Report No. 297a-UV FILE COPY Appraisal of Bougouriba Agriculturai Developrment Project Upper Volta May 10, 1974 Western Af rica Regional Office Not for Public Use Document of the International Bank for Reconstruction and Development International Development Association Thio repurt was prepared for officiai use oniy hy the Bank Croup. It may r,ot ho publrshed quoted or cited without Bank Croup authorization. The Bank Group dues not arcept responsibility for the accura(y or completeness of the report. Currency Equivalents US$ 1.00 = CFAF 250.00 CFAF 100 = US$ 0.4 Weights and Measures 1 metric ton = 0.984 ton 1 kilometer = 0.6215 mile 1 hectare - 2.47 acres Abbreviations AP Association en Participation END Banque Nationale de Développement CER Centre dtEducation Rurale CFDT Compagnie Française pour le Développement des Fibres Textiles CIDR Compagnie Internationale du Développement Rural CSPP Caisse de Stabilisation des Prix des Produits DDR Direction du Dèveloppement Rural FAC Fonds d'Aide et de Coopération FED Fonds Europeen de Développement GERDAT Groupement d'Etudes et de Recherches pour le D4veloppement de l'Agronomie Tropicale IAR Institute for Agricultural Research IITA International Institue for Tropical Research IRAT Institut de Recherches Agronomiques Tropicales et des Culture vivriéres IRCT Institut de Recherches du Coton et des Textiles Exotiques IRHO Institut de Recherches pour les Huiles et Olèagineux MPDET Ministère du Plan, du Développement Rural, de l'Environnement et du Tourisme OFNACER Office National des Céréales ORD Organisme Regional de Développement ORSTOM Office de la Recherche Scientifique des Territoires d'Outre M. RDF Rural Development Fund Project WARDA West African Rice Development Association Fiscal Year: January 1 - December 31 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPHENT PROJECT Table of Contents Page No. Summary and Conclusions ............................. . . i-iii I. INTRODUCTION... . .. ... 1 II. BACKGROUNDD.. ........ 2 A. GCneran.................... 2 B. The Drought. . .... 3 C. Agricultural Sector .......................... 3 D. Institutionst.i. .o.n..... .. ..... ... 5 E. West Volta CottonProject.................... 7 F. Agricultural Research .......... IIl. TUE PROJECT AREAA... ............ 8 IV. THE PROJECT .............. ... ..10 A. General .. ................... , 10 B. Detailed Features .1..... .. . . .... il V. COST ESTIMATES AND FINANCIAL ARRANGEMENTS .............. 15 A. Projects Costs o s ts....................... . 15 B. Proposed Financing. ....... . 16 C. Procurement and Disbursement . ....... 19 D. Accounts and Audit. ..... ..... . .. 0.... 20 VI. ORGANIZATION AND MANAGE MENT.............. 20 A. General ............. 0... .0.0.4 .... .0.... 20 B. Project Organization . . ..21 C. Staffingt a f f i ng....... . .... . 21 D. Staff Training. ........ . ...... ....... 22 E. Credit ............... ,,..,.... 22 F. Association en Participation............. 23 G. Research s e a r ch.. .. ......... 24 This report is based on the findings of an appraisal mission composed of Messrs. C. Bourgin, J. L. Ropiteau, M. El-Helw (IDA) and, C. Delapierre (PMWA). TABLE OF CONTENTS (Cont'd) VII. YIELDS AND PRODUCTION, MARKETS AND PRICES, FARMERS' BENEFITS AND GOVERNMENT BENEFITS ............... ..... 24 A. Yields and Production ...................*.. 24 B. Markets and Prices .... . 25 C. Farmers' Benefits ....................... . 26 D. Impact on Government Finances ............... 27 VIII. BENEFITS AND JUSTIFICATION .. 27 IX. RECOMMENDATIONS ...... ............... ...................... . 29 ANINEXES 1. General Agricultural Statistics Table 1 - Cereals Donations received by OFNACER Table 2 - Cultivated Area, Production and Yield per ha Table 3 - Development of Production of Major Crops Table 4 - Agricultural Exports 1966-1970 Table 5 - Cotton Area, Production and Yields 1961-1972 2. Onchocerciasis (River Blindness) Table 1 - Population suffering from Oichocerciasis Table 2 - Evaluation of Effects of Onchocerciasis on the National Economy of the Volta Basin Countries 3. Institutions 4. Organismes Regionaux de Developpement Table 1 - List of ORD's Table 2 - Proposed Organization Chart for Rural Develop- ment Services 5. Agricultural Credit in Upper Volta Appendix 1 - Banque Nationale de Developpement (BND) Financial Projections Table 1 - BND Interest Rates and Repayment Terms Table 2 - BND Repayment of Short and Medium-Term Agricultural Credit by ORD's Table 3 - BND Outstanding Credits Table 4 - BND Agricultural Credit Table 5 - BND Income Statements Table 6 - BND Cash Flow Statements Table 7 - BND Balance Sheets 6. Association en Participation Table 1 - Lint Income Statements Table 2 - Seed Income Statements TABLE OF CCNTENTS (Cont'd) Table 3 - Development Fund Table 4 - Balance Sheets 7. West Volta Cotton Project (Credit 225-UV) 8. Research 9. Bougouriba ORD Table 1 - Income Statements Table 2 - Balance Sheets Table 3 - Area, Population and Number of Farms Table 4 - Area under Principal Crops 10. Agricultural Development Component Table 1 - Project Area Crops and Production Table 2 - Total Area and Project induced Productions 11. Livestock Services Component Table 1 - Herd Development Projection 12. Training Component 13. Wells Component 14. Road Improvement Component Table 1 - Roads to be Improved 15. Project Costs Table 1 - Cost Summary and Financing Table 2 - Staff Salaries (p. 1,2) Table 3 - Buildings (p. 1,2) Table 4 - Vehicles Table 5 - Equipment (p. 1,2) Table 6 - Operating Expenses (p. 1,2) Table 7 - Farm Inputs and Implements Table 8 - Studies and Scholarships 16. Estimated Disbursement Schedule 17. Marketing and Prices Table 1 - Marketing and Export of Agricultural Commodities Table 2 - Number of Live Animals Exported Table 3 - Meat Production Table 4 - Export of Skin and Hides Table 5 - Caisee de Stabilisation des Prix des Produits (CSPP) Annual Price Support and Receipts TABLE OF CONTENTS (Cont'd) Table 6 - p.1,2,3 - CSPP Statistical Prices Table 7 - Production and Prices (1967-1972) Table 8 - Economic Prices (1973/ton) Table 9 - Lint Price Projections Table 10 - Cotton Seed Price Projections Table 11 - Groundnut Price Projections Table 12 - Sorghum Price Projections Table 13 - Maize Price Projections Table 14 - Rice Price Projections Table 15 - Meat Prices Table 16 - Some International Beef Price Series 18. Farm Budgets Table 1 - Gross Income Table 2 - Total Manday Requirements Table 3 - Farm Budget Model No. 1 Table 4 - Farm Budget Model No. 2 19. Impact on Government Budget Table 1 - Impact on Government Budget 20. Economic Rate of Return Table 1 - Agricultural Program Table 2 - Livestock Table 3 - Sensitivity Organization Chart l4aps UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Summary and Conclusions i. Upper Volta's economic development is dependent upon agriculture; even under normal climatic conditions it needs to import some 30,000 tons of cereals annually. Because of the many soîl and climatic constraints, prospects for a rapid increase in agricultural production are poor. However, there is a relatively good and, so far, unexploited potential for agriculture in the southern areas where rainfalls exceed 1,000 am per year. Government now intends to give priority to the development of these southern areas for both crop and livestock production. ii. The Government of Upper Volta has requested IDA to help finance an agricultural development project in the Bougouriba ORD of the southern Black Volta region. The project was prepared by CIDR 1/ and a report submitted to Government in December 1972. This report is based on the findings of an appraisal mission that visited Upper Volta in April/May 1973. iii. The main purpose of the proposed project is to increase production of seed cotton (8,800 tons), sorghum (1,300 tons), maize (5,000 tons), ground- nuts (250 tons), rice (300 tons), and meat (1,500 tons). Most of the cotton would be exported and 30X of meat. Cereals would reduce imports. iv. The project would be carried out over four years (1974-1977). The main components are: (a) providing technical assistance to the Ministry of Plan, Rural Development, Environment and Tourism (MPDET); (b) providing the Bougouriba ORD with the means to implement the project; (c) providing 16,000 families with extension services; (d) providing efficient veterinary services to the ORD; (e) creating a training center for project staff and farmers; (f) creating a center to carry out adaptive research and seed multiplication; 1/ Compagnie Internationale du Developpement Rural. - il - (g) improving domestic water supply through a digging program covering 120 wells; (h) improving about 660 km of secondary and tertiary roads; (i) providing participating farmers with credit; (k) carrying out studies for preparing road projects. v. The project would be the responsibility of MPDET; it would be carried out by the Bougouriba ORD. Under the Credit a unit would be created, within MPDET to coordinate, control and evaluate development programs or projects. vi. Project costs are estimated at US$10.2 million and the foreign ex- change component at US$5.4 million or 53% of total costs. Principal com- ponents are: Technical Assistance US$0.3 million; ORD headquarters US$0.8 million; agricultural development US$2.3 million; livestock services US$0.5 million; training center US$0.5 million; research center US$0.8 million; wells program US$0.9 million; road program US$0.7 million; topographic unit US$0.06 million; farm inputs and implements US$1.1 million; studies US$0.3 million; and contingencies US$1.9 million. The proposed IDA credit of US$8.0 million would finance 79% of project costs. vii. IDA disbursements would be made against 87% of all project costs excluding fertilizers and insecticides, and 100% of the training copsultant fees and 100% of the cost of studies. US$1.4 million of the IDA credit covering project contingencies would be unallocated. Government would finance US$1.2 million through a Development Fund created for that purpose and receiving the proceeds of a levy assessed on cotton production. BND would tap unused lines of credit of external agencies to finance US$0.65 million, 100% of inputs required for cotton and 50% of inputs required for cereals. Farmers would finance US$0.35 million by paying cash for 50% of the inputs required for cereals. viii. International competitive bidding in accordance with IDA guide- lines would be used to procure vehicles (US$0.33 million), equipment needed for the wells and road programs (US$0.34 million) and for farm implements (US$0.27 million). Contracts for the construction of houses and stores (US$0.9 million) would be let through local competitive bidding. Studies (US$0,2 million) would be carried out by internationally recruited consultants. ix. The overall economic rate of return is 68%, 74% for the agricul- tural component and 56% for the livestock component. The estimated average annual net foreign exchange earnings from the project is US$5.3 million starting in 1978/1979. x. Farmers' net income after taxes would increase on average by CFAF 60,000 over four years (US$3.8 million for the project area). At full devel- opment the project would improve employment opportunities for 16,000 farm families. - iii - xi. The project is suitable for an IDA credit of US$8.0 million to the Republic of Upper Volta. UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT I. Introduction 1.01 The Government of Upper Volta has asked IDA to help finance an agricultural development project in the Bougouriba area of the Black Volta region. The project was prepared by Compagnie Internationale du Developpement Rural (CIDR); and preparation costs were financed under Credit 225-UV, the ongoing West Volta Cotton Project. 1.02 This report is based on the findings of an appraisal mission com- posed of Messrs. C. Bourgin, J.L. Ropiteau, M. El-Helw (IDA) and C. Delapierre (PMWA), which visited Upper Volta in April and May 1973. The mission also supervised Credit 225-UV, and progress made and experience gained with the latter have been used in drawing up the integrated project which is the sub- ject of this report. 1.03 Government attaches highest priority to development of the agricul- tural sector in the better rainfall areas and has three basic objectives: (a) self-sufficiency in food production, (b) higher farm incomes, and (c) devel- opment of the country's livestock resources. The proposed project would be the first phase of a larger program aimed at achieving these objectives in the Diebougou and Gaoua districts and would affect a rural population of about 360,000 people. 1.04 The proposed project would be IDA's third lending operation for agriculture in Upper Volta. The West Volta Cotton Project (Credit 225-UV) started in 1971, and the Rural Development Fund Project (Credit 317-UV) fol- lowed in 1972. The Cotton Project, involving a US$ 6.2 million IDA Credit, aims at increasing the area under cotton as well as cotton yields on some 46,000 farms in the West Volta area through the financing of extension ser- vices, credit to farmers, processing facilities, and feeder road improvement. The project, which is having an impact on the lives of some 320,000 people, is progressing satisfactorily although more slowly than originally envisaged. The Rural Development Fund Project, involving an IDA Credit of US$ 2.2 million is now getting underway after a slow start; it comprises a large number of small-scale development activities designed to improve the standard of living of 300,000-450,000 people through an increase in agricultural production and an improvement in health conditions. 1.05 IDA fînanced a Cotton Road Project (Credit 316-UV) in 1972, and recently approved a Rural Education Project. These projects are also con- tributing to the agricultural development of the country. - 2 - II. Background A. General 2.01 Upper Volta is a landlocked country lying immediately to the south of the Sahara desert and north of the Ivory Coast and Ghana. It has an area of 274,000 km2 and its population of 5.5 million is estimated to be growing at about 2% a year. The productive population is estimated at about 2.0 mil- lion people of whom 90% are engaged in agriculture and 6% in livestock ac- tivities. Some 500,000 Voltaics, 75% of them male, live in the Ivory Coast and Ghana, and seasonal migration between Upper Volta and its neighbors is common during the dry season. Migration is stimulated by the harsh living conditions of Upper Volta and the better earning opportunities offered by the coastal countries. 2.02 The country suffers from a number of serious development constraints, not least of which are: (i) distance from the sea (the closest seaport, Abidjan in Ivory Coast, is 1,200 km from the capital, Ouagadougou); (ii) generally poor and shallow soils except in the south and south-west; (iii) sparse rainfall, ranging from 1,000-1,300 mm in the south and south--west to 500 mm in the north; this prevents the growing of all but a very few perennial crops and limits the range of annual crops that can be grown; (iv) debilitating diseases that affect most of the population; bîlharzia alone is estimated to affect 2 million people and onchocerciasis (river blindness) some 400,000; (v) infestation of the valleys of the Red, Black and White Volta Rivers by onchocerciasis which prevents farmers from settling and benefitting not only from the country's richest soils but its most favored climates; (vi) emigration of young and energetic people to neighboring countries; (vii) lack of mineral and other natural resources; and (viii) limited numbers of skilled technicians and of persons skilled and experienced in management. 2.03 GDP in 1970 1/ was estimated at CFAF 86 billion, giving a per capita GDP of about CFAF 16,400 or US$ 59. Rural incomes in 1970 averaged about US$28, of which only about US$11 was in cash. Agriculture and livestock are estimated to have contributed 38% of GDP in 1970, other primary sectors 6%, industry 21% and services 35%. Of total GDP, subsistence production accounted for 35%. With a GDP per capita of less than US$100 Upper Volta is one of the world's poorest nations. B. The Drought 2.04 In recent years Upper Volta has suffered a series of droughts, particularly in 1968, 1970 and again in 1972. As a consequence, seri- ous food shortages have developed, and in northern areas of the country many animal and some human lives have been lost; another consequence has been accelerated emigration to the coastal countries. Upper Volta received food from the international donor community totalling 34,200 tons in 1971, 36,900 tons in 1972 and at least 55,700 tons in 1973 (Annex 1, Table 1). These dona- tions are inadequate to cover all needs, and emergency food relief distri- bution has not always been effective throughout the disaster area where, con- sequently, there is much real hunger. 2.05 IDA recently approved a Drought Relief Fund project 2/ under which six Sahelian countries, including Upper Volta, will receive lines of credit to implement subprojects to reestablish the productive base of areas badly stricken by the drought. A credit of US$2 million was approved for Upper Volta for the construction of wells and earth dams and repair of feeder roads. C. Agricultural Sector 2.06 Upper Volta's economic development is dependent upon that of its agriculture. In 1970 gross income from agriculture was estimated at about CFAF 22.8 billion (US$82 million) and that from livestock at about CFAF 8.2 billion (US$29 million). The total area cultivated is about 2.2 million ha with cereals accounting for 82% of the total cropped area (Annex 1, Table 2). 2.07 Even with the very large proportion of cultivated land under cereals, the country is not self-sufficient in food production; and under normal cli- matic conditions it needs to import about 30,000 tons of cereals annually (Annex 1, Table 1). Cereal yields are low, averaging only about 620 kg/ha in good rainfall years, and reflect poor soil and climatic conditions, lack of improved varieties of the main cereals, sorghum and millet, and the lack 1/ 1970 figures are converted into dollars at an exchange rate of US$1 - CIAF 278. 2/ Appraisal report No. 229a-WA dated October 24, 1973. - 4 - of modern cultivation techniques, especially the use of fertilizers. In 1972 the national cereal yield was estimated to have averaged an extremely low 420 kg/ha, resulting from an almost complete crop failure in northern districts and reduced yields elsewhere. 2.08 Exports from the agricultural sector increased at the rate of 14% per year in the period 1966-1969 (Annex 1, Table 4) but the pace has since decreased with the onset of the drought cycle. In 1970 1/ agricultural ex- ports totalled CFAF 4.7 billion (US$16.9 million) in value with livestock contributing CFAF 1.9 billion (US$6.8 million) or 40% of the total; other data are: cotton, CFAF 1.5 billion (US$5.4 million), 32%; shea-nuts, CFAF 0.5 billion (US$1.8 million), 11%; groundnuts CFAF 0.3 billion (US$1.1 million), 6% and other products, CFAF 0.5 billion (US$1.8 million), 11%. Livestock exports decreased from being 75% of the sector's exports in 1966 to 40% in 1970 as a consequence of very dry conditions in northern areas. Conversely, the share of cotton rose from less than 10% to 32% in the same period. 2.09 Because of the many constraints, prospects for a rapid increase in agricultural production and farm incomes appear poor. However, there is a relatively good and so far unexploited potential for agriculture in areas located south of the 1,000 mm isohyet. The project area falls into this category. In these areas conditions are suitable for a wide range of annual crops, and especially for maize for which high yielding varieties are avail- able and which can gradually substitute for millet and sorghum. These areas are underdeveloped either because they are infested with river blindness (Annex 2) or because Government development efforts have been concentrated on the densely populated Mossi Plateau. However, development in the south west has been given some impetus in recent years through area development projects such as that financed by FED in the Banfora region, and the West Volta Cotton Project financed under Credit 225-UV. Government has become aware of the potential of these southern areas and now intends to give priority to their development for both crops and livestock production. 2.10 Development of the south will be further stimulated by the oncho- cerciasis control campaign that will start in 1974 and which eventually will open up large areas for settlement for both crop and livestock production. However, the proposed project area is relatively free of onchocerciasis and development can proceed forthwith. The eradication program carried out by WHO, will start in 1974 in the Black Volta Valley, and in 1975 in the Red and White Volta Valleys. Settlement should be possible in 1976-1977 in the Black Volta Valley and in 1977-78 in the other Valleys. All in all, some 470,000 ha of land would be made available for cultivation through the program, and this will be sufficient to settle some 40,000 to 50,000 farm families. In the Black Volta Valley alone, some 200,000 ha would be made available for settlement. Studies of resettlement projects for the White and Red Volta 1/ 1970 figures are converted into dollars at an exchange rate of US$1 - CFAF 278. - 5 - Valleys are already underway with FAC technical and financial assistance, and are being carried out by a newly created public agency, Societe d'Amenage- ment des Voltas. Preliminary studies of resettlement projects for the Black Volta Valley are now being carried out by FAC. 2.11 Farmers must give first priority to ensuring food supplies for their families and second priority to cash crops. The number of export crops that give satisfactory yields in Upper Volta's arid climate and which can bear the high costs of transportation to world markets is limited. Research through the development of better adapted varieties might help. Currently, however, cotton is the best alternative although its production will be governed for the foreseeable future by the overall food supply situation. 2.12 The development and use of improved and well adapted food crop varieties responsive to fertilizers and better cultivation methods would go far to alleviate the problems of the agricultural sector but to obtain cash to purchase needed inputs farmers must grow a cash crop. Government is tackl- ing the project through its cotton development program in which IDA is par- ticipating through Credit 225-UV, and through the proposed project. 2.13 The country's potential for cotton production appears to be about 120,000 tons of seed cotton annually and Government aims at reaching this by 1980 through expanding the program as quickly as management capability permits. The target may be optimistic, but production has already risen quite rapidly from an average of 2,500 tons in the late 1950's to 30,000 tons in the late 1960's. This increase has been made possible not only by a relatively efficient system of extension services but also by the fact that farmers are hardworking and receptive to new techniques. However in 1973 production was affected by the drought and low-producer prices and declined to 26,700 tons. 2.14 After cotton, livestock probably offers the greater scope for early development. Cattle exports are tending to decline, and the industry is plagued by overstocking - due to the competition for land with crops, droughts, diseases, poor herd management and the unsatisfactory organization of veterinary services. If the situation is not improved, increasing domestic consumption could eliminate cattle exports by 1983. A possible livestock project in the Bobo-Dioulasso area has been identified by PMWA; along with the livestock component of the proposed project it could prove to be the first steps in halting the deterioration of the industry. D. Institutions 2.15 Ministry of Planning, Rural Development, Environment and Tourism (MPDET). Following the recent changes in Government (February 8, 1974) development, planning and agricultural activities have been placed under - 6 - the control of one Ministry, and a Minister assisted by a State Secretary 1/. The Ministry is responsible for detailed planning, policy decisions and super- vision of all agricultural activities. The new Ministry has retained all the Technical Departments of the former Ministry of Agriculture and continues to supervise the Regional Development Organizations (ORD). However, the super- vision of the ORD's will be transferred from Direction du Developpement Rural (DDR), to a unit which will also be responsible for coordination between the technical departments of the Ministry under the new organization proposed in Chapter VI. 2.16 Regional Development Organizations. The ORD's were created in 1965 as fully independent entities (Annex 4) to promote rural development in their areas but within the framework of an integrated national rural development policy. Eleven ORD's cover the country, although that for the Sahel region is in an initial stage of establishment. Government is represented in the management of each ORD by a "Commissaire du Gouvernement" 2/ who possesses and exercises considerable controlling powers. Of the ten existing ORD's, only three are 100% financed by Government. In the others, investment and operating expenses are financed by FAC and FED. Only one has Voltaic manage- ment, and the remainder employ foreign development companies as management agents. 2.17 Despite their excellent concept, the ORD's have failed to meet all Government's expectations for sponsoring and maintaining the impetus of rural development. Major reasons for this situation are that: (i) in the absence of a well-defined national policy ORD rural development policy usually has been left to the initiative of the local or external authorities managing the ORD, thus the ORD's exhibit the bias of their varied managers; (ii) the technical departments of the Ministry of Agriculture have carried out their regional activities independently of the ORD's. Chapter VI proposes reforms in the ORD system. 2.18 National Development Bank. The "Banque Nationale de Developpement" (BND) is responsible for financing and managing agricultural credit in the country (Annex 5). BND is a well managed bank which pursues rather conserva- tive credit policies. Interest rates are adequate considering present levels of inflation and the opportunity cost of capital in Upper Volta, and range from 10% for seasonal credit, to between 8% and 11% for medium-term credit for farm equipment. Down payments required from farmers for medium-term credit transactions are large, between 35% and 50% and are a constraint to credit expansion. BND is exploring ways to decentralize its administration of medium-term credit which so far has been handled from its headquarters in Ouagadougou. 1/ Secretaire d' Etat. 2/ Formerly the Director of DDR. -7- 2.19 CFDT and the Association en Participation. Government and Compagnie Frarecaise pour le Developpement des Fibres Textiles (CFDT) concluded a 5 year contract of Association en Participation (AP), expiring in November 1975 under which CFDT promotes development of cotton, Upper Volta's main export crop, and manages cotton ginneries (Annex 6). The AP has been successful, especially in those activities where CFDT has had a relatively free hand, i.e. ginning and lint marketing. Less success has been obtained in maximising the return8 from cotton seed which is handled by Caisse de Stabilisation des Prix des Produits (Stabilization Fund - CSPP). CSPP has made a number of errors, in- cluding (a) distributing excessive amounts of seeds for planting; (b) making local sales to processors at unrealistically low prices; and (c) selling for export at prices well below the world price. Losses through these ineffi- ciencies in 1972 may have amounted to some CFAF 50 million, consequently possible solutions to these problems are proposed in Chapter VI. E. West Volta Cotton Project (Credit 225-UV) 2.20 The West Volta Cotton Project which started in 1971 has achieved considerable success when compared with other cotton producing areas of Upper Volta (Annex 7). In 1973 the project area accounted for 73% of all cotton produced in Upper Volta compared with 51% in 1970. Yields of 670 kg/ha are at least 50% above the national average. The cotton development component of the proposed project is in a great measure based on experience gained through the West Volta Cotton Project. F. Agricultural Research 2.21 Agricultural research in the country is carried out by three spe- cialized French overseas institutes 1/ under contract with Government (Annex 8). Research has been carried out on most food crops (sorghum, millet, maize and rice). Some improved maize and sorghum varieties have been developed, yielding 4 tons/ha. Research has also been carried out on groundnuts and cotton. Although to date no research activities have been conducted in the project area, all three research institutes have now begun to direct their attention to the Black Volta Valley. Since June 1970 these research Insti- tutes have been coordinated through ŒERDAT 2/, through which they share common facilities but retain their contractual autonomy. 1/ IRAT (Institute de Recherches Agronomiques Tropicales et des Cultures Vivrieres). IRHO (Institut de Recherches pour les Huiles et Oleagineux). IRCT (Institut de Recherches du Coton et des Textiles Exotiques). 2/ GERDAT (Groupement d'etudes et de recherches pour le developpement de l'Agriculture Tropicale). -8- III. THE PROJECT AREA 3.01 Location. Located in the southwest of the country, and lying between the Black Volta and Bougouriba Rivers, the project area comprises the territory of the Bougouriba ORD which itself consists of the adminis- trative districts of Diebougou (7,090 km2) and Gaoua (10,360 km2). The ORD is about 6% of the total area of Upper Volta (see Map). 3.02 Climate. The project area shares with the adjacent Banfora ORD the best climatic conditions for agricultural development in Upper Volta. Total annual rainfall varies from 1,000 mm in the North to 1,200-1,300 mm in the South. While evapotranspiration rates are high, water is in surplus for plant growth from June through September, and this is adequate for the successful cultivation of a wide range of annual crops. 3.03 Water. Three streams flow through the area: the Black Volta which is perennial, and its tributaries, the Bougouriba and the Poni. Onchocerciasis and trvpanosoniasis are widespread in the gallery forest along these river6 and these areas are uninhabited. In higher healthier areas groundwater sup- plies are abundant, and the water table generally not deeper than 20 m. While numerous traditional wells exist in the area, many are dry four to five months a year because they are too shallow due to poor construction techniques, and bad maintenance. 3.04 Topography, Soils and Vegetation. The topography of the region is undulating with eroded hills and large stretches of plains crossed by ephem- era' small streams. Soils have been studied by ORSTOM (Office de la Recherche .ciertLifique des Territoires l'Outre Mer) and a map (scale 1:500,000) has been ,2iddished. Some 100,000 ha of the area are of excellent soils, with 25-30% clav; some 800,000 ha are leached ferruginous tropical soils, suitable for cotton, cereals and groundnuts; and about 200,000 ha are hydromorphic soils where rice, vegetables and fodder crops can be grown. Vegetation in upland areas is savannah woodland, typified by Butyrospermum (sheanut) and acacias in association with perennial grasses, mainly Andropogon Gayanas, Paspalum and Panicum. About 6-7 ha are needed to support an animal unit 1/. 3.05 Population. Population of the area is estimated at 360,000, about E_5% of Upper Volta's total population, and to be growing at 2% a year. Of these, 190,000 people live in the Diebougou district, and 170,000 in Gaoua. The Dagari tribe is predominant in Diebougou and the Lobi in Gaoua. People from the densely populated Mossi plateau are steadily migrating into Diebou- gou, where they now represent about 14% of the population. 3.06 Land Tenure. Farmers possess the right of usufruct, and land is allocated to families by the "Chef de Terre" in consultation with the Council of Elders of the village. The head of the family is responsible for allo- cating land among the members of the family. This traditional system is strictly enforced, and the farmers have a satisfactory security of tenure. 1/ An animal unit is defined as a weaned bovine. - 9 - 3.07 Farming System. There are about 42,000 farms and 750 villages in the project area. Altogether some 200,000 ha of land are cultivated and this is equivalent to 10% of the total land cultivated in Upper Volta. Average population pressure is low at about 24 inhabitants per km2, but in the onchocerciasis free, or relatively free zones, population is much more dense and more than 50% of the land is under cultivation. About 80% of cultivated land is under cereals, mostly sorghum, and the rest under a variety of crops of which groundnuts, yams, sesame, cowpeas and cotton are the most important (see Annex 10). The area's cattle herd is estimated at 106,000 or 3 head per farm, and the area is peculiar to West Africa in that it is one of the few areas where the cattle are owned by farmers and not nomadic or semi-nomadic herdsmen. Farm families eat only the small domestic animals such as sheep, goats, pigs and poultry, their cattle are sold for cash or allowed to ac- cumulate and to become the farmer's "bank". Health conditions of livestock are poor. Pleuropneumonia is endemic and, since 1971, rinderpest, once under control, has reappeared (see Annex 11). 3.08 Communications. The road network in the Bougouriba ORD includes 375 km of adequately maintained primary roads, for which PWD is responsible. There are also 200 km of secondary roads, which are not maintained at all, and about 460 to 500 km of very poor rural tracks which have been neglected for years. Communications are also adversely affected by the collapse of a number of culverts and small bridges. 3.09 Health and Health Services. Health conditions are poor and intestinal diseases, malaria and bilharzia are prevalent. Onchocerciasis is serious in the few villages situated along the Black Volta, Bougouriba and Poni rivers. In some communities as many as 40% of the people are affected by the disease, but it is much less severe in the densely populated highlands where most project activity will occur. Malnutrition is widespread and infant mortality is high. Health improvement is essential for the well being of the population and will be the basis for future development of the area. Gaoua District is served by a fairly well equipped hospital at Gaoua with 124 beds. Diebougou District sends seriously ill patients to the hospital at Bobo Dioulasso. In addition, there are "22 dispensaries" and 10 maternity centers throughout the project area; mobile field unit for making regular checks on and for endemic diseases; and a team of social workers for mother and child care. Government efforts will be supplemented by international assistance and the project area will be the first to be freed of onchocerciasis. However, the impact of the river blindness campaign is unlikely to be felt before 1975 or 1976 at the earliest. 3.10 Education. Over 90% of the population are illiterate, although the average rate of school-going children in the project area seems to be higher than the national rate (12% compared with 10%). There are 2 secondary schools in the project area. The Rural Education Centers (CER), which number 20 in - 10 - the project area, teach rural youth to read and write, handicrafts, and prac- tical agriculture. Following the signing of Credit 430-UV 1/ for a Rural Education Project, rural education is now a responsibility of MPDET. Thus in each ORD the "Conseiller d'Education Rurale" reports to the ORD manager. IV. THE PROJECT A. General 4.01 The project would be the first major effort to develop the natural and human resources of the Bougouriba area. Although Compagnie Internatio- nale du Developpement Rural (CIDR) a private management consultancy firm, has managed the Bougouriba ORD since 1968, its achievements have been limited, not least due to lack of funds (Annex 9). The ORD is financed mainly under the national budget and available finance is heavily restricted. CIDR has had some positive results in introducing pre-cooperatives and promoting better health care, but it has been able to achieve very little in increasing agri- cultural production and farm incomes. Consequently the quality of life in the ORD has not improved significantly. 4.02 The project would be carried out over a four year period and would involve: (i) providing technical assistance to the Ministry of Plan, Rural Development, Environment and Tourism; (ii) providing Bougouriba ORD with the staff, housing, offices, equipment, transportation, and finance to implement an effective development program in the project area; (iii) providing about 16,000 farm families with the extension and other support services needed to increase their production and incomes; (iv) providing efficient veterinary services for the ORD; (v) creating a training center with teaching facilities for project staff and farmers; (vi) creating a research center to carry out adaptive research demonstration and operate a seed multiplication unit; (vii) improving domestic water supplies through a digging and rehabilitation program covering about 120 wells; 1/ Appraisal Report No. 102a-UV dated June 8, 1973. - il - (viii) improving about 660 km of secondary and tertiary roads; (ix) establishing a topographie unit to map and prepare for the development of land for settlement by migrants; (x) providing participating farmers with seasonal credit for fertilizer and insecticides and medium-term credit for farm implements; and (xi) carrying out the studies and surveys needed for the im- provement of the road network in the project area and in the Leo district. 4.03 The project would not include measures to improve social infrastruc- ture or services other than water supplies. The Government will continue to support existing social services and will develop, with its own or foreign charitable resources, a farmers' cooperative program; cooperative leaders will be trained in the project training center. Because social amenities in the project area are in line with or better than those existing elsehwere in Upper Volta and, because of the financial problems facing the country, it seems appropriate that initial investment in the project area should aim at increasing incomes and tax revenue. The improvement of social facilities, especially health and education, and the development of cooperatives should be part of subsequent phases of development in the project ORD. B. Detailed Features 4.04 Technical Assistance to the Ministry of Planning and Rural Devel- opment Environment and Tourism. The project would provide a senior expatriate technical assistant with experience in management and public finance who would be appointed to MPDET. He would assist in supervising ongoing prograns and projects, in planning future projects and coordinating activities with other Ministries and Agencies involved in project execution and preparation. 4.05 Agricultural Development Program. The development program is summarized below; the table shows, year by year, the number of farmers participating in the project and the areas devoted to improved crops. Details are at Annex 10. - 12 - Number of Area under improved crops (ha) Project Year Project farmers Cotton Sorghum Maize Groundnuts Rice Year 1 1974 10,000 5,500 Year 2 1975 10,500 6,000 5,500 250 100 185 Year 3 1976 13,200 8,750 6,000 1,000 300 350 Year 4 1977 16,000 12,000 8,750 2,500 600 550 4.06 In 1973, about 10,000 farmers were growing some 5,000 ha of cotton and 40,000 ha of cereals. During the first year the project would concen- trate on existing cotton growers and then gradually increase the number of newcomers, to reach a total of about 16,000 by 1977. 4.07 Modernisation of Agriculture. The development of cotton production will gradually improve the whole farm. In principle, cotton grovers will move through three steps of improved practices, as follows: step one will mainly consist of the correct application of insecticides; step two will include fertilizer application and the growing of cereals after cotton, so they can benefit from the residual effect of fertilization; step three will be characterized by introduction of animal drawn implements, better cultiva- tion and expansion of the cultivated area. In many cases it would be desir- able to merge steps one and two. At all steps, farmers will receive improved varieties of cotton, cereals and groundnuts. Details of the various levels of improved cultivation are at Annex 10. 4.08 To insure the proper introduction of modern techniques and varie- ties, the following measures would be taken: (i) the cost to the farmer of insecticide and fertilizer would be maintained at a level attractive to the farmer (para 6.12), and terms of equipment credit would be as recommended in para 6.13; (ii) sprayers would be purchased by the ORD on the basis of one for everv 20 ha of cotton and made available free to groups of farmers, and ultra-low volume sprayers would be gradually introduced; (iii) fertilizer applications and insect control would be carried out under the direct super- vision of extension staff; (iv) farmers would receive improved seeds for cotton and food crops. 4.09 Further incentives would be provided by an increase in the cotton price (para 7.12) and a reduction in the cost of inputs (see para 6.12). Farmers would also be made aware of the considerable benefits to be derived from the livestock program (para 4.10) and the wells program (para 4.15). 4.10 Livestock Development Program. The program would consist of pro- viding veterinary services and especially vaccinations; details are at Annex 11. All cattle in the project area would be vaccinated against rinderpest in 1974 and in 1975 and all cattle under one year of age annually after 1975. All cattle including calves would be vaccinated once a year against pleuro- pneumonia, and in infested areas, cattle, sheep and goats would be vaccinat- ed against anthrax, blackleg and haemorrhagic septicaemia. The total number - 13 - of cattle would increase from 106,000 at present to 126,000 in 1977 and 140,000 in 1984; the incremental livestock production induced by the project would total 8,000 heads in 1977 and 12,000 in 1984. Marketing of meat will not pose problems since traditional channels are efficient. A livestock project is under preparation which covers the whole South-West of Upper Volta; recommendations made under the livestock project, which is expected to begin in 1976, would be applied to the proposed project (see Annex 11, para 10). 4.11 ORD Readguarters and Extension Services. The project area would be divided into six sectors coinciding with zones of homogeneous population and common agricultural practices. Each sector would be divided in about six sub-sectors. The sub-sector center would have a small 70 m2 store for storing farm inputs and crops marketed through the ORD. At each sector center, one house for the Sector Chief, small offices, and a store of 200 m2 would be built. At Diebougou, the ORD Bougouriba headquarters' offices, staff houses for the three most senior executives, and a store of 500 m2 for storage of farmer inputs and marketed produce would be built. There is presently no spare housing in Diebougou, and accommodations of the present ORD staff are deficient. A house for the Deputy Technical Director would be built in Gaoua. 4.12 Livestock Services. ORD offices of 145 m2 for livestock staff, a store of 50 mZ, and a house for the veterinary doctor responsible for the livestock program would be built in Diebougou. Offices and a house for his assistant would be built in Gaoua. There would be 10 vaccination yards throughout the project area. 4.13 Training. At the outset, the project would construct and operate a new training center close to Bobo Dioulasso to serve both the proposed project and the ongoing West Volta Cotton Project (Annex 12). The center would have a capacity of 6,500 trainee mandays per year. Initially, the center would concentrate on staff training, but as the project progresses farmers would be encouraged to come in for weekly courses. 4.14 Research and Seed Multiplication Center. The project would create an adaptive research center close to Diebougou. The experimental program would concentrate on determining high yielding varieties, variety trials, fertilization, insect control and cultural methods. The center would also multiply improved seeds for the project and carry out demonstrations at farmer level in coordination with extension services. Assurances were obtained that Government would take measures to create and operate the center. 4.15 Wells. About 120 wells would be built or rehabilitated throughout the project area to provide adequate water supply to the inhabitants of the 120 villages of more than 1,000 people (Annex 13). In the Gaoua district, a survey is necessary to determine sites suitable for wells. This survey will be carried out by one of MPDET Technical Departments (Hydraulique and Equipe- ment Rural). Each well would comprise a reinforced concrete lined shaft of 1.80 m diameter and 15 m deep, with a precast reinforced concrete sand filter - 14 - column at the bottom of the shaft, bringing the total depth to 20 m. Digging would be done by hand with the help of power drills, using skilled labor paid by the project, and the casual labor provided at half the official wage rate of CFAF 100/day by the well users. This is similar to the program which is currently working vell under the RDF project. 4.16 Roads. Some 200 km of secondary roads would be improved under the project, including the 73 km section of the Pa-D~jipologo road where traffic is expected to be heavy. Up to 500 km of rural tracks would also be improved by grading and reshaping, improvement of drainage, and where necessary, con- struction of culverts, fords and other auxilliary works (See Annex 14). 4.17 TopograhicUnit. A smial topographic unit would be established to survey areas for possible settlement by migrants from the Mossi Plateau. Migrants would benefit from project services as well as already settled populations. 4.18 Farmer Credît. Credit would be made available by BND to farmers for the purchase of fertilîzers and insecticides. Farrm equipment would be financed by IDA and administered by BND. Credit would be distributed and supervised by the extension staff who would have received special training in credit administration as part of their general training. Credit accounts would be kept at the ORD haadquarters, and supervised from the BND branch at Bobo Dioulasso. Assurances were obtained that END would make sufficient credit available to finance fertilîzers and insecticides to the ORD's. 4.19 Road Studies, Studies include two components: a feasibility study and preliminazy engineering of about 73 km of road between Pa Dano and Djipo- logo; and a survey to establish priorities for the improvement and extension of the roads in Leo and Bougouriba districts. The results of these surveys would form the basis for further road development in the Leo and Bougouriba districts. The scope of the studies and terms of reference of consultants carryinlg out the studies would be mutually acceptable to Governrent and IDA, and IDA would receive the consultants reports. Assurances to this effect were obtainedœ 4.20 llealth, Greater crop and meat surpluses would result in better nutrition of the population and more specially of pregnant women and a de- erease in the high mortality rate of the newborn. Existing and planned health services would be able to reach the villages and hamlets through improved access. The villages would receive more dependable and cleaner water sup- plies which could alleviate the distress presently caused by the numerous waterborne diseases found in the area such as trachoma, onchocerciasis, and bilharzia. - 15 - V. COST ESTIMATES AND FINANCIAL ARRANGEMENTS A. Project Costs 5.01 Project costs over the four year project development period (1974- 1977) are estimated at CFAF 2,550 million (US$10.2 million) of which the foreign exchange component is estimated at US$5.4 million or 53% of total costs. Costs are detailed in Annex 15 and summarized in the following table: 8wuary of ProJect Cost ----CFAF millions -------- ------------Us$OOe---------- Local Foreign Total Local Foreign Total F Foreign Ecchange Têchnicel Assistance 45 25 70 180 .00 280 36 ODR Headquarters 116 78 194 460 310 770 40 Agricultural development 326 256 582 1,300 1,030 2,330 44 Livestock services 63 60 123 250 240 490 49 Training center 90 44 134 360 170 530 32 Research and seed multiplication center 112 96 208 450 380 830 46 WelIs program 93 139 232 370 560 930 60 Pcads unit 63 116 179 250 470 720 65 Topographic and resettiement unit 7 8 15 30 30 60 50 Fars inputs and implements 53 213 266 210 860 1,070 80 Studies 20 65 85 80 260 340 76 Project Cost 988 1,100 2,088 3,940 4,410 8,350 53 PhysLeal contingencies 10 12 22 40 50 90 53 Price contingencies 208 232 440 830 930 1,760 53 Total Project Cost 1,206 1,344 2,550 4,810 5,390 10,200 53 - 16 - 5.02 Import duties are not included in project costs but salaries and buildings include taxes totalling nearly CFAF 300 million (US$1.2 million). Import duties are not levied on fertilizers, insecticides or on agricultural equipment and, other goods required for the project would be imported duty free. Such an exemption was granted for the West Volta Cotton Project, financed under Credit 225-UV. 5.03 Estimates for expatriate, civil service, and local contract staff salaries are based on salaries paid under the West Volta Cotton Project, and on Government salary scales. All salaries include an annual increment of 5% to induce staff to live and work in the project area. Building cost estimates are based on those experienced in the West Volta Cotton Project. Vehicle and equipment cost estimates are based on recent quotes from dealers, and cost estimates for fertilizers, insecticides and other farm supplies are based on recent purchases made by CFDT. A physical contingency of 5% has been added to building, vehicle and equipment costs. A price contingency of 5% compounded annually has been employed overall. B. Proposed Financing 5.04 It is proposed that an IDA credit of US$8.0 million be made to finance 79% of project costs including taxes, or 89% of project cost excluding taxes. The credit would cover the foreign exchange requirements of US$5.4 million and US$2.6 million or 54% of local costs. Government would contribute CFAF 300 million (US$1.2 million), Banque iJationale de Developpement CFAF 161 million (US$650,000), and farmers about CFAF 89 mil- lion (US$350,000). Governnent contribution is equivalent to taxes ,included in project costs. A summary of the financing plan is shown below and detailed at Annex 15, Table 1. Project Financing Banque Nationale de ---- IDA ---------- ------Government ------ Developpement -------Farmers -- - ------Total------- CF CFAF CFAF CFAF CFAF millions us$' 000 millions US$o000 f millions US$'000 O millions us$ooo f f millions US$ooo % of Total Technicsl Assistance 61 240 87 9 40 13 70 280 3 ODR,Headquarters 169 670 87 25 100 13 194 770 7 Agricultural development 507 2,030 87 75 300 13 582 2,330 23 Livestock services 107 430 87 16 60 13 123 490 5 Training Center 114 450 87 20 80 13 134 530 5 Research and Seed Multiplication Center 181 720 87 27 110 13 208 830 8 Wells program 202 810 87 30 120 13 232 930 9 Roads unit 156 630 87 23 90 13 179 720 8 Topographic and Resettlement Unit 13 50 87 2 10 13 15 60 1 Farm inputs and implements 58 230 2 il 40 - 122 500 70 76 300 28 266 1,070 10 Studies 82 330 100 2 10 - 85 340 3 Project Cost 1,650 6,590 79 240 960 ll 122 500 6 76 300 4 2,088 8,350 82 Physical contingencies 18 70 82 4 20 18 - - - - - - 22 90 1 Price contingencies 332 1,340 75 56 220 13 39 150 9 13 50 3 440 1,760 17 Total Project Cost 2,000 8,000 79 300 1,200 12 161 650 6 89 350 3 2,550 10,200 lOO - 18 - 5.05 While Government should not experience difficulty in funding its share of project costs, experience in Upper Volta indicates the strong possi- bility of inadequate finance being made available to adequately sustain pro- ject activities in the post development operational phase of the project. At present such recurrent finance for ongoing projects is provided through the General Budget but usually allocations are so small and their payment so frequently delayed that full benefit is lost of finance invested in the devel- opment phase. This occurs even where projects produce substantial revenues for Government. For example, in the case of cotton, profits from the crop accru- ing to Government's Caisse de Stabilisation des Prix (CSPP) were CFAF 195 mil- lion in 1973 yet it is in the IDA project area alone (which is still in the development phase) that production is increasing; elsewhere production is declining due to l'ack of funds to finance effective extension and other sup- port services. 5.06 In order to overcome these financing problems it is proposed that a Development Fund be established. The Fund would: (a) provide Governinent's contribution to the costs of project financed by IDA in cotton producing ORD's; (b) provide finance needed to sustain activities of the projects in the post-IDA credit disbursement phases. Although the Fund would be created for al! ORD's producing cotton, its role would be especially meaningful for those ORD's covered by the West Volta cotton project and tiie proposed project (Diebougou, Bobo Dioulasso and Bougouriba ORD's) which altogetlher account for more than three quarters of Upper Volta's cotton production. For the other (ORD's, where cotton production is low, Fund receipts would be insufficient to pav for extension services and these ORD's would still have to rely on budgetary allocations. 5.07 The Fund would receive as income a fee levied on cotton at the time of lint and export seed sales. iach ORD would have an account with the Fund, and this account would be c:edited with the levies generated by the ORD's cotton production, and debited with any payments made by Government on behalf of the ORD, mostly these would be payments made to civil servants working for the ORD. B_ND would be the Fuld's trustee and be authorized by Government to make payments to meet project expenditures on belialf of Government. Payments to each ORD's account in che Fuind would be allocated to the ORD's on the basis of a formula to be establisned annually. