Tanzania - Agricultural Research Project

Document of The World Bank Report No: 17175-TA PROJECT APPRAISAL DOCUMENT ONA PROPOSED INTERNATIONAL DEVELOPMENT ASSOCIATION CREDIT IN THE AMOUNT OF US$21.8 MILLION EQUIVALENT TO THE THE UNITED REPUBLIC OF TANZANIA FOR AN AGRICULTURAL RESEARCH PROJECT November 25, 1997 Agriculture Operations Eastern and Southern Africa Africa Region  - 11 - CURRENCY EQUIVALENTS (Exchange Rate Effective: November 1997) Currency Unit = Tanzania Shillings Tsh600= US$1 US$1 = Tsh 600 FISCAL YEAR ABBREVIATIONS AND ACRONYMS ARFs Agricultural Research Funds ASARECA Association for the Strengthening of Agricultural Research in Southern and Central Africa CAS Country Assistance Strategy EEC European Economic Committee GDP Gross Domestic Product DRT Department of Research and Training FSR Farming Systems Research IDA International Development Association IFAD International Fund for Agricultural Development M,4OA Ministry of Agriculture and Cooperatives MTR Mid-Term Review NAEP II National Agricultural Extension Project II NARC National Agricultural Research Council NALRP National Agricultural and Livestock Research Project PAD Project Appraisal Document PIP Project Implementation Plan PSC Project Steering Committee SACCAR Southern African Center for Cooperation in Agricultural Research SUA Sokoine University of Agriculture TARP II Tanzania Agricultural Research Project II ZARFs Zonal Agricultural Research Funds Vice President : Callisto Madavo Country Director : James W. Adams Sector Manager : Sushma Ganguly Task Team Leader : Satish Kumar  - iii - TANZANIA AGRICULTURAL RESEARCH PROJECT - PHASE II (TARP II) CONTENTS A. Project Development Objective and Project Description .....................................................2 1. Introduction ..................................................................2 2. Project Development Objectives and Key Performance Indicators .........................................................2 3. Project components ..................................................................2 4. Benefits and Target Population ..................................................................3 5. Institutional and Implementation Arrangements: ..................................................................4 B. Strategic Context..5 1. Main Sector Issues and Govermnent strategy .5 2. Sector Issues to be Addressed by the Project and Strategic Choices .5 C. Project Rationale..5 1. Project Alternatives Considered and Reasons for Rejection .................................................................5 2. Lessons Learned and Reflected in the Project Design ................................................................. 6 3. Lessons from Agricultural Research Projects Implemented in Uganda, Malawi and Kenya ...................7 4. Indications of Borrower Commitment and Ownership ................................................................. 8 5. Value Added of Bank Support .................................................................8 D. Summary Project Assessments ...........................8 1. Economic Assessment ...........................8 2. Technical Assessment ...........................8 3. Institutional Assessment ...........................9 4. Social Assessment .......................... 10 E. Sustainability and Risks ........................... 10 1. Sustainability .......................... 10 2. Critical Risks .......................... 11 3. Possible Controversial Aspects ...........................11 F. Implementation Preparedness .......................... 11 G. Main Loan Conditions .......................... 12 Effectiveness Conditions .......................... 12 H. Compliance with Bank Policies .......................... 12 Annexes Annex 1 Project Design Summary Annex 2 Detailed Project Description Annex 3 Estimated Project Costs Annex 4 Cost-Benefit Analysis Summary Annex 5 Financial Summary Annex 6 Procurement and Disbursement Arrangements Table A. Project Costs by Procurement Arrangements Table B. Thresholds for Procurement Methods and Prior Review Table C. Allocation of Loan Proceeds Annex 7 Project Processing Budget and Schedule Annex 8 Documents in Project File Annex 9 Statement of Loans and Credits Annex 10 Country at a Glance Map  -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~  Project Appraisal Document Page 1 Country. Tanzania Project Title: Tanzania Agricultural Research Project - Phase 11 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Africa Regional Office AFCO4 Project Appraisal Document Tanzania Tanzania Agricultural Research Project - Phase II Date: November 7,1997 - I 01 |Draft I[XIFinal Task Manager: Satish Kumar Country Manager: James W. Adams Project ID: PE-2804 Sector: Agriculture I Lending Instrument: Investment Lending _PTI: [ Yes [XI No Project Financing Data j [] Loan P] I Credit l[] Guarantee Other I 1 1 1 1 1 1 | ~~~~~~[Specify,] For Loans/Credits/Others: Amount (US$m/SDRm): 21.8m/15.90m Proposed Terms: 1[X] Multicurrency ] Single currency Grace period (years): 10 years [ ]Standard [] Fixed [] LIBOR-based Variable Years to maturity: 40 years Commitment fee: 0.5% Service charge: 10.75% l Financing plan (US$m): Source Local Foreign Total Government 1.23 0.0 1.23 Cofinanciers (List in Annex 3) 23.10 IBRD/IDA 15.69 6.06 21.75 i.e 21.8 Borrower: Government of Tanzania Responsible agency(ies): Ministry of Finance, Minis of Agculture and Cooperatives Estimated disbursements (Bank 1998 1999 2000 2001 2002 2003 FYLUS$M): Annual 1.0 4.7 5.2 4.7 3.6 2.6 Cunulative _15.7 10.9 15.6 19.2 21.8 Expected effectiveness date: 03/31/1998 lClosing date: 06/30/2003  Project Appraisal Document Page 2 Country: Tanzania Project Title: Tanzania Agricultural Research Project - Phase 11 A. Project Development Objective and Project Description 1. Introduction The agricultural sector is the main pillar of Tanzanian economy. It contributes 60% of the country's GDP, 61% to export earnings and provides 84% of rural employment. It has been realized that accelerated agricultural growth can be achieved by increasing the productivity of the land base, focusing on the smallholder sector. Agricultural research plays a major role in this development as increased productivity depends on the application of scientific knowledge to generate improved technologies for the production systems. Agricultural extension complements this effort by transferring technology developed by research to the farmer. In a drive to increase smallholder productivity, a National Agriculture and Livestock Research Project (NALRP, Cr. 1970- TA) has been supported by IDA since August 1989, along with a national extension project (Cr. 1994-TA) which has been succeeded by a second phase National Agricultural Extension Project (NAEP II, Cr. 2899-TA) which became effective in October 1996. Both the research and extension projects are regarded by the Government as the top two core activities of the Ministry of Agriculture (MOA). The proposed Tanzania Agricultural Research Project (TARP) would be the second in support of the national program of research; IDA would finance a time slice of the long-term national agricultural research program. 2. Project Development Objectives and Key Performance Indicators The project would support the generation of technology to increase efficiency and productivity of crop and livestock production systems with sustainable use of natural resources, focusing on the needs of the smallholder sector. The project would continue to support the institutional development of the national agricultural research system and assist in decentralizing financial resource management, operational decision-making and the fonnulation of research agendas to zonal research stations; support privatization of research as appropriate; emphasize client-oriented adaptive research; and further strengthen farmer-extension-research linkages, inc][uding by emphasizing the farming systems research approach. The project will assist in human resource development, and will support the improvement of research planning, zonal research management, and monitoring and evaluation procedures. 3. Project Components (see Annex 2 for a detailed description and Annex 3 for a detailed cost breakdown): The project will have the following main components. Component Category Cost Incl. of Contingencies Total (US$M) (a) Institutional Development: The specific initiatives will Physical; include: (i) redefining the roles of Department of Research and institution 2.93 12.8 Training (DRT), the National Agricultural Research Council building (INS); (NARC) and Zonal Research Stations with emphasis on and project stakeholder participation; (ii) establishment of zonal executive management cormmittees with substantial representation of research users; (iii) (PM) financial and operational empowerment of the zones; (iv) an effective arrangement for donor coordination and for coordinating regional and other collaborative research programs; (v) a phased downsizing of the research establishment; and (vi) initiatives for privatizing research, as feasible.  