Document of The World Bank FOR OFFI(IA ( SE ON'LL' Report No. 12388-IVC STAFF APPRAISAL REPORT REPUBLIC OF COTE D'IVOIRE NATIONAL AGRICULTURAL SERVICES SITPPORT PROJECT JUNE 15, 1994 _: ) [ Ab e. ; g L4 '_ Agricultural Operations Occidental and Central Africa Department This document has a restricted distribution and may be used by recipients only in the perfonnance of their official duties. Its contents may not otherwise be disclosed without Wodd Bank authorization. CURRENCY EQUIVALENTS Currency Unit = CFA Franc (CFAF) 11 USS I.00 = CFAF 580 2) SDR 1.00 = US$ 1.39 2) WEIGITS AND MEASURES hlctrin SN stem ABBREVIATIONS AND ACRONYMS AfDB -frican Developmrcit Bank (Banque Africaine ae Diveloppemerj) AGCD Adminsrtration Genieale de ls Coopdsmtion Beige (Belgiin General Adminisiration for Cooperanon) ANADER Agcnce National d'Appui aux Services Agrieoles (National Agncultura' Servuces Agencw CAA - Caiss Autonome d'Amortissement (Debt Anor.zaMon Fund) ASA1JC - Agricultural Adjustment Loan/Credit (PrtiC'redat d 'Ajusiemete Structurcd CAISTAB - Caisse de Stabilisation (Agricultural Stabilization Fund) CFD - Caisse Franqaise de Developpement (French Development Fund) CIDT Compagnie [voirierne pour le Dev. des Textiles (Ivonan Company for Textile Development) CIDV - Cie Ivoirienne pour le Dev. des Cultures Vivrieres (Ivorian Food Crop Development Agency) CIRAD - Centre International de Recherche Agronornique pour le Developpement (French lntemationcl Centet for Agrieultural Research and Development) CMR - Centres des Metiers Ruraux (Rural Vocational Training Centers) CREP - Caisse Rur'sle d'Epargne et Prets (Rural Savings and Loan Funds) CRIDA Comite de Restructuration des Institutions de Developpemcnt Agricolu (Committee for the Restructuring qf Agricultural Development Instiumons) DCGTx Direction et Contr6le des Grands Tx (Directoraze and Supervision of Large Scale Operations) DRA - Direction Regionale Agricole (Regional Directorate of Agriculture) ENSA - Ecole Nationale Sup6&ieure d'Agronomie (National High School o] Agronomy) EPN - Etablissements Publics Nationaux (National State Agencies) ERC - Economnic Recovqry Credit (Cr&dil d'Appui a la Relance de l'Economie) EU - European Union (Union Europ&enne) FAC - Fonds d'Aide et de Cooperation (French Fund for Aid and Cooperation) FEW Field Extension Worker (Conseiller Agricole) FOS Farrners' Organization Specialist (Specialiste en Organisation Coopirative) GEF - Global Environment Facility (Fonds pour l'Enviro-nement Mondial) GVC Groupement a Vocation Cooperative (Pre-cooperadve group) IDESSA Institut des Savanes (Savannah Research Institute) IDEFOR - Institut des Foretu (Forest Research Institute) IFAD - International Fund for Agricultural Development (Fond mnternational pour le Djveloppement Agricole) IRCC - Institut de Recherche pour le Cafe et le Cacao (Ivorian Institutefor Cocoa and Coffee Research) IPDT - Institut de Recherche pour le Div. des Technologies (Research Instuute for Technology Development) MEFP - Miuistmre de l'Economie, des Finances et du Plan (Ministry of Economy, Finances and Planning) MESRS - Minisfere de l'Enseignement Superieur et de la Recherch Scientific (Ministry of Higher Education and Scientfic Research) MINAGRA - Ministare de l'Ag. et des Ressources Aninsales (Ministry ofAgriculture and Animal Resources) MINIFOP - Mnistare de la Fonction Publique (Ministry of the Public Service) MTF - Medium-Termt Economic Framework (Cadre Economique t& Moyen Terme) NEAP - National Environmental Action Plan (Plan National d'Action Environnementale) PAGE - Projet d'Appui a la Gestion Economique (Economic Management Suppon Project) PNAGER - Projet National de Gestion de i'Espace Rural (National Rural Land Management Project) PNER - Projet National d'Equipement Rural (National Rural Equipment Project) PPDEA - Projet de Promotion et de Ddv. des Exportations Agrico:es (Agrieultural Expon Promodion Project) PVA - Projet de Vulgarisation Agricole (Agricultural Extension Project) SARS - Site d'Adaptation de la Rech:rcho Sysame (Systemic Research Adaptation Sfie) SATMACI - Societe d'Assistance Technique pour la Modernisation de l'Agriculture (Companyfor Modernization of Ivonian Agriculture) SEM - Societe d'Economie Mixte (Mired Economy Company) SMS Subject Matter Specialist (Technicien Specialise) SODE - Societe de Dveloppement (Development Agency) SODEPRA - SocietE de D6veloppem-nt de la Production Animale (Livesiock Development Agency) T&V - Training and Visit (Fonmation en V'sites) UNDP - United Nations Development Program (Programme des Nations Unies pour k Developpemenm) FISCAL YEAR January 1 - December31 1) Thc exrhango rate of the CFAF is fixed at 100-:1 to the French Franc, which is a floating currency 2) As of March 1994 (date of negotiations) FOR OFFICIAL USE ONLY REPUBLIC OF COTE D'IVOIRE NATIONAL AGRICULTURAL SERVICES SUPPORT PROJECT ]ble of Contents DOCUMENTS CONTAINED IN THE PROJECT FILE ...........................i CREDIT AND PROJECT SUMMARY..ii I. INTRODUCT1ON ..................................1 la. SOCIO-ECONOMIC BACKGROUND ................................ 2 m. SECTORAL SE TNG. 5 A. Overview of the Agricultural Sector .5 B. Agricultural Institutions ..................... 7 C. Government Agricultural Strategy .10 D. Bank Sector Strategy and Lending Progran .11 E. Donor Activity .13 F. Lessons Learnt from Previous Bank Involvement .13 IV. PROJECT PRESENTATION ......................... 16 A. Project Objectives, Strategy, Summary Description and Rationale ..16 B. Detailed Features ..17 1 . Restructuring Process .17 2. Operating Support to the National Agricultural Services Agency .18 3. Institution Strengthening .24 V. PROJECT COST AND FINANCING .28 A. Cost Estimates .28 B. Project Financing .29 C. Procurement .32 D. Disbursements and Revolving Funds .34 E. Financial Management, Accounting and Audit Requirements. 35 F. Project Implementation and Management .36 This report is based on preparation reports prpared by the Ivorian authorities in collboration with ArT7AG (Measns. Jacques Fr6my and Amos Ben Mayor) and AFIAA (Messrs. Jean-Paul Chausse and Christian Fauliau), The appraiscl mission was led by Mr. Chrisn Fauliau (APIAA), and consisted of Ms. Pauline Quassivi-Fofana and Mr. Jan Weetjans (AFIAA) and represerntaies of donor agencics (FAO, UNDP, CPD, FAC, EU, IFAD). Mr. Daniel Moreau (LA3AG) was the Peer Reviewer and Mr. Shem Migot-Adholla (AGRAP) the Project Advisor. Mr. Olivier Lafourcade a the Deprtment Diector (AP1), Mr. Thdodore Nkodo the Division Chief (AFIAG) and Mr. Jean.Claude Balce the Section uhief (APlAA). Operational support was provided by Mr. Hemi Aka (AFIAG). This document has a resricted distbuon and may be used by rcipien ny in the pfoman of tdir ofca dutis Its cotents myno othewis be discloed witho Wod Bank =at ion. IMbleof C-entents (Cont'd) ....... .. Page VI. BENEFrTS AND RISKS .38 A. Benefits ..38 B. Budgetary Impact ...... 39 C. Capacity Building. 39 D. Environmental Impact ..40 E. Poverty Impact ..40 F. Risks ..40 VII. ASSURANCES, CONDITIONS AND RECOMMENDATION ............... 41 ANNEXES 1. Yield Potentialities of Major Food Crops 2. Basic Data on Farmers' Associations (1989/1990) 3. ANADER's Diagram of Programming and Budgeting Process 4. ANADER's Training Component 5. ANADER's Organization at National Level 6. MINAGRA DRAs' Organigrarn and Detailed Presentation 7. Project Cost Summary 8. Detailed Procurement Procedures 9. Detailed Disbursement Procedures 10. Standard Terms of Reference for Financial Audits 11. Project Objectives and Implementation Indicators 12. ANADER's Monitoring and Evaluation Indicators 13. Terms of Reference for the Project Completion Review 14. PNASA Program Budgetary and Staffing Impact 15. ANADER's Estimated Summary Financial Statements MAR IBRD No.25030 I l - REPUBLIC OF COTE D'IVOIRE NATIONAL AGRICULTURAL SERVICES SUPPORT PROJECT Documents Contained in the Proiect File A. BACKGROUND DOCUMENTS AND REPORTS 1. 'Etudes des relations entre les strategies de vulgarisation agricole et la protection de l'environnement en R6gion Nord de C6te d'lvoire', World Bank, April 1992. 2. 'R6le et place de la femme dans les programmes de Developpement agricole', World Bank, April 1992. 3. 'Restructuration des Institutionsd'Appuiau D6veloppement Agricole', UNDP-FAO, NC/91/001- Nov.91. 4. "Appui aux cooperatives agricoles de la filiere caf6/cacao', SOCODEVI, March 1992. 5. National Adjustment Project fcr the Agricultural Structures, DCGTX, July 1991. 6. Operational Avuit of SODEPRt, BDPA-SCETAGRI, 1992. 7. Agricultural Master Plan 1991/2010, MINAGRA 1991. 8. MINAGRA Seminar on the Agricultural Extension Restructuring and the Agriculturl Master Plan, MINAGRA, Mars 1992. 9. Final evaluation of the Ag. Extension Project-PVA, DCGTx, September 1992. 10. PVA's Project Completion Report, World Bank, June 1993. B. PREPARATION REPORT AND WORKING PAPERS 1. Support Services: Strategy and Operations for Restructuring Process. 2. Human Resource Management. 3. Adaptive Research, Agricultural Extension and Farmers' Associations. 4. Livestock integration within the new Agricultural Services Structures. 5. ANADER: (a) Tasks and Structures; (b) Operation; and (c) Financing. 6. The Restructuring of MINAGRA's Regional Directorates. 7. Agricultural Statistics. 8. CIDT witiin PNASA. 9. PNASA and Environment. 10. PNASA, Project Preparation Report, MINAGRA, August 1992. II. Detailed Cost Tables (COSTAB) - ii- REPUBLIC OF COTE D'IVOIRE NATIONAL AGRICULTURAL SERVICE SUPPORT PROJECT Credit and Project Summary Borrower: Republic of COte d'Ivoire Beneficiaries: Ministry of Agriculture and Animal Resources (MINAGRA), Ministry of Higher Education and Scientific Research (MESRS), Ministry of Economy, Finance and Planning (MEFP), National Agricultural Services Agency (ANADER) and Research Institutes (IDESSA, IDEFOR, IRDT) Credit Amount: SDR 15.7 million (US$21.8 million) Terms: Standard IDA terms, with 40 year maturity PrQiect Description: The proposed project will be instrumental to support continued implementation of the Government's policy to develop the rural economy, disengage from commercial and production activities, and promote effective participation of beneficiaries in the definition, financing and implementation of agricultural services. The project will build on the achievements of the Agricultural Extension Project (Ln. 2765-IVC) completed in 1991. Its main objectives will be to: (a) streamline and decentralize the organization of agricultural services; (b) enhance the role of the Ministry of Agriculture and Animal Resources (MINAGRA) in policy making and supervision of agricultural development; and (c) increase farmers' empowerment and influence over the policy making process. The project will be the first phase of a five-year program designed to support, through improved research and extension, the generation, dissemination and adoption of environmentally sound technology required to sustain productivity gains in agriculture in the long run. he project will be implemented over a period of two years on a national scale. In line with the Government's overall civil service reforms, the project's strategy will be: (a) to assure the delivery of basic agricultural services through the esublishment of a National Agricultural Services Agency (ANADER) which will be the Government's main sub-contractor for extension, adaptive research and support to farmers' organizations; and (b) to streamline and strengthen MINAGRA's regional directorates (DRAs) in each of the ten regions of the country. DRAs' role will be refocussed on their public service mandate geared to establishment and implementation of agricultural policies and regulations. As part of this mandate, they will be given clear responsibilities and directions to assist in the development of private sector initiatives. In support of the above strategy, the project will include the following components: (a) Restructuring Process (US$8.3 million) (US$2 million by IDA) designed to: (i) revamp agricultural services through the merging of three existing crop-based parastatal extension organizations into a single, multi-purpose and decentralized National Agricultural services Agency (ANADER) with management autonomy and strong representation of farmers; and (ii) streamline MINAGRA's Regional Directorates (DRAs); this component is financed under the PPF and will be Zomnieted before project effectiveness: - iii - (b) Operating Support to ANADER (US$22.9 million) (US$12.2 million by IDA) geared to assisting in all facets of ANADER's operations, including adaptive research to be sub-contracted to research institutes (IDESSA, IDEFOR and IRDT) and support to farmers' organizations; this component will include extensive training activities to systematically upgrade the skills of all ANADER's staff; the component represents Part A of the project; and (c) Institution Strengthening (US$13.4 millior) (US$7.6 million by IDA) of MINAGRA (all Regional Directorates, and the central directorates of Administration/Finance and Planning/Programming), the Ministry of Scientific Research and Higher Education-MESRS (Sub-Directorate of Adaptive Research) and the Ministry of Finance-MEFP (Sub-Directorate of Audit Control), with a view to strengthening ministerial structures involved in the support to agricu!tural services; support to MJ4NAGRA will focus on policy-making and planning, monitoring and evaluation, and human resources and finamcial management; MESRS will be strengthened through support to adaptive research activities and MEFP through support to audit control activities (this latter support will be provided irn close liaison with the Economic Management Project (Cr. 2503-IVC)); this component represents Part B of the project. The proposed project will be central to the Government's strategy to restore sustainable growth through delivery of improved agricultural services and redefinition of the Government's role in the agricultural sector. Implementation of this strategy has started in 1992 with the streamlining of parastatal agencies (CIDT, SATMACI, CIDV, SODEPRA) and the reduct.on of their staff. The project's main thrust, i.e. refocusing the Government's role on the provision of essential public services, empowering farmri-rs and Improving their skills, and reducing civil service costs, is also at the core of the Bank's strategy to foster efficiency aad growth in the rural sector. Since 1986, the Bank has played a leading role in the restructuring of Cote d'Ivoire's national agricultural services as part of the Agricultural Extension Project (PVA, Ln. 2765-IVC). Its continued inviolvement in the restructuring process is essential to sustain the Government's commitment to difficult and critical reforms and mobilize the support of other donors. - iv - Foreiffn Foreign Foreign SasueLin Local ExchanBe Total Local Exchange Totat gxgnR Qa ---(CFAF mfitfon)- ---- (US$ mitlion)---- SW A. Restructuring Process 4129 590 4719 7.1 1.0 8.2 12 is B. Onerstion S soort to a LNER (ProjeCt Psrt A) 1. Extension 3342 2259 5601 6.5 3.0 9.5 401 24 2. Adaptive Research 674 272 947 1.2 0.4 1.6 1S 6 3. Professional Org. (OPA) 925 850 1M 1.8 1.2 3 40 B 4. Training & Human Rescurces 518 400 918 1.0 0.5 1.5 46 6 5. Managemant Support 1993 1109 3102 3.8 1.5 5.3 28 13 ...... .......... . .. ....... ..................... . .......................... ....... . Sub-Total 7452 4890 12342 14.3 6.6 20.9 31 53 c. ejD 5n t£ntJe (Project Part B) 1. Ministry of Agriculture Central Directorates 418 357 635 0.7 0.5 1.2 38 3 Regional Directorates 1791 2085 3876 3.7 2.9 6.5 54 17 S. tudies 1225 295 1520 2.3 0.3 2.6 12 6 2 4inistry of Scientific Res. 220 257 477 0.5 0.3 t.8 54 2 3. Ministry of Ec. & Finance 20 21 41 0.1 0.1 0.2 50 1 Sub-Total 67-4 3015 6549 7.3 4.0 11.3 39 29 Total Rasejine Costs 15255 8495 23750 28.7 11.6 40.3 28 100 Physical contingencies 355 357 712 0.6 0.6 1.2 50 3 Price contingencies 1577 245 1822 2.7 0.4 3.1 13 8 .... . ......... ............. ...... ............ _.... ... .... . Total Prolect Costs 17187 97 268 32.0 12.6 44.6 21 11 Pinacing P Local Foreign Total - --- ----- USS million ---------- Goverment 12.4 - 12.4 IDA 11.4 10.4 21.8 UNDP 0.5 0.2 0.7 CFD 5.0 5.0 AGCD - 0.5 0.5 IFAD 1.3 0.6 1.9 AfD8 1.5 0.8 2.3 TOTAL 32.1 12.5 44.6 Estimate Schedule of Disb uem from the 1DA Credit IDA fiseat Yer FY94 FY9 FY9 FY97 --USS mitllion-- Anmul 1.2 10.6 7.0 2.0 Cumulatlve 1.2 12.8 19.8 21.8 v - Benefits and LRiskcs The project will improve agricultural productivity, thereby fostering agrizuItural growth ar,d improving rural incomes. It will gradually ensure access to improved agricultural service-s for the entire population of rural producers, i.e. about 900,000 farm families. This population comprises several of the poorest segments of the Ivorian population, including rural women. The project will improve research-extension-farmers linkages, and make research and extension more demand driven and client oriented. It will ensure greater environmental sustainability of agricultural practices. On another front, the project will redefine the role of the Sttte and of thfe private sector in agricultural development. The role of the State will be limited to policy definition, monitoring of policy implementation and law enforcement. This will be accompanied by a complete overhaul of the agricultural administrative and operational support services including the dismissal of about 3,340 redundant staff. These measures will result in the reduction by about CFAF 4 billion of annual payroll and other budgetary costs. The private sector, particularly through empowerment of farmers' organizations, will gradually increase its control over the delivery of agricultural services and therefore assume greater financial responsibility. This is expected, in the long run, to have a beneficial impact on public finances. The two major risks faced in implementing the project are: (a) the Government's capacity to complete the ambitious restructuring program; and (b) the availability of counterpart funds. A technical risk is the risk of low farmer adoption of the technical messages being extended. The Government has already given testimony of its resolve to streamline agricultural services through the dismissal of redundant staff (about 2,000) in extension parastatals. The creation of ANADER decided by presidential decree of September 29, 1993 and restructuration of MINAGRA's regional services by decree of March 25, 1994 fiuther testifies to the Government's commitment to fully complete the required restructuring process. To diminish the risks of the restructuring exercise, arising in particular from staff selection and attendant staff dismissal, the project will encourage voluntary departure and early retirement of staff. Similarly, dismissed redundant staff will benefit from severance allowances, in accordance with Ivorian law, and will be assisted in their insertion into the labor market. Completion of the entire restructuring process is required for credit effectiveness, so that the attendant risks will be moved upfront prior to the operational phase of project implementation. The risk of lack of availability of regular counterpart funds are mitigated by the assurance provided by the Government that it will, before January 1 of each year, earmark all necessary counterpart fiuds in the National Budget, and that, before the beginning of each quarter, the counterpart funds will be deposited in the project accuunt. To further decrease this risk, other donors will be invited to earmark counterpart funds arising from their balance of p3yments assistance for project expenditures. The risk of farmer low adoption of the technical messages being extended will be mitigated, as these messages will be developed in collaboration with farmers and will be designed so as to minimize amounts of purchased inputs. Iernal Rate of Return: not applicable EQnvironBental Categgry: C oEmma Car: B; program of targeted interventions - vi - REPUBLIC OF C',- D'IVOIRE NATIONAL AGRICULTURAL SER-. t.CES SUPPORT PRQJECT Key Features of the Rur '5 ector (1 992)1, 1. Land Area ('000 km2) - Total Land 322 - Forest Region 140 - Savanaah Region 182 - Forested area 74 2. Population - Total (million) 12.5 - Growth rate (9c) 3.7 - Rural population (9%) 51 - Urban population (%) 49 3. Production ('000 MT) - Cocoa 790 - Coffee 190 - Cotton 194 - Sugar 150 - Palm oil 280 Rubber 72 - Pineapple 115 - Bananas 150 = Rice Paddy 710 -Yam 2,820 4. Export_ (CFAF billion) - Comoa 222 - Co.ffee 54 - Cotton 52 - Rubber 16 - Patm oil 17 - Pineapple 23 -Bananas 37.5 - Timber 87 5. Economic Overview - Gross Domestic Product (CFAF billion) 2.680 - GDP Real growth (%) -0.8 6. Government Revenues (CFAF billion) - Total Tax Revenues 521 - Interest of Extemal Debt 294 7. Social Indicators - Life expectancy at birth (year) 55 - Adult literay rate (% 15 +, 1990) * Female 40 * Total 54 - Infant mortality rate 95 (per 1,000 live births) Source: "Cote d'Ivoire: Statiscal Profile", APlCO, World Bank, August 1993 "Cate d'Ivoire Agriculture Statistical Profile", AF1AA, World Bank, May 1994. REPUBLIC OF COTE D'IVOIRE NATONLATLTRAL SERVICES SUPPRT EROjLEC I. INTRODUCTION 1.01 COte d'lvoire is one of the principal countries in the CFA zu,ne. with a population of about 13 million and a GDP of US$9.2 billicn in 1993. The country has been in recession since 1986 and faces a severe external debt problem. High population growdt coupled with economic decline has resulted in a steady fall of living standards. GNP per capita in 1992 was estiniated at less than US$700 compared to well over US$1000 in the early 1980s. Social indicators have alse been deteriorating, reflecting, amongst others, the effects of the economic crisis as well as neglect of basic social services. Future growth must be supported by a higher level of private investment, which has been inhibited in recent years by limited access to foreign borrowing due to COte d'lvoire's ongoing economic and financial difficulties, and by actions aimed at increasing the productivity of the agricultural sector. In this regard, the restructuring and strengthening of agricultural services supported under the proposed project is central to the strategy designed to lay the base for long-term agricultural productivity. It is also important te help secure the required budgetary savings, and attract private investment back into agriculture. 1.02 The National Agricultural Services Support Project (Projet National d'Appui aux Services Agricoles - PNASA) will support the generation, adaptation, dis ;emination and adoption of new agricultural technologies and practices, with a view to increasing the productivity of smallholders. At present, extension agencies do not adequately cater to the needs of these smallholders, although they continue to make large budgetary outlays. This calls for a restructuring of agricultural services both to generate budgetary savings and address production constrainlts at the grassroots. To this effect, the project will support a complete overhaul of agricultural services, including the merging of three former extension agencies into a single, multipurpose and decentralized National Agricultural Services Agency (ANADER), and the streamlining of the Regional Directorates (DRAs) of the Ministry of Ag;iculture and Animal Resources (MINAGRA). Emphasis will be given to the empowerment of farmers and the promotion of farmers' groups. The project will be fully in line with the public sector reform program supported by the Bank under the Economic Management Project (PAGE, FY93) in the context of C6te d'Ivoire's medium-term macro-economic framework (MTF). 1.03 The project was identified in 1989. It builds upon the findings of the initial Agricultural Extension Project (FY86), implemented over 1986-1991. Technical preparation was carried out by the Government, in close consultation with the Bank and other donors, over the period November 1991 to February 1993. This long preparation process has rermitted adequate ownership of project concepts by the Government. Project preparation was financed under the first two PPF advances totaling US$900,000 (para 5.05) and UNDP financial support in amount of about US$700,000. A large Pre-Appraisal mission including all donors which are active in the agricultural sector took place in February 1993. This mission was followed by a brief appraisal in April 1993, and by negotiations in March 1994. - 2 - II. SPCIO'ECONOMIC BIACKGROUND 2.01 Egcnomic Dvelopments in the l980s. CUte d'lvoire is emerging from a dozen years of .insuccessful internal adjustnent which failed to reverse the economic decline and reduce the growing social azid poverty problems. The economic and social crisis started at the beginning of the 1480s when the country faced serious economic problems: (a) macroeconomic imbalances that had grown to unsustainable levels, with a budget deficit of about 10% of GDP and a current account deficit of about 17% of GDP; (b) debt servicing problems as a result of the rapid build-up of external debt during the second half of the 1970s; and (c) distortion on domestic markets, contributing to an inefficient resource allocation. Finally, there was a marked deterioration in public sector management, especially among public enterprises, These problems were in essence an outgrowth of the period of surge in spending which followed the cocoa and coffee price booms of 1975-77. 2.02 Prior to 1987, adjustment policies were partially successful in reducing the main internal and external imbalances. The Government pursued contractionary fiscal and monetary policies, thereby sharply reducing the budget deficit and inflation. Moreover, the adjustment effort benefitted from the depreciation of the French franc, and from a short-liv d recovery of cocoa and coffee prices in the mid-1980s. However, with the renewed decline of prices on international conunodity markets, the Government delayed commensurate adjustments in producer prices. As a result, the country faced renewed fiscal and balance of payment crisis at the end of the 1980s. This crisis revealed not only inadequate macroeconomic policies but also persisting distortions in the economy including: (a) a trade regime that was still characterized by high tariffs and dispersion levels and a plethora of non-tariff barriers; (b) inadequate levels of resource mobilization reflecting the decline in domestic savings and solvency/liquidity problems of the domestic banking system; (c) continued State intervention in the agricultural sector, especially with regard to price and marketing policies; (d) continued dependence on a few primary commodities; and (e) a generally inefficient and bloated public sector, with limited capacity to provide services as evidenced by the poor health indicators and low literacy levels. 2.03 During the last four years, the country has gone through important political changes. The democratization process was strengthened by the first mufti-party and legislative elections in 1990. President Houphouet-Boigny was re-elected but died in office in December 1993, after having served as head of state for 33 years. He was succeeded by the President of the National Assembly, Mr. Konan Bedi6, who will finish Mr. Houphouet-Boigny's presidential term of 5 years expiring in 1995. 2.04 The Dire Ecologicad Consquences of the Expanding Agricultural Frontier. Agricultural growth which was central to the country's economic growth in the 60s and 70s was mostly due to conversion of forest areas into cropped areas, in addition to a shift in the production mix from food crops to highly remunerative coffee and cocoa, and liberal immigration policies which generated a rapid influx of labor to the country. However, overall productivity in agriculture did not increase much except for a few crops such as palm, cotton and rubber. As a result, the average agriculural growth declined in the 80s to about 1.5% p.a. (a full percentage point below rural population growth: 2.5%) when agriculture became confronted with the prevailing adverse macro- economic context. Similarly, the gradual disappearance of the rain forest led to a drastic decline of timber production. In addition to the expanding agriculture frontier fueled by rapid population growth, uncontrolled logging and burning, illegal hunting and fuelwood collection have led to severe - 3 - ecological problems such as soil degradation and erosion, as well as loss of wildlife and biodiversity. Agricultural land once considered abundant has become relatively scarce, and the fallow period has been gradually reduced, impeding natural restoration of fertility. Also, rapid deforestation and increasing encroachment of remaining forests by immigrant farmers have led to the disappearance of the forest cover. Of even greater concern than the decline in timber production are the potential ecological consequences of continued deforestation. The opening-up of the forest canopy, if unchecked, will have far-reaching consequences for the country's ecological balance, and may, on a permanent basis, affect negatively its agricultural and overall economic development. 2.05 Ca.aci Builine, the Missing Link. Human and institutional capacity, key to development efforts, is still weak in CBte d'Ivoire. On one hand, since Independence, there has been undoubtedly too much government interference in economic activities. This has resulted in insufficient development of a strong independent private/associative sector vis-a-vis the Administration, especially in rural areas. Further development of NGOs, local collectivities and associative groups is needed so that people at the grassroots have a say in policy matters that affect their lives. Progress on this front is significant - as testified by the emergence of a strong cooperative movement in agriculture (paras 3.17 to 3.19) -- but there is still large scope for further professionalization of economic activities. On the other hand, the country has been plagued by the omnipresence of inefficient and blotted parastatals - such as SATMACI, CIDV and SODEPRA, the former extension agencies being dismantled under the project --, whilst the Administration itself has been overly centralized and inflated beyond budgetary resources. The Government, as part of its national administrative reform program, is deploying major efforts to streamline and deconcentrate / decentralize administrative services, and ensure the attendant promotion of professional groups. These efforts are supported by the Bank-financed Economic Management Project (PAGE, FY93) as far as the restructuring of central administrative services is concerned, and, by the present project, as far as the restructuring of agricultural services is concerned. 2.06 The Urbanization Trend. Since Independence, Cote d'Ivoire has experienced a very high rate of population growth and urbanuation. From 1950 to 1991, the country's overall population increased from 3.2 to 12.5 million (3.7% annually) and the urban population from 0.5 to 6.1 million (6.2% annually). The urbanization trend has accelerated over the last two decades (about 8% per year) and the urban population now represents close to 50% of the country's total population of about 13 million. It is estimated that it will represent more than 60% in 2010. This migration has supported the growth of the urban economy, but it has placed an increasing strain on the Govermnent's ability to provide basic services and food to an expanding urban population. The problem will worsen as government resources become severely curtailed and sluggish economic growth restricts employment creation in urban areas. The economic recession has led salaried employment in urban areas to fall by one third since the beginning of the 1980s, and close to 20% of the active labor force in Abidjan is unemployed. 2.07 Recet Economic Developments (1989-1993). Faced with an unsustainable economic situation, the Government adopted a new stabilization and adjustment program in mid-1989. As one of the principal measures of this program, guaranteed producer prices for cocoa and coffee were halved which helped eliminate the deficit of the Agricultural Stabilization Fund (CAISTAB), hence reducing the overall fiscal deficit. While progress was achieved under this program during 1989-90, additional structural reforms were deemed necessary for restoring international competitiveness and growth. This led to the design of a Medium-term Economic Framework (MTF) for 1991-95, spelling out an internal adjustment strategy which was supported by a stand-by arrangement of the IMF and three Bank adjustment operations in the areas of finance, competitiveness/regulatory reform and human resources development. Although the Government initially made progress in cutting the - 4 - primary deficit in the early 1990s, its failure to effect a real depreciation of the CFA franc with internal adjustment measures and the continued high outlays for public salaries during 1990-93, resulted in the failure of the MTF to materialize as planned. With the deepening of the recession in 1993, the primary deficit rose again to 3% of GDP, and the Government's efforts to settle domestic and external arrears faltered. 2.08 The continuing fiscal and balance of payments problems revealed in part the limitations posed by the internal adjustment strategy. When this strategy did not yield the anticipated economic turn-around, policy slippage intensified. Delays in the implementation of the economic reforms were also caused by institutional weaknesses, now being addrtssed through three Bank- financed technical assistance projects. As a result of these macroeconomic difficulties, the economic decline observed since 1986 was not halted and investment levels remained at a low 10% during the early 1990s. Real GDP contracted by a cumulative 4%, and, on a per capita basis, by a cumulative 18% during 1990-93. Confronted with a deteriorating economic situation, the Government decided, together with ;.s partner countries in the CFA zone, to complement the on-going internal adjustment efforts with a realignment of the parity of the CFA franc to the equivalent of 100 CFA to I FF, effective as of January 12, 1994. The Government expects that -- with the parity change and the implementation of the accompanying fiscal monetary, and structural adjustment policies - the Ivorian economy will be able to maintain and strengthen its restored international competitiveness and return to a sustainable growth path. 2.09 Medium-Term Economic Program (1994-96). Following the CFA devaluation, the Government has spelled out a new stabilization and structural adjustment program for 1994-96 in a PFP which was discussed by the Committee of the Whole in March 1994. The PFP aims at: (a) increasing real GDP growth') an annual rate of approximately 6% beginning in 1995-96; (b) generating sustained and increasing primary budget surpluses; (c) strengthening external competitiveness through trade, price, and regulatory reforms; and (d) intensifying human resource development and increasing efforts to alleviate poverty. These objectives have been translated into a broad-based adjustment program which includes: (a) a comprehensive fiscal reform; (b) import tariff reform and elimination of non-tariff barriers; (c) further price liberalization; (d) other reforms to stimulate private sector development and the country's international competitiveness, including increasing labor market flexibility, introducing a new investment code, and deregulating domestic and maritime transport; and (e) a broadening of social measures. Budgetary discipline will be key to attaining these objectives. In a first move, the Govermnent introduced a series of tax measures in January 1994 and complemented them with other fiscal measures incorporated in the revised 1994 Budget Law. These measures included a VAT reform, revision of petroleum taxation, and the reduction of import tariffs. Moreover, the Government has limited the civil service base wage increase in 1994 to a nominal 10% which tr.uslates into a substantial decline in the real wage bill. In line with the PFP, the Government has identifiei moasures to be implemented quickly that are critical to economic recovery. These measures will be supported by a proposed IDA-financed Economic Recovery Credit (ERC), and subsequent complementary reforms by a set of other sector adjustments operations, among which a proposed IDA-financed Agricultural Sector Adjustment Credit (ASAC). 