Document of FILE Copy The World Bank FOR OFFICIAL USE ONLY Report No. P-1924-HA REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF HAITI FOR A RURAL DEVELOPMENT PROJECT IN THE NORTHERN PLAIN December 15, 1976 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS US$1 Gourdes (G) 5 Gourde (G) 1 US$0.20 WEIGHTS AND MEASURES Metric System 1 meter (m) 39.37 inches 1 kilometer (k) 0 0.62 miles 1 hectare (ha) 2 2.47 acres = 0.78 carreaux 1 square kilometer (km j 0.386 square miles 1 kilogram (kg) - 2.205 pounds 1 ton (t) = 2.205 pounds 1 liter 0 0.264 gallons ABBREVIATIONS BCA - Bureau de Credit Agricole 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 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 SAC - Societe Agricole de Credit SAR - Service d'Animation Rurale SMV/SE - Service d'Elevage et Veterinaire 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 USAID - United States Agency for International Development WFP - World Food Program GOVERNMENT OF HAITI Fiscal Year October 1 - September 30 FOR OFFiCIAL USE ONLY INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF HAITI FOR A RURAL DEVELOPMENT PROJECT IN THE NORTHERN DEPARTMENT 1. I submit the following report and recommendation on a proposed development credit to the Republic of Haiti for the equivalent of US$10 mil- lion on standard IDA terms to help finance a rural development project in the Northern Department. The World Food Programme (WFP) will provide food for about 200,000 man-days of labor for the first year of Project implementa- tion and is considering a request to provide additional food for 1.8 million man-days for the final three years of Project execution. PART I - THE ECONOMY 2. The most recent economic report on Haiti, Report No. 1243-HA entitled "Current Economic Position and Prospects of Haiti" was distributed to the Executive Directors on December 15, 1976. Social and economic data are presented in Annex I. 3. Haiti is one of the poorest nations in the world, and one of two countries in the Western Hemisphere included in the U. N. list of least developed nations. GNP per capita in 1975 stood at US$180. An infant mor- tality rate of about 150 per thousand live births, an average life expectancy of 50 years, low nutrition and sanitation standards (malnutrition and gastro- enteric diseases account for over half the deaths in the country) and an adult literacy rate of about 20 percent characterize the depressed living standards of the population. 4. The country's natural resources are limited. Of the country's total area, only about 15 percent is well suited to agriculture although twice as much is actually under cultivation. The remaining 70 percent is too arid and steep for cultivation. The average density of population is nearly 500 per square kilometer of arable land, one of the highest in the worldl. In addition, much of the country suffers from frequent hurricanes, floods and droughts. Known mineral resources are modest consisting of bauxite, copper and lignite. There is, nevertheless, scope for expansion of agricultural output through improvement of presently low levels of productivity. The country's proximity to the U. S. market, and the availability of abundant labor provide the basis for industrial development while Haiti's striking scenery and distinctive culture offer a potential for tourism. 5. Economic growth and social progress have been hampered by periods of political instability which did not permit the development of an adequate technical and physical infrastructure. Inadequate maintenance reduced the efficiency of the limited irrigation network. The lack of an adequate trans- port infrastructure and its poor maintenance hampered the development of agriculture. Power generation capacity is also well below the Latin American average. [This document has re tricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. 6. In marked contrast to the 1960-67 period when the economy stag- nated, Haiti enjoyed some growthi in 1968-74. Expansion of small-scale manu- facturing and assembly operations, tourism and construction led to real average annual increases of GDP of about 3.4 percent while population grew at an estimated annual rate of 1.6 percent. These activities contributed noticeably to improving economic conditions in Port-au-Prince. Employment in assembly operations, for example, increased from 10,000 in 1971 to 19,000 in 1974. Agriculture, however, which employs 30 percent of Haiti's popula- tion and accounts for about 45 percent of GDP and 42 percent of merchandise exports has, as yet, shown little dynamism. Progress in agriculture will require the adoption of improved production techniques and provision of greater incentives to fanners, as well as improvement of the transport infrastructure. 7. There was no economic growth in 1975. Agricultural output declined mainly as a result of a severe drought which particularly affected the north- western part of the country. World recession brought about declines in exports of mining products and manufactures as well as in industrial investment. Con- struction activity also slowed down significantly. 8. In the past three years the Government has adopted several meastures to encourage agricultural production. In 1973, the specific tax on coffee which, by absorbing a large share of export proceeds, weakened producer in- centives when international prices were low, was replaced by a progressive ad valorem levy. In 1974, a nationwide five-year coffee production program was initiated with the support of USAID to provide small farmers with a package of credit, technology, and training. A substantial increase in prices paid to farmers for sugar cane and to mills for sugar production was approved. The export tax on sugar was lowered from its previous rate which was as high as 80 percent at the margin. The tax on agricultural products marketed domestically, levied each time a commodity changed hands, was elimi- nated. In addition to these measures, the Government intends to initiate during the next two years rural development projects designed to increase the income and employment levels of the rural population. 9. The Government is carrying out an important investment program in which infrastructure facilities, essential to the development of the directly productive sectors, occupy a central place. Public investment increased by about 68 percent in real terms during 1975. In the area of Port-au-Prince, projects are under way to expand and improve port facilities and the water and power supply systems. Major roads linking the northern and southern regions of the country are being reconstructed and the network of agricultural feeder roads improved. The recently adopted Five-Year Development Plan stresses regional development. In addition to projects directly concerned with increas- ing agricultural production, such as the on-going coffee rehabilitation prog- ram, the Plan envisages the expansion of health, sanitation and education services to the rural population. Public sector development expenditures wiLl have to increase from about US$37 million per year in 1973-75 (5.1 percent of GDP) to about US$87 million per year in 1976-80 (7.2 percent of GDP). - 3 - 10. The successful execution of such a program will require a sub- stantial increase in the flow of external assistance. In the early seventies, when the level of public investment was still low, net external lending accounted for only a fraction, hardly more than one-tenth, of development expenditures. This share has grown to about 30 percent in 1975, with the remaining 41 percent financed from foreign grants, 16 percent from net inter- nal borrowing and 13 percent from savings. On the basis of disbursements of loans already committed and of likely future annual commitment levels of US$45-US$50 million from official lending agencies, it is expected the impor- tance of foreign lending will increase and that they will finance about 42 percent of development expenditures in the 1976-1980 period. Capital invest- ment grants from bilateral agencies are expected to finance 5 percent of development expenditures. Other official grants and private donations are expected to continue to represent an important, albeit declining, share of development expenditures (about 20 percent). Public savings would finance the remaining 33 percent. In order to increase public savings to the required level, the Government will need to adopt selective tax measures such as an increase of import duty collections which in recent years have lagged with respect to import growth. A strict control of extra-budgetary non-developmental expenditures will also be required. The Haitian Government declared recently its willingness to design and implement necessary reforms. 11. The growth of public savings will, nevertheless, be constrained by the need to increase substantially current budget expenditures in order to upgrade the quality of public administration and to meet sharply rising operating expenditures generated by new development projects in agriculture, education, health, road maintenance and other sectors. In addition, about one-fifth of public investment during the next five years will consist of projects without external financing. In view of these two factors and because of the extreme poverty of the country, its fragile balance of pay- ments and the constraints to raising additional fiscal resources (except to a limited extent by raising import duty collections) -- taxes already repre- sent about 13 percent of GDP, no mean achievement for a country as poor as Haiti -- the successful execution of the development plan will require external financing covering a high share of the cost of development proj- ects. In some sectors financing of part of local costs would be necessary. 