Project Appraisal Document Page 3 Country: Tanzania Project Titte: Tanzania Agricultural Research Project - Phase 11 Component Category Cost Incl. % of Contingencies Total (US$M) (b) Research Programs: The project would (i) provide PM; and 8.50 36.9 incremental operating costs for the priority research programs in physical foodcrops, livestock and factor programs (e.g., soil conservation and agro-forestry); (ii) strengthen research infrastructure in Sokoine Agricultural University (SUA) and provide support for research programs; (iii) assist in establishing Zonal Agricultural Research Funds (ZARFs; through pilots in a few zones initially), and establish guidelines for operating the ZARFs on a demand-driven basis; and (v) help in breeder seed production at the zonal research stations. C Resource Development and Management: The project INS; PM; physical 11.55 50.3 would support: (i) strengthening human resource development (ii) providing assistance to SUA for carrying out approved training programs; (iii) consulting services and short-term technical assistance; (iv) selective rehabilitation of research stations, equipment and infrastructure; and (v) strengthening financial management and accounting, information and communication services, documentation and library services, and research monitoring and evaluation. Total 22.98 100 4. Benefits and target population The direct benefits of the project would include: * more effective and efficient agricultural research institutions capable of cost effectively addressing the problems of farmers in the major ecologies of the country; * improved capacity for training of scientific personnel; * a better trained and motivated cadre of agricultural researchers; and * improved research-extension-farmer linkages for speedier and more effective transfer of technologies. The project will benefit agriculturists and livestockists but it will particularly help most of the 3.5 million smallholders in the country. By increasing livestock and agricultural productivity, it will help reduce poverty, increase food security, and improve nutrition levels. Women who constitute over 50% of the smallholder farmers will particularly benefit. Through generation of messages related to improved fallows, afforestation, and anti-erosion techniques the project would have a positive impact on soil fertility, conservation and water management. The project will have complementarity with the National Agricultural Extension Project II and assist in improved and more dynamic linkages with extension and farmers.  Project Appraisal Document Page 4 Country: Tanzania Project Title: Tanzania Agricultural Research Project - Phase It 5. Institutional and Implementation Arrangements: Implementation period: 5 years Executing agencies: The Department of Research and Training under the Ministry of Agriculture; Zonal Research Stations for zonal research and Sokoine University of Agriculture. PrDject Coordination. A Project Steering Committee (PSC) under the Principal Secretary MOA will conduct periodical reviews and give directions on policy and implementation issues; the NARC will be the main advisory body and coordinate with other national research programs, and with private sector research as needed; each zone would have an empowered zonal executive committee which would approve the zonal research agenda, sanction expenditure proposals, recommend the annual budget to the MOA, and make required operational decisions; a committee on 'donor coordination and collaborative research' under the Commissioner Research and Training will be responsible for coordinating with donors and regional and international research bodies for collaborative research. Several bilateral donors: EEC, Germany, Ireland, the Netherlands, Norway, Sweden and the United Kingdom have endorsed the objectives of TARP II and agreed to support one or more of its proposed activities. As a member of two sub-regional research organizations namely Southern African Ceniter for Cooperation in Agricultural Research and Association for the Strengthening of Agricultural Research in Southern and Central Africa (SACCAR and ASARECA), Tanzania is well-positioned to access the technologies that it requires from regional collaborative programs and adapt them to meet the needs of its farning community. At the zonal research stations the zonal director assisted by the zonal research coordinator, would be responsible for project implementation. The zonal executive committee would be responsible for overseeing project implementation and provide guidance on policy and operational issues. Project oversight (policy guidance, etc.): NARC and the PSC will provide policy guidance, and PSC will oversee implementation. The Commissioner Research and Training would be the chief executive for project implementation and would be assisted by a deputy, a planning and monitoring officer, a procurement specialist and a project accountant. Accounting, Financial Reporting and Auditing Arrangements: A financial management and accounting sysitem was established under the ongoing NALRP which will be further strengthened. A financial and accounting management manual developed through Dutch technical assistance would provide operating procedures and reporting formats. The Controller and Auditor General of Tanzania would conduct an annual audit of the project accounts, SOEs and the Special Accounts. The Government will provide the annual audit report to IDA within 6 months after the close of the Government fiscal year. Monitoring and evaluation arrangements: The DRT will be responsible for overall monitoring of the project and its periodic evaluation. It will prepare periodic reports on project implementation status and issues, and furnish these to the PSC and IDA regularly. These reports will also be distributed to the zonal research stations. The zonal stations will monitor their implementation progress, generally and particularly, in terms of the agreed performance indicators; and these reports will be discussed in the zonal executive committee. A detailed project evaluation would be carried out at mid-term and on project completion. The project mid-term review (MTR) would be carried out in the second quarter of fiscal year 2000/01. Project evaluation will also include surveys and studies to measure impact of the new technologies developed by the zonal research stations, and beneficiary assessment of the impact of the technologies developed by research and carried to the farmers by extension.  Project Appraisal Document Page 5 Country: Tanzania Project Title: Tanzania Agricultural Research Project - Phase 11 B. Strategic Context Country Assistance Strategy(CAS) Document number and date of latest CAS discussion: Report # 16654- objective(s) supported by the project TA, May 6, 1997 and discussed at the Board on June 20, 1997. 1. Main sector issues and Government strategy Tanzania's medium term development strategy is to increase the economic growth rate to a minimum of six percent by the year 2000, and to even higher levels subsequently. A key pre-condition for this is to ensure an agricultural production expansion rate of about five percent per annum through application of yield enhancing technologies/inputs together with some increase in acreage under cultivation. The CAS thus calls for efforts focusing on raising agricultural productivity. The basis for overall growth and agricultural growth in particular, is to be strengthened by the provision of economic services (research and extension, rural access roads, water resource development and links between social and economic services) for smallholders. In this regard, the Government would be building upon the agricultural sector reforms implemented over time and addressing key sectoral issues, including the liberalization of agricultural processing, marketing and pricing and provision of basic infrastructure. In tandem, the Government would seek to promote off-farm activities and strengthen the environment for private sector development to further boost the rural sector. In the short term, the Government will continue to support the improvement of market efficiency, particularly with respect to agricultural inputs, the enhancement of smallholder productivity through research and extension activities and further rehabilitation and development of rural infrastructure such as roads and irrigation. In the longer term, the Government will also address other critical issues such as the rural payment system and financial services, land tenure reforms, and resource and environmental management. 