2.10 With the decision to complement internal adjustment measures with a devaluation of the CFA franc, the Government is effectively addressing some of the main obstacles for renewed growth, including the lack of international competitiveness and unsustainable fiscal and balance of payments deficits. This historic change in policy direction augurs well for a successful implementation of the reform program. The recovery of the economy will be led primarily by the agricultural sector and agro-industries. In this context, trade and price policies as well as private sector development rank prominently on the Government's reform agenda. These policies are - 5 - expected to stimulate the demand for labor and, in this way, help contain the spread of poverty, especially in rural areas. III. SECITORAL SETrING A. Overview of the Agricultural Sector 3.01 Agro-EcoIogical Regions. COte d'Ivoire's total land area of 322,000 km2 is divided into two distinct ecological regions, each with different farming systems and demographic characteristics: (a) the richer Forest RAion in the South (140,000 km2) where past growth has been concentrated, based on tree crop farming (coffee, cocoa, oil palm, rubber) and timber exploitation; and (b) the Savannah Regio to the North with a dryer climate and poorer soils (182,000 km2) where farming is based on cotton, food crops and extensive livestock raising. The average rural population density is still low (17 persons/km2), in particular in the savannah region (10 - 15 persons/km2) where land is not yet a production constraint. The forest region is more densely populated (20 - 30 persons/km2), with land becoming a constraining factor in a growing number of areas. 3.02 Agriculture as the Engine Qf Growth. CBte d'lvoire's main growth potential remains the efficient and sustainable use of its considerable agricultural resources and the development of industries and services which supply agriculture or process agricultural raw materials for the domestic or export markets. Between 1960 and 1980, the agricultural sector was the main engine of growth of the Ivorian economy, with real value added in the sector increasing by nearly 4% p.a. This performance was the result of a combination of favorable circumstances: abundant land; high immigration of productive labor from neighboring countries; favorable international prices for the country's main export crops; and a stable political environment. Most of this growth was obtained by increasing the areas cropped and by shifting the production mix towards more remunerative cash crops such as coffee, cocoa, rubber and cotton. This resulted in a gradual change in the structure of the agricultural GDP, with the share of export crops rising over the 1965-85 period from 35% to 45% of total GDP, while the share of food crops and livestock declined from 55% to 45%, and forest production - after rising to more than 10% - fell to 5%. In 1992, COte d'Ivoire remained the first producer of cocoa in the world with 790,000 tons, the second producer of robusta coffee with 190,000 tons after Indonesia, and the third African producer of cotton with 194,000 tons. The country has great potential for rubber production for which it has the highest yields in the world (total production was 72,000 tons in 1992). Except for rice and wheat, the country is self-sufficient in food. 3.03 Livestock production also presents an interesting potential, and has shown substantial improvement in the past decade, as evidenced by the following achievements: (a) yearly production of meat increased by 4% between 1980 and 1986, then by 2% from 1986 to 1988; (b) increase in poultry production led to trade in animal products amounting to CFAF 38 billion in the same period and a well-structured animal products marketing channel; and (c) in 1992, the total domestic production of meat and off-al amounted to 52,700 tons was estimated to be worth CFAF 46 billion, which represented 51% of domestic demand. The most important achievements concerned: (a) cattle growth based on the use of reproductive production capital and better range management; (Q) the emergence of a segment of the farmer population with livestock husbandry stalls; and (c) the establishment of short cycle animal husbandry with better trained professional producers. The above - 6 - activities, however. proved costly, and the articulation between reseerch and extension insufficient. As a result, achievements in enhancing animal production to date remain fragile. 3.04 EQE. Forestry remained for a long time (1960s-early 1980s) a key sector of the Ivorian economy. Total timber production went up almost fivefold between 1960 and 1980 before declining steeply after 1984. Export earnings from timber, estimated at CFAF 110 billion on 1984 declined to a CFAF 78 billion by 1991. The main reason for this decline has been the destruction of the natural forest, caused by encroachment by migrant populations into forest areas, and inappropriate logging policies and practices, resulting in the reduction of high quality timber species. These factors, coupled with increasing production costs, have resulted in a loss of competitiveness on external markets. In view of this situation, the Government of Cote d'Ivoire adopted a National Forestry Plan in 1988. On the basis of this plan, it initiated in 1989, with support from the World Bank, a major Forest Sector Rehabilitation Program (Ln 3186 IVC) whose objectives are to (a) stop the destruction of the national forest; (b) ensure a sustainable production of industrial timber through the improved management of natural forests and the development of industrial plantations; (c) improve the efficiency of the domestic wood processing industry; (d) protect the country's national parks; and (e) promote a better management of the interface between agriculture and forestry. 3.05 Toward Agricultral Intensification. Until recently, the emergence of localized land constraints resulted in migration rather than agricultural intensification. However, with land scarcity becoming more widespread, the adoption of more land intensive agricultural practices will be necessary. It will have to be accompanied by measures addressing land tenure issues, to offer farmers gradually more permanent rights to using the land so that they have incentives to undertake the necessary investments. There is already an increasing demand from farmers for more secure land tenure rights building on customary systems, and for extension advice that will support intensification of cropping activities. Research will have to develop technologies necessary for sustainable/sedentarized agriculture tailored to farmers' limited financial means. 3.06 Agriultual Produtivity. Increases in labor productivity are difficult to assess because of lack of reliable estimates of yields and labor inputs. The difference between real growth in agricultural GDP and rural population growth has been about 1.5% p.a., incorporating both the shift in product mix and labor productivity increases. The latter has therefore been low, probably less than 0.5% p.a. This modest increase reflects different situations across crops. In particular, whereas cotton yields have nearly doubled over the last twenty years, coffee and cocoa yields have not changed (except coffee yields on new plantations with clone varieties) and increases in food crop productivity have been very limited. For the most part, Cote d'lvoire farming is still at a basic level of technology and yields are far below potential (Annex 1!. In the short-run, substantial productivity increases can be achieved by the adoption by farmers of relatively simple low-input improvements in husbandry practices. Adaptive research needs to develop technology that quickly offers attractive reuns to farmers, i.e. practices which are cost-effective and raise farmers' income at grassroots level. In the medium to long term, sustained productivity gains will require the adoption of a steady flow of increasingly sophisticated technologies. This will require not only improvement in technology generationldissemination, with resulting needs in upgrading the capacity of the country's research and extension systems, but also development of efficient input supply systems, better availability of credit to finance new technologies, as well as the emergence of a new class of farmers better educated and more open to progress. 3.07 Growth Targe. With a medium- to long-term population growth projected at 3.5% p.a., agricultural production will need to grow by 4% p.a. at least to meet the country's domestic demand for food and raw material, and to sustain a growing flow of exports. With a growth in rural - 7 - population estimated at 2.5% in the forest zone and I1% p.a. in the savannah, the productivity of labor in agriculture will need to grow by about 2% p.a. to meet this challenge. If such an increase were not to happen, future ruial growth will be primarily a function of rural population growth (2.5 % p.a.). It will be further constrained, as production expands to marginal areas and soils become less fertile because of shorter fallow periods. This will result in stagnant or declining per capita incomes in rural areas. Beside its adverse consequences on the living conditions of rural populations, such a scenario will also have negative effects on the Ivorian economy as a whole, and will accelerate rural- urban migration. Continued action is therefore necessary to stimulate sustainable agricultural productivity. 3.08 V.Mmen's Utpd Potental. On another front, women play a preeminent role in agricultural production, food crops in particular. However, until now, they have benefitted very little from extension services, adaptive research, support to professional groups, or credit facilities. Therefore, women's potential for boosting agricultural growth has not been fully exploited, and development efforts will have to be increasingly targeted to women if substantial results in agricultural productivity growth are to be achieved. B. Asicultural Institufions 3.09 Agricultural Semics. To date, agricultural extension has been provided through various development agencies (SODEs) and crop-specific parastatals which have provided farmers with extension services, distributed inputs and sometimes dealt with crop processing and marketing. Amongst the four main SODEs three have been dismantled upon the creation of ANADER, the new extension agency on September 24, 1993. The Ivorian Company for Cotton Development (CIDT) continues to handle cotton and food crop development in the savannah region. Under the project, its activities will be limited to the two central northern regions. The other three recently dismantled SODEs had the following responsibilities: (a) the Company for Modernization of Ivorian Agriculture (SATMACI) was responsible for coffee, cocoa and fobd crop development in the forest region; (b) the Food Crop Development Agency (CIDV) was charged with food crop development throughout the country; and (c) the Livestock Development Agency (SODEPRA) was responsible for all animal resource development. Various specialized entities or projects are still charged with specific programs such as the Central Laboratory for Animal Nutrition (LACENA) in charge of animal health, the Tse-Tse Fly Control Project, the Pan African Rinderpest Campaign (PARC), the National Center for Artificial Insemination (CNIA), the National Project for Ovine Selection (PNSO) and the National Ovine Center (CNO). The crop-specific parastatals are the following: (a) Palmindustrie for oil palm and coconut; and (b) the African Rubber Company (SAPH), the Rubber Company of Grand B4reby (SOGB), the State Rubber Domain (Domaine HIvticole de l'Etat-DHE), for rubber production. These parastatals are slated for privatization under the National Privatization Program. 3.10 MINAGRA's Regional Directorates (DRAs). In 1993, the number of agents in MINAGRA's DRAs was over 4,100 with related budget for salaries and compensations estimated at CFAF 4.6 billion per anntun, and an annual recurrent cost budget of CFAF 600 million. Ministerial arretW NO 165 dated of September 3, 1991 which reorganized the DRAs resulted in overlapping functions between DRAs and various agricultural extension agencies. Fortunately, this arrete was never totally implemented. In fact, in March 1992, during a national seminar in Daloa on the topic of agricultural services, a new strategy was adopted based on thefarming systems approach. Under this strategy, the support services that should reach out to farmers should not be the responsibility of DRAs. This was one of the key decisions that gave momentum to the start-up of project preparation. 3.11 Studies and seminars have also demonstrated that the services in the DRAs did not have sufficient working relations with each other. Other difficulties were the lack of coherence in monitoring and evaluation activities, a deficiency in the policy framework for project implementation, the lack of reliable field information, an insufficient analysis of regional potentialities and inflated numbers of staff with unclear responsibilities and limited means. Clear delineation of the role of the Government and provision of human and financial resources that are key to efficiency, are undoubtedly two priority orientations that have emerged from past experience. 3.12 SLffLng. In 1992, the total number of agricultural services' staff was more than 12,000. These staff were posted in the various agricultural institutions as follows: SATMACI, 2,775; CIDV, 785; CIDT (extension), 1,935; SODEPRA, 1,630; MINAGRA (central), 1,520; and MINAGRA (regional services), 4,136. Many of these staff occupied ill-defined and/or redundant positions, and their overall number was excessive. Moreover, their work was insufficiently organized and they lacked motivation. There is a need, filled in part under the project, to establish efficient personnel management systems that will enhance staff incentives and clearly delineate their responsibilities. The fact that many agencies are still submitted to public employment rules, which are rigid (in particular not adapted to managing field staff) and not always applied equitably, do not act to improve the situation. These agencies are confronted with serious human resource management problems, inter alia: (a) lack of an effective administrative monitoring coupled with a misappreciation of the quality and the quantity of the available human resources; (b) absence of precise definition of several functions, and hence, an inadequate coordination between these functions and lack of coherence between the corresponding expertise required; and (c) lack of human resource management tools allowing to assess selection and promotion criteria. 3.13 Agricultural Research Institutes. Agricultural research comes under the authority of the Ministry of Highenr Ecication and Scientific Research (MESRS). It is mainly handled by two research institutes: (a) the Forest Research Institute (IDEFOR), dealing with the industrial or export crops grown in the forest area; and (b) the Savannah Research Institute (IDESSA), running research activities on cotton, livestock and food crops in the savannah region. In addition to these two institutes, there are two other structures which deal with research in agricultural technology: the Ivorian Technological Research Center (CIRT), and the Ivorian Institute for Tropical Technology (12T). These two structures have been merged into a single Research Institute for Technological Development (IRDT). The above institutions were recently given legal status of mixed enterprise (SEM). The Ivorian agricultural research system has produced results of high standards in the past, in particular for cash crops. However, it has also had serious shortcomings which explain its present difficult situation: (a) food crop research has essentially focused on rice, maize and yam; (b) a strong crop-specific orientation has not permitted to conduct research on essential issues such as farming systems, intercrop linkages or financial feasibility of technological packages; and (c) relationships between research institutes and extension agencies have been inadequate. 