for planning on an annual basis; (iii) carry out a pilot survey in one of the cash crops, using a different methodology, once the census works are completed (this is important in exploring alternative methodologies for the collection of data that are less expensive and more timely); (iv) provide the Crop Monitoring Early Warning System with adequate equipment for rainfall data collection and also improve data collection capacity at the district level; and (v) improve the communication equipment for better collection and dissemination of marketing and trade information by the Marketing Development Bureau of MOA. Specific items for financing include vehicles, motor cycles, bicycles, equipment, improvement of the MOA library with support for more reference books and professional journals, TA, personnel field allowances and training. (See Annex C). Project Costs and Financing 4.12 Total project costs, including taxes and duties, are US$27.2 million (TShs 9.5 billion) with a foreign exchange component of about 50 percent. Taxes and duties amount to about US$0.4 million. The cost estimates are summarized in Table 1, below. Table 1: PROJECT COST SUMMARY Componot Local Pomign Total Local Foreign Total TSh (M) USS (M) Ralorulkbtion of MOA Function 1,455 1,268 2,723 4.2 3.6 7.8 Poliy FonmuLion and 756 1,743 2,499 2.1 5.0 7.1 inpleneration Agricuuuml Information Sysatn 2,131 1,643 3,774 6.1 4.7 10.8 Tota BDmlinc Codat 4,342 4,654 8,996 12.4 13.3 25.7 Prae Ckxbwwie4p I 304 235 5 S39 0.8 0.7 1.5 Total Project Costs 4,646 4,889 9,535 13.2 14.0 27.2 (of which, Taxes and Dutie) 0.4 _ 0.4 16 Chapter Four 4.13 An exchange rate of US$1 = TShs 350 has been used in the estimates. Cost estimates are based on March 1993 prices and reflect recent price quotations and appraisal estimates. Price contingencies are based on an annual international inflation rate of 3.1 percent over the five years of the project. It is assumed that the exchange rates will vary during the period to adjust for the difference between local and foreign inflation. Physical contingencies have not been included, since the bulk of the project is supporting training and technical assistance whose appraisal estimates are expected to remain stable. 4.14 The IDA credit would finance about 90 percent of project costs (US$24.5 million), net of taxes and duties. GOT would finance the remaining 10 percent. IDA financing includes a PPF of US$750,000. Procurement 4.15 The project procurement methods are shown in Table 2. About 34 percent of the estimated project costs is allocated for TA and training. The provision for vehicles and equipment accounts for roughly 19 percent. The remaining 47 percent is allocated for incremental operating expenses, MOA Rationalization Fund, workshops, and seminars. All procurement of goods and consulting contracts would follow World Bank guidelines. The World Bank's sample bidding documents for goods and consulting contracts would be used. 4.16 Technical Assistance and Training. The appraisal mission reviewed and classified consultancy services into two broad categories: (i) simple services that could be undertaken using skills available in the country but outside the Civil Service establishment; and (ii) more complex services that need to be undertaken with skills available internationally. Details of the services for both locally and internationally available skills are provided in Annexes A through C; a summary is provided in Annex H. 4.17 The category of simple services for which skills are locally available includes project administration which accounts for 228 out of a total of 341 staff-months. Personnel to undertake such services would be hired locally on fixed-term contracts ranging from one month to five years. The hiring of these consultants would follow World Bank guidelines. The hiring of such personnel would be facilitated by the existence of the Tanzania Association of Consultants (TACO) which keeps a directory of individual consultants and consultancy firms residing in or registered in Tanzania and a record of their performance. The Executive Committee of TACO assured the appraisal mission that, in line with its constitution, TACO would advise the GOT and donor institutions, when so requested, on the selection of the most suitable consultants to carry out specific consultancy services in the way of providing GOT a long list of consultants. TACO has more than one hundred members (individuals and firms) but also keeps a record of an even higher number; it has in the past received financial support from the UNDP/World Bank project aimed to build consultancy capacity in sub-Saharan Africa. The current President of TACO is the President of the Federation of African Consultants. 4.18 Internationally recruited consultants would also be hired, under the project, following the World Bank guidelines. The information services of TACO would facilitate foreign firms or individuals interested in entering a joint-venture with local individuals or firms. The Project 17 4.19 There would be about five major packages of consultancy services to be procured internationally. Details of these packages as well as their procurement timetable are given in Annex H. Agreement was obtained during negotiations that the technical assistance proposals would be prepared and the letters of invitation packages (consisting of TORs, and short lists) for each proposal would be reviewed by IDA before credit effectiveness. In addition, during negotiations, the GOT provided IDA for review a draft general procurement notice, a draft standard letter of invitation and draft standard contracts for hiring of consultants as well as draft terms of reference for technical assistance and studies. 4.20 Training is of five types: (i) on the job training to be carried out in the context of studies undertaken within MOA; (ii) local training using local institutions; (iii) personnel service contracts for governnent personnel on leave of absence from the Civil Service; (iv) study tours; and (v) short and long term training overseas. The GOT has expressed interest in cooperating with FAO to manage this complex training program as well as the TA for the agricultural information component; the FAO has been assisting the GOT in both these areas, with IDA funding, in the past with considerable success. At negotiations, GOT provided adequate details to support the sole source contract, estimated at about US$6.0 million. The TA would include a project training officer, and TA for the agricultural census and subsequent annual surveys, and for the collection and processing of market information. 4.21 Goods. The total requirement for vehicles is estimated at US$2.5 million. They would be procured on the basis of international competitive bidding (ICB) except for about 12 vehicles urgently required for the agricultural census; the latter would be procured through the UN Inter-Agency Procurement Services Office or through international shopping in an aggregate amount not to exceed US$270,000. With respect to procurement of other goods, contracts estimated at US$50,000 or more would be bid by ICB. Contracts for less than US$ 50,000 would be bid by local competitive bidding (LCB), with the aggregate amount not to exceed US$370,000. Under ICB, domestic manufacturers bidding for goods would be allowed a margin of preference of 15 percent over the CIF price of competing foreign bidders or the existing rate of import duty, whichever is lower. 4.22 Procurement Review. All contracts for goods procured under ICB would be subject to IDA prior review procedures. All other contracts would be subject to IDA post review procedures. All consultancy contracts, with firms, valued at the equivalent of US$100,000 or more will be subject to IDA prior review procedures. Prior review procedures would apply regardless of the value of contracts with respect to terms of reference, single source contracts, critical assignments and contract amendments valued at more than US$100,000 or that raise total contract value above US$100,000 equivalent. For individual consultants, simplified review procedures would apply as per World Bank guidelines. In addition, before the first contract below US$100,000 is awarded, IDA would still review all stages of consultants' contract. All post review contracts for goods and consultants would be subject to sample review of one in five. GOT would also promptly report on contract awards and furnish to IDA quarterly reports giving updated information on bidding packages and contracting. 18 Chapter Four Table 2: PROCUREMENT METMOD (US$ '000) ICB LCB Ol hrn Non-IDA | Total 1. Good_: 2,500 300' 1.1 (270) 280 2,300 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ~~~~[20DJ 2,022 411' 1.2 Equipmat (1,820) (370) 243 2,433 ______ ~~[441 _ _ _ 5,526- 2. Tecllok"l Asdstsce (5,526) - 5,526 3,925d 3. TrInin g (3,925) 3,925 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ [~~ ~~1 54J 4. OKceilaneotm _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1,6264 4.1 Wodops and Semmin (1,626) - 1,626 4.2 MOA RQtorulization Fund 2,031l (2,031) - 2,031 3,902 4.3 wrwmeal Opraing Co=ts (6,626) 2,276 8,902 [51J _ _ _ _ _ 4,522 411 22,310 Totl (4,070) (370) (20,004) 2,79 27,243 1441 (7061 Note: Figure in p _nthee represent the aunts to be rumuad out of the prposed IDA Credit, of which the figur in brecke reprent the amounts to be fuanced out of the PPF Advance under P-782-0-TA of Decenber 29, 1992. All prcurment would be made in accordance with the provisions of the World Bank ludelines. * Reopreens the portion to be financed by GOT. As far as posible, the preferrd mdhod of prcurnt would be through the UN-LkPSO. * All technicl uiance procument would be in accowance with the World Bank Guidelines: Uns of Conrkwt by World Bank Borrowers and by the World Bank u Executing Agency (Washington D.C., Aug"ut 1981). 4 As part of the Anual Work Program, MOA would submit detailed annual training and study tour programn for IDA's review ond appoval. * Prcurement under as wel as disbursanent out of the MOA Rationalization Fund would be ubject to prior review and approval of the Annual Work Prgram by IDA. The Project 19 Disbursenents 4.23 The proposed project is expected to be implemented in five years. The disbursement forecast given in Annex F extends over an eight year period, consistent with the standard disbursement profile for all agricultural projects in Tanzania. Disbursements of IDA funds would be made against major categories as shown in Table 3. Incremental operating costs include incremental salaries, fuel for vehicles and rent for buildings. Vehicles and equipment category includes their spare parts. IDA's contribution to incremental operating costs would be on a declining percentage basis to allow Government to build up gradually to its post- project funding responsibilities. A condition of disbursement for the MOA Rationalization Fund would be prior IDA approval of proposals within the framework of the annual work programs (para. 4.8). A condition of disbursement for the activities in the training category would be prior IDA approval of the relevant comprehensive annual training program. Disbursements of all expenditures under the project would be made against full documentation except as outlined below. Reimbursement of eligible expenditures in both local and foreign currency would be made solely on the basis of statements of expenditure (SOEs) in respect of contracts for goods and services valued less than US$50,000 equivalent operating costs and local training programs. All documentation related to such expenditures would be retained in a central location by the Project Secretariat, and made available for IDA's review upon request. Table 3: MAJOR DISBURSEMENT CATEGORIES Amount of % of Expenditure Category Credit to be Firnced Allocated (all excluding taxes and duties) (USS Million) 1. Vehicls and Equipnent 4.0 100% of foreign 90% of local 2. Worishop. and Seminars 1.4 100% 3. Technical Auitance and Studies 4.7 100% 4 Training 3.4 100% 5. MOA Rationalization Fund 2.0 100% 6. Incremenl Operating Costs 6.0 100% of foreign 100% of local during Yean I and 2 60% of local thereafter 7. Refund of PPF Advance 0.7 Anount due 8. Unallocated 2.3 Total 24.5 20 Chapter Four Accountdng and Audits 4.24 A single set of consolidated accounts would be prepared for the project. Responsibility for preparing the project accounts would rest with the project accountant who would be appointed for this purpose (see terms of reference for project accountant in Annex E). The project accountant would be appointed before credit effectiveness and would be located in the office of the project coordinator. He or she would obtain information from all MOA Departments implementing the project and incorporate this information in the consolidated accounts. The accounts would be audited by independent auditors satisfactory to IDA; agreenent to this effect was obtained during negotiations. A certified copy of the accounts, together with the auditor's report, would be submitted to IDA within nine months of the closing of the fiscal year, including a separate opinion on the records and accounts used to support disbursement against SOEs. 4.25 A foreign exchange Special Account would be established for the project with a commercial bank through the Bank of Tanzania on terms and conditions satisfactory to IDA. Upon credit effectiveness, an initial deposit of USS 1.5 million equivalent would be deposited in the account, representing about four months of IDA disbursements. Operation of the Special Account would follow the procedures of IDA and the account would be replenished on the basis of regular monthly applications from MOA documenting expenditures from the account. S. ORGANIZATION, MANAGEMENT AND IEPLEMENTATION 5.1 The existing organizational and management structures of the ministry would be used to implement the project (Annex I). The project would therefore be implemented under the overall direction of a Steering Committee chaired by the Principal Secretary (PS) of MOA and consisting of the four MOA Commissioners and the Director of the Personnel and Administration Department. Hence, before carrying out any significant change in the structure of MOA, assurances were obtained during negotiations that the Government would first consult with IDA. Because the project is closely linked to broader public reform programs of the civil service, parastatal privatization and planning and budgeting which are implemented by outside institutions, these institutions would be represented on the steering committee. These are the Civil Service Department, the Parastatal Sector Reform Commission (PSRC), the Planning Commission, the Central Bureau of Statistics (CBS) and the Ministry of Finance. The committee would therefore be called an Inter-ministerial Steering Committee (ISC) and would have the responsibility for overall policy guidance, resource allocation and review for the project's implementation. An MOA Advisory Technical Committee (ATC) would provide technical guidance as well as take leadership of the work of the various task forces in the project. The ATC would be chaired by the Commissioner for Planning and Marketing of MOA and would consist of the Assistant Commissioners of MOA and a representative from the CBS. The two committees directed project preparation and this worked well. 5.2 The two committees would be serviced by a Project Secretariat attached to the office of the Commissioner for Planning and Marketing of MOA and administered by a Project Coordinator (PC). The PC would be assisted by.a project accountant; a project procurement officer; a training coordinator who would coordinate all the aspects of training for the project; a task manager for the rationalization of the MOA functions; and a project administrative officer (see their terms of reference in Annex E). The PC would serve as the Secretary of the ISC and the ATC, and would hence organize and take minutes of the meetings of these two committees. The Project Secretariat would be responsible for the day-to-day administration of the project including accounting, procurement, disbursement and monitoring. The Government appointed the PC before negotiations; he participated in the negotiations. Appointment of the training coordinator, project accountant and the MOA rationalization task manager are conditions of credit effectiveness. 5.3 The component in support of the rationalization of the functions and strengthening the management of MOA would be implemented under the direction of the Rationalization Task Force (RTF) which would set priorities, assign roles and responsibilities and monitor progress during implementation of the component (see details in Annex A). The RTF would be assisted by Technical Task Groups (TTGs) and consultants who would prepare detailed plans for phasing out individual functions of MOA or plans for cost recovery measures. The TTGs would be established for various sub-sectors including crop services, livestock services, irrigation, cooperatives, rationalization at regional and district levels, and strengthening management systems of MOA (for details, see Annex A). The rationalization task manager would provide full time support to the activities of the RTC and the TTGs and would serve as the Secretary of the RTF, responsible for organizing and taking minutes of its meetings. While the rationalization activities would be implemented by the relevant organizational units 22 Chapter Five of MOA, the responsibility for coordinating implementation would be with the Project Preparation and Monitoring Bureau of MOA. The strengthening of the management systems and capacity of the MOA would be implemented by the following respective organizational units of MOA: (i) personnel management and the publicity campaign for the new mission of MOA - Personnel and Administration Department; (ii) management training - Training Unit; (iii) management information system - Planning and Marketing Division; and (iv) accounting and procurement strengthening - Finance and Accounting Unit. The ISC, ATC and RTF have already been established by Government. 5.4 The policy formulation and implementation component and the agricultural information systems and services component would be implemented by the Planning and Marketing Division of MOA. The Division would collaborate with the CBS, through a memorandum of understanding, in the implementation of this component particularly in the undertaking of an agricultural census and subsequent annual surveys. During project negotiations, the Government submitted to IDA a signed memorandum of understanding between MOA and CBS. 5.5 For each component and for the project as a whole, by March 31 of each year beginning 1994, annual work programs would be produced, endorsed by the ISC, and reviewed and agreed to by IDA before the beginning of the fiscal year; assurances to this effect were obtained during negotiations. For the first year of the project, the work programs (annual action plans) for the rationalization of MOA functions and for policy analysis were provided to IDA for review already. 