Madagascar - Second Social Fund Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-6635-MAG MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT IN THE AMOUNT EQUIVALENT TO US $40.0 MILLION TO THE REPUBLIC OF MADAGASCAR FOR A SOCIAL FUND II PROJECT AUGUST 15, 1995 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 EQUIVALENT Currency Unit = Malagasy Franc (FMG) U.S. $1 (June 1995) = FMG 4300 WEIGHTS AND MEASURES Metric System FISCAL YEAR January I to December 31 ABBREVIATIONS AND ACRONYMS AGETIPA Urban Works Development Agency (Agence d'Ex&cution des Travaux d 'Interet Public de Antananarivo) EMSAP/PASAGE Economic Management and Social Action Project (Projet des Actions Sociales et Appui ai la Gest;on Economique) FID Social Fund (Fonds d'Intervention pour le Developpement) ICB International Competitive Bidding NCB National Competitive Bidding M&E Monitoring and Evaluation MIS Management Information System NGO Non Governmental Organization (OrganisationA Non Gouvernmentale) SECALINE Food Security and Nutrition Project (S&urite Alimentaire et Nutrition Elargie) UNDP United Nations Development Program UNICEF United Nations Children's Fund  FOR OFFICIAL USE ONLY MADAGASCAR SOCIAL FUND II PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Madagascar Beneficiary: Fonds d'Intervention pour le Developpement (FID) Poverty: Program of Targeted Interventions Credit Amount: SDR 25.5 million (US$40.0 million equivalent) Terms: Standard IDA terms, with 40 year maturity Commitment Fee: 0.50% on undisbursed loan balances, beginning 60 days after signing, less any waiver. Financing Plan: IDA US$40.0 million 88 percent Government and Beneficiaries US$ 5.4 million 12 percent Total US$45.4 million 100 percent Economic Rate of To assure that FID finances priority and environmentally sound Return: subprojects, economic and environmental analyses will be applied to subprojects financed by FID whenever necessary. The overall economic rate of return is expected to be well above 15%, based on a sample of subprojects. The actual rate of return will depend on the final distribution among different types of subprojects. Staff Appraisal 14489-MAG Report: MIS Task Code: MG-PA-35669 Map: IBRD 20035RI This document has a restricted distribution and may be used by recipients onJy in the performancc of their official duties. Its contents may not otherwisc be disclosed wiLhout World Bank authorization.   MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF MADAGASCAR FOR A SOCIAL FUND H PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed development credit to the Republic of Madagascar for SDR 25.5 million, the equivalent of US$40.0 million, on standard IDA terms with a maturity of 40 years, to finance the Social Fund II Project. 2. Country and Sector Background. Madagascar is a striking example of unfulfilled economic potential. The country's varied assets include: low-wage and trainable labor; good soils and climate; a rich eco-system that could attract substantially more tourism; and low population density (12 million inhabitants on a land area of 587,000 square kilometers). Yet, past economic policies and demographic growth of nearly 3% a year have led to two decades of economic decline, during which per capita GDP plummeted by 40%. Agriculture dominates the economy, constituting a third of GDP and 60% of export earnings, and is the main source of income for 80% of the population. The industrial sector accounts for only 14% of GDP but is on the verge of change: due to policy reforms introduced in the mid-to-late 1980s, the sector is becoming increasingly private-owned and export-oriented. On the political front -- and despite its economic difficulties -- Madagascar has made a successful and peaceful transition from an authoritarian state to a pluralistic democracy, largely due to the consensus ethics of the Malagasy society. However, the same search for consensus (this time among members of the ruling coalition) has delayed the emergence of clear-cut decisions on economic reform. 