3.14 In 1984, the full ownership of the country's agricultural research system was transferred to the Ivorian Government. Thereafter, until 1991, the system was jointly managed by the Ministry of Higher Education and Scientific Research and the French Center for International Agricultural Research and Development (CIRAD) under temporary arrangements. Over the years, however, cooperation became increasingly uneasy, and, in June 1991, when the new institutional set- up for agricultural research was established, the management contract with CIRAD was canceled. Another restructuring program is currently being prepared. It aims at ensuring the long-term scientific and financial viability of the system through close collaboration with beneficiaries of research products (development agencies, private companies) and external research agencies. This restrucuring necessarily entails complex changes. In the meantime, the proposed project will continue to support the adaptive research programs that have been initiated under the Agricultural Extension Project. These programs are largely based on-farm trials. 3.15 Agricultural Training Institutions. Agricultural training is undertaken through three types of institutions: (a) two public institutions providing high-level agricultural training, the National School of Agricultural Sciences (ENSA) and the Agricultural Institute of Bouakd (JAB); both institutions are under the authority of the Ministry of Higher Education and Scientific Research (MESRS) and provide B.S. level training; (b) ten other schools provide technical training for students willing to become base-to medium-level agricultural field staff; these schools are under the authority of MINAGRA. The students who graduate from these schools are qualified to provide extension services in agriculture, livestock, forestry and fisheries. During the last 20 years, they have been the main source of extension staff of the different development agencies. These schools, however, suffer from two weaknesses: their programs are too theoretical and do not fully answer the needs of development programs, and the lack of training of trainers remains a major handicap; (c) the training centers of the rural development agencies aiming to provide operational capabilities to field agents without basic agricultural training or no theoretical training. Training programs undertaken in these centers are not oriented toward production systems. The weakness in these centers is essentially related to their lack of planning, weak human resources management preventing from assessing the needs, and absence of regular financing. 3.16 Agricultural Statists. Only one national agricultural survey was conducted in C6te d'Ivoire in 1974 on a sample of 6,00 farmers. IThis survey has never been updated systematically, so that there is at present a dearth of basic statistics on farm characteristics and production parameters, including in such critical areas as the age structure of cocoa and coffee plantations or the patterns of food crop production. Only the so-called industrial crops are subject to statistics based on administrative information which are unfortnmately often available with a time lag. The institutional framework for collecting agricultural statistics needs to be completely revamped. 3.17 Farmers' Associatios. The development of a broad cooperative movement has long been one of the Government's stated objective. Government strategy has been to encourage the creation of pre-cooperative groups (GVCs) around the marketing of export crops (coffee, cocoa, cotton) by offering a small premium for products marketed under cooperative arrangements. The strategy has been fairly successful. In 1991, in the forest region, about 3,000 GVCs marketed about one third of coffee and cocoa, and in the savannah region, 550 GVCs marketed about 95% of cotton. In 1991, the urnover of the cooperative movement was more than CFAF 100 billion and rebates to GVC amounted to about CFAF 7 billion. GVCs, in particular in the savannah region, are also becoming major agents in the distribution of agrochemicals (Annex 2). 3.18 The Government has also encouraged the establishment of apex structures, such as regional unions of cooperatives (42 such unions existed in 1992), to strengthen the economic basis and the bargaining power of GVCs. The financing and management crisis brought upon the once all- powerfil monopolistic parastatals by the drop of commodity prices in international markets and the Government's severe budget constraints, has dramatically underscored the inability for the Government to meet all farmers' needs and the necessity for the latter to be more self reliant. In the savannah region, the Unions of Cotton Cooperatives (regrouped into the Federation of Northern Unions) have recently come to play an active role in establishing producer prices and defining relationships with CIDT. In the forest region, rubber growers have also estahlished a producers' professional association. Ihey are requesting that the responsibility for extension and other services to farmers be transferred from SAPH to the newly-formed association. In May 1992, the regional unions of the South were regrouped in the Federation of Southern Unions. However, the above apex - 10 - structures remain fragile. Their development will require continued commitment from the Government through the provision of technical support as well as appropriate measures to facilitate the real integration of the cooperative's unions in the national and international trading system. 3.19 Cooperatives are currently facing a number of difficulties, inter alia: (a) strong competition with private traders who have better links to the local banking system, and, thus, have greater credit facilities; (b) lack of technical support provided to these cooperatives by agricultural parastatals; (c) poor training in matters pertaining to cooperative organization and management; and (d) inappropriate and often unenforced legislation. For the 1993/94 coffee/cocoa campaign, the Government decided that a new marketing mechanism be established consisting in the creation of purchase centers. These centers were meant to be the required loci of transit of production following primary collection prior to being marketed to export centers. The stated objective of the Government in establishing these centers was to give sole responsibility for primary collection to producers and their professional organizations, and increase their responsibility and leverage downstream of the marketing chain. Another objective was to ensure that official campaign prices are respected. These prices were set at CFAF 200 and 170 per kg for 1993/94 for cocoa and coffee respectively. They were readjusted to CFAF 240 and 220 after the January devaluation, with the price of coffee raised again to CFAF 275/kg in March 1994. The Government's marketing policy fell short of expected results because: (a) professional orgarizations did not have the capacity to systematically take over primary collection from private traders who have traditionally undertaken this task; and (b) there was insufficient control over the staffmg and management of purchase centers; in fact, a positive outcome for producers was hardly possible as these centers were not under the actual control of producers' groups and cooperatives. 3.20 Non-Governmental Organizations (NGOs) are very few in number -- not more than 70 for the entire country. They are involved in the promotion of village groups through technical training programs at farmers level and/or through small development projects. Their results vary widely. Valid technical results obtained by these NGOs are often not communicated to the regional or national agricultural services because of a weak relationship with the Administration. In addition, the NGOs face frequent financing problems which disrupt their operations. C. Government Agricultural Strategy 3.21 In the National Agricultural Master Plan (1992/2015) which represents the Government's blueprint for agricultural development in the long term, MINAGRA identifies the following main constraints to agriculture in the country: (a) extensive farming systems which are large users of agricultural and forest land; (b) low use of modern inputs and technologies; (c) lack of market orientation of the household farm economy; (d) research system poorly attuned to farmers' needs; (e) absence of rural credit; (f) weak marketing system with heavy government interference; and (g) an aging rural population. To address these constraints, MINAGRA has set the following objectives for agriculture development: (a) increase agricultural productivity and competitiveness through the introduction of modern farm technology; (b) enhance the quality of ag-icultural products; (c) decrease the tax burden on these products; (d) enhance food security by increasing food crop and livestock production; and (e) improve the management of natural resources, particularly the remaining forests. 3.22 To achieve these objectives, the Government's strategy focusses, inter alia, on the following areas: (a) retrenchment of the Government from direct production and marketing activities; (b) greater involvement of young men and women in rural activities; and (c) redefinition of agronomic research and extension to better respond to farmers circumstances. This strategy is to - 11 - allow resumption of agricultural growth, reduction in budget deficits, and correction of negative effects of forest depletion. Consistent with this strategy, MINAGRA aims to take the following specific orientations along crop-based activities: stabilization of cocoa production; deliberate restarting of coffee production; reestablishment of the competitiveness of coconut and palm sector; retrenchment from the rubber sector by privatization measures with attendant policy to establish a better institutional environment and to support smallholders; beginning of the privatization process in the sugar sector; streamlining of the cottonfliWre; promotion of food-crop production by improvement in marketing, storage and food-processing; promotion of livestock, better pest control, and empowerment of breeders' associations; and diversification of production through promotion of fruit, vegetable, and flower production. To complement these specific crop-based orientations, MINAGRA intends to focus on cross-product measures with a view to streamlining agricultural extension, improving adaptive research, and promoting environmentally sustainable agricultural practices with close linkage between agriculture, forestry and livestock. In the above perspective, the rejuvenated agricultural services are to play a key role. Their restructuring is taken as a central piece within the general strategy of rationalizing government services and increasing empowerment of farmers and grassroots organizations. MINAGRA has defined its strategy for agricultural support services as part of the Agricultural Services Policy Letter (LPSA) that was agreed at negotiations (para 7.01 (a)). D. Bank Sector Strate r and Lending Prt ram 3.23 At the macro-policy level for the agricultural sector, the Bank advocates continued support to the Government's efforts to: (a) reform the Administration and reduce budgetary costs; and (b) improve the competitiveness of agriculture and maintain a functioning market-oriented economy in the agricultural sector with a focus on viable crop production activities. Initial measures in these areas were undertaken as part of the Agricultural Sector Adjustment Program (ASAL, FY 89); they will be pursued under a new adjustment program (ASAC, FY 95) being prepared following the January 1994 devaluation. In addition, to lay the basis for long term growth in the sector, the Bank also attaches key importance to generation/dissemination of improved technology responding inter alia to the need for intensification of agriculture and diversification into viable cropping activities, and rational management/conservation of natural resources. Issues related to the areas, as well as macro- economic issues, are being investigated as part of the Agricultural Sector Review to be completed by end-CY94. 3.24 In support to the above objectives, the Bank advocates a lending program for Cote d'Ivoire's agricultural sector with the following orientations: (a) in line with the overall administrative reforn program, continue to assist the Government in the restructuring of agricultural service, and the streamlining of the Ministry of Agriculture and Animal Resources with a focus on MINAGRA's regional services which are targeted by the present project; (b) pursue an active policy of Wdxate sector promotion in the agricultural sector by: (i) creating an enabling environment for developing private sector activities, through further reform of the regulatory framework; this will require also effectiveness and transparency in regulations governing private sector activities; (ii) building/strengthening private sector institutions (including farmers' groups/cooperatives and professional organizations) concurrently to disengaging/streamlining the Administration; and (iii) assisting the Government in privatizing remaining parastatal activities; (c) pr§gggV_ft environment and ensure rational management of natural resources, by giving particular attention to key environmental issues, with emphasis on the interface between agricultural activities on one hand, and forestry, transhumant livestock, game ranching and management of protected areas on the other; and (d) systematically jinr4W gede ise into development operations. - 12 - 3.25 The above program is geared to the long-term. This holds true for support services (in particular the proposed project which builds upon the first generation Agricultural Extension Project (PVA, FY86)), and, perhaps more importantly, for private sector promotion, such as the Export Promotion and Diversification Project (PPDEA, FY96 see below). Furthermore, the Bank has come to realize that its comparative advanage, as an external donor to Cote d'lvoire, lies in providing support to the Government through national structuring projects. In this regard, and also because the former projects have not always given the expected results, the Bank is disengaging from area-based projects (such as the recently-completed Center West Project, FY85) and from crop-based fiNiSre projects (the last two projects which are nearing completion are the Oil Palm V and Rubber V projects, FY87). Parallel to the above change, the Bank will continue implementing structuring projects, such as the ongoing Forestry Sector Project (FY89) and the Rural Savings and Loans Rehabilitation and Promotion Projec (CREP, FY94). These projects are national in scope and designed to serve as framework for development activities in given sub-sectors. 3.26 As part of the above program, the Bank is now developing national projects in all major sub-sectors of agriculture and the Bank lending program is being brought to bear on the most important facets of agricultural development in Cote d'Ivoire. Moreover, in the environmental area, the Bank is assisting in the execution of the National Environmental Action Plan (NEAP, scheduled for completion by end-CY94). In addition to the proposed project, the lending pipeline consists of the following projects: (a) Rural Land Management Project (PNAGER); preparation of this project builds on a very successful pilot operation, the Rural Land Tenure Plan (PFR) financed partly under the recently-completed Center West Project (FY85); (b) Rural Equipment Project (PNER) focusing on provision of basic infrastructure at grassroots level, together with the strengthening of village level institutions that will permit to enlist villagers participation; this project is complementary to and being prepared in close liaison with the PNAGER project; (c) Agricultural Promotion and Diversification Project (PPDEA) that will be the cornerstone to assisting the development of the private sector; (d) Livestock Sector Project (PSE): this will be the first Bank involvement in the livestock sector; (e) Savannah Environment Project; this project will be central to pursue natural resource management with a focus on gazetted forest in the Savannah area; and (f) Agricultural Vocational Training Project (CMR) that will focus on training and generation of jobs for young farmers. In addition, the Bank is developing two operations to be funded by the Global Environmental Facility (GEF), i.e. the Ivorian part of the sub-regional Game Ranching Project (GEPRENAF, covering C8te d'Ivoire and Burkina Faso) and the Park Protection and Management Project (PCGAP). 3.27 Although the above projects are not policy operations, they will aim at supporting sector-wide strategies and will be used as vehicles to induce the required policy changes at sub-sector level. The pipeline of operations (including the ASAC), together with on-going projects, makes up a coherent program which should capitalize on the set of policy measures taken following the January 1994 devaluation and help bring about renewed agricultural growth. The present project undoubtedly is one of the center pieces of the program. It will be the vehicle to refocus government efforts on public service priorities and make support services adapted to the needs of farmers in the regions. It should bring about an empowerment of farmers, valorization of national human resources including women's labor, poverty alleviation and environmental protection. Expected results from the program are bound to be greatly enhanced with the improved macroeconomic framework brought about by the recent devaluation and accompanying policy measures. - 13 - E. Donor Activity 3.28 In the past, donors were very active in the agricultural sector. in receit years, however, their interest has slackened somewhat. Low performance in the sector combined with the Government's reticence to embark on macro-structural reforms have acted to give donors the incentive to shift resources over to other sectors. Donors' interest for the proposed project, nevertheless, is very high, as their strategies and programs all have some bearing on agricultural services. They participated actively in the project appraisal and agreed to all aspects of project design. The recent devaluation has enhaniced donor interest in the project, as it conmes in direct support to the new opportunities arising in the rural sector. 