5.6 The management of the training program for the project and the hiring of TA for the agricultural information component would be implemented in cooperation with FAO, in line with past practices. Local training would be undertaken by local institutions including the Eastern and Southern Africa Management Institute (ESAMI), Sokoine University of Agriculture and the University of Dar es Salaam. During negotiations, assurances were obtained that all training opportunities and awards would be based on criteria acceptable to IDA and selections for overseas training would be reviewed and approved by IDA. 5.7 Given the special nature of on-the-job training and personnel service contracts, they need to be closely monitored. Hence, agreemrent was obtained during negotiations that the Government would carry out, jointly with IDA, a review of the experiences with and effectiveness of on-the-job training and personnel service contracts no later than March 31, 1995. 3.8 Mid-term Review. At the end of the second year of project implementation, a mid- term review (MTR) would be undertaken jointly by the GOT and IDA. The MTR would focus on progress made in implementing the various components of the project as specified in the detailed description of the components in the annexes. Since the main emphasis of the project is technical assistance and training, the MTR would evaluate the process by which the TA was recruited and managed, and assess the extent to which national counterparts have been trained to take over. Similarly, the MTR would evaluate the training program focussing on the process by which staff for training have been selected, training provided and staff Organization, Management and Implementation 23 redeployed after training. The experience with and effectiveness of on-the-job training and personnel service contracts would also be evaluated. The criteria for evaluating the performance of the TA and training programs was discussed and agreed with IDA at negotiations. 5.9 The MTR would also review the steps taken to implement: (i) the key recommendations arising from the studies financed under the project; and (ii) action plans for phasing out MOA functions designated for the private sector and cost recovery measures for the MOA functions that are to be provided at cost. Agreement was obtained during negotiations that: (i) the MTR, covering the above scope, would be conducted two years after credit effectiveness, and in any case no later than June 30 1996; and (ii) three months prior to the MTR, Government would prepare and furnish to IDA reports as shall be needed to undertake the review. 5.10 Reporting and Project Monitoring Arrangements. Reports on project implementation would be prepared by the implementors of the components according to a format provided by the PC. The PC would consolidate the component reports into a project report for review and action by the ISC. These reports would be prepared on a quarterly basis, hence requiring the ISC to meet at least once every quarter. The quarterly reports would be submitted to IDA for information and any necessary action within two months of the completion of the quarter each year; the first of such reports would be submitted three months after credit effectiveness. During negotiations, agreenent was obtained on these project reporting and monitoring arrangements. 6. BENEFITS, RISKS AND SUSTAINABILITY Benefits 6.1 The project benefits would accrue from four sets of activities. First, the role of MOA would be refocused on the provision of public goods and an enabling enviromnent for the private sector. Second, successful implementation of this project would set up MOA as a pioneer participant in the forthcoming Civil Service reforms which are geared to enhancing the pay, morale, performance and productivity of the government employees. Third, MOA's policy formulation and implementation capacity would be strengthened, enabling the accelerated implementation of key agricultural reforms in export marketing and other subsectors. And fourth, the agricultural information base, systems and services would be strengthened, facilitating public sector monitoring and regulation of agricultural markets, and the planning and management of investments and other economic activities in the private sector. These activities would contribute to sustaining agricultural growth, improving food security and increasing foreign exchange earnings. Risks 6.2 A project risk relates to the Government commitment to implement the IDS and to effectively utilize technical assistance to strengthen institutional capacity. Government commitment was tested during Government-IDA joint preparation of the institutional development strategy and during preparation of the project by Government and local consultants, and during appraisal; it was found strong at technical and management levels. The strength of Government commitment was further demonstrated by the Government's letter of institutional development objectives and strategy addressed to IDA. Sustainability 6.3 The project would improve MOA's analytical base for policy management and enable it to concentrate on providing only the critical public goods and creating an enabling environment for the private sector. This would make MOA become cost-effective and efficient while improving its effectiveness in promoting private sector development. Both outcomes would enhance the sustainability of the project benefits described above. Recurrent Cost Implications on the Budget 6.4 Of the estimated project cost of US$27.2 million, 32 percent or US$8.8 million represents incremental recurrent costs. Under the proposed financing plan, GOT would finance US$2.2 million (26 percent) of the incremental recurrent costs. When the tax and duty elements amounting to US$0.4 million are excluded, the effective GOT funding of the incremental recurrent costs would be US$1.8 million. Considering the budgetary constraints of GOT, the proposed disbursement pattern provides for 100 percent financing during the first two years of the project and 60 percent for the remaining years. Thus, there would be no 26 Chapter Six immediate drain on the GOT budget. By the third year of the project, it is reasonably expected that the savings resulting from proposed rationalization of MOA functions would be available to finance the proposed 40 percent portion of the incremental recurrent costs. At current price levels, the average annual incremental recurrent cost of about US$0.6 million starting from the third year, works out to 0.2 percent of the national recurrent budget and 4.7 percent of MOA's recurrent budget. 6.5 A proximate indicator of the budget burden after project completion is the estimated incremental recurrent costs in the last year of project implementation as a percentage of the recurrent budget of 1992/93, all in 1992/93 prices. Such recurrent costs work out to US$1.5 million (comprising primarily US$1.2 million for the expanded and pilot agricultural surveys), or 0.4 percent and 11.8 percent of the national and MOA's recurrent budgets, respectively. The inflow of increased savings from MOA rationalization and other project objectives would finance the incremental recurrent costs. Further, less cost intensive agricultural surveys could be expected to be in place by then, thus substantially reducing the required volume of incremental recurrent costs. Moreover, the project's support for establishing an enabling environment for private sector development would contribute to a growth in agricultural incomes, and consequently, Government's tax revenue base. Thus, the net project impact on the government budget would be a positive one over the long term. 7. AGREEMENTS, ASSURANCES AND RECOMMENDATION 7.1 The following are conditions of credit effectiveness: (a) provision to IDA for review of technical assistance proposals and the letters of invitation packages (consisting of the TORs and short lists) for each proposal (para. 4.19). (b) appointment of the project training officer, project accountant and the MOA rationalization task manager (para. 5.2); and 7.2 The following agreements were obtained during negotiations: (a) the Government would implement the program contained in the letter of IDOS (para. 4.2); (b) accounts would be maintained for the project as a whole and would be audited by a firm of independent auditors; and the audited accounts would be submitted to IDA within nine months of the fiscal year, including a separate opinion on the records and accounts used to support disbursements against SOEs (para. 4.24); (c) the Government would exchange views with IDA prior to carrying out any significant changes in the structure of the MOA (para. 5.1); (d) an annual work program including: (i) a comprehensive training program consisting of at least on the job training, study tours and local and international training, (ii) a program for the rationalization of MOA functions and (iii) a program for policy analysis, would be provided to IDA by March 31 of each year, together with analysis of the output (results) to the previous year's program (para. 5.5 and Annex B.1); (e) all training opportunities and awards would be based on criteria acceptable to IDA, and selections for overseas training would be reviewed and approved by IDA (para. 5.6); (f) the Government would carry out jointly with IDA, a review of the experiences with and effectiveness of on-the-job training and personnel service contracts no later than March 31, 1995 (para. 5.7). (g) a mid-term review would be conducted two years after credit effectiveness and in any case no later than June 30, 1996; three months prior to the review, the Government would prepare and furnish to IDA such reports as shall be needed for review (para. 5.9); and 28 Chapter Seven (h) quarterly project implementation reports would be submitted to IDA for information and any necessary action, within two months of the completion of the quarter each year (para. 5. 10); 7.3 The following are conditions of disbursenent: (a) disbursement for the activities of phasing out MOA functions using the MOA Rationalization Fund would be effected only after IDA has approved the related annual work program (paras. 4.8 and 4.23); and (b) disbursement for the activities in the training program would be effected only after IDA has approved the relevant comprehensive annual training program (para. 4.23); Recommendation 7.4 With the above assurances, agreements and conditions, the proposed project would be suitable for an IDA credit of SDR 17.3 million (US$24.5 million equivalent) to the Government of The United Republic of Tanzania. 29 ANNEX A. RATIONALIZATION OF MOA FuNCFIoNs 1. The guiding principle of the component is to rationalize government functions, getting out of functions better served by the private sector and strengthening the remaining core functions. The core functions all relate in one way or another to creating an enabling environment for private sector agricultural production and income growth. 2. There is a high degree of support and consensus within the Ministry of Agriculture (MOA) for moving in this direction, as evidenced during the Agricultural Sector Review, in the ASMP preparation document, and during the appraisal mission. How to go about the transition from where they are to where they want to be is not that clear. Support for this transition process is at the heart of ASMP. 3. Strengthening four of the principal MOA core functions are covered by other projects (research and extension) or by other components of ASMP (policy formulation and implementation, and agricultural information). Consequently, this component will mainly target strengthening management systems that support the other functions and improving implementation capacity for all MOA programs. 4. The general action areas are well defined (e.g., support for MOA's role in parastatal divestiture, spinning off about 48 functions identified by the preparation team, crafting MOA rationalization strategy and actions in light of general civil service reform, proposing specific strategies for public/private cooperation in about 20 functions identified, etc.). In addition, specific activities within each sub-component and the resource requirements for carrying them out have been outlined. New opportunities will arise for phasing out public sector involvement or for public/private cooperation as the project progresses. The implementation models for phasing out the activities already identified will be applied to the new functions that will be identified throughout the life of the project. SUB-COMPONENTS 1. Parastatal Divestiture 5. Setting priorities, preparing parastatals for privatization, and implementing actual divestiture of agricultural parastatals are critical elements of rationalization of MOA functions. However, the overall responsibility belongs to PSRC-MOA has already done most of what it can in defining options and priorities. These actions therefore do not belong to ASMP, but to the general parastatal reform effort spearheaded by the Parastatal Sector Reform Commission (PSRC) except in situations where the PSRC delegates to MOA and provides resources to prepare the agricultural parastatals for privatization. 6. Communication between the MOA and PSRC needs to be strengthened and their complementary roles and responsibilities clarified. MOA/PPMB has done a lot of work to date, knows the parastatals inside and out and has already had some parastatals privatized, but its role must change. The in-depth knowledge and the modest experience in undertaking 30 AnnexA privatization exercises must be deployed to support PSRC to meet its statutory responsibilities for implementation of divestiture. MOA can continue to prepare parastatals for privatization on a case by case basis as delegated to it by PSRC. In addition, there will always be a role for MOA in determining policy for the transition period as the parastatals are sold off (e.g., determining national seeds policy even as TANSEED is divested), and in monitoring status of agricultural parastatals as part of monitoring sector programs and performance. Strengthening this role is covered under the ASMP policy component. MOA must get out of micro- managing parastatals as this role is being taken over by the management and Boards of the parastatals themselves. a. Proposed strategy: 7. Conduct an initial two-day workshop for MOA/PPMB and PSRC for setting up systematic exchange of information and clarification of the respective roles of each organization. The products of the workshop would be a clearer understanding of roles and responsibilities and a draft action plan for systematically deploying PPMB knowledge to assist PSRC in preparing parastatals for privatization and in privatization itself. B. Technical assistance would be required in the form of an agricultural privatization expert for 12 person-months to support MOA in reviewing the operational and financial status of agricultural parastatals, prepare studies on divestiture options, and carry out detailed analyses of parastatals in preparation for their divestiture, as delegated to it. This TA is necessary as an interim arrangement to support a smooth transition from a situation where MOA was responsible for preparing and privatizing agricultural parastatals to one in which PSRC, a new and young organization, builds up capacity to take over that role. The terms of reference are as follows: (i) review the current status of PPMB information on agricultural parastatals and propose actions to remedy any gaps with regard to its eventual utilization in divestiture process; (ii) advise MOA and PSRC on optimal arrangements for systematically incorporating MOA information on agricultural parastatals into divestiture procedures of PSRC; (iii) support preparation and privatization efforts for the on-going work for which the PSRC has delegated divestiture responsibilities to MOA; and (iv) train MOA staff in financial analysis and privatization strategies in line with the forthcoming procedures and guidelines for privatization expected to be issued soon along with the new Public Enterprises Act. Additional short-term TA will be needed in the form of contracts for preparing agricultural parastatals for privatization, but this will be financed by PSRC. The Rationalization of MoA Funcdons 31 b. Budget 9. Implementation of the sub-component will be managed by the Project Preparation and Monitoring Bureau (PPMB). 1. Start up workshop Workshop facilitator 7 days x $200 1,400 Materials, facilities 1,000 OJT: 1 task $170 x 20 participants 3,400 Short-term consultants (1 MOA and 1 PSRC) to be resource persons for workshops and take responsibility for report on outcomes and follow up [US$ 1,500 x 21 = 3,000 Sub-total 8,800 2. Technical Assistance Internat. privat. specialist 12 months x 15,000 180,000 3. Vehicles to facilitate access to parastatals Two 4WD pickups 2 x 25,000 50,000 4. Desktop Pcs and software 2 x 5,000 10,000 Power stab. and printer 2 x 5,000 10,000 Laptop and printer 1 x 5,000 5,000 Fax I x 800 800 Photocopier 1 x 6,000 6,000 Sub-total 31,800 Total Parastatal Divestiture Support 270,600 c. Performance Indicators: 10. The ultimate indicator of this sub-component will be the number of parastatals divested. Since this will depend on the work of the PSRC and general government policy, ASMP project performance will be measured by the following: i. Preparation of clearly specified MOA role and responsibilities vis a vis PSRC for preparing parastatals for sale, and for systematically incorporating MOA information into the divestiture process. (Year 1) 32 AnnexA ii. Systematic incorporation of MOA data and studies within PSRC activities. Performance to be evaluated during the mid-term and final project reviews. (Years 3 and 5). 2. Rationalization of MOA Functions (Spinning off MOA services to private sector delivery) 11. There is consensus that a number of MOA services should be phased out and passed on to the private sector (e.g., heifer farms, sale of veterinary drugs, cattle dips, distribution of agricultural chemicals and inputs, etc.). The concern is that this be undertaken through a rational process in which minimal disruption to producer takes place-it cannot simply happen by decree from one day to the next. 12. Although MOA has the means to phase out a few of the functions without support from ASMP, the objective of ASMP support is to focus attention, provide a systematic framework, reward participation, set definite action timetables, and facilitate actions necessary to bring about the planning and implementation of this transition. 