Document of The World Bank FOR OFFICIAL USE ONLY co00pyl ReportNo. P-35%L-GM REPORT AND REODMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT OF SDR 8.9 MILLION TO THE REPUBLIC OF THE GAMBIA FOR THE SECOND AGRICULTURAL DEVELOPMENT PROJECT April 25, 1984 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Currency Equivalent Currency Unit = Dalasis 1 Dalasi = US$0.3 3.5 Dalasis = US$1.0 1 SDR = US$1.06 Weights and Measures 1 hectare (ha) = 2.47 acres 1 kilogram (kg) = 2.2 pounds 1 metric ton = 2,204.6 pounds 1 sq. kilometer = 0.386 square miles Abbreviations GCU = Gambia Cooperative Union GPMB = Gambia Produce Marketing Board NSC = National Seeds Council PCC = Project Coordination Committee PCU = Project Coordinating Unit PPMU = Project Planning and Monitoring Unit (MOA) RDP = Rural Development Project (Cr. 644-GM) SMU = Seed Multiplication Unit Fiscal Year July 1 - June 30 FOR OFFICIAL USE ONLY REPUBLIC OF THE GAMBIA SECOND AGRICULTURAL DEVELOPMENT PROJECT Credit and Project Summary Borrower: Republic of The Gambia Beneficiary: The Gambia Ministry of Agriculture (MOA) ,Amount: SDR 8.9 million (US$9.4 million equivalent) Terms: Standard On-lending Terms: Up to SDR 3.0 million (IFAD and IDA) and US$1.6 million (Italian Aid) would be re-lent to the Gambia Cooperative Union (GCU) for 10 years, interest free. The foreign exchange risk would be borne by the Government. Project Description: The proposed project would: (i) consolidate progress made under the Rural Development Project (Cr. 644-GM) and address constraints which emerged during its implementation; (ii) assist the Government with major sectoral reforms; and (iii) improve production of rainfed export and food crops. Specifically, the project would: establish a project coordinating unit and a monitoring and evaluation unit within the MOA; strengthen the research capacity at the Sapu Agri- cultural Station; strengthen the existing Seed Multi- plication Unit (SMU) and establish a comprehensive national seed program; assist the reorganization of the Ministry of Agriculture and strengthen the country's cooperative structure. The project would also support the Government's efforts to phase out fertilizer subsidies by the end of FY88 by financing part of the fertilizer imports. Two special accounts would also be established under the project to expedite disbursement. Benefits and Risks: Principal quantifiable benefits expected from this project would be derived from the incremental produc- tion of groundnuts, cotton and food crops. Annual incremental production at full development would be about 13,200 tons of groundnuts, 2,100 tons of cotton and 7,900 tons of cereal. Non-quantifiable benefits include improvement in agricultural institutions. There are no major technical risks associated with the project as all technical proposals have already been effectively demonstrated in The Gambia or other ecologically similar West African areas. However, a risk remains of a decline in crop production due to 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. - ii - either natural calamities (e.g., drought), or a decline in export prices, or fertilizer use below recommended levels resulting from the gradual phasing out of subsidies. Estimated Project Costs: 1/ (US$ Million) Local Foreign Total 1. Crop and Farm Development 0.7 3.2 3.9 2. Extension and Training 0.7 2.5 3.2 3. Agricultural Research 0.7 1.2 1.9 4. Seed Multiplication Unit 0.5 0.9 1.4 5. Cooperative Development 0.7 1.1 1.8 6. Project Coordinating Unit 0.2 0.6 0.8 7. Project Monitoring & Evaluation Unit 0.2 0.3 0.5 8. Refinancing of PPF 2/ - 0.7 0.7 Total Baseline Costs 3.7 10.5 14.2 Physical Contingencies 0.2 0.5 0.7 Price Contingencies 1.5 2.4 3.9 Subtotal Project Costs 5.4 13.4 18.8 Recurrent National Fertilizer Imports - 10.2 10.2 (for three years) Total Project Costs 5.4 23.6 29.0 1/ Net of taxes which would be waived. 2/ The PPF advance finances consultant architects for the project's civil work program, the financial and cooperative advisors; and The Gambia Cooperative Union's (GCU) credit program. It eLlso provides bridging financing for SAPU's research and seed multiplcation program. - iii - Financing Plan Percentage of Foreign Local Total Total Project Cost -------- US$ million --…-_____ IDA 6.4 3.0 9.4 32 IFAD 4.3 0.7 5.0 17 Italian Aid 8.6 0.9 9.5 33 Government 4.3 0.5 4-8 17 Farmers 0.3 0.3 1 Total 23.6 5.4 29.0 100 Estimated Disbursements US$ million FY85 1/FY86 FY87 FY88 FY89 FY90 FY91 Annual 1.6 1.2 1.7 1.8 1.5 1.0 0.6 Cunmulative 1.6 2.8 4.5 6.3 7.8 8.8 9.4 Economic Rate of Return: 23% Staff Appraisal Report: No 4416-GM dated April 20, 1984 Map: IBRD No. 16862 Project Area 1/ Includes an advance of US$670,000 under the Project Preparation Facility. INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF THE GAMBIA FOR THE SECOND AGRICULTURAL DEVELOPMENT PROJECT 1. I submit the following report and recommendation on a proposed Development Credit to the Republic of The Gambia for SDR 8.9 million (US$9.4 million equivalent) to help finance the Second Agricultural Development Pro- ject. The Credit would be on standard IDA terms. Additional external financ- ing for the project would be provided by a loan from the International Fund for Agricultural Development (IFAD) in the amount of SDR 4.8 million (US$5 million equivalent) repayable over 50 years including 10 years of grace with a service charge of 1% annually, and by a grant from the Italian Department for Development Cooperation in the amount of US$9.5 million equivalent. PART I - THE ECONOMY 2. The latest economic report on The Gambia, dated December 23, 1980, has been circulated to the Executive Directors. Its conclusions, updated by the findings of subsequent missions, are reflected in the following assessment of the state of the economy and its prospects. Country data appear in Annex I. The Land and its People 3. The Republic of The Gambia comprises a narrow east-west strip of land bordering the Gambia River and surrounded on three sides by the Republic of Senegal. The terrain is extremely flat, maximum elevation being only 35 meters above sea level. Three regions can be distinguished from the mouth of the River inland: the mangrove belt, which extends upstream for over 240 km; the "bantofaros", areas that become swamps in the rainy season and parts of which are under rice cultivation; and, finally, the plateau of the eastern portion of the country which is intensively cultivated in groundnuts, millet, and other crops. 4. The population (682,000 in 1982) is predominantly rural, some 80% of the work force being engaged in agriculture and animal husbandry. Average population density is 90 persons per km of arable land and reaches higher level in some areas. Population pressure and persistently disappointing harvests have in recent years prompted emigration to urban districts and aggravated urban employment, particularly in and around the capital and commercial center of Banjul. -2- Structure of the Economy 5. The Gambian economy is traditionally centered on the production of groundnuts, its major foreign exchange earner. Apart from groundnuts, cereals (millet, sorghum, and rice) and livestock represent the principal products of the agricultural sector. Despite the importance of agriculture in terms of the share of the work force engaged, its importance in relation to the economy's overall output has declined since the mid-1970s and currently represents only about 30% of GDP. The trade and transport sectors, reflecting the natural role of The Gambia as an entrepot for neighboring countries together account for another 30% of the country's output. Tourism, though the object of heavy investment in the past few years, has shown disappointing results and presently accounts for less than 3% of GDP. Industrial activity is limited to two groundnut crushing mills and a few modest manufacturing enterprises supplying the domestic market, all of these located in Banjul. Economic Performance and Financial Developments 6. Th-oughout the later 1970s and up through 1981, major shortfalls in groundnut production led the Gambian economy through a period of stagnation, average annual growth of 'he economy as a whole being negligible over the four-year period, 1977/78-1980/81. 1/ These shortfalls in groundnut production were owed principally to natural causes in that period - repeated drought or unseasonal rainfall. They also reflected the accumulated conse- quences of falling terms of trade for groundnut farmers and declining yields due to deficiencies in seed handling and fertilizer application. By the 1979/80 and 1980/81 crop seasons, production was down to an average of only 64,000 metric tons, less than half the average recorded over the corresponding period just five years earlier. 7. With favorable weather and moderate producer price increases, ground- nut production has recovered by 50% in each of the past two crop years and pushed overall growth of the economy to rates of 10.9% in 1981/82 and 5.4% in 1982/83. The improvement notwithstanding, average per capita income in 1982 was a mere $370 in current prices, and in real terms per capita incomes were no higher than they had been nearly ten years earlier. 8. The Gambia continues to suffer from a severely weakened financial position which emerged in the later 1970s. Government revenue levelled out beginning 1978/79, and budgetary savings turned negative as of 1980/81. A doubled capital spending program in the latter 1970s, though heavily foreign financed, has subsequently added pressure on government budgetary resources already narrowed by economic stagnation and no longer supplemented by surpluses of the groundnut marketing monopoly, GPNB, as had been the case up to 1979. On external account, balance of payments deficits widened beginning 1977/78 as groundnut exports faltered. By end 1979, net foreign reserves had fallen to a modestly negative position for the first time since Independence 1/ Corresponding to the fiscal year ending June 30. (1965) and proceeded to decline steadily thereafter. By end 1982/83, net foreign assets of the banking system had dropped to negative D 164 million (US$63.5 million), equivalent to 70% of annual merchandise imports. 