3.29 The strategies and programs of the major donors active in the agricultural sector are the following: (a) the French Fund for Aid and Cooperation's (FAC) strategy is to support activities aiming at the structuring (professionalization) of the rural sector, such as credit activities (FAC is cofinancing the proposed IDA Savings and Loans Project-CREP, FY94), land management (Land Registration Plan-PFR, which is contributing to lay the basis for the proposed IDA-financed Rural Land Management Project-PNAGER, FY95), farmers' associations, farmers' vocational training (pilot phase of proposed IDA National Agricultural Vocational Training Project-CMR, FY97) and agricultural research which is the object of protracted and difficult negotiations; (b) the French Fund fr Development's (CFD) lending program aims to improve specific crop-based (fili&re) activities (cotton, rubber, sugar, fruits), land management (Agro-Pastoral Units-UAPs) and small private enterprises; (c) the International Fund For Agricultural Development (IFAD) has a strategy focussed on the poorer segments of the rural population, particularly rural women and young farmers, through small credit systems, vocational training and support to farmers' organizations (the DabakalatKatiola project whose supervising agency is the Bank, and the North-West Area Development Project); (d) the German Technical Cooperation (GTZ) contributes to finance the following programs: regional agricultural development (Boundiali), agriculture stabilization (East Region), young farmers' promotion (Korhogo), dairy farming (Bouak6), tse-tse eradication, forestry, young farmers' vocational training (participation in the pilot CMR project); (f) the strategy of the European Union (EU) aims to: promote farmers' associations through micro-level investment projects; support the development of unions of cooperatives with financial and technical assistance; participate in the restructuration of agricultural sector institutions, essentially through the stabex funds for cocoa, coffee, rubber and cotton; improve management of environmental resources (Marahoud Park, counterpart funds provided to the Bank-financed Forestry Sector Project-FSP, FY89); streamline marketing of agricultural products through implementation of regional markets; and support livestock development with participation in rinderpest eradication campaign and dissemination of improved bovine and sheep species; and (g) the African Development Bank (AfDB) finances essentially rural development of the Western forest region, a soybean project in the North-West, a livestock support project in the four central regions (strengthening of livestock services, staff training, rinderpest eradication and water supply) and a forestry project in the savannah region. F. Lessons Learnt from Previous Bank Involvement 3.30 The proposed project is largely based on the lessons learnt under the initial Agricultural Extension Project (PVA) implemented over the period 1986-1991. The project aimed to support both agricultural extension through three development agencies (SATMACI, CIDV and CIDT), and adaptive research through two research institutes (IDESSA and IRCC). The legacy of the PVA has been positive in many respects. It has led, inter alia, to the following general achievements: (a) establishment of structured work programs for agricultural extension activities, based on the - 14 - Training & Visits (T&V) extension management system; (b) strengthening of linkages between adaptive research and extension; (c) systematic training provided to extension staff; and (d) increased attention to farmers' needs. In the area of administrative and financial management, the project contributed to: (a) improve financial and logistic support to extension activities, which before were heavily plagued by lack of funding and equipment; (b) improve budget programming and accounting procedures through computerized accounting systems; and (c) perform the systematic auditing of accounts. With regard to training, the project contributed to: (a) strengthen the skills of the implementing agencies' trainers; (b) appoint and train Subject Matter Specialists (SMSs), responsible for training of extension staff and research-extension linkages; (c) provide continuous and systematic training of all extension staff through monthly workshops and fortnightly training sessions; and (d) ensure training of senior financial staff on procurement and disbursement procedures. The lessons learnt through the PVA project l have determined the design of the proposed project as indicated in the box below. 1 See "Project Completion Report, Agricultural Extension Project (Loan 2765-IVC)", June 10, 1993. - 15 Le"ous leart Project Design Lack of tarwou' paticpatio At least one third of the membrs of the Board of the proposed Agency would be -reesentatives from farmers' organizatons (para 4.08) Fores would be f11 partners in the adaptive research process (paras 4.12- 4.14). Pwtr _ t capety of Adequate taining program for both management and sxeut ecies wee not field level staff of the proposed Agency (pares sfficinly taken into 4.17-4.19 Annex 31 eccount Highly decenralized management structre of t proposed Agency (para 4.09). - Ezeesi -nMpbas oateoioal Building on both local (IDESSA) and intemational i.rnessages related to -W& crops (Burundi, Benin) experience, the project featues !Systemic Research Adaptation Sites (SARS), desiged to focus on the-farm s a whole and to bridge the p between research (systemic and themaic) and extension (paras 4.12-4.14; para 4.28). - NeesitY of effectiiV Moait6InMgI Provision of Monitoring/Evaluation facilities at - - l : I ntySte - - both national and regional level (para 4.21)^ Iou- -liaimtaumlio iven to Project to have women and youth related issues at . Issues .hc core ofth, a- r progpm ad of -technicalm-essge definition (pan 4.12). -- - suity -f ritcal ms bf - P---roject to result in aniualbudgetary savings, -aid to -unding -..-.- . .}pave the way for a gruwl icree of famers' fiancial responsibility for Agricultural Services (pam 4.16; pam 6.05). -Lack of £-dqpait of oopetive Project incorpoaes a farmers' organizations - - grotvps component designed to (a) promote and strengthen fArmers' oraizAtions and (b) impove and pmot coordination among farmers' orgazations (prs - - - - - - - - t - -- --- -4 1 54.+1 63) 16 - IV. PROJECT PRESENTATION A. P-iect Obiectives. Strateav. Summary Description and Rational 4.01 P Qe . The proposed project will be instrumental to support ontinued implementation of the Government's policy to develop the rural economy, disengage from commercial and production activities, and promote effective participation of beneficiaries in the definition, financing and implementation of agricultural services. The project will build on the achievements of the Agricultural Extension Project (Ln 2765-IVC, paras 3.30). Its main objectives will be to: (a) streamline and decentralize the organization of agricultural services; (b) enhance the role of the Ministry of Agriculture and Animal Resources (MINAGRA) in policy making and supervision of agricul.ural development; and (c) increase farmers' participation over the policy making process. 4.02 Project Strategy and Scone. The project will be implemented over a period of two years on a national scale and will be the first phase of a five-year program designed to support, through improved research and extension, the generation, dissemination and adoption of environmentally sound technology required to sustain productivity gains in agriculture in the long run. In line with the Government's overall civil service reforms, the project's strategy will be: (a) to improve the delivery of basic agricultural services through the establishment of a National Agricultural Services Agency (ANADER) which will be the Government's main sub-contractor for extension, adaptive research and support to farmers' organizations; and (b) to streamline and strengthen MINAGRA's Regional Directorates (DRAs) in each of the ten regions of the country. DRAs' role will be refocussed on their public service mandate geared to the establishment and implementation of agricultural policies and regulations. As part of this mandate, they will be given clear responsibilities and directions to assist in the development of private sector initiatives. The Government's strategy for Agricultural Support Services will be the agreed framework for project implementation. This strategy is geared to the long-term, and the project (and subsequently, the entire PNASA program) will support its first phases. The strategy is defined in the Agricultural Services Policy Letter (LPSA) which was agreed at negotiations (para 7.01 (a)). 4.03 SummarIy escriptiQn. In support of the above strategy, the proposed project will include the following components: (a) Restructuring Process (US$8.3 million) (US$2 million by IDA) designed to: (i) revamp agricultural services through the merging of three existing crop-based parastatal extension organizations into a single, multi-purpose and decentralized National Agricultural Services Agency (ANADER) with management autonomy and strong representation of farmers; and (ii) streamlinf MINAGRA's Regional Directorates (DRAs); this component is financed under the PPF and will be completed before 1roiect effectiveness; (b) Operating Support to ANADER (US$22.9 million) (US$12.2 million by IDA) geared to assisting in all facets of ANADER's operations, including adaptive research to be sub-ontracted to research institutes (IDESSA, IDEFOR and IRDT) and support to farmers' organizations; this c-iponenm will include extensive training activities to systematically upgrade the skills of all ANADER's staff; the component represents Part A of the project; and -. 17 - (c) institution1 (US$13.4 million) (US$7.6 million by IDA) of MINAGRA (all Regional Directorates, and the central directorates of Administration/Finance and Planning/Programming), the Ministry of Scientific Research and Higher Education-MESRS (Sub-Directorate of Adaptive Research) and the Ministry of Finance-MEFP (Sub-Directorate of Audit Control), with a view to strengthening ministerial structures involved in the support to agricultural services; support to MINAGRA will focus on policy-making and planning, monitoring and evaluation, and human resources and financial management; MESRS will be strengthened through support to adaptive research activities and MEFP through support to audit control activities (this latter support will be provided in close liaison with the Economic Management Projea (Cr. 2503-IVC)); this component represents Part B of the project. 4.04 Rationale for IDA Involvement. The proposed project is central to the Government's strategy to restore sustainable growth through delivery of improved agricultural services and redefinition of the Government's role in the agricultural sector. Implementation of this strategy has started in 1992 with the streamlining of parastatal agencies (CIDT, SATMACI, CIDV, SODEPRA) and the reduction of their staff. The project's main thrust, i.e. refocusing the Government's role on the provision of essential public services, empowering farmers and improving their skills, and reducing civil service cost, is also at the core of the Bank's strategy to foster efficiency aiid growth in the rural sector. Since 1986, the Bank has played a leading role in the restructuring of Cote d'Ivoire's national agricultural services. Its continued involvement in the second phase of this restructuring process is essential to sustain the Government's comnmitment to difficult and critical reforms and mobilize the support of other donors. B. Detailed Features 1. Restructuring Process (a) Objectef and Description 4.05 The restructuring component is designed to: (a) replace three existing parastatals extension agencies by a National Agricultural Services Agency (ANADER); and (b) streamline MINAGRA's Regional Directorates (DRAs). About 3,340 redundant staff will be dismissed in the process, and will be assisted to find employment outside the public service. An interministerial committee with representatives from MINAGRA, MESRS, MEFP and the Ministry of Civil Service (MINIFOP) was created in March 1993. It is meant to ensure general supervision of the restructuring process which is inplemented by the Commission for Restructuring Agricultural Development Institutions (CRIDA) acting as executive secretariat to the interministerial committee. A Business Information Office (BIC), created by ministerial arrete in April 1993 and implemented in parallel to the project with representatives in the regions, will facilitate the reemployment of dismissed staff (para 5.24). The successful implementation of the restructuring component is of key importance for the improvement of the cost effectiveness and quality of agricultural services, and for the effective decentralization of MINAGRA. As such, it has been considered the pre-requisite for project implementation. Therefore, Credit effectiveness will be conditioned upon successful completion of the restructuring process, with the exception of the operation of the BIC which should continue over the project period. - 18 - (b) Implem entation &trateg 4.06 The restructuring process was prepared from January 1992 to May 1993 by MINAGRA with the assistance of FAO under UNDP project IVC/92/005. Additional short term technical assistance to the restructuring process has been provided starting June 1993 by the FAO under UNDP project IVC/93/002 and the IDA Project Preparation Facility (2nd and 3rd PPF advances, para 5.05). The staff census at SATMACI, CIDV, SODEPRA and MINAGRA's Regional Directorates (DRAs) was completed in February 1993. The definition of the mandate of ANADER and the DRAs, as well as their organigrams and job descriptions, was Jmpleted in September 1993. 4.07 Implementation of the restructuring process started with the creation of the National Agricultural Services Agency (ANADER) by presidential decree of September 29, 1993. This measure was followed up by the attendant dismantling of SATMACI, CIDV and SODEPRA; it also dealt with the restructuration of MINAGRA's regional services (DRAs). These measures were pursued by: (a) the evaluation of the assets of farmer agencies (SATMACI, CIDV, and SODEPRA) to be transferred to ANADER (condition for negotiations); and (b) the completion of the selection of ANADER's and DRAs' staff (condition for Board presentation). Evidence that all staff of ANADER and DRAs are in post and that redundant staff have been dismissed is a condition of effectiveness (para 7.02 (a)). Dismissed staff will benefit from project assistance to seek new employment in the private sector through the BIC office (para 4.05). The French Fund for Development (CFD) has agreed to provide financing of their legal severance rights (para 5.08). Those staff who are civil servants will be given the opportunity to leave under the national voluntary departure program put in place as part of the overall administrative reform program. The civil servant staff who select to join ANADER will have to resign from the public service before the end of a two-year period of leave without pay. The transfer of the assets of the former agencies to ANADER should be completed before December 31, 1994. An assurance to this effect was obtained at negotiations (para 7.01 (b)). Similarly, all debts of the former agencies should be transferred to the Ministry of Finance for appropriate disposal under for the national debt restructuring program. 