2. Sector Issues to be Addressed by the Project and Strategic Choices The project reflects the country's development objectives and the CAS. It is designed to: (i) continue to support efforts to reshape the role of the MOA limiting its core functions to policy formulation, regulation, extension and essential research which cannot be carried out in the private sector; assisting the Ministry in downsizing and decentralization to the field units; and privatizing research as feasible; (ii) reducing the research burden on the Government budget by providing that all cash crop research will be self-financing, and excluding it from the Government budget and the proposed project support; (iii) enhancing the farmer's role in generation and dissemination of technology and making these processes more participatory; (iv) developing the human resource base; and (vi) increasing agricultural growth and farmer incomes, particularly of the smallholder sector. C. Project Rationale 1. Project Alternatives Considered and Reasons for Rejection Two main alternatives were considered for the institutional arrangement for public sector agricultural research: a centralized arrangement with a strong DRT headquarters (as has been the case during the NALRP implementation) or a decentralized arrangement with empowered zonal research stations responding to demand- driven research needs and with a limited headquarters role. As the zonal research centers are the real  Project Appraisal Document Page 6 Country: Tanzania Project Title: Tanzania Agriculural Research Project - Phase 11 workstations for research and are closer to the users and stakeholders, the unanimous choice favored the decentralized arrangement, with stakeholders providing an effective say through the zonal executive committee. Another choice to be made concerned the role of SUA in the national agricultural research program (so far SUA has not participated in mainstrean agricultural research). In view of the substantial human resources available in SUA and their comparative advantage in several research fields, it was decided unanimously that SUA will be "mainstreamed" in the national agricultural research program and would be deemed as the eighth center of research with both a national and a zonal mandate. Major related projects financed by the Bank and/or other development agencies (completed, ongoing and planned). Sector issue Project Latest Form 590 Ratings [Bank-financed projects only] IP DO Bank-financed Agricultural productivity and rural National Agriculture & Livestock S S poverty Research Project (Cr. 1970-TA) National Agriculture & Livestock S S Extension Rehabilitation Project (Cr. 1994-TA) - closed National Agricultural Extension Project II (PA 2753): effective since October 1996 Agriculture sector management Agriculture Sector Management S S efficiency Project (Cr. 2537-TA) Sector issue Project Latest Form 590 Ratings [Bank-financed projects only] IP DO Water resource conservation and River Basin Management & management and smallholder Smallholder Irrigation Improvement productivity Project (PA 3857); effective since December 5, 1996 Other development agencies Smallholder productivity and rural IFAD: Southern Highlands U S poverty Agricultural Extension & Rural Finance Project (LN. 324-TA) IFAD: Mara Region Extension Project (proposed) 2. Lessons Learned and Reflected in the Project Design Lessons from the National Agricultural and Livestock Research Project (Cr. 1970-TA) and National Agricultural and Livestock Extension Rehabilitation Project (Cr. 1994-TA): (a) the zones being the main action  Poject Appraisal Document Page 7 Country: Tanzania Project Tile: Tanzania Agtlcuutural Research Project - Phase 11 stations for research should have financial and operational autonomy to carry out their mandate: (the proposed project provides for institutionally, financially and administratively empowered zonal research stations); (b) the stakeholders should have an effective voice in priority setting of the agricultural research agenda and securing a demand-driven research program: (the institutional arrangement of a zonal executive committee with substantial representation of research users and other stakeholders would help to secure this objective); (c) focus should be on financial sustainability of research: ((i) Government has privatized tea research and has taken steps to privatize research in several other commercial crops such as tobacco, cotton, pyrethrum and sisal; (ii) Government has levied a cess on several commercial commodities to pay for the research costs and more crops are planned to be covered; (iii) Government has agreed to provide budget and project funds only for foodcrops, livestock and factor program research; (iv) the zonal stations are being encouraged to raise resources for meeting part of the recurrent costs and revenue retention accounts have been established in all the zonal research stations; and (v) the establishment of the zonal agriculture research funds (ZARFs) would further promote raising of extra-budgetary resources to fund research; (d) poor levels of compensation for scientists are responsible for a poor "enabling environment" with negative impact on scientist motivation, efficiency and results: (consequent upon the recent implementation of the revised pay grades (merging all special allowances into salary) the Government has taken a policy decision not to continue any special pay and special allowances: however, in discussion with the Treasury and the Civil Services Commission, a special incentive package is being developed by MOA to reward talented scientists for notable outputs); (e) more pro-active measures are needed to foster effective farmer-extension-research linkages: (all commodity research under the proposed project would be based on the farming systems approach, and at least 50% of the research trials/demonstrations would be on farmers' fields). Funds to carry out this objective have been included in the proposed project. Other related specific measures to be incorporated in the proposed project include pilot initiatives to support farmer research groups, farmer seed groups, and "action research" projects, close collaboration and interaction through joint preparation of the research and extension annual work plans, joint implementation of trials/demonstrations, training and action research initiatives and providing an identified budget at zonal level to carry out these activities); (f) counterpart funding and timely release of funds for project activities: (appropriate arrangements would be reflected in the legal covenants); and (g) there is scope to reduce the research establishment and to manage it more cost effectively. The government has agreed to reduce the number of research units from 47 to 23 and drawn up a time-bound plan to close/transfer/downgrade the redundant centers; action to implement this plan has already commenced. 3. Lessons from Agricultural Research Projects Implemented in Uganda, Malawi and Kenya For better results priority should be accorded to the zonal/regional research centers in matters of institutional strengthening and financial and operational empowerment, instead of starting the reform process with the apex level of the research organization; (b) strong decentralization of operational and financial powers to zonal/regional research centers has improved quality of research outputs, besides it has promoted demand- driven research; (c) very high dollar-denominated compensation packages are not sustainable, (besides, these generally attract scientists close to the age of retirement); and (d) institutional development of an agricultural research system is a long-term undertaking, and IDA has taken the correct approach of supporting time slices of the national research program.  Project Appraisal Document Page 8 Country: Tanzania Project Title: Tanzania Agricultural Research Project - Phase It 4. Indications of Borrower Commitment and Ownership The Govermment has accorded to agricultural research the highest priority for allocation of development resources. The Government established a planning team for project preparation and the proposed project has been prepared by the Tanzanians. The Government positions described in para 10 show that for a sustainable project the Government has shown willingness to adopt tough options. 5. Value Added of Bank Support Besides providing the largest share in the financial resources for carrying out the project, IDA collaboration is expected to make a significant contribution in the design of the institutional restructuring, modernization and strengthening of the recently decentralized research system. This would include establishing procedures for planning and prioritizing research programs, building effective linkages within the national research system as well as with external research institutions of repute, introducing participatory approaches to agricultural research planning and implementation, and assisting the client with the wealth of experience gained by IDA in promoting cost-effective and relevant agricultural research systems in over 40 countries since 1980. This project will build on the achievements of the IDA-funded NALRP (Cr. 1970-TA) which has focused mainly on facilitating institutional reform, building research infrastructure and providing limited training opportunities (due to close 09/97). The project would also help in securing coordination with other donors and harmonizing various approaches to the development of an agricultural research system and in financing the needed technical assistance. D. Summary Project Assessments (Detailed assessments are in the project file. See Annex 8) [ x] Cost-Benefit Analysis: NPV = [ ] Cost Effective- [] Other 1. Economic Assessment US$ 21.66 million; ERR= 21% ness Analysis: [Specify] (see Annex 4): Fiscal impact (for all projects): Financial Assessment (see Annex 5) NPV=US$12.72 million ; FRR= 18% 2. Technical Assessment The project design is sound and takes into account lessons learned from the operations of the ongoing NALRP (Cr. 1970-TA) since 1989 and from regional experiences. NALRP helped in creating an appropriate institutional structure for the research organization and strengthened the -infrastructure by supplying the required hardware. The proposed project further builds on this base and places emphasis on the software for undertaking a sizeable applied and adaptive research program. It provides for a minimum needed infrastructure rehabilitation (no new civil works), and similarly programs for training a number of scientists in terms of the required staffing levels. The proposed project inducts SUA as the eighth center for agricultural research thus making cost effective use of a valuable resource available in the country. In the design of the project, special care has been taken to (a) address existing weaknesses in research-extension-farmer linkages; (b) enhance farmer participation in the technology development process; (c) provide that the farming systems research (FSR)  Project Appralsal Document Page 9 Country: Tanzania Project rTle: Tanzania Agricultural Research Project - Phase 11 would become an approach for all commodity research and not a separate discipline as in the past; (d) make it obligatory that a minimum of 50% trials/demonstrations would be on-farm and to include resources in the program for the same; (d) emphasize the demand-driven aspects by providing that the zonal executive committee would have a majority of research users and stakeholders represented on it; and (e) strengthen sustainability by promoting privatization of research as feasible, and ensure that the Government budget and the proposed project would finance research only for foodcrops, livestock and factor programs, and further, that the funding for commercial/industrial crops research would be raised through cesses levied on the beneficiaries. 