13. There are two sides to the spinning off coin: getting MOA out and enticing the private sector to go in. Both are necessary, neither is automatic. All of the various services represent complex activities in which the actions and their sequencing in phasing out are all different. For example, privatizing heifer farms must follow a different course than phasing out MOA delivery of veterinary drugs. Some ideas on how to go about phasing out these services exist in the MOA, but these ideas must be consolidated and operationalized systematically through a participatory process like that used in the ASMP project preparation. Learning from experience as implementation progresses and taking necessary corrective action is critical and a key aspect of the project by providing financing to support this process. a. Proposed strategy: 14. Implementation of the rationalization activities would be undertaken by the relevant organizational units within MOA. But coordination of implementation would be the responsibility of the Project Preparation and Monitoring Bureau of MOA. Rationalization would be directed by a Task Force, assisted by Technical Task Groups. Rationalization Task Force 15. A Rationalization Task Force would be created to set priorities, develop action plans, assign roles and responsibilities, and monitor progress during implementation. Makeup of the task force would be determined by the Government prior to project implementation, but should be broad enough to ensure that the activities are fully integrated into the other components of the project, particularly policy formulation and implementation. The terms of reference for this task force are as follows: (i) Prepare an overall action plan identifying priority services for phasing out government delivery and establish timetables for action. The 48 functions The Rationalization of MoA Functions 33 identified by the project preparation team will constitute the initial set of functions from which ten priorities will be selected for attention during the first year of the project. (ii) Assign roles and responsibilities for carrying out tasks identified in the overall plan, specifying the makeup and operating procedures for Task Groups covering various sub-sectors including (a) livestock services, (b) crop services, (c) cooperative development and management, (d) irrigation, and (e) alternatives for public/private cooperation and cost recovery (discussed in more detail below). A sixth Task Group will report to the Task Force, charged with planning and overseeing the rationalization and strengthening of MOA management systems and capacity. (iii) Review and approve proposals prepared by the task groups or individuals assigned the task of preparing strategies and action plans for phasing out individual functions (e.g., cattle dips, sale of veterinary drugs, heifer farms, marketing of agricultural chemicals, etc.). (iv) Conduct annual reviews of progress on the overall rationalization plan, identify constraints, and propose solutions. All 48 functions are to be targeted during the project. (v) Identify and implement a strategy for the continuous identification of new functions or services that can be passed on to the private sector, or that can be financed through cost recovery mechanisms or public/private cooperation. (vi) Take responsibility for identifying key stakeholders who need to be informed of MOA rationalization progress and ensure that timely information is disseminated to them. The task force would follow a participatory process similar to that used during project preparation, initiated through an implementation start-up workshop in which the rationalization objectives would be reviewed, roles and responsibilities would be established, and the draft overall action plan would be developed. Technical Task Groups 16. The task groups would have the responsibility of preparing detailed plans for phasing out individual services within their technical areas. A need for such task groups has already been felt for the phasing out or joint operation (with cost recovery arrangements) of livestock services, crop services, research, irrigation, and cooperatives. For example, the task group on livestock services would have responsibility for preparing a plan on phasing out government heifer production. This would include the following: (i) preparation of an inventory of all heifer production installations and activities; 34 Annx A (ii) identification of installations or activities that should be eliminated immediately and those that should be consolidated during the transition period; (iii) identification of legal, regulatory, and policy changes that should be carried out (e.g., increase the price of government heifer sales to the market price, identify constraints to private sector entry into this activity, etc.); (iv) presentation of a strategy and timetable for phasing out heifer production at the remaining installations; (v) determination of operational arrangements for working through PSRC on the sale of government assets; (vi) identification of training needs and propose a training program for individuals who will take over heifer operations (e.g., technical areas and basic business practices). 17. Each of the functions identified for phasing out would follow a similar model. The task groups would receive some on-the-job training remuneration, and short-term consultants (MOA staff on leave of absence or outside individuals) would prepare specific terms of reference and other inputs for the functional spin off action plans. For example, a task group on research services would look at cost recovery mechanisms in the context of the Research Master Plan. The Research Master Plan was designed primarily thinking of donors, to have a solid, national research program to which individual donors would contribute, rather than a series of disjointed individual donor-funded projects. The Master Plan does not address sufficiently the long-term funding needs or financial sustainability of the research system. The Research Department has prepared a series of proposals on funding arrangements or other cooperative ventures with the private sector. These have legal and other organizational implications for MOA that need to be analyzed. Implementation of all of these needs more work if they are to be realized. 18. Another notable area is that of the Cooperative System. As the cooperative system restructures it will become one of the principal private sector components of the agricultural sector. As such, special attention should be given to finding appropriate operational modalities for collaboration with government services, financed by the cooperatives as private entities. Similarly, there are some services currently rendered by MOA to the cooperatives that should go to the private sector, for example, auditing. The experimentation with privatization of services or cost recovery mechanisms in this regard could be applied to other departments of MOA and other ministries. Radonalklaon Task Manager 19. A Rationalization Task Manager would be hired for the entire project period to assist the Project Coordinator in coordinating implementation of the rationalization component. The Rationalization of MoA Funaions 35 However, responsibility for coordination of implementation would be with the Project Preparation and Monitoring Bureau. The rationalization task manager would provide exclusive dedication to supporting the activities of the Task Force and the task groups, and coordinate the activities of short-term consultants. The task manager will have extensive experience in strategic management and organizational development in agricultural institutions, including familiarity with project and program management, policy implementation, and divestiture. The individual should have a strong familiarity with the mission, objectives, and programs of MOA, and will: (vii) provide guidance to the Rationalization Task Force and serve as the secretary for its deliberations; (viii) orient the groups working on rationalization to define a clear focus and coherent goals, And bring the individual activities together in a long-term unified approach; (ix) coordinate the activities of the various task groups and individual consultants, according to the action plans approved by the task force; (x) prepare reports and provide for their distribution to all necessary parties ensuring adequate information flows between task groups and components of the project; (xi) participate in the design and implementation of individual action plans or related technical studies as determined by the task force and task groups; (xii) develop a training program for MOA staff on topics related to the rationalization process, and coordinate training activities for groups or individuals taking over the spun off MOA functions; and (xiii) coordinate the annual rationalization review and planning workshops as well as preparation for the mid-term and final project reviews. Short-erm Technical Assistance 20. Nine months of periodic short-term international technical assistance by an institutional development specialist will be needed to provide external guidance and support for the task manager and the rationalization task force. This individual will review the strategies adopted, analyze progress and problems, and carry out action training activities in topics identified by the task force (e.g., strategic management, implementation of rationalization policies, financial sustainability options, stakeholder analysis, etc.). 36 Annex A Fund to fiwance studies and progrva phase out 21. A detailed review of individual functions for phasing out will be necessary. But due to lack of perfect foresight and information, the appraisal mission was not in position to predict the exact nature of the work required for each function. Similarly, the mission could not predict resources that would be required to support some programs of functional phase out. Therefore a fund of $2 million has been set aside that would be committed and disbursed against detailed annual plans of necessary reviews/studies of functions for phasing out or cost sharing programs. Study tours 22. Five study tours would be financed to allow participants to observe successful experience in phasing out similar government services in agriculture. b. Budget 1. Implementation start-up workshop Workshop facilitator 15 days x $ 200 3,000 Materials, facilities 1,000 OJT: 1 task $170 x 30 participants 5,100 Sub-total 9,100 2. Task Force Activities OJT: 6 tasks/yr, $170 per task, 20 members, 5 years 102,000 3. Annual Planning and Review Workshops For each: Workshop facilitator 15 days x $ 200 3,000 Materials, facilities 1,000 OJT task $170 x 30 participants 5,100 Sub-total 8350 x 4 33,400 4. Task Group work OJT, 6 tasks/yr, 170 per task, 10 members/Task group, 6 task groups, 5 years 306,090 5. Short-term consultants (MOA) 1500/month, 5 mo/task group, 5 years (125) 187,500 6. Task Manager 60 months x $3,000 180,000 7. Short-term international TA 9 mo. x 15,000 135,000 lhe Rationalization of MoA Functions 37 8. Desktop Pcs and software 2 x 5,000 10,000 Power stab. and printer 2 x 5,000 10,000 Laptop and printer 1 x 5,000 5,000 Fax I x 800 800 Photocopier 1 x 6,000 6,000 Sub-total 31,800 9. 2 4wd vehicles x 25,000 50,000 10. Training 4000/year/task group for locally provided short courses in support of those taking over services 120,000 11. Study tours 5 x 10,000 50,000 12. Fund to support implementation of annual plans 2 million Total Rationalization Sub-Component 3,204,890 c. Performance Indicators Year 1: i) Establishment of Task Force and Task Groups; ii) Completion of the general task force action plan including identification of the top priorities for preparation of phase out plans; iii) Detailed proposals completed by each sub-committee for phasing out a total of ten functions and operations initiated in all of them; iv) A process of identification of new functions to be eliminated or operated jointly with private sector is in place, and five new functions have been identified in addition to those in the project preparation report; v) The report of the second annual planning and review workshop identifies progress, problems, and proposed solutions. Year 2: (In addition to iii - v above, repeated each year) Ten functions of the original list of 48 have been totally phased out. Civil Service reform group recognizes MOA as leader in redefining role of government and eliminating functions accordingly. 38 Anx A Years 3 - 5: Fifteen additional functions are completely phased out, or funding through cost recovery, public/private cooperation is in operation. 3. Implementation of New Mission and Structure 23. The new mission identified in the Institutional Development Strategy and outlined by the preparation team represents a major overhaul of MOA and a new philosophy and direction for the Ministry's operations. It is important that aU levels of the MOA share an appreciation of the new mission and its implications. In addition, it is necessary that MOA management systems reflect the new objectives of the Ministry, provide incentives, and reward performance accordingly. 24. MOA must take the lead in civil service reform so that i) it can decide for itself along technical lines where to retrench, ii) the general civil service reform can learn from the MOA experience and experimentation. 25. Changing MOA systems to facilitate effective management and provide incentives and reward performance in accord with the new mission will be a difficult, long-term process. To a large extent, MOA is dependent on system-wide civil service reforms that may take time to implement. Experience has shown, however, that meaningful reform can take place through an incremental process in which changes in one department or agency lead to demand fur system-wide changes and show the way that should be taken. This is the challenge fur MOA. 26. Nothing that ASMP does will be incompatible with civil service reform, but will contribute to the above goals and work in close collaboration with the civil service department. Even without any change in the civil service, there is a lot that can be done within MOA to update human resource procedures and improve the allocation and performance appraisal of its staff. a. Proposed strategy 28. The activities carried out under this sub-component will be overseen by the Rationalization Task Force and managed by its sub-committee on rationalization of MOA management systems. Funding for the activities of those groups are covered in that sub- component. The present sub-component covers the additional activities described below. a. Undertake an information campaign that targets the internal public of the Ministry and key external groups-both government resource providers and private sector clients of MOA services. Members of the MOA rationalization task force will work with the MOA Training Unit to define a program of information and seminars to disseminate the new mission of the Ministry, explain why the actions are being taken (e.g., spinning off activities, strengthening policy formulation and The Rationalization of MoA Functions 39 implementation), and elicit comments and suggestions on how the Ministry can more effectively carry out its mandate in creating an enabling environment for private sector agricultural production and income growth. b. A local public information consultant will be hired on a part-time basis for six months to advise the group on public information strategies and to prepare a proposal for such a campaign for MOA. c. The information campaign will be used to initiate a permanent activity to disseminate progress reports and target influential stakeholders so that they are aware of MOA actions and results in its endeavor to reform the role of government. This is a critical function in light of MOA's advocacy role for the sector and essential in translating positive results into increased revenues for the Ministry. The rationalization task force will participate in designing this activity, identifying key stakeholders and the types of information to be disseminated. d. The pre-service training curricula for all levels of MOA will be reviewed and revised in light of the new MOA mission. This work will be overseen by the rationalization task force and the appropriate task group, and undertaken by the Training Unit. e. Overall coordination of implementation of this component will be with the Department of Administration and Personnel. b. Budget 1. Information Campaign OJT: 3 tasks x $170 x 10 participants 5,100 Short term consultant Oocal) 3,000 x 6 18,000 Materials and distribution 5,000 Sub-total 28,100 2. Institutionalize stakeholder awareness OJT: 15 tasks x $170 x 10 participants 25,500 Short-term consultant (MOA) 1,500 x 5 7,500 Materials and distribution 3,000 Sub-total 36,000 3. Desktop Pcs and software 5 x 5,000 25,000 Power stab. and printer 5 x 5,000 25,000 Fax I x 800 800 Photocopier 1 x 6,000 6,000 Sub-total 56,800 Total 123,900 40 Annex A c. Performance indicators Year 1: Information campaign completed Year 2: Information dissemination to key stakeholders under way Years 3 - 5: Information dissemination activities institutionalized MOA recognized as leader in reformulation of role of government and used as a model for civil service reform 4. RationaHlzation at the Regional/District Levels 28. The ultimate beneficiaries of all the reforms outlined in the Project are the agricultural producers. It is especially important that the new MOA mission and the rationalization of its functions be fully carried through all the way to the local level. 