2. Operating Support to the National Agricultural Services Agiency (ANADER) 4.08 ANADER has mired socety (SEM) statutes. The Agency is the Government's principal implementing agency with regard to extension, adaptive research and support to farmers' organizations. In those cases where the Government will choose another implementing agency -- as is the case with CIDT in the two Northern and North-West Regions - the Ministry will specify by agreement the relations between this agency and ANADER to avoid costly overlapping. To enhance the private sector's participation in ANADER's activities, capital subscription by private operators will be encouraged. In addition, at least one third of the twelve members of the Board will represent private operators and farmers' organizations. The Borrower agreed to make part of the proceeds of the Credit available to ANADER in conformity with the financing grant agreement between the Borrower and ANADER (para 7.01 (c)) and the project agreement between the Association and ANADER. The Government will bear full financial responsibility for ANADER during at least the first five years of its existence, with exception of the farmers' associations component (para 4.16). After project completion, an assessment will be made as to the possibilities to increase the private sector's and farmers' association financial responsibility in ANADER. The agency will be instrumental to implementating the Government's policy for extension. It will not have monopoly over extension activities. The objective will be both to avoid unnecessary duplication of activities with other partners on the field and to foster minimal competition to the benefit of farmers who should be able to choose from a variety of options. The large farmers, fanalers' organizations, agro- 19 - industries, and other economic agents present in rural areas who wish to organize (specialized) services for extension, adaptive research and/or support to farmers' organizations, will be encouraged to do so. (a) Or anzation of ANADER at Field and Regiona-l evei 4.09 To better respond to the specific demands of each region, ANADER will have a strongly decentralized structure. The ten regional branches of ANADER will be headed by a regional representative and will comprise three technical services (extension and adaptive research, farmers organizations, and training/human resources management), one service for administration and finance, and one monitoring/evaluation unit. The regional branches will have broad autonomy with respect to human resources management, preparation and execution of annual work programs and budgets. These work programs will respond to the farmers' demands and will be elaborated during yearly programming workshops with participation from regional management, technicians and farmers as well as representatives from agro-industries. The workshops will capitalize on the Monthly Technical Review Meetings, and the data collected through the M&E system, as well as through the daily contacts between field staff and farmers. The annual work programs and related budgets will be prepared by regional management, discussed and completed during the annual programming workshops at regional level, consolidated at national level by ANADER's central management and submitted for approval to ANADER's Board. The programming and budgeting exercise will be monitored by the regional and national steering committees (Annex 3). 4.10 Extension SetU. The objectives of the extension component will be to: (a) improve organization and management of existing extension services; (b) improve women and men farmers' knowledge and know-how to increase their productivity and income; and (c) make the existing farm management systems more productive, stable and environmentally sustainable. The extension service will address the farm as a whole, rather than focus on one particular farm activity. The extension system will be managed according to Training and Visits 5T&V) principles, and will be organized as indicated in the following box. - 20 - Oganization of th Exteision System (a) EWed gteio (FEWs) Number of stagf about 1880 in tot (one per 200 farm famifies); - Job descdption duriAg fortuigblly meetings, farmers and FEWs would inrea their un derstaaing of farmig practices and dynamcs through obsvaion and dicsion, and would install demonstration plots with new tech- niques. Farme would be invited to repeat these new techniques in tbhir own field; ' ' Equipment 50 cX motorcycle. (b) ziw Number of staff: 235 in total; - Job deisriptiot: supervie and coach an average of eigh FEWs; - Euipment Q100 cc motorcycle. : .. @.~ma -SIRM:S (SMSs) ; ^ mberof t'AiS about 220 in total; - b de} scriptio * .:SM$s would be responsible for th adaptation of tecical temes to fiumers contraints and for the taining of FEWsL SMSs would visit fms' fields regularly to increase their knowledge of the existing farm mmagement systems and to lear from farmes' reactiuns om earlier 4isseminated technical themes. They would also meet with -.searchers an a regular basis to discuss farmers' problems, to increas t:eir ow knowledge and to assist researchers in the onentation of their research programs; f - E- ipm. tt: ) cc motorcycle. ' *' '' Numberof*taff.: a tX5 in total; -bJobbdescripto district hiefs would visit supervisors aud FEWs at least once every fortnight. Supervision would focus on increasing the efficiency of the extension system, the skills of extension staff and logistics; < . Equpment compact car. 4.11 At the regional level, extension activities will be supervised by the regional service for extension and adaptive research. This service comprises a unit for support to adaptive research (see below) and an extension unit. The latter unit will be responsible for the efficient organization of extension activities and implementation of extension tools, and will oversee the definition of technical extension programs. The regional service for extension and adaptive research will be staffed with one service chief and one staff in each unit. The service will be equipped with three cars and one computer. 21 - 4.12 Aantive-Reserch Set-Up. The objectives of the adaptive research component will be to: (a) elaborate technical messages, based on a thorough understanding of existing farming practices, permitting farmers -- in partAcular women and youth -- to increase their revenue and productivity through intensification of cropping practices and diversification into profitable and environmental sustainable activities; and (b) improve research-farmer-extension linkages. 4.13 To bridge the gap between research results, both systemic and thematic. on the one hand, and technical messages, adoptable by farmers, on the other hand, one Systemic Research Adaptation Site (SARS) will be established in each region -- as much as possible in the immediate surroundings of the observation plots to facilitate management and to diminish costs. In each SARS, about 60 farm families will participate in the elaboration of trial designs and will test the proposed practices in their own fields. Proposed practices will be issued from three Systemic Experimental Sites (SESs) under control of research institutes, and from best farmers' practices identified on the field. The project will support investments and a part of operating costs of these three SESs. Special attention will be given to the impact of these practices on the whole farm management system. All researchers and Subject Matter Specialists (SMSs) will visit the SARS regularly to increase their knowledge of farmers' constraints and farmers' evaluation of research results. The information gathered through these visits will be crucial in the definition of annual research programs. Although ANADER will assume financial and administrative responsibility, the research institutes - IDESSA, IDEFOR and IRDT - will assume technical and scientific responsibility. Each SARS will be staffed with one researcher, three technicians (these three technicians will be a zoo technician, an agronomist, and the last one an agro-economist or economist), and three observers. Each SARS will be equipped with three 100 cc and three 50 cc motorcycles, agricultural equipment and inputs. 4.14 ANADER will, at the regional level, monitor adaptive research activities through the unit for support to adaptive research within the regional service for extension and adaptive research. This unit will be responsible for: (a) ANADER's participation in the development of technical programs for observation plots and on farm trials; (b) the linkages with research at the regional level; and (c) ANADER's participation, at the regional level, in the establishment of priorities for research programs under annual contracts managed by the ANADER. Both research and extension activities will be monitored by one national and ten regional steering committees with representatives from the private sector, ANADER, and research institutes. These technical committees will meet twice yearly. 4.15 Farmer's Orzanizations. The objectives of the farmers' organizations component will be to: (a) promote and strengthen farmers' organizations; and (b) improve and promote coordination among farmers' organizations. This component will be implemented by Farmers' Organization Specialists (FOSs, about 210 in total). The FOSs will meet regularly with about 20 farmers' organizations each to train and advise participants on creation of farmers' organizations, corporate management and accountancy, purchasing of inputs, rural credit, processing of agricultural production, marketing, and relations with other organizations in agri-business. FOSs will be trained to diagnose the needs of the wide variety of different farmers' organizations to give them capacity to formulate adequate recommendations. ANADER will closely collaborate with the EDFIUNDP/ILO Professional Organizations Project which focuses on the creation of second and third - level organiza- tions, to increase farmers' influence in the policy making process and to promote farmers' organizations capacities to market and export agricultural production. This collaboration will be formalized into an agreement. FOSs will be equipped with 100 cc motorcycles. 4.16 ANADER will encourage second level organizations - union of farmers' cooperatives - to take gradual charge of the FOSs. At the onset, these organizations will be invited to assure supervision and coaching of FOSs. During the project period, ANADER will continue to pay for - 22 - FOSs' salaries and operating costs. Once the second level organizations' financial and managerial basis is strong enough, they will assume fnancial responsibility as well. FOSs will then become the organizations' employees. At the regional level, the service for support to farmers' organizations will: (a) participate in the elaboration of managerial tools for farmers' organizations; (b) provide training to FOSs on the use of these tools; (c) prepare and organize monthly workshops for FOSs; (d) assure technical supervision of FOS; and (e) participate in the development of strategies, adapted to the local conditions, geared to create and promote farmers' organizations. The regional service will be staffed with one service chief and one staff. The service will be equipped with two cars and one computer unit. 4.17 Training and Human Resources Management. The objectives of the training/human resources management component will be to: (a) create within ANADER the capacity to conceive and organize training programs; (b) help staff adapt to new task descriptions; (c) improve technical, managerial and organizational skills; and (d) assure efficient human resources management. 4.18 All staff will undergo training in line with their job description in the initial stage of project implementation. In addition, field extension staff, who have in many cases focused on only one group of crops under the previous extension project, will need training to acquire a level permitting to adopt a systemic approach and to understand and master technical messages on other crops. Further continuous training will be provided to all ANADER staff for the duration of the project to upgrade skills of staff and improve their efficiency. Training organizations, such as the National Institute for Socio-Economic Development (INADES), the Agronomic Institute of Bouake (IAB) and the National High School of Agronomy (ENSA), will collaborate with ANADER to conceive training programs and to assure training of trainers. They will also contribute to the supervision of ANADER's trainers. 4.19 All training activities will be tailored to each job profile (Annex 4). High level staff participating in initial training, SMSs, FOSs and researchers participating in monthly workshops will benefit from per diems established by the Government and accepted by IDA. Training activities will be supervised by the regional training and human resources management service. This service will comprise two units: a unit for human resources management, and a unit for operational training responsible for supervision and coordination of all training activities in the region. The regional service will be staffed with one service chief, and one staff in each of the other units. The service will be equipped with two cars and one computer. 4.20 Administration and Finance. The regional service for administration and finance will be responsible for all logistics, financial management and book-keeping, and administrative management of personnel. These activities will be executed by three units: personnel administration, accounting and logistics. The regional service will be staffed with one service chief and one staff in each unit. The service will be equipped with one car, one motorcycle and two computers. 4.21 Monitoring and Evaluation (M&E). The regional M&E units will be responsible for: (a) monitoring the efficiency of ANADER's regional branches; and (b) monitoring and evaluation of the quality and impact of ANADER's field work. Monitoring of the efficiency of the regional branches will focus on farmers' participation in contact groups and professional organizations, respect of working programs, quality and regularity of training, cost effectiveness of ratios, and budgetary control. The quality and impact of ANADER's efforts will be monitored and evaluated against variations in farmers' revenues, farmers' reactions to technical themes, adoption rates, commercial performance and revenue increase of farmers' organizations. Regional M&E units will be responsible for collecting and processing of data, and will assure that technicians, supervisors, regional managers - 23 - and the central M&E unit will receive the information required. Most information will be collected by field staff during their daily contacts with farmers. However, a total of about 50 enumerators, each equipped with a 100 cc motorcycle, will be assigned to the different regional M&E units to participate in regular surveys. Each M&E unit will be equipped with one car and one computer unit. (b) Or anization of ANADER at National Leve. 4.22 ANADER will initially be managed by a General Director appointed by decree. At national level, ANADER will have four technical directorates, one directorate for administration and finance and three support units with the following responsibilities, monitoring and evaluation, organization, and equipment (see detailed presentation of ANADER's services in Annex 5): (i) Directorate for Extension: responsible for the efficiency of extension management and the quality of technical extension programs, and comprising an extension organization service and a technical extension program service. The directorate will be staffed with one director, two service chiefs and two assistants. It will have two cars and three computer units; (ii) Direorate Suort to Adapive Research: responsible for efficient research- farmers- extension linkages, and comprising a service for organization of adaptive research support and a service for technical programs of adaptive research support. The directorate will be staffed with one director, two service chiefs and two assistants. It will be equipped with two cars and two computer units; (iii) Directorate for Supoort to Farmers' Organizations: responsible for implementation of ANADER's strategy to promote and strengthen farmers' organizations. These organizations will be closely associated in the elaboration of the strategy and will become gradually responsible for this directorate. The directorate will comprise two services, one for the North and one for the South, responsible for support to management and structuring of farmers' organizations and for promotion of farmers' organizations. The directorate will be staffed with one director, two service chiefs and two assistants, and will be equipped with two cars and two computer units; (iv) Directorate for Training and Human Resources Management: charged with rational use of human resources and the appropriate training for all staff, and comprising a human resources development service, an operational training service and a service for production of pedagogical tools and documentation. The directorate will be staffed with one director, three service chiefs, four assistants in the service for production of pedagogical tools and one assistant in each of the other services. The directorate will be equipped with three cars and three computer units; (v) Directorate for Administration and Finance: to assure ANADER's accountability, manage ANADER's goods and equipment, and deal with the administrative aspects of human resources management. It will comprise a personnel and administration service, an accounting service, and a logistic service. The directorate will be staffed with one director, three service chiefs and three assistants, and will be equipped with two cars and three computer units; (vi) M&E Unit: responsible, in close collaboration with the regional M&E units, of the elaboration and implementation of the M&E system at local, regional and national - 24 - level. The national unit will supervise regional units and will continuously improve the M&E system. The national unit will have to ensure that data collected through the M&E system is properly processed and available at all appropriate levels. It will have to ensure close participation of all technical services at the M&E process. The national unit will have three staff and will be equipped with two cars and two computer units; (vii) Internal AuditingUnit: this unit will, at the Director General's request, ensure systematic internal financial control and will advise him on ways to improve the financial and administrative procedures. The national unit will have four staff and will be equipped with two cars and three computer units; and (viii) C.omrnIr Unit: responsible for the efficient computerization of AN4ADER's data processing, both at the regional and national level, It will train all staff concerned on the appropriate software and will assure maintenance of the hardware. The national unit will have two staff and will be equipped with two cars and two computer units. 