3. Institutional Assessment The project would be implemented by the Department of Research and Training ( DRT- includes the zonal research stations) which is a part of the regular institutional structure of the MOA, and no new parallel administrative units would be established. Since 1989, the ongoing NALRP has helped in strengthening capacity for research planning and management, and the scientists and administrators at various levels in the DRT and in the zonal research stations have gained experience through learning-by-doing, short term technical assistance, various types of training, and support from IDA and other donors. The professional, management and skills training of the remaining staff has been programmed in TARP II, based on a needs assessment carried out by the DRT. Policy guidance would be provided by the Project Steering Committee (PSC) which would also secure inter-ministerial coordination and be in charge of overall project review; linkages with other compatible national research programs and with private sector research would be provided by the NARC. With the establishment of the zonal executive committees and delegation of appropriate administrative and financial authority to the zones, the zonal research stations would be able to carry out their research mandate and fulfill the expectations of a demand-driven research. a. Executing agencies: The DRT of the MOA would have overall responsibility for project implementation; for carrying out the agreed research programs, the respective zonal research centers and the SUA would be the main implementing agencies. b. Project management: The Commissioner Research and Training would be the chief executive for project implementation and would be assisted by a deputy, a planning and monitoring officer, a procurement specialist and a project accountant. The Project Steering Committee (comprising of the Ministry's heads of the departnents, assistant commissioners of crop, livestock and factor program research, the zonal directors of research and training and the director of postgraduate studies of SUA as members, and representatives of the concerned ministries as special invitees with head of the project implementation section of DRT as member secretary), chaired by the Principal Secretary MOA would approve the annual work plan and budget, review implementation progress and provide policy and operational guidance. NARC would secure linkages with other compatible national research programs, private sector research and serve as forum for policy advice and guidance. At the zonal level, the zonal director assisted by the zonal research coordinator would be responsible for project planning and implementation. The zonal executive committee would approve the zonal annual work plan and recommend budget to MOA for inclusion in the national budget; it would also be responsible for general oversight of program implementation. For the SUA research program, the Director of Research and Postgraduate Studies of SUA would be responsible for planning and implementation, and would report to the Program Steering Committee established under the SUA-MOA Memorandum of Understanding.  Project Appraisal Document Page 10 Country: Tanzania Projec Tide: Tanzania Agricultural Research Project - Phase 11 4. Social Assessment The project would contribute to broad- based poverty alleviation in the country by supporting technological change and innovation in agricultural and livestock production, which will improve returns to all production factors including land and labor, and increase rural incomes. Women constitute more than 50% of Tanzanian farmers; besides they also play key roles as farm laborers, managers and decision makers, and would continue to benefit from the agricultural research and extension programs. Increased incomes for women should improve household food security as women are the major providers of their families. Environmental Assessment: aEnvirot nental I A I I B |[X] IC ICategory Participatory Approach: Identification/ Implementation Operation Preparation Beneficiaries/community groups x x x Intermediary NGOs x x Academic institutions x x Local government x Other donors x x | Extension | x x x E. Sustainability and Risks 1. Sustainability The institutional sustainability of the project is enhanced by the fact that there is strong Government ownership. The project has been designed by the Tanzanians, it would use the existing channels for implementation and no new parallel implementation units are proposed to be established. The financial sustainability will be aided by several of the following measures. The project includes initiatives for selective privatization of research. The Government policy decision that neither the project nor the Government budget would finance research in commercial/industrial crops (to be funded through cess imposed on beneficiaries of the respective crop) and that the project funds would be utilized only for crop, livestock and factor program research, would decrease demands on the Government's limited budget; this coupled with steps taken to promote local resource generation by the zonal research stations through the revenue retention schemes and the Agricultural Research Funds (ARFs) would further reduce the levels of Government support needed. After the project closes in 2003, the Government expects the research program to move to phase three and the existing institutional arrangements would be available to operate this phase. With a vibrant agricultural sector promoted by a good technology generation and dissemination system it is expected that the Government in future would be better able to ensure adequate and timely funding for the publicly financed part of the agricultural research system. The Government expects that with the above steps its overall share of public expenditure on research should gradually decline and would continue to be sustainable within the country's public finances.  Project Appraisal Document Page 11 Country: Tanzania Project rTle: Tanzania Agricultural Research Project - Phase II 2. Critical Risks (see fourth column of Annex 1): Project outputs to development objectives Risk Risk Risk Minimization Measure Rating *poorer performance on research outputs Low With a substantial range of the diversified research compared to envisaged (including private sector research), the potential of this risk is minimal. However, research results cannot be preordained. An improved research environment is expected to guard against poor results. Project components to outputs *autonomous zonal stations may take Low * Government to issue orders establishing a zonal executive time to establish; committee for each zone a condition of effectiveness. *research may not be demand-driven Low * institutional arrangements for private sector research and research funded by levies would enforce demand-driven research; for public sector research, the zonal executive committees with high representation of research users would ensure user views are accommodated; this aspect will be monitored during supervision. *Funding constraints may continue High * reduced share of Government counterpart funds, staff redundancies, local resources through revenue retention scheme and ARFs are expected to mitigate this risk. Overall project risk rating Low ___ 3. Possible Controversial Aspects: None F. Implementation Preparedness Arrangements already in place for executing the Phase I National Agricultural and Livestock Project will be continued, and will be further strengthened with the establishment before effectiveness of a Project Steering Committee at the national level and executive committees at the zonal level. A PIP has already been drawn up which would be adopted before effectiveness. The Government met the conditions of negotiations. The Government furnished a Letter of Policy on Agricultural Research; a copy each of the finalized Project Implementation Plan (PIP), Financial Management Manual, Guidelines for the Operation of the Agricultural Research Funds; and a status report on the progress of implementing the accepted recommendations of the Financial Management Study report. During Negotiations the Government also confirmed that (a) project funds to SUA would be provided as a grant; (b) Government would release funds to the zonal research centers for research on a quarterly basis; and (c) Government would provide adequate counterpart funds for project expenditures in the respective budgets of 1998/99 and 1999/2000 (Tshs 246 million in 1998/99 and Tshs 132 million in 1999/2000). The Government also conveyed to IDA that it had reviewed the PAD and was in agreement with the draft. During negotiations a few further modifications to the PAD draft were agreed and the document was finalized. The Government confirmed that it had no objection to the distribution of the PAD under IDA's disclosure policy.  