29. The preparation team bighlighted the difficulties encountered in application of marketing policy reforms decided at the top but unevenly implemented throughout the country. Although the other activities outlined above all have implications at levels below MOA headquarters, the transition from the old mission to the new will not automatically take place. Ensuring that the new direction of the Ministry and new agricultural policies achieve practical implementation at levels close to the farmer is the objective of this sub-component. b. Proposed strategy 30. a. Conduct annual seminars in each of the regions for selected district staff during the first three years of the Project, under the coordination of the MOA Training Unit. These participants would then replicate the meeting for the entire district staff back in their district. The first year's seminar/workshop would discuss the new MOA mission, ASMP, and implications for district and local level work- following a similar outline as that discussed in the information campaign above. In addition, the work-shop would highlight a specific policy area (e.g., the new marketing policies) for presentation and discussion of local problems related to its implementation. The workshops will also be used as planning sessions for implementing the new policies, and eventually would tie to the new planning and budgeting system. b. Preliminary workshops will be held for regional leaders, in which the objectives, program, and methodology will be presented, which the participants will then apply (with Training Unit participation) in their districts. An outside facilitator The Ratonalization of MoA Functions 41 will help the Training Unit put on these initial regional workshops. Although the Project will support district level workshops during the first three years, it is hoped that they will become permanent activities of the Training Unit. Their continuation will be an indicator of their perceived utility. c. Provide program management training for the 20 RALDOs in addition to the seminars to increase their capacity to carry out the MOA's programs at the regional level. d. Rationalize staff requirements at the regional and district levels, to be carried out at according to standardized guidelines to be prepared by a regional rationalization task force, composed of representatives from (at least) extension, personnel, training, and Civil Service. This work will be overseen by the Rationalization Task Force and its appropriate task group. The guidelines would establish criteria for determining MOA priorities in the regions and districts and corresponding staff requirements. e. These findings will be used to process necessary transfers and retirements, and identify training needs for those who will remain in the district but in need of additional skills. c. Budget 1. Preliminary workshops for regional leaders For each of three annual events: Workshop facilitator 15 days x $200 3,000 Materials, facilities 2,000 OJT: 1 task $170 x 30 participants 5,100 Short-term consultants (Training unit and rationalization task force) to be resource persons for workshops 1,500 x 2 3,000 Per diem $40 x 6 days x 30 participants 7,200 Sub-total 20,300 x 3 60,900 2. Annual regional seminars For each of three annual events OJT $170 x 30 organizers 5,100 Materials $500 x 20 districts 10,000 Short-term consultants for preparation of material 1,500 x 2 3,000 Per diem $40 x 35 partic. x 20 regions 28,000 42 AnnexA Sub-total 46,100 x 3 years 138,300 3. District rationalization task force OJT 3 tasks/year x 3 years, 25 participants 38,250 Short-term consultants (MOA) 1,500 x 20 x 3 90,000 (one for each region x 3 years to put guidelines and plans together, prepare implementation analysis) Materials preparation 3,000 Sub-total 131,250 4. Program management course International trainer 15,000 x 1 month 15,000 Materials and facilities 3,000 Training subsidy 25 participants x 12 days x $40 12,000 Sub-total 30,000 Total 360,450 c. Performance Indicators i) By the end of the first year all district staff will have been exposed to the new mission and objectives of MOA and had opportunity to discuss implications within their districts of policies relating to the new mission. ii) By the end of the second year, these review and planning workshops should be conducted primarily by regional staff members with minimal guidance from the training unit. iii) By the end of the second year each district will have prepared and be implementing a staff rationalization programme, based on a standardized methodology and guidelines. iv) The annual review and planning workshops will continue to take place after the third year, even without project support. S. Developing Management Systems and Capacity 31. This sub-component will introduce all-round improvements in management systems and capacity as necessary to ensure (a) efficient utilization of the financial, human and information technology resources available to the MOA, and (b) effective accountability for the resources. The specific objectives to be pursued through this component will include: (i) improving the process as well as results in the allocation and utilization of budgetary resources and manpower in the MOA; (ii) deepening and sustaining the recent initiative to The Rationalizalon of MoA Functions 43 review and redefine the role and functions, and to reorganize the structures of the ministry; (iii) enhancing the morale, productivity and performance of personnel in the ministry; and (iv) generally improving the managerial skills of the decision-makers in the sector, and thereby introducing a managerial culture that can uphold the vision and strategic perspective underlying the review and redefinition of the role and functions of the Government in the sector. Furthermore, in pursuit of these objectives, the project will complement, and facilitate sector and ministry-wise implementation of on-going macro-level reforms in public sector manamnL and in particular (i) the Rolling Plan and Forward Budget (RPFB) program that seeks to improve the systems and processes for resource allocation; and (ii) the Civil Service Reform Program (CSRP) at the core of which is the policy goal to develop a smaller, compact, efficient and motivated civil service through improved personnel management and control, organizational and efficiency improvements, and enhanced and incentive-oriented pay for Government employees. 32. The support to MOA through this sub-component will generally fall into the following five areas: (i) Planning and Budgeting: The need to improve the system and procedures for planning and budgeting within MOA, and other ministries, is underpinned in statements of policy guidelines for the implementation of the Rolling Plan and Forward Budget (RPFB) program. As stated in the guidelines, the planning and the allocation of budgetary resources has in the past been on the basis of historical trends and without due regard to the effects of resource allocation between sector, subsectors and competing activities. In other words, the ministries have in the past prepared their budgets without any strategic perspective by simply fixing arithmetical percentages to incrementally alter prior year's figures. Through the RPFB, Government officers responsible for planning and budgeting are required to place greater emphasis on identifying priority areas and allocating resources to those activities. However, with effect from FY93/94, only heralds the start of a long-term process of inculcating the need and developing the system and skills for creative approaches to the planning and budgetary process in Government institutions. Project support to the MOA in this area will therefore involve availing technical assistance and logistical facilities for the design and implementation of a planning and budgeting system that will facilitate:- (a) the systematic and effective screening of programs and projects to be funded while eliminating those associated with the functions that are being phased out; (b) identification of opportunities for improving services delivery systems, cost savings and revenue generation; (c) balancing the allocation of resources between relatively fixed personnel costs and non-personnel expenditures, and (d) possibly, articulation of the need for increased budgetary resource allocations to the sector. The Planning and Marketing Division of MOA would be responsible for implementation of this sub-component. (ii) Pesonnel Manageme: With a total workforce of about 30,000, the MOA accounts for nearly 10 percent of all Government employees. It is the fourth largest ministry; after the ministries of Education, Home Affairs, (i.e. Police and Prisons) and Defence. Yet, for example, while the CSRP goal is to retrench some 30 percent of Government employees (excluding employees in the ministries of Education, Health 44 Annex A and Home Affairs) and a hiring freeze was imposed last year, the MOA projects the need for an additional nearly 4,000 employees (over 10 percent) in extension services alone. It is therefore against such a background that a project will support the development of the personnel management function in the MOA. Firstly, the project will support the ministry in rapidly developing the capacity for reliably defining and forecasting its manpower requirements, and systematically identifying areas of over- staffing. Secondly, the project will support the management of redeployment and retraining of personnel arising from the rationalization of the role and functions of the MOA. Thirdly, the project will support the ministry in introducing such systems and procedures as would contribute to improvements in personnel morale and performance, including job evaluations and enrichment, performance appraisal, regular review of schemes of service, and job regrading. Also, as suggested in the CSRP action plan for improving personnel management, the MOA will pilot the exploration of 'mechanisms and ways for linking manpower rationalization and incentive schemes so that the results of resources squeeze are shared by the affected'. The Department of Administration and Personnel of MOA would be responsible for implementing this sub-component. (iii) Management Information System: In this element of the sub-component, the aim will be to ensure that decision-makers at the MOA have timely access to relevant information through the use of modern information technology (computers). At present the only area where the ministry has achieved significant progress in the use of computer-based MIS is in project monitoring and evaluation. Through support to be provided under this project, computer-based information systems will be introduced in the areas of personnel management, accounting and finance, and procurement. In addition to procurement of computers and software systems, the project will provide technical assistance and extensive training in the design, implementation and utilization of modern information technologies. Furthermore, in order to ensure an adequate level of availability and utilization of computers in the ministry, the project will finance a local maintenance contract for the equipment. The Planning and Marketing Division of MOA would be responsible for implementing this sub- component. (iv) Management Trainini: To ensure availability of skills to implement and sustain the developments outlined above, the project will support the training of senior and middle-grade officers of the MOA in a broad range of managerial skills, including (a) strategic management, (b) the management of human resources; (c) accounting and financial management, (d) management of the procurement function, and (e) communication and inter-personal skills. The Department of Administration and Personnel would be responsible for implementing this sub-component. (v) Accounting and Procurement: Improved accounting and procurement capacity is critical to the improvement of project implementation and accountability in the MOA. In order to initiate some improvements in procurement and accounting across the ministry, one and two seminars in accounting and procurement would be conducted each year over the 5 year project period. The Finance and Accounts Unit of MOA would be responsible for implementing this sub-component. lhe Rationalizaton of MoAl Functions 45 Budget 33. Activities to support under the management systems and capacity sub-component include 9 vehicles (US$ 0.23 million), office equipment including computers (US$ 0.37 million), technical assistance (USS 0.5 million), in-house consultant and personnel service contracts (USS 0.43 million), local training (US$ 0.1 million) and recurrent costs to cover travel allowances, office equipment repair and maintenance, vehicle operating costs and building rent and repairs (US$ 0.6 million). Cost Suumary 1. Parastatal Divestiture 270,600 2. Rationalization of MOA Functions 1,133,050 Phase out Fund 2,000,000 3. Implementation of New Mission 123,900 4. Rationalization at District Level 358,200 5. Management Systems and Capacity 2,918,000 Total 5,670,700 46 AnnexE 47 Annex B. POUCY FORMULATION, PLANNING AND MONITORING CoMwNPr The Policy EnIronmene 1. Reform in the agricultural sector, which provides some 60 percent of both GDP and exports, has been underway since the Economic Recovery Program was initiated in 1986. Support for agricultural adjustment was provided under the Government's Agricultural Sector Adjustment program, supported by the World Bank and other donors, and a series of other initiatives. Agriculture has grown rapidly during the period. The average annual growth rate in constant price agriculture GDP of 5.0 percent per annum between 1985 and 1991 is more than twice the average for sub-Saharan Africa. 2. The initial focus of the recovery program in agriculture was to reduce restrictions to private sector participation in cereals trade. This first aspect of the adjustment process has been successful by many measures. As Government control over inter-regional cereal trade diminished in phases during the late 1980's, the country witnessed a secular decline in the real price of maize and other cereals in the main consumption markets, an increase in production (helped by good weather), a rapid decline in cereal imports, and a sharp reduction in the claims on the financial system (and the Government Budget) for the marketing of maize. On the other hand, the profitability of the maize crop in the Southwest has declined, causing hardship in such distant areas as Rukwa and Ruvuma. 3. Adjustment in other sectors of the agricultural economy has proceeded more slowly. The real depreciation of the exchange rate has in principle permitted local returns to traditional export crops to increase. However, with the marketing and processing of traditional export crops still monopolized by large, mostly insolvent, cooperative unions, the improved margins have not been passed on to the farmer level. The withdrawal of Government boards from control of traditional export crop marketing has been gradual and incomplete. The Boards manage the commodity auctions, and administer such regulations as exist. The establishment of the marketing boards as monopoly 'agents to the unions achieved little change. Other entities marketing traditional export crops are not obliged to have the Board as agent. 4. The returns to agricultural exports have also been improved with the provision of rights to 'retain' a gradually increasing share of foreign exchange earnings (and not change them at the official exchange rate which is 20 percent below the market rate). Exporters of "non-traditional' crops and livestock products can 'keep" up to 50 percent of their foreign exchange earnings, for sale at the forex bureaus. Exports of 'traditional' crops continue to be valued at the official exchange rate. Up to 10 percent 'retention' of earnings has been recently reintroduced, but few have yet taken advantage of the privilege. TakT from the Aide Memoiro in the Joint Government of Tanunia/World Bank Agiculture Sector Review, "Preiimi Findingp nd Recommendations Report of December 9, 1992. 48 Annex B 5. Government has gradually withdrawn from the pricing of export crops. As of the 1993/94 season, the (monopoly) unions are free to negotiate with farmers (and their bankers) on the farmgate price to be paid (at least initially) for cotton, coffee and other crops. Government had been providing 'indicative' prices to the subsectors, but this was seen as too disruptive to the negotiating process. 6. Along with the changes in the structure of the marketing arrangements, the Government passed a revised Cooperatives Act in 1991. Under this new legislation, all primary cooperatives, and their associated unions and apex organizations, are due to be re- organized on more democratic principles. The process of reconstituting these organizations is lengthy and complex, but will eventually result in cooperatives that are more responsive to user desires, and hopefully, more proficient players in the market for agricultural produce. 7. Domestic marketing of livestock continues unfettered by controls. Checks on live animal exports to neighboring countries are largely ineffective. Government continues to monopolize the provision of veterinary assistance, drugs and medicines. 8. Liberalization in the provision of agricultural inputs has progressed, with a gradual reduction in the subsidy provided on fertilizer (now 40 percent of the panterritorial price in the regions), and an increase in the use of private stockists for distribution. One privately owned company is active in the improved seed market, and a joint venture between Government and another company is expected shortly. Not much progress has been made in involving the private sector in agrochemicals for cotton and coffee, or in the veterinary drugs sector. The Need for Continued Reform 9. There is general consensus amongst donors and Government on the need for continued change in the structure of agricultural production, processing and marketing. The financial bottlenecks facing the traditional exports sector and the inputs supply industry are indicative of serious structural problems, and demand a change in approach. The Government is unable to continue to underwrite unsustainable processing and trading practices. The call on Government resources to finance basic social services, to rehabilitate the country's productive infrastructure, to reinvigorate the Civil Service and to respond to short term food security crises leaves little over to subsidize unprofitable production. 10. There was also consensus on the need to update and formalize the new Agriculture Development Policy of the Government. The policies for Agriculture and Livestock development set forth in 1983 have served their purpose, and have been superseded by a series of new approaches, undertaken as part of the economic adjustment process initiated in 1986. The most comprehensive statements of intent with regard to agricultural development policy are contained in the 'Letter of Development Policy' agreed to under the TANAA operation in 1990, and the Policy Framework Paper 1991/92-1993/94 negotiated with the IMF and the World Bank in 1991. The Govermment is scheduled to table new legislation in April 1993 which would revise the various Acts of Parliament, and other laws, which restrict competition in the marketing and processing of agricultural produce. The revised legislation Policy Fornulation, Planning and Monitoring Component 49 would support the "enabling environment' for private sector development which has been occurring 'de facto' over the past few years. 