3. Institution Strengheninng (a) MINAGRA's National Level Directorates 4.23 National Planning. The project will streamline and strengthen MINAGRA's Sub- Directorate for Planning and Budgeting within the Planning Directorate. The Sub-Directorate will focus on: (a) formulation of the Government's agricultural development policy; (b) preparation of policy implementation programs, annual investment budgets, terms of reference for studies, and modalities for appropriate use and distribution of study results; and (c) monitoring and evaluation. The Sub-Directorate will be equipped with two cars and two computer units. 4.24 Agricultural Statistics. The project will strengthen MINAGRA's Sub-Directorate for Statistics within the Planning Directorate, with regard to the regular production of reliable agricultural staistics in close collaboration with the National Statistics Institute INS). The statistical service will produce four quarterly and one annual report reflecting fluctuations in national agricultural production, prices, marketing, etc. FEWs will participate in data collection during one week after seeding and one week after harvest. All additional data will be collected by temporary staff (in most cases trainees). Data will be processed at district, regional and national level. ANADER's M&E unit will systematically share all its information with the statistical service. The Sub-Directorate will work closely with the proposal IDA-financed Rural Land Management Project (PNAGER) on implementation of the Geographic Information System (GIS) developed as part of the latter project. The Sub-Directorate for Statistics will be equipped with three cars and two computer units and will benefit from short term technical assistance. 4.25 Cooperatives Smport. The project will streamline and strengthen MINAGRA's Directorate for Mutuality and Cooperatives. This Directorate will focus on establishment of policies and regulations in the areas of farmers groups and cooperatives, and oversee implementation of these policies and regulations. It will, inter alia, complete by December 31, 1995 the study to assess the feasibility for CIDT to engage exclusively in the purchase of cotton-seed, the processing of cotton- seed and the marketing of cotton fiber. The same Directorate shall by December 31, 1995, revise as necessary the applicable regulations to agricultural cooperatives with a view to facilitate their establishment and operation. Assurances to this effect were obtained at negotiations (paras 7.01 (d) and (e)). The Directorate will disengage from all activities related to direct support to cooperatives - 25 - and training of farmers. These activities will be executed by ANADER and/or any eligible professional operators. At the national level, the Directorate will be equipped with two cars and two computers. (b) KINAGRA R nal Directorates 4.26 Regional Directrates. The role of the Administration at the regional level will be limited to: (a) development of regional agricultural policies; (b) monitoring and evaluation of policy implementation; (c) enforcement of regulations; and (d) collection and processing of statistics. Ministerial arrete N°165 (September 3, 1991) defining the role of the DRAs was revised as a condition for Board Presentation. Regional Directorates (10 in total) will comprise one director and five services each, and will be equipped with three cars, four 100 cc motorcycles and eight computer stations. At the departmental level, departmental directors will represent the Regional Directorates. Where the departments are small (50 in total), the departmental directorates will be equipped with one car, five motorcycles and one computer station. In those cases (75 in total) where the department is too vast to be properly covered by the departmental officers, MINAGRA in addition will be represented at district level by a team of one agronomist in charge of pest control, one veterinarian, four forest police officers, and one cadastre officer (see detailed presentation including organigram in Annlx 6). The project will provide three 100 cc motorcycles at district level. 4.27 The five services within each regional directorate will have the following responsibilities, staffing and means of operation: (i) Service for Programming. M&E and Statistics: this service will comprise the section for programming and M&E, and the section for statistics and documentation. The service will be staffed with one service chief, two staff in the programming and M&E section, and three staff in the section for statistics and documentation. It will be represented at departmental level by a unit for programming, M&E and statistics. This unit will comprise two staff; (ii) Service for Administration and Finance: this service will comprise the section for humn resources management and the section for finance and equipment. The service will be staffed with one service chief, one staff in charge of human resources management and three accountants. At departmental level, one accountant will be assigned to the departmental directorate; (iii) Service for Natural Resources: this service will comprise the section for rural engineering, the cadastre section, and the section for natural resources. The section for rural engineering will benefit from separate financing through the proposed IDA - financed Rural Equipment Project (PNER) and the cadastre section will benefit from separate financing through the proposed IDA - financed Rural Land Management Project (PNAGER). The section for natural resources will have two staff at regional level, five staff at departmental level, and five staff at district level; (iv) Service for Pest. Seeds. and Veterinar Control: this service will comprise a section for pest and seeds control and a section for veterinary control. The service will be staffed with one service chief, one staff in charge of pest and seed control and one staff in charge of veterinary control. At deparunental level and at district level, a team of one agronomist and one veterinarian will be in charge for the field activities of this service; and - 26 - (v) Service for Monitoring of the Coerative Movement: this service will comprise a section for registration of farmers' cooperatives and a section for monitoring of farmers' organizations. The service will be staffed with one service chief, one staff in charge of registration and one staff in charge of monitoring of farmers' organizations. (c) MESRS's Strengthenin2 4.28 The project will strengthen the Ministry of Higher Education and Scientific Research- MESRS's Sub-Directorate for Adaptive Research to enhance its capacity to oversee research institutes as to their adaptive research activities. This sub-directorate will be equipped with two cars and two computer units and will, in particular, monitor research - extension linkages. Short-term technical assistance will be provided under the project. In addition, the project will finance through ANADER certain activities to strengthen both thematic and systemic research within the respective Agricultural Research Institutes (see box below). - 27 - ResWar Actiites IQ be finance-d under the Project - Number te; Description observation plots would continue to serve as multi-local trial sites for thematic reach programs to undertake varietal tes. Neighboring farmers would be invited to visit and evaluate the results of the differ- Mt trial plots; - Responsibility IDESSA, IDEFOR and IRDT would continue to assume scientific responsibility. ANADER would assume financial ad adminirtive responaibility; Number of staff : two obseers per observation plot; Equipment o: e 50 cc motorcycle per 'observer'. Systemic Expeimental Sites SEIS) - Number : three; - Description systemic research: development of agronomically and ecomically sustainable farm management systems to offer viable altenatives for th existing semi-itinerant farming practices; - Responsibility IDESSA would be responsible for three Systemic Experimental Sites. rawse sites woult be financed by the Agency; -- Number of staff : th SES' management team would be constituted by one techncal :dirctor,- oe ag. economist, and one communication specialist. b each site one systemic researcher, three technicians, four Oobservers, one driver and seasonal labor; - EquipmeCnt : in eah site one pick-up, three 100 cc and four 50 cc motorcycles, one computer, agricultural equipment and inputs. Sysgc ^ Ryser&4 Sites SARO) - - Number ten. on for eh region; - Description vietes, selected through the observation plots and systemic proposils -selcted by SES or by best farmers would be tested by: 5 farmers in .teir own fields; - Responbility . trial po pesigas would be elaborated by reseahers with the asstance of.SMS; ANADER would assume financid and admsrattive respon. aibility; SMSs would supervise the installaton and assue the monitot. ing of these trials tDgether with 'observers'; the trials would be in- stalled in the immediate surroundings of the observation plots to ftcilitate monitoring and to diminish costs; - Number of stf: existing SMSs and SARS staff; Equipment : exting equipment for SMSs and SARS. (d) as Sktenigthening 4.29 The project wil strengthen, in close coordination with the proposed Economic Management Project (PAGE), the Ministry of Economy, Finance and Planning-MEFP's Sub- Directorate for Control and follow up of the Parapublic Sector within the Directorate for Budgetary 28 Control. This sub-directorate will, in compliance with Ivorian legislation, be responsible for the annual auditing executed by qualified independent audit firm of each of the project's implementation units. The sub-directorate will select auditors in accordance with the Bank's rules, will assure the exploitation of audit reports and will monitor the implementation of the auditor's recommendations. One staff will be identified within the sub-directorate to be responsible for the timely transmission of audit reports for all IBRD/IDA financed projects in the agricultural sector and the monitoring of proper follow-up. The sub-directorate will be equipped with one vehicle and one computer unit. V. PROJECT COSTS AND LINANCING A. Cost Estimates 5.01 Costing Mett. Costs have been computed on an incremental basis bv estimating the total costs to be incurred in implementing the project, and deducting the costs that the Government would have borne in a hypothetical without project situation. In 1992, the Ivorian Government disbursed CFAF 12 billion in payment of extension agencies' salaries, and CFAF 2 billion (equivalent to only 15% of salaries) in operating costs, for the former extension agencies and the MINAGRA's regional services combined. It is unrealistic, to assume that the Government could sustain this level of funding in the scenario without project. This scenario, therefore, was based on the following hypotheses: (a) that the Government, whilst it would not undertake the major structural overhaul envisaged under the project, would nevertheless go ahead with elimination of staff redundancies up to a similar level, by dismissing all those staff not having civil-servant status; and (b) that there would be no finding to replace or make new investments in the adaptive research/extension system. 5.02 Cost Estmaes. Based on the above incremental costing method, total project costs were estimated over the project implementation period of two years (1994-96)2 at CFAF 25.9 billion (US$44.6 million). Of these total costs, about CFAF 9 billion (US$15.5 million) or 28% are in foreign exchange, and about CFAF 5.2 billion (US$9 million) or 19% in taxes and duties. The base costs were first estimated at May 1993 prices using the exchange rate of CFAF 290 to the dollar prevailing at that date. They were updated using the exchange rate of CFAF 580 to the US dollar prevailing in March 1994 (date of negotiations), following the realignment of the CFAF parity decided on January 12, 1994. The physical contingencies were computed at an average of 2.6% of base costs. Price contingencies on foreign exchange were computed on the basis of World Bank projections on international prices at the rate of 3.2%. Price contingencies on local costs were based on annual price increase of 40% for PYI (CY 94), and 15% for PY2 (CY 95) reflecting expected trends for general inflation in Cote d'Ivoire, and 15% PYI and PY2 reflecting expected increases for labor-related costs. Based on the foregoing hypotheses, total price contingencies amount to about 7% of base costs. 2/ The proposed project (PNA.IA Project) implemented over two years will cover the first phase of the Natioaal Agricultural Services Support Program (PNfASA Proqram) implemented over five years. - 29 - 5.03 Project costs are summarized below and details are given in Annex 7. P o'lec Cost Foreign Baseline .t talxcheo Totel tocat Exchange Totat f3oaW ;9M -I(CFAF mitlion) - (US (UiS t iort)Io) X X At oestructrwinu Pres 4129 590 4719 7.1 .0 8.2 12 Il8 RX O>eratf on SUDDor to SUDSR 1. Eitension 3342 2259 5601 6.5 3.0 9.5 401 24 2. Adaptive Research 674 272 947 1.2 0.4 1.6 15 4 3. Profeseiont "0. OPA) 925 850 1775 Le 1.2 3 40 8 4e Training &- Jwla Resouracs -51 - 400 918 1.0 .5 1.5 44 4 5. t4anesement Support 19 1109 3102 3.8 1.5 .3 28 13 -Sub-Xo'1aL -7- 452 4890 12342 14.3 6.6 20.9 31 53 C. . t4inlstry Agricutture . entret Direttorate$ 418 357 635 0.7 0.5 1.2 38 3 RegionaLt Drtorate 1791 2085 3876 3.7 2.9 6.5 54 17 Stuies. 1225 295 1520 2.3 0.3 2.6 12 6 .2. ti¶nistry of Sciantif ic Res. 220 257 477 0.5 0.3 0.8 54 2 N Mitilstry of Ec. & F inSfce 20 21 41 0.1 0.1 0.2 50 1 j S-Totoat 3674 3015 6549 7.3 4.0 11.3 39 29 TotaL Ins lir~e C9st 15255 8495 23750 28.7 11.6 40.3 28 sao R Pysicat: cntinencies 355 357 712 0.6 0.6 1.2 50 3 -E Price cntinenies 1577 245 1822 2.7 0.4 3.1 13 8 ,~~~~~~~~~~...., .........,,. .* .* .^ ................... ........... , .................. .+ . . 3: T;;al p-roTctv} Xo'17187 909 26284 32.0 12.6 4.6 2B 11I 5.04 Logistical Expenditures. Under the project, funding for logistical means (operating costs excluding payroll) will be greatly increased as a proportion of staff payroll, i.e. staff will be reduced but will have more means to work with. The estimated increases in logistical means are as follows: (a) from the level of about 15% of annual payroll (CFAF 900 million in 1992) for the former extension agencies, to a level corresponding to about 50% of annual payroll (CFAF 3 billion) for ANADER; and (b) from about 5% (CFAF 200 million) to 20% (CFAF 600 million) of payroll for MINAGRA's Regional Directorates. 5.05 Project Preparation Facility. Three PPF advances of US$300,000, US$600,000 and US$200,000 were granted to the Government in October 1992, June 1993 and March 1994 respectively. The first advance was used to finance: (a) the operation of the project preparation unit as of October 1993; and (b) specialized consultancies needed as part of the establishment of the Government's preparation report. The second advance served to finance: (a) staff evaluation by private consultants' firms; (b) technical and finar- l audits of the former extension agencies; and (c) training of the key project staff. The third adv& covers essential start-up activities. 5. ProjFncac i 5.06 Project costs will be borne by the co-finaciers as indicated in the box below: - 30 - Financing Plan by Project Comnonents gt VA _ _ AGCD LFAD AfDB Tlxes A/ Totat ....... -..*.(US$ million)- A. ftestructurinn Process 1. ST Cor ltencies 03 2.0 .7 - 0.3 .3 2. Severance Atlowances - - 5.0 0.0 5.0 .. . ,.. . .. ... ... --- --- Sub-Total 0.3 2.0 .7 S.0 - - 0.3 8.3 B. Oag tinu S& t to AD_ER 1. zn;m~o Extension - 2.2 - - - - 1.5 1.9 5.6 . Adept. Research - 0.3 - - 0.2 0.5 Professional Org. 0.7 0.7 - O.6 2.0 , Traintng & Hum. Res. 0.8 - - - - - 0.2 1.0 . General Management - 1.- - 0.1 0.8 2.6 Sub-Total - 5.7 - - 0.8 1.5 3.7 11.7 2. ODeratina costs . Extensfon 0.2 3.6 - 0.4 0.6 5.0 a Adapt. flesearch. 0.1 0.8 - - - 0.2 0.2 1.1 , Professional Or. 8.1 0.1 - - 0.7 0.1 0.2 1.1 Training & Hum. Res. 0.1 0.1 - .3 0.2 0.8 . General flanagement 0.5 1.9 . - - 0.1 0.2 0.4 3.2 _ - --- . . ..,-- - - Sub-Total 1.0 6.5 - - 0.3 0.8 0.8 1.6 11.2 C-. XJaUtutoti Stren1theninJ ,, 1. Investment 14MlNAGRA Cent. Dir. - 0.9 - - 0.1 - 0.1 .1 .1MAGRA :eslg. Dir. - 5 - - 0.2 - 1.6 5.3 - .:NAGRA-Studfe* sf ^ 2.2 - - - - 0.8 3.0 *nESRS - - 0.4 - - - - - - 0.4 - NEF - 0.1 - - - - 0.1 . . -: Sutb-Total - 7.1 - - 0.1 0.2 - 2.5 9.9 :::2. Coeratina cos.ts. ;tUIAGRA Cent. Dir. O.S 0.1 - - 0.2 - 0.2 1.0 -. MIMAGRA Reg. Dir. 1.3 0.1 - . 0.1 - 0.5 2.0 . ., t£SRS 0.2 0.2 - - - - - 0.4 . I4M1EF - 0.1 - 0.1 Sub -Totat 2.0 .5 - - 0.2 0.1 - 0.7 3.5 total 3.4 21,8. 0.7 5.0 .5 1.9 2.3 9.0dI 44.6 I total wIthout taxes l0 61 1 14 2 6 (19% TTC) .......... .......:. (Al A taxes ,ioutd b fina.nscd by the Gwverneent. ... g :AGC s.4hare of the trainini progran would go a as priority to upgrade the Livestock fietd ; tatff quqllflcutions. '' T288:.lhesef.