Report No. 1281a-HA FILE COPY Appraisal of Rural Development Project in the Northern Department Haiti RETURN TO December 13, 1976 REPORTS DESK Regional Projects Department WITHIN Latin America and the Caribbean Regional Office ONE WEEK FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their officiai duties. its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS US$1 = Gourdes (G) 5.00 Gourde XG). = US$0.20 WEIGHTS AND MEASURES Metric System 1 meter (m) = 39.37 inches 1 kilometer (km) - 0.62 miles 1 hectare (ha) = 2.47 acres = 0.78 carreaux 1 square kilometer (km2) = 0.386 square miles 1 kilogram (kg) = 2.205 pounds 1 ton (t) = 2,205 pounds 1 liter (1) = 0.264 gallons ABBREVIATIONS BNRH - Banque Nationale de la Republique de Haiti BCA - Bureau de Credit Agricole COALEP - Cooperative pour l'Alimentation en Eau de la Population Rurale CONADEP - Conseil National de Developpement et de Planification CRUDEM - Centre Rural de Developpement de Milot DARNDR - Department de l'Agriculture, des Ressources Naturelles et du Developpement Rural FAC - Fonds d'Aide et de Cooperation de la Republique Francaise FAO - Food ând Agriculture Organization IDA - International Development Association IDAI/SEN - Institut de Developpement Agricole et Industriel/Societe d'Equipement National IDB - Inter-American Development Bank ODN - Organisme de Developpement du Nord ODVA - Organisme de Devèloppement de la Vallee de l'Artibonite ONAAC - Office National d'Alphabetisation et d'Action Communantaire OPDG - Organisme de Developpement de la Plaine des Gonaives PAHO - Pan American Health Organization SAC - Societe Agricole de Credit SAR - Service d'Animation Rurale SEPRRN - Service d'Entretien Permanent du Reseau Routier National SMV/SE - Service de Medecine Veterinaire/Service d'Elevage SHRH - Service Hydraulique de la Republique de Haiti (TPTC) SICR - Service des Irrigations et Controle des Rivieres (DARNDR) SVA - Service de Vulgarisation Agricole TPTC - Ministere des Travaux Publics, Transports et Communications UNDP - United Nations Development Programme UNICEF - United Nations Children's Fund USAID - United States Agency for International Development WFP - World Food Program WHO - World Health Organization GOVERNMENT OF HAITI FISCAL YEAR October 1 - September 30 FOR OFFICIAL USE ONLY HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS ............................ i-iit I. INTRODUCTION ....................................... 1 II. BACKGROUND ......................................... 1 A. General ....................................... 1 B. The Rural Sector ............................... 2 C. Government's Rural Development Strategy ....... 6 III. THE PROJECT AREA .................................. . 6 IV. THE PROJECT ........................................ 8 A. Brief Description ............................. 8 B. Detailed Features ............................. 8 C. Cost Estimates ................................ 10 D. Financing ..................................... il E. Procurement ................................... 13 F. Disbursement .................................. 13 V. ORGANIZATION AND MANAGEMENT .14 VI. PRODUCTION, MARKETS AND PRICES, PROJECT BENEFITS ... 20 VII. BENEFITS AND JUSTIFICATION ......................... 22 VIII. AGREEMENTS REACHED AND RECOMMENDATION .... .......... 23 The report is based on the findings of an appraisal mission to Haiti in April/May 1976, consisting of Messrs. K.H. Ochs, U. Kuffner, F. Lucca, and G.H. Soto (IDA) and S. Anania, S. Hallgrimmson and Ms. S. Leone (Consultants). This document hm a restnttd distribution and My be us»d by rocipbnt only in the perfornnnce of thoir oMcial duti". il$ contents may not otherwio be disclood without Wofid Bank autboriution. ANNEXES 1. The Project Area Table 1 - Population in the Northern Department and the Arrondissement of Cap-Haitien Table 2 - Rainfall at Caldos Sugar Mill (1960-1976) Table 3 - Land Tenure in the Arrondissement of Cap-Haitien Table 4 - Land Tenure Table 5 - Land Tenure Modality Table 6 - Land Use Table 7 - Income Distribution Pattern of Employed Population in Urban and Rural Areas Table 8 - Annual per Capita Consumption of Essential Goods and Services 2. Irrigation Rehabilitation and Expansion Table 1 - Irrigation Water Requirements Table 2 - Cost of Equipment Table 3 - Staff Costs Table 4 - Phasing of Expenditures Table 5 - Summary Cost Estimates Table 6 - Operation and Maintenance Costs after Full Development Table 7 - Rent and Cost Recovery 3. Credit to Agriculture Table 1 - BCA - Strengthening of Regional Office in Cap-Haitien - Investment and Operating Costs Table 2 - BCA - Use of Funds Table 3 - BCA - Consolidated Balance Sheet Table 4 - BCA - Income Statement Table 5 - IDAI - Use of Funds Table 6 - IDAI - Balance Sheet (June 30, 1975) Table 7 - IDAI - Income Statement (June 30, 1971-1975) Schedule A - Lending and Operating Policies and Procedures of BCA Schedule B - Points to be Covered in the Program of Reorganization of BCA 4. Agricultural Trials and Seed Production Table 1 - Investment and Operating Costs 5. Regional Agricultural Extension Service - Investment and Operating Costs 6. Regional Rural Animation Service - Investment and Operating Costs 7. Regional Veterinary and Livestock Services - Investment and Operating Costs ANNEXES (Cont'd) 8. Municipal Markets Table 1 - Costs of Materials and Equipment for Rehabilitating and Improving the two Municipal Markets of Cap-Haitien Table 2 - Improvement of the Municipal Market of St. Raphael 9. Municipal Abattoir - Costs of Materials and Equipment 10. Road Construction and Maintenance Table 1 - Name and Length of Roads to be Constructed Table 2 - Proposed Feeder Roads Standards Table 3 - Cost of Equipment Fleet for Feeder Road Construction Table 4 - Cost per km Feeder Roads Table 5 - Summary Costs and Phasing of Expenditures 11. Potable Water Supply Table 1 - Investment and Maintenance Costs 12. Organisme du Developpement du Nord (ODN) - Headguarters Table 1 - Investment Costs Table 2 - Operating Costs Table 3 - Initial Project Implementation Schedule 13. Appointment of Project Staff and Qualifications for Senior Staff Schedule A - Timeframe for the Appointment of Project Staff and Numbers Required 14. Project Monitoring and Evaluation Table 1 - Costs of Project Monitoring and Evaluation Table 2 - Project Design, Summary and Evaluation Framework 15. Summary of Project Cost 16. Project Cost Phasing 17. Financing Plan 18. Estimated Schedule of Disbursement ANNEXES (Cont'd) 19. Farm Models Model 1: 10-ha Farm Unit in the Irrigated Area of St. Raphael Table 1 - Production and Production Value Table 2 - Investment and Operating Costs Table 3 - Financial Projections Model 2: 10-ha Farm Unit in the Irrigated Area of Quartier Morin Table 4 - Production and Production Value Table 5 - Investment and Operating Costs Table 6 - Financial Projections Model 3: 10-ha Farm Unit with Well Irrigation (Quartier Morin) Table 7 - Investment and Operating Costs Table 8 - Financial Projections Model 4: 15-ha Farm Unit in the Rainfed Area of Plaine du Nord Table 9 - Production and Production Value Table 10 - Investment and Operating Costs Table 11 - Financial Projections 20. Government's Incremental Cash Flow from the Project 21. Economic Analysis Table 1 - Economic Rate of Return CHART - Proposed Project Organization and Management MAP - IBRD No. 12217 - Location of.Project Activities HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT SUMMARY AND CONCLUSIONS i. This report appraises a Rural Development Project for which an IDA credit of US$10 million equivalent is proposed. The credit would help finance basic infrastructure and services for rural development in the Northern Department of Haiti where over 90% of the rural population are under the level of absolute poverty. The project would consist of (a) rehabilitation and expansion of the Quartier Morin (2,000 ha) and St. Raphael (1,900 ha) irriga- tion systems and irrigation of up to 1,000 ha based on deep wells; (b) rehab- ilitation and construction of 66.5 km of feeder roads and 27 km of farm access roads; (c) construction of up to 400 wells operated with hand pumps and of up to five small water supply systems served by springs, for rural potable water supply; and (d) rehabilitation and improvement of the two municipal markets and abattoir in Cap-Haitien and construction of a market in St. Raphael. The credit would also strengthen and support regional agricultural services pro- viding (a) short-term and medium-term credit to groups of small farmers and to individual medium-size farmers; (b) agricultural trials and improved seed multiplication; and (c) agricultural extension, rural animation, and animal health services. About 4,000 rural families would benefit from directly productive components of the project as well as from the productive support activities and the road component, increasing their on-farm consumption by about 30% and their average annual cash income from agricultural and livestock activities from US$60 to US$150. In addition, some 26,000 rural families would benefit from better roads, improved agricultural services and availability of improved seeds and would increase their on-farm consumption by 10% to 20%, and about 3,000 rural households would receive potable water. Also, about 60,000 urban inhabitants would benefit from decreased health hazards and more competi- tive trading due to the rehabilitation and improvement of three municipal markets and an abattoir. ii. The project would be IDA's first agricultural rural development operation in Haiti but the Bank Group has already assisted the Government with a US$2.6 million loan for highway rehabilitation in 1956 (141-HA), followed by a highway maintenance project, partially financed by a US$350,000 credit in 1962 (32-HA) and reconstruction of the Northern Road through a credit of US$10 million in 1974 (478-HA) and a credit of US$20 million in 1975 (556-HA). Assistance to education was also provided through a US$5.5 million credit in February 1976 (618-HA) and for electric power in the Port-au-Prince area through a US$16 million credit in June 1976 (645-HA). Project execution under the two recent highway projects and the education project has been satisfac- tory. The implementation of the electric power project has just begun. iii. Agriculture is the most important sector in Haiti's economy, provid- ing about 45% of GDP and over 50% of merchandise exports and meeting most of the needs of domestic consumption of agricultural products, but agricultural - ii - imports absorb about 90% of agricultural export earnings. The importance of the sector is further emphasized by the fact that about 80% of Haiti's popu- lation obtains its livelihood from agriculture. Development of the rural sector constitutes a major priority of the Government and increased production of food crops is one of its major goals. iv. With an area of 27,750 km and a population of 4.7 million in 1976, growing annually at a rate of about 1.6%, Haiti has an average population density of about 170 persons per square kilometer, one of the highest in Latin America. With agriculture concentrated mainly in a limited number of river valleys and coastal plains, development of these areas becomes essential to the country's economy and welfare. The arrondissement of Cap-Haitien and the irrigated district of St.. Raphael are two such productive areas, with poor agricultural services and existing infrastructure in severe need of rehabili- tation and expansion. The proposed project would help correct these deficien- cies and provide the basis for the development of the whole Northern Department. v. An "Organisme de Developpement du Nord" (ODN), established under the President of the Republic would implement the project under the supervision of a Board chaired by the State Secretary of the Department of Agriculture, Natural Resources and Rural Development (DARNDR), and including representa- tives of the Department of Public Works, Transport and Communications (TPTC), the Department of Finance and Economic Affairs, the National Bank (BNRH) and the Planning Council (CONADEP). vi. Government would provide the counterpart funds for project manage- ment and strengthening of agricultural services. Funds from the World Food Program (WFP) would finance two million man-days of unskilled labor in the form of "food for work". Project costs are estimated to total US$13.4 million equivalent. IDA would finance US$10 million, or about 75%; Government would contribute US$2 million, or almost 15%; and the WFP, US$1.4 million, or about 10%. IDA's contribution would cover US$8.2 million, or 100% of the estimated foreign exchange component, and US$1.8 million, or 35%, of local currency expenditures, which is justified on country grounds. Government would pass on the proceeds of the IDA credit as a grant to ODN for the execution of the project. vii. The Government has requested bilateral assistance from the Federal Republic of Germany and France to finance the cost of resident consultants. Should this assistance materialize, IDA would cancel an amount of the proposed IDA credit equivalent to the assistance so received, which is expected to amount to about US$2 million. viii. Procurement of items financed by the WFP would be in line with its procurement procedures. All other procurement would be in accordance with the Bank Group's Procurement Guidelines. Contracts in excess of US$50,000, aggregating about US$2 million, would be awarded on the basis of international competitive bidding. Contracts of less than US$50,000 but over US$10,000 would be awarded on the basis of competitive bidding advertised locally. The - iii - bulk of civil works for irrigation rehabilitation/expansion and road construc- tion would be done on force account, but small local contractors would be hired to carry out specific construction tasks. ix. Financial rates of return based on four representative farm model projections have been estimated at 18% for rainfed and 29%, 31% and 48%, respectively, for three irrigated farm models. The economic rate of return for the project is 14%, with sensitivity tests showing that the project could absorb some setbacks and still be economically viable. x. During negotiations appropriate assurances were obtained that provide a suitable basis for an IDA credit of US$10 million equivalent under normal IDA terms. HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT I. INTRODUCTION 1.01 The Government of Haiti has requested IDA assistance in financing a rural development project in the arrondissement of Cap-Haitien and the irri- gation district of St. Raphael in the arrondissement of Grande Riviere du Nord, both located in the Northern Department. The project would benefit about 30,000 rural families mostly within the category of absolute poverty and would be financed jointly with the World Food Program (WFP). 1.02 The project would be IDA's first agricultural/rural development ope- ration in Haiti but the Bank Group has assisted the Government in other projects for highway rehabilitation, financed by Loan 141-HA (US$2.6 million) in 1956; highway maintenance, financed by Credit 32-HA (US$350,000) in 1962; reconstruc- tion of the Northern Road, financed by Credit 478-HA (US$10 million) in 1974 and Credit 556-HA (US$20 million) in 1975; education, financed by Credit 618-HA (US$5.5 million) in February 1976; and supply of electric power in the Port-au-Prince area, financed by Credit 645-HA (US$16 million) in June 1976. 1.03 The project was identified by an agricultural sector study jointly undertaken by IDB, FAO and IBRD in 1973. It was prepared from February to May 1975 by an FAO/CP team. II. BACKGROUND A. General 2.01 Haiti is the poorest country of the Americas. With an area of 27,750 km and a population of 4.7 million in 1976, the average population density is about 170 persons per square kilometer. GNP per capita in 1975 was US$180, but the depressed living standards of the population can be better illustrated by a high infant mortality rate of about 150 per thousand live births, an average life expectancy of only 50 years, very low nutrition and sanitation standards, and an adult illiteracy of about 80%. 2.02 Haiti's economy has shown contrasting trends over the last four years. In real terms, GDP grew by about 2.5% p.a. and gross domestic income by about 3.8% p.a. between 1971 and 1975, thanks to relatively favorable terms of trade. Agriculture, Haiti's most important sector, however, has shown little progress, growing at only 1.2% annually, which is less than the average rate of population growth of 1.6%. Further, the volume of agricultural exports has been declining but, because of increased industrial exports, the overall annual decrease in exports was only about 2% in the same period. The trade balance, however, was converted from a US$1.5 million surplus in 1971 to a deficit of US$22.5 million in 1975. - 2 - B. The Rural Sector 2.03 In 1975, the rural sector accounted for about 45% of GDP (about US$400 million) and over 50% of merchandise exports (US$39.5 million) (coffee, 20%; essential oils, 5%; sugar, 10%; sisal, 3%; and other agricultural products, 12%). Not only does agriculture provide the livelihood of about 80% of Haiti's population now, or about 680,000 families, it will continue to be the largest source of employment for the foreseeable future. Nevertheless, in 1975, the sector received less than 7% of total Government expenditures, and the Government assistance in terms of production support services (research, extension, credit and marketing) is inadequate. Thus, except for sugarcane and some rice and tobacco cultivation, agricultural production methods remain primitive. Domestic agricultural output falls short of the country's require- ments of grain, edible oils and fats, and dairy products by 20 to 30%. Imports of these products absorb an estimated 92% of agricultural exports. Land Use and Land Tenure 2.04 Of the country's total area, only 15% is well suited to agriculture although twice as much is actually under cultivation. The remaining 70% is too arid or steep for cultivation. Mountain agriculture is limited to coffee and cocoa, while most of the country's food crops and some of the export crops (sugar, citrus, sisal) are grown in the river valleys. The Artibonite valley, which has an extensive irrigation system, is the rice producing center of the country. The large northwest peninsula, with its semi-arid climate, and the western portion of the Cul-de-Sac plain, restricted by lack of water and underlying salinity, constitute the country's low production regions. Forest cover has been drastically reduced as trees have been cut to provide firewood, and erosion is a serious problem, especially where subsistence crops are grown on steep slopes. 2.05 The lack of an adequate cadaster makes it difficult to determine the land tenure situation. The revolution in the early 1800s, with the extensive distribution of land among peasants, resulted in a structure of small farms which in time have been further subdivided. Most land is pri- vately owned and the present Rural Code legislation divides the land among surviving heirs, resulting in increasing minifundia. Other forms of land tenure include absentee owners, tenants and sharecroppers. An average of about 1.2 ha is available per family of five to six persons. The majority of the farms are too small to provide more than a family subsistence. The typical Haitian farmer has only a hoe and machete as basic farming tools. 2.06 Farmers' organizations are not common in Haiti and the few existing cooperatives are either in the form of pilot projects or associated with private groups, generally religious in motivation. Other forms of agricultural cooperation exist, including mutual assistance labor groups which rotate among a number of farms to carry out essential agricultural work as well as groups of small farmers who constitute Agricultural Credit Societies (SACs) of mutual guarantee. -3- Rural Income Structure 2.07 The income distribution pattern in 1970 obtained from a survey of the Haitian Institute of Statistics shows that about 90% of the rural population earned an average income of less than US$45 per person. Analysis of rural incomes and annual per capita consumption rates of essential goods and services indicates that more than 90% of the rural population and 85% of the total population of Haiti were, in 1975, below the absolute poverty level of about US$60. Agricultural Services 2.08 Training, research and technical assistance in agriculture are the responsibility of the Department of Agriculture, Natural Resources and Rural Development (DARNDR). The Faculty of Agronomy in Port-au-Prince turns out about 40 agronomists and 15 veterinary assistants per year, and agricultural schools in the interior train about 100 agricultural technicians per year. Rural education and functional literacy courses are under the responsibility of DARNDR and the National Office of Alphabetization and Community Development (ONAAC), respectively, while several private groups give training in agricul- ture at the vocational level and education at the elementary level for rural children. Although the training programs and output of agricultural staff and veterinary assistants are, by and large, adequate, there is a lack of veteri- narians. Research is conducted at a central experimental station in Damien and at plots throughout the country, but facilities and personnel are inade- quate. The Agricultural Extension Service (SVA) assists farmers in adopting improved methods of production, while the Rural Animation Service (SAR) further supports such efforts and also assists in community development. Both services are staffed by some 200 mostly medium-level technicians, reaching at present only about 5% of farmers (30,000 farmers). A proposed program to strengthen agricultural extension is included in the 1976-81 Agricultural Development Plan and would increase to 300,000 the number of farmers reached by 1981. 2.09 Agricultural credit is provided through two specialized Government agencies -- the Institute for Agricultural and Industrial Development (IDAI), which is a multi-sector financing institution, and the Bureau of Agricultural Credit (BCA), which has been especially designed to serve the needs of small farmers by organizing them into groups. In 1975, the portfolio of both these agencies amounted to US$593,000, which represents only about 0.17% of the value of agricultural production and reached only about 0.5% of all farmers. Both institutions require Government financial support to break even. Rural indebtedness to non-institutional credit sources, such as relatives, merchants and moneylenders, is widespread, with interest rates running up to 120% a year or higher. The bulk of IDAI's funds is invested in industry, and most of its agricultural loans go to farmers owning more than 5 ha. The rate of interest charged by IDAI was raised from 8% to 9% in September 1976. The BCA is a bureau within the framework of DARNDR, which is chaired by the State Secretary of DARNDR and managed by a Director appointed by the President of the Republic. Its staff of 50 persons is distributed among nine regional offices, including one at Cap-Haitien with a staff of eight. In 1975, BCA advanced US$165,000, mainly by way of short-term loans for crop production, to groups of seven to 15 small farmers known as SACs who would borrow under a mutual group guarantee, and to particularly efficient individual farmers. The average loan per SAC was about US$200 and that to individuals, about US$90. A limited amount of term credit was also extended for small irrigation works, land improvement, and agricultural machinery. In December 1976, the rate of interest charged by BCA for all its loans was increased from 8% to 9%. Com- pared to around 15% at commercial banks, this rate is negative in real terms, in view of the about 18% rate of inflation in 1975, which, however, is ex- pected to decline sharply over the medium term. BCA's income from interest in 1975 amounted to only 11% of total operating costs while the Government subsidy amounted to 70% and other income to 3%, leaving a loss equal to 16%. Arrears, uncollectible in large part, stood at about 40% of its portfolio. 2.10 Although the BCA's financial standing is poor, it will have to play an important role in rural development programs, as it is, by statute, dedi- cated to providing technical assistance and credit to small farmers. Its past performance mainly reflects the impact of the basic difficulties faced in the supply of agricultural credit to small farmers in Haiti such as: (a) fragmentation of holdings (1.2 ha average); (b) lack of farmer organizations at the grass-root level; (c) inadequacy of the infrastructure such as feeder and farm access roads and irrigation facilities; and (d) lack of adequate extension and marketing services. In view of the severe constraint of financial, tech- nical and administrative resources, the strategy of the Government is to promote the development of institutional credit gradually in step with that of other agricultural services and infrastructure, which is being undertaken on a region-by-region basis as, for example, under programs such as the on-going projects in Artibonite, the Plain of Gonaives, and the proposed IDA project. The problem of the reorganization of BCA is, at the same time, being reviewed by Government with the assistance of consultants employed by the USAID in connection with its agricultural credit activities in Haiti, which include (a) a grant of US$3 million for disbursement as fertilizer credit to small coffee growers; (b) strengthening of BCA with the support of three expatriate consul- tants (agriculturalist, credit adviser and management specialist) and 28 agricultural credit extensionists; and (c) a proposed US$1 million project for similarly assisting the production of subsistence crops. Agricultural Prices and Marketing 2.11 Except for sugarcane, for which the Government sets the price, there is no price regulation. The weak bargaining position of the producers, particularly small farmers, works to the advantage of exporters, processing industries and the merchant sector, which enjoy the availability of capital and, to some extent, of credit. Thus, the agricultural price system in Haiti has not so far provided sufficient incentives for increased production. 2.12 Coffee exports are controlled by a few large operators, with about 2,000 middlemen providing the link with producers, mostly small farmers. Food crops, on the other hand, are marketed along traditional lines by num- erous small operators who purchase, assemble, process and transport the produce in small lots to regional and consumer markets. The system is labor-intensive and reasonably efficient, but, because of an almost total lack of storage, marketing and credit facilities, crop forecasts and market information, as well as of all-weather roads, the farmer is unable to cushion steep seasonal and geographic price variations. Physical Infrastructure 2.13 Irrigation is a major priority in Governnent's development policy. Of the estimated 150,000 ha of irrigable land in the country, about 70,000 ha are being irrigated by over 100 systems. The larger irrigation districts include the Artibonite, the Trois Rivieres, the Gonaives, the Limbe, the Quartier Morin and St. Raphael systems. The smaller systems are largely con- centrated in the Southern Peninsula and the Arcahaie Plain, and a well irri- gation system is operative in the Cul-de-Sac plain. Systems serving about 80% of the irrigated lands are in need of extensive rehabilitation, particu- larly those in the Northern Department. 2.14 The main Port-au-Prince/Cap-Haitien highway is being reconstructed, with assistance from IDA (para 1.02), while the important southern route, Port-au-Prince/Les Cayes, is being built with IDB assistance. A branch to Jacmel is being financed by the French Fund for Assistance and Cooperation (FAC). Lack of adequate secondary, feeder and farm access roads, however, continues to handicap rural development, and the chronic lack of maintenance must be overcome if the transport infrastructure is to be effective. 