3. Poverty and Social Conditions. Poverty has been increasing steadily in Madagascar since the early 1960s.' An estimated 54% of the population was living below the poverty line in 1993 (using a poverty line reflecting only 90% of the FAO-recommended daily caloric intake). Rural areas are estimated to account for 92% of the poor. The quality of basic education and health services has declined sharply: Madagascar is one of the few countries in the developing world where younger generations are likely to fare worse than their parents in terms of educational attainment. The infant mortality rate is 107 per 1000 live births in rural areas and 75 in urban areas. Vaccination coverage of children aged 3 to 60 months is 36% which is low even by sub-Saharan African standards. Between 45% and 49% of children are malnourished (measured as two standard deviations below the international norms of height or weight for age). Housing conditions are poor, with 53% of households living in a single room and poor households crowded in at the rate of 6 Madagascar Poverty Assessment, draft of April 1995  Madagascar Social Fund II Proiect Memorandum of the President Page 2 persons per room. Over 60% of households obtain their water from easily polluted sources such as lakes, rivers and ponds, and an additional 10% depend on public taps. 4. Government Strategy Addressing Poverty. The Government has long stated that poverty reduction is a cornerstone of its agenda. Concrete steps recently taken in that direction include implementation of the ongoing Food Security and Nutrition project, approved in 1993, and the decision to float the Malagasy Franc (FMG) in May 1995, aimed at improving the rural terms of trade. Economic policies are also becoming more liberal. These changes should foster sustainable, poverty-reducing growth in the long run. Such an outcome requires first and foremost that Madagascar create the conditions for sustainable growth, by removing constraints to private sector-led development and by investing in such essential complements as physical infrastructure and human capital. During this transition, Madagascar's large and growing numbers of poor will require attention. The Government has requested donor support to establish a modest social safety net, including labor-intensive works, targeted nutrition programs and support for workers rendered jobless by public sector restructuring. The proposed project is a part of these poverty alleviation efforts and draws on the successful experience of the ongoing project. The Government is also contemplating the extension of the activities of the existing AGETIPA (Urban Works Development Agency) into municipalities outside Antananarivo. In addition, the process of reallocating public expenditures in favor of priority areas has already started in the context of the government's macroeconomic dialogue with the Bank and IMF. 5. Project Objectives. The proposed project's objectives are to provide transitional income support and in-kind services and encourage community development initiatives through partnership with beneficiary communities and NGOs. To that end, the proposed project seeks to help finance activities that would: create employment; develop health and education facilities; assist farmers by building farm-to-market roads, protecting land against soil erosion and developing arable land; and promote private sector activity, particularly for micro and small enterprises (see Para. 19 and Annex C for summary and year-by-year quantitative targets, respectively.) 6. Project Description. The proposed project will support the nationwide expansion of the activities of the I onds d 'Interveltion pouir le D6veIoppement (FID), a social fund currently engaged in poverty alleviation activities in two of Madagascar's six provinces. FID was created under the Food Security and Nutrition Project as a means to channel part of the project's resources to address poverty, food insecurity and malnutrition; it is expected to run out of funds beginning in 1996. The proposed project is based on the successful approach of this ongoing project and therefore best described in terms of FID's purpose, setup and achievements (Box 1). An illustration of a FID subproject is provided in Box 2. Total project costs are US$45.4 million and have been established on the basis of the rate of execution achieved by FID to date.  Madaeascar Social Fund II Project Memorandum of the President Page 3 Box 1. The FID approach Purpose. FID is a social fund which provides grants to local communities for carrying out subprojects aimed at developing local small infrastructure, micro enterprises and other sustainable income-generating activities. FID also helps the communities and participating NGOs in preparing and appraising, and eventually executing, subprojects. Where work is to be contracted out, FID takes charge of bidding and supervision. As demonstrated since its inception, the fund is an effective mechanism to create employment (in carrying out infrastrunture works), develop private sector activity and capacity (by providing technical assistance, training and credit to micro-enterprises), and support social services (through construction, rehabilitation and provision of supplies in the health, education, water/sanitation and housing sectors). Operational Features. Significant features of FID funding are as follows: -- Funding cap per subproject: A maximum of US$50,000 equivalent (US$100,000 for transport infrastructure subprojects). -- Criteria for subproject selection: Poorer areas receive priority. All subprojects must demonstrate community support by incorporating some form of local contribution. Some economic analysis is required for productive sector subprojects, such as traffic flow analysis in the case of transport infrastructure. Environmental assessments are also required where relevant (e.g., road projects or those involving reforestation and erosion control). --Activities not eligibleforfunding: Recurrent activities or subprojects that: are of an emergency nature; already receive funding from other sources; have been eliminated from government or local authorities' investment programs; negatively impact the enviromnent; or are too sophisticated or heavily mechanized. -- Type of FlDfunding: Grants and "loans" are provided. For income-generating activities, beneficiaries are required to repay funds provided for equipment and working capital (training would be a grant), with interest at market rates. Repaid funds flow through FID (to help ensure that repayment takes place) and back to a conmmunity fund to finance similar activities (also see Para. 8). Achievements. To date, FID has achieved the following results: * over 25 km of roads; * facilities to irrigate 1,902 hectares of rice land; * 1,005 linear meters of bridges and crossings; * 4,338 square meters of schools and clinics; * protection of 469 hectares of agricultural land from erosion; * rehabilitation of 28,815 square meters of markets; and * creation of 213,000 person-days of temporary employment. These positive results are due to a combination of factors, some common to many social funds and others representing an innovative approach. First, subprojects are demand-driven. Second, autonomy from the government leaves FID) largely unregulated and unencunibered by bureaucratic procedures. FID also relies on strong partnership with NGOs, recognizing their key role in anti-poverty efforts in Madagascar. Further, subproject ownership is strengthened through beneficiary involvement at all stages and empowerment of communities, by allowing them to make their own decisions and putting in place a dynamic management structure capable of quickly respoi.ding to beneflciary requests. Finally, FID benefits from its emphasis on capacity building (among NGOs, micro-enterprises and municipal governments) as well as its decentralized structure, which has strengthened management and implementation of subprojects.  Madagascar Social Fund II Project M!emorandum of the President I'age 4 Box 2: A IFID Subproject Improves the Quality of Life in a Remote Area The province of Toliary is considered among the country's most vulnerable. Yet, a mix of interventions by Ffl) in this area is making a difference to the lives of ordinary pcople. In one remote sub-region, FID has rehabilitated a road, opening up a rich agricultural area once poor largely because of lack of access to the market. This road has also opened up a picturesque lake in the area to some tourism. In the samc area, FID rehabilitated a school using local materials provided by the community, and the design of the school has won praise from the communitv as it is sturdy yet simple. In this hot region without electricity, the school's design allows good ventilation and natural light, unlike the old structure which it replaced. The sub-region has also benefited from micro-irrigation projects. The package of interventions by FID has visibly altered the quality of life in this remote comer of Madagascar. 7. Project Implementation. FID has had a strong record in implementation -- over 140 subprojects have been financed to date (see summary of project achievements in Box I). FID's operations are guided by an implementation manual approved by IDA and the Government, covering: (a) subproject selection criteria; (b) model agreements and contracts; (c) procurement procedures; (d) financial management procedures; and (e) administrative procedures. Subproject proposals, prepared by communities with the participation of NGOs, are appraised by regional staff and presented to a Regional Advisory Committee for comments. Implementation responsibilities, by size of subproject, are shown in Table 1. Depending on the amount of financing requested, subprojects are approved either by the Regional Director, Executive Director or Board of Directors. Contracting is done by FID according to its manual of procedures, prepared in line with Bank guidelines. Modalities of the credit operations are being reviewed as part of the overall review of FID's operating procedures, and a revised manual of procedures will be prepared for the new project (see Para. 13). Table 1. FID Subprojects: Implementation Responsibilities Size of Subproject | Role of Community Role of NGO (if | Role of Consuiting Role of FID l ] applicable) | Firm l_ Under US$7,500 Identifies subprojects Helps community Appraises, finances and maintains after prepare proposal. and makes spot completion Executes works if any. _ check. From US$7,500 to Identifies subprojects Helps community Appraises, finances US$30,000 (Income and maintains after prepare proposal and and makes spot Generating Projects) completion works as a partner in check. In case of making the income- revolving credit funds generating activity assures that successful. Manages repayment takes revolving fund for credit if place. applicable. Conducts bidding for equipment if _________________ _ ______cost is above US$7,500. From US$7,500 to Identifies subprojects Helps community Designs and Appraises, finances US$30,000 (Civil and maintains after prepare proposal. and to supervises works and conducts bidding Works Projects) completion assure that tasks are for consultants and carried out. works. Above $30,000 Identifies subprojects Helps community Designs and Appraises, finances and maintains after prepare proposal. and to supervises works and conducts bidding completion assure that tasks are for goods, carried out. consultants and I _ _ __ _ _ _ I_ _ works.  Madagascar Social Fund 11 Project Memorandum of the President Page 5 8. Annual financial and technical audits will be carried out by external auditors as an integral part of monitoring and evaluation. In addition, FID will use subproject impact surveys and beneficiary assessment surveys on an ongoing basis to monitor project impact. Finally, two external impact evaluations will be carried out: one during the mid-term review, and the other, one or two years after final subproject commissioning. 9. Project Sustainability. FID contributes in several ways to the sustainable development of poorer communities in Madagascar. It helps build local capacity and supports subprojects of particular interest to the communities, as reflected in community contributions of up to 30%. Furthermore, income-generating activities help build community funds, which are regenerated regularly by repayments (including interest) from former recipients of amounts "loaned" for equipment and working capital. FID also prioritizes rehabilitation over construction, which should hold down incremental recurrent costs and thus further promote sustainability; indeed, the fund would finance new infrastructure only where the community commits to its proper maintenance. A Bank- supported study on municipal financing will, inter alia, examine the possibility of a long- term financial partnership between local governments and FID in developing local infrastructure. The study's recommendations on the role of FID will be reflected in revised project procedures at the mid-term review. 