+unds wouLd be earmarked es a priority to pursue ZINAGRA's studies for projects that are . --oaptementar to the PIIASA, in particuter the Rural Land Management Project 'i- participants on creation of faermes' organizotion3, corporete m&r.59r.cnt rnd ccc nz Co- i r. purchasing of inputs, rural credit, processirg of agric-ilturon 5:'_c en, "coaet;n, ,' d retatiorns with other organizations In agri-business _ ANNEX I1 Evaluation Project component lomponent's Objectives Critical Steps - Indlictors Daees Improve and promote Close collaboration between the Agency atu the EDF/UNOP/ILO Profeccional Orgntretionl coordination among Project which focuses on the crcation of second and third - level organizetiens Com' lIn. farmers organizations ___ _ _ ANADER - Training Create, within the Agency, Completion of training of Hu:man Resources iarnagers erd Treiniing uanclers 08-94 and Human the capacity to conceive Resources and organize training Assurance of external supervision of trainers Cortin. Management programs; __-_._-_- __ Help staff adapt to new C_mpletlon of first training of alt staff on job descripticn C C3-95 l ~~~~~task descriptions; taskldescriptions; CKr*ptetion of initial technical training for alt staff 03-95 Improve technicat, Provision of continuous technical training for all sta'f managerial and C6-96 organizational skilts; _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Assure efficient humaen Adaptation of training progranms to staff pe6Fc'rce i6-96 i__________________ resources management ANADER - Monitoring the efficiency Monitoring of farmerst participaticn in contact groupS ar. pro'es-.:ocI o -'irrizat e- _ C6-95 Monitorino and of the Agency's regional Evaluation branches; Monitoring of woewn farmers' partcipEtion _____C_6-°95 Monitoring of respect of working progrnms_ C6-9_5 Monitoring of quality and regularity of trainirg ____-95 Monitoring of cost effectiveness of ratios _ _ __ 0C6-95 l____________________________ Budgetary control 906-95 Monitoring and evaluation Monitoring of variations in farmers' rcvenues 09-95 of the quality and impact of the ANADER's field work Monitoring of women fermers' revenues _ 09-95 Monitoring of farmers, reactions to technicAl themes 09-95 Monitoring of edoption rates 0__-95 Monitoring of comrercial performance 09-95 Monitoring of benefits increase of farmers' organizations 09-__5 ANADER - Assure the Agency's Preaati of annual budgets _1-95 XAdministration accountability and Finance Assure general and analytical accountability 03-9S Assure budgetary control 03-95 Supervision of the accountability at the regional level 03-95 Manage ANADER's goods and Purchasing of goods and services 03-95 equipment l_________________ ._______ Supervision of logistical management at the regionat tevel 03-95 ANNEX II PAge 4 of 4 Evaluation Project Component Component's Objectives CriticaL Steps - Indicators Dates Assure the administrative aspects of human resources Assure supervision of regional administrative human resources management 03-95 management Institutional Support to MINAGRA's Formulation of the GCvernment's agricultural development policy 06-96 Strengthening of National Directorate for NINAGRA Planning/Sub Directorate Preparation of policy implementation programs, AnnuaL investrnnt budgctz, tern, of r-ofre-co 08-96 (National) for Planning and eudgeting for studies, and modalities for appropriate use and distribution of stLet reuts _ __ Monitoring and evaluation 06-S5 Strengthening of MINAGRA's Disengagement from all activities related to direct support to cooriirnt ves and tra ninq cf 03-95 NationaL Directorate for farmers Cooperatives Support Completion of the study possibility for the CIOT oriy to pur'har, sc-d cctfu, rrc e 12-95 fiber cotton trade Completion of revisior cf the corerative legislation to mere it more I-' . rorl lat - 12-95 .________________________ Monitoring of policy implementation and enforcrrent o<' r-egiat>ors ,_3-96 Strengthening of MINAGRA's Definition of the role of the Regional Directorat.r- (a) e e'a-)t C' r. i'- -O ' Regional DirectoraTes policies; (b) monitoring and evaluation of poticy imile-en*t:ion; C') S-c'.- regulations; and (d) colletction and oroceTsirg of st- iics, . Organization of Regional Directorates with a Service for Programming, tV&E -xc .0''- a Service for Administration and Finance, a Service foc Nauural -eourre' , s c- fc : 9$ Seeds and Veterinary Control, and a Service 'or Monitcr- e of th' - ' Selection and redeployment of staff r.9-94 Institution Strengthening of MESRS Enhance the Sub-Directorate's capacity to oversee resoorrh ir5t itA s to Strengthening of Sub-Directorate for research activities 36-95 MESRS Adaptive Research . _._._._.__ ___ ___ ___ ___ ___ __.___ __ Institutional Strengthening of MIl-EF Annual auditing of project corporents .., 96 Strengthening of Sub-Directorate for 4INEF Management Control Assure expLoitation of audit reports _ _- ?6 Monitor implementation of auditor's recormendations I le9c REPUBLIC OF COTE D'IVOJE NATIONAL AGfCULTRAL SERVICES SUPPORT PROJECT AG_RILT A SERVICES PROGRAM PERFORMANCE MONITORING AND EVALtJATION (M&E) INDICATORS IN RLAON TO OWECIES arratiye Summanry Obteclivcly )criibltc Indicators l op;i' (Actnal v. Tnrget) A5L E1Oit Qoalg t. Incroase living stindaris of farm bouschold I. 9t rise in averagk hauscho?d nct ins& t ri 2. Increase labout efricicncy disaster 2. 7% risc in returii pm Person d.y of "Arm t1o1 L.i e ieri:e or ftal 3. ieduce householJ rood scarcity. 3. % f4al in food scatrc ItiIs .klic:' r3fnesI0rlk favnrahld 4. inprovc nutrition 4. % decrrsac in rntla i4rld6 citdrwn <.5 yrs Purpose and objectives' A. Production 1. Increased yield of ffunin crps I. Avcrage krstha yicid incruascs on main cr'rps n yco rn o" 2. increased erea and output from maincrops 2. % incs=sc in area and ouitpul fsrm main crops Jc-w prm entod disinc 3. Incrcase food availability fmm own prodSuction 3. Proportion of fcod conwumerl by htf t ro-n (a ovfi4.ity of inpmts 4. Area under improved seeds 4. % incrcasc under in-proved secd for main. n S. Adoption of agro-forestry 5. % inercase in farmers ucing agro-fnrcstry* 6. Adoption of improved cultivation practicrs 6. % increasc in farnners using improved practicesO 7. Adoption of soillwater consctvalion tochnics 7. iners in fanners ndopting conserve. pracficesl 8. Increase labout productiviRy of fcmnlc Inrmers f. % of F fanners using labour saving tcch 9. 1ncrease cash income from livestock 9. % of l1il income derived from livestock I. lnstitutional I. More cost-cfCective extension I. % rise in no. of mini-plots/mcctingsiFA unit cost 2. Improved dissemination capacity 2. 9% rise in farmner understanding/awarcncss eCt Mcssages re+.vAnt 3. lmproved relevance of extcnsion messages 3. % rise in farmers adopting recommendations 4. Upgrading management/supervipory skills 4. Staff assessment/job evalualions/rcporting 5. Increased efficiency and cffecct of research 5. % red. in costs/messagc; No. of low cost nr sgs Dqeti ngre.c 6. Cost Accounting Systems operaming 6. Funds disbursed and accounis produccd 7. Efricicncy of Agency management 7. Farmers patrticipation in decisions 0 (national and regional. S. Efriciency of OPA S. Turnover increase, cconomic mnrng^mcot of tlc bcncfits * These indicators.witl be desaggregated by gender and by farm size For aU itms annual repoting wl be done ANNEX 13 Page I of 4 REPUBLIC OF COTE D'IVOIRE NATIONAL AGRICULTURAL SERVICES SUPPORT PROJECT Terns of Reference for the Project Completion Review The Mid-Termn Review would take stock of progress and formulate recommendations with regard to appropriate actions to be taken in the areas of project activity as described in the table below: Project Activitv Recommendations 1. The Restructurine Process to what extent the restructuring process of the MINAGRA and the creation of the Agency has been completed successfully; the possibility and appropriateness of further adjustment; to what extent both the regional directorates of MINAGRA improve staffing and the Agency are properly staffed; the budgetary impact of the restructuring process; further increase financial sustainability. 2. The ANADER the participation of the different partners in the the possibilities to increase the private sector's and in capital structure particular farmers' organizations-participation in the capital; the private sector's capacities and interest to further ways and means to increase the private sector's assume responsibility for agricultural services; participation; the efficiency of the Agency's management structure, the increase efficiency of management and farmers' participation extent of decentralization, and the importance of farmers' in the management of the Agency; participation in the decision making process; the number of women working in the Agency; increase the number of female seaff; the cost effectiveness of the Agency with regard to use of increase the cost effectiveness; equipment and vehicles; and the mission few availability of counterpart funds; counterpart funds allocation and release. 3. Extension the impact of the principal technical themes with regard to improve relevance of technical themes; agriculture, livestock and agro-forestry, on production and farmers' revenue; the cost effectiveness of the ratios applied by the Agency and by other extension organizations. improve ratios; the number of demonstration plots per contact group and per increase the visibility of the extension activities; the technical theme, and the number of farmers participating in number of farmers adopting one or more technical themes; the encounters with the FEWs; improve understanding of reasons for non-adoption. ANN1h X H Page 2 of 4 4. Adaptive Research farmers', researchers' and extension agents' participation in improve researcb - farmers - extension linkages; Systemic Research Adaptation Sites; the efficiency and regularity of monthly extension workshops; improve the process of monthly revie% and finetuning of technieal technical themes; the efficiency, relevance and environmental impact of technical improve technical messages mlessages;A the relevance of technical messages for special interest groups improve technical messages: such as women and youth 5. Parmers' Organizations the number and quality of newly created first -, second -, and improve conditions for the creation and promotion of third - level farmers' organizations; farmers' organizations; the financial management of farmers' organizations in terns of improve management practices; turnover, benefits and economic investments; the number of Farmers' Organizations Specialists transferred strengthen cooperative unions so as to enhance their managerial from the Agency to farmers' cooperatives unions; and financial responsibility for Farmers' Organizations Specialists; the possibility for farmers' organizations to take direct and full appropriateness to start a pilot operation and the geographical responsibility for priee setting, marketing and exportation of definition of pilot areas; cotton, coffee, cocoa etc.; the efficiency and relevance of the Agency's activities with regard to strengthening of farmers' organizations, making the Agency's fanners' organizations activities more demand-drive. 6. Training the quality, relevance and cost of initial training of all staff; improve the cost effectiveness of the training the appropriateness and possibilities to improve initial agricultural training programs; the regularity and relevance of continuous training of all staff; increase training's efficiency and relevance; the efficiency of colLaboration between the Agency and other ways and means to improve and expand collaboration with other training organizations; training organizations. 7. Administration and Finance the maintaining of records and accounts reflecting adequately improvements to the accounting procedures; the Agency's operations and financial conditions; the maintaining of records and accounts reflecting adequately improvement to the accounting procedures; the use of funds under the Institution strengthening component (MINAGRA, MESRS, MINQF) ANNEX 13 Page 3 of 4 the timnely availability of certified copies of accounts as well respect of delays for transmission of such accounts and audit as of the annual audit report; reports; the respect of Bank's procedures with regards to procurement appropnate training to increase staff's capacities with regard and disbursement to procurement and disbursement; the eligibility of payments made under the special account proper use of special accounts; the efficiency of financial and administrative procedures; improve such procedures; the efficiency of the budgeting process and the responsibility increasing financial responsibility at the regional level for of both the regional directorates and delegations; the Agency and MINAGRA; the availability of counterpart funds, timely release of these funds. 8. MonitorinE/Evaluation the relevance of the indicators used by the M/E system; improve the M/E system and training of M/E staff; the reliability of information; procedures of data coUecting and processing; the availability on the appropriate levels of MIE reports; the production and distribution of M/E reports. 9. MINAGRAlNational Planning the directorate's capacities to prepare and program strengthen the directorates' staff through appropriate training agricultural policy, annual investment budgets, and studies; and other means. 10. MINAGRA/National Mutuality and Cooperatives the directorate's capacities to prepare policy and legislation strengthen the directorates' staff through appropriate training and to enforce regulations with regard to cooperatives; and other means. 11. MINAGRAIStatistics the regularity and reliability of statistical reports; strengthen the directorates' staff through appropriate training and other means. 12. MINAGRA/Regional Directorates the regional directorates' capacity to develop regional strengthen the directorates' staff through appropriate training agricultural policics, monitor and evaluate policy and other means; implementation, enforce regulations and produce reliable statistics; the autonomy of regional directorates with regard to budgetary appropriateness to increase regional directorates' budgetary planning; autonomy. 13. MESRS/National level the directorate for valorization of research results' capacity strengthen the directorates' staff through appropriate training to monitor the different research institutes and research- and other means; extension linkages; the efficiency of observation plots and on farm trials; increase efficiency of observation plots and on farm tials; the efficiency of the Systemic Experimental Sites; improve IDESSA, IDEFOR and IRDT systenic research capacities; ANNEX 13 Page 4 of 4 the participation of the Agency and other extension improve research-extension linkcages. organizaions in the definition of research priorities. 14. Ministr of Finance the timely production of audit reports of each of the implementation units; the implementation of auditors' recommendations; further improve financial and administrative procedures. ANNEK 14 Page 1 of 2 NATIONAL AGRICULTUAL SERVICES SUPPORT PROJECT SA PROAM BUDGETARY IPACT (OVER 5 YEARS/D1224-:8 (CFAF billion) MINAGRA's MTEI ANAE DRAs MESRS RESTRUC1 TOTAL 1. Project-Related Budgetaxv Outlays - Investment 7.8 3.6 1.0 0.5 12.9 - Operat. costs 12.8 2.6 0.6 0.5 16.5 - Salaries 30.0 21.0 - 51.0 - Severance Payments _ 3.0 3.0 Total (1) 50.61 27.2 1.6 4.0 83.4 2. Government's cur-ent budget (199U2 3 Former Agencies + CIDT - Investments 6.7 6.7 - Operat. costs 28.5 1.7 _ 30.2 - Salazies 32.0 33.7 _ 65.7 Total Budget (2) 67.2 35.4 0.0 0.0 102.6 3.Savings 2(2) - (1) 16.6 8.2 -1.6 -4.0 19.2 Note: CFAF 192 billion savings wUl be made under the PNASA compared with the budget equivalent to be allocated if the current situation remains. CQ D' NATONA AM =RLU SERVCES SUPPORT PRQ= . m i.* SiTUAllON APPJ3 REAT I .M N N STATUT SociftE Services d'Encadrement Total Services ANADER Transfgrt a Mise i Mise A la Ddflat&s Exteriems (sans CIDI) Exterieurs SODEFOR Disposition retraite Fonctlonnaires 3.355 911 4.266 2.060 1.376 576 7 247 - Agents Tanporaires 435 2.599 3.034 240 1.399 - 74 1.321 Agents Jourallers - 1.893 2.224 425 24 1.795 Agents Contatels - 235 235 10 - - 225 4.136 5.643 9.779 2.300 3.210 576 7 345 3.341 o , > ECm 15 PApg I of I REPUBLIC OF COTE D'IVOIRE NAIONAL AGRICULTURAL SERVICES SUPPORT PROJECT ANADBR's Estimated Summear Fimancial Statenents (USS million) 'P t PY 2 :;994) (1995 . XPE?WZTUR$ .REVEUES EXPENDITURES REVENUES Gvt : 4.1 Gvt Z.0 IDA : 9.4 IDA 5.4 tnvestmEnts 15.4 AfDg(a): 1.0 7.9 AfDS (a) 0.4 IFAD : 0.8 IFAD 0.1 AGCD : 0.1 Sataries 19.0 Gvt : 19.0 19.0 Gvt 19.0 Gvt : 2.9 Gvt 2.4 IDA : 3.6 IDA 3.4 operating Costs 12.9 IFAD : 0.8 8.3 IFAD 0.2 AGCD : 0.2 AGM 0.2 AfDB (a): 0.4 AfD8 s): 0.4 CFO : 5.1 OPA (b) 1.0 (a) ADB fAding would be provided by contrac betweCe AIDB Western Region project and ANADER. (b) Fmning by Fastmwr' Association (OPAs) would be the mesult of the strategy to gradually empower OPAs (parm 4.16). no thecent maurestake by MINAGRA aiming to give the entire responsibility to the OPAs for primary collection of cash crops would reinforce thcir fiancial capcwities, thereby increaing their possibilities to buy ANADER's servicoes. M-6e: The private etor, i.e suppliers of chemical produets and agro-industrial frms, etc, have expressed their inMrest to uw ANADER's services On a payment basis. Fmaacing support from the private sector would ease the Govetnment budgetary burden. MALI BURKINA TENORELA FASO 0 0 FERKESSMOUGOU)."r 0 oRrHo BOUNDIALi GUINEA .OUNA 3.16" 0 D-0 e 0 D,,o {-')ABAkAIA0 0 W-M6 Brit'? JKOIJ UE G) W O-LA S BOUAKE M4N MW-'- GHANA DA 0 0 -4 BOUAFLF -4 DALOA "A Si, H" AFFINGOUROL 0 DlMBoKRc 0 N 0 X)II 'r T-4o. ISSIA GUIG[o CD OUME T- -h A 0 .NQA Ti.-I, Ap DN'O LIBERIA SOU5RE LAKOTA crd4.ho. '4 d. a -7h: W.z 8.4, G,- OSASSANDItA -d-Z, 3 2 NIGER MALI BURKINA PASO COTE D'IVOIRE NATIONAL AGRiCULTURAL SERVICES PROJECT GUINEA z PROJET NATIONAL DES SERVICES AGRICOLES SiERRA) 0I LEONF- p GHANA Aq,, LIBERIAN ABIDJAN* d, D,p-l Sb P-f, I,- B"",d C, s", 0, i--, d- S,- P-f,,,-, Goll