2.15 Potable water supply facilities are insufficient in all rural/urban centers. Some of the existing systems require extensive rehabilitation, and a program to tap underground water and springs is needed. 2.16 A series of privately owned small thermoelectric plants are scat- tered throughout the country to provide electricity to the rural sector. An IDA-financed power project (para 1.02) will help construct a 21-MW diesel power station in Port-au-Prince, expand and rehabilitate the distribution network and provide technical assistance. Health Services 2.17 The health services provided in rural areas are much poorer than those in urban areas, although the 1975 Health Plan designates the rural population as its principal objective. The Governnent has been giving health a high priority, providing it with almost 14% of current budgetary expendi- tures. The health sector has been recently strengthened by an IDB-financed program for rural health services and by UNICEF grants to equip health facili- ties and promote a nutrition program. C. Government's Rural Development Strategy 2.18 With over 80% of its population in agriculture and limited pros- pects in other sectors, development of the rural sector is a major goal of the - 6 - Government. An average annual public expenditure in the rural sector, esti- mated at US$4.9 million for the 1974-77 period, is scheduled to be increased to about US$20 million in 1977-81, rîsing from 9 to 25% of total public expendi- tures. Since these amounts far exceed Government's own resources, most of the funds will have to be provided by external assistance. 2.19 The agricultural sector is characterized by (a) a low per capita income (slightly over US$60); (b) by small farm sizes (1.2 ha); (c) a poor infrastructure; and (d) lack of public support services. The Government's strategy for rural development, therefore, calls first for the rehabilitation and extension of the existing transport and irrigation infrastructure. Food crop production would be increased next, followed by an expansion of export crops, particularly coffee and sugar, through increased agricultural credit and improved extension services to farmers to be organized into groups. However, because of the constraints encountered in the sector, nationwide efforts have little chance to succeed and Government is formulating projects and plans in the framework of a policy of regionalization, based on on-going projects such as those in the Gonaives and Artibonite plains and the Petit Goave and Les Cayes projects. Special attention will also be given to increas- ing the incomes and living standards of small farmers by providing basic infrastructure, improved technology packages and adequate support and social services through rural development projects. 2.20 The proposed project is in line with the above strategy and the overall approach of regionalization, with emphasis on rehabilitation of existing infrastructure, increased food crop production and the establishment of a project organization whose operations would gradually extend, in a second phase, to the whole Northern Department. III. THE PROJECT AREA 3.01 The project would be located in Haiti's Northern Department and would cover the entire arrondissement of Cap-Haitien (500 km 2) (Map), in- cluding the irrigation district of Quartier Morin, and the irrigation district of St. Raphael in the arrondissement of Grande Riviere du Nord (Annex 1). Quartier Morin, with about 2,000 ha, and St. Raphael, with about 1,900 ha, are both presently irrigating only about 50% of the areas commanded, being in need of extensive rehabilitation. There is a total of about 45,000 ha of agricultural land of which about 35,000 ha is cultivated each year. The soils present well structured clay and clay loams highly suitable for crop production. Rainfall (annual average in the lower plain, 1,300 mm; in St. Raphael, 850 mm) is very irregular and droughts are frequent (Annex 1). Groundwater potential in the lower plain is extensive. Several privately owned wells north of Quartier Morin penetrate a slightly artesian aquifer and yield over 100 liters/second, pumped from a relatively shallow depth at reasonable costs. 3.02 There are about 220,000 people in the project area, including about 8,000 people living in the irrigation district of St. Raphael. About 50,000 - 7 - people live in the capital of the Northern Department, Cap-Haitien, whereas the rural population accounts for about 160,000 persons (or about 30,000 families). About 92% of the project area's rural population (roughly 147,000 persons) are under the level of absolute poverty (para 2.07). This economic deprivation is compounded by lack of health and school facilities, malnutri- tion and endemic diseases (diarrhea, tuberculosis, and the like), a poor physical infrastructure (roads, drinking water, electricity) and an extremely limited social and communications infrastructure. The municipal markets in Cap-Haitien and St. Raphael are insanitary and badly equipped, as is the abattoir at Cap-Haitien. 3.03 Over the last few years, the price of land in the project area has gone up tenfold and land purchases by larger farmers have increased signifi- cantly due to growing demand for agricultural products and rumors of infra- structure improvements expected under the proposed project. However, the Government has recently enacted a law to curtail land speculation in develop- ment areas. Further, assurances were obtained during negotiations that the Governnent would (a) take all appropriate measures to determine and widely publicize fair prices for land acquisition and for rental in the zones of the project area which will remain rainfed under the project; (b) prohibit land transactions in the Quartier Morin and St. Raphael irrigation districts until the irrigation rehabilitation/expansion works of the project are completed or the Government gives its prior approval; and (c) after the completion of the irrigation rehabilitation/expansion works, take all appropriate measures to determine and widely publicize fair prices for land acquisition and for rental in the above irrigation districts. 3.04 Agriculture in the project area is dominated by small farms. Farmers cultivating up to 6.5 ha -- who constitute the central core of the target group -- represent about 92% of all farmers and their holdings repre- sent about 53% of the cultivated land. About 98% of all farms have less than 13 ha, occupying almost 70% of the land, and there are only about 12 farms in the 65- to 130-ha category, 12 farms with somewhat over 130 ha, and one farm comprising about 400 ha. About 74% of all farms are run by owners, 10% by tenants, 10% by managers and 6% by sharecroppers (Annex 1). 3.05 Food crops -- mainly corn and beans, some sorghum and rice, bananas, yams and manioc -- occupy almost two-thirds of the cultivated area (23,000 ha). Cash crops comprise sugarcane, on almost 20% of the cultivated area (7,000 ha), and coffee, cocoa and citrus, on about 15% of the cultivated area (5,000 ha). Agricultural services such as extension and credit are almost non-existent and use of modern inputs is practically unknown. There are roughly 20,000 head of cattle, 50,000 pigs and 20,000 goats. Livestock diseases in the area are controllable, but animal health facilities are poor. The project area's production barely covers subsistence food needs for both the rural and Cap-Haitien population and generates an annual per capita monetary income of only about US$10. - 8 - IV. THE PROJECT A. Brief Description 4.01 The project would be carried out over a four-year period and would rehabilitate and expand irrigation systems, provide credit to mostly small farmers, carry out agricultural trials and seed multiplication, improve tech- nical assistance, set up an animal health service, rehabilitate two municipal markets and an abattoir, repair and construct feeder and access roads, and improve rural water supply. In addition, the project would sponsor training for project staff, carry out studies for project implementation and prepara- tion of a follow-up project, and undertake project monitoring and evaluation. An "Organisme de Developpement du Nord" (ODN), established under the President of the Republic would carry out the project and coordinate and supervise the project-related efforts of all the participating agencies. 4.02 The project would concentrate on removing key constraints to devel- opment not presently covered by other programs. Thus, no human.health compo- nent is included since extensive assistance in health is already being pro- vided by the Government, IDB, PAHO, UNICEF, USAID and religious organizations, e.g., Center for Rural Development of Milot (CRUDEM) in the project area. Likewise, education and erosion-prevention components are excluded as these requirements are being met by IDA's first education project (para 1.02) and by WFP/FAO project No. 2105, respectively. B. Detailed Features Irrigation 4.03 Rainfall in the project area is relatively high, but very irregular and droughts are frequent (Annex 1). Therefore, all canals and drains of the Quartier Morin district would be cleared and repaired, syphons and distribution structures rehabilitated, and dikes along the Grande Riviere du Nord repaired (Annex 2). Irrigation and drainage canal systems would also be extended to serve an additional 800 ha, bringing the total irrigated area to 2,000 ha. Land leveling and construction of gates, farm ditches and drains would be carried out on the total 2,000 ha. The 1,900-ha St. Raphael district would receive similar extensive rehabilitation works, including on-farm improvements. Pending the above improvements, sufficient water is available to allow double cropping on about 85% of the area in the Quartier Morin district and 70% of the St. Raphael district. In addition, up to 14 wells would be constructed in the area north of Quartier Morin, each about 40 m deep and equipped with a diesel pump, irrigating altogether about 1,000 ha. Agricultural Credit 4.04 Agricultural credit would be made available through BCA (Annex 3) to SACs and to individual farmers who cultivate up to 10 ha in the irrigated - 9 - areas and up to about 15 ha in the rainfed areas. Short-terim subloans to cover the costs of fertilizers, pesticides, seeds, livestock medication and such, and medium-term credit to purchase draft-oxen, yokes, plows, sprayers, pumps and the like would be provided. On an experimental basis, medium-term credit would also be extended for construction of simple grain storage facilities, such as a 3- to 4-ton container, or larger storage of up to 50 tons for use on a collective basis. Agricultural Trials and Seed Production 4.05 The project would provide for comprehensive agricultural trials and seed production programs in collaboration with the Caldos sugar mill and CRUDEM and with individual farmers, subcontracted by ODN (Annex 4), by finan- cing equipment for land preparation, planting and harvesting; transport; seed processing and laboratory tests; and related operating expenses for fuel, fertilizer, herbicides, pesticides, seed and the like. It would also provide technical assistance. Extension Services 4.06 Both the regional SVA and SAR (para 2.08) would be strengthened by the establishment of field offices in Quartier Morin, Plaine du Nord and St. Raphael, as well as by transportation and working facilities and additional staff (Annexes 5 and 6) to allow fôr one extension agent for about 200 farmers and one animation agent for each commune. Animal Health 4.07 The project would strengthen the regional Veterinary and Livestock Services (SMV/SE) in the project area by providing two additional veterinary assistants; constructing field offices in Plaine du Nord and St. Raphael; purchasing motorbikes and veterinary equipment; providing incremental oper- ating funds, principally for the operation of vehicles; and purchasing drugs, medicines and vaccines (Annex 7). Municipal Markets and Abattoir 2 4.08 The roofed 5,000 m central market in Cap-Haitien would be completely renovated and equipped with-adequate water and drainage facilities, sanitary installations, display tables, butcher shops, and a 3-ton capacity cold storage room. The open-air "abattoir market" would be provided with adequate water supply, drainage, sanitary installations, some display tables, and paved walkways. The municipal market of St. Raphael would also undergo improvement works, including provision of water supply, pavement of the market area, pro- vision of2adequate drainage, and construction of a slaughter-slab (Annex 8). The 300 m municipal abattoir of Cap-Haitien would be completely renovated (Annex 9). - 10 - Roads 4.09 The project would provide for the construction of 53.5 km of feeder roads in the arrondissement of Cap-Haitien and 13 km of feeder roads and 27 km of farm access roads in the St. Raphael area and for their maintenance during the disbursement period (Annex 10). The project would also provide a simple equipment fleet, related operating funds, as well as tools for maintaining and repairing the equipment fleet at the workshop of the National Road Maintenance Service (SPRRN) in Cap-Haitien. Potable Water 4.10 The project would finance the construction of up to 400 hand-dug wells operated with hand pumps and up to five small water supply systems served by springs (Annex 11). Wells would be 2 to 10 m deep with 1 m diameter lined with prefabricated reinforced concrete rings or brick, disinfected and protected with reinforced concrete covers. The small water supply systems would have spring catchments, a small concrete water reservoir, and plastic pipes leading to three or four public standpipes. Project Administration 4.11 The project would finance the establishment of the ODN in Cap-Haitien (Annex 12) to plan, coordinate, supervise and administer project implementa- tion (paras 5.01 to 5.04). Offices for this agency would be built and fur- nished and the salaries of staff, including nine resident senior specialists (Annex 13) and support staff, would be financed. Short-term consultant services (35 man-months) would be divided between project implementation (about 22 man-months) and the preparation of a follow-up rural development project (about 13 man-months). Vehicles and equipment would be purchased and operating expenses covered. ODN would be supplied with funds to finance training in agricultural credit, agricultural extension, and rural animation (Annexes 3, 5 and 6), and for overseas training for Haitian ODN staff in practical aspects of project-related work. Project Monitoring and Evaluation 4.12 Project monitoring and evaluation would be carried out by the Evaluation and Control Unit within the Agricultural Planning Unit of DARNDR to assess project results, permit timely modifications of its design and determine the extent to which the project could be replicated elsewhere in the country. Project funds would cover salaries of a project monitoring and evaluation specialist and support staff and operational expenses (Annex 14). C. Cost Estimates 4.13 Total project costs are estimated at US$13.4 million, including a foreign exchange component of US$8.2 million, or about 61% of total project costs. A detailed cost analysis is provided in Annexes 15 and 16 and summarized follows: - il - Summary of Project Cost X of G'000 US$ '000 % of Foreign Project Components Local Foreign Total Local Foreign Total Base Cost Exchange 1. Irrigation 9,798 6,615 16,413 1,960 1,323 3,283 36 40 2. Agricultural Credit 932 4,192 5,124 186 839 1,025 il 82 3. Trials and Seed 157 261 418 31 52 83 1 62 4. Extension Services 1,887 728 '2,615 377 146 523 6 28 5. Animal Health 116 328 444 23 66 89 1 74 6. Markets and Abattoir 189 616 805 38 123 161 2 77 7. Roads 1,730 4,508 6,238 346 901 1,247 14 72 8. Potable Water 258 601 859 52 120 172 2 70 9. Project Administration 1,661 9,477 11,138 332 1,895 2,227 25 85 10. Project Monitoring 263 890 1,153 53 178 231 2 78 Total Base Cost 16.991 28.216 45.207 3.398 5.643 9.041 100 62 Physical Contingencies 2,523 2,566 5,089 505 513 1,018 il 50 Price Contingencies 6,191 10,273 16,464 1,238 2,055 3,293 37 62 Sub-total 8,714 12.839 21.553 1.743 2.568 6 311 4R An Total Project Cost 25,705 41,055 66,760 5,141 8,211 13,352 - 61 4.14 Cost estimates are based on mid-1976 prices. Physical contingencies include about 20% on irrigation expansion/rehabilitation, water supply, trials and seed production, municipal markets and abattoir and 10% on road construc- tion. Expected price increases have been calculated by compounding the follow- ing annual rates of increase for both local and foreign costs: for buildings and civil works, 6.5% in 1976, 12% in 1977 through 1979, and 10% thereafter; for equipment, 4.5% in 1976, 8% in 1977 through 1979, and 7% thereafter; and for all other costs, 3.75% in 1976, and 7.5% thereafter. D. Financing 4.15 Project financing would be shared by the Haitian Government, WFP, and by the IDA as follows: - 12 - Project Financing (US$ '000) Project Component Government /1 WFP IDA Total 1. Irrigation 485 900 1,898 3,283 2. Agricultural Credit 168 - 857 1,025 3. Trials and Seed 4 - 79 83 4. Extension Services 343 - 180 523 5. Animal Health 20 - 69 89 6. Markets and Abattoir 8 - 153 161 7. Roads 74 100 1,073 1,247 8. Potable Water 9 - 163 172 9. Project Administration 170 - 2,057 2,227 10. Project Monitoring 36 - 195 231 Total Base Cost 1,317 1,000 6,724 9,041 Physical Contingencies 163 - 855 1,018 Price Contingencies 492 380 2,421. 3,293 Sub-total 655 380 3,276 4,311 Total Project Cost 1,972 1,380 10,000 13,352 Percentage of Total 14.8 10.3 74.9 100 /1 Includes contributions of medium-size farmers under agricultural credit. The proposed IDA credit of US$10 million, or about 75% of total project costs, would be made to the Government on standard terms. It would cover US$8.2 million, or 100% of the estimated foreign exchange component, and US$1.8 million, or 35% of local expenditures, which is justified on country grounds. The contribution of the WFP--equivalent to the cost of two million man-days of unskilled labor in the form of "food for work"--estimated at appraisal at US$1.4 million, or about 10% of total project costs, would be made to the Government as a grant, and the Government's contribution would cover US$2 million, or almost 15% of total project costs. Government's contribution would principally meet local salaries (US$1.5 million) and a limited proportion (5% to 10%) of other local expenditures. A detailed financing plan is given in Annex 17. Whereas the share of the WFP in project financing would be in kind, Government and IDA funds, totalling US$12 million, would be passed on as a grant to ODN. ODN would use about 28% of these funds (US$3.4 million) for implementing the project and would channel the remaining 72% (US$8.6 million) to the participating regional agencies. 4.16 The Government has requested bilateral assistance from the Federal Republic of Germany and France to finance the cost of the resident consultants. The authorities in both countries are favorably inclined towards this request, - 13 - the processing of which has already been initiated. During negotiations, the Government agreed that, should bilateral assistance materialize, IDA could cancel an amount of the proposed IDA credit equivalent to the assistance so received, which is expected to amount to about US$2 million. 4.17 It would be a condition of credit effectiveness that IDA had been informed by WFP that its ongoing "food for work" program in Haiti, No. 2105, had been modified to provide 200,000 man-days of unskilled labor for the first year of the project. Agreement in principle has been reached regarding WFP's next program in Haiti, which would provide the balance (1.8 million man-days) of labor required for the project. In addition, assurances were obtained from the Government during negotiations that it would make the necessary budgetary allocations to cover its share of the project cost during the life of the project. E. Procurement 4.18 "Food for work" (equivalent to the cost of two million man-days of unskilled labor) would be financed by WFP, and procurement would be in line with its procedures. All other procurement would be in accordance with the Bank,Group's Procurement Guidelines. Contracts in excess of US$50,000 for buildings (US$0.4 million), drilling of irrigation wells (US$0.3 million), and purchase of vehicles and equipment (US$1.3 million), aggregating about US$2 million, would be awarded on the basis of international competitive bidding in accordance with IDA guidelines. Goods manufactured locally would be allowed a preference of 15% (or the level of applicable import duty, whichever is lower) over foreign goods, and for civil works, domestic contractors would be granted a 7.5% preference over foreign contractors. Contracts of less than US$50,000 but over US$10,000 would be awarded in accordance with Government procedures satisfactory to IDA. The bulk of civil works for irrigation rehabilitation/ expansion and road construction would be done on force account, but small local contractors would be hired to carry out specific construction tasks. The services of internationally recruited resident and short-term consul- tants, costing about US$2.4 million, would be obtained in accordance with procedures acceptable to IDA. F. Disbursement 4.19 The proceeds of the IDA credit would be disbursed over a four-year period to cover the following amounts: (a) Civil works, excluding expenditures on vehicles and equipment: (i) 60% of total expenditures on irrigation rehabilitation/ expansion (US$1.9 million); and - 14 - (ii) 90Z of total expenditures on office buildings and staff dwellings, rehabilitation and improvement of three muni- cipal markets and one abattoir, potable water supply facilities and road construction (US$1.7 million); (b) 100% of foreign expenditures on imported vehicles and equipment, or, if procured locally, 75% of local expenditures (US$1.3 million); (c) 95% of expenditures for agricultural credit (US$1 million); (d) 95% of total expenditures for project administration (except salaries), and expenditures on vehicles and equipment (US$0.7 million); and (e) 100% of total expenditures on resident and short-term consul- tants and fellowships for project staff (US$2.2 million). US$1.2 million would be unallocated. Any unspent balance would be cancelled. Annex 18 shows the estimated quarterly disbursements. Disbursements would be made against import documentation, contracts, or against certified statements of expenditures. For disbursements against the latter, documents would not be submitted to IDA for review, but would be retained by ODN for possible scrutiny by project supervision missions. All statements of expenditures would be signed by the Project Accountant and countersigned by the Project Director. V. ORGANIZATION AND MANAGEMENT Project Administration 5.01 ODN. Implementation of the project would be the responsibility of ODN (Chart), established under the President of the Republic and supervised by a Board chaired by the State Secretary of DARNDR and including representatives of the Departments of Public Works (TPTC) and of Finance, BNRH, the Planning Council (CONADEP), and the Director of ODN. A Regional Coordinating Committee, comprising the Director of ODN and representatives of the relevant Government services, non-Government agencies and farmers, would review twice a year, or whenever the need arises, the progress of ODN operations and propose changes if necessary. The draft statutes for ODN's establishment were submitted to IDA for review prior to their enactment. 5.02 ODN headquarters would be in Cap-Haitien and be adequately staffed and equipped (Annex 12). It would comprise two basic units: a planning, coordinating and work supervision unit and an administrative and accounting unit. The nine key staff members of ODN would be the Director, his Deputy (an agricultural economist or agronomist), a surface water irrigation spe- cialist, a groundwater irrigation specialist, an agronomist, a marketing/ agricultural credit specialist, a road construction engineer, a community development officer, and a chief accountant. Necessary support personnel - 15 - would complete the staff and 35 man-months of short-term consultants would be provided for the various project components. A Haitian national, who has been selected in consultation with IDA, would be the Director, assisted by an internationally recruited Deputy Director with project management experience. The community development officer and chief accountant would also be Haitian nationals. However, since it is unlikely that qualified and experienced Haitian nationals would be available to fill the remaining posts, expatriates would be hired, providing each with a suitably qualified counterpart. By the end of the disbursement period, the counterparts would replace the special- ists. During negotiations, assurances were obtained from the Government that: (a) candidates for the six internationally and three locally recruited key project staff positions, as well as the short-term consultants, would be approved by IDA and would fulfill terms of reference and conditions of appointment acceptable to IDA within an established timeframe set out in Schedule A of Annex 13; and (b) it would make available adequate support staff also in accordance with Schedule A of Annex 13. A condition of credit effectiveness would be that the Director and Deputy Director of ODN had been employed by the Government. 5.03 ODN would coordinate the activities of other relevant regional services involved in rural development in the project area, such as those for health and education, as well as those of bilateral and multilateral agencies and of private organizations. In addition, ODN would participate in the yearly review by Government and IDA of projected sugarcane production in the project area, of the processing capacity of the sugar mill and regarding the establishment of a yearly cutting and collection schedule for sugarcane as well as assist in the supervision of these arrangements (para 6.03). 5.04 ODN would rely on existing public services to execute specific project components, but would execute by itself and/or through the use of private consultants and/or governnental agencies all necessary planning and pre-investment studies for the proposed project operations and the prepara- tion of a follow-up project. During negotiations, assurances were obtained that each of the governmental agencies participating in the project would: (a) carry out the components of the project entrusted to it and increase and maintain its staff during the life of the project, following the timetable in Schedule A of Annex 13, except as the Association shall otherwise agree; (b) submit to ODN for approval, no later than July 1, 1977, its investment and operating budget for project-related activities, as well as its operating plans for the next fiscal year's activities under the project; (c) submit, by July l of each following year, a report on its planned activities relating to the project for subsequent years; and (d) submit the annual report of project- related activities carried out in the year by October 31 of each following year. An initial implementation schedule of project activities is given in Annex 12, Table 3. Assurances were also obtained with regard to the improve- ment of DARNDR services by requiring the Government to undertake annual reviews, beginning not later than the end of the first project year, of: (a) the adequacy of agricultural training programs so as to ensure a nationally adequate number of trained support staff (based mainly on the requirements of the regional integrated development projects) and to review their conditions - 16 - of employment with a view to attracting and retaining qualified personnel in agriculture; and (b) the need for technical assistance to strengthen DARNDR. 