10. With respect to FID's own sustainability, IDA has thus far been its main donor but other donors (such as France and UNDP) have now expressed interest in financing the fund. The Government is also committed to a major social safety net program financed entirely out of its own resources, and is considering using FID for implementing one part of it. FID's contribution to poverty alleviation in Madagascar is likely to remain important until policies aimed at growth take effect and the central administration is able to service the needs of local communities effectively. It is not intended as a permanent institutional arrangement. 11. Lessons Learned from Previous IDA Involvement. As mentioned earlier, the ongoing Food Security and Nutrition project provides the model for a successful partnership among NGOs, communities and local authorities. It demonstrates the power of demand-driven activities focused on the beneficiary community. Critical elements of success have included: (a) involvement of beneficiaries at all stages; (b) systematic regional launch workshops involving all stakeholders, from cabinet ministers to poor farmers; (c) a decisive executive director who recruited competent staff, set them responsibilities and targets, and allowed them to work independently while monitoring performance in relation to agreed outcomes; and (d) the organization of FID along private sector lines, staffed with dynamic and competent managers. Based on this experience, few changes in approach are envisaged. Some rural roads have had difficulty in withstanding the rainy season. The poor quality of such works stems partly from the fund's mandate to develop untested small businesses and micro-enterprises. New construction techniques and methods are being tested in collaboration with the staff of other projects, to help resolve this problem. There have been other weaknesses, in  Madagascar Social Fund II Project Memorandum of tlze President Pape 6 marketing and cash-flow management, faced by subprojects aimed at micro-enterprise development. Revisions to the manual of procedures will address these concerns, with guidelines ranging from financial controls to road standards (see Para. 13). 12. Rationale for IDA Involvement. Tackling poverty is a cornerstone of the Bank Group's Country Assistance Strategy (CAS) which was discussed by the Board on July 18 1994. The strategy's overarching objectives are to help the government promote private sector- and export-led growth, attack poverty directly, improve natural resource management, build local capacity and improve project implementation. Within its scope, the proposed project (cited in Para. 29 of the CAS) supports each of these objectives. It also contains the elements identified in the CAS as important to combating poverty in Madagascar: labor-intensive growth, particularly in the agricultural and rural infrastructure sectors; employment generation; and development of human capital. As demonstrated by the results achieved by FID under the ongoing project, IDA can play a significant catalytic role in community development efforts targeted at the poor. The proposed project seeks to extend this role geographically and in scale, while providing an important vehicle for the increased involvement of NGOs in IDA-financed projects in Madagascar. 13. Agreed Actions. Agreements reached during negotiations include: (a) the articles of agreement, the by-laws and the manual of procedures of FID, and the Framework Agreement between the government and the FID will, throughout project implementation, be acceptable to IDA; (b) the positions of Executive Director, Deputy Executive Director and Regional Directors of FID will be filled at all times by personnel having qualifications and experience satisfactory to IDA; and (c) FID will, by June 30, 1996, adopt a revised manual of procedures to reflect the experience of the ongoing project, on the basis of studies currently under way. Conditions for effectiveness include the signing of the Framework Agreement between the Government and FID. 14. Program of Targeted Interventions (PTI). The proposed project is part of the PTI as it targets poor people and poor sub-regions through community-based development activities. 