12. Haiti's balance of payments deteriorated in 1974 and 1975. The deterioration in 1974 was largely explained by higher import prices. In 1975 the volume of bauxite, sisal and essential oil exports declined mainly as a result of the world recession. Food imports increased sharply because of the effects of the drought and in response to rising levels of consump- tion in the Port-au-Prince area. In addition, part of public investment (telecommunications sector) was financed without recourse to long-term borrowing. The situation improved somewhat in 1976 due in part to increases in the volume of coffee exports and the unprecedented level of world prices for this commodity. Net international reserves of the National Bank and those of the consolidated banking system increased from minus US$4.3 million and minus US$24 million respectively in September 1975 to US$11.6 million and US$0.9 million respectively as of April 1976. In August 1976 the IMF approved a stand-by arrangement with the Government. - 4 - 13. At the Haitian Government's request, a high level Joint Consulta- tive Committee was established in January 1976. It includes representatives of the Haitian Government and of multilateral and bilateral agencies actively providing assistance to Haiti. The Committee's role is to coordinate foreign assistance, both financial and technical. One of the major functions of the Committee, which convenes every six months, is to assess the availability of counterpart funds for investment projects financed by external official agen- cies, both required and likely to be available. The Committee is thus in a position to make recommendations to the Haitian Government on measures to be taken in order to ensure that public savings are adequate to meet local finan- cing requirements. 14. Haiti's resource gap is expected to remain wide in the medium term, reflecting import requirements associated with the Government's invest- ment program. There has been relatively little net foreign borrowing in the last decade and the debt service ratio is relatively low (less than 7 percent in 1975). Nevertheless, the balance of payments is likely to constitute a constraint to economic development in view of the limited growth prospects of Haiti's agricultural exports, and because export diversification through the development of manufacturing and tourism, is still at an early stage. In view of the country's poverty and the dependence of its balance of payments on world demand for a few commodities, Haiti will continue to require external assistance on concessionary terms for a long time if it is to achieve a significant improvement in the standard of living of its population. PART II - BANK GROUP OPERATIONS IN HAITI 15. The Bank Group has had six operations in Haiti. A US$2.6 million Bank Loan (141-HA) was made in 1956 for highway rehabilitation and a US$350,000 IDA credit (32-HA) was made in 1962 for highway maintenance. Two IDA credits - US$10 million (478-HA, Third Highway Project) in 1974 and US$20 million (556-HA, Fourth Highway Project) in 1975 - were made to Haiti for reconstruction of the Northern Road. In February 1976, a credit of US$5.5 million was made for a First Education Project and a credit of US$16 million was made in July 1976 for a First Power Project. Implementation of the Third and Fourth Highway Projects is making good progress, with disburse- ments ahead of appraisal estimates. The Project Unit for the Education Project is functioning well, although there are minor delays in preparing plans for school construction. The Power Project became effective on September 28, 1976. It is proceeding substantially on schedule. Annex II contains a summary statement of the Bank Loan and IDA credits as of August 31, 1976, and notes on the execution of ongoing projects. 16. USAID is financing a road maintenance program and the improvement of feeder roads. IDB is financing construction of the Southern Road and expan- sion of the Port-au-Prince harbour. France is financing construction of a road linking Jacmel to the Southern Road and is providing assistance to improve provincial airports. UNDP is financing the technical assistance - 5 - component of the Third Highway Project (with the Bank as executing agency) including training of local contractors in administration, engineering and management as well as a study of Haiti's transport sector. The Government organizes twice-yearly meetings to coordinate assistance to the transport sector. 17. IDB, Canada, France, and IDA are cooperating closely with the Government in projects aimed at meeting the most urgent needs in the educa- tion sector. IDB has lent for rural education and is providing technical assistance for the preparation of a rural primary education project. Canada is supporting a technical education project in Port-au-Prince and France is providing technical assistance for a new National Pedagogical Institute and teachers for technical and vocational schools. The First IDA Education Project is designed to begin to meet some of the highest priority needs for revision of primary school curricula, expansion of educational opportunities in rural areas, upgrading of teacher qualifications and support for adult literacy programs. 18. Aid agencies are also active in other sectors. IDB has made loans for agricultural and industrial credit, and for improvement of Port-au-Prince's water supply. It is providing assistance to the Government for the prepara- tion of integrated rural development projects in the Cul-de-Sac and Artibonite Plains. USAID has given assistance for Haiti's malaria eradication program, for community development and for modernization of the production and market- ing of coffee. USAID is also providing assistance for integrated agricultural development in two regions. The latter project will gradually be expanded to include other regions in Haiti; it will also provide assistance for control of soil erosion and for improvement of agricultural extension and research. Canada (CIDA) is supporting a rural development project in the southern peninsula and has undertaken a survey of Haiti's water resources for both irrigation and power potential. The Federal Republic of Germany is providing financial and technical assistance for regional development in the Gonaives Plain. UNDP is financing a number of programs including a survey of Haiti's mineral resources, and a study of the power sector, for which the Bank is Executing Agency. The study will consider the possibility of using Haiti's deposits of lignite as fuel for thermal plants and will review the potential for hydropower plants on the basis of the CIDA survey. Of special signifi- cance to Haiti's development in education, health and agricultural services, are the many and varied programs of the voluntary agencies. 19. The rural development project for which IDA financing is proposed, is consistent with the Government's regionalisation policy for agricultural development; it will be assisted, to some extent, by the ongoing reconstruc- tion of the Northern Road which will help in marketing part of the produce in the project area. The Project would (a) support the Government's efforts to modernize Haiti's agricultural sector and to improve the very low living standards of the rural population; (b) help Haiti formulate a development plan for the Northern Department; (c) help set up a regional development organiza- tion functioning on the basis of a multi-disciplinary approach; and (d) repli- cate, on the basis of experience acquired with the project, the decentralized - 6 - regional approach to rural development in other parts of the country. A second rural development project to extend the project concept may be possible in FY 1980. 20. WHO/PAHO, with UNDP financing, is undertaking the preparation of a water supply project in provincial towns for which the Government has requested IDA financing. The project, besides improving and extending existing water systems, would strengthen the technical and administrative capabilities of the Service Hydraulique, which in the future is expected to be a key agency in expanding water services in rural areas. The project is scheduled for appraisal in April 1977. 21. In transportation, selection of the components for a possible highway project in FY 1978 would take into account the recommendations of the trans- port study mentioned in paragraph 16 and the urgent need to develop the capa- bilities of Haiti's road maintenance service. 22. Depending on progress under the on-going First Education Project, a second project would continue the effort to extend primary education, particularly in the rural areas; to assist the Government to devise and adopt curriculum reform, to upgrade teacher qualifications and to provide resources for adult education programs. 23. The ongoing First Power Project is financing an expansion of diesel-fueled power capacity in Port-au-Prince to avoid power shortages in 1977. Additional power capacity will be required by 1979 or 1980 if short- ages are to be avoided by then. In the meantime, long-range solutions to Haiti's power needs are being considered by the UNDP Power Sector Survey mentioned above. 24. Prospective IDA operations take into account our present knowledge of Haiti's development needs and the ongoing and planned roles of other official lending agencies. A summary of loan commitments to Haiti is given below: Table 1: LOAN COMMITMENTS TO HAITI, 1966-76 (US$ million) IDA IDB Bilateral Agriculture - 5.7 6.0 Industrial Credit - 1.1 - Transport 30.0 64.7 8.2 Education 5.5 1.3 - Water and Sewage - 7.8 - Power 16.0 - - Health - 6.3 - TOTAL 51.5 86.9 14.2 - 7 - 25. The Bank Group's share in Haiti's publicly-guaranteed external debt outstanding and disbursed amounted to about 17 percent at the end of 1975. The Bank Group's share of external public debt service during 1975 was about 0.5 percent. Its share of outstanding publicly-guaranteed external debt would rise to about 32 percent by 1980; raising its share of external public debt service to about 7 percent. PART III - THE AGRICULTURAL SECTOR Agriculture 26. Agricultural value-added in 1975 was equivalent to 45 percent of GDP and provided a livelihood for 80 percent of the population. Agriculture earned almost 50 percent of merchandise exports in 1975. The main export crops are coffee, sugar, sisal and essential oils. Another major cash crop is rice. Agricultural production is concentrated in a few river valleys and coastal plains of which the most important are the Artibonite Valley and the Gonaives and Northern Plains. Domestic output does not meet the country's requirements of grain, edible oils and fats and dairy products; imports of these products are equivalent to about 92 percent of agricultural exports. As agricultural output grew at only 1.2 percent per annum between 1971 and 1975 while the rural population increased by 1.1 percent per annum, the rural areas have shown hardly any increase in per capita income. Over two-thirds of the rural population had a per capita income in 1975 ranging between US$25 to US$40, roughly one quarter of the country's GNP of US$180 per capita and below the threshold of absolute poverty. Land holdings are extremely fragmented (average of 1.2 ha) and production techniques are primitive, relying almost exclusively on hand tools. Heavy demographic pressure on