11. It is generally agreed that the approach to the development of the agricultural sector should be based on the use of competition and market forces to increase the efficiency of production and marketing activities. The issue is not on whether increased competition should be encouraged in the various markets supporting the agricultural sector, but rather on how to move towards increased competition without causing a costly disruption of the processing and marketing process, while addressing societal concerns of food security, income distribution, and the development of the indigenous private sector. 12. It should be noted that, underlying the discussions on movement towards an economy based increasingly on the private sector, was a sense of uncertainty on "what it takes to bring the private sector into agriculture, and on how efficient and competitive an "incipient" private sector would be in new and difficult agricultural product and inputs markets. There was also uncertainty on how the new "indirect management" techniques implied by Government's new role as the provider of the "enabling and regulatory environment" in which a market defined "incentive framework" is created, would actually work out in practice. The proposed "Policy Formulation, Planning and Monitoring" component of the proposed Agriculture Sector Management Project is an attempt to reduce these uncertainties, and set the Ministry of Agriculture on a firmer footing with regard to its new role. Review of Ministry of Agriculture Functions in Policy Fonnulation, Planning and Monitoring 13. Prior to the appraisal mission, staff in MOA undertook a detailed review of the functions and structure of their institution, with a view to identifying areas for reform. Key observations on the policy and planning functions are noted below. These have served as guidance in the formulation of the proposed component: (a) The planning function does not reflect the overall Ministry planning requirement. It is not geared towards coordinated and integrated sectoral planning and policy formulation. 14. The main weaknesses in the policy framework, and its inability to affect agricultural productivity and output were identified as due to the following:2 (i) a policy framework which inhibited private sector development; (ii) poor resource allocation priorities; (iii) a policy which relied on central planning; (iv) frequent changes of policy and strategy; URT, MOA, Agriculture Sector Management Project, Project Preparation Team Report, TanzaniA Agro-industrial Servicea Ltd., March 1993, Fig 4.1 SO Anna B (v) inadequate capacity to deal with sectoral reforms; (vi) lack of private sector input into policy formulation; (vii) uncoordinated subsectoral programs; (viii) weak monitoring systems; and (ix) weak evaluation systems. 15. Policy-making capabilities in the Ministry of Agriculture were diagnosed as weak for the following reasons: (i) poor working environment; (ii) weak and unreliable data base; (iii) inadequate training; (iv) misallocation of staff; (v) the need to respond to too many issues; (vi) weak coordination and feedback mechanisms, especially with the regions; (vii) inadequate financial resources and no work incentive systems. The proposed project was designed to overcome some of these constraints. Component Description 16. The objective of the MOA has been defined as: 'To promote and sustain an enabling environment for growth in agricultural production, trade and investment in order to achieve the national objectives of (i) increasing rural incomes, (ii) enhancing food security for the population, (iii) achieving export growth and (iv) conserving the environment." 3 17. The Policy Management function entails: 'articulating the sector's priorities within the macro policy formulation process, translating larger policy decisions into sector specific actions, and monitoring the impact of policy reforms on agriculture." ' ' Joine Govcrnment of TanzaniaWorld Bank Agriculure Sector Review, "Preliminay Findings and Reco mentions", December 9, 1992, Annex 13, p. 190. 4 URT, MOA, Agriculture Sector Management Project, Project Preparation Team Report, Tanzania Agro-induwtritl Servioe. Ltd., March 1993, p.16 Policy Formulation, Planning and Monitoring Component 51 18. This component will strengthen MOA's capacity to formulate and monitor the implementation of policies which affect agriculture and rural development in Tanzania. As mentioned previously economic management is shifting from a situation where Government participated in and controlled prices, markets and processing activities by fiat, to one where Government's role is to support the smooth functioning of markets in agricultural products and inputs. This requires the redefinition of Government's policies with regard to most agricultural markets, with the exception of the public goods areas (research, general technology dissemination). To support this process of policy re-definition it is imperative that Government policy-makers have access to an agency capable of providing reliable, high quality analytical position papers on the issues under discussion. The Sectoral Planning Department in the MOA wIll be strengthened in order to provide this service. 1. Strengthening the Sectoral Plandng and Marketing Division 19. The main feature of this component would be to strengthen the analytical capacity of the Sectoral Planning Department. The tasks of MOA's Sectoral Planning Department can be separated into four categories: policy Analysis This activity is currently of high priority in light of the Government's need to redefine its role and function across many aspects of the agricultural economy. Three quarters of the resources in this department would be allocated to a Work Program defined at the beginning of the year involving substantial research and interaction with policy makers and the private sector. An indicative Work Program is presented below. One quarter of resources would be devoted to responding to ad hoc demands for analysis and problem solving, inherent in any advisory capacity in MOA. This function has been carried out to date by the Agriculture and Livestock Sections, in the Sectoral Planning Section. * Planning and Budgeting. Project and Program Preparation and Monitoring 'This category is more routine than the first one. It brings together: (i) the task of planning MOA activities for the next year (and three years, under the Rolling Plan), setting priorities for allocation of MOA budgetary resources, consolidating budget proposals from different departments, and preparing the budget submission to Parliament; and (ii) the preparation, monitoring and impact assessment of donor funded projects in the agricultural sector. This function has been carried out to date by the Project Preparation and Monitoring Bureau (on project and program assessment) and by the Sectoral Planning Department. * Agricultural Information Management and Dissemination These activities are associated with the collection of data on agricultural product and factor markets, rural households and meteorological phenomena, both on a routine basis, as well as the conducting of ad hoc surveys to support policy studies. They include the administration of an agricultural census, annual production surveys, and routine surveys on yields, prices, labor markets, and other basic information on the agricultural sector. This activity is being appraised as a 52 Annex B separate 'agricultural information' component. These functions have been carried out to date by the agricultural information unit within the Sectoral Planning Department, in collaboration with the Central Bureau of Statistics. A full description of this component is provided in the SAR. Agricultural Market Monitorini and Regulation Government's withdrawal from the food market, and its gradual deconfinement of the traditional export product markets, make it increasingly important that a reliable system for monitoring and disseminating product prices in different parts of the country is established. The MDB has been carrying out this function to date. The function should be expanded to include other crops, as they are deconfined, and inputs (such as fertilizer and chemicals) as they are deconfined. This unit should also continuously monitor levels of competition in the different markets, evaluating the reasons for exercise of monopoly power, and potential Government interventions in infrastructure or information networks which could break these positions. This task has been carried out to date by the Marketing Development Bureau. 20. Strengthening would be accomplished mainly through a very comprehensive staff training program (described below) which would link staff development opportunities very closely with the execution of the Division's Annual Work Program. The project would provide the additional equipment (computers and vehicles) and office furniture to make Department staff more productive and creative. The project would also provide a fund for hiring local or foreign consultants, as needed, to carry out the studies necessary to back up the formulation of Government policy in a number of key areas: the management of traditional export marketing, liberalization of the agricultural inputs supply trade, revitalizing the cotton industry, defining the country's land tenure legislation. Broadening Private Sector and Regional Participation in Policy Fornulation 21. In addition to strengthening the capacity of the Government to undertake the above- mentioned tasks, the component would improve MOA's capacity to include non-Governmental entities in the discussion of proposed policies and the central and regional levels. To this end, the activities of the Policy Analysis Advisory Committee (which includes Government agencies, private sector and NGO's) would be given more prominence and funding. Project funding would also be provided for local workshops and seminars on key policy issues in the agricultural sector. Also, high level staff from the Sectoral Planning Section would be stationed in the interior, one in each region, with the responsibility of coordinating routine information collection, monitoring agricultural markets, coordinating a regional input into the formulation of new policies, as well as explaining at regional level the implications of policy changes decided on at the center. Policy Formulation, Planning and Monitoring Component 53 Training 22. An important aspect of the component will be to train MOA staff in analytical techniques, and providing them with exposure to examples from other countries of solutions to the type of sectoral management problems facing Tanzania. A variety of training approaches will be used to increase the analytical capabilities of staff. These will include: * Study tours for both policy makers and professional staff will permit Government officials to visit locations where policies similar to those being considered for Tanzanian agriculture have been tried. * On the Job Training of staff, to be carried out in the context of a particular study undertaken in the Department. Under the supervision of the study team leader, staff would be assigned to selected studies would be encouraged to broaden the scope of the analysis, and invest more than the usual time in the effort. The assignment would normally be slightly more difficult than the staff person's normal work. No prior experience would be required. More than the normal level of effort would be required by the staff person, to bring themselves up to par on the topic. An allowance would be provided for successful completion of this kind of work; * short courses and workshops organized in Tanzania using local consultants and staff from Dar es Salaam or Sokoine universities; * short courses (3-6 months) at local or foreign universities; and 3 longer term degree courses (one to two years) in specialized topics, at specialized foreign universities. 23. The key element in the management of the training program will be the Personal Training Plan. Such a plan will be prepared for each staff member in the Department. The plan should list the tasks, and training opportunities which it is intended the staff member should have throughout the year. Each staff member should have a plan with a mix of routine assignments, study tours, seminars and on the job training programs which reflects the staff person's ability. The training opportunities should be reflected in a five year Individual Staff Development Plan, also to be developed The Personal Training Plan will fbllow from the definition of the Annual Work Program for the Department as a whole. Each staff member will be responsible for agreeing on a Staff Development Plan and an Personal Training Plan with the Head of the Department and the internationally recruited Project Training Officer. 24. Management of the training program would be a key aspect of the project. An internationally recruited Project Training Officer (Terms of Reference in Annex E) would be hired to assist the Project Coordinator in running this aspect of the project. Further details are provided in the Implementation Section below. 54 Annex B 25. It should be recognized that the possibility of receiving training plays a strong role in the incentive system. For this reason, all aspects of the training program should be used to build staff capacity and motivation. In providing training opportunities, attention should be given to the staff person's track record, the ability to profit from the training experience, and the effect such opportunities will have in building the efficacy of MOA's policy analysis functions. Assurances would be sought at negotiations that: (i) all training opportunities and awards would be based on merit; and (ii) selections for overseas training would be reviewed and approved by IDA. Poliy Formulation, Planning and Monitoring Work Program 26. The tasks to be accomplished by the Sectoral Planning Section have been enumerated previously in general terms. For the system to be effective, each of the studies, or planning and monitoring activities should be set in an annual work plan, which indicates completion dates, and provides for staff use and other resource allocations. Such a plan will also be needed to coordinate the training program needed to bring MOA staff capacity up to levels needed to be able to execute these tasks. An initial attempt has been made to identify and budget for these tasks as described below. Such a work plan should be submitted to the Bank when the departmental budget is prepared, prior to the beginning of the Fiscal Year in July (see para - below). Component Cost Estimates 27. The component is estimated to cost about USS 7 million. Execution would be over 5 years. Funds would be used to purchase vehicles, equipment, including computing equipment for central and regional staff, office furniture, incremental training costs, local and foreign consultant services, office supplies and vehicle operating costs. Estimated baseline costs for this component are provided below. Implementation and Procurement 28. The implementation of this component would be the responsibility of the Commissioner heading the Division of Sectoral Planning and Marketing. This Division brings together the activities carried out by two Sector Planning units (Agriculture and Livestock), the Marketing Development Bureau, and the Project Preparation and Monitoring Bureau. The Division would have a complement of about 80 professional staff. The tasks outlined above would be assigned to different sections within the Division. Each section would have to prepare a work program, identifying tasks planned for the year, and the inputs of staff time, consultants, vehicles and other support needed, per task. The work program would specify the reports and surveys due to be finalized within the calendar year. It is likely that the tasks of the 'policy analysis' group will vary the most from year to year. In preparing its work program, this group should also allow a portion of its resources to remain unallocated to any particular task, to cover for eventualities. A sample of such an Annual Work Program is provided below. Assurances were obtained at negotiations that a draft of the annual work plan, by task, of the Sectoral Planning Section of MOA would be provided to IDA for review Policy Formuladon, Planning and Monitoring Component 55 and approval prior to the submission of the annual budget request to the Government. Durin nagWiations, the work plan for the 1993/94 fiscal year was presented to IDA. 29. The donor community has substantial interest in the policies on the Government's reform agenda for the agricultural sector. To improve coordination amongst donors and bring together relevant studies funded by different donors which focus on the same issues, steps should be taken during implementation to ensure that the annual policy work program is discussed with the donor community in the course of its preparation. This will enable them to adjust their programs and projects to Government priorities, and to indicate whether they could contribute additional funds or expertise to the effort. Through his mechanism, some degree of donor/Government coordination on the policy reform front could be achieved. 30. With regard to the management of the training program and the agricultural information component, the Government has indicated that it is interested in continuing to cooperate with the FAO. The FAO has been assisting the Government in both these areas, with IDA funding, over the past 15 years with considerable success. The Project Training Officer would then be bired through FAO, and the various aspects of the training program would also be handled through FAO. In addition, technical assistance for the Agricultural Census, and additional local and international staff hired to assist in the implementation of the market information gathering activity would be hired through FAO. 31. It is expected that the MOA will be restructured during the next few months, to fit its organization more closely to the changed requirements of a 'hands off' Government role. Assurances were obtained at negotiations that any change in the structure of the Ministry of Agriculture would be reviewed with IDA prior to its implementation, to ensure that such structural changes would not affect the achievement of project objectives. 