15. Participatory Approach. The proposed project will continue the use of extensive consultation with NGOs and beneficiary assessment surveys along the lines pioneered under the ongoing project. Subprojects are reviewed by regional advisory committees, which include representatives of Government, NGOs and the for-profit private sector. Special workshops with NGOs are also being organized. In addition, regular beneficiary assessment surveys will be undertaken as a standard activity of FID. 16. Program Objective Categories. The applicable categories are poverty reduction and capacity building. 17. Environmental Aspects. The project is rated "C". Some subprojects are expected to include components for protection of land against erosion, which should have a positive impact on the environment, others are not expected to have any significant environmental impact. Subprojects will be subject to environmental impact analysis where applicable.  Madagascar Social Fund II Proiect Memorandum of the President Page 7 18. Project Benerits. The overall economic rate of return is expected to be well above 15%. The actual rate of return will depend on the final distribution among different types of subprojects as FID is demand driven. Subprojects in transport infrastructure and in productive infrastructure such as micro-irrigation are required to meet a 15% economic rate of return threshold. Based on the experience of the ongoing project, such subprojects are likely to account for 80% of the funding. Financial rates of return of at least 20% are required for subprojects aimed at income-generating activities or support to the private sector. On the other hand, environmental and social infrastructure subprojects are not subject to rate of return criteria. Underlying rates of return on subprojects involving schools and clinics are expected to be quite high (although not explicitly calculated), as these structures are to rehabilitated, rather than built. 19. The project seeks to alleviate poverty while building capacity for development activities among local communities and NGOs. Specifically, the project expects to: (a) create about 5 million person-days of temporary employment on infrastructure projects; (b) develop health and education facilities; (c) develop 1,000 kilometers of farm-to-market roads; (c) provide protection for 16,000 hectares threatened by soil erosion; (d) develop 30,000 hectares of arable land; (e) finance 1,200 contracts with micro and small enterprises as well as another 200 with artisans and skilled daily workers; and (f) create approximately 2,700 permanent jobs. These projections are based on the experience to date of the ongoing project but are tentative, as FID's operations are demand-driven and estimation of the distribution across subproject types is difficult, particularly for new regions. 20. Diverse constituencies within the country have begun to recognize FmD's positive contribution. A Country Projects Progress Review conducted by the Bank in May 1995 in Madagascar included an innovative session where beneficiary households, communities and NGOs presented their views of Bank-supported projects. Participants -- including all senior government officials -- spoke out strongly in favor of the types of subprojects financed by FID. 21. Experience with social funds has shown that they can also: complement and reinforce structural adjustment and reform policies; contribute significantly to poverty reduction by channeling external aid and resources effectively and directly to communities; achieve substantial NGO and private sector involvement; and promote decentralization by strengthening the capacity of municipal governments. FID's promising start justifies some optimism that such results will be obtained in Madagascar. As noted in Box 1, the fund has already begun to empower communities and thus to accelerate the process of effective decentralization -- a major objective of the Government -- and to help create capacity among NGOs and micro and small enterprises to plan, prepare and execute development projects. 