5.05 Irrigation. The rehabilitation, expansion and maintenance of irri- gation facilities would be the responsibility of the Irrigation and River Control Service (SICR), with assistance from the regional Hyraulics Service (SHRH). Both services would be strengthened under the project to enable them to carry out the bulk of the construction works on force account, and small contractors would be hired to carry out specific construction tasks. Further- more, international contractors would construct the irrigation wells if the Government-owned drilling rig would not be available to construct them on force account. SICR would also prepare the detailed program for rehabilitation/ expansion works, including the technical modifications to the existing gravity irrigation systems and the design for expansion works and groundwater irriga- tion. The present staff of SICR would be reinforced by a staff of 70 persons, including assistant engineers/technicians, gate tenders, pump operators, tax collectors and support staff (Annex 2). 5.06 Civil works would start in year 1 with the rehabilitation/expansion of the Quartier Morin irrigation district, followed by the groundwater develop- ment scheme north of Quartier Morin during year 2. The St. Raphael irrigation rehabilitation would also begin in year 2. Responsibility for operating and maintaining the irrigation systems would rest with ODN and SICR during the disbursement period and with SICR thereafter. During negotiations, assurances were obtained that the project-financed irrigation systems would be properly maintained during the life of the project (20 years). After completion of the rehabilitation/ expansion works, all operating and maintenance costs would be paid by the beneficiaries through water charges, which would include the costs of supervisory staff, to be collected by SICR. Assurances were also obtained from Government that: (a) the level of water charges would cover operation and maintenance costs and the largest possible share of the investment costs of rehabilitation/expansion works (expected to be about 50% of these costs); (b) SICR would be entrusted with the collection of these charges; and (c) the charges would be determined in consultation with IDA after completion of the rehabilitation/expansion works and in accordance with the payment capacity of the beneficiaries. The water charges covering operation and maintenance costs would be retained at the Cap-Haitien office of SICR to be used for necessary works. 5.07 Agricultural Credit. Agricultural credit would be the responsibi- lity of ODN but would be provided through the BCA, which would act as its agent for the purpose, with the support of a special staff of 13 to be financed under the project and employed at BCA's Regional Office at Cap-Haitien and at three field offices to be set up in the project area. The staff would include an agricultural economist, a marketing officer, three credit exten- sion officers, seven credit extension agents, and an accountant. This staff, which would be trained by, and work under the guidance of the marketing/ agricultural credit specialist of ODN, would continue BCA's efforts to organ- ize small farmers into about 400 SACs over a four-year period (from 20 in the - 17 - first year to 200 in the fourth). This staff would also prepare subloan applications, help disburse credit as approved by ODN (which would also assure that the farm plans are technically sound), and assist farmers in obtaining agricultural inputs, marketing agricultural production and constructing grain storage facilities. Subloan recoveries would be remitted to ODN to be avail- able for relending. 5.08 Under the present statute governing SACs, 5% of the amount lent to them is withheld by BCA as a guarantee deposit on which interest is paid and which, in effect, would represent small farmers' contribution to project cost in the case of project subloans. Farmers who borrow individually and are likely to be cultivating up to 13 ha of land would, however, be required to make a 10% cash contribution. Assurances were obtained during negotiations that the Governnent would (a) maintain the interest rate charged by BCA on its subloans at 9% per annum for the first two years of the project; and (b) raise, thereafter, the cost of such loans, either by an increase in such interest rate to 11% per annum, or by the addition thereto of a commission of 2% per annum. Terms and conditions of project subloans are set out in Schedule A of Annex 3. 5.09 Though BCA would immediately be strengthened by the staff under the USAID program, the employment of additional staff, and the establishment of three field offices under the proposed IDA project, its role under the project would be limited to that of an agency for channeling subloans and be subject to the control of ODN, which would meet the staff and other operating costs of BCA related to project subloans during the disbursement period. It is, how- ever, necessary to build it up gradually into a viable credit institution to serve the small farmers in the country generally and, in particular, those covered by possible future rural development projects. Governanent recognizes the importance of this goal and is reviewing the problem, with the assistance of USAID, so as to formulate a suitable plan of action (para 2.10). Assurances were obtained at negotiations that Governnent would furnish to IDA, within nine months of Credit signature, or such longer period as IDA may agree, a program for the reorganization and financial strengthening of the BCA and implement such a program as agreed with the Association (the elements of such a program are given in Schedule B of Annex 3). 5.10 Agricultural Trials and Seed Production. ODN would have direct responsibility for agricultural trials and seed production (Annex 4), with supervision carried out by the agency's agronomist. Sugarcane trials would be carried out in collaboration with the Caldos sugar mill while other trials and seed production would be coordinated with CRUDEM at its experimental station and subcontracted with individual farmers. ODN and the SVA would provide the necessary inputs and technical assistance, and an agricultural technician on ODN's staff would manage both programs. Three man-months of short-term consultants would be provided for specific technical probleins. 5.11 Trial plots in individual farms would be distributed throughout the project area but seed production would be carried out only in irrigation districts to insure adequate yields and avoid crop failures. A proposed UNDP- financed trial and seed production center in the project area is expected to continue these programs at the end of the project's disbursement period. - 18 - 5.12 Extension Services. The regional SVA would carry out agricultural and livestock extension under the project (Annex 5) and actively participate in the agricultural trials and seed production activities (para 5.10). The staff for this service would be reinforced by three additional extension officers and 30 extension agents. The regional SAR would also be strengthened by six additional agents (Annex 6) and would work in close coordination with other relevant services, in particular with ONAAC as regards functional literacy. 5.13 Animal Health. The regional SMV/SE would treat livestock against intestinal parasites and carry out vaccination campaigns in the project area against Hog Cholera, New Castle disease, and other potential animal diseases. Veterinary services would be free, but cost of vaccines, drugs and medications would be collected (Annex 7). Assurances, therefore, were obtained during negotiations that Government would cause the regional SMV/SE in the project area (a) to be responsible for the collection of the cost of vaccines, drugs and medication; (b) to determine the level of these costs and methods of collection thereof in agreement with the Government and after consultation with IDA; and (c) to ensure the continued control of major endemic diseases. 5.14 Markets and Abattoir. ODN would, in collaboration with a short- term construction engineer consultant, prepare detailed plans for the rehabilitation/improvement of three markets (Annex 8) and one abattoir (Annex 9), provide the necessary construction materials and equipment, and supervise the works. The bulk of work in Cap-Haitien would be carried out by municipal technicians and laborers to be remunerated by the municipality, while in St. Raphael, work would be done by small contractors paid by the project. During negotiations, assurances were obtained from the Government that the three markets and the abattoir when completed would be properly organized, managed and maintained by the respective municipalities, and that market and slaugh- ter fees collected by the municipalities would be sufficient to cover the management and maintenance costs of the facilities. 5.15 Roads. Feeder and farm access roads (Annex 10) would be constructed by the regional office of TPTC on force account. WFP "food for work" labor forces (about 200,000 man-days) would carry out construction and maintenance works by hand labor whenever feasible. Design of roads, their alignment selection, and work supervision would be done by the same service, aided by the road construction engineer on ODN's staff. Construction of project- financed roads would start by mid-year 1, with the bulk of the works to be carried out in years 2 and 3. SEPRRN would assume maintenance responsibility. During negotiations, assurances were obtained from Government that the project- financed roads would be properly maintained during the life of the project. 5.16 Of vital importance to the project would be the construction of an all-weather road of about 30 km from Grande Riviere du Nord to the irriga- tion district of St. Raphael (Map). This link is included in the second USAID highway project, signed on June 29, 1976. The first section from Grande Riviere du Nord to Dondon (about 15 km) has already been completed and work is proceeding on the remaining section. - 19 - 5.17 Potable Water. Rural water supply facilities in the project area (Annex 11) would be constructed and maintained by the SHRH in collaboration with the National Agency for Rural Water Supply (COALEP). Water specialists on ODN's staff would be available for technical assistance. SHRH, assist- ed by ODN, would site and design both wells and small water supply systems, supervise their construction and provide materials and equipment as well as the assistance of two mechanics to assist with the installation, provided the beneficiaries carried out excavation works and masonry free of charge. During negotiations, assurances were obtained that: (a) project-financed potable water supply systems and wells would be properly maintained during the life of the project; and (b) their maintenance costs would be met by the beneficiarles. 5.18 Monitoring and Evaluation. These tasks would be carried out by the Evaluation and Control Unit wlthin the Agricultural Planning Unit of DARNDR, which would be strengthened for this purpose by an experienced monitor- ing and evaluation expert, and necessary support staff. The Unit would pre- pare a summary report for the project at least once a year and other special reports as needed. The reports would be reviewed with ODN and subsequently made availabile to the Government, the ODN Board, the Regional Coordinating Committee and IDA. A final summary evaluation would be prepared at the end of project implementation. During negotiations, assurances were obtained from the Government that it would: (a) within one year from the date of signing of the Credit Agreement, appoint a project monitoring and evaluation expert, acceptable to IDA, to the Evaluation and Control Unit of DARNDR and expand the staff of this Unit in consultation with IDA; (b) require the expert, with the assistance of Unit staff, to prepare annual reports on the progress of the project, in accordance with terms of reference satisfactory to IDA; and (c) within three months following the end of each project year, cause the Unit to furnish the annual reports to the Government and IDA. In addition to monitoring and evaluating the proposed project, the above expert would assist the DARNDR Evaluation and Control Unit to train its staff, to develop monitor- ing and evaluation methods for rural projects in Haiti and to expand the Unit's activities nationwide. Accounts and Audits 5.19 Accounts in the different regional services and the municipalities of Cap-Haitien and St. Raphael, relevant to the implementation of the project, would be audited annually by independent auditors satisfactory to IDA, and the auditors' reports thereon would be sent to ODN within three months of the end of each fiscal year. ODN, in turn, would keep separate accounts of the various project components; have them audited by independent auditors with qualifications, experience and terms of reference acceptable to IDA; and send its balance sheet and profit-and-loss statement, together with the auditors' report thereon, to IDA within four months after the end of ODN's fiscal year. Assurances on these points were obtained at negotiations. - 20 - Cost Recovery 5.20 Based on the farm model projections (Annex 19) and the calculation of rent and cost recovery indices (Annex 2, Table 7), about 50% of cash investment for the rehabilitation of the irrigation systems would be paid back by the beneficiaries over a period of 20 years, including a five-year grace period, through water charges collected by SICR to be transferred to the Government. Excluding this payment, ODN earnings due to the project would be negligible (US$25,000). Government's cash flow throughout the life of the project would be negative (Annex 20), due to operating costs of about US$275,000, which Government would have to cover after the disbursement period. The estimated annual incremental deficit, including credit repay- ment (about US$200,000), is based on the assumption that only irrigation fees (US$3.20 per ha, or about US$15,000 per year) and income from sales of drugs and medications (about US$10,000 per year) would be collected and that no additional project-related taxes or duties would be levied, except for export taxes on incremental sugar production, expected to yield about US$140,000 per year; further, it does not take into account the increased revenues from indirect taxes--resulting from purchases of taxed goods by project benefi- ciaries --which are difficult to quantify. During the disbursement period, ODN, in consultation with IDA, would examine the possibilities of generating revenues to cover part of Goverrment's deficit arising from the project. VI. PRODUCTION, MARKETS AND PRICES, AND PROJECT BENEFITS Production 6.01 At full development, in year 7, annual incremental production by some 4,000 smallholders (1,800 in the rainfed area and 2,200 in the irrigated districts of Quartier Morin and St. Raphael) and about 100 medium-size farmers would be some 80,000 tons of sugarcane, 1,200 tons of maize, 200 tons of sorghum, 150 tons of rice, 470 tons of beans, 240 tons of bananas, 1,500 tons of yams, 660 tons of manioc, 200 tons of tobacco, 720 tons of legumes, 150 tons of beef, 220 tons of pork, and 240 tons of milk. In addition, the proj- ect would increase, to some extent, the production of the remaining 26,000 rural families in the area through better rural animation, agricultural extension and animal health services and availability of improved seeds. Markets and Prices 6.02 With the exception of sugar, about 80% of which would be exported, all project-induced agricultural products would be consumed domestically. Such products, accounting for only about 1% of Haiti's total agricultural production, are in strong domestic demand. Grains, bananas, rice and tubers are produced mostly for on-farm consumption (85%), the rest being sold on the local rural market or through intermediaries in the departmental and national capitals. Tobacco is, at present, largely consumed in the project area, but production of higher grade leaf for manufacturing of cigarettes for - 21 - domestie consumption is increasing. Practically all incremental beef produc- tion would be shipped to urban consumption centers, whereas incremental milk and pork production would be consumed on the farm, with any surplus going to a ready market in Cap-Haitien. The rehabilitation of the municipal markets under the project would lead to more competitive trading, and the improvement of about one-half of the project area's road network would facilitate and drastically reduce the transport cost of agricultural products. 6.03 Up to some 10% of sugarcane production is expected to be consumed on-farm, 20% transformed into a local rum ("clairin") by about 100 small distilleries, and 70% converted into raw sugar by the Caldos sugar mill. After the recent expansion of its capacity, the mill can process the incre- mental production from the project. During negotiations assurances were obtained that (a) the milling capacity in the project area would be sufficient to process the incremental sugarcane production due to the project; and (b) a yearly review of sugarcane processing capacity in the project area would be carried out by Government and discussed with IDA. Transportation of sugarcane to the mill has been traditionally carried out by independent truck drivers who used to require overpayment from farmers in exchange for priority given to the collection of their cane. However, this practice has ceased, following the purchase of additional trucks by the sugar mill for sale to drivers. To prevent recurrence of the practice, assurances were obtained from the Govern- ment that it would establish, jointly with the sugar mill, a yearly schedule for the cutting and collection of the sugarcane and ODN would assist in supervising the effectiveness of these arrangements. 6.04 Agricultural prices have been steadily rising in the past five years, but, except for the official increase to farmers in sugarcane prices from US$5.10 to US$9.00 per ton in 1974, producers have not tended to benefit (para 2.11). Since sugarcane is the only cash crop in the project area with an assured market and is, at its present price level, sufficiently attractive to farmers, and further, since sugar provides high Government revenues through export taxation (which averaged about 15% of the export price in 1976), assur- ances were obtained from Government during negotiations that it would (a) periodicaliy review and exchange views with the Association on the offl- cial producer price of sugarcane; and (b) not reduce such price without prior consultation with IDA. Marked price declines at harvest time and in "good" years are common because a large number of indebted farmers are obliged to sell their grains immediately after harvest when prices are lowest and ade- quate storage facilities are lacking. The grain storage facilities provided under the project would improve the situation. Project Benefits 6.05 Some 4,000 rural families would benefit from directly productive com- ponents of the project as well as from the productive support activities and the road component. In addition, about 26,000 rural families would profit from better roads, improved agricultural services and the availability of improved seeds and would increase their subsistence consumption by 10% to 20%, and about 3,000 rural households would receive potable water supply - 22 - which would improve general hygienic conditions and reduce widespread intestinal diseases as well as the need to carry water over long distances. Finally, about 60,000 urban inhabitants would benefit from decreased health hazards and more competitive trading due to the rehabilitation and improve- ment of three municipal markets and an abattoir. 6.06 Four illustrative farm model projections (Annex 19) present the financial benefits expected from these investments. The financial rates of return of the models amount to 18% for rainfed and 29%, 31% and 48%, respectively, for the three irrigated farms. Assuming that 4,000 families share the benefits due to the project equally, apart from improvement of their on-farm consumption by about 30%, they would increase annual cash incomes from agricultural and livestock activities from about US$60 to US$150 per family per year. In addition, about 160 permanent jobs would be created during the disbursement period and about 125 permanent jobs thereafter for continuation and maintenance of project-financed infrastructure, and up to 2 million man-days of unskilled labor would be provided for infrastructure develop- ment in the project area under WFP's "food for work" program. Further, project investments and activities would result in fuller employment of small farmers. VII. BENEFITS AND JUSTIFICATION Economic Rate of Return 7.01 The project would benefit a rural population with per capita incomes ranging between US$40 and US$100 equivalent per annum. Quantifiable benefits would take the form of incremental agricultural production (para 6.01), which at full development (year 7) would be worth about US$2 million annually in 1976 terms. In the absence of the project, the two large irriga- tion systems in the project area would continue to deteriorate, resulting in a significant decrease of present output. Other benefits that are difficult to quantify include the reduction of drought hazards by rehabilitation and expansion of the irrigation districts; the reduction of transport costs resulting from expansion and rehabilitation of the road network; the reduction of storage losses and protection against seasonal price variations resulting from construction of grain storage facilities; the improvement of agricultural services through the creation and strengthening of regional institutions in the Northern Department; and the possibility of implementing other rural development projects in Haiti based on the experience acquired. 7.02 The project's economic rate of return is 14% (Annex 21). Sensitiv- ity tests show that a 25% increase in the cost of construction, vehicles and equipment, or a 10% decrease in yields, or a one-year delay of project benefits would reduce the rate of return to about 10%. The project could thus absorb some setbacks and still be economically viable. - 23 - Project Risks 7.03 In addition to the difficulties inherent in organizing the new entity--ODN-- and ensuring effective coordination of the various agencies participating in the project, three major risks can be identified at this stage. First, as some 30,000 ha of cultivated land would be rainfed and dependent upon climatic conditions where a decreasing trend in precipitation has been observed in recent years (Annex 1), production projections contain an element of uncer- tainty. Second, Haiti's past record of maintaining the rural infrastructure is not good. Therefore, project-financed irrigation, roads, water supply systems, and markets and abattoir may not be kept up as called for. Finally, there is a possibility of unsatisfactory loan collection as the group credit arrangements are still in the process of development; but the denial of fresh financing under the project to defaulters should help minimize this risk. VIII. AGREEMENTS REACHED AND RECOMMENDATION 8.01 During negotiations, assurances were obtained from the Government on the following principal points: (a) it would (i) take all appropriate measures to determine and widely publicize fair prices for land acquisition and for rental in the zones of the project area which will remain rainfed under the project; (ii) prohibit land transactions in the Quartier Morin and St. Raphael irrigation districts until the irrigation rehabilitation/expansion works of the project are completed or the Government gives its prior approval; and (iii) after the completion of the irrigation rehabilitation/ expansion works, take all appropriate measures to determine and widely publicize fair prices for land acquisition and for rental in the above irrigation districts (para 3.03); (b) it would hire the following project senior staff: six to be inter- nationally recruited--Deputy Director, surface water irrigation specialist, groundwater irrigation specialist, agronomist, marketing/agricultural credit specialist, and road construction engineer--and three to be locally recruited--Director of ODN, community development officer, and chief accountant--as well as short-term consultants, all acceptable to IDA, and would make available adequate support staff within an established time frame set out in Schedule A of Annex 13 (para 5.02); (c) it would undertake annual reviews of: (i) the adequacy of agricultural training programs; and (ii) the need for technical assistance to strengthen DARNDR (para 5.04); - 24 - (d) the level of water charges would cover operation and maintenance costs and the largest possible share of the investment costs of rehabilitation/expansion works (expected to be about 50% of these costs), that SICR would be entrusted with the collection of these charges, and that the charges would be determined in consultation with IDA after the completion of the rehabilitation/expansion works and in accordance with the payment capacity of the benefi- ciaries (para 5.06); (e) the project-financed irrigation, roads, and potable water supply systems and wells would be properly maintained during the life of the project (paras 5.06, 5.15 and 5.17); (f) it would (a) maintain the interest rate charged by BCA on its subloans at 9% per annum for the first two years of the project; and (b) raise, thereafter, the cost of such loans, either by an increase in such interest rate to 11% per annum, or by the addition thereto of a commission of 2% per annum (para 5.08); (g) it would furnish to IDA, within nine months of credit sig- nature, or such longer period as IDA may agree, a program for the reorganization and financial strengthening of the BCA and implement such a program as agreed with the Association (the elements of such a program are given in Schedule A of Annex 3) (para 5.09); (h) it would: (i) within one year from the date of signing of the Credit Agreement, appoint a project monitoring and evaluation expert, acceptable to IDA, to the Evaluation and Control Unit of DARNDR and expand the staff of this Unit in consultation with IDA; (ii) require the expert, with the assistance of Unit staff, to prepare annual reports on the progress of the project, in accordance with terms of reference satisfactory to IDA; and (iii) within three months following the end of each project year, cause the Unit to furnish the annual reports to the Government and IDA (para 5.18); (i) the milling capacity in the project area would be sufficient to process the incremental sugarcane production due to the project and a yearly review of sugarcane processing capacity in the project area would be carried out by Government and discussed with IDA (para 6.03); (j) it would establish, jointly with the sugar mill, a yearly schedule for the cutting and collection of the sugarcane and ODN would assist in supervising the effectiveness of these arrangements (para 6.03); and - 25 - (k) it would not reduce the official price of sugarcane without prior consultation with IDA (para 6.04). 8.02 Conditions for credit effectiveness would be that: (a) IDA had been informed by WFP that its ongoing "food for work" program in Haiti, No. 2105, has been modified to provide 200,000 man-days of unskilled labor for the first year of the project (para 4.17); and (b) the Director and Deputy Director of ODN had been employed by the Government (para 5.02). 8.03 With the above assurances, the proposed project is suitable for an IDA credit of US$10 million on standard IDA terms. December 10, 1976 ANNEX 1 Page 1 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT The Project Area Introduction 1. The Northern Department, with an area of about 2,300 km and a population estimated at 700,000 in 1971 (Table 1), is one of the most impor- tant of the nine Departments into which the country is politically divided. 1/ The Department is subdivided into eight "arrondissements," which, in turn, comprise a number of "communes." A further subdivision separates the communes into "habitations," with the rural center of each commune being designated as the "agglomeration" and the intervening rural areas subdivided into "sections rurales." 