56 Annex B.1 ANNEX B.1 NOaES ON TIE ON-THEE-JoB-TRAINNG 32. Under the ASMP project, an important aspect of Staff Development will be the formulation of a Personal Training Plan (PTP), which would track professional staff training and promotion prospects on a yearly basis. These personal plans would be accumulated into a departmental training program. The ASMP would support various aspects of the departmental training program with funds for: (i) short (1 month), medium (3-6 months) and long term courses (6-12 months) at local or fbreign institutions; (ii) local and international study tours and visits; (iii) on the job training; (iv) personnel services contracts, and (v) provision of improved computers, reference documents, materials and accommodation to staff. On the Job Training 33. These funds will be used to support extra-normal work on special studies and projects undertaken in the policy analysis and planning department. Such tasks will fit into the overall training program designed for Ministry staff especially in the Planning and Marketing Division, and would permit staff to broaden and deepen their understanding of specific issues, selected for in depth study. Staff selected to undertake these tasks would not necessarily be proficient in the required area or professional discipline. Rather, the task should be designed to "stretch" their analytical capacity, and broaden their field of experience. Staff chosen for such assignments could either work individually, or as part of a team of Ministry professionals, complemented as necessary by outside consultants. The extra effort required to successfully complete this type of task would be rewarded with an on the job training honorarium. 34. At the initiation of the fiscal year, staff would be assigned tasks to be accomplished during the year. These tasks would be divided into: * "routine tasks" to be accomplished for the Ministry, under Ministry pay schedules; and * "special on the job training assignments" to be undertaken as part of the staff- person's professional growth. Such assignments would require special commitment, overtime work, and would result in well identified output of verifiable quality. 35. The taking of 'special assignments" would be open only to professional staff, within the GS grades. Tasks will be allocated to staff on the basis of merit, professional capabilities and GS grade level. In view of the 'special' nature of the assignment, the need for commitment by staff to overtime work, travel and the required investigation of topics and areas outside of normal MOA work, an on the job training emolument would be provided. Such emoluments would be based on the duration and difficulty of the task. 36. The maximum number of "special assignments" to be undertaken during the fiscal year would be limited by GS level: the higher the GS level, the larger the number of assignments which could be expected to be accomplished during the period. A tentative Policy Formulation, Planning and Monitoring Component 57 schedule of the maximum numbers of "special assignments", by GS grade, is noted below. A maximum of 6 "special assignments" can be carried out by one MOA staff member during the fiscal year. 37. Each "special assignment" would have the following characteristics: * Terms of reference which would include: (a) the objective of the study or task, (b) a detailed description of the questions to be answered by the study or task; (c) an indication of the methods to be used in undertaking the study or task, and answering the questions posed; (d) a brief outline of the report(s) expected; (e) the dates by which the various reports would be expected; (f) the staffing requirements needed to accomplish the task; and (g) the minimum qualifications of the staff required to participate in the task. * It should be a part of the Ministry's policy analysis and reform agenda. These "special assignments", and the staff-weeks required to carry out these taskcs would be identified at the beginning of the fiscal year, in the details of the Annual Work Plan. The total number of tasks, including the "special assignments", would reflect the staff and financial resources available to the Planning Department at the start of the fiscal year; * If more than one staff person is involved in the task, a Ministry professional should be named Team Leader for the "special assignment"; * Where possible, stages of completion of the "special assignment" should be identified, so that remuneration can be provided for stages completed. No remuneration would be provided for uncompleted or unsatisfactory work. 38. Successful completion of "special assignments", or stages of such assignments would be the basis for consideration of Ministry staff for future assignments of more difficulty, for employment on a Personnel Services Contract, or for receipt of a training fellowship. Management of the On the Job Training Program. 39. The Heads of Sections would be responsible for the preparation of the Annual Work Plan for On the Job Training and presenting it to their respective heads of Departments. The Heads of Divisions (HODs) would be responsible for approving the on-the-job training. The project coordinator, with assistance from the project training officer, would be responsible for aggregating the personal training plans into annual training plans. Assurances were obtained at negoitions that the Annual Work Plan, and the Annual Training Plan would be submitted every year to IDA for review and approval. 40. In view of the complexity of the training program, MOA has indicated that it desires to appoint the FAO as a "Training Cooperating Agency" to continue in its current role of administering the training program and associated technical assistance during the project. 58 Anna B.I 41. On the basis of the Annual Work Plan for Training, the Training Cooperating Agency would plan requests for disbursement of funds from IDA. Policy Fomnundon, Planning and Monitoring Component 59 ANNEX B.2 PROJECr TRANING OFCER Terms of Reference OBJECTIVE: The Government is implementing an Agricultural Sector Management Project with support from the IDA. A key aspect of this project is the training of staff in the Ministry of Agriculture in the techniques of 'indirect management" of the agricultural economy, through incentive structures, regulation and the provision of public goods. The implementation of the project in the Ministry of Agriculture will be managed through the office of the Project Coordinator, attached to the Commissioner for Planning and Marketing of MOA. The Training Officer will be located in the office of the Project Coordinator, and will be responsible for ensuring that a coherent training program is put in place. POSITION: Project Training Officer TASKS: The Training Officer would be responsible to the Project Coordinator. Responsibilities would be to: * Develop a five year plan for training of MOA staff using resources allocated for training under the ASMP project, and other training resources, within the first 3 months of the assignment; D Formulate an Annual Training Plan every year. This Training Plan wll be based very closely on the Annual Work Plan for the MOA and will endeavor to provide staff with the training opportunities needed for an efficient implementation of MOA's work program. The annual plan is to be prepared in collaboration with the Commissioners and the Project Coordinator; Assist each of the key staff in MOA to put together a Personal Training Plan, following agreement on the Annual Training Workplan. This personal training plan would be drafted in outline for the 5 years of the Project. Each year, an Annual Personal Training Plan would be defined, indicating, for each staff, the mix of study tours, short, medium and long courses, on the job training and personnel services contract opportunities which would be made available during the year. Manage the various elements of the training plan on a day to day basis. This will imply monitoring training schedules, work schedules, study deadlines in order to achieve an effective implementation of the Work Plan, while improving staff capabilities. Management of the Training Work Plan will entail very close coordination with the Heads of Departments and the Project Coordinator. 60 Anex B.2 * In collaboration with the Training Cooperating Agency, manage the training budget from both local and international sources allocated to the Training Work Plan, once it has been approved by the Ministry of Finance (ocal) and IDA (foreign). Budgetary matters would be channeled through the Project Accountant, and the Training Cooperating Agency. * Prepare an annual report on achievements through the Training Program, including a listing of reports produced and training courses attended. This should be tallied with the targets formulated for the year in the Annual Training Workplan. * Train a Tanzanian to take over the task after three years. QUALIFICATIONS: Masters Degree in economics, with additional training or experience in management of training and personnel development programs. He/she should have at least five years of experience in policy analysis. DURATION: Three years. Policy Formulation, Planning and Monitoring Component 61 ANNEX B3 MOA PLANNING & PoucY FORMULAnON DEPARThIrF WORK PROGRAM AND STAFIG ALLOCAToN Cowapbli Staffn POLICY AGENDA PeWiod Data (in Stalfwedka) Preparatio Sector Policies National Agricultural PoGicy Drafting and Review 0uc 6/94 225 Worksopa/Se/S ino 2 4/94 Medium Term Agricultur Development Progrm Drfting and Review owe 1/94 230 1/94 Workhops/Seminas 2 7194 Agricultur St-ategy Paper for Rolling Plan Drfting nd Review Yealy 2/94 30 Workshop/Semino 2 12193 20 Preparation of Bench Mark Sector Report An1a 10/94 40 Prparation of Annual Sector Repogt Once 12/93 60 improved Policy Coordination nd Feedback - Strengthen PAAC Seminarn Qartarly 45 Regional Review of Agriculture Policy Monitoring nd Semina Anul 195 Improve Enabling Environment for Private Sectot Developtnt. - Amend Acts Still Affecting Private Sector Participation in Agricultum Drfting and Review Once 6/94 120 - Formalize lAnd Tenume Reguations and Pa Umbrella Lnd Law Conwultations and Survey Once 6/94 ISO DRfting and Review Once 12/94 ISO - Review Rengelands Tenur and Use Problems Consultations nd Sutveys Once 120 Dm"ting. Review, Wokshop Onc 55 - Effects of Change in Price ad Exchange Rat Regime to Improve Production Inceives for Cub Crepe on Governent Budget and Import Cpcity Drafing and Review Onc 12/93 40 - Effects of price changes on agricultural productbo and employment Once 3/94 40 - Review of Rural Fmnncial Market Surveys Once 6/94 40 Drafting and Review Once 12/94 20 - Frilizer: Establish Metbods for Improving Subsidy Payment to Private Sector Dfting nd Review one 12/93 45 - Review Auction System for Traditionl Crops Drafting and Review one 6/94 40 - Restructure LoA Tax Sysm to Minize Production Disincentives Survey$ Once 6/94 40 Drafting nd Review onc 12/94 40 - Provide Spatial Priorities nd Estabih Priortie for Constuction of Public Rural Infiucture Surveys Onc 6/94 40 Drfting and Review Onc 6194 40 - Fuinlize National Seed Policy Drafting and Review once 12/94 40 - Coopeative: Review ffect of retuctuing on marketn services and izput pply onc 6/94 100 Food Security Policy and Stregic Grin Resrv - Update Food Security Policy Drfting nd Review One 12/94 40 - Desin Operating Rule for Stratgic Grin Res Drafting end Review One 12/94 40 - Formuate Reepoare to Ealy Waning Sysem Indicato Drafting and Review Once 12/94 40 62 Anna B.3 Compbi Sta'filn POIJCY AGENDA Periodicity Dal on Safee&s) al Review of Agrculua Markets - Cobee Secr Review Annual 12/93 6 - Foodcrops Sector Review Anma 12/93 6 - Con Sector Review Annua 12t93 6 - Caew Sector Rew Annual 12/93 6 - Pyrothnzm Seacw Review Annual 12/93 6 - TobaccooSector Review Annual 12/93 6 - Livestock Marketin Review Anmal 12/93 12 - Oer crops Annual 12/93 40 Otber Market Reviews and Studies Once/Coninuous 6/94 289 Prepare Clear Policy Guidelines 10 - Revie Exisn Plicy Guidelis Annual 6/94 10 - Egabrid Policy Coamanicam Mechanism Annual 6/94 30 Execution of Plning, Monitoing, BudgeXt Tass Esablih Secorl Moniorimg Systm for Piu and Progans - Perfrmane Stadad and Indicatd Annual 12M93 45 - Reportin System. a Fora Anal 12/93 40 E:abidh Peniodic Evauaton SyeM for Prject and Progm - Reporting Systems and Formets Anal 6/94 45 - Peiodic A_eames of Policy Impact Annua 6/94 18 0 Planning, Monioring Nad Budgeting - Seting of PlaninW ad Budget Priorties Annal 1/94 45 - Prfetion of Budget Cei Annual 1/94 45 - Sig Planni ad Budgetg Prorite Anad 1/94 45 - Condatiod of Dept. Budget A PAn Annual 3/94 100 - Prpaation of Budge Docume_ Annual 6/94 20 Esablia Systm and Crte for Montoin Sector Performane an Operatn the Symm Onc/Anmal 4/94 I5 Miscelaneous Annual 6/94 41 TOTAL STAFF WEKS 3,171 TOTAL STAFF EQUIVALENT 70 It U i 8bff Week. Om ShIf Po. h 45 fmf webs ahbh for .qAL 1h ,emhie i hi , _aehaId sicree. Tub Idome Woka*dr mt wmk o.f d ml'. Polky Forlation, Planning and Monitoring Component 63 Annex B.4 Staffing of the Pnnng and Polcy Fonnulation Departmet Agriculture Sector Management Project Staffng of the Planning and Policy Formulation Department Sector Sector Planning Planning Monthly Monthly Monthly PPMB Livestock Agriculture MDB Total Salary Bill Bill Grade Level (Staff) (Staff) (Staff) (Staff) (Staff) Tsh Tsh USS GS 2 1 1 6,660 6,660 19 3 12 6 11 5 34 7,675 260,950 746 4 7 3 12 2 24 8,905 213,720 611 S 1 2 4 2 9 10,125 91,125 260 6 1 1 11,370 11,370 32 7 1 3 4 12,555 50,220 143 8 1 1 2 13,925 27,850 80 9 1 1 2 4 15,410 61,640 176 22 13 29 15 79 723,535 2,067 Average Monthly Salary 9,159 26 -Estimates of Potential Costs of the MOA Planning Department Training and Personal Services Contract Scheme Gade Staff per OJT Yearly Monthly Yearly OJT S Year Grade OJT Rate OJTraining OJTraining Training Bill (Planning) tasks per task p/ Person p/ Person Bill USS USS Tsh USS USS GS 2 1 3 85 255 7,438 255 3 34 3 85 255 7,438 8,670 4 24 4 85 340 9,917 8,160 5 9 5 85 425 12,396 3,825 6 1 5 85 425 12,396 425 7 4 6 85 510 14,875 2,040 8 2 6 85 510 14,875 1,020 9 4 6 85 S10 14,875 2,040 79 26,435 132,175 lAverage Cost of Monthly O.J.Training 9,760 28 |USSExchan 1 350 64 Annex B.5 Annex B.5 Polcy Fonnuladon and Impimentadon Component TANZANIA Agiculab Socor Managet Proet Policy Formulation wad bTnplementation Conponwt Units Cos % An"al Quditi (Unit) Annual Amounts (USS 000) Total by Activity USS For Yrl Yr2 Yr3 Yr4 Yr5 Tol Yrl Yr2 Yr3 Yr4 Yr5 Tot Section POUCY AGENDA Prepration Sector Policies National Agricurik Policy Workshop day 250 0% 4 4 1.0 0.0 0.0 0.0 0.0 1.0 Facilitator day 1u0 0% 4 4 0.6 0.0 0.0 0.0 0.0 0.6 1.6 Medium Term Agriculture Development Program Wokshops 250 0% 2 2 4 0.5 0.0 0.0 0.0 0.5 1.0 Consultlant (c) p/mo 5000 0% 4 4 S 20.0 0.0 0.0 0.0 20.0 40.0 Conultants (for) p/mo 15000 100% 5 5 10 75.0 0.0 0.0 0.0 75.0 150.0 191.0 Resource Allocation Priorities Undatake Ad Hoc Surveys to Support Studies and Prop-am Consulants (boc) p/mo 5000 0% 5 5 5 5 5 25 25.0 25.0 25.0 25.0 25.0 125.0 Conultat (for) p/mo 15000 100% 5 5 5 5 5 25 75.0 75.0 75.0 75.0 75.0 375.0 500.0 Improved Policy Coordination and Feedback - Strhen PAAC Allowances (per pason) p/day 57 0% 100 100 100 100 100 500 5.7 5.7 5.7 5.7 5.7 28.5 Venue and MataiaLs p/nitg 300 4 4 4 4 4 20 1.2 1.2 1.2 1.2 1.2 6.0 34.5 Station Planning Ag. Economists in RALDO 4WD Pickups ea 18000 95% 20 10 30 360.0 0.0 0.0 130.0 0.0 540.0 aptops + Printen + Softwre es 5000 95% 20 10 30 100.0 0.0 0.0 50.0 0.0 150.0 Office AcconmL a-n Fun(Re as 1000 0 20 20 20.0 0.0 0.0 0.0 0.0 20.0 Fan ea 100 0.95 20 10 30 2.0 0.0 0.0 1.0 0.0 3.0 713.0 Improve Enabling Envinonment for Private Sector Development. Amend Acts Stitl Affecting Privae Sector Participation in Agriculture Consultants (oc) p/mo 5000 0% 5 5 5 25.0 25.0 25.0 0.0 0.0 75.0 75.0 - Formalize Land Tenure Reguations and Pas Umnbrells land Law Consultants (loc) p/mo 5000 0% 3 3 6 15.0 15.0 0.0 0.0 0.0 30.0 Consulta (for) p/mo 15000 100% 2 2 4 30.0 30.0 0.0 0.0 0.0 60.0 90.0 - Advocate Changes in Price and Exhange Rate Reime to lmprove Production Incentives for Cash Crope Consultt (oc) p/no 5000 0% 3 3 6 15.0 15.0 0.0 0.0 0.0 30.0 Consultants (for) p/no 15000 100% 2 2 4 30.0 30.0 0.0 0.0 0.0 60.0 90.0 - Restructuring of the Cotton Secor Conultants (toc) pmo 5000 0% 4 4 4 12 20.0 20.0 20.0 0.0 0.0 60.0 Conulants (for) p/mo 15000 100% 2 2 2 6 30.0 30.0 30.0 0.0 0.0 90.0 150.0 - Restuue and Privsiz Inps Supply Systm Consulants (oc) p/mo 5000 0% 3 3 6 0.0 15.0 15.0 0.0 0.0 30.0 Consultants (for) p/mo 15000 100% 2 2 4 0.0 30.0 30.0 0.0 0.0 60.0 90.0 - CanyOutOthPolicyReformadftuocuruing Raview 2/ Food Security Policy and Strategic Grin R_ser Updat Food Security Policy Set and Monitor Operating Ruls for Statgic Grin Reserv Formulate Respone to Ealy Waning System Indiator Consultan (oc) p/mo 5000 0% 3 3 3 9 15.0 15.0 15.0 0.0 0.0 45.0 Consulta (for) p/mo 15000 100% 3 3 3 9 45.0 45.0 45.0 0.0 0.0 135.0 180.0 Policy Formudation, Planning and Monftoring Component 65 TANZANIA Apiculb Sector M M Projot Policv Formulation rnd Impilmentation Conponent Units Co % Aual1 QuAiti. (Uuit) Anmu Almrta (USS 000) Total by Activity USS For Yr I Yr2 Yr3 Yr4 Yr5 Totl Yr I Yr2 Yr3 Yr4 YrS Toal Scction INSTFlUllONAL STRENOTHENING 4/ Ensure Staff Adequately Trained Asses Training Needs Consultants (oc) p/mo 5000 0% 5 5 25.0 0.0 0.0 0.0 0.0 25.0 250 - Take Stock of Loc and Foreign Trining Facilities Consultants (oc) p/mo 5000 0% 2 2 10.0 0.0 0.0 0.0 0.0 10.0 Consultants (for) p/mo 15000 100% 2 2 30.0 0.0 0.0 0.0 0.0 30.0 40.0 - Semina, Workshops, Training Study Tours (2 wks) p/per 10000 100% 5 5 10 50.0 50.0 0.0 0.0 0.0 100.0 Short Cour (3.6 months) p/per 22000 100% 20 10 10 10 50 440.0 220.0 220.0 220.0 0.0 1,100.0 Long Counes (I yr) p/per 40000 100% 10 10 5 25 400.0 400.0 200.0 0.0 0.0 1,000.0 Seminan wLocal Instit. (2 wk p/per 500 0% 75 75 75 75 75 375 37.5 37.5 37.5 37.5 37.5 127.5 2,317.5 Improve Work Environment and Facilities 4WD Station Waoew ea 25000 95% 5 3 3 125.0 0.0 0.0 75.0 0.0 200.0 Desktop PCs (HQ) + Software es 5000 95% 12 6 13 60.0 0.0 0.0 30.0 0.0 90.0 power stab. + Printer (HQ) ea 5000 95% 6 3 9 30.0 0.0 0.0 15.0 0.0 45.0 Laptops + Printer + Softwar e& 5000 95% 10 5 15 50.0 0.0 0.0 25.0 0.0 75.0 ofrice AsconnL and Fumt.