Project Apptaisal Document Page 12 Country: Tanzania Project TiUe: Tanzania Agricultural Research Project - Phase II G. Main Loan Conditions 1. Effectiveness Conditions (a) The Government has established an executive committee for each zonal research center, each having composition and terms of reference acceptable to IDA; (b) the Subsidiary Agreement has been executed on behalf of the Government and the SUA; and (c) the Government has adopted the Project Implementation Plan and Guidelines for the Operation of Agricultural Research Funds satisfactory to IDA. H. Compliance with Bank Policies [X] This project complies with all applicable Bank policies. [sipature] ___ [signature] Task Team Leader Ct Manager:  Project Appraisal Document Page 13 Country: Tanzania Project TMe: Tanzania Agricultural Research Project - Phase ll Annex 1 Project Design Summary Narrative Summary Verifiable Indicators Means of Verification Important Assumptions Goal: Contributing to sustained poverty * Measures of household * Poverty survey reduction in Tanzania income/consumption, (periodic) disaggregated by group Purpose: * (Purpose to Goal): Sustained generation/ * Accelerated development * Annual report of * Favorable macroeconomic enhancement of ecologically and adoption of new DRT. * environment including sound technology for crop and technologies in crop and * Project evaluation * pricing regime. livestock production systems and livestock systems (mid-term and * Efficient research-linkages. for natual resource conservation final) including * Adoption of new in Tanzania. beneficiary technology by increasing assessment number of farmers. CAS Objective (CAS Objective to Bank _______ _______ _______ _______ __________________ M ission) * rationalization of Government * downsizing DRT: reduce * supervision report, * DRT plan on downsizing role to retain only core functions number of research stations periodic reports fully carried out to 23 * privatization and private sector * privatization of research * supervision report, * private sector interest in participation (number of commodities periodic reports taking over research transferred to private continues; more sector); reduction in public commodities are brought sector research program under cess/levy to raise extra budgetary resources * enhancement of farmer * covered in the indicators productivity, and incomes under 'project outputs' and 'project impact' Project Development Objectives * increased output of research (Development Objectives to findings relevant to farmer CAS Objective) needs To increase the efficiency and * various project * zonal empowerment productivity of crop and livestock * determinable increases in outputs measured * downsizing of DRT production systems, focusing on production through * availability of counterpart smallholder sector; demand-driven * completed re-organization Zonal/Regional funding research; and sustainability. of the research reports and surveys * increased farmer establishment involvement in identifying * implementation of plan to * supervision production constraints, and privatize research; and mission reports in implementing on-farm raising extra-budgetary adaptive research resources for supporting research * more effective collaboration with extension service Outputs: (Output to Purpose): 1. Strengthened agricultural Zonal Executive Committee * Project evaluation * Increased autonomy of the research system: more effective (ZEC) established, (mid-term and research system. and efficient agricultural fmancial/operational powers fmal). Effective incentive structure research institutions. delegated. for research personnel.  Project Appraisal Document Page 14 Country: Tanzania Project Tite: Tanzania Agricultural Research Project - Phase 11 Narrative Summary Verifiable Indicators Means of Verification Important Assumptions * Adoption of a plan and * Achievement of an implementation schedule * Government orders institutional environment installing communication establishing ZECs conducive to sustained systems, strengthening and delegating generation of agricultural financial management, powers. technology. strengthening library, * Verification documentation, and through DRT informnation management annual reports & * Issuance of budget and project supervision accounting manuals. reports. * Active efforts to link with * Receipts of the private sector. manuals. 2. Organization and management * IDA supervision of agricultural research: demand- * Zonal executive committee reports. driven, client oriented research, with majority representation * ZEC reports. prioritized and agro-ecologically of stakeholders constituted * Annual report of sound. and working effectively. Zonal research * Active pilot efforts to stations. introduce participatory * Reports from rapid techniques. rural appraisal * Research outputs responsive exercises. to farmer needs. * Annual program * Guidelines for small-farmer reviews, project oriented and gender- mid-term and 3. Human resource development: sensitive research released terminal higher quality and increased evaluation. number of research personnel in * Copy of Research needed disciplines; incentives * Acceptance of Personnel Personnel Needs improved. Needs Assessment study Assessment. report. * Annual Review * Action Plan for training (a) Reports; long term; (b)in-service. supervision * Implementation of incentive mission reports. structure. * Government instructions on incentives. 1.0 High yielding varieties/breeds * a minimum of 15 new * Zonal/National * standard research and developed; recommendations varieties and 500 cross-bred Reports development procedures for agronomic practices heifers will be released by * Annual program using the FSA, introduced. developed. year 2002. review. 2.0 Seed/breed quality improved * germination percent of seed * reports of Tanzania * laboratories and on-station increased from 70%(1997); Official Seed facilities strengthened. to 80%(2002). Certification * effective farmer * conception rates of dairy Agency (TOSCA). participation in on-farm cows to be increased by trials. 10%. 3.0 Research skills * the number of trained * Project progress * agreed training program scientists at MSc. level will reports carried out in the planned be increased from 176 at time frame. present to 203 and at PhD. * Supervision level from 43 to 64 by year mission reports. 2002 1 1  Project Appraisal Document Page 15 Country: Tanzania Project Ttle: Tanzania Agricultural Research Project - Phase II Narrative Summary Verifiable Indicators Means of Verification Important Assumptions 4.0 Research-Farmer-Extension * 50% increase in joint * Project progress * availability and timeliness Linkages activities, e.g., bi-annual reports/IDA of funding for joint workshops, Zonal Technical mission reports. activities. Committees, on-farm research, field days, farmers days, demonstrations. 5.0 Planning, Monitoring and * zonal units undertake * Project annual * timely carrying out of the Evaluation (PM&E) systems PM&E activities. report; seminar training plan strengthened. * effective seminars held at all proceedings zones to expose research managers and scientists on key PM&E concepts and tools. update and analyze databases annually. Project Impact (Components to Outputs) 1.0 Crops/Livestock yields * crop yields per unit area will * Progress reports. * availability and timeliness increased increase in the terminal year * Annual surveys. of counterpart funding as follows (from-to): * Mid-term and * increased farmer Rice (1.8-2.3 t/ha) terminal project involvement in identifying Maize (1.7-2.4 tJha) evaluation. production constraints, and Sorghum (2.0 - 2.5 t/ha) in implementing on-farm Millets (1.5-2.0 tlha) adaptive research Beans (600-750 kg/ha) * strong linkages with Poultry (320-360 mil.eggs) extension Milk production to increase from 1,600 to 1,800 litres/year/lactation 2.0 - Diseases and Pest incidences * Tick-borne disease * Reports and * more effective collaboration minimized. incidences reduced from Surveys. with research present rate of 80% to 75%. * Mid-term and * ready availability of - IPM recommendations * IPM use increased by 10%. terminal project affordable acaricides with developed. evaluation. more private sector competition. 