2. The project area affects two arrondissements--that of Cap-Haitien with an area of 500 km2, and Grande Riviere du Nord. All of the Cap-Haitien arrondissement is included in the project, with particular emphasis on the plain, representing about 75% of the area, while in Grande Riviere du Nord, only the irrigation district of St. Raphael, with an area of 1,900 ha, is involved. 3. The arrondissement of Cap-Haitien includes the departmental capital, the city of Cap-Haitien, with a population estimated at about 46,000 in 1975 (Table 1), making it the second largest city after Port-au-Prince. In addi- tion, the arrondissement has a rural population of some 145,000 persons, and includes six communes: Cap-Haitien, Quartier Morin, Milot, Plaine du Nord, Acul du Nord and Limonade. It comprises some 50,000 ha of productive soils, including about 7,000 ha of sugarcane-producing lands as well as the 2,000-ha Quartier Morin irrigation district built in the late 1950s and at present in need of extensive rehabilitation. 4. The irrigation district of St. Raphael, with a rural population of about 8,000 persons, is situated at the edge of the Central Plateau and separated from the arrondissement of Cap-Haitien by the mountain front of the Massif du Nord. It was built in the early 1950s using the Bouyaha River as a source of water. The irrigation system is at present only partially opera- tive and in need of extensive rehabilitation. Agricultural production from this part of the project area is sold in the Cap-Haitien and Port-au-Prince 1/ Legally, 13 departments have been established. ANNEX 1 Page 2 markets in spite of the difficult communications with the departmental capital through the St. Raphael-Grande Riviere du Nord road and with Port-au-Prince by way of St. Michel de l'Atalaye. Physiography and Soils 5. The arrondissement of Cap-Haitien occupies a large portion of the Northern Plain. A small portion of the arrondissement, approximately 10 to 15%, is covered by the foothills of the Massif du Nord and the isolated eleva- tions of the Morne du Cap, west of the city of Cap-Haitien. The irrigated area of St. Raphael, on the other hand, is constituted by an alluvial flood plain which extends, fan-like, as the Bouyaha River descends from the Massif into the edge of the Central Plateau. 6. The project area comprises two different ecological zones with the arrondissement of Cap-Haitien corresponding to a sub-tropical humid forest in the Holdridge classification and the St. Raphael irrigation district to the sub-tropical dry forest. The soils in the arrondissement are derived from Quaternary alluviums and present well structured clays and clay loams that are very suitable for crops. Soil texture is lighter in the vicinity of the main rivers and heavier in the poorly drained area of Plaine du Nord. Most of the soils in this part of the project area have been classified II and III in a land capability survey, 1/ representing irrigable soils adequate for a large variety of crops and requiring only moderate management and conservation practices. In the irrigation district of St. Raphael, the soils are mainly alluvial, corresponding to the flood plain of the Bouyaha River, but the original materials are calcareous and siliceous rocks and clay schists of the Massif du Nord, resulting in deep, well drained and structured soils that respond well to irrigation. These soils, as in the case of the arrondisement of Cap-Haitien, have also been identified as Classes II and III in the land capability survey. Climate and Hydrology 7. Rainfall in the arrondissement of Cap-Haitien is usually abundant although unevenly distributed. Records are scarce and lack continuity but they do indicate higher yearly precipitations in the western portion of the plain (1,988.7 mm at Plaine du Nord) than in the eastern portion (1,399.2 mm at Limonade). More recent records from the sugar mill in the region (Table 2) indicate however a gradual decrease in precipitation during the last 10-year period (2,451 mm in 1960 to 670 mm in 1975), which has caused severe reductions in yields of sugarcane and other crops. Rainy periods normally occur in the fall and early winter and in May/June. Rainfall in the St. Raphael area is con- siderably lower with 855.8 mm recorded as the annual average. The period of December to March is very dry and the main rainfalls occur in May and June. Average yearly temperatures in the project area range fran 26.10C in Cap- Haitien to 24.8 C in St. Raphael. 1/ Following the USDA Land Capability Classification. ANNEX 1 Page 3 8. From April to June, the predominating winds blow from the north- east (trade winds), carrying warm.and humid air from the center-Atlantic regions. The winter winds blow from the American continent (cold fronts) bringing rain from the northwest. This is the most abundant precipitation in the Northern Plain. 9. The arrondissement of Cap-Haitien comprises three hydrological basins: those of the Riviere Salee, the Riviere Gallois or Haut-du-Cap, and the Grande Riviere du Nord. The first two rivers drain the communes of Acul du Nord, Plaine du Nord and Cap-Haitien, and obstruction and subse- quent flooding in their lower portions has created a poorly drained area affecting some 600 ha of productive land. The Haute du Cap River is only 10 km in length and originates within the arrondissement of Cap-Haitien. One of its effluents is used at Grison Garde to irrigate some 50 ha. 10. The Grande Riviere du Nord, 42 km long, originates in the arrondisse- ment of Vallieres, in the Northern Department and is the source for an irri- gation system covering some 2,000 ha in the communes of Quartier Morin and Milot. The St. Raphael irrigation district is in the basin of the Bouyaha River which flows southward from the Massif du Nord. Physical Infrastructure 11. The road network in the project area comprises about 105 km of secondary and about 200 km of rural roads. While the main road connecting Cap-Haitien with the capital city of Port-au-Prince is being reconstructed under IDA Credits 478-HA and 556-HA, most of the secondary roads are in severe need of rehabilitation. A serious lack of feeder roads further aggravates the isolation of large areas of the arrondissement of Cap-Haitien and constitutes a key constraint to the production and marketing of agricultural products. 12. Rural electrification is restricted to the departmental capital and to most of the "agglomerations," with some of the plants being provided by private groups, often religious communities. 13. Adequate supplies of drinking water are lacking in most of the rural centers and those that do exist are in need of extensive protection and repair. Provision of potable water constitutes one of the highest development prior- ities for the population in the project area. Institutions 14. A number of institutions already exist in the project area which can serve as a basis for rural development. They are, in general, severely understaffed and in most cases seriously limited by financial constraints, but they constitute the basis on which any development effort must be initiated, since they have already been involved in assisting the regional farmers and have acquired experience and recognition, the importance of which cannot be underestimated. Among these, the most important from the ANNEX 1 Page 4 point of view of the rural development project are the regional Agricultural District of the Department of Agriculture Natural Resources and Rural Development (DARNDR); the two agricultural credit agencies, BCA and IDAI; and various non-governmental organizations, some of them religious while others, such as the Community Councils, represent groups of inhabitants of the area joining to promote improvements in their localities. 15. DARNDR Agricultural District. This district is staffed by one agronomist, nine extension agents, four irrigation agents, five home econo- mists, 12 forestry agents, and two office clerks. Of these, six positions are at headquarters in the city of Cap-Haitien; five in the arrondissement of Cap-Haitien; five in the irrigation district of St. Raphael and the remaining 17 scattered throughout the rest of the Northern Department. This agency, which should play an essential role in the rural development project, is chronically affected by a lack of programs and resources which allows for only a very limited activity. Extension agents are limited in training. Except for supervising some coffee plantations and assisting the Bureau of Agricultural Credit (BCA) in transmittal of requests for agricultural credit, they carry out, essentially, office work. 16. Bureau of Agricultural Credit (BCA). BCA has an office in Cap- Haitien but its activities are very limited, being concerned mainly with financing of coffee and cacao plantations, groups of small farmers providing mutual guarantee (Agricultural Credit Societies - SACs) and, to some extent, financing sugarcane plantations. A more detailed description of BCA appears in Annex 3. 17. Institute or Agricultural and Industrial Development (IDAI). IDAI also has an office in Cap-Haitien and has been operating in the Northern Department sinde 1969. Its agricultural financing is mainly directed to medium-size farmers and to financing of improved maize, beans and rice (Annex 3). 18. Non-governmental Organizations. These include mainly the Rural Center for Development of Milot (CRUDEM), managed by a Canadian religious congregation which has had considerable success in some rural development efforts in the arrondissement of Cap-Haitien, particularly in the commune of Milot. This organization has improved 112 km of roads; installed a small electric plant; and constructed and operated seven schools serving 1,650 students, a hospital, a mobile health unit, and a semi-industrial farm. Other religious groups located outside the project area but having a general impact in the region include a Mennonite congregation in Grande Riviere du Nord, which has installed a plant for the manufacture of fruit preserves, and another religious group in Limbe, which, besides operating a hospital, has installed a hydroelectric plant to provide electricity to Limbe. 19. Community Councils. There are groups of rural inhabitants who form local councils to improve conditions in their own areas, contributing to road and irrigation canal maintenance and providing in many cases a head- quarters for teaching adults to read and write and for carrying out home ANNEX 1 Page 5 economics activities. The creation of community councils has been promoted by the Rural Animation Service of DARNDR and, in many instances, by CRUDEM and other non-governmental organizations. While sorely lacking financial resources, these councils provide important local motivation as evidenced in St. Raphael where an impressive new church building was constructed through Community Council efforts. Size of Land Holdings 20. Information on land holdings in Haiti, specifically in the project area, is partial, scattered in coverage and limited in detail. The lack of a proper cadaster and the complexity of the system for registration of land transactions makes any attempt, short of a physical survey, to determine size of land holdings and actual land property a time consuming and only partially reliable exercise. 21. In an effort to determine the land distribution pattern in the project area, the Department of Agriculture, in 1975, conducted a survey of agricultural exploitation in the arrondissement of Cap-Haitien. 1/ Subse- quently, at the request of the Bank, additional information was obtained on land holdings larger than 10 carreaux 2/ (12.9 ha), established as a limit for small farmers in the context of the rural development project. Due to the difficult access to many of the rural sections, however, this second sur- vey was limited to land holders inhabiting the agglomeration for each commune. 22. In view of the difficulty of obtaining more reliable information on the present land tenure situation, the results of the first survey, covering about 70% of the project area, were extrapolated to cover 100% of each commune and the results are presented in Table 3 for the arrondissement of Cap-Haitien and in Table 4 for the irrigated district of St. Raphael. 23. Results of the survey conducted in the arrondissement of Cap-Haitien show that 97.6% of land owners hold farms ranging from less than 0.5 cx (0.65 ha) to 10 cx (12.9 ha) while only 2.4% have farms ranging from more than 10 cx to more than 100 cx (129 ha). The large number of small farms is reflected in the fact that such holdings occupy 68.3% of the land compared to the 31.7% occupied by farms larger than 10 cx. It is probable, however, that the number of smaller farmers and the land they use have been under- estimated since their farms are too small to be either noticed or remem- bered. This is particularly true in the case of the St. Raphael irrigation district (Table 4) where only 558 ha out of some 1,900 ha were covered in the survey, representing owners living in the urban center of St. Raphael. While 1/ St. Clair and Dauphin, "Resultats de l'Enquete Sur les Exploitations Agricoles de l'Arrondissement du Cap-Haitien," DARNDR (March 1975). 2/ A carreaux (cx) is a Haitien measurement equivalent to 1.29 ha. ANNEX 1 Page 6 it is true that some large farms are known to account for the balance of the irrigated area, a great number of farmers, mainly in the less than 0.5 cx and the 1- to 5-cx categories, reside in the rural sections and are not included in the survey. 24. A trend has developed recently to consolidate small holdings into larger farms. This is brought on by the higher prices of agricultural products 1/ and probably the increased demand resulting from improvement of the Cap-Haitien-Port-au-Prince highway which facilitates access to the market of the capital and makes agriculture more attractive to entrepreneurs. The result of this trend may be a greater percentage of land in farms larger than 10 cx, particularly in the 50- to 100-cx and larger than 100-cx groups, and the corresponding reduction in percentage of area in farms smaller than 10 cx. While the trend towards consolidation so far appears to be within reasonable limits, improvements in infrastructure resulting from the project and the renewed interest in specific crops 2/ may speed it up unless the Government takes steps to prevent indiscriminate transfers of land from the smallholders to the large farmers, particularly in the irrigated areas to be rehabilitated and expanded under the project. 25. Improvements resulting from the rural development project, as well as from the construction of the new highways, may also cause land rents to rise for the small farm tenants, which could counterbalance project efforts to increase farm revenues. While the proportion of tenants in the arrondisse- ment of Cap-Haitien is estimated at only 8.5% of landholders (Table 5), it reaches 27.4% in the irrigation district of St. Raphael and may possibly be higher. These figures, regardless of their limited reliability, indicate that official measures are needed to prevent undue increases in land rentals, at least over the period necessary for the project to achieve its goals of in- creased production and improved marketing. Land Use 26. About 20% of the cultivated area of the arrondissement of Cap-Haitien is used for sugarcane destined either for delivery to the large sugar mill for processing into export sugar or to one of the 98 distilleries producing "clairin," a local rum of high alcohol content. The sugar mill has been pro- ducing an average of 8,000 to 11,000 tons of sugar per year and is expected to increase its production capacity after 1976 by 50% with installation of addi- tional equipment. Clairin distilleries are located in five of the communes (Quartier Morin, 46; Milot, 33; Plaine du Nord, 7; Limonade, 6; and Cap-Haitien, 6). They are thought to be the most important producers of clairin in the country. Sugarcane production in St. Raphael is of minor magnitude being 1/ Price of sugarcane in recent years increased from US$5.10/ton to US$9.00/ ton and food crops are estimated to have increased by 30% in price in the last two years. 2/ Plans have been announced to develop 300 ha of Burley tobacco in the Northern Plain. ANNEX 1 Page 7 restricted to on-farm consumption and limited production of syrup. Total production of clairin in the project area is estimated at some 2,130,000 gallons. 27. Other important crops in the area are banana (plantains), manioc, corn, yams, rice, malanga and, in the upper portions of the Plaine du Nord, coffee, and cacao. 28. In addition to the major agricultural products, there are three essential oil extraction mills producing lime and sour orange oils for perfume and liquor production. One of these plants is known to produce some 6,000 liters of oil per year. Fruit is collected from scattered trees and there are no significant citrus plantations. In the irrigation district of St. Raphael, vegetable production has become profitable, especially onions, tomatoes and carrots. Tobacco is also planted in both the arrondissements of Cap-Haitien and St. Raphael, but it is currently mainly for home consumption and local market, although production for industrial processing is increasing and is expected to expand in the near future. 29. In the higher portions of the arrondissement of Cap-Haitien, in the foothills of the Massif du Nord, there are five coffee processing plants three of which produced 39,960 kg of washed coffee in 1973/74. USAID is presently assisting Haiti with a comprehensive program to improve coffee plantations and increase production throughout the country. 30. Estimates by the DARNDR placed the sugarcane area in 1975 at 5,676 ha, the food crop area at 19,221 ha and other crop areas at 5,289 ha (Table 6). Fallow lands, estimated at 20% in the September-December period and 31% in the April-June period, have not been included but there is little doubt that these occur only in larger holdings since small farmers cannot afford to let land lie idle. 31. In comparison to crop production, livestock production is of limited importance. Very rough estimates indicate that there are about 20,000 cattle, 50,000 pigs, 2,000 sheep, some 3,000 horses/donkeys and 200,000 to 400,000 chickens. With the exception of about 10 commercial dairy farms involved in low cost dairy production with herds numbering between 30 and 200 crossbred cows (local breed "creole" x Brown Swiss, Jersey or Holstein Friesian) and producing up to 400 gallons of milk per day, livestock production is carried out on a smallholder basis, with local breeds grazing on fallow and receiving crop residues mainly from sugarcane cultivation. Smallholder milk production with local breeds, producing up to 600 liters of milk per cow per year, is common in the irrigation district of Quartier Morin, geared primarily for the market in Cap-Haitien. The use of draft animals is known only in the irriga- tion district of St. Raphael where about 200 pairs of oxen are used. Apart from pigs, which often show signs of Rachitis, livestock is generally in good con- dition and animal health conditions are fairly satisfactory except for sporadic Blackleg outbreaks, widespread internal parasites in irrigation districts and ANNEX 1 Page 8 seasonally inundated areas, and frequent Hog Cholera and New Castle Disease (Annex 7). Nevertheless, livestock productivity is relatively low, since animal health services are inadequate and feeding of concentrate and minerals are almost unknown. Thus, calving rates are only about 60% and cattle herd offtake probably does not exceed 10% per year, with carcass weights of not more than 125 to 140 kg. Cattle and goats are usually sold for in-town con- sumption and funeral ceremonies, but pigs are slaughtered by the smallholder producers who consume up to two to three 30- to 50-kg pigs per year per family. Family Production Units and Farm Income 32. The predominant small size of land holdings in all of Haiti, as well as in the project area, restricts the use of hired farm labor to a limited number of commercial plantations. Larger sugarcane, coffee, rice and sisal farmers in particular employ help, but mainly in the planting and harvesting seasons. Therefore, the family production unit constitutes the core of Haitian agriculture, with a large percentage of farmers and all those at sub- sistence level depending on the efforts of each family member to achieve even a low level of livelihood. 33. The average family unit in the project area has been estimated at five persons, of which three are adults. In spite of the already high rate of population growth, high infant mortality in the country has prevented the family unit from being larger. The small size of land holdings may have also acted as a deterrent, at least in the lover income groups, forcing family members to migrate, thus increasing the urban population. The primitive level of farmiqg methods, based mainly on hoe and machete, requires the participation of the whole family in agricultural production, with women and smaller children taking charge of smaller chores or participating in critical phases such as harvest or serving as substitutes for absent members of the family who are working as laborers in the region's sugarcane fields or in the rice fields of the Artibonite. 34. Income distribution data in Haiti are available only for the employed population. The latest updating was in 1970 (Table 7), which indi- cates that approximately 92% of income earners in rural areas and 58% in urban areas earned less than US$240 per year. In terms of average annual labor in- come per head of population, that is, including those who were not employed, 92% of the population in rural areas made less than US$87 a year and 58% in urban areas made less than US$57. It would appear that in the rural areas some individuals at the upper limit of the US$87 income class were above the level of absolute poverty, at least in terms of nutritional requirements, since data on annual per capita consumption of essential goods and services in 1970 (Table 8) show that about US$19 on average were spent by the rural population on basic consumption items and about US$43 on food. 35. A study to determine the composition of the basket of food required to satisfy minimum nutritional needs based only on food items for which unit prices were available indicates that a basket containing 2,390 calories per day, the standard calorie requirement per day per person in Latin America, would have been valued at US$75 per year in 1970. ANNEX 1 Page 9 36. The analysis of this information leads to the conclusion that in 1970 about 92% of the rural population and at least 58% of the urban popula- tion in Haiti, representing 85% of the entire population of the country, were below the level of absolute poverty. There is no indication that this situa- tion is different in the project area or has improved. July 27, 1976 ANNEX 1 Table 1 bAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT The Project Area Population in the Northern Department and the Arrondissement of Cap-Haitien (1965 and 1971) (Thousand inhabitants) Ponulation Number -------- 196S----------- ----------1971 ----- - o rural Total Urbar. Rural Total Urban Rural homes (19=1j Total Haiti 4334t6 57 ,2 3757,4 4314,6 879,7 3434,9 Total Deartment Tu ot 676,4 117,0 559,4 699.9 117,9 532,o Arr. Cap Haitien 150,2 45,5 104,7 199,8 54,7 145,1 Arr. Trou du Nord 74,6 18,7 55,9 69,3 14,4 54,9 Arr. Grande Riviere N. 113,3 14,5 98,8 100,4 16,0 54,4 4rr. Vallieres 48,9 3,0 45,9 47,9 3,5 44,4 Arr. Fort Liberte 105,0 19,1 85,9 68,9 12,9 56,0 Arr. Plaisance 70,6 4,6 66,0 96,8 4,1 92,7 Arr. Limbe 45,1 5,9 39,2 36,5 6,5 30,0 irr. Borgne 68,7 5,7 63,o 80,3 5,8 74,5 Total Arrondissement Cap Haitien 150,2 45.5 104,7 199,8 54,7 145,1 24,2 I. aeom. Cap Haitien 50,5 38,1 12,4 60,8 46,4 14,4 2,4 1. Bande du Nord (4,7) 2. Haut du Cap (5,5) 3. Petite Anse (2,2) II. com. Quartier Mbrin 12,8 0,9 11,9 17,2 0,6 16,6 2,8 !4. Basse Plaine (6,2) 5. Morne Pele (5,7) III. comm. Milet 16,6 1,8 14,8 22,6 2,3 20,3 3,4 6. Bonnet a 1' Eveque (3,5) 7. Genipailler (5,1) 8. Perches du Bonnet (6,2) IV. conm. Plaine du Nord 20,4 0,9 19,5 28,4 1,4 27,0 4,5 9. Basse Plaine (4,7) 10. Grand Boucan (6,1) 11. Bassin Diamant (1,0) 12. Mbrne Rouge (7,7) V. com. Acul du Nord 30,1 1,9 28,2 44,2 2,2 42,0 7,0 13. Baa de l'Aeul (2,6) 14. Camp Louiso (5,6) 15. Coupe a David (3,1) 16. Grande Ravine (2,4) 17. Mornet (11,1) 18. Souffriere (3,4) VI. comn. Limonade 19,8 1,9 17,9 26,6 1,8 24,8 4,1 19. Bas de l'Anse (8,9) 20. Basse Plaine (4,4) 21. Roucu (4.6) Source: National Statistice Institute (IHS) National Service for Eradication of Malaria (SNEM) July 1976 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT The Project Area Rainfall at Caldos Sugar Mill (1960-1976) (mm) 1960 1961 1962 1963 196ù 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 January 217.3 38.1 72.5 81.7 255.4 130.0 120.7 100.3 135.6 135.6 284.5 25.5 72.0 90.6 -0.0 o.o 10.5 February 181.1 146.8 26.0 118.9 128.2 24.2 30.7 105.0 39.9 79.9 116.1 44.1 9.3 76.6 118.4 0.0 9.3 March 557.3 130.0 1h8.6 lO0.3 23.2 80.8 89.2 49.2 16.7 65.0 98.7 61.5 198.5 79.0 51.1 h6.h 4.6 April 248.9 274.9 222.9 96.6 248.9 33.4 174.6 151-. 11.2 154.2 0.0 487.6 153.3 76.6 h6.4 0.0 116.1 May 165.3 263.8 213.6 248.0 173.7 484.8 236.8 85.5 51.1 121.9 68.5 104.5 88.2 98.7 77.8 68.5 0.0 June 234.1 43.7 134.7 89.2 192.3 80.8 116.1 157.9 213.6 108.0 81.3 45.3 106.8 55.7 38.3 55.7 30.2 July 72.5 26.9 48.3 5h.8 117.0 80.8 128.2 37.2 37.2 80.1 79.0 0.0 63.9 73.1 24.4 44.1 7.0 August 92.9 48.3 h2.7 32.5 92.9 96.6 122.6 102.2 274.9 16.3 117.3 65.0 27.9 37.2 16.3 0.0 n.a. September 154.2 115.2 65.9 100.3 286.1 218.3 102.2 111.5 170.0 9.3 147.5 1h4.0 26.7 58.1 18.6 97.5 n.a. October 186.7 305.6 130.0 202.5 146.8 55.7 159.8 269.4 116.1 109.1 39.5 138.2 152.1 72.0 124.2 25.5 n.a. November 118.0 133.8 150.5 330.7 52.9 182.0 404.o 278.6 401.2 275.2 153.3 68.5 0.0 110.3 94.0 217.1 n.a. December 222.9 1l8.6 1L7.7 351.1 39.0 221.1 366.9 37.2 354.7 261.2 4.6 13.9 20.9 102.2 106.8 114.9 n.a. Total 2451.1 1675.6 1403.4 1806.5 1741.7 1688.6 2051.7 1485.2 1862.2 1415.7 1190.0 1198.2 919.5 930.0 716.3 669.9 n.a. July 1976 RURAL DEVELIOPHENT PROJECT là THE1 98ORT011N DEPAR13IEN1T The Proi..t Ares Land Tex-r in th. Arroxd8..eelft of CeP-Haiti6 For si.. CateNorie. m~~.rIilot A.lx, d. Nore Mx Plain. du Nord Liexoda., rodise (Cerreau,r) Frs . C. . Fre 7 C. 7 For, 7. Cx. 7 Form Cx. 7. Forme 7 Cx.. %7 For- 7 Cx. . Fore x. 7 Smeller thar 0.5 85 7.8 30.2 1.0 224 16.9 53.3 1.6 779 20.2 190.5 3.1 106 19.6 26.7 1.8 574 23.7 191.0 3.5 322 17.7 117.8 2.4 2,090 18.9 609.5 2.5 0.5 t. 1.0 338 31.2 242.7 7.4 443 33.4 310.0 9.4 1,225 31.7 1,548.5 24.6 245 45.3 22O~4 13.1 1.304 53.8 1,360.4 25.3 892 48.9 934.8 19.1 4.447 40.2 4,616.8 18.8 1.0 tx 5.0 519 47.9 979.2 29.9 562 42.3 1.121.0 34.2 1.590 41.1 2,402.9 38.2 135 24.9 416.8 28.5 f76 15.5 1,302.8 24.2 449 24.6 1.368.1 28.0 3,631 32.8 7,590.8 30.9 5.0 to 10.0 72 6.7 495.6 15.1 52 3.9 335.8 10.2 230 5.9 1,344.1 21.3 31 5.7 200.1 13.7 132 5.4 848.9 15.9 119 6.5 735.8 15.0 636 5.7 3.960.3 16.1 Oub-total 1,1 93.6 1,4. 53.4 1,8 96.5 1.820.1 5.5.4 3,2 98.9 5.486.0 87.2 517' 95.5 864.0 59.1 2,8 98.4 3.703.1 68.9 1.8 97.7 3.156.5 6,4.5 10.804 97.6 16777.4 68.3 10.0 te 20.0 34 3.1 448.1 13.7 31 2.3 425.8 13.0 22 .6 300.8 .4.8 16 3.0 205.8 14.1 26 1.1 561.2 10.4 22 1.2 298.2 6.1 151 1.4 2,239.9 9.1 20.0 to 50.0 32 3.0 907.8 77.7 13 1.0 507.2 15.4 16 .4 406.3 6.4 6 1.1 176.6 12.1 8 .3 266.2 4.9 il . 6 362.5 7.4 86 0.8 2,626.6 10.7 50.0 to 100.0 3 0.3 170.6 5.2 - . - - 2 .1 100.0 1.6 I .2 83.0 5.7 I .1 245.5 4.6 3 .2 344.5 7.0 10 0.1 943.6 3.8 Lerger than 100.0 - . - . 3 .2 531.5 16.2 - - - - 1 .2 130.0 9.0 3 .1 601.0 11.2 5 .3 732.0 15.0 12 0.1 1,994.5 8.1 Sxh-tetal 69 6.4 1.526.5 46.6 47 3.5 1.464.5 44.6 40 1.1 807.1 12.8 24 4.5 595.4 40.0 38 1.6 1.673.9 31.1 41 2.3 1.737.2 35.5 259 -2.4 7,80±.6 -31.7 TOTAL9 1j08 100.0 3,7. 100.0 1.328 100.0 3.284.6 M ,6 100.0 6,9. 100.0 5 41 100.0 1.459.4 100.0 2,424 100.0 5.377.0 100.0 1,823 100.0 4.893.7 100.0 11.063 100.0 24.582.0 100.0 1/ Baeed on a exry xo-exi.g 68% et th. Cx,.e ef Cep Heltie.. 