(H ea 1000 0% 10 10 10.0 0.0 0.0 0.0 0.0 10.0 Air Conditionrm (HQ) ea 1000 95% 5 3 S 5.0 0.0 0.0 3.0 0.0 3.0 Fax es 3OO 95% 1 1 0.S 0.0 0.0 0.0 0.0 0.3 Telephone Exchange ea 2000 95% 1 1 2.0 0.0 0.0 0.0 0.0 2.0 Telex as 3000 95% 1 1 3.0 0.0 0.0 0.0 0.0 3.0 hotocopien (Heavy Duty) es 6000 95% 4 2 6 24.0 0.0 0.0 12.0 0.0 36.0 Photocopiers (Small) ea 3000 95% 2 1 3 6.0 0.0 0.0 3.0 0.0 9.0 Standby GOenerator ea 000 95% 1 1 3.0 0.0 0.0 0.0 0.0 3.0 Binding Machine ea 4000 95% 2 2 3.0 0.0 0.0 0.0 0.0 3.0 494.3 Adequate Staff Incentives Provided Study to Drw Up Incentive Schem Consultant (Ic) p/mo 5000 0% I 1 5.0 0.0 0.0 0.0 0.0 5.0 Short Term On the Job Trining Schem for Staff On the Job Training Pro 4an2 Esifated I 3 tas/yr I/ phisk 170 0% 240 240 240 240 240 1200 40.3 40.3 40.3 40.3 40.3 204.0 Review Staffing Allocation Consultant (loc) p/mo 5000 0% I 5.0 0.0 0.0 0.0 0.0 5.0 214.0 RECURRENT COSTS Office Supplies p/mnach 500 50% 23 23 23 23 23 140 14.0 14.0 14.0 14.0 14.0 70.0 Vehicles p/veh 3500 90% 25 25 25 25 25 125 37.5 37.5 7.5 37.5 37.5 437.5 Computer/Copier Mtce Contrad p/nmch 300 50% 23 23 23 23 23 140 3.4 S.4 3.4 3.4 3.4 42.0 TravelPerdierns 21 p/per 1700 0% S0 30 30 30 30 400 136.0 136.0 136.0 136.0 136.0 630.0 1,229.5 TOTAL COMPONENT BASELINE COST 6,505.9 NOTES TO THE TABLES I/ Noe that this is an averVa S 30 HL staff 2/ 10 days/month @ Tsh 5000/day 66 Annex B.5 Agricultural lIformaton Systems and Services 67 Annex C AGRICULTURAL INFORMATION SYSTEMS AND SERVICES PROJECT COMPONENT DESCRIPON Introduction This component will focus on strengthening, rationalizing and expanding the agricultural Sector information used by the Government institutions and private sectors in the Agricultural Sector. Priority areas of financing would be some tasks aiming to improve the country's capacity to produce reliable information at the national, regional and district level, about the following topics: (a) Area under crops, production and yield; (b) Livestock numbers; and (c) Marketing and trade information The project would also finance some items/activities which aim to enhance institutional capacity for the timely analysis and dissemination of the information produced, as well as some external assistance to identify additional information requirements which will increase in the context of the on-going liberalization process and to develop adequate procedures to collect and provide it as needed. Tasks 2. The five specific tasks to finance would be to: (a) carry out a national sample census of agriculture (the last one was done in 1971/1972). This will yield bench mark data on the structure of agriculture; (b) improve and expand the subsequent surveys, so as to provide adequate data for planning on an annual basis. (c) carry out a pilot survey in one of the main crops using a different and more cost-effective methodology. This will provide an evaluation (as well as experience) of cheaper and more timely procedures for data collection. (d) improve the crop monitoring and early warning unit (CMEWU) capacity for rainfall data collection and agricultural data collection (the latter at the district level, in a monthly basis). (e) enhance the Marketing Development Bureau (MDB) capacity for better collection and dissemination of marketing and trade information. 68 Annex C 3. National Sample Census of Agriculture: Specific activities to finance would include: (a) Procurement of equipment and transport (b) Printing of questionnaires, instruction manuals and publicity material. (c) Three stages of training for the census staff, namely: (i) general instruction on census procedures, for Headquarters, regional and district staff; and for the enumerators; (ii) training of field staff for area measurements (minor or 'Vuli" season); (iii) training of field staff for area measurement and crop cutting (Major or "Masika" season). (d) Distribution of equipments, questionnaires, instruction manuals and publicity material (e) Listing of "Ten-Cell Leaders' (Balozi) and households (f) Interviews and measurements for Vuli season (g) Interviews and measurements for Masika season (h) Data entry and verification (i) Data editing and data processing G) Preparation and printing of the census reports (k) External consultancy in data processing O) External consultancy in report writing and preparation (m) Professional training (long term courses, short term courses, study tours, seminars, in-service training). It is important to note that, although training is mentioned as if it were a 'census" activity, it will continue to be relevant even after the census. Agricultural Information Systems and Services 69 4. Annual Surveys: Activities to finance in support of the annual surveys include: (a) Replacement of field equipment for enumerators, supervisors and Headquarter supervisors (20% of the basic field equipment each year). (b) Replacement of 15% of the office equipment/machinery and transport in year 4. (c) Three stages of training for the survey staff, as described for census staff. However, the training for the annual surveys will be about 3 weeks courses in contrast to about 8 week courses for the census. (d) Printing and distribution of questionnaires, instruction manuals and publicity material. (e) Interviews and measurement for Vuli and Masika season (f) Data entry and verification (g) Data editing and data processing (h) Short term external consultancy in questionnaire design (only year 2 of the project) (i) Short term external consultancy in data processing (only year 2 of the project) 0j) Preparation and printing of the survey reports 5. Pilot Sun= The following activities would be supported to undertake a pilot survey: (a) Design of listing forms for the growers of the pilot survey crop which must include the following information: (i) Farm/Farmer identification (ii) Area under and/or number of the crop trees 70 AnnxC (iii) Location of the farmers and the farm holdings (year 2) (iv) Complete listing of growers of the crop to be surveyed (year 2). Regions in which coffee production is minimal could be excluded. Because of the importance of listing farmers to the success of the survey, IDA and the Government would have to agree on the detailed steps and timing of the listing of coffee growers according to the above conditions before the funds are released to fund the annual agricultural survey in the third year. (b) Table and questionnaire design (year 3) (c) Sample design (year 3) (d) Field enumeration (year 3) (e) Data entry and verification (year 3) (f) Data editing and data processing (year 3) (g) Preparation and printing of the pilot survey report (year 3) (h) Evaluation of the results (year 3) (i) Three month external consultancy in sampling design and questionnaire design (year 2/3, after the listing operation is completed) (j) Three months external consultancy in data processing (year 3) (k) One month external consultancy in sampling, for evaluation of the accuracy and precision of the survey's results (year 3, after the data processing is completed) 6. Improving CMEWU's Capacity: Support would be for two activities: (a) agrometeorological data collection; and (b) agricultural crop data. Agro-Meteorological Data Collection would cover: (i) Annual replacement of rain gauges and measuring cylinders (ii) Annual inspection and training of 250 rainfall stations (iii) Procurement of equipment (computers) and transport Agricultural Information Systems and Services 71 (iv) Consultancy in Agro-meteorology (v) Professional training (vi) Incentives for volunteers Agricultural Crop Data would cover: (i) Training for data collectors (ii) Supporting field visits (iii) Procurement of equipment (computers) and transport (iv) Incentives for data collectors (v) Professional training (vi) Consultancy in agricultural statistics 7. ImDroving the Marketing DeveloDnment Bureau's (MDB) Capacity: The aim is to expand and improve capacity to monitor agricultural markets as liberalization progresses. The project would support, one year external consultancy in marketing and trade in a market-oriented economy (year 3), once the liberalization process has further expanded and the new framework is more clearly settled. Improving the communication facilities, which is common to all the sub-component's of the agricultural information component, including improvement of marketing and price information, would be done through installation of radio systems. The project would support their purchase as follows: (a) One unit at the CBS Headquarters in Dar es Salaam; (b) One unit at the CMEWU Headquarters in Dar es Salaam; (c) One unit at the MBD Headquarters in Dar es Salaam; and (d) Twenty units (one for each region) at the RALDO's offices; 72 Anex C WAYS TO UTILIZE REMOTE SENSING FACILITIES FROM HARARE (ZIMBABWE) 8. There is unanimity among the consulted institutions about the use of remote sensing for collecting agricultural crop data: Remote sensing is not usable for satisfying their current needs. There is a remote sensing unit installed at the Institute of Resource Assessments in Dar es Salaam. There is also an FAO-funded regional project in remote sensing based in Harare. The only agency which is using information from these sources is the CMEWU, which receives information about rainfall. This information, although is considered useful for historical and documentation purposes, does not fulfill the CMEWU's needs of forecasting production, essentially because of: (a) Lack of timeliness; and (b) Inadequate coverage. It is believed that the remote sensing technology will evolve and will therefore be able to bring more usable data. However, computerized rainfall stations are also evolving and becoming progressively cheaper and, therefore, the advantages of using remote sensing for rainfall data collection in a near future are not clear and are unlikely to materialize. MOA - CBS MEMORANDUM OF UNDERSTANDING (ELEMENTS TO BE INCLUDED) 9. MOA and CBS would agree that the national sample census of agriculture and subsequent annual surveys will be carried out jointly by both institutions. The agreement should last at least 5 years (project's life). Both institutions should agree also to establish mechanisms of coordination and of pooling their resources for undertaking the census and the surveys. The coordination will include: (a) continuation with the current technical committee, whose composition would be explicitly included in the memo. The committee will be the Technical Authority for the census and survey works and will be co-headed by one professional from the MOA and another professional from Central Bureau of Statistics (CBS); (b) the allocation of part of the present staff and material resources from both institutions to the census and survey works; and (c) the allocation of all the project-funded resources for the census and survey works. COST RECOVERY MECHANISMS 10. This point focuses essentially on the possibilities of selling publications and/or services to cover some costs of the services. In the present context, these possibilities are almost non-existent. Firstly, the information that is currently being produced is Agricultural Information Systems and Services 73 basically government-oriented. Secondly, the institutions involved in the production of agricultural information are lacking the capacity to produce and publish reliable data on a regular basis (as a matter of fact, to improve such capacity is the core of this component. As the quality and the timeliness of the data improve, prospects for cost recovery charges would also improve. This is especially true for the MDB's market information bulletins and, to a lesser degree, the CMEWU publications. A marketing strategy has to be worked out to ensure that selling data does not chock off demand for data. PERFORMANCE INDICATORS AGAINST WICH TO MEASURE PROGRESS OVER THE 5 YEARS (a) Agricultural Census: (i) Listing of Balozi and household is completed; (ii) Field work for vuli season is completed; (iii) Field work for masika season is completed; (iv) Preliminary report is completed; and (v) Final report is completed. As means of verification, for the items a,b and c the mechanism would be the inspection of the material produced. In other words, once each of the first three operations is reported as completed, the lists and/or questionnaires should be made accessible to the World Bank's supervision missions for the project. For the items d and e, copies of the reports would be sent to IDA. (b) Annual Surveys: (i) Field work for vuli and masika season is completed; and (ii) Reports are completed. Means of verification for item (a) would be the same as of items (b) and (c) of the census field work. Meanwhile the release of the report would be a mean of verification by itself. {c) Pilot Surve (i) Listing of coffee growers is completed; (ii) Field enumeration is completed; and (iii) Survey report is completed. Means of verification for items (i) and (ii) would be again the inspection of the farmers listing and the completed questionnaires. For item (iii), a copy of the report should be sent to IDA. 74 Anne C (d) Iproving CMEWU's Capacity: (i) Replacement of equipment takes place; (ii) Inspections and training are carried out; and (iii) CMEWU's monthly and quarterly bulletins are published timely. Verification would be by way of CMEWU's providing detailed annual plans for items (i) and (ii). Once such plans are approved, the corresponding activities would be made available, upon request, to World Bank supervision missions. The release of the bulletins would be considered a mean of verification by itself. TERMS OF REFERENCE FOR CONSULTANCIES O) CONSULTANCY IN DATA PROCESSING (CENSUS) DESIGNATION* Data Processing Expert OUALIFICATIONS: The incumbent should have a University degree in computer/statistics and at least five years of hands-on experience in processing data from agricultural census/surveys. Must be fluent in English, experience of working in an African country is desirable. DUTIES: To collaborate with the CBS-MOA Technical Committee in the selection of computer equipments and software. - To design, develop and test (fine tuning) the data entry system for the census. This includes writing the computer program(s). - To conduct the operation of the data entry system. - Supervision of the data entry works, including quality control - To write, test and operate the computer program(s) to be used for data tabulation - To train the local staff in the use and installation of all the software used in the census - To review, in close collaboration with the local staff, the data editing specifications and the data tabulation plan - to write exhaustive documentation for all the above - To submit progress and final reports upon request Agricultural Information Systems and Services 75 APPROXIMATE PERIOD OF CONSULTANCY First Consultancy: December 1993 - February 1994 (3 months) Second Consultancy: October 1994 - December 1994 (3 months) Third Consultancy: October 1995 - March 1996 (6 months) DUTY STATION: Dar es Salaam (ii) CONSULTANCY IN CENSUS REPORT PREPARATION DESIGNATION: Agricultural Census Expert OUALIFICATIONS: The incumbent should have a University degree in Statistics and at least five years in senior position in planning, organization and conduct of agricultural census in developing countries. Must have experience of drafting census reports. Must be fluent in English. DUTIES - To analyze the census data - to prepare and write the final report of the national agricultural census. - to train local counterparts in both data analysis and data reporting - to produce reports as and when required. APPROXIMATE PERIOD OF CONSULTANCY August - October 1995 (3 months) DUTY STATION: Dar es Salaam Ciii) CONSULTANCY IN SAMPLING DESIGN AND QUESTIONNAIRE DESIGN (PILOT SURVEYS) DESIGNATION* Statistics Expert OUALIFICATION: The incumbent should have a University degree in Statistics and at least ten years experience in the design of rural surveys in developing countries. Must be fluent in English. 76 Annex C DUTIES: In collaboration with the senior local staff, the incumbent will set the target degree of precision/accuracy for the survey's estimates. - To design the survey questionnaire - to design the sample. Tbis include the identification of the farmholdings to be enumerated - To test the sample against the listing of farmers/farms; and - To write exhaustive documentation for all the above, including quantitative analysis to be carried out to get the final estimates and their precision - To produce reports upon request APPROXMATE PERIOD OF CONSULTANC March - May 1995 (3 months) DUTY STATION: Dar es Salaam *lv) CONSULTANCY IN DATA PROCESSING (PILOT SURVEY) DESIGNAION: Data Processing Expert OUALIFICATIONS: Same as the Census Data Processing Expert DUnTIES - To design, develop and test the data entry system for the survey. This includes writing the computer program(s) - To conduct the operation of the data entry system - Supervise of the data entry works, including quality control - To write, test and operate the computer program(s) for data editing - To write, test and operate the computer program(s) to be used to calculate the survey estimates - to write, test and operate the computer program(s) to be used to calculate the precision of the survey estimates - To produce reports upon request Agricultural Information Systems and Services 77 APPROXMATE PERIOD OF CONSULTANCY August - November 1996 (3 months) DUTY STATIO: Dar es Salaam (v) CONSULTANCY IN SAMPLING/STATISTICS (PILOT SURVEY) DESIGNATION Statistics Expert OUALIFICATIONS: Same as Consultancy for Pilot Survey DUTIES: To supervise the pilot survey results On the light of the evaluation, to propose plans and to make recommendations for the following years - To produce reports upon request APPROXIMATE PERIOD OF CONSULTANCY One month, November 1996. It is highly desirable that this consultancy should take place during the last month of the consultancy for the Pilot Survey to enable overlap. This would enable both consultants to work in close collaboration, which would be useful. DUTY STATION: Dar es Salaam (vi) AGROMETEOROLOGICAL CONSULTANCY (CMEWU) DESIGNATION: Agrometeorological Expert OUALIFICATION: The incumbent should have a University degree in Agrometeorology, as well as at least five years experience in senior position in Agrometeorological institutions. Must be fluent in English. Working experience as a consultant in developing countries is highly desirable. DUTIES Under the overall guidance and supervision of the FAO Food Security Adviser, the consultant would: 78 Annex C - Assure that all computer systems remain operative and that staff are properly using the programs installed. - Ensure that the program to convert rainfall and crop data to yield forecasts is working satisfactorily - and train staff in recalibrating the model against the annual survey results of the previous season. - Monitor and provide assistance in the preparation of two early forecasts of crop yield, for the food crops monitored by CMEWU. - Review the progress made by the unit in using remote sensing data provided by the FAO regional project based in Harare; and provide support and