3.0 Farmers Incomes Improved * increased by a minimum of * Mid-term and * efficiency in 20% by the terminal year terminal project breeder/foundation seed * (Baseline survey in 1997) evaluation. production and marketing * better input supply availability through improved marketing efficiency/competition * farmers adopt improved ._______________________________ seeds/practices 4.0 Integrated Management Systems * Management Information * Internal and * qualified staff positioned Improved Systems (MIS) will be external review and continued institutionalized and reports; expanded at all levels, e.g., * Annual project CD-ROM, INFORM, progress reports I Accounting, GIS, etc. I_ I  Project Appraisal Document Page 16 Country: Tanzania Project Title: Tanzania Agricultural Research Project - Phase tl Annex 2 Tanzania Agricultural Research Project Phase 2 Detailed Project Description Project Component 1 - US$2.93 million (12.8%) (a) Institutional Development: The project will continue the process of institutional reform of the research establishment initiated during the first phase research project. The focus of this component would be on decentralization and zonal empowerment so that the zonal stations, which are closer to the farmers, are able to carry out mandates of the stakeholders. The specific initiatives will include: (i) redefining roles of DRT, the National Agricultural Research Council and Zonal Research Stations with emphasis on stakeholder participation; (ii) establishment of a zonal executive committee with substantial representation of research users; (iii) fnancial and operational empowerment of the zones; (iv) an effective arrangement for donor coordination and for coordinating regional and other collaborative research programs; (v) a phased downsizing of the research establishment; and (vi) supporting initiatives for privatizing research, as feasible. The project would finance costs of research-extension- farmer linkage activities, consultant costs for establishing information systems and improving financial management system, and incremental operating costs of zonal research management, and project monitoring and evaluation. Project Component 2 - US$8.50 million (37%) (b) Research Programs: The focus of this component would be to support research programs undertaken by the DRT, to mainstream the SUA into national agricultural research and to promote sustainable research by assisting in the establishment of the zonal research funds. The project would provide incremental non-salary operating costs for the priority research programs undertaken by the national livestock research institute, zonal research stations, and the SUA in foodcrops, livestock and factor programs (e.g. soil conservation, agro-forestry). It would meet limited costs of strengthening research infrstructure in SUA and provide support for research programs. The project would assist in establishing zonal agricultural research funds (ZARFs; pilots in a few zones initially) by providing seed capital, and continue to support the ongoing national ARF; it would help establish guidelines for operating the ARFs on a demand-driven basis. Assisted by the establishment of irrigation facilities at the research farms the project would help in breeder seed production at the zonal research stations. Project Component 3 - US$11.55 million (50.2%) (c) Resource Development and Management: The component would provide support for the development of human resource, essential research infrastructure and in improving critical support services and systems. The project would support: (i) strengthening human resource development; assistance to SUA for carrying out approved training programs; (ii) consulting services and short-term technical assistance; (iii) selective rehabilitation of research stations, equipment and infrastructure; and (iv) strengthening financial management and accounting, information and communication services, documentation and library services, and research monitoring and evaluation. The project would finance training of the DRT staff, civil works including rehabilitation of selected buildings and completion of the DRT headquarters building, vehicles and equipment, computers, infrastructure like irrigation facilities at the research farms, and costs of hard and software for the information and financial systems.  Project AppraMisl Document Page 17 Country: Tanzania Project Title: Tanzania Agricultural Research Project - Phase II Annex 3 Tanzania Agricultural Research Project Phase 2 Estimated Project Costs Project Component Local Foreign Total --------------------US $ million--------- 1. Institutional Development 2.51 - 2.51 2. Research Programs 6.73 0.51 7.24 3. Resource Development and Management 4.82 5.52 10.34 Total Total Baseline Cost 14.06 6.03 20.09 Physical Contingencies 0.39 0.16 0.55 Price Contingencies 2.00 0.34 2.34 Total Project Cost 16.45 6.53 22.98 Components by Financiers (US$ Million) Components GOT IDA Bilaterals Total 1. Institutional Development - 2.93 2.93 2. Research Programs 0.97 7.53 8.50 3. Resource Development and Management 0.26 11.29 11.55 Total Financing 1.23* 21.75 23.10** 46.08 * (includes US$0.50 million by beneficiaries) **Note: Bilateral donors who pledged support include the following with the approximate amounts indicated in US$ million against each (subject to respective Governmental approvals in some cases); for final figures of assistance please refer to the bilateral agreement signed between the respective donors and the Government of Tanzania. Netherlands (10.0) ; U.K. (DFID)-2.85; Germany (GTZ)-2.50; Sweden (SIDA)-0.65; European Union- 5.60, Ireland (Irish Aid)- 1.50; Norway (NORAD)-NI; and Denmark (DANIDA)-NI; Total Funds committed at the time of project appraisal (09/97)- US$23.10. All bilateral assistance would be provided on a parallel basis in terms of the conditions mutually agreed and included in the respective bilateral agreements between the Government and the donor. NI means support pledged but funds not indicated.  Project Appraisal Document Page 18 Country. Tanzanla Project Title: Tanzania Agriculturl Research Project - Phase If Annex 4 Tanzania Agricultural Research Project Phase 2 Cost Benefit Analysis Summary [For projects with benefits that are measured in monetary terms] (In million Tanzanian Shillings) Present Value of Flows Fiscal Impact Economic Financial Analysis Analysis Taxes Subsidies Benefits 34,561.48 29,438.95 NA 5122.53 Costs 21,566.61 21,808.85 NA 242.24 Net Benefits: 12,994.86 7,630.10 NA 5,364.76 IRR: 21% 18% - - Main Assumptions:_ Analysis conducted at 1996 constant prices is based on 14 production activities which account for 70% of the cultivated area and about 20% of the cattle herd; 30% of productivity increase attributed to research; adoption leads to yield increases varying from 20% to 90%; off-farmi costs include incremental GOT costs (investment & recurrent) over a 20 year period; foreign exchange rate: I US$ = 600 Tanzania Shillings. Switching values of critical items: Switch Value Economic Analysis Financial Analysis ERR BCR ERR BCR Base econ. Rate of return 21% 1.6 18% J 1.3 Off-farm cost up 30% 16% 1.2 13% 1.1 Inc. benefits down 20% 16% 1.3 13% 1.1 Inc. benefits delayed 2 yrs 14% 1.2 12% 1.0  Project Appraisal Document Page 19 Country: Tanzania Project Tite: Tanzania Agricultural Research Project - Phase II Annex 5 Tanzania Agricultural Research Project Phase 2 Financial Summary US$ million Implementation Period Operational Period Project Costs Investment Costs 28.42 5 years 20 years Recurrent Costs 17.66 Total 46.08 Financing Sources (% of total project costs) IBRD/IDA 21.75 (47.2%) ] Co-financiers 23.10* (50.1%) 1 Govemnment 0.73 (1.6%) ]5 years Central ] Local ] User Fees/Beneficiaries 0.50 (1.1%) ] Others Others Others Others Others Total 46.08 * This represents the bilateral donor contributions pledged for the project. The final figures would be as appear in the bi-lateral agreements signed between the respective donor and the Government.  Project Appraisal Document Page 20 Countiy: Tanzania Project Title: Tanzania Agicultural Research Projed - Phase ll Annex 6 Tanzania Agricultural Research Project Phase 2 Procurement and Disbursement Arrangements Procurement Arrangements 1. All procurement of goods and works would be done in accordance with "Guidelines for procurement under EBRD Loans and IDA Credits, January 1995 (revised January and August 1996) Edition". Bank's Standard Bidding Documents for goods and works would be used. All procurement of consultant services would be done in accordance with "Guidelines, Selection and Employment of Consultants by World Bank Borrowers, January 1997 Edition". Bank's Standard Forms of Contract [Lumpsum and Complex Time-Based Assignments] would be used. A General Procurement Notice [GPN] is mandatory and must be published in the UN Development Business as provided for under the Guidelines. GPN would be updated annually. Specific Procurement Notices will also be required for consulting service contracts above US$200,000 prior to the preparation of the shortlist. (a) Civil Works: All civil works contracts amounting to US$2.3 million for rehabilitation and completion of buildings, and services and for constructing and equipping small irrigation works [in selected centers], each costing less than US$500,000, will be by NCB. Contracts costing less than US$100,000 including the contract for completing DRT Headquarters Building [total not exceeding US$260,000] could be completed by force account or by soliciting quotations from local contractors. (b) Goods and Equipment: To the extent possible, contracts for goods, such as vehicles, equipment (office, laboratory and field), computers and furniture shall be grouped into packages estimated to cost US$100,000 equivalent or more and will be procured by ICB. Contracts less than US$100,000 equivalent [estimated not to exceed US$0.45 million] will be by NCB. Small contracts of less than US$30,000 equivalent [estimated not to exceed US$1 million] will be procured by shopping procedures by soliciting at least three quotations from different suppliers. Under ICB, domestic manufacturers will be allowed a preference of 15% or existing import duty whichever is lower over CIF price of the competing foreign bidder. All procurement for O&M or miscellaneous items will follow Government procedures which are acceptable to IDA. (c) Services: The category of "Services" includes consulting services, technical assistance, training, linkage activities and contracted research through the Agricultural Research Fund. Consulting services will be required for civil works and for research programs. All consulting service contracts estimated to cost more than US$ 100,000 will be procured by Quality - and Cost - Based Selection (QCBS). Consulting service contracts estimated to cost less than US$ 100,000 will be by other methods i.e. selection based on consultant's qualifications for contracts less than $50,000 each and individual consultants appointed on short-term basis (less than $50,000 each as per Section V of the Guidelines). TOR for all contracts, all sole source selection of consultants and contracts estimated to cost more than US$50,000 for individuals and US$100,000 for frms will be subject to IDA prior review. All other services will be procured in accordance with Annual Workplans following procedures acceptable to IDA. (d) IDA prior review: Each civil works contract estimated to cost more than US$200,000 equivalent or more and each goods contract estimated to cost US$100,000 equivalent or more will be subject to IDA prior review as per Appendix I of the Guidelines. Other contracts will be subject to post review in accordance with Appendix I of the Guidelines. All consultant contracts estimated to cost more than the equivalent of US$100,000 for firns, and equivalent of US$50,000 for individuals would be subject to IDA prior review. (e) Procurement Plans: At negotiations, two standard bidding documents [one for works and one for goods] and an overall Procurement Plan and a detailed procurement plan for first year of the project, showing processing time for each contract would be agreed. By March 31 each year, DRT would update the overall "Procurement Plan" and prepare a detailed "Annual Procurement Plan" in respect of the following year.  Project Appraisal Document Page 21 Country: Tanzania Project Title: Tanzania Agricultural Research Project - Phase ll Disbursement Table C shows the allocations of the proceeds of credit The proceeds of IDA credit of US$21.53 million would be disbursed over a 5 year period, and a period of four months after the closing date would be allowed to make payments for the expenditures actually incurred until the closing date. The annual estimated disbursements are given in a table on page I of the Project Appraisal Document (PAD). Statement of Expenditures: Disbursements for all expenditures would be against full documentation, except for items of expenditures under contracts and purchase orders for (a) goods contracts costing less than the equivalent of US$100,000; (b) civil works contracts costing less than the equivalent of US$200,000; 0 consultant services contracts for firms costing less than the equivalent of US$100,000 and individual contracts for US$50,000 equivalent; (d) all force account works; (e) all local training; and (f) all incremental operating costs would be based on statements of expenditures (SOEs). Supporting documentation for SOEs should be retained by the borrower for IDA review. Special Account: To facilitate disbursements a Special Account in US dollars would be established and operated at the Bank of Tanzania or at a commercial Bank, under terms and conditions satisfactory to IDA. Upon project effectiveness, a sum of US$750,000 would be deposited by IDA into this account. Further deposits by IDA into this account would be made against withdrawal applications supported by appropriate documents. Audit: The project accounts, SOEs and the Special Accounts would be audited each year by the Controller and Auditor General of Tanzania or by independent auditors acceptable to IDA. The auditors' reports and certificates in respect of each of these three statements of accounts would be furnished to IDA within four months of the close of each fiscal year. Accounting and Financial Management: Under the phase I project namely the National Agricultural and Livestock Research Project (NALRP-Cr. 1970-TA) the project financial management was improved ,and a satisfactory accounting and financial system is in place. The audit reports for NALRP were unqualified and the management report does not indicate any major accounting issues. The proposed TARP II is a follow on project from NALRP. As a part of the process of improving financial management and reporting to equip managers with the information for improved project implementation a financial management study, funded by a bilateral donor, was completed. This study has made numerous recommendations in several areas which include rationalization of research centers; revision of management structures and personnel matters; funding and disbursement; fmancial autonomy and control at the zonal level; staffing; financial reporting; and, audit. In addition a draft financial accounting manual has been prepared. During appraisal the report and its recommendations were reviewed in detail by the mission and actions were agreed upon. Dates have been established in the implementation plan and an interim report on progress made in implementing the agreements has been received from the Government. The progress report was discussed during negotiations and it was agreed that this progress will continue be monitored by IDA during project supervisions; and a financial management specialist would be included in IDA supervision missions. Besides monitoring the implementation of the agreements these missions would follow up on the work of upgrading the manual system; make appropriate inputs on the staff training programs; and follow through on the consultancy to develop the computerized finance and accounting system, and to provide technical backstopping on financial management.  Project Appraisal Document Page 22 Country: Tarzania Project Tite: Tanzania Agricultural Research Project - Phase If Table A: Project Costs by Procurement Arrangements (in US$ million) Expenditure Category Procurement Method Total Cost (including contingencies) ICB NCB Other N.B.F 1. Works 0.00 2.26 0.29 0.58 3.13 (0-00) (2.04) (0.26) (0.00) (2.30) 2. Goods 2.60 0.45 1.09 5.89 10.03 (2.60) (0.45) (0.98) (0.00) (4.03) 3. Services 0.00 0.00 8.75 9.99 18.74 (0.00) (0.00) (8.75) (0.00) (8.75) 4. Miscellaneous 7.53 6.65 14.18 (6.67) (0.00) (6.67) Total 2.60 2.71 17.66 23.11 46.08 (2.60) (2.49) (16.66) (0.00) (21.75) Note: * NBF = Non Bank-financed. * Figures in parenthesis are the amounts to be financed by the Bank loan/IDA credit. * ARF Funds, Consultant services, Training, Technical assistance, and Linkage functions are included in the category of "Services". * Miscellaneous includes Operating and Recurrent costs. * Under NBF estimates are approximate and tentative.  Project Appraisal Document Page 23 Country: Tanzania Project Title: Tanzania Agricultural Research Project - Phase II Table B: Thresholds for Procurement Methods and Prior Review (In US dollars) Expenditure Contract Value Procureme Contracts Subject to Category (Threshold) nt Prior Review Method 1. Works US$100,000 to US$500,000 NCB US$200,000 or more Below US$100,000 OTHER 2. Goods Over US$100,000 ICB US$100,000 or more US$30,000 to US$100,000 NCB below US$30,000 OTHER 3. Consulting Services OverUS$100,000 QCBS Over US$ 100,000 for finns Below US$100,00 Consultants' and Qualifications Over US$ 50,000 for individuals Below US$50,000 Single Source 1/ Below US$ 100,000 Individuals 4. Miscellaneous NONE OTHER NONE Total cost of all contracts 7,660,000 Total cost of reviewed contracts 5,691,000 % reviewed 74.30 Note: 1/ - All TOR and Sole Source Selection will be subject to prior review. Review of TOR - all contracts Review of Sole Source - all contracts Full Review: Individuals more than US$ 50,000 Finns more than US$ 100,000  I'roject Appraisal Document Page 24 Country Tanzania Project Title: Tanzania Agncultural Research Project - Phase il Table C: Allocation of Loan Proceeds Expenditure Category Amount in US$ Financing Percentage million Civil Works 2.0 90% Vehicles, Equipment, Furniture, and Materials 3.6 100% FE, 90% LC TA, Training, and Studies 5.5 100% Agriculture Research Fund 1.4 50% Incremental Recurrent Costs 6.4 First $ 4m at 100%, Rest at 90% Project Preparation Facility 1.0 Unallocated 1.9 Total 21.8  Project Appraisal Document Page 25 Country: Tanzania Project Title: Tanzania Agricultural Research Project - Phase 11 Annex 7 Tanzania Agricultural Research Project Phase 2 Project Processing Budget and Schedule A. Project Budget (US$'000) Planned Actual (At final PCD stage) $260,000 $169,000 B. Project Schedule Planned Actual (At final PCD stage) Time taken to prepare the project (months) First Bank mission (preparation and pre-appraisal) 11/30/1996 01/27/1997 Appraisal mission departure 08/25/1997 08/27/1997 Negotiations 11/03/1997 11/03/1997 Planned Date of Effectiveness 04/01/1998 1 _J_/199 Prepared by: [name of Government agency] Ministry of Agriculture and Cooperatives Preparation assistance: [PPF, trust funds, cofinanciers, etc.] The Netherlands met costs of financial management study. Bank staff who worked on the project included: Satish Kumar (TTL); Tekola Dejene (macro sectoral issues and Govt/Bank measures to address them; economic and financial justification); James Coates, Preeti Ahuja and Yasuyo Abe (CAS and related compatibility, lessons from CPPR action plan, financial and economic analysis); Ed Quisumbing (agricultural research, sustainability); Sunil Bhattacharya ,Mbuba Mbungu (procurement); Mineh M. Kane (legal); Paul Vandenheede, Palitha Wijesinghe (disbursements); Donna Criddle (analysis); Eleanor George, Mary Carneiro, Lucie Muchekehu (Task Assistance); Nelson Ofiwono (cost tables, procurement tables); Advisor: Dr. Cyrus Ndiritu, Director Kenya Agricultural Research Institute (KARI); Peer Reviewers: Jacob Kampen (research and technical); Peter Pee (collaborative research, best practices); Franz Schorosch (institutional and linkages).  