2l Ba..d on a s,.rxy xevering 70% f thOe Calmn of 011ot. 3/1 B.sed ex a survey of the Ceamex e Axel du Nord (95% of Sextixe M-ret; 70% x Sectieon Grand R-vIne; 90% of Soetiex Coupe . Dh-id; 60% xf Sertie. B.. de l'Axel; 50% et Sertie., CsP Loxise, ed 60% ft Section Seeffriere). 4/ Se.ed m a esurvey x0veri.g 60% xf th. Cx.r.e f Querti«r Norix. B/ aeed em a eervy xoverimg 71% et the Cefe et Pleine de Nord. B/ R.ed xx. a rvey xemeing 68% ofth.6 Comm ef Limoide. May 1976 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT The Project Area Land Tenure Farm Size Categories Arrondissement Cap Haitien St. Raphael Irrig. Dist. Total Project Area (Carreaux) Farms 7% Cx Farms % Cx Farms % Cx Smaller than 0.5 2,090 10.9 609.5 2.5 125 22.4 31.3 4.9 2,215 19.1 640.8 2.5 0.5 to 1.0 4,447 40.2 4,616.8 18.8 168 30.1 97.1 15.2 4,6i5 39.7 4,713.9 18.7 1.0 to 5.0 3,631 32.8 7,590.8 30.9 249 44.6 376.5 58.8 3,880 33.4 7,967.3 31.6 5.0 to 10.0 636 5.7 3,960.3 16.1 14 2.5 89.3 13.9 650 5.6 4,049.6 16.1 Sub-total 10,804 97.6 16,777.4 68.3 556 99.6 594.2 92.8 11,360 97.8 17,371.6 68.9 10.0 to 20.0 151 1.h 2,239.9 9.1 - - - - 151 1.3 2,239.9 8.9 20.0 to 50.0 86 0.8 2,626.6 10.7 2 0.4 46.0 7.2 88 .7 2,672.6 10.6 50.0 to 100.0 10 0.1 943.6 3.8 - - - - 10 .1 943.6 3.7 Larger than 100.0 12 0.1 1,994.5 8.1 - - - - 12 .1 1,994.5 7.9 Sub-total 259 2.4 7e804.6 31.7 2 0.4 46.o 7.2 261 2.2 7,850.6 31.1 TOTAL 11,063 100.0 24,582.0 100.0 558 loo.o 64o.2 100.0 il 621 100.0 jà& 22.2 100.0 1/ Includes only owners inhabiting the "agglomeration." The balance 1,342 ha of the irrigation district comprise small farms with owners living in the rural section and larger farms with owners living in Cap-Haitien or Port-au-Prince. Source: DARNDR- Programing Unit July 1976 ANNEX 1 Table 5 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT The Project Area Land Tenure Modality (M) Commune Owner Sharecropper Tenant Manager Cap-Haitien 63.2 0.7 11.2 24.9 2/ Milot3 64.7 0.4 3.8 31.0 Acul du Nord7 88.6 5.4 3.2 2.9 Quartier Morin 90.8 0.9 8.o Plaitie du Nord 67.7 17.9 9.1 5.3 1/ Limonade 76.9 2.0 16.3 4.9 Arrondissement of Cap-Haitien 75.1 6.o 8.5 lo.4 St. Riaphael Irrig. District 60.8 5.7 27.4 6.1 Total Project Area 74.4 5.9 9.8 10.7 1/ Based on 68% coverage. 2/ Based on 45% coverage. 3/ Based on 71% coverage. E/ Based on 60% coverage. §/ Based on landholders living in the urban center of St. Raphael. aource: DARNDR- Programming Unit July 1976 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT The Project Area Land Use Sgarcane Food Crops Others Total _x Ha 7f Cx ha __ Cx ha %_ Cx ha % Arrondissement of Cap Haitien 4,200 5,418 17.9 -12,200 15,738 52.1 3,700 4,773 15.8 20,100 25,929 85.9 Irrigation District of St. Raphasi 200 258 .9 2,700 3,483 11.6 400 516 1.7 3,300 4,257 14.1 Total Project Area 4 5,676 18.8 14 900 19,221 63.7 4,100 5,289 17.5 23,1400 3-0186 100.0 Source: DARNDR July 19, 1976 El HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTHDT The Pro] *ct Arsa Income Distribution Pattern of Ewloyed Population in Urban and Rural Areas (1970) OeUNTRY TOTAL RURAL AÀ1 URAN AES (inclu%ins Port-au-prince PORT-AU-PRâLCE Average for the Class Eployed LaboT Income spoloved Labor Income bWloyed Labor Incoa Pjployed Labor Ic Incoeo Class In In In In In MiIlion In million In million (Courdes ver annum) Courdes US$ Thousand L Courdes .L Thousand L Courdes j Thousand Courd Thousand G ourde Lowest Income 14s5 thbn 1,200 600 125 l.e46.t 86.9 748.056 55.8 1.121.5 92.0 6Tæ9 72.1 125 2 s8, o 75.1 18.4 62.5 ss.8 14.8 Médium Incom 6 000 1.200 183.9 12.8 550.501 39.4 96.7 7.9 250.9 26.8 87.o 40,4 279.4 68.5 50.5 43.6 169.0 65,8 1,00 - 3,600 2,400 480 156.8 10.9 376,272 28.0 90.8 7.4 218.0 23-3 65.9 30.6 158.3 38.8 36.5 31.5 87.6 34.6 3,601 - 6,ooo 4,800 960 19.4 1.3 92,952 6.9 4.5 0.4 21.7 2.3 14.8 6.9 71.2 17.5 9.5 8.2 45.7 18.1 6,001 8,400 7,200 1,440 5.4 0.4 39,273 2.9 0.9 0.1 6.8 0.7 4.5 2.1 35.5 8.0 3.0 2.6 21.7 8.6 8,401 10,800 9,600 1,920 2.3 0.2 21,804 1.6 0.5 0.0 4.4 0.5 1.8 0.8 17.4 4.2 1.5 1.3 14.0 5.5 hizb r Income 18.000 3.600 _U9 o.3 635oos 4.8 0.5 0.1 9.9 Ll 3.4 L.5 Ua 15.1 2.9 2.5 46 18.4 10,801 - 13,200 12,000 2,400 1.6 0.1 19,092 1.4 0.1 0.1 1.5 0.2 1.4 0.7 17.5 4.3 1.3 1.1 15.5 6.1 13,201 - i5,600 14,400 2,880 0.8 0.2 11,688 0.9 0.2 0.1 3.4 0.4 o.6 0.3 8.2 2.0 0.5 0.4 6.9 2.7 15,801 - 15,000 16,800 3,360 0.2 0.2 4,164 0.3 - 0.1 - - 0.2 0.1 4.1 1.0 0.2 0.2 3-7 1.5 18,001 - 20,400 19 200 3,840 o.6 0.2 11,556 0.9 0.1 0.1 2.0 0.2 0.5 0.2 9.6 2.3 0.4 0.4 8.6 3.4 20,401 - 22,800 21,600 4,320 0.2 0.2 4,980 0.4 0.1 0.1 2.6 0.3 0.1 0.0 2.4 o.6 0.1 0.0 1.3 0.5 22,801 snd more 24,000 4,800 0.5 0.2 11,520 0.9 - - - - 0.5 0.2 11.5 2.8 0.4 0.4 10.3 4.1 Total! 1.434.6 100.0 1.341.403 100.0 1.218.9 100.0 933.4 100.0 215.7 100.0 408.0 100.0 115.7 100.0 là?.8 100.0 Average annual income per eloy d in Courdes 98 765 ,892 in $ 153 -378 437 Wmber of inhabitants 2271.0 .59 911.4 sL7 % of 1loysd per population (%> 33.6 36.3 23.7 21.0 Labor income per oue inhabitant in Courdes 14 in $ -R 55 li latio bltveun average inco. in the lovest and the hiSheat group 1:28 1:33 1:27 Source: IBRD Economic Mission and IH (laquete Socio-Economique, April 1970). July 1976 HAITI RURAL DEVELOPMENT. PROJECT IN THE NORTHERN DEPARTMENT The Project Area Annual Per Capita Consumnption of Essential Goods and Services (1970) Total Consumption (in thousand Gourdes) Per Capita Consumption (in Gourdes) Of which: In urban consumption Of which: Of which: Country Rural Urban Fort au Other Country Rural Urban Port au Other Goods aqd Services Total Areas Areas Prince Cities Total Areas Areas Prince Cities A. Basic consumption items: 1,513,481 1,031,885 481,603 335,885 145,723 354 308 529 611 402 Food (including coffee) 996,777-- 718,090 278,700 192,291 86,409 233 214 306 350 239 Rent and fuel 268,594 146,658 121,935 90,300 31,633 63 44 134 164 87 Medical care 176,401 121,999 54,401 35,707 18,693 41 37 60 65 51 Clothing 71,714 45,138 26,567 17,587 8,988 17 13 29 32 25 B. Regular consunption items: 395,366 252,636 143,727 94,765 48,958 93 74 157 172 136 Lighting 34,134 20,970 13,164 9,195 3,969 8 6 14 17 il Toiletry and detergents 83,177 52,643 30,533 19,289 11,244 19 16 33 35 31 Education 44,642 15,209 29,433 23,026 6,406 10 4 32 42 18 Transport 55,819 31,331 25,487 17,309 8,178 13 9 28 31 23 Recreation and culture 55,238 40,069 15,168 10,547 4,620 13 12 17 19 13 Other 122,356 92,414 29,942 15,399 14,541 29 27 33 28 40 C. Occasional consumption items: 75,987 52,632 23,352 16,694 9,656 18 15 24 25 27 Furniture 26,104 21,074 5,029 2,529 2,499 6 6 5 5 7 Luxury items 12,386 4,817 7,568 4,898 2,670 3 1 8 9 7 Home repair 20,131 1l4,426 5,704 4,008 1,696 5 4 6 7 5 Other 17,366 12,315 5,051 5,259 2,791 4 4 5 4 8 Consumption of necessities -- (A+B) 1 908 847 1 284 521 625 330 430,650 194,681 447 382 686 783 538 Total consumption (A+B+C) 1984834 7 53 447 344 2. __ W 7iT uw _Z5 Population Number of families 908,160 721,906 186,254 111,437 74,817 Number of inhabitants 4h271 053 3 359 634 911 419 549 674 361 745 Persons per family 4.70 t465 M9. i t.93 tbr Source: IBRD Economic Mission & IHS (Enquete Socio-Economique, April 1970) July 1976 ANNEX 2 Page 1 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Irrigation Rehabilitation and Expansion Water Resources and Water Quality 1. The average annual rainfall in the Northern Plain is estimated to vary between 1,200 and 1,900 mm but a gradual decline has been noted over the past 10 years. Distribution is very uneven, and serious flooding occurs in low parts of the plain, made worse by insufficient natural drainage. 2. The hydrogeology of the plains has not been studied in detail, but the potential for groundwater development is considered to be very promising since the water table is only 3 to 5 m below the surface, near the foothills of the Northern Range mountains, and about 1 m below the surface at the north- ern limit of the Quartier Morin Irrigation District. 3. Surface water and groundwater are reported to be of good quality and only some shallow wells close to the coast are known to have slightly brackish water. Irrigation Water Demand 4. Water requirements were determined separately for Quartier Morin and for St. Raphael based on rainfall data for a period of 16.5 years in Quartier Morin (1960-76) and taking account the respective cropping patterns. Sugarcane dominates the cropping pattern in Quartier Morin (80%) and requires water mainly in its vegetative growth period, with only limited amounts needed during the period of maturity. The irregularity of rainfall in the area, however, makes irrigation essential to ensure a normal growth process and a sufficiently long harvesting period to achieve production goals. The rela- tively high clay content in the soils of the area, making for higher moisture retention capacities, results in relatively modest water requirements. In St. Raphael, cropping patterns based on high water-consuming crops and con- siderable double cropping, combined with lighter textured soils and lower water retention capacities, result in considerably higher water requirements. The monthly irrigation water requirements are shown in Table 1. 5. Information on rainfall is limited and data on evaporation, evap- transpiration and percolation rates, used for determining demand for irriga- tion in the project area, are not available. Water requirements obtained by using the Blaney-Criddle method for the same crops under similar soil and climatic conditions in the same general region were therefore used for comparison purposes. Effective rainfall in the project area was estimated to vary from 85% in the dry months to 45% in the wet months for the ANNEX 2 Page 2 St. Raphael area, and from 80% to 20% in Quartier Morin. Field irrigation efficiency was estimated to range between 50% in Quartier Morin to 60% in St. Raphael, with a system efficiency of about 10% in both irrigation district. Water Rights 4. The Irrigation and River Control Service (SICR) of the Department of Agriculture, Natural Resources and Rural Development (DARNDR) is the only Government agency authorized to allocate water for irrigation purposes. Since the two irrigation districts in the project are already in operation, there is no problem with the use of the river water diverted for irrigation purposes. Groundwater irrigation development would also be controlled by SICR. Existing Irrigation Facilities 7. Both the St. Raphael and the Quartier Morin irrigation systems have been desi1ned for high volume of water. The Quartier Morin main canal could carry 4 m /second and the St. Raphael main canal, 2 m /second. The under- utilization of both systems, and especially the Quartier Morin system, has led to very high sedimentation in the canals which would be reduced under the project through appropriate measures prepared by consultants. The design of existing systems would also allow a shift from the proposed cropping pattern, with its main emphasis on sugarcane for Quartier Morin, to crops with higher water requirements, if updated hydrological records would indicate this to be feasible. 8. Quartier Morin Irrigation System. This system was built in the late 1950s by div5rtirg water from the Grande Rivere du Nord, with a watershed of about 700 km and an average annual discharge of about 250 million m . The system was originally intended to irrigate 4,000 ha of land on the west bank of the Grande Riviere du Nord. As a result of studies carried out in 1960, however, the area was reduced to 2,000 ha because of the limited water supply. In any case, the system was never completed and it now3serves only 1,200 ha. The average mon5hly flow at the diversion dam is 7.8 m /sec, varying between 0.23 and 62.0 m /sec according to data gathered between 1922 and 1939. This allows irrigation of the district under the cropping pattern assumed for the farm models elaborated in Annex 19, without facing any irrigation water deficits. 9. St. Raphael Irrigation System. This system is located about 35 km south of the Quartier Morin District, near the southern limits of the North- ern Department. It was built in the early 1950s and cammands 1,900 ha of land in the flood plain of the Bouyaha River. Th s river, a tributary of the Artibonite River with a watershed of about 160 km upstream of the irrigation system, is channeled 5hrough a diversion dam into a main canal that has a capacity of about 2 m /sec. The average annual volume of water at the intake of the system is about 110 million m . The average monthly flow of the ANNEX 2 Page 3 Bouyaha River varies between 0.2i and 18 m /sec according to 1923-39 data, with an overall average of 3.4 m /sec. This allows irrigation of the district under the assumed cropping pattern. Based on historical flow records, there is an 85% probability of satisfying the monthly irrigation water requirements during the main growing seasons. 10. Groundwater Irrigation. There is no detailed information available on the number, depth and yields of existing irrigation wells in the project area, but it is known that well irrigation development has been successfully carried out by private drilling companies. A number of deep wells north of Quartier Morin (about 30 to 35 m deep) penetrate a slightly artesian aquifer and, when equipped with pumps, can yield over 100 liters/sec. Proposed Works 11. Quartier Morin Irrigation District. Under the project, all canals and drains would be cleaned and repaired, siphons and distribution structures would be rehabilitated and the dikes along the Grande Riviere du Nord would be repaired. The canal and drainage system of the district would be extended to cover an additional 800 ha. On-farm development would be carried out on about 2,000 ha and would include land leveling and construction of gates, farm ditches and drains. 12. St. Raphael Irrigation District. The project would rehabilitate the canal and drainage systems as well as the distribution structures. On- farm development, including land leveling and construction of gates, farm ditches and drains, would be carried out in the 1,900 ha of the district. 13. Groundwater Irrigation. The groundwater potential of the lower plain in the Northern Department is considered to be extensive and there are, at present, only a few deep wells exploiting the aquifers. The proposed project would be the first stage of a groundwater development program to provide well irrigation in the region. The scope of the project was deter- mined on the basis of the need for irrigation, the existing knowledge about groundwater resources, and the capacity of the project organization. The proposed number of wells is not expected to create any danger of over- exploitation of the acquifer. However, if the groundwater development were to be extended in the future, controls would have to be introduced to regulate this development. 14. Under the project, a total of up to 14 deep wells would be con- structed, each about 40 m deep and equipped with a pump driven by a diesel engine. Wells should yield an estimated 100 liters/second each (para 10). The canal and drainage system associated with each well would serve about 70 ha. On-farm development would include land leveling and on-farm ditches and drains. Control structures would be provided to determine the water con- sumption of each group of users (Agricultural Credit Societies - SACs) bene- fitting from a well. ANNEX 2 Page 4 Project Implementation 15. The project would be carried out under the overall supervision of the Organisme de Developpement du Nord (ODN) with the assistance of two resident consultants and 18 man-months of short-term consultants (paras 23 to 26). The consultants would, together with their counterparts from SICR, prepare the detailed work program, including the design of the groundwater irrigation scheme, and technical modifications necessary to rehabilitate the existing gravity irrigation systems. 16. Construction would start with the rehabilitation of the Quartier Morin irrigation district, to be followed by the preparation of the ground- water development during the second project year. Work on the St. Raphael irrigation district would also begin during the second project year. 17. The civil works would, in general, be carried out by force account under the direction of ODN. Manual labor would be used wherever feasible. Services of small contractors would be used whenever appropriate. 18. The equipment provided under the project would be operated by ODN under the supervision of the consultants and their counterparts. Drilling of the up to 14 irrigation wells would either be carried out on force account, with drilling equipment provided by the Government 1/, or be done by inter- national contractors. All equipment would be maintained and repaired at the workshop of the National Road Maintenance Service (SEPRRN) in Cap-Haitien. Costs associated with the irrigation component are shown in Tables 2 to 5. Operation and Maintenance 19. During project implementation, operation and maintenance of the irrigation districts would be the responsibility of ODN. After the disburse- ment period, SICR would assume overall responsibility. One irrigation engi- neer would be responsible for both the St. Raphael district and the Quartier Morin district, including the area irrigated by groundwater. One assistant engineer/technician with a small staff for administrative and technical work would be employed for each district. 20. The irrigation engineer would be responsible for the allocation of water, the operation of the diversion dams and the water distribution system, and overall supervision of the groundwater wells. He would, furthermore, be responsible for maintenance works on the major distribution and drainage canals and structures. The project would also provide vehicles and equipment required to carry out operation and maintenance. 1/ SICR owns a modern (1975) drill rig which would be adequate for the construction of the wells. ANNEX 2 Page 5 21. Farmers would be responsible for maintaining and operating the farm- level distribution and drainage systems, and SACs would be strengthened or reorganized to carry out the work in a cooperative way. The SACs benefitting from a deep irrigation well would form a water user group which would be respon- sible for the operation and maintenance of the well equipment to be run by a pump operator. Water Charges 22. At full development, all operation and maintenance costs (Table 6) would be paid by the beneficiaries through water charges. This would include the cost of supervisory staff, labor, vehicles, repairs and fuel. Fuel and repair of the diesel engines with which the wells are equipped would be paid directly by each user group. Water charges would cover a part of the invest- ment cost, which would be determined in consultation with IDA in accordance with the payment capacity of the beneficiaries. The calculation of rent and cost recovery indices (Table 7) for three relevant farm models (Annex 19) leads to the conclusion that about 50% of the investment cost could be recovered dur- ing the life of the project beginning after completion of the irrigation reha- bilitation/expansion works. Final water charges would be adjusted, on the basis of data collected by the Evaluation and Control Unit of DARNDR. While small farmers would be subject to lower water charges covering only operation and maintenance costs, larger farmers would be charged progressively higher rates to recover as much of the investment cost as feasible. In the past, the water charges (G 16 per ha per year) that were collected were transferred to the Government in Port-au-Prince. None was channeled back to cover irrigation expenses. However, they were not high enough to cover the cost of operation and maintenance. Under the project, only the nominal water charges (G 16) and the investment costs recovered would be transferred to the Central Government. The remaining part of the charges would be at the disposal of ODN/SICR to cover operating and maintenance costs. Consultant Services 23. The project would provide the services of two resident consultants for irrigation development and 18 man-months of short-term consultants. One resident consultant would be a specialist in the design and construction of gravity irrigation systems, and the second would be a specialist in the design and construction of deep well irrigation systems. The resident consultants would be employed over a four-year period and assume the general responsi- bility for: (a) detailed surveys as required for preparing quantity estimates, including topographic surveys for land leveling; (b) modifications of the existing gravity irrigation systems, including studies to increase the water supply for the St. Raphael district; ANNEX 2 Page 6 (c) final design of the extension of the Quartier Morin irrigation district and the design of the well-irrigation system; (d) studies of further extension of irrigation in the northern plain and the rehabilitation of the swamp near Ca,)-Haitien; (e) construction supervision; and (f) in-service training of local staff. 24. The short-term consultants would assist the resident consultants in the following activities: (a) review of the existing irrigation systems, including the design of modifications (e.g., structural improvement to reduce sedimen- tation in the canal system); (b) detailed study of the groundwater resources of the Northern Plain, including determination of the location of deep wells for irriga- tion; (c) supervision of well drilling operations; and (d) study of the rehabilitation of the 500- to 1,000-ha swamp near Cap-Haitien, including preliminary design of a drainage system and a proposal for agricultural and rural development. 25. One important objective of the consultants would be to strengthen the SICR in the Northern Department so that the farmers would be assisted in better water management, which would, in turn, facilitate the extension of irrigation in this area. 26. The estimated schedule for the provision of consulting services during the development period is as follows: ANNEX 2 Page 7 Year 1 Year 2 Year 3 Year 4 Total Consultant --------------Man-months-------------- 1. Resident Consultants Irrigation Engineer, Gravity Systems 12 12 12 12 48 Irrigation Engineer, Groundwater Systems 12 12 12 12 48 Sub-total 96 2. Short-term Consultants Irrigation Specialist to review existing systems 3 - - - 3 Design Engineer 3 1 - - 4 Hydrogeologist 3 1 - - 4 Drilling Specialist - 1 1 - 2 Drainage Engineer (Swamp Rehabilitation) - - 2 - 2 Agriculturist, Tropical Crops (Swamp Rehabilitation) - - 1.5 - 1.5 Soils Specialist (Swamp Rehabilitation) - - 0.5 - 0.5 Agro-economist (Swamp Rehabilitation) - - 1 - - Sub-total 18 Total 114 December 6, 1976 HATTI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Irrigation'Water Requirements Months J F M A M J J A S 0 N D Total Quartier Morin -1/ Mean Monthly Frecipitation( ( ) 1o4.1 73.8 105.9 146.9 150.0 loh.9 51.3 74.1 il4.1 139.6 169.9 157.1 1363.5 Effective Precipitation (mm)J 20.8 59.1 21.2 29.4 30.2 20.9 45.8 59.3 22.8 27.9 33.9 31.4 402.7 Dry morths: 80% Wet months: 20% 3/ Sugarcane Water Requirements (mm) 45.0 34.0 39.0 13.0 0.0 15.0 27.0 48.o 64.o 4o.0 30.0 32.0 387.0 Sugarcane Water Requirements (1000 m3 720 550 630 210 .0 240 435 770 1025 640 480 520 6220 Total Crop Water Requirements ('000 m-) 990 740 900 360 40 330 600 950 1150 700 480 620 7860 Plus: System los (l0c% 99 74 90 36 4 33 60 95 115 70 48 62 786 Diversion Demand ('QOO m) 1089 814 990 396 44 363 660 1o45 1265 770 528 682 8646 Diversion Demand (nm/sec) 0.42 0.32 0.38 0.15 0.02 0.14 0.25 0.40 0.50 0.30 0.20 0.26 - Duty (1/sec/ha) 0.21 0.16 0.19 0.0 0.01 0.07 0.13 0.20 0.25 0.15 0.10 0.13 - St. Raphael Mean Monthly Precipitation (mm) 20 19 19 91 122 135 98 87 108 83 58 15 855 Effective Precipitation 18 17 17 41 55 61 44 39 49 37 52 13 356 Dry months: 90% Wet months: 45% Total Crop Water Requirements (rnm) 732 624 539 471 236 337 616 633 370 191 277 393 5419 Total Crop Water requirements ('000 m3) 2071 1756 1471 1313 595 1182 1770 1836 1112 511 820 1197 15634 Plus: System loss (i0o% 207 176 147 131 60 118 177 184 111 51 82 120 1563 Diversion Demand ('900 re) 2278 1932 1618 1444 655 1300 1947 1020 .223 562 902 1317 17197 Diversion Demand (m /sec) 0.88 0.75 0.62 o.56 0.25 0.50 0.7t 0.78 0.47 0.22 0.35 0.51 - Duty (1/sec/ha) 0.4 0.40 0.33 0.30 0.13 0.26 o.40 0.41 0.25 0.12 0.18 0.27 - 1/Caldos Sugar Corp. (1960 to mid-1976). 7/By US Bureau of Reclamation method. 5/Sugarcane.8C1% of cropping pattern. 17/FAO-CP Preparation report. _ ax~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~( 1NNEZ 2 Table 2 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Irrigation Rehabilitation and Expansion Cost of Equipment (G) Estimated Estimated Total Cost Number Unit Cost Local Foreign Total 1. Construction Backhoe (70 hp) i 300,000 300,000 300,000 Loader 1 150,000 150,000 150,000 Dump tuck (6 t) 3 60,000 18o,000 180,000 Tractor (D5 or equiv.) with angle blads and ripper 1 325,000 325,000 325,000 Landplane, tractor pulled 1 100,000 100,000 100,000 Grader 1 325,000 325,000 325,000 Equipment and tools for nanual labor(wheel barrows, picks, shovels, etc.) Lot 75,000 50,000 125,000 Spare parts (10%) 7,500 143,000 150,500 Sub -total 82,500 1,573,000 1,655,500 2. Engineering and Supervision Vehieles, four-wheel drive 4 35,000 - 140,000 140,000 Vehieles, pickup, standard 3 30,000 - 90,000 90,000 Motorbikes 6 4,000 - 24,000 24,000 Engineering nd technical quipmentit Lot - - 50,000 50,000 Spare prts (10%) - 30,400 30,400 Sub-total 334,400 334,400 3. Operation and Maintenance.2/ Dumptrucks (6 t) 2 60,000 - 120,000 120,000 Vehicles, four-wheel drive 3 35,000 - 105,000 105,000 Vehieles, pickup, standard 2 30,000 - 60,000 60,000 Motorbikes 3 4,000 - 12,000 12,000 Shop and servicing equipment (50% of central unit cost) Lot 25,000 50,000 75,000 office quipment23/ Lot 5,000 15,000 20,000 Sub -total 30,000 362,500 392,000 Total equipment 112,500 2,269,400 2,381,900 I/ Includes technical equipment for surveying, hydrological investigations and drafting. 2/ Equipment maintained and repaired in the workshop of the National Road Maintenance Service (SEPRRN). 3/ Includes calculators, typewriters. July 13, 1976 HAITI RURAL DEVELOPNENT PROJECT IN TE NRTRN DEPÀ NT IrriRation Rehabilitation and Expausion Staff CostJ Annual Salary Year i Year 2 Year 3 Administration and Engineering Local Foreign Manyear Cost Manyear Cost Manyear Cost Yanyear Cost Hsnyear Cost Aoduinitration Accouniatn 13,500 1 13,500 1 13,500 1 13,500 1 13,500 4 54,000 Seer.tary 11,800 1 11,800 1 11,800 1 11,800 1 11,800 4 47,200 ' enoiiiant, short-terml/ (420,000g)E 0.75 (315,000) 0.25 (105,000) o.5 (210,000) - - 1.5 (630,000) Countezpart 21,800 1 21,800 1 21,800 1 21,800 1 21,800 4 87,200 Surveyor 15,000 2 30,000 2 30,000 1 15,000 1 150ooo 6 90,OJO Draftsmn 8,400 3 25,000 3 25,000 2 16,800 2 16,8oo 1o 83,600 Driver 5,000 2 10,000 2 10,000 2 10,000 2 10,000 8 4O,OOO Wo kshon -tf 8,000 1 8,000 1 8,000 1 8,000 1 8,000 4 32,000 leclanic 5,000 2 10,000 3 15,000 3 15,000 3 15,o00 il 55,000 Sub-total 130.110 135.100 111.P00 111.900 489.ooo Construction Irrigation engineer" (275,000) 2 (550,000) 2 (550,0(4 2 (550,00oc 2 (550,000) 8 (2,200J000) Couzfterpart 21,800 3 65,J400 3 65,400 3 65,400 3 65,400 12 261J600 Aeoiutant engineer 15,000 3 45,000 3 45,000 3 45,000 3 45t000 12 180,0D0 surveyor 15,000 4 60J000 4 60,000 2 30,000 30,000 12 1 O,000 Accountant (field office) 13,500 2 27,000 2 27,000 2 27,000 2 27,000 8 108,000 Secretary (field office) 8a400 2 16,800 2 16,800 2 16,800 2 16,000 8 67,200 Equipnent cperator 7,200 3 21,600 4 28,800 4 28,800 4 28,800 il 108,000 Driver 5,00o 5 25,ooo 7 35,000 7 35,000 7 35,000 22 130,000 Sub-total 260,800 278.000 248,000 248.0litation plan and work supervision- 34,000 Physical contingencies (207%) - - 75,000 Sub-total 449,000 B. Abattoir Market Design of marketiQ/ - - 25,000 Work execution - - 200,000 Sub-total 225,000 Total 674,000 1/ Works would be carried out by municipal technicians and laborers. 2/ For 2ehabilitation2and expansion of the existing toilet facilities. 3/ 25 m at G 1,000/m (includes insulation, insulated door, light) plus cost and installation of cold storage equipment (3 tons) at G 25,000. 4/ Includes one washing basin, one marbie slab, and general improvements of floors, walls, including mosquito screens, and such per butcher shop. 5/ To be constructed of reinforced concrete at G 125 per running m (1 m wide). 