training as required. - Ensure that the rainfall data submitted by rainfall reporters is in order, by checking the methods of collecting and submitting the data, and make recommendations for improvement. - Assess the need and identify opportunities for overseas training requirements. - Carry out on-the-job training in all areas relating to the rainfall data collection and processing techniques being utilized. - Contribute to the improvement of the analysis and presentation of the food security situation, including the Food Security Bulletins. - Prepare reports upon request In addition, in the final year of consultancy, the incumbent would: - Review the network of rainfall stations used by the CMEWU) and make recommendations for its future improvement. - Identify future technical assistance requirements. APPROXIMATE PERIOD OF CONSULTANCY April - July 1994 (4 months) April - May 1995 (2 months) June 1996 (1 month) DUTY STATION: Dar es Salaam (vii) AGRICULTURAL STATISTICS CONSULTANCY (CMEWU) DESIGNATION* Agricultural Statistician Agricultural Informaton Systems and Services 79 OUALIFICATIONS: The incumbent should have a University degree in Agricultural Statistics and at least five years experience in senior position in an Agricultural Early Warning Agency. Must be fluent in English. Working experience in an African country is desirable. DUTIES Under the overall guidance of the FAO Food Security Advisor, this consultant will: - Conduct a thorough analysis of the data requirements of the CMEWU. - Review and assess the current methods used by the CMEWU to gather crop area data from the field. - On the basis of the above assessment, propose a system to gather reliable nationwide crop area data which can be fully maintained by the CMEWU, either on its own or in collaboration with other government agencies. - Prepare, organize and conduct training for field level staff. - Supervise data collection activities and develop a system for computer processing and analysis. - Collaborate with all the relevant agencies in producing final estimates of area, yields and production forecasts for each staple food crop, based on the data obtained. - Assess the need and identify opportunities for overseas training requirements. - Carry of on-the-job training in all areas related to the data collection and processing techniques being used. - contribute to the improvement of the analysis and presentation of the food security situation, including the Food Security Bulletins. - Assess, in retrospect, the quality of the crop area data generated during the previous season. - Produce reports upon request. In addition, in the last year of consultancy, the consultant will: Review and assess the methods utilized by the CMEWU. On the basis of the above assessment, he will make recommendations for improvement in future years. 80 Annex C APPROXIMATE PERIOD OF CONSULTANCY January - August 1994 (8 months) April - July 1995 (4 months) April - July 1996 (4 months) DUTY STATION: Dar es Salaam (viii) CONSULTANCY IN MARKETING AND TRADE (MDB) DESIGNATION: Marketing and Trade Expert OUALIFICATIONS: The incumbent should have at least a masters degree in economics, with specialization or experience in agricultural marketing. He should have at least five years of working experience in government agencies dealing with agricultural marketing/trade monitoring and regulation in developing countries. Familiarity with African environments would be highly desirable. DUTES: Although the marketing and prices of traditional export crops are still controlled, it is expected that they will be liberalized in the near future. The liberalization will lead to: The need of monitoring prices and marketing conditions for a series of products and input which still remain under official dominion. The request for more precise and timely information, coming from a strengthened private sector. The need of a thorough analysis of the marketing and trade information, in order to ensure, through regulations, fair and transparent conditions for the liberalized market of agricultural commodities this will unavoidably change the role and needs of MBD in such a manner that it is now impossible to establish precisely the terms of reference for external assistance in the upcoming years. Therefore, it is proposed that a one year external consultancy be budgeted for and the terms of reference would include the following: Assess of the MBD's performance and needs. On the basis of the assessment, make recommendations for improvement in the future. To identify the needs of recruiting additional staff to accomplish the new role of MDB. Agrlcultural liformatdon Systems and Services 81 - To identify the needs/opportunities of training. - To identify the needs of technical assistance. - To produce reports upon request. APPROXIMATE PERIOD OF CONSULTANCY May 1995 - April 1996 (12 months) DUTY STATION: Dar es Salaam 82 AnnexD ANNEX D.1 SELECTED PROJECr CosT TABLES UNITED REPUBLIC OF TANZANIA AGRICULTURAL SECTOR MANAGEMENT PROJECT Project Cost Sumnary TSH USS X Total ------------------------------ --------------------------- % Foreign Base Local Foreign Total LocaL Foreign TotaL Exchange Costs A . MOA RATIONALIZATION 1. PARASTATAL DIVESTITURE 32291 108129 140420 92 309 401 77 2 2. FUNCTIONS RATIONALIZATION 526981 617991 1144972 1506 1766 3271 54 13 3. NEW MISSIONS & MGT SYS 83776 34104 117880 239 97 337 29 1 4. REG/DIST. RATIONALIZATION 115027 1575 116602 329 4 333 1 1 5. STRENGTH. MGT. SYSTEMS 696990 506310 1203300 1991 1447 3438 42 13 Sub-TotaL 1455065 1268109 2723175 4157 3623 7780 47 30 B . POLICY 1. POLICY AGENDA 303765 588945 892710 868 1683 2551 66 10 2. INST. STRENGTHENING 452903 1153806 1606710 1294 3297 4591 72 18 Sub-TotaL 756668 1742751 2499420 2162 4979 7141 70 28 C . AGL. INFO. SYSTEM 1. AGRICULTURAL CENSUS 606217 826318 1432536 1732 2361 4093 58 16 2. AGRICULTURAL SURVEY 1436367 639627 2075993 4104 1828 5931 31 23 3. EARLY WARNING - CROP DATA 62492 70332 132825 179 201 379 53 1 4. EARLY WARNING - RAIN DATA 25497 106977 132475 73 306 378 81 1 S-ub-Total 2130574 1643255 3773829 6087 4695 10782 44 42 Total BASELINE COSTS 4342308 4654116 8996424 12407 13297 25704 52 100 PhysicaL Contingencies 0 0 0 0 0 0 0 0 Price Contingencies 303349 235144 538493 867 672 1539 44 6 Total PROJECTS COSTS 4645657 4889260 9534917 13273 13969 27243 51 106 st- -=======-=s:lssu=s:==rs=zz z==============zz==wzt===Xz =zss=.zz=uusxwzfl..= .................... ...........................................0 _ .5/20/199 11:12_________________________________ Values Scaled by 1000.0 - 5/20J1993 11:12 UNITED REPUSLIC OF TANZANIA t AGRIOJLTURAL SECTOR MANAGENENT MROJECT t Summary Accounts by Year t Totals Including Contingencies Totals Including Contingencies TSH USS 93/94 94/95 95/96 96/97 97/96 Total 93/94 94/95 95/96 96/97 97/98 Totat 1~~~~~~~~~~~~.s ,NS04N CO=sggggSTXUS . sg ... .......Sa. ....a..... a s s......................... Swn ........... s ssx.sY$Y== ................... =^ Ss=sYg................=.. I. INVESTMENT COSTS A. VEHICLES L EQJIPHENT 1165865 9161 23046 623399 10040 1831511 3331 26 66 1781 29 5233 B. WORKSHOPS & SEMINARS 152353 135859 119971 81681 79173 569038 435 388 343 233 226 1626 C. TECH. ASSISTANCE (INT'L) 394522 296819 283352 75955 84334 1134982 1127 848 810 217 241 3243 D. TECH. ASSISTANCE (LOCAL) 183079 172996 167027 139096 136982 799182 523 494 477 397 391 2283 23 E. TRAINING (INT'L) 38124 337561 234993 152690 28111 1141779 1109 965 671 436 80 3262 ft F. TRAINING (LOCAL) 85302 47125 33473 32563 33573 232036 244 135 96 93 96 663 G. RATIONALIZATICN FUND 710850 0 0 0 0 710850 2031 0 0 0 0 2031 Total INVESTMENT COSTS 3080095 999822 861863 1105385 372213 6419378 8800 2857 2462 3158 1063 18341 ...~~~~- --- --- -- -- .......... _.a =st8Y=..s=s-sas ...... ..........................................=.- .....----.-...... s.-------............-.-- 11. RECURRENT COSTS A. PERSONNEL COSTS 334263 265191 273412 281888 290626 1445381 955 758 781 805 830 4130 B. VEHICLE OPERATING COSTS 192285 160136 166422 170218 175495 864555 549 458 475 486 501 2470 C. OFFICE SUPPLIES 150132 120340 124070 127917 131882 654341 429 344 354 365 377 1870 0. BLDG. RENT A MAINTENACE 28434 29315 30224 31161 32127 151262 81 84 86 89 92 432 Total RECUIRRENT COSTS 705113 574962 594129 611184 630130 3115539 2015 1643 1698 1746 1800 8902 - ------ssszsgS tS-- SZZ--Xt----tSf-f======S==.. ...=5= =2===== ... ..... Total PROJECT COSTS 3785209 1574804 1455992 1716568 1002344 9534917 10815 4499 4160 4904 2864 27243 ____________________________..... = z... ... ...... X z .z.... .........a...=..... = = =.......................________________________.________......................................................... _________-___-__________ VaLues Scated by 1000.0 5/20/1993 11:15 fl 00 ANNEx E TEMS OF REFERENCE FOR KEY POSITIONS AND CONSULTANTS5 Project Coordinator DURATION: Initially for a period of three years, with an option for two years extension QUALIFICATIONS: A Tanzanian national with a post-graduate degree in economics, business management or related field; five years experience as an administrator of various programs or projects in the government or parastatal organizations; wide experience in implementation of development programs preferably in agriculture and in dealing with donor agencies; and experience in collaborating with international organizations. Should possess leadership qualities and ability to deal with people at both technical and management levels. KEY FUNCTIONS: 1. Supervise the work of the project accountant, training coordinator and MOA rationalization task manage. 2. Review and ensure that annual work plans and budgets, proposed by the component managers, are consolidated and presented for approval by the inter-ministerial steering committee. 3. Ensure that quarterly progress reports including expenditure statements are prepared and submitted to the ISC for approval. 4. Convene and take minutes of the ISC and the MOA Advisory Technical Committee meetings to regularly review project progress including identification of implementation problems and suggesting solutions. 5. Ensure timely release of project funds for each component. 6. Expedite procurement of equipment, supplies and services and see that the component implementors get them on time. 7. Arrange annual audits of expenditures of each component and the project as a whole. 8. Assist the ISC in arranging for mid-term review of the project and the project completion report. 'Othrs ar included in Annexes A to C. Terms of Reference for Key Positions and Consultancies 85 9. Ensure that project management and operational guidelines, as approved by the ISC are followed in implementing the components. 10. Establish procedures and criteria for monitoring and evaluation of progress, and analysis of the impact of project components and the project as a whole. 11. Ensure that reporting requirements by donors including annual work programs, and quarterly progress reports and related minutes of the ISC meetings are met. Project Accountant Terms of Reference DURATION: Initially for a period of three years, with an option for a two years extension QUALIFICATION: A Tanzanian professionally qualified in finance, management accounting and/or cost accounting, from a recognized institution. Should be computer literate. EXPERIENCE: Post qualification experience of minimum of 10 years of which at least 5 years should be at a senior management level, either in government or parastatal organization. Past experience on an internationally aided project would be an advantage. KEY FUNCTIONS: Financial management: Supervise all financial activities for the project, including reports to donors and govermnent, and maintenance of statutory records in accordance with government regulations and donor requirements. Coordinate with designated auditors, for annual audit in accordance with donor requirements. Annual work program and budgets: Interact with the implementors of project components, the project training officer and the MOA rationalization task manager for preparation of annual work programs, budgets and allocation of funds. Accounting and disbursement: Coordinate with the donors for release of funds, supervise direct disbursements and operations of special accounts, develop and maintain project accounting records. Expenditure Monitoring: Establish a record of actual disbursement matched with provisions made in the project documents under each 86 Annex E major category of expenditure, and compile data showing current and cumulative actual expenditure and commitments, under each category and project component. Systems and Procedures: Design and implement a computerized management information system for monitoring and reporting project expenditure information to different levels of management and to the international funding agencies. Training: Train and develop fellow Tanzanian staff on the above activities to maintain project benefits after funding terminates. Project Trainine OMcer Terms of Reference OBJECTIVE: The Government is implementing an Agricultural Sector Management Project with support from the IDA. A key aspect of this project is the training of staff in the Ministry of Agriculture in the techniques of 'indirect management' of the agricultural economy, through incentive structures, regulation and the provision of public goods. The implementation of the project in the Ministry of Agriculture will be managed through the office of the Project Coordinator, attached to the office of the Commissioner for Planning and Marketing. The Project Training Officer will be located in the office of the Project Coordinator, and will be responsible for ensuring that a coherent training program is put in place for the staff. QUALFICATIONS: Masters degree in economics, with additional training or experience in management of training and personnel development programs. He/she should have at least five years of experience in policy analysis. DURATION: Three years. KEY TASKS: The Project Training Officer would be responsible to the Project Coordinator. Responsibilities would be to: 1. Develop a five year plan for training of MOA staff in the Sectoral Planning Department, using resources allocated for training under the ASMP project, and other training resources, within the first 3 months of the assignment; Terms of Reference for Key Positions and Consultancies 87 2. Formulate an Annual Training Plan every year. This Training Plan will be based very closely on the Annual Work Plan for the Department, and will endeavor to provide staff with the training opportunities needed for an efficient implementation of the Department's work program. The annual plan is to be prepared in collaboration with the Commissioner for Sectoral Planning and the Project Coordinator; 3. Assist the key staff in the MOA to put together a Personal Training Plan, following agreement on the Annual Training Workplan. These Personal Training Plans would have to be sanctioned by the unit chief, and the Head of the Sector Planning Department. This personal training plan would be drafted in outline for the 5 years of the Project. Each year, an Annual Personal Training Plan would be defined, indicating, for each staff, the mix of study tours, short, medium and long courses, on the job training and personnel services contract opportunities which would be made available during the year. 4. Manage the various elements of the training plan on a day to day basis. This will imply monitoring training schedules, work schedules, study deadlines in order to achieve an effective implementation of the Departmental Work Plan, while improving staff capabilities. Management of the Training Work Plan will entail very close coordination with the Heads of Departments, and the Project Coordinator. 5. In collaboration with the Training Cooperating Agency, manage the training budget from both local and international sources allocated to the Training Work Plan, once it has been approved by the Ministry of Finance (ocal) and IDA (foreign). Budgetary matters would be channeled through the Project Accountant, and the Training Cooperating Agency. 6. Prepare an annual report on achievements through the Training Program, including a listing of reports produced and training courses attended. This should be tallied with the targets formulated for the year in the Annual Training Workplan. 7. Train a Tanzanian to take over the task after three years. MOA Functional Rationalization Task Managfer Terms of Reference DURATION: Initially for a period of three years, with an option for two years extension. 88 Annex E QUALIFICATION: Post graduate degree in economics, business management or related fields, with background knowledge or work experience in agriculture. EXPERIENCE: A Tanzanian national with at least 10 years experience in strategic management and organizational development in agricultural institutions including familiarity with project and program management, policy implementation and divestiture. Strong familiarity with the mission, objectives and programs of MOA. Should have leadership qualities and should be a team player. KEY FUNCTIONS: 1. Provide guidance to the Rationalization Task Force and serve as the secretary for its deliberations; 2. Orient the groups working on rationalization to define a clear focus and coherent goals, and bring the individual activities together in a long-term unified approach; 3. Coordinate the activities of the various task groups and individual consultants, according to the action plans approved by the task force; 4. Prepare reports and provide for their distribution to all necessary parties ensuring adequate information flows between task groups and components of the project; 5. Participate in the design and implementation of individual action plans or related technical studies as determined by the task force and task groups; 6. Develop a training program for MOA staff on topics related to the rationalization process, and coordinate training activities for groups or individuals taking over the spun off MOA functions; and 7. Coordinate the annual rationalization review and planning workshops as well as preparation for the mid-term and final project reviews. TANZANIA AGRICULTURAL SECTOR MANAGEMENT PROJECT EatFinati d Sc edule of Credit Diabursenat by IDA Fiwal Year Semeger 1/ (US$ Million) IDA FY Estimated Estimated Cum. Diab. Standard Cum. Diab. and Disbursmemet Cumulativc a a % of Diaburwemt according to Semnester 2/ Diaburwemat IDACredit Profde 3/ Std. Profile Disbursement Profiles 26 93-l1 0.50 0.50 2% 0%
Группа Всемирного банка · Staff Appraisal Report
Tanzania - Agricultural Sector Management Project (ASMP)
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