Project Appraisal Document Page 26 Country: Tanzania Project Title: Tanzania Agricultural Research Project - Phase 11 Annex 8 Tanzania Agricultural Research Project Phase 2 Documents in the Project File* A. Project Implementation Plan: . First draft December 1996/Second draft March 1997/Final October 1997 B. Bank StaffAssessments: Technical Report by Dr. S. Chema : Technical Report by Mr. M. L. Mehta C. Other Technical Report by Dr. A. Kashuliza : Technical Report by D. Sungusia *Including electronic files: Government Proposals on National Agriculture Research Program (December 1996) Z Zonal Research Briefs . Tanzania Agric. Sector Program Support: Appendix B 'Livestock Sub-sector Program' (January 1997) Research Program under NARP I . SUA Letter dated February 6, 1997 to Government for NORAD Assistance . Eastern Zone Research Planning Workshop Proceeding F Financial Evaluation of Lake Zone Stations at Ukiriguru and Maruku . Research Projects Catalogue - SUA List of Projects submitted by SUA Agricultural Research in Tanzania by SIDA . Guidelines for Zonal ARFs - Revised Draft . Draft Report on the Evaluation of Lake Zone FSR; Program and Support Program for strengthening client-oriented research (study sponsored by the Netherlands Detailed Cost Tables . Reports (6) on Lake Zone FSR Program . TARP II Proposals from TTRI Tanga . Revised Government Proposals on National Agricultural Research Program (August 1997) . Financial & Accounting Management Study Report (including Accounting and Financial Management Manual) . Memorandum of Understanding between MOA and SUA  Project Appraisal Document Page 27 Country: Tanzania Project Title: Tanzania Agncultural Research Project - Phase 11 Annex 9 TANZANIA Statement of Loans/Credits Schedule D (MOP) as of October 31, 1997 (in millions of US Dollars) . .. .. Awnou~~~~~~~~~nt in USS nnijioib (less..- _ ______u cancellations) - Loan/Credit Fiscal Borrower Purpose Ba -k CIosindgb| Credits 81 Credit(s) 1,715.10I closed i9700 1989 i NAT.AGRIC & - I _________ ______ I ___ LIVESTOC I | i I 7o9 1990 oPORTS - 37.00 12.27 06/3099 MODERNIZATION I1990 ji HEALTH & _47.601 19 57106130/9 I9901NUTRITION | T 9 _ 2140 1990 ROADS ISO.i 4682106 30/98I 1 1990 3 EDUCPLXNNlNG3 094 12/l1/97 - I 1I & REHA 1 ;l 22020 1991 PETROL REHAB- 44.001 363 1]31/971 22609 991 -RA ILWAYS .. 76.001 37 24 12/31/99 I 33~Q FORESTRUCTUR 2301992 . _.ioRS 1063090b RESOURCES . 9 MANG. 24130 1993 FINANCIAL & 20.00 8.03 17,31/98; LEGAL MANAG I PROJ. 2=5070 1993 _ PRIV. PUB. SECT. 39 t .S6 1mi3 MGT. TA PRO. I I |AS60 1993 TELECOM III 74.45 45 96 06/;0i99 [ 74S90 11993 POWERVI _200.00 57.1210660/00O 25;720 11994 A | 6.30_99 259O I 1 l ROADSII LA2Z 7020 154.37 311/00( ___ 1995 MINERAL SECTOR1 j 12.50 7.13112!31/99 DEV. I I 10.90 1 27710 r 1996 4 3FINANCIAL INST. { 10.902 i.33106/30/99i M2SM7 1996 URBAN SECTOR 105.00 960 M4 T ~~REHAB [ 7S990 [1997 NATEXTPROJ - f 3110 2 7 PH.11,,__,__t| 22760. 1997 CORACIi 1 78001 ;4 / i 1/9i 22000 1997 LKER BINT2630 9.3 012/31/02 -___I I lENV. I i 1997 i RIVER BASIN 26 0 21.0 30iii7j -I - | MGM.SMAL 22210 j 1998 HRD I 2090 20.68j1tUS [Tota Number of Credits 22 1,308.751 706.02 Loans -55 0.00 l 27 Loans(s) closed I 'III Total Number of Loans = 0 .f - 0.00 | Total*** 355553, o tofwhich repaid { 106.50 ITota l heid by Bank & IDA 3232917_361 Amountl 0.09 sold of 009 1 which ; repaid |Total Undisbursed j 706.121  Project Appraisal Document Page 28 Counjey: Tanzania Project Title: Tanzanh Agriculral Rarch Pro)je - Phase II Annex 10 Tanzania at a glance Sub. POVERTY and SOCIAL Saharan Low- - Tanzania Atrica Income Dsvelopmentdiamond- Population mid-1995 (milions) 29.6 S8S 3,188 GNP per capta 1995 (USS) 130 490 4Ui Life expectancy GNP 1995 (billions USS) 3.8 289 1,406 Average annual growth, 1990-95 Population (%) Z9 2.8 1.8 GNP Grss Labor force ) 2.8 2.8 1.9 per primary Most recent estimate (lats year available since 1989) capita enrollment Poverty: headcount index (X of populationS) s Urban population (% of otal population) 24 31 29 Ufe expectancy at birth (years) 51 S2 63 Infant mortality (per 1,000 lIve bIrths) 83 92 SS Aeces to sab water Child malnutntion (% of children under 5) 28 .. 38 Access to safe water (% ofpopulaion) 49 47 75 Illiteracy (X of population age 15+) 32 43 34 ranzan,a Gross primary enrollment (6 of schoo l-age population) - 70 71 105 towineome grup Male 71 77 112-Lwno grp Female 69 84 98 KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1976- 1986 1994 1995 GDP (billions USS) 2.6 5.5 3.4 4.0 Eonomk raos Gross domestic investmenUGDP 21.1 17.7 31.3 31.0 Openness of economy Exports of goods and non-factor servce/GDP 19.8 7.7 23.8 28.0 Gross domestic savings/GDP 8.6 8.7 3.3 4.7 Gross national savings/GDP _ 9.8 12.0 9.1- Current account balance/GDP -12.4 -9.3 -26.7 -18.2 Interest payments/GDP 0.a 0.5 1.8 1.8- Savings Investment Total debtGOP 49.0 78.1 220.3 196.0 Total debt service/exports 7.3 3.8 20.4- 11.8 P-resent value of debUGDP .. 1S0.5 Present value of debt/exports .. 834.8 Indebtedness 197684 1985-94- 1S94 1998 199604 (average annual growth) -- Tanzania GOP 1.7 4.0- 3.7 3.9 4.8 - Low-income grup GNP per capita .. .. Exports of goods and nfs .. .. .._.._.. STRUCTURE of the ECONOMY_ (16 of GDP) 1975 1985 1994 1995 Growth rates of output and investment I%) Agriculture 41.2 52.1 58.9 S6.8 a Industry 22.0 12.0 16.8 16.8 _ Manufacturng 10.4 7.9 7.8 7.8 Services 36.8 35.9 28.3 28.3 2 0 , Private consumption 74.1 74.9 88.4 85.1 go SI r,2 $ U General govemment consumption 17.2 1S.4 8.3 10.3 GDl +GOP Imports of goods and non-factor services 32.3 10.8 51.8 54.4 1975-84 1985-94 1994 199S (average annual growth) Agricuiture ZO 5.4 3.5 4.0 Industry -0.6 8.8 Z9 4.3 Manufacturdng *0.8 28 o0.9 4.5 Services 2.4 1.3 4.1 4.1 Private oonsumption .. General govemment consumption .. Gross domesti investment 4.4 27.3 3.7 Z9 Imports of goods and non-fcor senrics .. Gross national product .. 4.1 4.9 Note: 1985 data are prelimninay estimates. The diamonds show four key IndIcos In the country (in bold) compared wih s Incomelgroup average. If data are missing, the diamond will be incomplete.  Project Appraisal Docutment Page 29 Country: Tanzania Project Tiue: Tanzania Agricultural Research Project - Phase II Tanzania PRICES and GOVERNMENT FINANCE 1975 1985 1994 1995 Inflation Domestic prfces (% change) Consumer pnces 28.1 33.3 30.2 34.7 80 Implicit GDP deflator 15.3 22.8 22.8 34.0 40 Government finance a/ (% oftGDP) 0 *11 22 O3 94 Current revenue 24.4 18.5 15.0 14.5 Current budget balance -1.2 -2.3 -3.4 -4.3 - GDP def. +CPi Overall surplus/deffcit .1.6 -7.8 -8.0 -11.5 TRADE (millionsSS)1 1985 1994 1995 Export and Import levels (mill. USS) Total exports (fob) 379 326 486 8oo 2.000 Coffee e6 119 90 177 Cotton 43 27 92 85 1.500 Manufactures , 74 33 89 79 Total imports (ci) 775 999 1,589 980 10 * J *Mi Food 137 78 130 18 s_ Fuel and energy 92 223 149 157 Capital goods 241 434 729 394 o *J, Export pice index (1987-100) .. 98 128 .9 90 i1 92 03 i4 95 Import prce index (1987=100) .. 85 122 .. Exports *Impotts Termssoftrade(1987=100) ,, 114 103 BALANCE of PAYMENTS 1975 1985 1994 1995 (millions USS) Current account balance to GOP ratio (% Exports of goods and non-factor services 482 445 855 1,072 0 Imports of goods and non-factor services 811 1,016 2,068 2.013 o so DI1 92 a3 94 Resource balance -329 -571 -1,213 -941 Net factor income 4 -93 -154 -139 -10 Net current transfers 12 148 465 437 L II Current account balance, *20 before official transfers -321 51 8 -902 *844 Financing items (net) 308 531 892 611 Changes in net reserves 15 -14 10 33 *30 Memo: Reserves including gold (mll. USS) 85 18 308 255 Conversion rate (IocalUSS) 7.4 17 9 477.6 624.1 EXTERNAL DEBT and RESOURCE FLOWS 1976 1985 1994 1995 (millons USS) Composition of total debt, 1995 (mIll. USS) Total debt outstanding and disbursed 1,284 4,208 7,442 7,802 IBRD 80 268 114 87 G A IDA 81 So8. 1,998 2,182 1161 87 Totaldebtservice 36 173 174 195 F 2182 IBRO 5 40 42 43 I \ IDA 3 7 25 28 Compositon of net resource tlows Official grants 128 287 54 820 0 Official creditors 248 55 180 148 223 Pnvate creditors 5 48 12 51 o Foreign direct investment 0 14 0 27 E 604 Portfolio equity 0 0 0 0 3291 World Bank progrm Commitments 40 45 183 11 A-IBRO E-Bibtal Disbursements 60 48 183 160 8-IDA D - Oher mutilateral F - Private Principal repayments 3 27 44 48 C-IMF G - Shorterm Netflows 57 18 139 114 Interest payments 5 20 24 25 Nettrmnsfers 52 .1 115 89 Internatonal Econombs Department and AF2CO staff estimates 8120198 Note: Economic data refer to mainland Tanzania only. a. Govemment finance fiscal year (July to June).  \ {R~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~  IBRD 29232 30' 35- ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~40. KENYA AJW NDAr S , ,, * d v 0K| NORTHERNE N ZON~,E S1EL~IANIjMoh c Sln o Lake. Lake ,Shinyanga L k - mLak @ ~~~~~~~~~~0 D EYO 9t, SHINYANG Mny AO KILIMANJARO 5 / MPWAPWA SorogAo < @~~ ZAItaUSIMWA-W DEM.~~~~~~~~~~~~~~~~~~~~ RE U g a IG A<@ */ ZAMBI S( ZObe 30~~71 K I G R Sing'>\ OUTER 5 ' Kiom RN'Tbr ORGANIZATION OF XE AGRICULTURAL RESEARCH * ongea * DRT HEADQ;>UARTERS A N G