6/ For water pipes, faucets and one water pump. 7/ To rehabilitate existing drainage facility. 8/ Cement, sand, reinforced bars, paint, and such. 9/ 107. of costs of materials and equipment. 10/ Includes water supply, sanit-ry installations, drainage, paved walk-ways design and alignment of vending stalls, fencing, and such. July 8, 1976 ANNEX 8 Table 2 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Improvement of the Municipal Market of St. Raphael (G) Project Year 2 Unit Cost No. Cost Water supply - 17,500 Pavement of market area, including 2 adequate drainage 15/m 2,000 30,000 Sub-total 47,500 Physical Contingencies (25%) - - 11,900 Design of Market - 10,000 Total 69,400 1/ Extension of existing water supply system (G 5,000), including construction of a 5-m3 elevated tank (G 12, 500). July 8, 1976 ANNEX 9 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Municipal Abattoir - Costs of Materials and EquipmienA/ (G) Proiect Year 1 Unit Cost No. Costs 22 Corrugated iron for roofing 100/m 450 m2 45,000 Brick wall, 1.2 m high 80/m2 100 m2 8,000 Mosquito screens 30/m2 500 m 15,000 Toilet and washing basin 1 2,500 Storage room for tools and miscellaneous equipment 1 800 Knocking crush 1 1,500 Hand winch 2,500 1 2,500 Two concrete tables and two concrete asins - - 4,000 Miscellaneous construction materials-- - 7,500 Miscellaneous slaughter equipment and tools3/ - 7,500 Fencing t/ 50/m 300m 15,000 Gate 1 500 Paddocks5/ 1,500 2 3 2 4,500 Manure pit 20/m 25 m 500 Repair of covered sewerage ditch 60/m 200 12,000 Compensation for replacingvending stalls 6 500 15 7,500 Elaboration of rehabilitation plan and work supervision-/ - - 13,400 Sub-total 147.700 Physical contingencies (20%) 29,500 Total Costs 177,200 1/ Rehabilitation works vould be carried out by municipal technicians and laborers. 2/ Cement, sand, reinforcement bars, faucets, waterpipes, paint, and such. 3/ Includes hammer, two carts, metal trays, various tools, and such. 4/ InclYdes reinforced concrete posts every 4 m, wire-net and two barbed wire-strings. 5/ 50 m each. 6/ 107% of costs of materials and equipment. July 8, 1976 ANNEX 10 Page 1 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Road Construction and Maintenance The National Road Network 1. Haiti's road network outside the urban centers comprises about 3,400 km, of which 430 km, or about 13%, have an asphalt or cobblestone sur- face, the remainder being gravel or earth, with earth more predominant. The network is largely adequate in extent, but its condition is in general very unsatisfactory due to a nearly total neglect of maintenance for many years. Composition and condition of the network in the project area is fairly close to the national average. 2. Responsibility for road construction and maintenance, both urban and rural, rests with the Department of Public Works, Transport and Communication (TPTC). The Department has a supervision service for construction of larger projects and a force account equipment fleet and staff, which, in practice, is occupied only with urban street construction and maintenance. Maintenance of the extra-urban road network is delegated to an autonomous service of the Departments, the permanent service for maintenance of the national road network (SEPRRN 1), established in 1972 with assistance from USAID. 3. The physical deterioration of the extra-urban network has progressed so far that ordinary and periodic maintenance activities are largely meaning- less. Consequently, SEPRRN's efforts have been directed to rehabilitation of key links in the network, while the network as a whole until late 1975 received scant attention. Recently, however, district offices have been established in Cap-Haitien, Hinche, and Les Cayes, functioning as centers for mobile units maintaining drainage works and structures. 4. The Bank has assisted Haiti in financing four highway projects, of which the last two comprise construction of the Port-au-Prince to Cap-Haitien road to two-lane, paved standards. That road will provide all-weather connection between the project area and the capital and is expected to be completed by the end of 1976. The Road Network of the Project Area 5. In the project area, the main network comprises about 105 km, of which 20 km are paved. The length of the motorable feeder road network is estimated at about 200 km. Some roads in the area, such as the Cap-Haitien 1/ Service d'entretien permanent du reseau routier national. ANNEX 10 Page 2 to Trou du Nord highway were previously either paved or had cobblestone or gravel surfaces, of which virtually nothing remains to date. Presently, feeder roads in the area are frequentIy unpassable in the rainy season. 6. TPTC forces in the project area do not carry out any work outside the town of Cap-Haitien, limiting itself to street maintenance work. Their equipment is in complete disrepair, the maintenance yard is equipped with only a few hand tools, and spare parts stock is non-existent. Operational equipment is limited to two trucks and one jeep for the district engineer. SEPRRN, on the other hand, has an equipment yard of ample size, as yet under- utilized, and in need of cleaning out and refurbishment. An ongoing USAID sponsored road maintenance program will finance modernizing of the Cap Haitian SEPRRN workshop as well as the procurement of tools and maintenance equipment. 7. The only road construction activity undertaken in the area in recent years has been carried out by the Rural Development Center of Milot (CRUDEM), organized by a Canadian religious order and supported by Canada's technical assistance agency (CIDA). CRUDEM has a limited equipment pool and most work is done by hand. An average of 10 km of feeder roads has been up- graded annually to all-weather standards, totalling 75 km in the Plaine du Nord area. Work quality is uneven and the road elevation above surrounding areas is generally insufficient, but the overall result is acceptable in view of CRUDEM's limited construction capacity. Maintenance of the completed roads is being done mostly by hand, assisted by CRUDEM's single grader. Construc- tion is expected to continue during the coming years at the present rate, providing a useful supplement to the road construction that would be done under the project. The Project: Construction of 66.5 km of Feeder Roads and about 27 km of Farm Access Roads 8. With respect to transport infrastructure, the project area contains two distinct regions: the lowlands of the Plaine du Nord and the high plateau south of St. Raphael. The lowlands would have relatively easy access to Cap- Haitien and its agro-industrial plants, provided that all-weather feeder roads were constructed to connect to the main highways of the region. The St. Raphael plateau is served by only one access road. Feeder roads in the St. Raphael Plateau are relatively satisfactory, although primitive, due to the greater permeability of the plateau soils (some of which are of volcanic origin) and consequent lesser dependence on drainaged structures and ditches. 9. To sustain the movement of agricultural produce envisaged in the project area, it is estimated that 180 km of feeder roads and 60 km of all- weather primary/secondary roads would be required. Of this, only about 75 km of feeder roads, built by CRUDEM, and about 20 km of paved road from Cap- Haitien to Milot (and, later in 1976, the 20 km of main road from Cap-Haitien to Limbe) would be satisfactory to meet the immediate needs of the project. ANNEX 10 Page 3 10. The transport requirements of the project are, therefore, in descending order of priority: (a) an all-weather link from the existing paved road, Cap-Haitien-Grande Riviere du Nord, to St. Raphael (30 km); (b) a network comprising about 53.5 km of feeder roads in the lowlands of the Plaine du Nord; and (c) feeder roads (13 km) and access roads (27 km) to the hydraulic works in the St. Raphael Plateau. The link from Grande Riviere du Nord to St. Raphael is included in a second USAID highway project, signed on June 29, 1976, comprising a US$5 million loan and a Government contribution of US$1.6 million for rehabilitating 940 km of roads to all-weather feeder road standards. The first section from Grande Riviere du Nord to Dondon (about 15 km) has already been completed and work is proceeding on the remaining section. The links to be financed under the project cover points (b) and (c) above and are listed in Table 1. Design 11. There are no generally established road standards in Haiti; most design in recent years is derived from French and US practice. With assis- tance from USAID, the TPTC has, however, developed standards for feeder roads, and design for them under the project (Table 2) would adhere to such guidelines. The TPTC Cap-Haitien Regional Service, aided by a technical assistant recruited under the project, would do the design work. Access roads to farms and dam sites would be simple cleared tracks, 4 m wide with a suitable cover (about 15 cm thick) but little or no earthworks. Construction 12. There are no contractors in the area capable of undertaking the project works, and overseas firms are unlikely to be interested due to the small size of the project. Construction of feeder roads and access roads to farms and dam sites would therefore be done by the TPTC Regional Service in Cap-Haitien on force account. Its manpower and equipment facilities are presently very limited, and, although construction is envisaged to be carried out by hand labor wherever feasible (for ditches, off-shoot drains and calverts), additional equipment and technical assistance would be required to cope with clearing and earthworks. The necessary equipment and a limited amount of work- shop tools for equipment maintenance would be purchased under the project (Table 3). Costs and phasing of expenditures are in Tables 4 and 5. Construction Supervision 13. Supervision of all construction work would be done by the TPTC Regional Service under the guidance of a technical assistant provided under the project (para 15). ANNEX 10 Page 4 Maintenance 14. SEPRRN would be responsible for maintenance of all roads constructed under the project. The SEPRRN Regional Service is presently being established (para 6) and operations in the area have begun. Average maintenance cost of the feeder roads is tentatively estimated at US$600 per km annually, with total maintenance costs for all the roads constructed under the project expected to be about $35,000 per annum. Maintenance costs for all roads in the project area would be about $150,000 annually. In the intermediate period, until SEPRRN is fully operational, CRUDEM would continue to maintain the feeder roads they construct. Technical Assistance and Consulting Services 15. To implement road design, construction and supervision, the TPTC would require an estimated four man-years of technical assistance to carry out feeder road alignment selection and to direct TPTC construction work in the field. This assistance would be provided by an expert who would train the TPTC district staff in feeder road construction. Ample need for further feeder road construction outside the project area but within the Cap-Haitien TPTC district would remain after project completion to warrant the retention in the region of equipment and engineering talent acquired under the project. October 6, 1976 ANNEX 10 Table l HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Road Construction and Maintenance Nam.e and Length of Roads to be Constructed Length Feeder Roads km Acul du Nord-Cagnette 3.2 Acul du Nord-Duty 5.8 Acul du Nord-Plaine du Nord 5.0 Plaine du Nord-Morne Rouge 3.2 Plaine du Nord-Grison Garde 7.2 Grison Garde-Robillard 3.7 Robillard-Haut du Cap 13.0 Quartier Morin-Ca Douche 8.0 Limonade-Fourrier 4.4 St. Raphael towards Pignon 13.0 Sub-total 66.5 Access Roads to Dam Sites 7.0 Farm Access Roads 20.0 Total 93-5 Source: FAO/CP Project Preparation Report and mission estimates, April 1976. July 12, 1976 ANNEX 10 Table 2 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Road Construction and Maintenance Proposed Feeder Road Standards Flat Hilly/Mountainous Width of carriageway h m 4 m Width of shoulders 0.5 m none Maximum gradient 8% 12% Minimum horizontal curve radius 60 m 30 m Passing sight distances not considered Surface material improved earth gravel or river gravel Design axle load 9 t 9 t July 12, 1976 ANNEX 10 Table 3 HAITI RURAL DEVELOPMET PROJECT IN THE NORTHERN DEPARTMENT Road Construction and Maintenance Cost of Ecluipment Fleet for Feeder Road Construction Cost (G) 1 Bulldozer,140 hp 300,000 1 Grader,120 hp 225,000 1 'ater truck 90,000 1 Steel roller 40o,000 1 Hand compactor 5,000 1 Concrete mixer 50,000 1 Loader 150,000 5 Dump trucks 5°0,°00 h Liaison vehicles 130,000 Sub- total 1,490,000 Spare parts,20% 300,000 Workshop tools 60,000 Total 1,850,000 July 12, 1976 AÂEI 10 Table 4 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Road Construction and Maintenance Cost per km Feeder Road Units Unit Cost Total Cost Works Component Unit per km (G) (G) Recanstruction of subgrade m2 5,200 1.10 5,720 Excavate,haul and place selected materiau / m 2,700 10.75 29,025 Clearing _ - 500 Constructicn and rectificatian of ditches m 2,500 6.oo 15,000 Paved fards m2 120 5.0 600 Culverts no. 1.h 4.500 6.300 57,545 rounded: 57,600 1/ 50% light ripping, average haul 12 km. Note: Excluding equipment depreciation. July 12, 1976 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTH3RN DEPARTMENT Road Construction and Maintenance Summary Coats and PhasinD of Expenditures (G'OOO) Construction Cost ---------------------resr------------------------- Foreign 1 2 3 4 5-20 1/ Total Loeal Foreign Exchange Four-m feeder road (66.5 km) 380 1,150 1.530 770 3,830 1,532 2,298 60 Farm access road (20 km) - ¶00 100 - 200 60 140 70 Dam sites access road (7 trm) - - 70 - 70 20 50 70 Road construction and maintenance equipment 1,850 - - - 1,850 - 1,850 100 Physical contingencies2/ 299 375 510 231 1.415 566 849 60 Sub-total 2.529 1.625 2-210 1001 7, I- 2,178 5,187 70 Compensation for Land 3/ 25 25 10 60 60 - - Road Maintenance - 18 70 140 (175) 228 182 46 20 Pnysical contingencies (10%) - 2 7 14 ( 18) 23 17 6 25 Sub-total - 20 77 154 (193) 251 199 52 21 Total 2,529 1,670 2,312 1,165 (193) 7,676 2,437 5,239 68 1/ Consultant's services are allocated to ODN (Annex 12, Table 2). 2/ 30% on civil works and 10% on equipment. 3/ For land needed for road construction; G 5,000 per ha. June 14, 1976 ANNEX 11 Page 1 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Potable Water Supply Existing Potable Water Supply 1. While 55% of the urban population of Haiti was served by public potable water systems in 1973, only 2.3% of the rural population had such service. In the Northern Department, the City of Cap-Haitien is served by a potable water system (groundwater development) which reaches less than 1,000 of the more than 5,000 houses of the city, and the service was reduced during the last few years, mainly because of the financial deficit of the Regional Hydraulic Service. There are only two public systems in the rural area of the Northern Department, one in Milot serving about 5,000 persons the other in St. Raphael, providing water through two public faucets to about 50 households. The majority of the population obtains drinking water from shallow, hand-dug, open wells, from rivers and a few springs in the foothills. The wells, with a water table about 1.50 to 2.00 m below ground level (about 2.00 to 2.50 m during the dry season), are unprotected and mostly contaminated, resulting in widespread intestinal diseases. Only a few wells that were built by missionaries are well protected and equipped with hand pumps. Proposed Expanded Potable Water Supply 2. The project would provide for the construction of up to 400 hand-dug wells and up to five small potable water system to improve general hygienic conditions and to reduce widespread intestinal diseases substantially. In addition, the present need to carry water over large distances would be elimi- nated for about 3,000 households. 3. Wells would be 2- to 10-m deep with a 1-m diameter. Reinforced concrete rings or brick walls would be used for their lining and they would be disinfected, protected with reinforced concrete covers and equipped with hand pumps. The small systems would include spring catchments, a small concrete water reservoir, and plastic pipes leading to three to five standpipes. About 20 persons would benefit from each well, while each small system would serve an estimated 2,500 persons. As a result, a total of about 20,000 persons would be provided with potable water, as shown below: Total Number of Number Persons Served Small Systems 5 12,500 Shallow wells 400 8,000 20,500 ANNEX 11 Page 2 4. While the wells would be built primarily to serve the population with adequate drinking water, the project management would make all efforts to encourage use of the wells for irrigating gardens and small plots in the immediate neighborhood of the dwellings. Various ways of exploiting the groundwater resource such as hand and small gasoline pumps and simple water wheels would be experimented with. Execution of Works 5. Organisme de Developpement du Nord (ODN) would be responsible for the preparation and supervision of project works, in cooperation with SHRH 1/ and COALEP 2/. The Rural Animation Service would promote the project among the rural population. SHRH and COALEP would be in charge of implementation works, assisted by ODN, which would provide vehicles, construction materials and pumps, determine the exact location of the wells, supervise their con- struction and be responsible for their disinfection, and install the pumps. The same agencies would design the small systems and be responsible for their construction, for which the project would supply the necessary materials. While the beneficiaries would contribute labor for excavation and other work that can be carried out by unskilled labor, SHRH and COALEP would provide technicians and skilled construction workers. Operation and Maintenance 6. The beneficiaries would be responsible for operation and maintenance of the water supply systems. However, because of their lack of experience they would have to rely on outside assistance for maintenance of the systems. The only organizations in the Northern Department with experience in maintaining wells and potable water systems are SHRH in Cap-Haitien and the Rural Development Center of Milot (CRUDEM). 7. The project would therefore strengthen SHRH in Cap-Haitien through the provision of vehicles and equipment (Table 1) and two trained mechanics during project execution to allow them to carry out the necessary maintenance and repair of the small systems and the wells. SHRH would also carry out routine checks of the sanitary conditions of the wells and of their state of repair. A fee, to be determined by SHRH, COALEP and ODN, would be charged for these services. 1/ Service Hydraulique de la Republique d'Haiti, which is building water supply systems in towns. 2/ Cooperative pour l'Alimentation en Eau de la Population Rurale, the Government agency charged with building rural water supply systems. ANNEX 11 Page 3 Sewage Disposal 8. Sewerage systems do not exist in the rural areas of the Northern Department, but a US$6 million project of IDB 1/ is underway which provides for the construction of small water supply systems and latrines in various parts of the country. Since more than 1,000 latrines are to be built in Northern Haiti, the project does not include a sewage disposal component. The project management, however, would cooperate closely with the IDB project to assure that latrines were built according to adequate hygienic standards. October 6, 1976 1/ "Proyecto de Regionalizacion de Salud," for which the World Health Organi- zation (WHO) is executing agency (1975-1980). HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Potable Water Supply Investment and Maintenance Costs (G) ----------------------------------Project Year--------------------------- i 2 3 4 Total Unit Cost Cost No. Cost No. Cost No. CTSt No. Cost A. Shallow Wells-/ Lining and cover2/ 600 - - 200 120,000 200 120,000 - - 400 240,000 Hand pump 450 - 200 90,000 200 90,000 - - 400 180,000 Supervision and disinfection of well 100 - - 200 20,000 200 20.000 - - 400 4.0,000 Sub- total 230,000 230,000 460,000 1/ 3/ B. Small Potable Water Systems 25,000 - - 2 50.000 3 75,000 - - 5 125.000 C. General Construction Costs Equipment Four-wheel drive vehicle-/ 30,000 2 60,000 - - - - - - 2 60,000 Portable pump 2,500 5 12,500 5 12,500 - - - - 10 25,000 Tools, workshop equipment and spare parts - - 10,000 - 5,000 - - - - - 15,000 Sub-total 82.500 17.500 100.000 Salaries Mechanic 5,000 - - 2 10,000 2 10,000 2 10,000 - 30,000 Driver 5,000 2 10.000 2 10.000 2 10,000 2 10.000 - 40.000 Sub- total 10,000 20,000 20,000 20,000 70.000 Running Costs Vehicles and pumps - - 10,000 - 17,000 - 17,000 - 10,000 - 54,000 Miscellaneous - 10.000 - 15,000 15,000 - 10.000 - 50.000 Sub-total 20.000 32.000 32,000 20.000 104.000 r_ Maintenance-!/ Physical contingencie6 - - 22,500 - 74,900 - 78,900 - 8.000 - 184.300 Total 135,000 424,400 435,900 48.000 1.043.300 I/ Excavation work to be carried out free of charge by beneficiaries. > 2/ One-m-wide reinforced prefabricated concrete ringsfcr brick walls with reinforced concrete cover. 3/ Includes catchment of springs, small concrete reservoir, plastic pipes to village and three to four hydrants. a x L/ Long-wheel base pickup. 5/ To be carried out by SHRH-Cap-Haitien, starting PY5; G 40,000 per year for salaries of two mechanics/drivers, and related transport costs, spare parts, and such. 6/ 20% of shallow wells, equipment, salaries and running costs, and 30% of small water supply systems. July 8, 1976 ANNEX 12 Table 1 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Organisme de Developpement du Nord (ODN) - Headquarters Investment Costs (G) Project lear Unit Cost No. Co0t Buildings and Construction Offices,-/ 125,000 1 125,000 Staff house4/ 75,O00 8 600,000 Staff house/ 60,000 1 60,000 Storej/ 37,500 1 37,500 Elaboration of construction plans, bidding documents and supervision of construction works_- 123,400 Furniture for offices and houses6/ - 197,500 Sub-total 1,143,400 Vehicles and Equipment Staff cari 8/ 34,000 1 34,000 Four-wheel drive vehicle- 35,000 1 35,000 Four-wheel drive vehicle_/ 30,000 1 30,000 Four-wheel drive vehicle 10/ 20,000 1 20,000 Lorry - 7 tons 50,000 1 50,000 Motorbike11' 4,000 2 8,000 Calculator 500 5 2,500 Typewriter 1,200 6 7,200 Photocopy machine 3,000 1 3,000 Miscellaneous equinment 15,000 Sub-total 204, 700 Total Investment Costs 1 ,348,100 T7 250 m2at G 500/m22for 10 offices, one meeting room and toilets. 2/ 150 m2 at G 500/m for project senior staff. 3/ 120 m2 at G 500/m2 for project medium-level staff. 4/ 150 m2 at G 250/m2. 7/ 15% of construction costs. 7/ G 25,000 for offices; G 20,000 per senior staff house; and G 12,500 per medium-level staff house. 7/ Peugeot 504 station wagon or equivalent. É/ Long-wheel base - station wagon. 9/ Long-wheel base - pickup. 10/ Short-wheel base - Isuzu or equivalent. 11/ 100 cc. July 2, 1976 hAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT ANNEX 12 Table 2 Organisme de Developpement du Nord (ODN) - Headguarters Operating Costs (G) --------------------------------------------------- Years- ------------------------------------- I 2 3 4 5-20 Unit Cost No. Cost No. Cost o Coat No. Cost No. Cost Salaries Director 32,000 1 32,000 1 32,000 1 32,000 1 32,000 1 32,000 Deputy director2/ 300,000 1 300,000 1 300,000 1 300,000 1 300,000 1 25,000 Irrigation specialist2/ 275,000 1 275,000 1 275,000 1 275,000 1 275,000 1 21,800 Groundwater specialist-/ 275,000 1 275,000 1 275,000 1 275,000 1 275,000 Agronomist2/ 275,000 1 275,000 1 275,000 1 275,000 1 275,000 1 21,600 Credit/m.rketing specialisti/ 275,000 1 275,000 1 275,000 1 275,000 1 275,000 - Road construction engineer 2.1 275,000 1 275,000 1 275,000 1 275,000 l 275,000 Comm-unty deveiopment spccialist i 21,800 1 21,800 1 21,800 1 21,800 1 21,800 1 21,800 Chief accountant-/ 18,500 1 1&,500 1 18,500 1 18,500 1 18,500 1 18,501J Accoontanti/ il 13,500 1 13,500 1 13,500 1 13,500 1 13,500 - Secretary (bilisg-l and shorthand)- 11,800 2 23,600 2 23,600 2 23,600 2 23,600 1 11,800' Secretar 1< 8,400 4 33,600 4 33,600 4 33,600 4 33,600 4 33,60î. Mechansc-. 5,000 1 5,000 1 5,000 1 5,000 1 5,000 - - Driveri/ 5,000 5 25,000 5 25,000 5 25,000 5 25,000 3 15,000 Storekeepe.4I 5,000 1 5 000 1 5,000 I 5,000 1 5,000 1 5,000 Mes enger- 3,800 1 3,800 1 3.800 1 3 800 1 3,800 1 3.80t Sub-total 1.856,800 1.856.800 I P56,800 1.856,800 _°10°O0 Consultats for Project Implementatio and Preparation of a Second-Phase Pro ject_ Irrigation drainage specialsts4/ 35,000 9 315,000 3 105,000 6 210,000 - - - -- Road construction engineer5. 35,000 2 70,000 7 70,000 2 70,000 - - - Sugacvcne specialists6/ 35,000 - - 1 35,000 1 35,000 1. 35,000 Others 35.000 1 .5,000 2 70,000 3 105.000 __ 2_ 70,000 _ Sob-to'ta1 - 12 420.000 p 280.000 12 420,000 3 105.000 Maintenance Buildings and constructions7/ - - - - 57,200 - 57,200_ 57.200 - 57.200 Running Costs of Vehicles Staff car8/ 8,000 1 8,000 1 8,000 1 8,000 1 8,000 1 8,000 Four-whnel drive vehicle9/ 9,000 2 18,000 2 18,000 2 18,000 2 18,000 1 9,000 Four-wheel drive vehicle'-L/ 6,000 1 6,000 1 6,000 1 6,000 1 6,000 1 6,000 Lorrv - 7 ton 1l/ 15,000 1 15,000 1 15,000 1 15,000 1 15,000 - Motorbikel2/ 900 2 1.800 2 1,800 2 1.800 2 1.800 1 900 Sob-total - - 48,800 - 48,800 - 48 800__ - 48,800 - 23.900 Replacernent VehI le 1i3/ - - - - - - - 1 35,000 Motovoîke - - --- 1 4000 - __ Slb-total __39.000 Other Expenses Office ospe-ses - - 15,000 - 15,000 - 15,000 - 15,000 - 5,000 Return flight tickets (Cap- Haitien/Port-au-Prince) 200 20 4,000 20 4,000 20 4,000 20 4,000 5 1,000 Daily allowances for Port-au-Prince- 153 60 9,000 60 9,000 60 9,000 60 9,000 15 2,250 Renting of otaff housesIL/ 2,500 60 150,000 - - - - - - - - Electricity and sater - - 10,000 - 30,000 - 30,000 - 30,000 - 20,000 Auditing - - 15,000 - 25,000 - 25,000 - 25,000 - 10,000 Training of project staff abroad- / 50,000 - 1 50,000 2 100,000 1 50,000 - Miscellaneous - - 20 .0 - 20.000 - 20,000 - 20,000 - 5,000 Sub-total 223.000 153.000__ 203,000 153.000 43,_50 Total Ooerating Costs 2,548,600 2,395,800 2,585,800 2,259.800 334.450 1/ Includes family, medical, leave, retirement and other allowances. 2/ Includes cost of international air travel, and f amily, aedical, leave, retirement and other allowances. 3/ G 35,000 per month; includes international air travel, subsistence and fee. / See Annex 2. 5/ See Annex 10. 6/ See Annex 4. 7/ 5°. of conscruction costs beginning year following construction. 8/ 20,000 km per year at G 0.4 per km, for fuel, lubricants, apare parts, repair and insurance. 9/ 15,000 km per year at G 0.6 per km for fuel, lubricants, spare parts, repair and insurance. 10/ 15,000 km per year at G 0.4 pet km, for fuel, lubricants, spare parts, repair and insurance. 11/ 15,000 km per year at G 1.00 per km for fuel, lubricants, spare parts, repair and insurance. 12/ G 900 per year for fuel, lubricants, spare parts, repair and insurance. 13/ One long -wheel base - station wagon. 14/ G 150 per day for senior staff. 15/ G 2,500 per month. 