9. In an effort to stem the growing deficits, the Government undertook an IMF Stand-by program in February 1982 (SDR17 million) under which a wide number of measures were taken, including the upward adjustment in producer prices for groundnuts referred to earlier and in selected retail prices and interest rates; limitations on domestic bank credit and external borrowing were also undertaken. Given the persistence of public sector deficits and the country's vulnerability to a downward shift in groundnut export earnings, however, the Gambian Government will need to intensify remedial measures in price policy and credit administration in particular in order to restore financial stability. Towards that end, the Government is negotiating a follow-up program with the IMF which it hopes to see in place shortly. Investment Policy, Development Options and Constraints 10. The generally weak performance of the Gambian economy in recent years is in large part a consequence of persistent drought. Nonetheless, inadequate attention was given in the 1970s to providing appropriate producer incentives and the institutional environment necessary to stimulate agricultural production. Also public investment policy through the 1970s neglected the directly productive sectors, notably agriculture. Under the current Second Five-Year Plan (1981/82-1985/86), the composition of the investment envelope marks an important departure from earlier priorities in transport and communications and places prime emphasis on the agricultural sector, which accounts for 28 percent of total investment envisaged, as against only 16 percent of that realized in the First Plan period (1975/76 - 1980-81). The Government further recognizes that the single crop, groundnuts, cannot be relied upon as in the past to provide the resources needed to supplement its normal budgetary receipts or to support adequately the country's foreign exchange requirements. 11. The options for diversification are limited and rest principally within the agricultural sector itself. Scope for diversification is seen in rice, cotton and livestock as well as in fisheries. Pilot schemes in irrigated cropping, especially in rice, are being undertaken to alleviate the foreign exchange burden of importing some 30% of the country's cereal requirement. Commercialization of The Gambia's sizable livestock sector is to be stimulated through a new pricing system and a major animal health and breeding program with a view to expanding exports. 12. Growth of the Gambian economy over the medium term, officially projected to average 5% per annum, will continue to be governed by performance in the groundnut sector. Longer-term prospects will depend heavily on the Government's success in implementing the diversification measures in the agricultural sector referred to earlier. Indeed, given the resource endowment of the country and the size of the Gambian market, agriculture will continue to be a mainstay of the economy through the foreseeable future despite climatic irregularities and the severe institutional constraints which characterize the country's rural sector. The Government therefore accords top I - 4 - priority to the proposed Project, the largest single investment envisaged in the agricultural sector through the mid-1980s. PART II - BANK GROUP OPERATIONS IN THE GAMBIA 13. To date, the Bank Group has made nine credits to The Gambia totalling US$46.5 million equivalent. Of these, three were in the transport sector, two in the rural sector and one each in the tourism, education, rural and urban enterprises, energy and urban development sectors. Annex II contains a summary statement of IDA credits as of March 31, 1984. 14. Project implementation and disbursement performance for the few ongoing operations have been generally satisfactory and compare reasonably well with other countries in West Africa with similar profiles. The most serious problems encountered in project execution have been overall weakness in project administration, including inefficiency in keeping project accounts and difficulty in recruiting and retaining qualified local counterpart personnel. However, appropriate corrective action has been taken in agreement with the Association whenever such problems have arisen. Moreover, future IDA-financed operations, such as the proposed project, are being designed with objectives better adapted to existing manpower constraints in The Gambia. 15. Until recently, Bank Group lending has been concentrated in expanding and improving The Gambia's physical and social infrastructure which has been a major bottleneck to economic growth. These efforts led IDA to finance an education project in FY78, a highway maintenance project in FY79; and in FY82 an energy project for accelerating hydrocarbon exploration and power distribution, and a rehabilitation project for the port of Banjul. The Bank Group has also supported the Government's effort to develop small and medium- scale rural and urban enterprises and build up The Gambia Commercial and Development Bank (GCDB) as a financial intermediary. 16. The Government's recent development strategy emphasizes diversification of the economy and reduction of its dependence on groundnut production through investments in the directly productive sectors, particularly agriculture. Bank Group's current lending in The Gambia reflects this priority. The proposed project, which is the third IDA - financed agricultural operation represents the Government's largest undertaking in the sector and is an important step toward agricultural diversification. Under the project important policy and institutional reforms would be introduced to stimulate production of food crops. 17. In other sectors, a recently approved Urban Management and Develop- ment project supports government programs aimed at rehabilitating major urban centers. Population in the urban areas has grown almost twice the national average of 2.8% in the last 10 years. This pace of growth has already outstripped an inadequate network of roads, drainage water and sanitation infrastructure. Under the urban project reforms would be introduced for a more efficient management of the Greater Banjul area where two-thirds of the total urban population live. Also, this project will demonstrate the - 5 - feasibility of extending basic infrastructure, low cost and affordable serviced land and shelter to the bulk of the low income population. A proposed DFC II project would assist the further development of small- and medium-scale enterprises and strengthen GCDB. A Greater Banjul Water Supply project would reinforce the water distribution system in the urban area and provide technical assistance and training to the Gambia Utility Corporation. Finally, a road maintenance project is also being prepared to improve road maintenance capability of the Public Works Department (PWD) with emphasis on regraveling poor sections of roads. 18. The Bank Group's share of The Gambia's outstanding disbursed external public debt has declined from a peak of 44% at the end of 1976 to 16% at the end of 1982. 19. In 1983, The Gambia became an IFC member. IFC's first operation in the country, a US$2.9 million loan to complete and open the Kombo Beach Hotel in Banjul, which was left unfinished because of the bankruptcy of the expatriate contractor two years earlier, was approved in October 1983. PART III - THE AGRICULTURAL SECTOR Characteristics 20. Agriculture, including livestock, fisheries and forestry contributes about 30% of GDP and accounts for about 90% of earnings from domestic exports. Also the country' major industrial activity, groundnut oil milling, is agriculturally based. 21. Groundnuts, raised by about 95% of the farmers, are the major export crop, accounting for over 50% of the nation's cultivated area. Other impor- tant food crops are millet, sorghum, and rice, the major food staple of the population. Yet, Gambian farmers produce only about 70% of the country's food requirements -- about 30,000 tons of rice must be imported annually. Livestock and fisheries also have a significant potential for greater exploitation and development. About 15% of the population own cattle and almost all farmers keep small numbers of sheep, goats, and poultry, but the livestock sector continues to be governed by a traditional husbandry system. Government Objectives, Strategy and Constraints 22. The Government gives high priority to agricultural and rural develop- ment as the key element for economic growth and improvement in the standard of living of its people. Thus, agriculture receives a large share of total development resources. UJnder the Second Five-Year Development Plan (FYP), Government expenditure for agriculture is projected to reach about US$57.0 million, or about 28% of total development expenditure. 23. The FYP defines the principal agricultural objectives as: (i) increas- ing food production to raise nutrition levels and reduce imports; (ii) promot- ing speedy recovery in groundnut production to increase foreign exchange earn- ings and farmer income; (iii) furthering rural development and reducing urban/rural income disparities; and (iv) diversifying food and export produc- -6- tion. These goals would be achieved by: (i) improving extension and support services for farmers; (ii) making GPMB operations more efficient and develop- ing farmer cooperatives; and (iii) providing support to seed multiplication and crop protection. In addition, improved research would develop better farming systems, integrate livestock with agriculture and lead to a better understanding of the impact of climatic variation on crop production. Furthermore, the FYP supports fair producer prices to farmers, while reducing subsidies to help remove existing market distortions and enhance agricultural production. 