22. Risks. The main risks are that: (a) FID-financed local infrastructure may not be properly maintained, (b) the quality of infrastructure may be inadequate because of the weak capacity of small and medium enterprises; and (c) the rapid expansion of project  Madagascar Social Fund 11 Project Memorandum of the President Page 8 requiring the latter's contribution to capital costs. The community would also be required to agree to finance maintenance and any incremental recurrent costs associated with the initial investment. To help ensure the quality of infrastructure works, FID has started to: generate lists of qualified enterprises through open competitive bidding; provide training to enterprises and consulting firms that do not qualify; and retain, for a period of time, a part of the amounts payable to firms and supervising engineers, as a guarantee of quality. The risk of politica] interference is more difficult to address, however, a recent attempt to interfere in the SECALINE project was resolved once senior political figures visited the beneficiaries and witnessed the positive impact of the project's success on the Government's image. 22. Recommendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve it. James D. Wolfensohn President By Gautan S. Kaji Attachments Washington D.C. August 15, 1995  Madagascar Social Fund II Project MVfemorandum of the President Annex A. Page 9 PROJECT COSTS AND FINANCING PLAN Estimated Project Costs* US$ Millions Local Foreign Total I. Investment Costs A. Equipment 0.0 0.4 0.4 B. Vehicles - 0.7 0.7 C. FID Subprojects 31.8 - 31.8 D. FID Subprojects Consultants 3.1 - 3.1 E. TA, Training, Studies & Audits 1.3 0.3 1.6 Total Investment Costs 36.2 1.4 37.6 II. Recurrent Costs A. Incremental Recurrent Costs 2.6 - 2.6 Total Recurrent Costs 2.6 - 2.6 38.8 1.4 40.2 Physical Contingencies 3.9 0.1 4.0 Price Contingencies 1.0 0.2 1.2 43.7 1.7 45.4 (1) Figures may not add up due to rounding; and (2) figures do not include taxes and duties. Financing Plan by Disbursement Category (US $ millions) IDA Beneficiaries Government Total Amount % Amount % Amount % Amoun % t 1. FID Subprojects 85.0 1.8 5.0 3.6 10.0 36.0 79.2 2. FID Subprojects 3.5 100.0 - - - - 3.5 7.7 Consultants 3. TA, Trainings, 1.6 100.0 - - 0.0 - 1.6 3.6 Studies, & Audits 4. Equipment, Vehicules, 1.4 100.0 - - 0.0 - 1.4 3.0 Furniture & other materials 5. Incremental 2.9 100.0 - - - - 2.9 6.4 Recurrent Costs Total 40.0 88.1 1.8 4.0 3.6 7.9 45.4 100.0  Madagascar Social Fund II Project Alfemorandum of the President Annex B1 Page 10 Summary of Proposed Procurement Arrangements (US$ millions) Procurement Method International National Competitive Competitive Other Bidding Bidding Methods Total A. FID Sub-projects - 32.2 3.6 35.8 (27.7) (3.1) (30.8) B. FID Sub-projects Consultants - 3.5 3.5 (3.5) (3.5) C. Equipment and Furniture 0.2 C.0 0.1 0.3 (0.2) (0.0) (0.1) (0.3) D. Vehicles 0.8 - 0.3 1.0 (0.7) (0.2) (1.0) E. TA, Training, Studies & Audits - - 1.8 1.8 (1.8) (1.8) F. Incremental Recurrent Costs - - 2.9 2.9 (2.6) (2.6) 1.0 32.2 12.1 45.4 (1.0) (27.7) (11.4) (40.0) Note: Figures in parentheses refer to IDA financing. Other methods include use of consultants according to Bank Guidelines, use of UN procurement agencies and national and international shopping. Estimated IDA Disbursements US$ Thousands FY96 FY97 FY98 FY99 FYOO FYOI Annual 1,300 5,651 9,478 10,357 10,703 2,512 Cumulative 1,300 6,951 16,429 26,785 37,488 40,000 Cumulative Percentage 3% 17% 41% 67% 94% 100%  Madagascar Social Fund 17 Proiect Memorandum of the President Annex C. Pape 11 Objectively Verifiable Project Monitoring Indicators 1996 1997 1998 1999 Total Pcrson-days of Temporary Employment 1,250,000 1,250,000 1,250,000 1,250,000 5,000,000 Artisans & Skilled Worker Contracts 50 50 50 50 200 Micro, Small & Medium Enterprises Contracts 300 300 300 300 1,200 Permanent Employment Created 700 700 700 700 2,800 Number of NGO Contracts 100 100 100 100 400 Kilometers of Rural Roads 250 250 250 250 1,000 Hectares Irrigated 7,500 7,500 7,500 7,500 30,000 Hectares protected 4,000 4,000 4,000 4,000 16,000 TIMETABLE OF THE PROJECT'S KEY PROCESSING DATES Time Taken to Prepare Three Months Prepared by Government/ FID Initial EPS April 6, 1995 Revised EPS (FEPS) April 7, 1995 APR (Mission) April-May 1995 Negotiations July 3 to 5, 1995 Board Presentation September 14, 1995 Planned Date of Effectiveness January 1996 Mid-Term Review June 30, 1998 This report is based on the findings of a World Bank mission composed of Mmes/Messrs. Qaiser Khan (Mission Leader and Human Resource Economist), Paul Geli (ConsultanVImplementation Specialist), Michele Lioy (IEC Specialist), and Alf Persson (Consultant/MIS Specialist). Ms. Eileen Murray is the Division Implementation Specialist assigned to the Project. Ms. Hilda Emeruwa-Creppy prepared the Cost-tables. Ms. Helena Ribe is the Lead Advisor while Ms. Lynne Sherburne-Benz is the Peer Reviewer. Mr. Andrew Rogerson is the Department Director, Mr. David Berk is the managing Division Chief and Mr. Padmanabba Hari Prasad is the Department Operations Advisor. This project was processed under accelerated procedures with support from Mr. Mahmood Ayub, Senior Operations Adviser, Africa Region. Ms. Hilda Emeruwa-Creppy and Ms. Anne Anglio also assisted with report production.  Madagascar Social Fund 1I Project .lemorandum of the President Annex D. Page 12 STATUS OF BANK GROUP OPERATIONS IN MADAGASCAR MADAASA S:a;us Of Sank Group Opera:io's In MADAGASCAR P.D;R2; SuLTary Sza:emen: 0- Loars and .3A Credi:S (LOA da:a as of 7/31/95 - MS daza as o- 013/!5/95) -.z ........ ................ ....... ............. . . 0... ..... .. .......... Sy Coun.ry Coun-ry: HAOAGASCAR Aioun: in -USS mion 2 less cancetl ations) Loan c. risza( lncs- 'losi-g Credit No. Year jorrower Purpose Bank :DA b-rsed Oa-t Crec:ts 5s Credifzss) closed 837 59 1l 1 015780-MG 1988 MADAGASCAR jOREST MGT 5.15 .30 01/31/96 c19670-MG 1959 MADAGASCAR MACRO EMSAP/TA 22.00 7.23 06/30/9MR) c02020-MG 1959 MADAGASCAR AGRIC RES 11.69 8.19 12/31/96 C20940-MG 1990 MADAGASCAR DUC SECT REIRF 39.00 24.83 06/30/96 C21040-MG 1990 MADAGASCAR FZ. SE_TOR/APEX 48.00 36.99 06/30/97 C21170-MG 1990 MADAGASCAR TANA PLAIN DE/ 33.50 27.19 06/30/97 C21250-MG 1990 MADAGASCAR ENVIRONMENT 26.00 17.37 06/33/96 0224.30-MG 1991 MADAGASCAR LIVESTOCK 19.80 14.85 06/30'99 [22510-MG 1991 MADAGASCAR NAT HEALTH SECTOR 31.00 25.66 06/30/97 023820-MG 199? MADAGASCAR VOC. EDUCATION 22.80 19.31 06/30/98 Z24590-MG 1993 MADAGASCAR RURAL FIN 3.70 2.47 12/31/97 C24740-MG 1993 MADAGASCAR FOOO SECURITY & NUTR 21.30 16.94 07/31/98 C24970-MG 1993 MADAGASCAR FINANCIAL INSTITUTIO 6.30 6.45 09/30/93 C25380-MG 19'.4 MADAGASCAR PET SEC REFORM 51.90 55.B5 12/31/93 c25910-MG 1994 MADAGASCAR UR3AN WORKS PrLOT 15.30 16.58 12/31/95 C26250-MG 1994 MADAGASCAR CYCLONE RENABILITATI 13.10 11.44 06/30/97 C26440-MG 1995 MADAGASCAR IRRIGATION I1 21.20 22.71 06/30/00 C27290-MG 1995 MADAGASCAR AG.EXTENSION PROJECT 25.20 25.21 12/31/CO TCTAL nuxber Credics 1s 416.94 339.62 Loans 5 Loans(s) cLosed 32.57 AlI closed for MAOAGASCAR TOTAL nusrber Loans 0  Madagascar Social Fund II Project A'femorandum of the President Annex D. Page 13 MADAGASCAR Status Of Bank Group Operations In MADAGASCAR PFDBR25 - Summary Statement Of Loans and IDA Credits (LOA data as of 7/31/95 - MIS data as of 08/15/95) By Country Country: MADAGASCAR Amount in USS million (Less cancelLations) Loan or Fiscal Undis- CLosing Credit No. Year Borrower Purpose Bank IDA bursed Date TOTAL*** 32.57 1,254.63 of which repaid 24.25 42.05 TOTAL held by Bank & IDA 8.32 1,212.59 Amount sold of which repaid TOrAL undisbursed 341.44 Notes: Not yet effective ** Not yet signed * TotaL Approved, Repayments, and Outstanding balance represent both active and inactive Loans and Credits. (R) indicates formally revised CLosing Date. (S) indicates SAL/SECAL Loans and Credits. The Net Approved and Bank Repayments are historical value, all others are market value. The Signing, Effective, and CLosing dates are based upon the Loan Department officat data and are not taken from the Task Budget file.  Madaeascar Social Fund II Project Mzemorazndum of the President Annex D. Page 14 INTERNATIONAL FINANCE CORPORATION INTEGRATED CORPORATE ACCOUNTING SYSTEM STATEMENT OF IFC INVESTMENTS as of June 30, 1995 - Oriagzal aoma Cr-zmzeta - sold lad Obd4ab . 1 f,eacs zrc zrc by bY ic-. c MMLtzeo abliger Type og Aiusanas Loan lquicy P*r-ic Total& roC Pareie PaVtic 1277/87 Societe Textile de Kaba u Textilse 14.72 .31 - 3.03 2.17 - - 1280 A/ RatA SA. Malgatha General maaactuglan 1.25 - - .25 - - - 1284/90 L-e Pecbari-e de Yoei Be Food mnd agziuaL.nsa c.s4 .25 - 7.13 3.70 - - 2s.sa/3 La Cotannncge diuteiszabe Tetiles 1.0.32 .18 _ 21.10 3.16 - .42 l390/91 ti-a--