16/ One-year fellowship for Haitian OON - staff in agricultural economics agricultural credit, irrigation and other project-related subjects, which includes living allowances, transport and tuition costs. July 2, 1976 RAITI RDdAL DEVELOPlfdNI PRQJECT IN TIE NORTdIRRUI DEPARTMRNi AOiNEX 12 Organism de Deneîorre'uent du Nsrd CODN) - Oradsuarte Initial Perlent Iei etaeien SohedoIr gespoibi … … … … … ……----------_-_-__ Months _____ ------------------------------------- HAit Pue initier Authoritv 1 2 3 4 5 6 7 8 9 10 il 22 13 14 15 Pro roit Adminietrarior Appoint ODN Diretor DARNDR * Recruit and appoint ODN D Di " ODN ----------- Recroted eppoine rgsideo-sn-Itasts. ODNse------- Recrois nd ppoint ODR' retion eaff ODN --- Etpiy sot-t nouitat ------------ Rent d quip officeoed eid tff daelli . ODN ----------P-------------------l--------- ------- Oreparr ad iVite bide 0cr office b.ildinge and staff bouses, vaRioles snd encipeent; rogiosta IC bid., diacoce cam, obtait IDA -pprei svd pl-c ot, csodr ODN --------_----_------------_----------------_----------------------_-----_---___---------------_______-- Acluirs er f_o strc--ur-----is--e-- Prepgpeeandcerep outcteainingcrseaeinoegrcicutorsi DRD ________________r______________ credit, rotent ion *nd rurai antirtior ODN/DARNDR ------ -- Costeruce offi-e buildingt and -eatf toges coN ecrsitad appoint f SICR --------------------------- Ertabi it înfji odfiore 02CR ------ - Carry outoadacerai asd tapagraphic -ur.eY.; prapate deeign and teohrieal apecificaeions SICR/SURH/ODN ---------------------------------------- ------------------------------ ------------ Prepere.asd invite bids f-o ahicli.. eqoipe..t and corsarruccie sageeRgial eIlisaee lU bide, di-cuse tberme abesin COu appran anA pie goders SICR/ODN --- -- Acquire "lan fo srutu DARNDR -------------------------------- --------------------------------------- ---------------------------------- ------~- Carry eue civi1 sorbe sartetig in the Quartier Marie SICR/WPP/ODN ------------------------------------------------------------------------------------ Arrange ig ...enane fscilit,ie for nebit and aqoipIent SEPREN ----------l---------i------------ Acricuitrcel Credit Recruit atd appoint -aff BCA/ODR Train steff BCA/ODN Esteblish field offices .nd ordre -nrki.o and Cranopore tacilitio- BCA/ODN ------------------------------------------- Oriasize SACs îod miitOe farn plan preperetior and lendîsg iCARNOOtC Prepare progra- farrergaianior of BCA -A- -R/C- - - ---------- Tri.ls agd lEnroord Seed Pre etiot Prepere Aetailedplae andorder e- uipe-n- ODN _ _ _ _ Cer0y out tri.le ced . md d prsductin ODNi/SVA/CRUDRM/ CO1dse, fertars --------------------- --------- --------------- itansieon termicre Racruir and appoint s-ff SAR/SVA/ODN -----------------------_------ Trien setff SAR/SVA/ODN - etablimh field a.iNA he asd order osrkit n d SAR/SVA/ODN anA--------------- Protide -.eo. ion anI rurel anicaaiont serciee SAR/SVA/ODN ------- ------------------------------------------- AciNAl Reaith Rerruie APd appaisr staff SNV/$E/ODN- Ratablisb field off ice end order uarkisg *d reesepert factiietei SMV5R/SE/OOE -- --------- Providr animal brair MrVla 06vSE/OD Merkene aod Aba-rsir Prepare plna and bids asd plac- coMtnaceas/rdere Nunioipalitier/ODN ------------------------------------------ Uerry aie civil voreke Mluicbpeîiriea/RON___-___________________________ Recrnir tad ppint rtff TPTC/ODN ----------------------------- Per.par drslgr, egîbsisel epecificcrtrm -mcd aligeaat of rsade ced bea.is kDA pprang TPTC/ODN- Praparae d iscite bide fer nebiolge, "q"îp-st -nd constrtio sien atri enalueeiC bide, d., TPTC/ODN ---d-e--- ARquer, I;nd e arrures TPTC ------------------------------------------ CUrrp sut oivil gorkb OPTCAWP/ON ------- Arrangr riaisecenie tetilicias for ocmi ses endsequirreno rqsipmrit SEFRkS LPot.bl. W.te eiecrslsd eppeist -saff ShRH/ODN --- DOgarNine .sestios of velie and .aIl bare- eupply e enrsa a Id prepar- terbeCoal sprcificariose SHRd/UCALEP/ODN Order oguicies, eqoipresen esd rangtrucfisn n teri-ls SHRH/ODN Carry O.k clvii sirka SHRH/ODN tlosioinoecand tEaluatian Recrîit eed appoins etaff ced arranfe fer effice And orceep-et facilitire DARNDR ----- 1/ Coerm bhe sais iniil projecot - eotiv ef te br cerrird sut after Beard presentatRos snd ass ig proecIt efleatiseme fine mnthe hbereafter. 12!,O/76 ANNEX 13 Page 1 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Appointment of Project Staff and Qualifications for Project Senior Staff Director 1. A Haitian national, experienced in agricultural economics and/or agricultural production, or a production specialist with formal training in agronomy would head the Organisme de Developpement du Nord (ODN). Experi- ence as a senior manager, some of it in Haiti, is also necessary. He must command respect and have an understanding of the rural population of Haiti and should be conversant in English to facilitate his exchange with the international staff and consultants. He would be required to direct, with the assistance of his deputy, an interdisciplinary team of Haitian and expat- riate staff; to discuss and establish liaison with Governnent agencies and international organizations; to assume responsibility for issuing quarterly and annual reports; to discuss progress of the project with the Project Board and with the Regional Coordinating Committee; and to be responsible for a US$3 million annual budget. Deputy Director 2. The Deputy Director should be a graduate in agriculture, capable of providing technical and administrative support to the Director, and, when necessary, of assuming full responsiblity for the work of an inter- disciplinary development team. He should have at least 10 years' experience in agriculture in tropical/sub-tropical areas. Previous responsbility for development programs, including agricultural extension, credit and training, would be highly desirable. He should be conversant in French and English. In addition to bearing over-all management responsibility for coordinating project components, he would also be responsible for orienting extension activities in the project area, in close coordination with the regional Agri- cultural Extension Service (SVA) of the Department of Agriculture, Natural Resources and Rural Development (DARNDR), and assist the Director in the preparation of a follow-up project. Surface Water Irrigation Specialist 3. The surface water irrigation specialist should be a graduate in agricultural or civil engineering, specialized in surface water irrigation. He should have at least five years' experience in the design and construction of gravity irrigation systems and in the training of farmers in water manage- ment. Part of his experience should be in developing countries in tropical or sub-tropical areas and in projects dealing with small farmers. He should be conversant in French. He would be required to provide technical advice and assistance to the regional Irrigation and River Control Service (SICR) ANNEX 13 Page 2 and participate in all activities pertaining to the surface irrigation compo- nent of the project, including detailed surveys required for preparing quantity estimates; topographic surveys for land leveling; modification of the existing gravity systems; final design of the extension of the Quartier Morin irrigation district; and construction supervision and in-service training of local staff. In addition, he would participate in studies of further extension of irrigation in the Northern Department and the rehabili- tation-of the swamp area near Cap-Haitien. Groundwater Irrigation Specialist 4. The groundwater irrigation specialist should be a graduate in agricultural or civil engineering, specialized in groundwater development. He should have at least five years' experience in the design and construction of deep-well irrigation systems and in the training of farmers in water management. Part of his experience should be in developing countries in tropical or sub-tropical areas and in projects dealing with small farmers. He should be conversant in French. He would provide technical advice and assistance to the SICR and the regional Hydraulics Service (SHRH) in matters pertaining to groundwater irrigation and participate in detailed surveys required for preparing quantity estimates; design of the well-irrigation system at Quartier Morin; construction and supervision of well-irrigation systems; and in-service training of local staff related to groundwater irriga- tion. In addition, he would participate in studies related to extension of well irrigation and water supply throughout the project area and in the rehabilitation of the swamp area near Cap-Haitien. Agronomist 5. The agronomist should be a graduate in agronomy with at least five years' experience in tropical and sub-tropical irrigated and rainfed crops, especially the food crops common to the project area. He should be familiar with agricultural trials, seed production and training of extension agents. Part of his experience should be in developing countries and in projects dealing with small farmers. He should be conversant in French. He would be required to provide professional advice and assistance in all matters per- taining to agricultural production, concentrating in identifying research needs, carrying out programs of field trials and establishing liaison with other research workers in the country. He would actively participate in the program for improved seed production and provide technical instruction to extension staff during training programs. Marketing/Agricultural Credit Specialist 6. The marketing/agricultural credit specialist should be a graduate in economic sciences or agricultural economics, with at least five years' experience in marketing of tropical or sub-tropical agricultural products and in extending agricultural credit, preferably to small farmers in developing ANNEX 13 Page 3 countries. He should be conversant in French. He would work in close co- ordination with the regional office of the Bureau of Agricultural Credit (BCA) to advise, train and and assist its staff in the management of the agricul- tural credit program and actively participate in efforts to introduce, improve and expand agricultural credit throughout the project area. In addi- tion, he would participate in studies of marketing constraints to agricul- tural products in the project area and recommend changes in cropping patterns in response to variations of demand. Road Construction Engineer 7. The road construction engineer should be a graduate in highway or civil engineering with at least 10 years' experience in construction and maintenance of roads and highways, preferably under tropical and sub-tropical conditions. He should be conversant in French. The scope of his work would essentially encompass construction and maintenance of farm access and feeder roads on force account and provision of technical advice to the regional Public Works Service. Community Development Officer 8. The community development officer should be a graduate in a social science or in education or a professional with at least five years' experience as a rural extension officer. The essential requirement would be ability to collect and interpret socioeconomic data related to the rural population and to communicate with small farmers in discussions of the various project components. Knowledge of the theory and practice of teaching functional literacy would be desirable. He should be prepared to undertake long periods of field work, and should be conversant in French and preferably in Creole. He would participate in interdisciplinary surveys, collect census data, evaluate social organizations and attitudes and collaborate with the project's Monitor- ing and Evaluation Unit in evaluation of key indicators selected for the project. He would provide liaison with the Agricultural Extension and Rural Animation Services and with Community Councils in the project area. Chief Accountant 9. The chief accountant should be a graduate in accountancy, preferably a Certified Accountant, with at least five years' experience in program and budget, payroll and general accountancy of a medium to large size enter- prise. He should be conversant in French. He would prepare reports on the financial status of the project to be submitted to the Director of ODN, the Project Board and the Regional Coordinating Committee and comply with the financial reporting requirements and procedures of the Haitian Government and of IDA. October 6, 1976 ANNEX 13 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Appointment of Project Staff and Qualifications for Senior Staff Schedule A Timeframe for the Appointment of Project Staff and Number Requiredt, Statua at End of Effective Date July 1, 1977 July 1, 1978 Disbursement Period ODNI/- Director 1 1 Deputy Director 1 1 Irrigation Specialist 1 1 Groundwater Specialist 1 Agronomist 1 1 Credit/Marketing Specialist 1 Road Construction Specialist 1 Community Development Specialist 1 1 Chief Accountant 1 1 Accountant 1 Agricultural Technician 1 Support Staff 4 13 10 Sub-total 6 22 16 SICR/3 Irrigation Engineer 4 1 Assistant Engineer 3 2 Surveyor 6 Accountant 3 3 Water Charge Collector 3 Support Staff 19 4 60 Sub-total 35 4 69 BCA- Agricultural Economist 1 1 Marketing Officer 1 1 Credit Extension Officer 3 3 Accountant i 1 Credii Extension Agent 5 2 4 Support Staff 3 3 Sub-total 14 2 13 SVA& Extension Officer 3 1 Extension Ment 20 10 10 Support Staff 1 1 Sub-total 24 10 12 SAR/6 Animation Agent 5 1 3 Support Staff 1 1 Sub-total 6 1 4 Veterinary Assistant 2 2 TPTC/8 Support Staff 15 5 6 SHRH/9 Support Staff 2 4 3 Total 6 120 26 125 I/ The number of staff shown for the period teginning July 1, 1978, is in addition to the number of staff shown for July 1, 1977 and for the effective date. The number of staff shown at the end of the diabursement Period is an estimate of the staff necessary to maintain the required level of services in the project area. 2/ Annex 12, Table 2. 3/ Annex 2, Table 3 and Table 6. 4/ Annex 3, Table 1. 5/ Annex 5. 6/ Annex 6. / Annex 7. 8/ Annex 10. 9/ Annex 11. December 2, 1976 ANNEX 14 Page 1 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Project Monitoring and Evaluation Objectives 1. Project monitoring and evaluation would be carried out by the Evaluation and Control Unit within the Agricultural Planning Unit of the Department of Agriculture, Natural Resources and Rural Development (DARNDR), which would produce feedback information for decision-making by both the Project Board, the "Organisme de Developpement du Nord" (ODN) and the Regional Coordinating Committee (Chart). The Unit's main responsibilities would be to: (a) determine the key indicators reflecting the impact of the project on the quality of rural life in the project area; (b) measure the effectiveness and efficiency of project activities in achieving the objectives of the project in its first phase; (c) submit proposals to project management on ways to make neces- sary adjustments to project goals and assumptions involved in the project's design; (d) provide the ODN and the Project Board with an independent evaluation of the physical, social and financial progress of the project and an identification of major project constraints; and (e) assess the extent to which the project could be expanded to other parts of the Northern Department or replicated else- where in Haiti. Monitoring and Evaluation Responsibility 2. Under the project, the Evaluation and Control Unit of DARNDR would be strengthened by a resident consultant with experience in project monitoring and evaluation, supported by a staff of about five (Table 1). He would be assisted by regional Government staff in the data collection necessary. The qualifications of the specialist would be subject to Government approval in consultation with IDA. The Unit would prepare a summary analysis report on the project at least once each year, plus such other special reports to ODN and/or the Project Board as needed. The summary report would be reviewed with the project management and subsequently be made available to Government and IDA, as well as to the Project Board and the Regional Coordinating Committee. At the end of project implementation, the Unit would prepare a final summary ANNEX 14 Page 2 project evaluation, including specific recommendations for the second phase rural development project. In addition to monitoring and evaluating the pro- posed project, the above resident consultant would assist the DARNDR Evalua- tion and Control Unit to train its staff, to develop monitoring and evaluation methods for rural projects in Haiti and to expand the Unit's activities nationwide. 3. On-going evaluation during project disbursement should aim at producing revised projections of project effects and impact. Ex-post evalua- tions, scheduled after project disbursement, should aim at social and econo- mic assessment of all project effects and ultimate project impact, including an assessment of the original objectives. In this way, both on-going and ex-post evaluations would influence future planning of rural development projects. Project Key Indicators 4. The following indicators, which focus on the most crucial factors contributing to the success of the project, would be observed in.the monitor- ing process: (a) changes in incomes of participants, particularly members of the Agricultural Credit Societies (SACs); (b) changes in volume and value of production arising from improved agricultural practices as a result of extension efforts and from double cropping resulting from application of gravity and well irrigation; (c) stabilization of prices for agricultural products resulting from improved storage facilities; (d) changes in economic and social indicators such as patterns of consumption and spending, participation in education and health prôgrams, acceptance and implementation of extension recommendations, and other measures of human vell-being in the project area; (e) changes in land tenure and land use; (f) improvement in rural cooperation through increased numbers of SACs or other grouping of farmers; (g) improvements in health conditions through provision of water supplies; (h) increased mobility of people and farm products resulting from an improved road network in the project area; and (i) increased support by the project area population of a follow-up rural development project. ANNEX 14 Page 3 5. Precise types of measurements to be made and methods of data collec- tion and analyses would be developed by the DARNDR Evaluation and Control Unit. Some of the data needed would be generated by ODN records and other data would be collected by the Unit from direct surveys conducted by is staff or from public and private agencies operating in the project area or in other parts of the country. During year 1, the Unit would prepare detailed terms of reference and a timetable for completion of the monitoring and evaluation task, which would be reviewed by the ODN and the Project Board and submitted to IDA for approval no later than one year after the signing of the Credit. Table 1 gives estimated costs as to the strengthening of the DARNDR Evaluation and Control Unit. Project Design Summary 6. A "Project Design Summary and Evaluation Framework" is shown in Table 2. The vertical organization of the chart presents the hierarchy of objectives and characterizes the project as a set of linked hypothesis, fostering the analytical sorting of evidence that will be required for the purpose of evaluation. Futhermore, for each level in the hierarchy of objec- tives, indicators have been specified that will allow actual results to be measured. Similarly, for each hierarchy of objectives, specific mechanisms are identified through which accomplishment of project objectives can be verified. The fourth colunn in Table 2 lists some critical assumptions, some of which are project risks, affecting the success or failure of the project components. These assumptions can influence the extent to which project objectives would be achieved. December 6, 1976 HAITI RURAL DEVELOPMENT PROJECT IN TUE NORTHERN DEPARTNENT Costs of Project Monitoring and Evaluation (G) ---------------------------------------Project Year------------------------------------------ Unit 1 2 3 4 5-8 Cost No. Cost No. Cost No. Cost No. Cost No. Cost Investment Vehicles and Equipment Four-wheel drive vehiclel/ 20,000 - - 1 20,000 Calculator 500 - - 2 1,000 Typewriter 1,200 - - 2 2,400 Office furniture - - - - 7,500 Miscellaneous equipment - - - - 2,500 Total Investment Costs 33.400 Operating Costs Salaries Head of unit 275,000 - - 1 275,000 1 275,000 1 275,000 1 21,800 Agricultural Œconomist - - - 1 21,800 1 21,800 1 21,800 - - Sociologist - - - 1 21,800 1 21,800 1 21,800 1 21,800 Secretary - - - 1 8,400 1 8,400 1 8,400 1 8,400 Driver - - - _ 5000 1 5.000 1 5.000 1 5.000 Sub-total 332,000 332.000 332,000 57,000 Other Expenses Offices,21- Running costs of vehicle3/ 8,000 - - 1 8,000 1 8,000 1 8,000 1 8,000 Office expenses - - - - 6,000 - 6,000 - 6,000 - 3,000 Return flight ticket3 Cap-Haitien/Port- au-Prince 200 - i il 2,200 il 2,200 il 2,200 9 1,800 Daily allowances for Cap-Haicien - - - - 20,000 - 20,000 - 20,000 - 14,500 Miscellaneous - - - - 5,000 - 5,000 - 5,000 - 2.500 Sub-total 41,200 41,200 41,200 29,800 Total Operating Costs 373,200 373,200 373,200 86,800 1/ Short-wheel base - Isuzu or equivalent. 2/ Will be provided by DARNDR. _ 3/ 20,000 km per year at G 0.4 per km, for fuel. lubricanta, spare parts, repair and insurance. December 2, 1976 hAIT I RURAL DEVELOPMEhT PROJECT IN THE NORThENiS DEPARTMENT Prajeet Desigu Sse-ry -ed Evalution Pracessork KIflaRchT OP OBJECTIVES OBJECTIVELI VERIFIPBLE INDICATSMC Project Lnpact fesurn oA Àohieeent of Praiset lact Zeneficiartes M MERAiS OF VHAIPICATIOni cuTîCA ASSUhPT1oDS To ifprovo troditiosel ugrirultoral production jr 30,00 rural furilies of uhith 907i ere le abolute poverty Ojcives th. projeot urea oed raise living standards of tch (i.o. e bolet VS$87 pr oupit pst yo) ets rural population through a cn. prlehenssvn effort.- 1,001 urbue failles or 1 f th. projer t o th. qiai ty of rural lif r double *ipping8 au 85% of Quartier Morin Praleot Effeots Coditions Indiostinu Aohievese-t af Pro1ct Effectu in projest are. rera *nd 70% of St. Raphal aec. 1. Increcce ugriultural productioe -rd cake it Coeeumptiee - 30,000 rural failies uould bA ubls te incresee inca vuleerable te future drougbt. Uheir subuutueca consunption by 10 te 30%. 2. Redus utarabg losses sud provide possibility income - Annual oc.. iromes frotu egrieulturel acd livestock jeot ectiviries ij achieving proet objer- on 1,000 h.. fer -ismtrs to sal uhen prions are higher cttivities for 6,000 fueilire uould inors.se fra US$60 ti (2) Impiementanise of serei *ch_ ouid sub- Cnet dirnctly farer ba-.teu). US$150 pst ficlly. 3 ,e2)reeul eprIopsealsra ap ta taiysti- fb saiit -hruolud sed 3. Itressbs.o. n-ptin. Eup1oyet - Poiudler -eplay t of esi fnact; te cu ke npc-a aay d tjesteet t prejet o prodactile ethr eh. seid farmere cns 4. Providenons Poometitiroe recAdin aud euibelliyo- 2.k.m..a adetcee-dtpetothfkirlnd l ;t dts - he ft h-zrd 2of illi. 240 .y tou ofil. la.c 7 o ftb. o bj00i- anda ofupt.. lo rtedi.tb. artad -nd utraget meet ni toues. ~~~~~~~~170 permanet jobs during diebersemet pnnld; us.betvccdasptsa n rdcel ocsaic e rele 7,F-iitt C x-so ndill nat fIghe,15tn et theef,20tonb o pok tiond 24do f iff As« xtn owhc rtetcnbeepn.d*h olti. Buidin to ffectiv ..Ceper trans.port for ugietrlinputs ued 120 permanet jobstratr.atialdfcuts.Blin sEoiace output, Frdu.ti.. - 1. y- 6 -...l i.tr-ot.1 prd.~ti.. ..uld be 4. Pruvidn iedspaudet eVeIucti- physicel, hesion -esId requits tien byond the dis.- 6. lapreve g-eral hygienoi cssditione, rmd.cc 27,000 tees oU sugca...no 340 tees ni mains; 7f tee.. for u-raba; ced.idnsd ii suje pro jsctcathetin.j..tbr. tp~d u.isrsd ietctea dîn..asses dcrease if tons ai ri.e; 120 tan oU beans; tif tons ai bananas; 500 tons h-Ith busads. of pea; 240 tees of manioc; 75 tons ni tobuco..; 300 teen ni Markceting, resdit ccd graine tnrage F7.Pairasepi oncdimlntto o euna 55 tan. ni beof; 220 one ai p-rk; ced 240 too nfi ik. 5. A...e.ss etent te hbiob prajact a.v be eapasded ehasse. meulA 1ed te fetv other rural dnvelopeunt projaots. Ail incremersl praduction corth US$L militn . n..ally i 1976 te other parts fithe Nsrthere Depart-eot an price stubilieati-n le prsject crea *nd terme. eleher e in Raiti te eigifitcet is Irnses le f-rmers' tncoee Pro1ect Outeuts Magnitud' of OntCd -f 1 1Irrigated ara. aith se-fart developent. 1.1 2,000 ha in Qanrtier M ni ad 1ut00 ht i St Rsphael Stîffien (3) Clietlc randitione oc 30,000 be ef r-infed 1 2Deep - llQ 1r2 14 da 0p welb le S. R n C.suutt laond, it dacreasie trend in preeipitetin. 21. Sheptmlle 1.2ts 14 Assp t.1suils.. 2.1 Sbort-ter- marketing credite. 2.1 Additional tee te four -abth' etarge nf gr.ina. Agricultural cneo iet 2.2 Mediim-tere ievttnt eredit for simple greai 2.2 3- t 4-ton containers on endium-sised fon; 50-tee secînlegiet 57,000 sclhulders ced 3U medie-sise uterage taclîîs. iaag inr salecttîve ge...p. aIf l0 ACs, Reglinu1 Gnvereest Staff fermer -Iud.d trbngb iprs-d s..ed produc- 2.3 Mediu -teo isestet crsdit for farn ieprvomeeta. 3.1 in ddition to eristing rtri; plats, On trial plots orld Co nt ed vn r Piancna eren snd rr; -tdt, inc-..s. pradun tien. 3.1 Ieproved seed prsduction *nd upplied research and be esablished, cdding up te 3 hb; producti ni of peo vd cIvt *nd Fin n,d participati.n ln dastration sffortt s..d on 12 ha. onî sîoo Poad=tis a rec inle 24$000 rural Ili.. 3.2-4 Impromsd agriculcured ced vetsiarp corvicesa 3.2 One emistsio ugent for 200 farnte.h Esips $9 mai P uaniB 0u. 4. Improev t nf municipal crkta *n3 cid plete 3.3 Ove rural animation agent for eve c.o.. .... Otheon renevation if abattoir building. . 53.5 and feedr rous in Plaine du Nord; 13 kv of feeder Tetal $231,000, anor 3% nf prjee 5. zp ...~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~nt befars neieece Af tee yecr 5 -et fa-rer mold be chie te mrvsed e est ruaded ec6ering r4ads and 27 e ef f iv adasr i. Or. Raphp yl. predure thrIr s-e icprntvd s*cds. 6 iebanurmeet pnd. 6. 400 bnd-dug sell ced fi-e sl outre spply U ybtes Monitoring Officer muld ba fieceed by UNDP. b. Rorslpetbe Ratev dur u rpply. (5)(6) Maintenance nf rural itestructur. 7-1 Ornavice. de Dev_loppevt de Nord. 7.2 Monitoring *nd ivaluntîse lait. 7.2 Mu.i__ri_g_-d_Unir (7) Caliber nf prnject eca.gameat *nd regi-eal Pro.met Inouts/Activites uantity f IPtgce taff, epeclly qulity f rurl 1.1 Rhabil1itation ni irigatisi sysia. I. àess 2, Tables1- Ohurt-ter. eitee mcd faluc1eia Zta...aion. 1.2 Ext neies ef irrigation end draingSe cvanl systss. 2. Annx 3, Table 4 iede esinly objectiv 1, 2, ad 3, 1.3 On-fen devebuplcet. 3. enae 4,_, 6, and 7 y d sihlt-tru reeg org f 4. 1.4 Ceettutise 5f desp ails. 4. A.sser 9 e 2. Provision ef oredit. 35. Aner lU, Tebîrs 1-3 .e-nnMvtniacdUauto 3.1 AgrIcultors1 trials and s.ed prsduoti. 6. A_ 1Lo-ts Monitoring andll 3.2 Esicfarcemeet of cgrniulturtl s-tenion services 7. Anne.- 12, 13 au 14 coulA iaolude aiely bjcotives 4 ad 5. 3.3 Reiniercemeet of rural sni_ti carmines. 3.4 SttrngthsmiLg sf regiosl Vetrlnery p rvice. 4. Rehabilitation end improveneet nf mueicipe1 markets and abattoir. 5. Constructis af rosds. 6, Csetruetion ai rural potable mater cupply systeca 7.1 Plamleg, cosrdination, upervision cnd cdmisistra- tien f preject icpiectction. 7.2 Monitoring snd cvaluation. 1/ Th. rural developsten project'a stivities cu- plemeet niarts in dducatison and health i thA preojet acre and tAs imipat nf thr projeot nuet bA evalontid glebslly. ANX 1I b&ITI RURAL DEvEL0PMENT pRojOCT IN THE IORTElR DEPARMEN ssu-r7 of Proclet CoCO. 7. of CoOst2 ---'0------------ ------------- 5'0------------ be f-r Foreis. Local Fereign Tot-l Loc-l ForeUr TotaI Coeti,,gel LEchag 1. Aito Q-artier M-ori 4,125 1,975 6,100 S25.0 395.0 1,220.0 32 St. R phsel 2,300 1,005 3,305 460.0 201.0 661.0 30 We11 irrigatioc 1,510 1,305 2,815 302.0 261.0 363.0 46 Ocildi.gs 60 60 120 12.0 12.0 24.0 50 Vehicle. nd .q.sp_t 112 2,270 2,382 22.4 454.0 476.4 95 LC'd co peaOion 125 - 125 25.0 - 25.0 Scierie. 1.566 - 1.566 313.2 - 313.2 Sob-tota1 9.798 6.613 1.959.6 1.323.0 3.282.6 36 40 2. A9gricît.r-1 Credit S.ildi.ge 21 22 43 4.2 4.4 8.6 50 Vebicla. cnd cq.ip-.t 5 99 104 1.0 19.8 20.8 S.îeri.e 722 - 722 144.4 _ 144.4 Roceing coc. t f vehicle. 29 115 144 5.8 23.0 28.8 80 otùer capecees md .i,teeaece 55 56 111 11.0 11.2 22.2 50 Mediuo-t-r credit 100 2,900 3,00f 20.0 580.0 600.0 97 Pr.dcction credit . 1,000 1,000 - 200.0 200.0 100 S.b-t.ta1 932 4"192 5,124 186.4 683.4 1.024.8 il 82 3. Trials -d Seed V.6hc1ec ced eqcip-et 7 139 146 1.4 27.8 29.2 95 operctie co.ts 150 122 272 30.0 24.4 54.4 45 S.b-tot.1 157 261 418 31.4 52.2 63.6 1 62 4. E.ten-ion Services Ocidieg. 49 49 98 9.8 9.8 19.6 . 50 V hicles nd eq.ipoet 14 268 282 2.8 53.6 56.4 95 9î1or-cs 1,670 - 1,670 334.0 - 334.0 Runcicg co... of c*hic1el 85 342 427 17.0 65.4 85.4 60 oth0 r espe.ses ... . oîteearce 69 69 138 13.8 13.8 27.6 50 S0b-total 1,887 728 2,615 377.4 145.6 523.0 6 28 5. Acieci Oeaîth Bsildisge 13 14 27 2.6 2.B 5.4 50 Vehicle, .ed eqsipcect 1 16 19 0.2 3.6 3.8 95 Saîcries 80 - 80 - 16.0 - Roceicg cost. cf vchic.le 5 18 23 1.0 3.6 4.6 B0 Vaccices ccd _dîccticce 14 275 289 2.8 55 57.8 95 Hther_epensessd . aieteca,,c_ 3 3 6 0.6 0.6 1.2 50 Ssb-total 116 328 444 23.2 65.6 88.8 1 74 6. Mahketo ccd Abattoir cap-b'aitiec - Contr-1 M-rk-t 75 299 374 15 59.8 74.8 80 - Abott.ir Marbet 67 158 225 13.4 31.6 45.0 70 St. Raphcel - Musicip.1 Morket 17 41 58 3.4 8.2 11.6 70 CaP-Heities - Abattoir 30 118 148 6.0 23.6 29.6 80 s.b-tot.l 189 616 805 37.8 123.2 161.0 2 77 7. Roods C ..cot tieo 1,986 4,462 5,950 297.6 892.4 1,190 75 Lsdc .epceioc 60 - 60 12 - 12 Mai,ton nce 182 46 228 36.4 9.2 45.6 20 S1b-total 1,730 4,508 6,238 346.0 901.6 1.247.6 14 72 B. Pot-ble Water 258 601 859 51.6 120.2 171.8 2 70 9. Proicit Ad sicistraticc Ocildicge 571 572 1,143 114.2 114.4 228.6 50 V.hicle.. cd eq.ipcnt 5710 195 205 2.0 39.0 41.0 95 Sal_rie. 727 6,700 7,427 145.4 1,340.0 1,485.4 90 Co.clct-nt. - 1,225 1,225 - 245.0 245.0 100 Rsosicg coste cf vohiclos 47 187 234 9.4 37.4 46.8 ô0 other ccpccces nd t,ictessce 306 596 904 61.2 119.6 18008 50 S.b-tot.l 1,661 9,477 118136 332.2 1.695.4 2.227.6 25 85 10. project Monitringc Vehiclce ccd eqcipccct 2 31 33 0.4 6.2 6,6 95 Salaries 199 797 996 39.8 159.4 199.2 80 oth0 r c.pe.es 62 62 124 12.4 12.4 24.8 50 Scb-tt.l 263 590 1,153 52.6 178.0 230.6 2 78 Total B..0 Cost 16,991 28,216 45,207 3,3962 5,643.2 9,041.4 100 62 Phyciccl co-tlicgcces 2,523 2.566 5,089 504.6 513.2 1,017.6 Il 50 pricc.coccicoeccis 6,594 10.950 17,544 1,318.8 2,190.0 3,508.8 39 62 S.b-tot.l 9,117 13,516 22,633 1,823.4 2,703.2 4,526.6 50 - Tot-l Prclcct Coost 26,108 41,732 67.840 5,221.6 8,346.4 13,568.0 _ 61 Octob-r 1, 1976 ANNEX 16 P9ITI RURAL D IVEVLPHENT PURfCT TI THE NDRTHERN DePAIUI Pro1nct Co Pha.ing 1-_Y_a - 3 4 Total 1. rrgio Quartier llorin 1,400 2,525 1,750 425 6,100 St. R.phb l - 800 1,400 1,105 3,305 a.11 irrig.tion - 615 1,100 1,100 2,815 BJildinOs 120 - - - 120 Vehi.l1O *nd equip_nt 1,902 60 60 360 2,382 Land noMpenatioo 35 45 35 10 125 Salaries 402 424 370 370 1.566 Sub-total 3,859 4.469 4,715 3,370 16,413 2. Agriculteraî Credit Buildings 43 - - 43 Vehicles nd equip_nt 104 - - - 104 Salaries 164 186 186 186 722 Rueing roste o2 vehiolea 24 24 24 72 144 Other expenees And intenance 30 32 32 17 111 Mediv--tem cr-dit 86 461 920 1,533 3,000 Production oredit 68 432 500 _ 1,000 Sub-total 519 1.135 1,662 1,80H 5,124 3. Trial. end Seed V.hicles end equip-.t 146 - - - 146 Operating co.tO 42 62 71 97 272 Sub-total 188 62 71 97 418 4. Extension Service Boîldi.g. 98 - - - 98 Vehicles end oq.ipment 282 - - - 282 Salaries 417 418 417 418 1,670 RuinoIn ..ste oE v-hicle 78 78 78 193 427 Other xpon.e. and ,intenonce 34 40 40 24 138 sub-total 909 536 535 635 2,615 5. Aniîl health B.ildi.g. 27 - - 27 Vehicle. snd oquip.ent 19 - - 19 Ssl1rieo 20 20 20 20 80 Bunning -oste et vohicles 3 3 3 14 23 Vaccines *nd ,edicetion 45 65 86 93 289 Other expenses and mitent noe 1 2 2 1 6 Sub-to.cl 115 90 Ili 128 444 6. Markets end Abattoir Cap-Raition - Central Miorkoot 374 _ 374 - Abattoir Nlsrket 225 - - - 225 St. Raphael-unicipal Menr - 58 - 58 Cap-Raitien - Abattoir 148 - - - 148 Sub-total 747 58 - _ 805 7. Roada Construction 2,230 1,250 1,700 770 5,950 Ltnd co pensatinn 25 25 10 60 Maintenenre - IH _ 70 140 22H Sub-total 2,230 1.293 1,795 920 62238 8. Pgtabl Water 113 349 357 40 859 9. Proient Adainittration B.ildings 1.143 - - - 1,143 Vehi.les ad eq.ipent 205 - - - 205 Salaries 1857 1,856 1,857 1,857 7,427 Conssltants 420 280 420 105 1,225 Ruming .o.t. of vehi.les 49 49 48 88 234 Other expen.e. and naintenanc. 224 210 260 210 904 Sub-tot.1 3.898 2,395 2,585 2,260 11.138 10. Proje.t Nonitoring Vehicle- nd eq.ip.,nt - 33 - - 33 Salaries - 332 332 332 996 Other -p-.ses. 41 42 41 124 Sub-total - 406 374 373 1.153 Total Base Cnet 12,578 10.793 12,205 9 631 45,207 Physical contingencies 1,140 1,361 1,601 987 5089 Price contingencies 2 Â1 S 7 4.915 5.282 16.464 S.b-total 3.611 5.157 6.516 6,269 21.553 Total Proie.t Coste 16.189 1S.950 18.721 15,900 66,760 Decosber 3, 1976 AUN 17 bAITI RURAL DEVZLOPhENT PROJ8CT INi THE IIOTH1RN DEPARTNIIfT Vlorld Govre.nt Feod Prear.. IDA Total 1. Irrigati Quartier Mor-n 305 2,500 3.295 6,100 StiR ph_l 165 1,500 1,640 3,305 9.11i îrrîgtîoa 4 0 2,174 2,815 Buildinp 6 114 120 Vabirls and equipoent 119 2,263 2,382 d enaion 125 125 Salaries 1.566 1,566 S.b-t.ta1 2,427 4,500 9.486 16.413 2. AericuîtOtCl Cuadit Buildings 2 41 43 Vehi.les sud equip-ut S 99 104 Salaries 722 - 722 Runoing roits of -ahi.les 7 137 144 Othar p eusees sd seintenre 51/ 106 111 Msdi î-tefl credit 100- 2,900 3.000 Production credit 1,000 1,000 Sub-t.tal 841 4,283 5_124 3. Triels snd Saed 'ahirlea s d equipx nt 7 139 146 Oparatins coatc 13 259 272 Sub-total 20 398 418 4. EEt.nlisu Sre"icas Buildinga 5 93 98 Vehicles *rd equipaent 14 268 282 Saîsrlea 1,670 - 1,670 Sem.in.g -ots of vehicle- 21 406 427 Other eppe.se. *nd aintence 7 131 138 S.b-t.t.l 1,717 898 2.615 5. Anial He-lth Building, 2 25 27 Vehi.les sud equipuont I 18 19 Salaries 80 . 80 R.uning .osts of vehielea 1 22 23 Verrines sd aadiretion 14 275 289 Othar . .penss. sd aainîm, nce I 5 6 S.b-to.tl 99 345 444 6. M-rket sud Absttiir Cap-Hsitieu - Central MerkSt 18 356 374 - Abattoir Yerkat il 214 225 St. Raphael - Manicipal lrket 3 35 58 Cap-H.itien - Abattoir 8 140 148 S.b-t.tal 40 765 805 7. Roada Conatruetisu 300 450 5,200 5,950 L-nd conp.n.stin 60 - _ 60 Malutenaurs 11 50 167 228 S.b-tota1 371 500 5,367 6,238 8. Potabla WVter 43 816 859 9. Prolect Ad iuiatration Buildi.g. 57 1,086 1,143 Vehirle sud eq.ip.ent 10 19S 205 S laries 727 6,700 7,427 Co... 1tant. I 1.225 1,225 Running resut f -hicI- 11 223 234 Other axpense. .nd sinierarre 45 859 904 S.b-t.t.l' 8S0 10,288 11 .138 10. Proieri Monitoring Vehirles sud eqeipue-t 2 31 33 Salaris 171 825 996 Oth-r oapersea 6 118 124 Sub-t.t.l 179 974 1,153 Totl Bas. C.at 6,587 5S000 33,620 45,207 Phy.iral rontingancies 816 - 4273 5.089 Price ro.tingenrias 2.456 1.901 12.107 16.464 Sob-total 3,272 1 901 16.380 21.553 Total Pre.elt Ceets s 8c8 6.901 50,000 66.760 Total ProeIt Coat (US$) 1,972 1,380 10,000 13.352 Perren.tge cf Tot-l Coet 14.8 10.3 74.9 100 0 V Inc lude- contribrtiena of mediun- si so ferara te Agricultur1 credit. De.a.ber 3, 1976 ANNEX 18 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Estimated Schedule of Disbursement (US$'000) IDA Fiscal Year, Disbursement Cumulative Disbursement End of Quarter per Quarter at End of Quarter 1978 September 30, 1977 400 400 December 31, 1977 600 1,000 March 31, 1978 700 1,700 June 30, 1978 700 2,400 1979 September 30, 1978 600 3,000 December 31, 1978 600 3,600 March 31, 1979 600 4,200 June 30, 1979 600 4,800 1980 September 30, 1979 700 5,500 December 31, 1979 700 6,200 March 31, 1980 700 6,900 June 30, 1981 700 7,600 1981 September 30, 1980 600 8,200 December 31, 1980 600 8,800 March 31, 1981 600 9,400 June 30, 1981 600 10,000 October 1. 1976 Page 1 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Farm Models 1. Farm models are representative of the three main agricultural con- ditions in the project area, namely, (a) an irrigated unit at an altitude of about 400 m in the lower rainfall (average 850 mm per annum) area of St. Raphael; (b) two irrigated units, one from surface water and one from wells, at an altitude of about 15 m in the higher rainfall (average 1,300 mm per annum) area of Quartier Morin; and (c) a rainfed unit in the non-irrigated area of the Western Northern Plain. 2. The size of the irrigated units in St. Raphael and Quartier Morin areas was established at 10 ha, which is closely related to the size estab- lished by the Bureau of Agricultural Credit (BCA) for an Agricultural Credit Society (SAC), which is 5 to 10 carreaux. These units are assuméd to be oper- ated individually by the members of the SAC, but each farm model represents, a productive unit. For the rainfed area, a 15-ha size has been established in order to achieve a unit of similar production level without the benefit of irrigation. 3. For each of the units, seven families have been assumed, this num- ber constituting the minimal number of members for a SAC. Since the unit is treated as a whole in the model, no attempt has been made to distribute sizes among the seven operators. Each family has been assigned an average of five members, which is consistent with national and regional averages (Annex 1). 4. The selection of crops for the models is based on the actual crops and crop varieties grown in each area, since the project does not foresee introduction of new crops until the agricultural trial program would even- tually recommend, together with the Organisme de Developpement du Nord (ODN) marketing specialist, new crops and/or varieties. In the area of St. Raphael, sugarcane is grown mainly for on-farm consumption, with limited amounts being utilized for syrup; but, since the latter is normally grown by the processor, it was not introduced as a cash crop in the model. Other crops grown in the area, including maize, beans, bananas, yams, manioc, tobacco and rice are mainly for on-farm consumption, except for vegetables (mainly onions, tomatoes and carrots), which are sold in Cap-Haitien and Port-au-Prince. In Quartier Morin, sugarcane dominates the cropping pattern, with an assured market in the Caldos sugar mill. Additional crops such as maize, beans and yams are grown mainly for on-farm consumption. In the rainfed areas, sugarcane also plays an important role although the distance from the sugar mill prevents economic processing for export. A large part is consumed on the farm and surpluses are ANNEX 19 Page 2 sold to numerous small distilleries or mills for the manufacture of alcohol ("clairin") or of block sugar ("rapadou"). In this area, tobacco is becoming an important cash crop due to extension efforts of the national tobacco manufacturers. 5. Present yields used for the farm model projections are based on average rainfall conditions and were established after discussions with farmers.and community councils in representative locations of the project area. They were further supported by local Agricultural Extension Service staff and agricultural agents from the sugar mill. 6. Incremental yields were established through correlation with con- servative yields in the Dominican Republic and Jamaica, under comparable conditions of soils and rainfall and assuming an improved level of manage- ment. Such yields are possible for Haitian farmers to achieve during the four-year disbursements period with the improvements provided by the proj- ect. In the St. Raphael and Quartier Morin areas, yields are the result of improved agricultural management practices through intensive extension efforts, increased farm inputs and double cropping of some of.the good crops through rehabilitation and expansion of the irrigation systems. Increments in sugarcane yields are not substantially larger in the irrigated than in the rainfed areas because of the low yielding sugarcane variety presently cultivated and because sugarcane is a full-year crop and rainfall in the area is not so much insufficient as irregularly distributed. Therefore, the improved irrigation system at Quartier Morin would assure regular pro- duction (on which the local sugar mill depends) and guarantee what has been estimated as a relatively modest yield increase until results from the trials at the Caldos sugar mill allow the introduction of varieties with significantly higher yields and sugar content. 7. Extensive use of fertilizers and pesticides can be recommended only once their economic use has been successfully tested and demonstrated by ODN. The yields assumed for the farm models are therefore, mainly based on the expected effects of (a) strengthening the Agricultural Extension Service (SVA) and the Rural Animation Service (SAR); (b) the recognized ability of the Haitian farmer to absorb and apply new agricultural practices; (c) the avail- ability of improved seed; and (d) short-term credit for small farmers to cover costs of some fertilizer, pesticides, improved seeds, livestock medication, and such, as well as medium-term credit to purchase draft oxen, yokes, plows, sprayers, irrigation pumps and the like. In relation to actual yields in the Dominican Republic and Haiti under similar conditions and level of improved management, the assumed yield increases can be considered as rather conser- vative. 8. Projected incremental livestock production is based on (a) in- creased output of crop residues as a result of expected incremental agri- cultural production due to the project, with crop residues from sugarcane, grain and vegetable cultivation preponderantly benefitting cattle raising; (b) the introduction of efficient animal health services expected to benefit ANNEX 19 Page 3 mainly pork and poultry production; and (c) improved animal husbandry prac- tices to be extended by the agents of the Animal Health and Agricultural Extension Services. 9. On-farm consumption at subsistence level is extremely low in Haiti, since even in the smaller farms (average 0.5 ha) a small amount of agricul- tural production is being reserved for sale or barter. The on-farm consump- tion, therefore, has been assumed to amount to about 85% of production during the first three years of the project and to level off thereafter. 10. Farmgate prices for agricultural products and investment and operating costs reflect mid-harvest 1976 prices. Labor cost has been off-set by on-farm consumption, except for the Quartier Morin irrigation district where additional labor is required during harvest of sugarcane. The legal salary rate of G 6.00 per day (US$1.20) was applied for compensating addi- tional laborers. October 6, 1976 HAITI RURAL DEVELOPMENT PROJECT 1N TBE NOR TI8i DEPARTMENT Farm Models 1/ Model 1: 10-ha Farm Unit in the Irrigated Area of St. Raphael Production and Production Value (G) Crop Production2 Hectareas. Yielda ton/ha Before ----------------Year---------------- ______Production2/ Unit Years 1-4 Years 1-4 Development 1 3- 4-20 4/ --_ _ _ Sugarcane Tons 1.0 1.0 1.0 1.0 35 35 40 50 35.0 35.0 40.0 50.0 50.0 Maize " 1.2 1.2 1.2 2.4 1.5 1.5 2.0 3.0 1.8 1.8 2.4 3.6 7.2 Beans " 1.2 1.2 1.2 1.8 1.0 1.0 1.5 2.0 1.2 1.2 1.8 2.4 3.6 Bananas " 1.2 1.2 1.2 1.2 3.0 3.0 4.0 5.0 3.6 3.6 4.8 6.0 6.0 Yams " 1.0 1.0 1.0 1.5 4.0 4.0 5.0 6.0 4.0 4.0 5.0 6.0 9.0 Manioc " 1.0 1.0 1.0 1.0 4.0 4.0 4.5 5.0 4.0 4.0 4.5 5.0 5.0 Tobacco 1.2 1.2 1.2 1.2 .4 .4 .5 .6 .5 .5 .6 .8 .8 Rice " 1.0 1.0 1.0 1.0 1.5 1.5 2.0 3.0 1.5 1.5 2.0 3.0 3.0 Legumes5/ " 1.2 1.2 1.2 2.4 4.0 4.0 4.5 5.0 4.8 4.8 5.4 6.0 12.0 Livestock Production Catt6g- kg liveweight 175 175 200 400 400 Pigs- kg liveweight 350 500 600 700 700 Value of Crop Production Farmugatt Prices- Maize 1.3 2,340 2,340 3,120 4,680 9,360 Beans 3.0 3,600 3,600 5,400 7,200 10,800 Bananas 0.5 1,800 1,800 2,400 3,000 3,000 Yams 1.0 4,000 4,000 5,000 6,000 9,000 Manioc 1.0 4,000 4,000 4,500 5,000 6,000 Tobacco 3.0 1,500 1,500 1,800 2,400 2,400 Rice 9/ 3.0 4,500 4,500 6,000 9,000 9,000 Legumes- 0.5 2,400 2,400 2,700 3,000 6.000 Sub-total 24,140 24,140 30,920 40,28D 55,560 Value of Animal Production Prices 10/ (G/kg) Beefsj/ 4.0 350 350 400 800 800 Pork- 5.0 1,225 1,750 2,100 2,450 2,450 Sub-total 1,575 2.100 2.500 3.250 3.250 Total Value of Production 25,715 26.240 3 43530 5 12/2575 224 3340581 Less: On-farm Consumption 21,858 22,304 28,407 36,50 36,950 Total Cash Sales 3 857 3.936 5,013 6,580 21,860 1/ Operated by seven families (average farm size = 1.45 ha) with five members each. 2/ Double cropping for maize, beans, yams, and legumes inyear 4 when irrigation syatem is fully operative. 3/ With improved farming practices resulting from extension efforts. 4/ 107. of unit is assumed in sugarcane exclusively for human and animal on-farm consumption. 5/ Tomatoes = 0.2 ton/ha; carrots = 8 tons/ha; and onions = 3 tons/ha. 6/ Assumes two draft oxen before development and purchase of two additional draft oxen in year 1. 7/ Average liveweight 50 kg per animal. 8/ Assarmes stabilization of prices due to storage facilities and marketing credit. 9/ Average price based on tomatoes (G.50/kg), carrots (G.20/kg), and onions (G.70/kg). 10/ Dressing percentage, 507" 11/ Dressing percentage, 707. 12/ Assumes 857 on-farm consuMpLion in years 1-3 and then leveling off after year 4. ANNEX 19 Table 2 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Farm Models Model 1: 10-ha Farm Unit in the Irrigated Area of St. Rapahel-/ Investment and Operating Costs (G) 3 fore - -------------Year------------------ Invctunt Dewlon»t ,1 2 3 4-20 ûtn^cqv~~~2/ ° 3 75°0 Draft OM 1.200 EGuiDmet L2. 1,000 600 Plow 1,000 Cultivator 1,000 Sprayer 300 TOa1& 3/a 200 300 Storagc raciiitieè' 1,000 tbtal Investment Costa 8,525 4.750 4,350 Operating Conte Operation and Maintenance of Irrigation Scheme 9OO Labor5 / materal 551 551 2 6 24 ve rtiliscr/ P, ,131 = P..ticides7/ 210 420 Seed-8/ 551 551 551 602 1,204 Wat.ri/ 160 Liv.utock 205 205 4b2 51d 52L& vaccines ,LO,' 22 38 414 Dru& 1-1/ 30 30 30 MWnralc 20 40 40 Operation of drat oxen 205 205 410 410 410 Equipment Maintenance and 166 181 196 Repair L4I Total Operating Conta 756 756 3f264 5.642 1/ See 1/ in Model 1. 2/ Farm unit's contribution to cost of irrigation rehabilitation (50%) ta be repaid in 20 years starting in year 5. 3/ Includes hoes, spades, machetes, and the like and purchase of tools for effective use of irrigation. 4/ For 3-ton on-farm grain storage container serving 10-ha unit or proportionate cost of larger community storage. 5/ Family labor costs are offset by on-farm consumption (see Table 1). 6/ Fertilizer, mainly for cash crops, is assumed to increase from 50% in year 2 to 100% in years 3-20. 7/ Pesticides, mainly for tabacco and legumes, are assumed to increase to 100% in year 3. 8/ Improved seed for corn, beans, tobacco, and legumes in years 3 to 20. 9/ Water charges based on present tax of G 16/ha/year would be introduced in year 4 when irrigation scheme is fully operative. 10/ Assumes vaccination for Hog Cholera and New Castle disease (see Annex 7). 11/ Assumes drenching of draft oxen for liver flukes and helminths (see Annex 7). 12/ 5% of investment cost. June 22, 1976 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Farm Models Model 1: 10-ha Farm Unit in the Irrigated Area of St. Raphael Financial Pro ections ------------ ------------------------------------------------------ Year -------------------------------------------------------------------- Categtory O 1 2 3 4 5 6 7 8 9 10 il 12 13 14 15 A. CASH INFLOW Sales 3,857 3,936 5,013 6,520 21,860 21,860 21,860 21,860 21,860 21,860 21,860 21,860 21,860 21,860 21,860 21,860 Development loanl/ - 3,525 1,000 300 - - - - - - - - - - - - Production loan.l/ - - 2,700 2,700 - - - - - - - - - - Previous year cash balance - 578 91A 1.379 1.450 3,480 4.210 5-795 7,380 8.965 7.550 6.135 4J720 3,305 4.885 6.470 Total Cash Inflow 3,857 8,039 9,631 10,899 23,310 25,340 26,070 27,655 29,240 30,825 29,410 27,995 26,580 25,165 26,745 28,330 B. CASH OUTFLOW Development investment - 3,525 1,000 300 - - - - - - - - - - - - Production costs 756 756 3,264 5,642 9,650 9,650 9,650 9,650 9,650 9,650 9,650 9,650 9,650 9,650 9,650 9,650 Medium-term payment - 317 407 531 2,817 2,817 - - - - - - - - - _ Short-term payment - 243 297 2,700 2,700 - - - - - - - - - - Irrigation scheme amortization - - - - 625 625 625 625 625 625 625 625 625 625 625 625 Cash withdrawal 2,523 2.523 3.338 2,679 4,038 5,338 10.000 10.000 10.000 13.000 13.000 13.000 13.000 10,000 10,000 10.000 Total Cash Outflow 3,279 7,121 8,252 9,449 19,830 21,130 20,275 20,275 20,275 23,275 23,275 23,275 23,275 20,275 20,275 20,275 C. EXPECTED CASH BALANCE AT YEAR'S END 578 918 1,379 1,450 3,480 4,210 5,795 7,380 8,965 7,550 6,135 4,720 3,305 4,895 6,470 8,055 1/ Interest rate 9% for years 1, 2 and 11% afterwards. tD 2X June 22, 1976 HAITI RURAL DEMMOPgfENT PROJECT IN TUE NORTHERN DEPARtMEHT Farm Modela Model 2: 10-ha Farm Unit in the Irrigated Area of Quartier Morin Production and Production Value 4-20 Equipmnt 300 5.752 400 Putp and engineZ/ 5,702 Pump and engine shed 650 Hand tools3/ 300 400 Total Investment Coats 300 400 Operating Costa 2p in d Mainten4noe Operation andMiteac of Irrigation Sy8tenm/ 3,100 Labor.Y' 3,594 3,594 3,666 4,434 5.220 Materials 57 57 444 6 182 7 080 Fertiizers m > 6,752 Seed6/ 57 57 106 106 222 Water i 106 Livestock 107 153 170 170 Vaccine s. l l 7 Drugs9/ 45 55 72 72 Mtinerals 40 60 60 60 Equipment BPpair and 4RbPlacementi0/ 1515 20 Total Operating Costs 3,651 3 58 4278 I0 1 15590 1/ See 1/in Model 2. 2/ Proportionate cost of pump and engine serving 70 ha. 3 Includes hoes, spades, machetes, and such and tools for effective use of irrigation. 4/ Cost of operating irrigation system applied after full development (year 4). 5/ Family labor costs in addition to on-farm consumption. 6/ Improved seed for maize and beans. ,7/ Water charges in addition to the legal tax of G 16/ha would be introduced in year 4 when irrigation system is fully operative. 8/ Assumes vaccination for Hog Cholera and New Castle diease (see Annex 7). 9/ Assumes drenching of cattle for liver flukes and helminths (see Annex 7). 1l/ Repair and replacement of hand tools estimated at 5% of investment cost. July 13, 1976 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Farm Models Model 3: 10-ha Farm Unit in Pump Irrigated Areas of Quartier Morin Financial Prolections (G) ----------------------------------------------------------Year------____________-_ Category ° 1 2 3 4 5 6 7. 8 9 10 il 12 13 14 15 A. CASH INFLOW Sales 1/ 9,464 9,542 9,554 13,459 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599 27,599 Development Loan - 300 5,752 400 - - - - - - - - - - - - Previous Year Cash Balance - 3.813 4.561 2.626 4.033 7.011 5.146 7.101 7.056 7.011 6.966 6.921 6.876 6,831 6,786 6j741 Total Cash Inflow 9,464 13,655 19,867 16,485 31,632 34,610 32,745 34,700 34,655 34,610 34,565 34,520 34,475 34,430 34,385 34,340 B. CASH OUTFLOW Development Investment - 300 5,752 400 - - - - - - - - - - - - Production Costs 3,651 3,758 3,758 4,278 10,801 15,644 15,644 15,644 15,644 15,644 15,644 15,644 15,644 15,644 15,644 15,644 Medium-term Repayment - 27 545 710 3,767 3,767 - - - - - - - - - - Cash Withdrawal 2,000 5.009 7,181 7,064 10,053 10,053 12.000 12,000 12.000 12.000 12.000 12,000 12,000 12,000 12,000 12.000 Total Cash Outflow 5,651 9,094 17,236 12,452 24,621 29,464 27,644 27,644 27,644 27,644 27,644 27,644 27,644 27,644 27,644 27,644 C, EXPECTED CASH BALANCE AT YEAR'S END 3,813 4,561 2,631 4,033 7,011 5,146 5,101 7,056 7,011 6,966 6,921 6,876 6,831 6,786 6,741 6,696 1/ See Table 4. June 25, 1976 A HAITI RURL DEVEWPMENT PROJECT IN THE NORTHE RN DEPARTMENT FPrm Models Ilodel 4: 15-ha Farm Unit in the Rainfed Area of Plaine du Nord Productien and Production Value (G) - -Year --- - ------- Hectares Yields ton/ha Before 2/ Crop Production Unit Years 1-4 Years 1-4 Development 1 2 3- 4-20 Sugarcane tons 8.0 8.0 8.0 8.0 30 35 45 55 240 240 280 360 440 Tobacco 2.0 2.0 2.0 2.0 .25 0.3 0.4 0.6 .5 .5 .6 .8 1.2 Manioc " 1.5 1.5 1.5 1.5 3.0 3.0 3.5 4.5 4.5 4.5 4.5 5.3 6.75 Yams 1.5 1.5 1.5 1.5 3.0 3.0 3.5 4.5 4.5 4.5 4.5 5.3 6.75 Sorghum 2.0 2.0 2.0 2.0 0.6 0.7 0.8 1.0 1.2 1.2 1.4 1.6 2.0 3/ Livestock Production7 Beef (Liveveight) kg 140 140 260 260 260 Milk S 250 250 300 500 500 Pork (Liv.u.ight)'kg 350 500 500 500 500 Value of Crop Production Farmgate Prices Sugarcane ton 33.0 7,920 7,920 9,240 11,880 14,520 Tobacco kg 3.0 1,500 1,500 1,800 2,400 3,600 Manioc kg 1.0 4,500 4,500 4,500 5,300 6,750 Yams kg 1.0 4,500 4,500 4,500 5,300 6,750 Sorghum kg 2.0 2,400 2,400 2,800 3,200 4,000 Sub-total 20,820 20,820 22,840 28,080 35,620 Value of Animal Production Prices Beef (deadveight)Ž/ kg 4.0 280 280 520 520 520 Milk kg 0.75 190 190 225 375 375 Pork (deadweight)fl kg 5.0 1,225 1,750 1,750 1,750 1,750 Sub-total 1,695 2,220 2,495 2,645 2,645 Total Value of Production 2i,515 23,040 25,335 30,725 38,265 Lase: On-farm Consumptionl/ 12,073 12,519 13,253 15,406 15,406 TfleI Cash Sales 10j442 10.521 12,082 15,319 22.859 1/ oprated by seven families (average faru size, 2.15 ha) vith five members each. 2/ vith improved faruing practices resulting from extension efforts. 3/ Assumes one cov, one steer, one calf and seven pigs before development and purchase of two draft oxen in year 1. 4/ Average liveweight, 50 kg per animal. a 5/ Dressing percentage, 507. 6/ Dreusing percentage, 70%. 7/ Asesme 10% on-farm consumption of sugarcane and tobacco and 85% consumption of all other production, leveling off after year 3. June 28, 1976 ANNEX 19 10 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Farm Models Model 4: 15-ha Farm Unit in the Rainfed Area of Plaine du Nord; Investment and Operating Costs (G) Before ------------------Year----------- Investment Development 1 2 3 4-20 Draft Oxen 1,200 Equipment 2,425 300 Yoke 125 Plow 1,000 Cultivator 1,000 Spraye3y 300 Tools_ 300 Total Investment Costs 3,625 300 Operating Costs Labor-3/ 2,880 2,880 2,880 3,648 3,648 Materials 162 162 2,506 5,130 9,818 Fertilizer- 2,344 4,687 9,375 5' Pesticides- - 200 200 Seed6/ 162 162 162 243 243 Livestock 274 328 328 328 Vaccines7/ 22 38 38 38 Drugs8/ 27 45 55 45 Minerals 20 40 40 40 Operation of draft oxen 205 205 205 205 Equipment Maintenance. and Repair 121 121 136 Total Operating Costs 3,042 3,316 5,835 9,227 13,930 _/ Operated by seven families (average farm size,2.15 ha) with five members each. 2/ Includes hoes, spades, machetes and such. j/ Labor costs in addition to on-farm consumption (see Table 7 ). 4/ Pesticides mainly for tobacco. 5/ Improved seed for tobacco and sorghum. 6/ Assumes vaccination for Hog Cholera and New Castle disease (see Annex 7). 7/ Assumes drenching of cattle for liver flukes and helminths (see Annex 7). 8/ 5% of investment cost. June 28, 1976 HAITI RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT Farm Models Model 4: 15-ha Farm Unit in the Rainfed Area of Plaine du Nord Financial Projections --------------------------------------------------------------------- Year ------------------------------------------------------------------- Catepory O 1 2 3 4 5 6 7 8 9 10 il 12 13 14 15 A. CASH INFLO Sales 10,442 10,521 12,082 15,319 22,859 22,859 22,859 22,859 22,859 22,859 22,859 22,859 22,859 22,859 22,859 22,859 Development Loan - 3,625 - - - - - - - - - - - - - - Previous Year Cash Balance - 2,400 4.170 4.982 3.939 3.835 3.731 3.660 3,589 3.518 3.447 3.376 3.305 3.234 3.163 3,092 Total Cash Inflow 10,442 16,546 16,252 20,301 26,798 26,694 26,590 26,519 26,448 26,377 26,306 26,235 26,164 26,093 26,022 25,951 B. CASH OUTFLOW Development Investment - 3,625 - - - - - - - ? - - - - - - Production Costs 3,042 3,316 5.835 8,927 13,930 13,930 13,930 13,930 13,930 13,930 13,930 13,930 13,930 13,930 13,930 13,930 Medium-term Repayment - 326 326 399 2.119 2,119 - - ,1 - _ Cash Withdrawal 5.000 5.109 5.101 7.036. 6.916 6.916 9.000 9.000 9,000 9.00D 9.000 9.000 9.000 9. -19-SD' RURAL ,'.- z: 0 0.0 0 :0HATI T 1 A - , ` RR . TAL DEVELOPMENT PROJECT IN T,- RHE ThERN DEPARTMENT EN~~~~~~~ 'O j ; 0~~~~~~~~ Breda '' -7 9 20 Re bs*oes rsx Limbnpd szODNHocgotr tie- :DP/t dédoré:lét , aelntY b; $/. ODN Field Offices : : : " d :) 8.,'7 E Ce3 as d . rM="x>dn.>naMr M.. -- ricul]u Extnsion Serices .- '. . Ay cJ G e d'; B. A X p a o o - ,; .,st - i - SecPrdcto X 40 00 r.Wd«tDpotèn oudry - . >< 2 Mniicz Abutir0 20Il,I-Isohyets ( inmillimete `___Aie of Known Potentho fo- Well Irrigation KILOMETERS ~~~~Existing Irrigation System (Rehablîohtton & Expansion) 9~~~ 20 C.' ~~~~~ P.oriy Daia ed Aiea 75i ~~~~ ~~. ODN Heodquorters îiii,îi,i, "i ~"i''ODN Field Offices k¼,idB,,,~id is'iiiiiiiAgriculturol Extension Services ~~ ~~~ ~Rural Animation Services ALTITUDES (i. inte,es) Irrgation services Vetenînary Services W' MM 1000 or More Main Roads ______ ~~~~~~~~Ag,icult.rol Cred,t (B.C A.)jt 800 - 1000 SecoeooryRod I eernn~~~~.iu - ~~Agr.iculurl Trials :'L 00-80Commvee B.ieore Sugorcose Trial5 0 0 Commune Seed Production 1111vt0~ eotsn onay'~0~ Musicipol M.rket '20-40R,vers ____ ~~~~~~~~Municipal Abbattial 0 - 200 "' Isohyets (in millimneters) j'~~'-'--0:50-~i' ~ ~ Bouedaries of Proiect Ares Si ~~~~72- 20 72-10,