24. However, in setting objectives and elaborating an agricultural development strategy for The Gambia, several constraints must be recognized. The physical environment causes large annual variations in crop production. Rainfall is often sporadic and erratically distributed throughout a single, short, wet season, while the Gambia river, potentially important for irriga- tion, is tidal throughout its length in The Gambia and reduced dry season flows permit salt intrusion as far as 270 km upstream. Institutional weaknesses result in poorly organized and managed services to rural areas. The Ministry of Agriculture (MOA) and the Gambia Produce and Marketing Board (GPMB), the main institutions in the agricultural sector, are constrained by inadequate funds, a shortage of qualified and experienced managers, and lack of vehicles. The Gambia Cooperative Union (GCU), the main source of institutional credit, suffers from both a lack of management expertise and vehicles, and has insufficient storage and marketing facilities. Labor availability is also a constraint. While labor is underutilized in the off- season, labor scarcity occurs in the farming season. With the growing outflow of young able-bodied Gambians from the rural to the urban areas, the problem has become more acute. Bank Group Involvement in the Sector 25. The proposed project would be the third Bank Group lending operation for agricultural sector development in The Gambia. The first operation, the Agricultural Development Project (ADP) (Cr.333-GM) approved in 1972, was designed to develop 3,000 acres of double-cropped irrigated rice along the Gambia River. This project was completed in 1976 with two third of the land planned actually developed for irrigation. Most of this was not double cropped, as expected, for several reasons - poor rice pricing policy, weak institutional arrangements, poor maintenance of the irrigation pumps. Paddy yields were high and farmers increased their consumption of rice but market surplus was less than expected. The Rural Development Project (RDP) (Cr.644- GM) which followed in 1976, was cofinanced by IDA, the British Overseas Development Administration (ODA) and the Arab Bank for African Development (BADEA). It was completed in 1982. RDP aimed at increasing cereal and cash crop production and livestock husbandry for about 48,000 people living in 65 selected villages. The project included credit for seasonal inputs and ox cultivation, improved agricultural extension, training and research, increased seed production, and project management. Livestock production was to be increased through a vaccination program and improved livestock and veterinary services and better livestock marketing. - 7 - 26. The Project Performance Audit Report (PPAR) of this project, issued in June 1983 (Report No. 4558), states that project outcome was mixed. RDP generally succeeded in completing physical targets and in focusing Government attention on the sector's issues. In addition, GPMB satisfactorily carried out its project role as importer and supplier of fertilizer. On the other hand, however, the civil works financed by ODA showed a cost overrun of over 200% and crop production was below appraisal estimates. This was partly due to several unexpected droughts which adversely affected production. However, incremental crop production appears to have been somewhat overestimated at appraisal. No benefits were obtained from dry cereals (sorghum and millet) because no attempt was made to promote improved varieties. The project also failed in promoting a viable cooperative system to handle credit, input supply and output marketing, partly because it did not provide sufficient technical assistance. 27. Several important lessons were learned from RDP: (i) more local involvement is necessary during a project's planning stage to ensure adequate commitment during implementation; (ii) given the important role played by women in agriculture, particularly in rice cultivation, their activities should be promoted; (iii) more attention should be given to the selection and training of suitable extension workers; (iv) project design should make greater allowances for the lack of management and administrative expertise in The Gambia; (v) GCU and the primary cooperative societies require much more attention than was given under RDP, since the cooperatives need to be strengthened and financially rehabilitated to enable them to handle input supply, credit and marketing more effectively; and (vi) there is need to limit recurrent costs arising after project completion, since the Government could not provide sufficient recurrent finance to sustain the level of development achieved under the project. Despite these problems, the project has developed the foundation and much of the infrastructure on which long-term agricultural development can be based. The farming center, the seed production and crop trials station at SAPU, the training center and the seed testing and veteri- nary laboratories which were all established under RDP would be of substantial long-term benefit for agricultural development if they could be maintained in a fully operational condition. 28. The proposed project's design has taken into consideration the pro- blems and lessons of RDP. In addition, the Gambians took an active part in preparing this project and accord its implementation high priority. Produc- tion estimates for the proposed project are conservative and emphasis has been placed on improving production and returns from upland rainfed crops by using simple proven technologies. Assistance would be provided to strengthen support institutions, especially MOA's Extension Services, and The Gambia Cooperative Union (GCU). A civil work administrator would also be hired to closely supervise the construction program in order to avoid cost overruns. Finally, the proposed project has been design in such a way that recurrent costs will be kept at a level which the Government can afford. PART IV - THE PROJECT Background 29. As part of RDP, funds were provided for a feasibility study for a follow-up project. In 1978, based on results from this study, the Bank agreed to the Government's request to assist in preparation of the proposed pro- ject. Following several missions of the Bank's Resident Mission in West Africa (RMWA) and reviews of working papers, a joint RMWA/ODA mission visited The Gambia in October 1980 and assisted Government in preparing a final re- port. A PPF advance of US$670,000 equivalent was granted to The Gambia to finance a cooperative adviser for GCU (para. 39) and to facilitate an early start-up in project execution. The project was appraised in September/October 1982 with participation from IFAD and ODA. The latter subsequently decided not to participate in the financing of the project but agreed to provide some interim financing for the research station at SAPU and 6 man years of techni- cal assistance in agricultural research. Negotiations took place in Washington, March 26-29, 1984. The Gambian delegation was led by Mr. A. N'Jie, Permanent Secretary to the Ministry of Economic Planning and Industrial Development. Delegations of IFAD and the Italian Department of Development Cooperation also participated in the negotiations. A Staff Appraisal Report entitled, "The Gambia: Agricultural Development Project II," No. 4416GM, dated April 20, 1984, is being circulated separately to the Executive Directors. Annex III contains supplementary project data. Project Objectives and Description 30. The proposed five-year project, which would be national in scope, has three closely-linked major objectives: (i) to consolidate progress made under RDP; (ii) to assist the Government with major sectoral reforms; and (iii) to increase agricultural production of both export and food crops through strengthening support institutions, improved input supply and improved research and seed multiplication. The project would build on the experience gained in RDP, paying particular attention to containing recurrent costs during project implementation in view of the Government's financial constraints. The proposed project would be less complex and more cost- effective than RDP. In view of the country's stringent foreign exchange situation and Government's decision to eliminate all fertilizer subsidies by June 30, 1988, the project would assist the Government in financing 63% of the cost of recurrent fertilizer import. 31. The project consists of the following components: (i) Crop and Farm Development: (a) increased production of upland rainfed crops (e.g., groundnuts, rice, maize, cotton, sorghum, and millet) through improved cultural practices based on simple proven technologies and supply of agricultural inputs; (b) strengthening of Sapu Agricultural Station's research capacity by improving its links with other national and international research institutes and providing buildings, vehicles, technical assistance and operational support; and (c) establishment of a comprehensive national seed program for groundnuts, rice, cotton, and maize. -9- (ii) Institutional Support: (a) reorganization of MOA to allow a more cost-effective integrated rainfed crop extension service at village level by instituting a "Training and Visit" system with fewer, better trained personnel and by providing building, vehicle and technical assistance; (b) improvements to the cooperative structure to enable more effective handling of input supply, credit and marketing by providing vehicles, operational support and technical assistance; (c) establishment of a strong Project Coordinating Unit (PCU); and (d) strengthening of MOA's Project Planning Programme and Monitoring Unit (PPMU) to monitor and evaluate the project. Project Implementation 32. The organizational structure which was developed under the first project would be reestablished but modified on the basis of experience. MOA would have overall responsibility for the project, but implementation would be the direct responsibility of departments and organizations for which financing is proposed. A Project Coordinating Unit would be established as an integral part of MOA and thus subject to the controls and procedures of Government departments. It would be responsible for overall project coordination, monitoring of project activities in conjunction with PPMU, and maintenance of project accounts and procurement. Reporting to the financing agencies would also be the responsibility of the Unit. The Unit would consist of a Project Director to be recruited locally, a Civil Works Administrator to oversee building construction, also to be recruited locally, and a qualified and suitably staffed accounts section, to be headed by an experienced expatriate project accountant. Assurances were obtained at negotiations that the qualifications and experience of the Project Director, the Civil Works Administrator and the accountant would be acceptable to the Association (Section 4.01(b),(iii),(iv) of the draft Development Credit Agreement (DCA)). The establishment of the PCU as well as the appointment of the Project Director and of the project accountant would be conditions of credit effectiveness (Section 7.01(e),(h) of the draft DCA). 33. To ensure a maximum degree of cohesiveness in the activities of the various Ministries and Departments as well as Gambian involvement in the implementation of the project, the following committees would be created: i) a high level Project Coordination Committee (PCC) which would have ultimate responsibility for project implementation. The PCC would be headed by the Permanent Secretary of MOA and its membership would include: The Permanent Secretaries, Ministries of Finance and Trade, and Economic Planning and Industrial Development, the Secretary General in the President's office, the Directors of the Departments involved in project implementation, the Managing Director of the Gambia Produce Marketing Board (GPMB) and the General Manager of The Gambia Cooperative Union (GCU). The PCC would be expected to meet every two months; ii) a Project Coordination Working Committee(PCWC), which would handle coordination of agricultural development, input supply and marketing. The PCWC, would be chaired by the Director of Agriculture and would include the General Manager of GCU, the Project Director, and the Assistant Directors, Extension and Research. It would meet more frequently than the PCC; iii) Divisional Coordination Committees which would make sure that inter- - 10 - ministerial coordination is carried out also at the field level. The estab- lishment of the Project Coordination Committee and of the Project Coordination Working Committee would be a condition of credit effectiveness (Section 7.01e),f) of the draft DCA). Agricultural Extension and Training 34. Presently there are a number of different extension services for upland cereals, groundnuts, irrigated rice, cotton as well as ox-training and women's and young farmers club programs all providing advice to the one farmer. Many of the extension staff are untrained demonstrators who find it difficult to get the respect of farmers and have little access to technical advice and help on more specialized topics. The diversity of services also make it difficult to provide a coordinated approach to help farmers improve their farming practice. Moreover, there is no effective link between the research and the extension services. Under the project, MOA extension services would undergo a substantial reorganization which would include improvements to the chain of command, decentralization, and a unified, more capable, but smaller, extension service. Reorganization would be phased in close consultation with IDA. As a first step, the project would support the merger of the various extension services for rainfed crops, ox-training, women and young farmers clubs, into one smaller, but upgraded, service which would be reorganized and run according to the principles of the "Training and Visit" (T & V) system adapted to the conditions in The Gambia. Further reorgani- zation and incorporation under one extension service of irrigation, rainfed agriculture and livestock services would continue during project imple- mentation. Improved research linkages would be developed through the "T&V" system, improvement in reporting procedures, the off station trial programs and closer coordination at the field level between the senior agricultural officer and MOA's field research specialist (both would be member of the Divisional Coordination Committee). In support of the reorganization of the extension services, the project would fund buildings, vehicles, equipment, operating costs and technical assistance. Assurances were obtained at negotiations that the Government would consult the Association prior to any reorganization of MOA and that it would send to the Association its proposals for the reorganization by no later than December 31, 1984 (Section 4.08 of the draft DCA). Merger of the rainfed crop extension services would be a condition of credit effectiveness (Section 7.01 of the draft DCA). In the interim, steps have been taken to improve the coordination between the Department of Agriculture (DOA) and the Crop Protection Service (CPS) within MOA. 35. Substantial training would be provided under the project to achieve the goal of a truly effective extension worker. An extension and training specialist would be hired to oversee training programs within DOA, while a manpower development officer, to be based at PPMU, would conduct a full manpower study of MOA including an assessment of the implications of the proposed reorganization. Under the extension and training specialist two training groups would be formed, one for the eastern and one for the western region. Subject matter specialists would be selected from existing agri- cultural superintendents. At the divisional level, specialist inputs would be obtained from the existing MOA staff. As a result of the reorganization - 11 - exercise, a number of MOA staff would become redundant (about 110 agricultural demonstrators and 20 ox-ploughing staff). The manpower development officer would prepare a program for retirement and redeployment of these staff. Peri- odic training courses for middle- and senior management would also be orga- nized in view of the shortage of trained managers in The Gambia. Agricultural Research 36. To help strengthen the research program, an experienced research consultant would be hired to assist Government in preparing and reviewing research programs, while a farming systems research economist, who would be based at the research station at Sapu, would coordinate the work of the upland crops and rice units which are already staffed by four Gambian research officers, as well as develop a farming systems approach. Both staff would be responsible to the Assistant Director, Research, and would liaise with PPMU on farm management aspects. The project would provide funds for buildings, vehicles, operating costs, and acquisition and testing of animal traction and cereal processing equipment. Assurances were obtained during negotiations that the Government would prepare and submit to the Association for its comments by no later than March 31 of each year the annual research program at Sapu and its outstations (Section 4.09 of the draft DCA). Coordination with research services in West Africa, particularly in Senegal, would be actively pursued under the project. Seed Multiplication 37. The RDP established the nucleus of a seed production station, the capacity of which would be expanded under the present project. The quality of seeds provided by the Seed Multiplication Unit (SMU) under the RDP was satisfactory but supplies were late (due to transport problems) and inadequate. The proposed project would address these constraints. Quality controls for both seeds produced at SAPU and seeds grown by contract growers would also be improved under the project. A National Seeds Council (NSC), has recently been set up under the chairmanship of the Permanent Secretary, MOA to advise the Government on future seeds policies and guide the scheme's overall development in response to national needs. To eliminate the current subsidy element in the price of seeds, a seed pricing policy, based on the recovery of the cost of processing and distributing certified and improved seeds, would be devel- oped. During negotiations, assurances were obtained from Government that such a pricing policy statement would be submitted to the Association for approval by December 31, 1984 and that the approved policy statement would be imple- mented thereafter (Section 5.03 of the draft DCA). Cooperative Development 38. The Gambia has a Cooperative Union (GCU) and 62 multipurpose cooperative societies. These societies operate 81 buying centers (seccos) nationwide. GCU, through the cooperatives, is the major licensed buying agent for groundnuts and distributor of agricultural inputs on behalf of GPMP. Cooperatives are also the main source of institutionalized agricultural credit in The Gambia. GCU is currently in financial difficulties due primarily to the arrears in farmers' repayment of their subsistence, seed and fertilizer - 12 - loans. Because of severe drought conditions the rate of recovery on these loans has been very low since 1979; however, inadequate staffing with consequent poor supervision and lack of enforcement of repayments have also contributed to GCU's deteriorating credit performance. 39. An important feature of the proposed project is the organizational and financial rehabilitation of GCU and the cooperative movement. This has already begun with GCU and the Government working closely with the Association in preparation for this project. A plan for the rehabilitation of GCU and the cooperatives has been prepared with the assistance of an expatriate coopera- tive adviser recruited under the PPF advance. Some of the proposals of the rehabilitation plan have already been implemented. At GCU, the General Mana- ger has been confirmed in his post and the management structure reorganized and strengthened. Under the project, GCU's accounting system would be improved and a management information system introduced for more effective cost control. GCU personnel costs have increased considerably, but a ceiling on staffing has now been agreed and a staff review would be carried out. With regard to GCU's financial rehabilitation, the Government has agreed to a plan acceptable to the Association which includes, inter-alia, proposals for a) dealing with GCU's outstanding debt of D25.0 million; b) the removal of sub- sistence credit; and c) the capitalization of RDP loan recoveries, including the balance of the RDP Revolving Fund. Budgetary control systems have also been introduced in the cooperatives and the management of the seccos is expected to improve considerably with the increase in the number of Field Coordinators employed by GCU. 40. To provide support to the program for rehabilitation and strength- ening of the cooperative structure, about US$3.2 million of the IFAD and IDA funds and US$1.6 million of the Italian funds (a total of US$4.8 million) would be relent to GCU to provide loans to farmers for farm inputs. In view of the severe financial difficulties currently besetting the institution, no interest rate would be charged on the loan, which would be repayable at the end of 10 years. At that time Government would consider whether the long-term loan should be converted into equity. The execution of a subsidiary loan agreement between Government and GCU covering the US$4.8 million loan would be a condition of credit effectiveness (Section 7.01(c) of the draft DCA). Input Supply and Credit 41. Distribution and sales of inputs funded under the project would con- tinue to be the responsibility of the cooperative structure. GCU would purchase fertilizer and agro-chemicals from GPMB with funds provided under the project. Cash sales of inputs would be encouraged, but seasonal credit, mainly for fertilizer and seeds, and medium-term loans for animal-drawn equip- ment, oxen, donkeys and small village rice mills, would also be made available by GCU to members through their cooperative societies. GCU would charge farmers a flat interest rate of 13% for seasonal credits. As the latter are usually repaid within 9 months, the effective annual charge would be higher. The interest rate structure was recently increased in The Gambia in connection with the IMF-supported stabilisation program. Given the current inflation rate of 11% in The Gambia (which is estimated to rise to 12% in 1985 and 1986 but to decline thereafter (para. 48)), the on-lending rate would be - 13 - positive. Medium term credit would also be available at 13% per annum, to be repaid over five years, with a grace period of one year on principal. Agree- ment was reached at negotiations that interest rates and margins to cover costs would be reviewed annually with the Association and adjusted upwardly if necessary (Section 5.04 (a),(b) of the draft DCA). The cooperative adviser hired under the PPF advance is currently assisting GCU in establishing manuals covering policies, procedures, terms and conditions for the provision of both short and medium- term credit. Group lending would be introduced to further reduce costs and to improve loan recovery. GCU would also review its lending policies to ensure that both men and women have equal access to credit (women are not members of cooperatives). Finally, to ensure that GCU has adequate resources to carry out its lending operations, it was agreed at negotiations that GCU would establish and maintain a separate Revolving Fund into which all the farmers' loan repayments would be made (Section 4.06(a) of the draft DCA). Marketing and Pricing 42. The Gambia Produce Marketing Board (GPMB), a wholly Government-owned company, is responsible for handling The Gambia's agricultural exports (groundnuts and cotton) and procuring agricultural inputs. It also imports rice, markets the locally produced one, and operates paddy as well as ground- nut processing facilities. GPMB heads the pricing committee which makes recommendation to the Government on producer prices (groundnuts, cotton and rice). This committee does not have a systematic approach to determining producer prices or well defined pricing policy objectives. In the case of groundnuts, this approach results in unstable producer prices which are mainly determined by widely fluctuating world prices and the need to correct the financial imbalances of GPMB. 43. During negotiations it was agreed that consultants would be hired to undertake a study of GPMP's operations. The study, to be carried out by December 31, 1984, would include inter-alia: i) recommendations for the achievement of the Government's agricultural producer pricing policy object- ives including price stability, assuring maximum incentives to farmers while assuring adequate margins to GPMB, and the promotion of optimal crop diversi- fication; ii) a review of the existing institutional mechanisms for the annual establishment of agricultural producer prices and the optimal timing of such announcements; iii) a review of the impact of the elimination of fertilizer subsidies on the use of fertilizer and the correlated need to adjust producer prices; iv) determination of the scope for improving the efficiency of GPMB and specific measures to achieve this goal; and v) recommendations as to the appropriate measures to be taken in order to restore a crop stabilization fund and to assure its financial viability. Assurances were obtained during negot- iations that the Government would review with the Association the study's recommendations and agree on an implementation schedule within three months from the date of completion of the study (Section 4.10 of the draft DCA). - 14 - Recurrent Fertilizer Imports 44. In view of the Government's stringent budgetary situation which does not allow for the timely import of recurrent fertilizer, the project would finance 63% of the necessary recurrent fertilizer imports. This assistance would be provided while the Government implements its policy of gradually eliminating fertilizer subsidies (currently at 60%) and carries out a major reorganization of the Ministry of Agriculture and of the cooperative structure. Financing of recurrent fertilizer imports would be provided for three years. Italian aid would finance the total national requirements of urea and compound fertilizer, while the Government would finance the import of super phosphate. Assurances were obtained at negotiations that Government would allocate sufficient amounts of foreign exchange to meet the cost of the import of this fertilizer (Section 4.01(b),(i) of the draft DCA). Assurances were also obtained that the Government would gradually reduce and by June 30, 1988 eliminate fertilizer subsidies and announce the price adjustment for fertilizer by no later than December 31 of each year (Section 5.02 of the draft DCA). Monitoring and Evaluation 45. A new Monitoring and Evaluation Unit would be set up in PPMU to provide the Project Director and the PCC with regular and timely information concerning project implementation. This unit would assist the Project Director in taking appropriate action to speed up the implementation process and make periodic adjustments if necessary. In view of the RDP experience, a mid-project review would be essential. A major review of the overall project performance would be carried out by the Monitoring and Evaluation Unit to be submitted to the Association by no later than June 30, 1986, paying particular attention to progress with institutional reforms. Government would discuss the findings of the review with the Association and agree on an action program for the remainder of the project period by not later than October 31, 1986. The Government's and the Association's agreement on the action plan should be a condition of continuing disbursement on all project components except con- tracts specifically approved by the Association before that date. Agreement to this effect were obtained from Government at negotiations (Schedule 1 of the draft DCA). Project Accounts 46. Annual budgets and estimates of quarterly cash requirements would be prepared by the Project Coordinating Unit and would be submitted to the PCC for approval. On the basis of the approved budgets, the Government would make appropriate allocations in MOA's budget and release all necessary funds quarterly in advance (Section 4.01,(b)(ii) of the draft DCA). The PCU would maintain accounts for the project. However, because of the experience under RDP an expatriate project accountant would be employed for the first three years to ensure proper maintenance of project accounts and provide training to the local accounts staff. - 15 - Technical assistance 47. The project would provide 12 man-years of experienced expatriate staff and 56.5 man-months of short-term consultancy services to assist MOA in the following areas: (a) preparing and supervising MOA's training programs and providing experienced guidance in the introduction of the "Training and Visit" extension system; (b) establishing project accounting procedures and train project accounting staff; (c) conducting a full manpower study of the Ministry and preparing a program for retirement and redeployment of redundant staff; (d) advising on a research program in various areas of crop research; (e) organizing management training seminars for senior and middle level management; (f) conducting a study on GPMB operations; (g) establishing agricultural credit procedures; and (h) preparing a follow-up project. The extension and training specialist (4 years) and the manpower development officer (2 years) would be financed by Italian aid. Agreement was reached during negotiations that these experts would be on post by December 31, 1984. The credit specialist is already on the job and the appointment of the project accountant would be a condition of effectiveness. In addition to the technical assistance financed under the project, ODA is providing 6 man-years of technical assistance in agricultural research and seed multiplication. Assurances were obtained at negotiations that prior to engaging any consultant or technical assistance staff: (i) detailed Terms of Reference for their employment would be reviewed and agreed with IDA; (ii) the consultant's reports would be reviewed with IDA to examine possible implementation implications. Project Cost and Financing 48. Total project costs, net of identifiable taxes and duties which would be waived, are estimated at US$29.0 million, of which US$23.6 million is the foreign exchange cost. A summary breakdown of costs is shown in the Credit and Project summary at the beginning of this report. Cost estimates are based on beginning 1984 prices. Local staff costs reflect the current civil service scale and costs of US$100,000 per man-year for internationally recruited staff are in accordance with prevailing market conditions. Physical contingencies have been calculated at 10% for buildings, and 5% for vehicles, equipment, non-labor farm inputs, and operational costs. Price contingencies are based on estimated annual local cost increases of 11% in 1984, 12% in 1985 and 1986, 10% in 1987 and 1988 and 8.5% in 1989. Price contingencies for foreign costs are based on assumed price increases of 3.5% in 1984, 8.0% in 1985, 9% in 1987 and 1988 and 7.5% in 1989. 49. IDA would provide a US$9.4 million credit for this project. Jointly with an IFAD loan of US$5.0 million, the IDA Credit would cover about 45% (US$10.7 million) of the total foreign exchange costs. In addition, the combined IDA/IFAD financing would cover about 69% of local costs. An Italian grant of US$9.5 million would finance about 32% of the total project costs while the Government would finance 17% (US$4.8 million) and farmers 1% (US$0.3 million) of the total costs. The Government's share in the financing of the project development cost is only 5%, the remaining 12% covering the cost of recurrent national fertilizer imports. Cross-effectiveness of IFAD's loan and Italy's grant would be a condition of effectiveness of the IDA Credit (Section 7.01(a) of the draft DCA). - 16 - 50. In view of financial constraints facing the Government, it would be essential to prefinance some operational costs. Therefore, an amount of US$500,000 from the IDA credit and the IFAD loan would be deposited in two separate Special Accounts (US$300,000 for IDA and US$200,000 for IFAD) to be held in foreign exchange at the Central Bank, promptly upon receipt of a disbursement application from the Borrower. Opening of the Special Accounts would be a condition of credit effectiveness (Section 7.01 (d) of the draft DCA). The accounts would be replenished upon receipt of satisfactory evidence for expenditures, provided such expenditures were eligible. Management of the accounts and preparation of Statements of Expenditures would be the responsi- bility of PCU's accounting section. Assurances were obtained from the Government at negotiations that the Special Accounts would be operated under terms and conditions acceptable to the Association (Section 3.02(c) of the draft DCA). Procurement 51. Procurement arrangements under the project are summarized on the following table. Goods and civil works would be under contracts awarded in accordance with IDA procedures, on the basis of international competitive bidding or local competitive bidding, except where otherwise agreed with the Association. Contracts for procurement of technical assistance and consultant services would be awarded in accordance with IDA procedures. All bidding packages for ICB or LCB contracts over US$75,000 would be subject to the Association's prior review of procurement documentation. - 17 - Procurement Arrangements (US$ million) Project Category Procurement Method Total Cost ICB LCB Local Other Shopping Production Inputs Fertilizer 12.3 a/ 12.3 Oxen and Donkey Packages and Seeds 2.4 2.4 (1-4) (1-4) Vehicle and Equipment Vehicles 1.2 1.2 (0-7) (0.7) Office Equipment 0.6 0.6 (0-4) (0-4) Building and Con- struction Houses and Stores 3.0 b/ 3-0 (2.2)7 (2.2) Consultants Services and Technical Assistance 1.6 c/ 1.6 ='(1 .o) (1.0) TOTAL COST 1.2 5.4 0.6 13-9 21.1 d/ (0.7) (3.6) (0.4) (1.0) 5.7 e/ Note: Figures in parenthesis are the respective amounts financed by the IDA Credit. a/ Fertilizers and chemicals worth about US$8.0 million (US$1.6 million incremental and US$6.4 million recurrent) would be procured by GPMB from Italian firms under Italian tied aid arrangements. The remaining fertilizer would be procured by GPMB under their own arrangements. b/ Amounts are small and houses and stores are dispersed through the country; they are not likely to be attractive to foreign contractors. Should ICB be required, local bidders would be given 71/i preference. c/ To be procured individually through reputable firms; Italian aid provides technical assistance worth about US$0.6 million. d/ Does not include price contingencies of US$4.6 million, local salaries of US$1.2 million, operating and maintenance expenses at US$2.0 million. Differences of US$0.1 million is due to rounding. e/ Does not include price contingencies of US$2.1 million, local salaries of US$0.5 million, operating and maintenance expensens of US$1.1 million. - 18 - Disbursements 52. Disbursement of the IDA credit and IFAD loan would be on the following basis: for production inputs, 100% of foreign and 95% of local expenditures; for buildings, 100% of foreign and 70% of local expenditures; for vehicles and equipment, 100% of foreign and 95% of local expenditures; for local staff 30% of local expenditures; for consultant services 100% of foreign expenditures; for operating expenses, 100% of foreign and 95% of local expendi- tures. Disbursements for vehicles and equipment, expatriate salaries and allowances, production inputs, would be made upon submission of full documen- tation to IDA. Other disbursements would be made against statements of expen- ditures, which would be verified from time to time during project supervision. Financial Implications for Government 53. The project would generate government revenue in the form of incremental foreign exchange earnings by GPMB and taxes from licensed traders even though there are no direct taxes levied on the commodities that would be produced under the project. In addition, secondary economic activities induced by the project in construction, rice and groundnut processing and trading, would also generate incremental revenues from direct and indirect taxation. Government cash flow shows that the project would generate an average annual net cash surplus of about Dalasis 2.1 million (US$0.6 million) from PY1 to PY10. The annual contribution from Government to the development costs of the project would average about Dalasis 0.7 million (US$0.2 million). The recurrent costs of ADP II would be about Dalasis 1.3 million (US$0.4 million) at the end of the investment period and would cover mainly admini- stration, extension and other services necessary for maintaining the produc- tion levels achieved by the project. 1lj Thus, the incremental revenues are expected to fully cover the recurrent costs of the project. Project Benefits and Risks 54. The major quantifiable benefit of the project would be the expansion of cash and food crops. By full development, it is estimated that about 10,500 farm families would earn significantly higher incomes due to various crop improvements and credit programs. As The Gambia is a net importer of food, the incremental production would directly reduce imports. Incremental production of groundnuts (estimated at Dalasis 15.4 million) and cotton (estimated at Dalasis 3.6 million) 1/ would increase net foreign exchange earnings. The world market for groundnuts is generally influenced by seasonal fluctuations in world groundnut production. The incremental groundnuts export due to the project would not be adversely affected by the world trend because The Gambia enjoys strong traditional trading ties with EEC and the incremental production would be too small to have any impact in the international ground- nuts market. Additional employment would be created in other sectors by the activities induced by the project. The Economic Rate of Return (ERR) is estimated to be about 23%. 1/ Figures are in constant 1984 prices. - 19 - 55. Among the non-quantifiable project benefits would be an improvement in the agricultural institutions due to the reorganization of MOA and the rehabilitation of the cooperative structure. In addition, the existing seed multiplication unit and agricultural research capacity in the country would be strengthened. 56. Since the project is a follow-up of RDP and is built on that experience, normal risks associated with similar development projects are minimized. The proposed agricultural techniques are simple and do not require major changes in cropping patterns, thus associated technical risks are also minimal. However, there remains a risk of a decline in crop production because of natural calamities, such as drought, or other factors, such as a decline in export prices, or fertilizer use below recommended levels due to gradual phasing out of subsidies. These potential risks have been considered in computing the estimated incremental crop production. PART V - LEGAL INSTRUMENTS AND AUTHORITY 57. The draft Development Credit Agreement between the Republic of The Gambia and the Association, and the Recommendation of the Committee provided for in Article V, Section l(d) of the Articles of Agreement of the Association are being distributed to the Executive Directors separately. 58. Special features of the draft Development Credit and Project Agree- ments are referred to in the text and listed in Section III of Annex III to this report. 59. Conditions of credit effectiveness would be that: (a) the PCU has been established and a Project Director has been employed and is in post; (b) a project accountant has been appointed; (c) the Project Coordination Commit- tee and the Project Coordination Working Committee have been established; (d) the Subsidiary Loan Agreement has been executed on behalf of the Government and GCU; (e) the Special Accounts have been opened; (f) the various depart- ments or agencies providing rainfed crop extension services have been merged into one single organization; g) the IFAD loan agreement and the Italian grant agreement have been duly authorized or ratified by all necessary Government action and all conditions precedent to the effectiveness of the IFAD loan and the Italian grant have been duly fulfilled; and h) IFAD has appointed the Association as cooperating institution to administer the IFAD loan (Section 7.01 of the draft DCA). 60. A condition of disbursement for the credit would be that the Government and the Association, at the time of the mid-term review, would agree on an action program for the remainder of the project period (Schedule 1 of draft DCA). 61. I am satisfied that the proposed development Credit would comply with the Articles of Agreement of the Association. - 20 - PART VI - RECOMMENDATI0N 62. I recommend that the Executive Directors approve the proposed Development Credit. A. W. Clausen President Attachments Washington, D.C. April 25 , 1984 - 21'- Annex I Page 1 of 5 pages GAMBIA, THE - SOCIAL INDICATORS DATA SHEET GAMBIA, THE REFERENCE GROUPS (WEIGHTED AVERAGES) /e MOST (MOSr RECENT ESTIMATE) /b RECENT /b LOW INCOME MIDDLE INCCME 1960-L 1970,b ESTIMATE- AFRICA S. OF SAHARA AFRICA S. OF SAHARA AREA (THOUSAND SO. EN) TOTAL 11.3 11.3 11.3 AGRICULTURAL 4.0 3.9 4.3 GNP PER CAPITA (US$) 90.0 140.0 370.0 254.6 1147.9 ENERGY COSDN3'TION PER CAPITA (KILOGRAMS OF COAL EQUIVALENT) 27.0 49.0 121.0 79.8 724.2 POPULATION AND VITAL STATISTICS POPULATION,MID-YEAR (THOUSANDS) 327.0 450.0 604.0 682.0*). URBAN POPULATION (% OF TOTAL) 12.4 15.0 19.0 19.5 28.5 POPULATION PROJECTIONS POPULATION IN YEAR 2000 (MILL) 0.9 STATIONARY POPULATION (MILL) 2.9 YEAR STATIONARY POP. REACHED 2155 POPULATION DENSITY PER SQ. KM. 28.9 39.8 52.3 29.5 56.5 PER SQ. KM. AGRI. LAND 82.4 115.4 137.4 94.: 131.8 POPULATION AGE STRUCTURE (X) 0-14 YRS 42.8 44.0 44.5 45.0 45.9 15-64 YRS 54.2 53.1 52.5 52.1 51.2 65 AND ABOVE 3.0 2.9 3.0 2.9 2.8 POPULATION GROWTH RATE (%) TOTAL 2.0 3.2 2.7 2.8 2.8 URBAN 3.6 5.1 4.8 6.2 5.3 CRUDE BIRTH RATE (PER THOUS) .. .. 49.5 47.9 47.6 CRUDE DEATH RATE (PER THOUS) .. .. 27.7 19.2 15.2 GROSS REPRODUCTION RATE .. .. 3.2 3.2 3.2 FAMILY PLANNING ACCEPTORS, ANNUAL (THOUS) .. 1.0 USERS (Z OF MARRIED WOMEN) .. .. FOOD AND NUTRITION INDEX OF FOOD PROD. PER CAPITA (1969-71=100) 101.0 98.0 75.0 87.8 95.7 PER CAPITA SUPPLY OF CALORIES (% OF REQUIREMENTS) 110.0 101.0 97.0 88.0 97.1 PROTEINS (GRAMS PER DAY) 63.0 58.0 58.0 51.2 56.0 OF WHICH ANIMAL AND PULSE 12.0 14.0 14.0/c 18.1 17.2 CHILD (AGES 1-4) DEATH RATE 53.9 52.3 46.1 25.7 23.6 HEALTH LIFE EXPECT. AT BIRTH (YEARS) .. .. 35.8 47.4 51.9 INFA-NT MORT. R.TE (PER THOUS) 222.3 216.5 196.2 126.5 117.6 ACCESS TO SAFE WATER (%POP) TOTAL .. 12.0 .. 24.7 25.4 URBAN .. 97.0 .. 56.8 70.5 RURAL .. 3.0 . . 18.3 12.3 ACCESS TO EXCRETA DISPOSAL (X OF POPULATION) TOTAL .. .. .. 28.1 URBAN .. .. .. 65.7 RURAL .. .. .. 21.9 POPULATION PER PHYSICIAN 21800.0 22950.0 11470.0/d 27420.6 12181.6 POP. PER NURSING PERSON 1420.0/e .. 1650.0o7 3456.2 2292.0 POP. PER HOSPITAL BED TOTAL 810.0 . . 810.0/f 1183.2 1075.4 URBAN 170.0/e .. 170.071 380.6 402.3 RURAL 8220.07 .. 3890.07T 3177.5 3926.7 ADMISSIONS PER HOSPITAL BE) .. .. .. HOUS ING AVERAGE SIZE OF HOUSEHOLD TOTAL .. 8. 3/g URBAN ,, 6.1/g .. RURAL .. 9.07 . AVERAGE NO. OF PERSONS/ROOM TOTAL .. .. URBAN .. .. RURAL .. .. .. ACCESS TO ELECT. (X OF DWELLINGS) TOTAL .. .. URBAN .. .. RURAL .. .. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ -_ - _ - _ _ - _- _ _- _ _- _ _- _ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - -_ - - 22 - Annex I Page 2 of 3 rages GAMBIA, THE - SOCIAL INDCATORS DATA SHEET GAMBIA, THE REPEREICE SROUPS (WEIMfED AVERAGES) (a MOST (MST RECECIT ESTIMATE) lb RECENtT LOW INCOME MIDDLH IlNlW 960/b R1970- ESTD4AT= APRICA S. o0 SAHAR AFRICA S. 0 SABARA VOCATION ADJUSTFD ENROLLMENT RATIOS PRIMARY: TOTAL 12.0 24.0 48.0 63.9 97.2 MALE 17.0 34.0 62.0 73.6 103.1 FEMALE 8.0 15.0 33.0 51.6 88.5 SECONDARY: TOTAL 3.0 8.0 13.0 13.5 17.2 MALE 4.0 12.0 18.0 16.7 23.5 FEMALE 2.0 4.0 8.0 8.1 14.2 VOCATIONAL (Z OF SECONDARY) 1.4 3.6 3.3 7.3 5.2 PUPtL-TEACHER RATIO PRIMARY 31.0 27.0 24.0 46.4 42.9 SECONDARY 19.0 20.0 16.0 25.1 23.7 ADULT LITERACY RATE (%) 6.0/e . 20.1 36.5 37.1 OIDSUIT IOI PASSENGER CARS/THOUSAND POP 2.4 6.4 .. 3.3 18.8 RADIO RECEIVERS/THOUS4ND POP 6.1 111.1 110.0 45.3 97.8 TV RECEIVERSITHOUSAND POP . .. .. 2.2 18.6 NEWSPAPER ("DAILY GENERAL INTEREST!') CIRCULATION PER THOUSAND POPULATION 4.6 .. ., 4.7 1i.2 CINEMA ANNUAL ATTENDANCE/CAPITA .. .. .. 1.0 0.6 LABOR FOCI TOTAL LABOR FORCE (THOUS) 169.0 219.0 277.0 F6MALE (PERCENT) 46.8 46.2 44.1 34.5 36.1 AGRICULTtURE (PERCENT) 85.0 82.0 79.0 76.9 56.8 TNDUSTRY (PERCENT) 7.0 8.0 9.0 9.8 17.5 PARTICIPATION RATE (PERCENT) TOTAL 51.7 48.7 45.8 40.9 37.0 MALE 56.2 53.5 50.6 . 53.0 47.1 PEMALE 47.4 44.2 40.9 28.9 27.0 ECONOMIC DEPENDENCY RATIO 0.9 1.0 1.0 1.2 1.3 INCOME DISTIIlUJTION PERCENT OF PRIVATE INCCME RECEIVED BY HIGHEST 5% OF HOUSEHOLDS .. HIGHEST 20% OF HOUSEHOLDS LOWEST 20% OF HOUSEHOLDS LOWEST 402 OF HOUSEHOLDS .. POVERTI TARGT GROUPS ESTIMATED ABSOLUTE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. .. 165.9 534.2 RURAL .. .. 95.0/c 87.4 255.9 ESTIMATED RELATIVE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. 185.0/c 100.8 491.5 RURAL .. .. 90.0/c 64.6 188.1 ESTIMATFD POP. BELOW ABSOLUTE POVERTY INCOME LEVEL (X) URBAN .. .. .. 39.5 RURAL .. .. 40.0/c 69.0 NOT AVAILABLE NOT APPLICABLE N O T E S /a The group averages for each indicator are population-weighted arithmetic mans. Coverage of countries among the indicators depends on availability of data and is not uniform. /b Unless otherwise noted, "Data for 1960' refer to any year between 1959 and 1961; "Data for 1970" between 1969 and 1971; and data for "Most Recent Estimate' between 1979 and 1981. /c 1977; /d 1978; /e 1962; If 1976; /g 1973.;/ * 1982 data of the 1983 census of population May 1983 - 23- Annex :I DFNTOSOF SOCIAL INDICATORS Page 3 of 5 pages Notes.: Although the dano1I 11 are oaeofro Iorcseoral ly judged the most auhorttv and relIabl, ft sh~ouldls h e notd char they say rot be inteosaIoeaI ly copsrahble bec..ut. of thelac of etandardIloedbdot lInloeadcoepe dby dIferetouore tocolet ogth data Th dat are, h noete ..s omeful to de--ibe ....ers of aagitdo, iIndicate treod, and hba-cter to crtal maJor adi -c bet- oe .. socbec curyfaetfor "fitgh-tcoo Oi ootr' ru.hr 'MiddleInoeNorth AIca aod Middl East I. choseo becaue of -ragee sori.-..lturaI aftftrttlet I. Io rho ref oe-cs grou dat the ccoe Arepp Rtot egtd ha-t elc sa freachtoctrsdthose only hb.s sajrity of l t ..ecosertesto gro..p hat dera for chat ltdi toto. Since the c-orrge of ooutreaaoo the ir,dlcasoredepeeda or hn oiai thyofdata to"o.aif... catto _atb AREA fth-o.saod sq.ha.f Poea1tlaro e hyilc Poaatndin,i,dedby 0-bo of 1praettseg Total - Tota surfbac orOa -upncting lord alea ad inla-d sa tees l960, pbscatqa te emaiodcisho7 t =uie.fry leIe. ff70 and 1980 data. fpnlarios perr N-stog Persc - PopuLlatt dintded by smber of pssoo .Agetta1tutal - Etsis-t of uriulon ..re usd too.rorr-y or -smaon Ipsl s sai rdae as5-sisstnre pr...ttraios.....s.I foe oroos. pastures, oartot and hitchec gardona or to ~~~~~~~lie folios ff80, noring9uiiiarie.. 1970 and 981 aa oalto c tosits aod - -os1, orbar, aed orat. - PapaLattor (-erl, ua,aerua dirided by bhtr -especrine rsbey at hasptral bads GNP PERa COPITd (U:L) GNIP pen canirt -shi-as at curen -ah pie,ssis.blirn public sod prirah geteral sad syscttired bamptesl sad caclaeby taecoeso ethad aa Wr, at id tlkas. (INt79-SI ba Ils rhbablirthao errrs Hospitl.s are mabian peras-ly staffed 6bi, 1970, and ff81 dens, bat les ore.. phymiciar. Estbifshcent pr-idieg po.inrplly cstadie1 ENtRGY cONSMFtpIiON PtR CAPITA - Ar-ua appun-r, cotousyi-c of casetamdi.1caltaters not perasooslystffedbyaphyscas, s byasmttdi. perrysegy Ici and lignIte -, ptror,b nooa u r er, l- -en n-oea aIlor us,adio t. hm ofri-s etscda ta sd cr thra slloctintry il to hiogras of ..oaI anutnaon oa o ia:p-ida he uneo eia facittis. Co ttsta eaeoe 1960, if70, and 10980 data, urban hspitala irclude AdsHrO. ialgreo -opitrst, sAnd -ara hositas focal no .rural hopitis and -edca ar stsooityoeteom POPULATION ANT) VITAL. STATISTICS SnlleAi hbopi'tala ar icldd rt odr otl Totl o- ltir Mdya toca j-hal of July I; I h,p90 adieldaaaospe opitl e n-Ttadnslro adsaostardohem data,of fromo Ib- ihosTEpiftals dioildd by rho nuaber of beds. asogcort is;1 90,t0o,so ird daa.1n9ae1to o auohldI eear pr ooebld -toal rba,IndNGa ,opolatlo Projections S Atouenof o-sarhof a groun.pbo,n hiaitaasaclitgtsro Posaioi er10 unn ouaInProjertiI - rohad on 198i ard t-hermlt m-l.J Abadro-egosyorsyttb slddi toalpopula- io Y by Agand sen an ml sdafn aOtotiidyte rarod oraatstc prat ratr. roectnoporseerafo cora la rtescoprie f tre ooragnubeoofperon p o oomroat,orar.sa easlsoeegb-dbe nstt fcooleel, o t In., lif-opnanyanh iengo-7. daelltga,reapnthr-y. Nel hgs etlud to-e-raatotaeadd .p~tonlog peroRsoc.Oc onr Is .h.a signo oth ofher tie ~ Cocr oa slinsor loeryi igqutr spretg 11: I;I ~ ~ ~ ha aao,rcdospofcohen lt0rrI fdjaedtrolIliato eahg_ eainefuae eiae talFadrl.Th ttirr oritoto alaesa h piay ee a srctgso frspo r fetiIt rt to frtplaisetytni onresat no a edudaior roclser ap ptnee lOl pece ben raIcor. orlttonaciceg .the ea ohm1I1~0 ardan tonlary a. laet o uisac ro rho h ffttla atae porulanioc lentihy education i I El-reqtei tlatfu yrsrs of pporet poia d iruraltos For q.hh. - id-yar ppulaion er oour fltnoe ror i etrt fpots geerl, oafn ,o eto oitgteecia a r.ora reu tti 170 _rd 088.ata puil -ao ly of( o1 yasoaecaosaarcoamso ooy ffO,17 n o.ifly .dt. foaronl arile Ip h tnto ecoayl aatstisiai pSplant t 9b, fO od -81daa Poi-tetofa l or1 b. A.-pri-l ad acrdr-Ttli.oenser ildt yearie pulanonfo lb-h,b i If-P and"' ofn-ly roapoding leno-a. Crude Brth hat lear roound)- dcoIl line bIrths or thonoad.of 1id year population; lOhO, ibtO, and ISAl duta. ly CT.c ytg hre liin Cono euh at fr thusrd -poso durh nr houad f ldye Pa -ilng - Car fret rhcuaotdth pPuia-yj-psege sacmrs poptanlof; ith0 iYlb, ardn tin baa caa eetoolsstannihtpesoariclde ahoaced,hoom a 00050feerductlr con-dnruge uaho of da hbor a-lso oftil1 boa tn ii tnopep nohtot.ai". herto~l ryrauctutpero fooeerocaprsn c-pd-cHdintcirtIprtosn 20ralaVlocI - 1ndei typo Iofreero. o ai 1900. lin~~~'t ers.odrecrnrirorreaatiaroarotgsohosfsa of ihtrt-noryro Pcntnr onden a-usp:Inan ratThe a fasiy p.... cator aboishd....sin. l' t"-d yog 10 nI0 " . -re~l be tllu-hceoul= .InnofPP dio froaIl,rt u tae,dfne aaprota Indroffo roonin erCynolon-Ifly-lroopropnapblnnordcco e-a;I ro ornorl dine ggoenl n"a tisdnir aernoo prkofIo. f i fo Mdyb,r_,bcsFe inoto. kyeodounioneloes ned_uo nofha.du..y if iu eA. s.at leastY oarLtimesaeectFr.t fedan o raloaryarhul.Cond resooo otuy od "g.g. Cinesa dotu uto_acerI _alc erTarBse r b nmeru coffr ad lt-ar I.luod. oggr-gano proucton fl ou,chcnryloieut. huord. on otina I ooag podce pr7n 00 ghta Ifb-gI,1070 ard1P- dota. LodOt~~190 ltR POOlY ISl erergy quloaln of r - od uple Childrnab0le trootype-a ia-eifet anues Poedrbu ronfdo huetis td nts t... eoo 6yellorts, sdoagaI tc.stry1e ld aniaa ki.feed, oerda nospasabtechnicbO, 1000 Ian iOS dr.1hcP-r.-b ...j ~, asaieson eereeadisaced b P10 hated) onPbynioicgln f needs oroo,ta hari ottrefproc-Larfreinasog,fsy,btlgsd age anditen dia60thonioo ofd pouain,adulsgtOpnntfrcaeauayIrroni-Lbrme in . aiig,cotoi le, sofrsr at hosehol iore 1 lhl-h , Ifl andIA0-0 data -an eicrtcrJ. oatee an rd gas - us pece Tage of rora labo foce Inf for-1'. Gsrt -the1 ofrrra brs o tdo-ylM - grni cnaoo raruetaF01 ad AtOllh dinos. Roqoires-ntafor u1906 countries eashio rd b T -te -tnie. ofo nibs- Act tLty rtesar coat heasLotl,- sale, andl fe le , laorfocea Thi:rdpo l-orc rodb19y60 t-s 00 n Od aa too 1970osnIrttno -acloo p gutr order. S. so iad reh per carth Rts pro eIntel frAnnol o-d ois -1 irolo-d. aply of food theR LONoflbrPr donnRedprodoanst l and pulseCl, Inegrass par poday; 10h1-h5,V 1010c und 1071l data. fISC0tf. I.. nt inbTntnr.. o411.....oo On1laal oleanatfothcatbOoulnuhrocooodo eoonreo.imteirsobthicahndhrl-sete brcda athr9 ;160807 r loot dots., I ahold :he - tnor oda t cons d idOP obte cAutIon. f I or- lyea o ae erthusn tcP11ins. nirhuans; O ) 00ad18 donon-Iolnr poer noe e Id thn yoey .ose hoo hi-of a-dliba -atnly sells) so' p .o..ue othirepnlnyyiunt. n 0oRa_a noeo c onry Vra lend is- done frosthb rra or n rsaotclod tl n trdotl-oodnn oothr10 oer oo ihajanot o ig r otoftotgi uboasa house Intral ueateosonoleaceaso..d iplynar nrhhuus.f...an rural-" Foetoe pulatln fIhrnerlshaeasi Ir-oful-dtea foot Ic-- ol-oHhen uo7L_d0, roIn)rttdhcor diapoaul uaporconnagosoodel oo_pc_-n pop danon fpheron dninynud sa rldrtenlisodflonan nunti ori u-thnurc dra -adt ofd hcoosnbrd ocaldot lyilo hara roceta nd oote-otarby acorhorn opaost r th ut.of.in.r.......olysi an Froen tns oproe rrlieaan ifla InlltiO My18 - 24 - ANNU- _ P4c 4 of 5 gpe Oo03S NATIONAL PRODUCT n ti981h/2 F AI nATz O W NORYH (. in constant ertol Us an, L9/. tj~ Av .) 1980/81 IiWT82 NF? at kra*t Nieea 223.2 100.0 0.2 -4.9 10.9 Sroeo Dometic Im..otat 61.7 27.6 27.9 -2.3 -17.8 Groas National SO17.0 7.6 Current eoeact "lawo -4.7 20.0 Exporte of Gooad, 118 61.7 27.6 11. -40.7 19.6 Ioportn of "oads, NB -116.2 52.1 8.7 -9.6 -21.0 OUTT. LABOR roRnZ AND PRODUC IVITT 1 I 1980/a VYlue Added Iabor Yoroe* / V.A. Per Yo r US1UNi. -£ hirn id- ur Agrioultuz 51.6 27.4 218.8 79.0 235.6 34.7 ZAduatry 26.6 14.1 24.9 9.0 1,068.3 157.1 erig 1tO.2 I8-5 33.2 12.0 3.319.3 U8.7 Total/Average 188.3 100.0 277.0 100.0 679.8 100.0 CENIRAL GOTU0T FIJAN0C Daloais Mm. Pereent of 0D3 Current Yleeipts 88.3 18.0 20.4 Current Nxpenditar -113.5 23.1 19.7 Current Surplas -25.3 5.1 0.7 Capital Zrpedtuz'e -71.2 14.5 12.6 Overall Balanoe -96.5 23.0 11.9 External Asuistance (net) 88.9 18.1 10.9 YOM, CREDIT and PRME t ~~~~~~~~~~~1979/80 , 1980/81 198t/62 Killion Daela Outstanding nd-Pi 'oney end Quani Nosey 74.1 87.0 98.8 Claima on Public Sector 84.6 104.5 130.0 Claims on Privato 8ector 91.6 104.1 106.9 (Percentace. cr Index Nuabere) Monqy end Quadi Xoney ac S of CDP 18.3 20.8 20.1 General Price Index (1976/77 * 100) 124.5 137.0 148.1 Anna l Percetate Cbanre. In: General Prioe Index 5.0 10.0 8.1 Clail. on Public Sector 61.8 23.5 24.4 Claims on rrivate Sector 25.5 13.6 2.7 lotet All conversions to dollars in thin table are at the avorage exchange rate prevailing during the period covered. 2/ Pical year *oding June 30. 2/ Labor force in 1980. ARmA I 25 Paso~~~~~~~t 5 Of 5 _-v - 25 - WiT~ "AM2E. P Dt UM CAPYAL n DAWN o0 mxuman Om I (AVUAGU It9T9 - 1961 M2) . I 975tT6-I976/7 o 2.E!2 U38 Em A Cro_aimat ?r*Aat. 20.8 56.1 Imports af ee 65.9 - 105. .7 Orcodauta (abelad) (12 2) (55.1) rmports of G a 13 -73.6 -169.2 -116.2 Oil ae:a)2 *e..urce Cap (ae at -) - 7.9 - 63.7 - 54.5 Cake 2.2) Interest Paata (net) 1.6 -I.E -5.3 l ° and Fisl nr?od.t. 3.o 8.1 Worker, Remittmane -1 .2 -4.5 -3.3 Othcr F ctor Pepueta (met) -0.4 -2.3 -2.8 All other Coiwdities / 13.3 55 Not ?re,ef*r 2.3 15. 19.1 Balance on Curreat Leo-t -5.4 -56.0 -44.7 70tcl 37.1 100.0 Direct Poreim Inve 1.2 -1.5 5.9 let N A L/S Borrei 2.7 22.4 15.3 Disbursenta (-3.0 (22.51 .IMIAL DM. December 31 1960 Amortizatim (-0.3) (1) s wlm Capital Greats 0.4 9.9 11.2 Other Capital (et) -1.5 4.2 2.8 Public Debt, incI. anarateed 218.3 Other Item ni.e. 3.0 17.1 -10.3 7on-Cuarant*d Private Debt lotel Outatandtig and Diabara 95.4 Not Change Iee,. (+ - iaro-s,) 0.4 -14.3 -19.7 lot Reserwe (sad yew) 63.7 -36.4 -115.7 DEM suvict RATIO FM 19eo 21 1 Paol end Related Netortal* Public Debt. incl. guarmateod 1.1 'on-Guarant;ed Private Debt Imports 4.7 15.4 6.3 lotal Outstauding end DiLbarse 1.1 of whicb: Petreleum (4.1) (14.1) (6.6) import. of whiob: Petrole - - - iRD/IDA INWDIOG *a of April 30. 1903 RATe OF EXCIAGI fI -IDA Outatandisyand Diebermed - 23.8 USsi .61/Jhleei 2.26 1 .72 2.29 Uodimbusa.. - 3.5 Outstanding inol. Uadiabtear - 27.4 rf mports recorded l Ceatoom _12. 2/ Other do_etic exports and r owdad ra-eqerte. R fatio oo debt service 196 to exorts of goode ad mom-tactor aerviae 19mM. Augmt. 1953 - 26 - ANNEX II Page 1 of 1 THE STATUS OF BANK GROUP OPERATIONS IN THE GAMBIA* A. Statement of IDA Credits (as of March 31, 1984)1/ Amount (less cancellations) Credit (US$ million) Number Year Borrower Purpose IDA Undisbursed Five credits fully disbursed. 19.38 814-GM 1978 Republic of Rural and Urban The Gambia Enterprises Project 3.00 0.03 897-GM 1979 Republic of Highway The Gambia Maintenance Project 5.00 1.64 1187-GM 1981 Republic of Energy Project 1.50 3/ 0.63 4/ The Gambia 1266-GM 1982 Republic of Second Banjul Port The Gambia Project 6.50 3/ 3.33 4/ Total 35.38 5.63 of which has been repaid 0.18 Total now held by IDA 2/ 35.20 Total undisbursed 5.63 I/ This list does not include Cr. 1443-GM, Urban Management and Development Project for US$ 11.5 equivalent which was approved by the Board on March 6, 1984, but has not yet been signed. 2/ Prior to exchange adjustments. 3/ US$ equivalent computed at the rate of approval date. 4/ Undisbursed balance computed at the March 31, 1984, rate of one SDR= US$1.06420. * The status of the projects listed in Part A is described in a separate report on all Bank/IDA financial projects in execution, which is updated twice yearly and circulated to the Executive Directors on April 30 and October 31. - 27 - ANNEX II Page 2 of 2 B. Statement of IFC Investments (as of March 31, 1984) Fiscal Year Obligor Type of Business Loan Equity Total 1983 Kombo Beach Hotel Ltd. Tourism Hotel 2.9 - 2.9 Total Gross Commitments Less Cancellations, Terminations, Repayments and Sales Total Commitments now held by IFC 2.9 - 2.9 Undisbursed Balance 0.0 - 0.0 - 28 - Annex III THE GAMBIA SECOND AGRICULTURAL DEVELOPMENT PROJECT SUPPLEMENTARY PROJECT DATA SHEET Section I: Timetable of Key Events (a) Time taken to prepare project: September/October 1980 - September 1982 (b) Project prepared by: Ministry of Agriculture assisted by RMWA and ODA staff (c) First IDA mission to consider project: June 1980 (d) Date of departure of Appraisal Mission: September 1982 (e) Date of completion of negotiations: March 1984 (f) Planned Date of Credit effectiveness: July 1984 Section II: Special IDA Implementation Action None. Section III: Special Conditions Actions to be taken by the Government 1) i) Appoint a civil work administrator acceptable to the Association to oversee the project building/construction program; ii) by December 31, 1984 establish Divisional Coordination Committees in each Division (paras. 32 and 33); 2) By December 31, 1984 present to the Association proposals for the reorganization of the Ministry of Agriculture (para 34); 3) Submit to the Association for its review and comments, by March 31 of each year the annual research program for the agricultural research station at Sapu and for its outstations (para. 36); 4) By December 31, 1984 submit to the Association a pricing policy statement for certified and improved seeds (para. 37); 5) Cause GCU to establish and maintain a revolving fund into which all farmers' loan repayments would be made (para. 41); 6) Review annually with the Association and IFAD the adequacy of GCU's interest rates and interest spread to cover costs and cause GCU to implement ally necessary adjustment in interest rates (para. 41); - 29 - 7) Carry out by December 31, 1984 a study of GPMB's operations to assist in the improvement of its operations, including its pricing mechanism (para. 43); 8) Eliminate fertilizer subsidies by June 30, 1988 and also announce the price adjustment for fertilizer by no later than December 31, annually (para. 44); 9) Allocate annually sufficient amounts of foreign exchange to meet the cost of recurrent fertilizer imports (para. 44); 10) Allocate the project's cash requirements in MOA's budget and release all necessary funds quarterly in advance (para. 46); Condition of disbursement Following the mid-term review to be carried out by June 30, 1986, agree on an action program with the Association for the remainder of the project period by no later than October 30, 1986 (para. 45); Conditions of effectiveness 11) Establishment of a Project Coordinating Unit and appointment of the Project Director and the project accountant (para. 32); 12) Establishment of the Project Coordination Committee and of the Project Coordination Working Committee (para 33); 13) Merger into one single organization of all rainfed crop extension services (para. 34); 14) Execution and delivery of the subsidiary loan agreement between Government and GCU (para. 59); 15) Opening of two Special Accounts (para. 59); 16) Fulfillment of all conditions precedent to the effectiveness of the IFAD loan and Italian grant (para. 59); 17) IFAD to appoint the Association as Cooperating Institution to administer the IFAD loan (para. 59). N' ~~~~~~~ TATWRFC----------------- I T BIRDlo 8T2 K N' '- ~ ~ ~ -: TAFRT MAE~ E N IL~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 'A I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~7 S E N G // A \ I~~~~~~~~~~~~~~ CE / / ''I /1 T'-AAN- -R-'-T- H N K, ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ J- A~ANETA, N[ -A'"' ANTNTI! 'J IJKj 'TeT I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I1 I /L~Z I A~~~~~~~~,.A 0 w ~ ~ ~ ~ ~ I~!N, Blr'--'-V 'A /~ ~~A s E N G DE VE LOMA P-N T PPGJECT~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~N NAT INC A N ANNA~~~~~~~~~~ANI '-'-N NA~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 5 0l~1NHL.U,TR J m ICA N S I DEVELOPMENT PROJECT~~~~~~~~~A,I C~ ~ ~ ~ ~ ~ ~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~N' ON I 'C9 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ - r "N'' A ~