arable land, over- cultivation and lack of soil conservation have resulted in deforestation and serious land erosion -- a process that may prove to be irreversible in some areas. Moreover, a number of factors, such as the absence of technical assistance to farmers, poor roads, inadequate marketing facilities and heavy taxation of export crops resulted in a shift from cash crops to subsistence agriculture. This shift has increased the imperviousness of farmers to modern agricultural methods. Government Strategy and Program 27. The Government's Five Year Development Plan recognizes that the country's economic and social development require urgent measures to stimulate agricultural output. The agricultural development effort will be decentralized to operate through regional organizations similar to those now operating in the Artibonite Valley and the Gonaives Plain. Increased agricultural credit and improved extension services will be made available to farmers organized into groups; improved technology and social services will be provided through rural and community development schemes and staff to implement these schemes will be expanded and recycled through further training programs. In support of this strategy, it is expected that development expenditures for agriculture - 8 - will increase from an annual average of US$4.9 million in the 1974-77 period, to about US$20.0 million in the 1977-81 period, rising from 9 to 25 percent of total development expenditures. Required funds exceed the Government's available resources and a considerable part will have to be provided by external concessionary aid. Agricultural Services 28. The Department of Agriculture, Natural Resources and Rural Devel- opment (DARNDR) is responsible for the formulation of agricultural policies, for rural extension, animation and credit, for agricultural research and for training. Rural primary and basic adult education are also provided by DARNDR. DARNDR has been unable to effectively discharge these responsibilities for lack of adequate funds and personnel. The Government's Five Year Development Plan envisages the reinforcement of DARNDR's budget and staff. Canada and UNDP/FAO are providing assistance to reinforce agricultural education. The Government has agreed to periodically review with IDA (a) the needs of DARNDR for agricultural technical assistance; (b) the relevance of agri- cultural training programs to ensure a nationally adequate supply of agri- cultural and other support staff and (c) their conditions of employment with a view to attracting and retaining qualified staff (Section 4.07 of the draft Credit Agreement). 29. Extension and Community Development. The Agricultural Extension Service (SVA) assists farmers in improving production techniques while the "Service d'Animation Rurale" (SAR) promotes community development and seeks to encourage the adoption of modern agricultural methods. Both services are severely understaffed with about 200 technicians who reach about 5 percent of farmers throughout the country. Improvement and expansion of these two services have been constrained by a shortage of funds, by limited transporta- tion and working facilities and by the need for a more practical orientation in their approach to their functions. 30. Irrigation. SICR - the Irrigation and River Control Service of DARNDR - serves the various gravity irrigation schemes in the country, con- trols the flow of water for irrigation and maintains irrigation systems. As with the other services of DARNDR, it is understaffed and needs additional budgetary support if it is to function effectively, particularly in main- taining irrigation works. 31. Credit: Agricultural credit is provided through two specialized Government agencies -- the Bureau of Agricultural Credit (BCA), and the Institute for Agricultural and Industrial Development (IDAI). The latter's lending is mostly for industry while its agricultural operations concentrated on farmers owning more than 5 ha of land. The combined agricultural portfolio of these two agencies was only US$593,000 in 1975. Farmers' indebtedness to non-institutional sources is widespread at annual interest rates of 120 per- cent or higher. 32. BCA is a bureau within the framework of DARNDR: its board is chaired by the Secretary of State for Agriculture and it is managed by a director appointed by the President of the Republic. BCA's staff of about 50 is distributed among nine regional offices and in 1975, the total volume of its lending operations was US$165,000 -- mainly for short-term crop production to groups of small farmers organized into agricultural credit societies (SACs). BCA's income in 1975 only covered 14 percent of operating costs; a government subsidy covered 70 percent, thus leaving a cash deficit of 16 percent. About 40 percent of BCA's portfolio consists of seemingly unrecoverable loans. BCA is currently receiving technical assistance from USAID including staff training, aimed at strengthening BCA's ability to provide credit to small farmers. 33. BCA's interest rate was increased from 8% to 9% in December 1976. The Government agreed (a) to maintain this rate for the first two years of the Project, and then, to raise the cost of BCA's loans to 11% p.a., and (b) within nine months from the date of signature of the proposed Credit, to furnish IDA with a program to reorganize BCA and strengthen its financial position and to implement agreed upon measures thereafter. (Sections 4.12 and 3.11 of the draft Credit Agreement.) 34. Prices and Marketing: Except for sugarcane, for which the Govern- ment sets the price, there is no regulation of agricultural prices. Most food crops are marketed by small operators who purchase produce in small lots and transport it to regional markets. The absence of storage, marketing and credit facilities, together with inadequate market information and poor transport facilities, result in sharp seasonal and geographic price varia- tions, sometimes attaining 100 percent of the base price. The price system has not provided sufficient incentive for increased production and the weak bargaining position of small farmers works to the advantage of exporters and middlemen. DARNDR has recently set up a Marketing Institute to help solve ma- jor marketing problems. The Institute will undertake studies to identify marketing bottlenecks of particular crops together with studies of storage, credit, transportation and price fluctuation problems. 35. Agricultural Training and Research. About 40 agronomists and 15 veterinary assistants graduate each year from the Faculty of Agronomy in Port-au-Prince; another 100 technicians are trained each year in agricultural schools in other parts of the country. However, while this output (except for veterinarians) is largely adequate, DARNDR's limited budget does not allow it to offer suitable positions to the major part of these graduates. Some agricultural research is carried out at Damien, near Port-au-Prince, but facilities and personnel are not sufficient. PART IV - THE PROJECT 36. In mid-1973, an IDB/FAO/IBRD agricultural sector survey mission identified several key regions of Haiti for agricultural development. As a - 10 - result of that study, the Government requested IDA to support a rural develop- ment project in the Northern Plain, a densely populated region with good agri- cultural potential. In January/February 1975, an FAO Cooperative Program mission identified the main components of the project which was appraised in April/May, 1976. Negotiations were held in Washington from November 18 to 24, 1976. The Haitian delegation was headed by Mr. Remillot Leveille, Secretary of State for Agriculture, Natural Resources and Rural Development. A report entitled "Appraisal of a Rural Development Project in the Northern Department of Haiti" (No. 1281a-HA dated December 13, 1976) is being distributed sepa- rately. The main features of the project and proposed credit are summarized in Annex III. The Project Area 37. The proposed credit would finance a project located in Haiti's Northern Department, covering the entire arrondissement of Cap-Haitien (500 km ), including the irrigation district of Quartier Morin, as well as the St. Raphael irrigation district in the Grande Riviere du Nord arrondissement. The project area comprises a total of 45,000 ha of agricultural land, of which 35,000 ha are presently under cultivation. Of the 3,900 ha in the two irriga- tion districts, only about half is currently irrigated and the irrigation systems need extensive rehabilitation. Rainfall is irregular and droughts are frequent. The groundwater potential of the Quartier Morin plain is extensive. At present, several privately owned wells north of Quartier Morin yield over 100 liters/second, pumped at reasonable cost from relatively shallow depths. 38. The population of the project area is 220,000 of which the rural population is 160,000; 92 percent of this rural population have incomes below the poverty threshold. Their poverty is compounded by malnutrition and endemic diseases, lack of health and school facilities and severely limited physical infrastructure such as roads, drinking water and electricity. The project will be implemented by the Organisme de Developpement du Nord (ODN), to which the proceeds of the Credit would be passed on as a grant. Land Tenure and Production 39. Small farms dominate agriculture in the project area; farmers culti- vating up to 6.5 ha -- who constitute the core of the target group under the project -- represent about 92 percent of all farmers and their holdings are about 53 percent of cultivated land. About 98 percent of all farms are on areas of less than 13 ha, accounting for 70 percent of cultivable land; there are 12 farms in the 65-130 ha category, another 12 in the over 130 ha category and one farm of about 400 ha. In order to curb speculation, the Government has recently enacted legislation prohibiting land transactions (unless prior government approval is obtained) in development areas, including the Project zone. In addition, the Government agreed (i) to determine and publicize fair land prices and rents in areas that will remain rainfed under the Project, and (ii) on completion of rehabilitation and expansion works in the irrigation areas under the Project, to determine and publicize fair land prices and rents for such areas (Section 3.05 of the draft Credit Agreement). Two-thirds of the cultivated area (23,000 ha) is used to grow food crops -- mainly corn, - 11 - beans, rice, sorghum, bananas and manioc; sugarcane, the main cash crop, is grown on almost 20 percent of the area (7,000 ha) and coffee, cocoa and citrus on the remaining area of 5,000 ha. Agricultural inputs, including credit, extension services, fertilizers, pesticides and selected seeds are practically non-existent. Except for sugar, about 80 percent of which would be exported, all incremental production would be consumed domestically. 40. With regard to the cultivation of sugarcane, the Government agreed that it would: (i) ensure adequate milling capacity in the Project area to process incremental sugarcane production; (ii) annually review, with IDA, sugarcane production and related milling capacity; (iii) not reduce the price of sugarcane without prior consultation with IDA; and (iv) periodically review the price of cane with IDA. In addition, ODN, in cooperation with a local sugarmill, would establish a yearly cutting and collection schedule for sugarcane and supervise its execution (Sections 4.09, 4.10 and 4.11 of the draft Credit Agreement). Project Description and Objectives 41. The main components of the project are: (1) rehabilitation and expansion of the Quartier Morin (2,000 ha) and St. Raphael (1,900 ha) irrigation districts and irrigation of up to 1,000 ha from deep wells in the Quartier Morin district; (2) rehabilitation and construction of 66.5 km of feeder roads and 27 km of farm access roads; (3) construction of up to 400 wells (to be operated by hand-pumps) and up to five small systems served by springs for rural potable water supply; (4) rehabilitation and improvement of two municipal markets and an abattoir in Cap-Haitien, construction of a municipal market in St. Raphael, and construction of administrative, storage and housing facilities; (5) agricultural credit to groups of small farmers and to individual farmers; (6) agricultural trials and improved seed multiplication; (7) agricultural extension, rural community development and animal health services; and (8) provision of a resident team of six experts (24 man/years) to assist ODN in Project implementation; short-term consultants (35 man/months) to help ODN with Project related special assistance, and one expert (3 man/years) in project monitoring and evaluation to help DARNDR monitor the Project and strengthen its nation-wide monitoring effort. - 12 - 42. In addition, the project would sponsor in-service training and training abroad for project staff, carry out studies for project implemen- tation and for the preparation of follow-up projects. Project Components Irrigation 43. The irrigation system of the Quartier Morin district would be rehabi- litated and expanded by 800 ha to 2,000 ha; this whole area would benefit from land leveling and the construction of gates, farm ditches and drains. The 1,900 ha of the St. Raphael district would also benefit from extensive rehabi- litation works. In addition, up to 14 wells would be constructed in the area North of Quartier Morin to irrigate about 1,000 ha. Rehabilitation, construc- tion and maintenance of the irrigation systems would be the responsibility of the SICR with assistance from the regional Hydraulics Service (SHRH). The World Food Programme (WFP) has indicated that it would provide food for about 1.8 million man/days of labor for irrigation system rehabilitation and con- struction. The Government agreed that the irrigation system would be ade- quately maintained throughout the 20-year life of the project and that water charges to be collected by SICR would be set at a rate sufficient to cover maintenance and operation costs and to recover about 50 percent of the invest- ment cost of rehabilitating and expanding the irrigation systems. The precise determination of water charges would be made in consultation with IDS (on completion of rehabilitation or expansion works) and would take into account the ability of project beneficiaries to pay reasonable charges (Section 4.05 of the draft Credit Agreement). Roads 44. The project includes the construction of 53.5 km of feeder roads in the arrondissement of Cap-Haitien, and 40 km of feeder and farm access roads in the St. Raphael area. A simple equipment fleet will be provided, together with necessary operating funcls and "food for work" from WFP for about 200,000 man/days of labor to carry out construction works. Confirmation that an ongoing WFP program in Haiti has been amended to provide food for 200,000 man- days of labor is a condition of effectiveness (Section 6.01(a) of the draft Credit Agreement). Tools to maintain and repair the equipment fleet of the National Road Maintenance Service workshop at Cap-Haitien would also be provided under the project to help ensure that project roads are adequately maintained. The construction of an all-weather 30 km road from Grande Riviere du Nord to the irrigation district of St. Raphael is of vital importance to the project: financing will be provided under the USAID project signed in June 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. Municipal Markets and Abattoir 45. The project provides for the complete renovation of the 5,000 m2 roofed central market at Cap-Haitien, including the provision of a 3-ton - 1 3 - cold storage room; the improvement of the "abattoir market", also at Cap- Haitien, and improvement of the municipal market at St. Raphael. The muni- cipal abattoir at Cap-Haitien would be completely renovated. The Government has agreed (Section 4.03 of the Credit Agreement) that these facilities would be properly organized, managed and maintained by the municipal authori- ties and that user fees collected would be sufficient to cover at least the cost of operating, managing and maintaining the facilities. Credit 46. Agricultural credit would be channeled by ODN through BCA, as its agent, to groups of small farmers organized into agricultural cooperatives (Societes de Credit Agricole--SACs) and to individual farmers who cultivate up to 15 ha in the rainfed areas and up to 10 ha in irrigated areas. Short-term sub-loans (up to one year) would cover the costs of fertilizers, pesticides, seeds, livestock medication and similar expenditures; and medium-term credit (up to five years) would be available for the purchase of draft-oxen, yokes, plows, sprayers, pumps and other farm implements. Both short and medium term credit would be made at BCA's current interest rate of 9% p.a. during the first two years of Project implementation. Sub-loans made in the last two years would cost 11% per annum. On an experimental basis, medium-term credit would also be available for the construction of simple grain storage facilities of a 3-4 ton capacity for individual farmers and up to 50 tons on a collective basis. BCA staff would be trained by, and work under the guidance of ODN's agricultural credit consultant. Three field offices will be established by BCA at Plaine du Nord, Quartier Morin and St. Raphael. Extension and Irrigation Services 47. Both the regional Agricultural Extensinn Service (SVA) and the Community Development Service (SAR) would be strengthened by the establishment of field offices in Quartier Morin, Plaine-du-Nord and St. Raphael, and provided with additional staff, transportation and working facilities. It is intended to provide one extension agent per 200 farmers and one community development agent per commune. The Government has agreed to expand the staff of SVA, SAR, and SICR, the Irrigation Services, in the Project area and to provide, throughout the 20-year life of the Project, adequate budgetary support for these services (Section 3.02 and 4.13 of draft Credit Agreement). The staff of SVA will be increased in the Project area to 33; while the SAR staff will be increased by 6. The staff and field agents for SICR would be expanded from the present level of 5 in the Project area to 65, to help control irrigation, maintain irrigation works and collect irrigation fees. Other Project Components 48. To satisfy part of the potable water needs in the Project area, up to 400 wells would be dug by hand to depths of up to 10 meters and equipped with hand pumps. In addition, five small water supply systems served by springs would be equipped with small concrete reservoirs each feeding into three or four public standpipes. The provision of potable water would serve a - 14 - total of about 3,000 families and lead to improved conditions of hygiene and to a reduction in the incidence of intestinal diseases. The Government would ensure that (a) the water supply systems and wells will be properly maintained during the life of the Project; and (b) maintenance costs will be met by the beneficiaries (Sections 4.04 and 4.08 of the draft Credit Agreement). 49. Livestock diseases in the area are controllable, but animal health facilities are poor. The project would strengthen the regional Veterinary and Livestock Services (SMV/SE) by providing two additional veterinary assis- tants; field offices in St. Raphael and the Plaine-du-Nord; medical supplies and veterinary equipment. While veterinary service would be provided to farmers free of charge, they would bear the cost of medicines and vaccines. The Government has agreed (Section 4.06 of the Credit Agreement) that it would cause the regional SMV/SE (i) to charge fees that would cover the cost of vaccines and medicines in the project area; (ii) to consult IDA on the level and method of collecting fees; and (iii) to provide continued control of major endemic diseases in the project area after the disbursement period of the proposed credit. 50. The project provides for comprehensive agricultural trials and seed production programs through the purchase of necessary equipment for land pre- paration, planting, harvesting, transport, seed processing and laboratory testing and for related operating expenses. Trials would be conducted by ODN in cooperation with a local sugar mill with regard to sugarcane, and with CRUDEM, a local religiously-sponsored cooperative for other crops. Seed production would be coordinated with CRUDEM and sub-contracted to individual farmers. Improved seed would be distributed, at cost, to farmers in the Project area. The trial and seed production programs would be discontinued at the end of the disbursement period as, by that time, a UNDP-financed trial and seed production center is expected to become operational in the project area. Three man-months of short-term consultant services would be provided to help resolve specific technical problems which may be encountered. Project Administration 51. The Government has established the Organisme de Developpement du Nord (ODN) in Cap-Haitien to plan, coordinate, supervise and execute the project. ODN would eventually be responsible for all rural development in the Northern Department. ODN is an autonomous agency under the President of the Republic, supervised by a Board chaired by the Minister of Agriculture and including representatives of the Ministries of Finance and Public Works, of the National Bank of the Republic of Haiti, of the National Planning Council, as well as the Director of ODN. A Regional Coordinating Committee, chaired by the Director of ODN and including representatives of relevant government agencies and of participating non-government bodies and farmers, would meet at least twice a year to review the work program of ODN. 52. ODN, headquartered in Cap-Haitien, will be staffed by a Director, a Deputy Director and seven resident experts; and assisted by short-term consul- tants. Qualifications and terms of reference of the resident experts and short term consultants would be subject to IDA approval (Section 3.03 of the - 15 - draft Credit Agreement). Appointment of the Director (already selected) and Deputy Director would be a condition of effectiveness of the proposed credit (Section 6.01(b) of the draft Credit Agreement). ODN will consist of two basic units: one for administration and accounting, the other for operations, including pl-nning, coordination and work supervision. ODN is expected to rely on existing public services to carry out specific project components and to coordinate their activities very closely. In addition, ODN will, with the help of consultants and other government agencies, carry out all planning, pre-investment and preparation work for project operations. It would be provided with funds to finance training of BCA and DARNDR staff assigned to the Northern Department as well as overseas training for ODN personnel. The Government will cause participating government agencies to (a) carry out their respective parts of the project; (b) submit their investment and operating budgets for work related to the Project to ODN; and (c) submit to ODN annual reports on the work carried out in the preceding year (Section 3.06 of the draft Credit Agreement). Resident Experts 53. The resident team of experts (para 52) would assist ODN in project execution, including the design of detailed project features and the training of staff and project supervision. The expatriate consulting team to be provided would include the Deputy Director of ODN and specialists in surface water irrigation, groundwater irrigation, agronomy, marketing/agricultural credit, and road construction. In addition, two qualified Haitians would serve as Community Development Officer and Chief Accountant, respectively. Each expatriate specialist would be provided with a suitably qualified counterpart who would replace the expatriate specialist at the end of the disbursement period. The six-man team (24 man-years) represents a relatively high consulting input. However, given the acute shortage of required tech- nical expertise in Haiti, this input is vital to the Project s success, particularly in view of the fact that ODN would be an entirely new agency. The cost of the team is US$1.1 million (US$4,600 per man-month). Bilateral Assistance 54. The Government of Haiti has requested bilateral assistance from France and the Federal Republic of Germany to finance the cost of the resident experts. The Association has been informed that, subject to formal approval, the development agencies of both countries are prepared, in principle, to provide this assistance. The Government has confirmed its understanding that, if bilateral assistance is forthcoming, the Association will cancel an amount of the Credit equivalent to the bilateral assistance received (up to US$2.0 million). Short-Term Consulting Services 55. Thirty-five man-months of short-term consulting services would be provided for project implementation and for preparation of a follow-up rural development project in the Northern Department. These short-term consultants would visit Haiti on an ad-hoc basis, as required by the Project; the cost of - 16 - US$7,000 per man-month is explained by the need 'for frequent short trips to and from Haiti. Project Monitoring and Evaluation 56. The Government agreed to appoint, within about a year, a project monitoring and evaluation expert to the Evaluation and Control Unit of DARNDR. The Government also undertook (i) to expand the staff of the Unit in consul- tation with IDA and (ii) to require the expert, with the assistance of Unit staff, to prepare annual progress reports on the Project and to furnish such reports to the Government and to the Association (Section 3.04 of the draft Credit Agreement). In addition to monitoring progress under the Project, the expert would assist the Evaluation and Control Unit in developing appro- priate methods, help train its staff and expand its activities nationwide. Audits 57. The accounts of ODN would be audited to standards acceptable to IDA (Section 4.01 of the draft Credit Agreement). Moreover, the accounts of government agencies undertaking work for ODN would be audited in respect of such work under regular government procedures. Project Cost and Financing 58. The total cost of the Project is US$13.4 million, of which US$8.2 million (61 percent) is in foreign exchange. The proposed development credit of US$10.0 million would finance 100 percent of foreign exchange costs and US$1.8 million (about 35 percent) of local currency costs. Local cost financ- ing is justified on the grounds indicated in paragraph 11. The local costs to be financed under the proposed credit would include operating expenditures (other than salaries) of ODN and the other participating agencies in the Project area and part of the construction, maintenance and credit components. The World Food Programme (WFP) would finance the purchase of food for about 2 million man-days of labor for Project civil works. Amendment of the existing WFP/Haiti program to allocate 200,000 man-days to meet the Project's require- ments in the first year of implementation would be a condition of effectiveness of the proposed Credit (Section 6.01(a) of the draft Credit Agreement). The Government would contribute US$2.0 million to finance salaries of ODN and other participating agency staff, as well as part of the local cost of the construction, maintenance and credit components. The Government funds, together with the proceeds of the IDA Credit (total US$12.0 million) would be passed on to ODN as a grant. ODN would use about 28 percent of these funds (US$3.4 million) for project implementation and would channel the remaining 72 percent (US$8.6 million) to the participating regional agencies. Cost esti- mates are based on mid-1976 prices; physical contingencies of 11 percent of base costs, and price contingencies of 37 percent have been included in the cost of the Project. The main cost elements of the Project are summarized in Annex III. If bilateral assistance is forthcoming and US$2.0 million of the proposed Credit are cancelled, IDA financing would be reduced to US$8.0 million, representing 60% of total expenditures and 73 percent of foreign exchange expenditures (see para 54 above). - 17 - Procurement and Disbursement 59. Contracts in excess of US$50,000 for civil works and for procurement of equipment and vehicles (aggregating about US$2.0 million) would be awarded on the basis of international competitive bidding in accordance with the Bank Group's Procurement Guidelines. Contracts of less than US$50,000 but over US$10,000 would be awarded on the basis of locally advertised competitive bidding, in accordance with Government procedures satisfactory to IDA. The bulk of civil works would be carried out on force account but local contractors would be retained for specific construction tasks. The lower of a preference of 15 percent, or the prevailing level of import duty, would be accorded for locally manufactured items; domestic contractors would be allowed a 7.5 per- cent preference. The resident team of experts and the short-term consultants would be retained in accordance with procedures acceptable to the Association. 60. The proceeds of the proposed credit would be disbursed over a four- year period to cover the cost of (a) 60 percent of irrigation works; (b) 90 percent of office buildings and staff dwellings, rehabilitation of three municipal markets and an abattoir, potable water facilities and road construc- tion; (c) imported vehicles, motorbikes and equipment (75 percent if locally procured); (d) 95 percent of agricultural credit disbursements; (e) 95 percent of project administration (except for salaries of local staff), and maintenance for vehicles and equipment; (f) the resident team of expatriate experts, the monitoring expert, short-term consultants and fellowships for Project staff. A schedule of estimated disbursements is given in Annex III. Project Benefits 61. About 4,000 rural families would benefit directly from the produc- tive components of the project, increasing their on-farm consumption by about 30 percent and their average annual family cash incomes from agricultural and livestock activities from US$60, on average, to about US$150. In addition, 26,000 rural families would increase their subsistence consumption by up to 20 percent and derive benefits from better roads and improved agricultural services, including improved seeds. Potable water would be supplied to some 3,000 rural families and about 60,000 urban inhabitants would benefit from better health standards and more competitive trading due to the rehabilitation of the municipal markets and the slaughterhouse. At full development, seven years after the project's inception, incremental production in the project area would be about US$2 million expressed in 1976 prices. 62. The project's economic rate of return is 14 percent. Sensitivity tests show that delay of project benefits by one year, or a 25 percent increase in the cost of construction, vehicles and equipment, or a 10 percent decrease in agricultural yields would reduce the rate of return to 10 percent. The financial rates of return of four illustrative farm models, each grouping several families, amounts to 18 percent for the rainfed area and vary from 29 percent to 48 percent in the irrigated areas. However, the Government's cash flow would remain negative through the life of the Project, taking into account repayment of the proposed Credit and annual operating costs of about - 18 - US$275,000, revenues from water charges (US$15,000), recovery of the cost of medicines and vaccines (US$10,000) for animal health and the export tax on incremental sugar production (US$140,000). No attempt has been made to quantify increased revenues from indirect taxes arising from the purchase of goods by projec: beneficiaries. Project Risks 63. There is a high degree of risk connected with the Project. Firstly, the task of ensuring effective coordination of the various agencies partici- pating in the Project will be a very difficult one. ODN, which will be entrusted with overall responsibility for Project execution, is a new and untried institution. Secondly, the weakness of Haitian public services could adversely affect maintenance of project facilities, credit recovery and the continuity of the rural development effort in the Project area. Thirdly, some 30,000 ha of cultivated land would be rainfed and dependent on climatic condi- tions in an area where a decreasing trend in precipitation has been observed in recent years. 64. To counter the institutional risks, ODN would be provided with substantial technical assistance to help it train its staff, coordinate the activities of other services and pursue carefully planned expansion and maintenance programs, and, DARNDR's Evaluation and Control Unit will be strengthened. Moreover, assurances were obtained from the Government that public services will be strengthened in the Project area during and after execution of the Project. In the final analysis, the success of the Project will depend on the Government's continuing support and on the dedication of Project staff in implementing it and in enlisting farmer participation. As regards climatic factors, the improvement and extension of irrigation through the Project would somewhat reduce farmers' dependence on rainfall. PART V - LEGAL INSTRUMENTS AND AUTHORITY 65. The draft Development Credit Agreement between the Republic of Haiti and the Association, the Recommendation of the Committee provided for in Article V, Section l(d) of the Articles of Agreement and the text of a draft resolution approving the proposed credit are being distributed to the Executive Directors separately. 66. Features of special interest of the draft Development Credit Agree- ment are referred to in paragraphs 28, 33, 39, 40, 43, 47, 52, 56 and 58. Special conditions for the Project are listed in Section III of Annex IV. 67. Special conditions of effectiveness would be: (a) that the Association has been informed by the World Food Programme that its ongoing Food for Work Program in Haiti, No. 2105, has been modified to provide 200,000 man-days of labor for the first year of the Project; and - 19 - (b) that the Director and Deputy Director of ODN have been appointed. 68. I am satisfied that the proposed credit would comply with the Articles of the Association. PART VI - RECOMMENDATION 69. I recommend that the Executive Directors approve the proposed credit. Robert S. McNamara President Attachments December 15, 1976 S t eRal t1 of1 i 0N 0 O. < O Br K . O O O 0\0 lA 2 _ O . O O O O O O O - ^ q s N .0 0 ru _  O o o r X O N {D >,, o o o v0 00 UW O \o O N W _ UX I _ e _ _ Ir N O V U _ F e VA {Sw _ VS _ _ _ ,/} oF # t1 el <1 : 00 0 0 00 . 00 0 00 . . . . 000 . : ° ° O - ° OD o  z * ' ' _ * vz  s o vm rs S _ N e V 4 _ ... S el S ' D hA O UE N n ov . , . . .. .. .... .......... .. .. O . . O O . . O . O .. .. . . . . O O O _, _ n os N _ w o .. O K Ck i - - -X ° - _ Z 111 .. H K B \ , _ @ 41 , r UE O V) > s .. .. O O . .... .. O Q O O Q O O O O O O O . . . . O O O _ |  ^ D *; o O . O O . o O O O O' X ^ O 4 _ > O  - D 0 _ , e o o _ 4 K K e _ _ w _ _ 6 _ 61 * ol 6, * e _ F _ _ @ el X mj i ^ QD o ° ° - ° f- . . ° ° . . . . . . . o O o o o . o o o o o O . . . . O O O- ^ N w - O O Oo K o 6, ov , N _ _ xU _ cx M _ .0 61 K @ O o. _ - Y > t * M> W .. Vl VX V V) t1 sr vl vx v vx - | v g Vl O Z D , o O O D O I * h} h} X X h W h 0 W - _ _ t < X O O J J J J V * Z O hJ SD Z - _ O O J hJ = O * O Vl = h _ O O n n or * X z s hl > O _ - hJ O 0 hJ hJ X D _ O I I r x h/ | O W V. < Z Vf _ >, _ < r  - -^ ' hl hJ hl h hl Z t O _ o < @ _ O < hl < O hl J4 V - O V O _ V} V1 * * h _ Q Z _ D 1:1 h, 1t J _ _ hJ - B V. s D D D D c w } - _ _ 1. 0 g J < CL Z > X F {7 7 Page 2 of 4 page. Unless otherwise noted, data for 1960 refer to soy year be-twe 1959 and 1861, for 1970 between 1968 ad 1970, ad for Moat Recent Estimate betwee 1971 and 1973 The Ivory Coast has bee ..e.lected saa bjective country for Heiti since both cotstriee hove. a olelr coltoral backgroond and the Ivory Coast h.s ...co.edd to atbhevlog a high rate of economIc grooth. HAITI 1960 /. 1962, lb Ratio of popoletilon tader 15 and 65 cud over to total labor forte. Ic Inclediog odtdwvs, /d 7-12 and 13-19 years of ago r-pecti-ely. 1970 Ia genie of populsttn coder 15 and 65 end soar to total labor forte; /b Inclodiog tdwiv esnd s..sta.tatnre, / 1966. - 7fl 7-12 and 13-19 years of age reap-onlosly. _ MOST RECENT ESTIMATE: Is 1974; lb 7-12 years of age; /c 1975. /d 1970-75 CAMERIOONl 1970 / 1964-66, /b 12-18 years of age, /c 13 years for fast Cmaroor HONDUweAS 1970 / RFitic of popalation -sdar 15 sod 65 and sear to total labor forts, lb 1967-hf, populatilon, /c Regiatered, not all practicing in the coutry, Id 7-12 ad 13-18 years of age respeti-vly, '5 Largely doe tomigration slots 1969 of El Sov-dore.ne res ident in Hoodcrae, popolation growth rate is lower tbey the rote of c-tura1 iteornoon IVORY COAST 1970 Is1965-70, /b Rotio of popolation cedar 15 sod 65 ond over to .toto lohot forco, /I Go-r-et only, /d 1964-66, 7- . 12-18 yeornof age, If Nos to inigration, cho growth rate is higher that tho rote f toaral ncr1 R7, Aogast 2, 1976 DfINrrfIlNS OF SOCihL. INDICATORIS 1,aod Area (thou bat) Opulataon Per nursing person - Popuation divided by nmaber of practicing Total TotalaI fc area tonpristog Iatd ares sod 1ni1od valey alecd felsole graduate nurses, 'trained' or "certified" nures., And! tacIt.- Moot -nets ctimate of ag -otosiae coed toop-raily orauiliory Por,o-ne cill: training or eaporleon.. p-rvocoly for crps, peot-rv, earhoc & hitohet gord-o or to 1o Popu].atiot per honpita1 bed - Ppnlation divided by nutober of honpital beda follow. ~~~~~~~~~~~~~~~~~avail.ble in public cod privote general and speota.lized hospital and rehabilitation centers; excludes nursing homes and eotabliohments for CNP Per .opit. (US$1 - GNP portacpito eutinatot at current eakbt price., o-stodial and preventive tore. caloulated by ease. cneversion method as World Sanob Atlos (1973-75 basis); 'Nrcptaspl f calorino (% of requirebments) - Conputed frm. energy l'.60, 1970 and 17175 data, equivalent of ntfood supplies available in country per capita per day; avoilableA supplies ro-priase dose.tic production, imports leos suporte, Populstito and vitsl otatisicos and changes i tos k; net euppliso exclde an-In feed, .oeds, quotitiss Popslatico fold-yr. a11il0n) - An or July first if cot -voihlo.b usead In food WooAesing and looses wIn distribution; rcqutrements were cr-raf of two ood-yeor estbnti et. 1960, 1970 cod 1975 daco. ontimated by FAO based on physiological needs for vaea Activity -x end health considering environmoental teomprnture, body weights, age and Population densite - per square he - Mid-year population pot square bile- sex disntributions of population, and allowing 10% for waste at househcld ott1er (100 hectares) of.q totl area level. -Poencnet~ e folst ion deneiy oroocroee fcro lood - coeputod 00 cbovo for Pe 'Piase, o ten(rlsordy Poencneto e ogiocrl.lad only. capita nt suplyoPfF ood per da; net suply cf food is defined as aobes; requiroemeto for all countries ensablished by USIDA Economic viral statistics Roearob~ Services prnvide for a moinimumcc albacore of 60 gruvo of tntel Crude birth rote par thoacond - A-ool lint birrhs por thous-od of nid- protein per day, end 20 grams of Animal and pulse protein, of ahich 10 Yeor population; to-ea-rtbotoaoego ending to 1060 and 1970, gram ohould be animal protein; these standards Aer lowe than those nf Iod tine-year ovrct.di.a In 1975 fnrc-ocrrano.ets -ti-te. 75 gramo of total protoin and 73 fra- of annua purotein a. An average Crd dthrtpetheod- A-coc1 dearhi por thousand If nid-yoa for tin -nrld, psdby PAi tn the Th,r de'I Pool Surrewy. population, ton-year arlthattin vorgos ending in 1960 cod 1970, and Pe"cttartispl from anIma and pulae - Puatcsupply af fond ftvs-year a.rerge ending it 1975 Cot ever retest tetisa to. derived rom.t aniel andfpubesn gram-s per day. ')A_ - Annual deaths per thousand in age groutp 1-i ..sr motalit rte(thou - ual deatha of infante under one year y-ars,tonhliff 7Atothis age grou p; suggested as an indicator of mal- of ge per thousand live1 brhsAnurnts info expectancy at birth (yro) - Ar-rage num-ber of years of lifo remain- tona birth; usualily five-your averages ending to 1960, 1970 And Education 1975 for developing coutries. X~~fte rol1mn rtto - oricry school - Ebnrollnent of all agee a iron rop-drdcctos rate - ieA...go tomoer of live daughtor- A woman will pecnte or prImar sho-gag poplation; inniodee aflidrs aged hear ic' her noro r-pr-dur tirn Portod if h.a sopori- en. ..r..ent age,- 4-11 years but adjusted for di.ffsrent lengths of primeary ed-ra on; spoetfac fertility rates; usually fir-year averages nd-ng t- 1963, for onotriso with universal edun.ton, our1l.not may .exed 100% 19/a end 1975 Is- U-cispil,g ceuntriss. sin. some pupil.- aro below or bhcoc the offinial school ago. '-'ltonoruh "tac M1 - total - Copc..nd Ino growth rates of nod- Adiuoted eurllment ratin - secnday chool - Computed ce ebave; second- yearpopuatio for1950hO, 960-1 cd 1903.cy edcatTn reursa eatfu er nf Appreved prlvary instru- Pnpflaiosgroth ate1%)- uban-.Coopoted like growth rate of total ties; provideo genral, vocatiocal or teac.her training instructions for Eultie;difren dejfimTlon of urban areas rep affect Compaer- pupils. of 12 to 17 years of age; cerreopondence cour... Are generally bil ity of, dta conng cotntrieo. exocluded. Ur'. P22 tin % aftot.l) - Ratio of urban to tonal population; duf- Years of schooling prvipded(first and secondn leves - Total years of forent definitions of urban srecs may affect conaaiiySfdt Choi;atscnaylv,vctoalntrton aybprily among coutries, or completely excluded. Age t-t-i,(Dgrcent) - Children (0-li years), working-age (15-64 years), Vocational enrollmsent (% of necondary) - Voeational inotitutiens inoludo and rtitredf (65 years cod over) as percentagee of mid-year population. technical, induatrial cr vitor programo~ whinch opera.te independently or A.. d..endency3,rati~,-JRatio of popuct,on under 15 end 6$ sod over to so tdeportoents of secondary.institutios th.. of ges 5 ug 54. Adlt lit.racy rte (% - Literate adults (able to road and write) an per- Etoosi dvedenty Ratio -Ri of popolotton under 1$ end 6$ and over centage of total adult population aged 1$ years and vrer. to the laber force to age-(group.of 15-Al4 years. Fam ly plnnin Tesers, (muenlot-v thou) - Cumultive sumber of ue ~ir ocuir of bir'th-control devices u,nder auspine- of nvarasool family "er:A57 per room (average) - Average number of persons per ruoe in occupied planning program since inception, conventional dwellings in urban areasI doellings occlude non-pensannt Family Planning - userst (% of rried no5)-Percentages of earned structure And umoccpied parts. wmnfchild-bearing age (15-Li years) who use birth-control de- Ocoijdteddellanowlotppdetr()-Ocpe oyonnldel vices to all married women to sae Aeg group. insi ra n claeswthout inside or outside piped water facilities as percsntago of all eccupied cheellingo. n ~~~~~~~~~~~~~~~~~~Atoness to electricity (% of all doell2.nos) - Co-nretional dwellings with Totalcbtr forcejsp p)-Rccmnll cietesnshnldigeetricity in living qoartern as percent of total dwellings in urban iarmedfores and un i i96Ied hot ocolodung hous ewives, students, etc.; and rtural areas. definitions to various countries ar sot corparable. Rucral dwellig cnnected to o1ectriolty ()-Computed as absvs for rura 1~~b.rfor" n agrc - - Agricultural labar foros (in farming, dwellin gs ny f5li~7Eihtngand fihig as percntage of total labor force. of labord force)1 -UInemployed are usually definod as persons Consumption oheaagb oeajb uto o nagvndy Radio receivenrstaor tho )- All types of receiers for radio bread- rema-ined.ot of A Job, and seeki ng wor'k for aspecified mnisioastott genrlp cprthousand of population; nonludee unlicansed period not ecceeding one week; may snot be ronparable between coun- receiver i ountries and in years, uhen reglotration of radio, note an trios doe to dlifferent definitions of unemployed and source of data, in effect; date for recet years nay not he compara.ble since vast roan- n.g., omplyoynuot office etantti-, amplo survys, compulsory 55a-trios bholiehod licens.ing. ploytrect inea-ane..P egr care or thou po) - Passenger oars comprise motor cars noating Throe, distribution - Percsntage of private income (bath in -&sh and vehicles. pros Ic~e muacs ere dmltr kInd) received by richest 5%, richest 20%, poorest 20%, and poorest Elentricitj'(w/ prcn - Anoual conumption of industrial, co-e- ii! of houtholdo. 'TflT7 'i aW prowt7ol-tricitar in kilowtt-hour per capita; ge- orally hosed on production data, without allowane for 1-s-n in grids Disltrlbutise of len ossrohip-Pevntges of land owned bj weeltibivt but allowing for imports and eaports of electricity. 10 nd poorest 10% e land'.5 owners. Ne it(lrprcp - Per capita annual -ones-qtion in kilogr-e M~~~~~gd %rtrig2n -t~~~~~~~~~~ikUted frym domestic production plus rat lasPort of newsprint. on or aca r opulation divided by numbar ef pr-ticing p"lfiiiWs)iqualiri rona n- edical school at umversity level. Page 3 of 4 pages ECONOMIC INDICATORS GROSS NATIONAL PRODUCT IN 1975 ANNUAL RATE OF GROWTH (%, constant prices) US$ Mln. 1960 -67 1967 -72 1972-1975 GNP at Market Prices 870.5 100.0 0.1 2.9 3.0 Gross Domestic Investment 98.0 11.3 -3.0 18.5 12.5 Gross National Saving 55.1 6.3 -16.5 44.2 -23.0 Current Account Balance -2.8 -0.3 Exports of Goods, NFS 118.3 13.6 -2.2 9.2 -1.2 Imports of Goods, NFS 154.4 17.7 0.2 7.0 11.0 OUTPUT, LABOR FORCE AND PRODUCTIVITY IN 1975 Value Added Labor Force V. A. Per Worker US$ _Mln. Agriculture 398.3 45.4 Industry 150.0 17.1 Services 329.0 37.5 Unallocated Total/Average - 877.3 100.0 lOOO 100.0. GOVERNMENT FINANCE General Government 2/ Central Government G Mln.) % of ODP ( __ Hn.) % of ODP 1,°75 r9TP5 l774-5 197S l975 17 b Current Receipts 489.4 3/ 11.2 3/ 10.5 475.4 10.8 10.2 Current Expenditure 456.4 -/ 10.4 41 9. E4/ 452.6 10.3 9.8 Current Surplus 33.0 07 0,7 22.8 7 Capital Expenditures ./ 288.4 6.6 5.7 213.9 4.9 4.1 External Assietance (net)4 206.3 4.7 3.1 182.0 4.1 2.8 MONE!. CREDIT and PRICES 1970 1971 1972 1973 1974 1975 ffilion C outetanding end period: - Money and Quasi Money 198.2 251.2 321.1 408.4 530.7 595.5 Bank credit to Public Sector 7/ 189.2 202.5 215.3 244.7 331.6 415.6 Bank Credit to Private Sector 65.3 78.5 92.1 170.6 310.6 451.3 (Percentages or Index Numbers) Money and Quasi Money as % of ODP 9.7 11.3 13.8 14.4 14.8 13.6 General Price Index (1965 - 100) 109.8 112.8 116.2 145.8 164.3 201.6 Annual percentage changes ins General Price Index 3-3 2.8 3.0 25.5 12.7 22.7 Bank credit to Public Sector --2.1 7.0 5.4 13.7 35.5 25. Bank credit to Private Sector 9.9 20.2 19.6 85.2 82.0 45.3 NOTE: All conversions to dollars in this table are at the average exchange rate prevailing during the period covered. 1/ Data refers to fiscal years ending September 30 2/ Consolidated accounts ofR thr Cenfral Government and Public Enterprises 3/ Includes net operating surpluses of public corporations 1 Includes net operating deficits of public corporations 5/ Includes technical assistance expenditures 6/ Net loans and grants 7/ Includes IDB and IDA credits to the public sector channeled through the National Bank 8/ GDP deflator not available not applicable Page 4 Ot b pages TRADE PAYMTS AND CAPITAL FLOW 1S BALANCE OF PAYMENTS MERCHANDISE EXPORTS (AVERAGE 1973-75) 1973 1974 1975 US $ Mln % (Millions US $) Exports of Goods, NFS 78.0 115.2 118.3 Coffee 21.0 25.8 Imports of Goods, NFS 95.7 134.9 154.4 Sugar 4.7 5.8 Resource Gap (deficit = -) _-197 -36 Essential Oils 5.0 6.1 Resource Gap ..j1 Sisal 3.0 357 Interest Payments (net) -o.6 -O.6 -0.5 Bauxite 7.9 9.7 Small Industries 57.9 46.5 Other Factor Payments (net) -3.8 -5.3 -6.3 Net Transfers 19.1 26.9 40.1 All other comnodities 2.0 2 4 Balance on Current Account -3'. 1.3 -2.8 Total 81.5 100.O Direct Foreign Investment 7.0 7.9 2.6 EXTERNAL DEBT, DECEMBER 31. 1975 Net MLT Borrowing Disbursements 3.2 8.4 22.4 US $ Mln Amortization -6.1 -4.8 -6.2 Subtotal -2.9 3 16. Public Debt, incl. guaranteed 62.0 Non-Guaranteed Private Debt Total outstanding & Disbursed 62.0 Other itema n.e.i -2.2 32.7 -39.5 3/ Increase in Reserves (+) -1.1 -19.9 -2,5.5 DEBT SERVICE RATIO for 1975- Gross Reservea 20.1 14.7 12.8 Net Reserves 19.3 -o.6 -24.1 Public Debt, incl. guaranteed 5.7 Non-Guaranteed Private Debt Fuel and Related Materials Total outstanding & Disbursed 5.7 Imorts 4.3 12.4 11.2 Exports IBRD/IDA LENDING, ( Sept,30,1976) (Million US $): RATE OF EXC1ANGE IBRD IDA Throuh - 1971 Since - 1971 Outstanding & Disbursed 32-5 usG 1 00 _ US $u0.20JS $ 1.00 - G5.0 Outstanding incl. Undisbursed 51.8 r, .00 US$ 0.20 G 1.0O= US $0.20 ttaig5. 1/ Data refers to fiscal years ending September 30. September 30 :/ Ratio of Debt Service to Exports of Goods and Non-Factor Services. , not available . not applicable Country Programs I Latin America and the Caribbean Regional Office October 26, 1976 ANNEX II Page 1 THE STATUS OF BANK GROUP OPERATIONS IN HAITI A. STATEMENT OF BANK LOANS AND IDA CREDITS (as of October 31, 1976) Loan or US$ Million Credit Amount (less cancellations) Number Year Borrower Purpose Bank IDA Undisbursed One loan (1956) and one credit (1962), both fully disbursed 2.6 0.40 478-HA 1974 Republic of Haiti Highway 10.0 0.8 556-HA 1975 Republic of Haiti Highway 20.0 9.5 618-HA 1976 Republic of Haiti Education 5.50 5.5 645-HA 1976 Republic of Haiti Power 16.00 16.0 Total 2.6 51.90 of which has been repaid 2.6 Total now outstanding Nil 51.90 Amount sold 0.4 of which has been repaid 0.4 Total now held by Bank and IDA - 51.90 1/ Total undisbursed 31.8 B. STATEMENT OF IFC INVESTMENTS (as of April 30, 1976) No IFC investments have been made in Haiti. 1/ Prior to exchange adjustments. ANNEX II Page 2 C. PROJECTS IN EXECUTION 1/ Credit 478: Third Highway Project: USIO million Credit of June 6, 1974; Effective Date: September 9, 1974; Closing Date: December 31, 1977 Civil works construction under the Third Highway Project, including reconstruction of about 78 km of the Northern Road between Port- au-Prince and Gonaives, and the Estere bridge, a major structure on the road, is virtually complete about one year ahead of schedule. The UNDP- financed technical assistance for transport planning and domestic con- tractors, which was also part of the project, was completed in draft in July 1976, with a delay of about four months. The results of the study were used to formulate a five-year development plan (1976-81) for the transport sector of Haiti. Credit 556: Fourth Highway Project: US$20 million Credit of June 11, 1975; Effective Date: October 8, 1975; Closing Date: December 31, 1978 Physical progress under the Fourth Highway Project, in- cluding about 170 km of the Northern Road and a new Sonde bridge, has been excellent. According to current estimates the civil works element of this project should be completed by mid-1977, about six months ahead of the original implementation schedule. The Ministry of Public Works is setting up a transport planning unit and carrying out a program of annual traffic counts, in compliance with the Credit Agreement. Performance of the Ministry of Public Works in highway maintenance has, in general, fallen short of expectations. Joint efforts are being made by the external agencies involved in financing transport projects, to aid the Government of Haiti in this area. 1/ These notes are designed to inform the Executive Directors regarding the progress of projects/investments in execution, and in particular to report any problems which are being encountered, and the action being taken to remedy them. They should be read in this sense, and with the understand- ing that they do not purport to present a balanced evaluation of strengths and weaknesses in project execution. ANNEX II Page 3 Credit 618: First Education Project: US$5.5 million Credit of February 27, 1976; Effective Date: May 20, 1976; Closing Date: June 30, 1980 The project is slightly behind schedule because of delays in issuing the civil works contract. Working drawings for the two rural school prototypes are being reviewed and preliminary designs are being prepared for the teacher training schools. The prequalification of civil works contractors is expected to be completed by October 1976; bidding documents for cement, steel and part of the equipment under the project are being reviewed by IDA. A revised draft for teacher training curricula has now been completed and is being reviewed by IDA. The Project Unit is discussing a technical assistance program of 30 man/ months with UNESCO to cover administration, teacher training and statistics. Credit 645: First Power Project: US$16.0 million Credit of July 2, 1976; Effective Date: September 28, 1976; Closing Date: September 30, 1978 The turnkey contract for the power station has been awarded and the project is proceeding substantially on schedule. ANNEX III Page 1 HAITI: RURAL DEVELOPMENT PROJECT CREDIT AND PROJECT SUMMARY Borrower: The Republic of Haiti Beneficiary: Government would make the proceeds of the IDA credit available to Organisme de Developpement du Nord (ODN) as a grant. Amount: US$10.0 million equivalent Terms: Standard IDA terms. Project Description: (i) The rehabilitation and expansion of two gravity irrigation systems at Quartier Morin (2,000 ha) and St. Raphael (1,900 ha) and well irrigation of another 1,000 ha; (ii) rehabilitation and construc- tion of 93.5 km of feeder and farm access roads; (iii) digging of up to 400 shallow wells and construction of up to five water supply systems based on springs for rural potable water supply; (iv) extension of agricultural credit facilities to cooperative groups of small farmers and to individual medium-sized farmers; (v) carrying out agricultural trials and seed multiplication prog- rams; (vi) rehabilitation and improvement of three municipal markets and an abattoir; (vii) training of local staff and (viii) provision of improved agricultural extension, rural community development and animal health services. Estimated Cost: T'he estimated total cost of the project is US$13.4 million equivalent, with a foreign exchange compo- nent of about US$8.20 million. ANNEX III Page 2 US$ '000 Percent of Local Foreign Total Base Cost Irrigation 1,960 1,323 3,283 36 Agricultural Credit 186 839 1,025 11 Trials and Seed 31 52 83 1 Extension Services 377 146 523 6 Animal Health 23 66 89 1 Markets and Abattoir 38 123 161 2 Roads 346 901 1,247 14 Potable Water 52 120 172 2 Project Administration 332 1,895 2,227 25 Project Monitoring 53 178 231 2 Total Base Cost 3,398 5,643 9,041 100 Physical Contingencies 505 513 1,018 11 Price Contingencies 1,238 2,055 3,293 37 Sub-total 1,743 2,568 4,311 48 Total Project Cost 5,141 8,211 13,352 - Financing Plan: Government - US$ 2.00 million equivalent IDA - US$10.00 million equivalent 1/ WFP - US$ 1.40 million equivalent 2/ Estimated Disbursements: IDA Fiscal Year (US$ Millions) FY78 FY79 FY80 FY81 Annual 2.4 2.4 2.8 2.4 Cumulative 2.4 4.8 7.6 10.0 Procurement: Contracts in excess of US$50,000 for buildings, drilling of irrigation wells, and purchase of vehicles and equipment would be awarded following international competitive bidding in accordance with Bank/IDA Guidelines for Procurement. "Food for Work" would be obtained under WFP procedures The bulk of civil works for irrigation rehabilita- tion/expansion and road construction would be done on force account, though small local contractors would be hired for specific tasks. 1/ The Government of Haiti has requested bilateral assistance from France and the Federal Republic of Germany to finance the technical assistance component of the Project. When this assistance becomes available, US$2.0 million of the IDA credit would be cancelled. 2/ Two million man-days of unskilled labor in the form of "food for work." Page 3 Technical Assistance: (i) A resident team of experts to assist ODN in project implementation would be hired. The cost of these experts (24 man-years) is about US$4,600 per man-month. (ii) Thirty-five man-months of short-term consult- ing services would be provided to help ODN with specific aspects of project implementation and to prepare development plans for the future. The cost of these short-term services is about US$7,000 per man-month. (iii) Three man-years of expert assistance would be provided to assist the Department of Agriculture, Natural Resources and Rural Development in project monitoring and evaluation (US$4,600 per man-month). Rate of Return: 14 percent. Appraisal Report: Report No. 1281a-HA dated December 13, 1976. ANNEX IV Page 1 HAITI: RURAL DEVELOPMENT PROJECT SUPPLEMENTARY PROJECT DATA SHEET I. Timetable of Key Events (a) Project Identified by: An agricultural sector study jointly undertaken by IDB, FAO and IDA in mid-1973 and an FAO/CP mission in July 1974 (b) Project Prepared by: Government and an FAO/CP team from February to June 1975 with the assis- tance of Bank staff (c) First Presentation to IDA: June 1975 (d) First IDA Mission to Consider the Project: October 1975 (e) Departure of Appraisal Mission: April 19, 1976 (f) Completion of Negotiations: November 29, 1976 (g) Planned Date of Effectiveness: May 1977 II. Special Bank Implementation Actions None. III. Special Conditions The Borrower (Republic of Haiti), has undertaken to: (i) (a) cause the Organisme de Developpement du Nord (ODN) to be managed by a Director and a Deputy Director with powers and responsibilities satisfactory to the Association and, not later than July 1, 1977, to employ additional specialists, including six expatriate experts, as shall be agreed with the Association; (b) promptly appoint qualified nationals to serve as counterparts to the expatriate experts, and (c) to employ consultants for such assignments as shall be agreed between the Borrower and IDA (paragraphs 52, 53, and 55); ANNEX IV Page 2 (ii) increase agricultural support staff in the Project area and maintain them at levels agreed with IDA (paragraph 47); (iii) appoint a Project monitoring and evaluation expert to the Evaluation and Control Unit of the Department of Agriculture, Natural Resources and Rural Development and expand the staff of such Unit in consultation with IDA; require the expert, with the assistance of Unit staff to prepare annual reports on the progress of the Project and cause the Unit to furnish such reports to the Government and IDA (paragraph 56); (iv) (a) take appropriate measures to determine and widely publicize fair prices for land acquisition and for rentals in the zones of the Project Area which will remain rainfed under the Project; (b) unless the Government's prior approval be obtained, prohibit land transactions in the irrigated zones of the Project Area, and (c) on completion of irriga- tion, rehabilitation and expansion works, determine and widely publicize fair prices for land acquisition and rentals in the irrigated zones of the Project area (paragraph 39); (v) cause each of the Borrower's agencies participating in the Project to submit to ODN, for its approval by July 1 of each year, its budget requirements and operating plans for the succeeding year and, by October 31 of each year, a report on activities carried out in the previous year (paragraph 52); (vi) grant ODN the powers necessary and cause it to coordinate the activities of participating government agencies (paragraph 52); (vii) (a) furnish IDA, within 9 months of the date of signature of the Credit Agreement, a program regarding the reorganization and financial strengthening of the Bureau of Agricultural Credit (BCA), and (b) maintain BCA's current interest rate of 9 percent per annum for the first two years of the Project; thereafter, the cost of BCA's credit will be raised to 11 percent per annum (paragraph 33); (viii) cause the municipalities of Cap Haitien and St. Raphael to adequately maintain and operate their marketing and slaughter- ing facilities under the Project and to ensure that the muni- cipalities collect user charges sufficient to cover the operating, maintenance and administrative expenses of such facilities (paragraph 45); (ix) cause the Irrigation Service to maintain the irrigation facilities under the Project; to determine, in consultation with the Borrower and IDA the water charges to be paid by users; such charges should also cover operating and ANNEX IV Page 3 miaiintenance costs and about 50 percent of investment costs. The Irrigation Service will collect the charges so determined (paragraph 43); (x) cause the regional Livestock and Veterinary Services to (a) collect animal health costs for vaccines, drugs and medications; (b) determine the level of these costs and their method of collection in consultation with EDA and (c) control endemic diseases in the Project Area (paragraph 49); (xi) cause the Department of Agriculture, Natural Resources and Rural Development, beginning one year after signature of the Credit Agreement, to review annually (a) the Department's technical assistance needs; (b) the adequacy of the Depart- ment's training programs and the adequacy of the conditions of employment of agricultural support staff, and (c) exchange views with IDA on the results of such reviews (paragraph 28); (xii) ensure that the maintenance costs of the drinking water supply systems and wells included in the Project are borne by the beneficiaries thereof (paragraph 48); (xiii) (a) establish annual cutting and collection schedules for sugarcane and cause ODN to assist the Borrower in supervising the effectiveness thereof; (b) not reduce the supplier price of sugarcane without prior consultation with IDA: (c) period- ically review and exchange views with IDA on such price; and (d) ensure that the sugarcane milling capacity in the Project Area is sufficient to process the increased production result- ing from the Project and exchange views with IDA on the adequacy of such capacity (paragraph 40); (xiv) confirm that the World Food Programme has amended its ongoing Food for Work Program in Haiti, No. 2105, to provide 200,000 man-days of labor for the Project's first year of implemen- tation (Condition of Effectiveness, paragraph 58); and (xv) appoint the Director and Deputy Director of ODN. (Condition of Effectiveness, paragraph 52). 72- 20' 72-10' ~ '\UI A*i _'t 9aq,7 HAITI t7 50- ' ATZANrIC RURAL DEVELOPMENT PROJECT T,' I, OCEAN X IN THE NORTHERN DEPARTMENT w ? S~~~~~~~~~~~~~~~~~~~~~~~~~~~N 0 2~ 70'' ' J 1 X- rtMargotr-PS aint MIchel O ODlayo , ________________________ O Aurea Anirnein Poervial for Wel Irgai. 9 20 ~ ~ ~ ~ ~ j Poorly~~~~I Dand Areo 0, See X -~AP- CA itllE * Irrigotion Services ALTITUDES in ers: .. N o no A .mA z V Veterinary Services S.. 1000 or More - Main Rovdu -- o so > ~oerA SRIM Agricultural Credit (B.C A I 800 - 100Q Secondary RP- - KBloeter it Ar * Agricultural Triols [1 1 600 - ROD0 Commune Rc i - - imsmolrorim ol r l 24 I O Sugorcone Tril GI-_- 0 - 600 0 Ccnmmune C \ < . ~~+ Seed Produc-on _ 0 x. Dopadrinenil Iouuiory I pase _ 0Ta-AUt 9e U Mnnnicipol Abbattoir 00 4 00 lOgQ_ 15ht Nn mliirrniarsl 1 *'I R 1 s ~ - Boirriries of ProinctArear of _Cr~ Aa SO 72' 70' 72' 10A:4 ii C=re+beoe So= y I _ I ____ '4 _ §1 _~~~~~~~~~~~~~~~~~~~~Ca,co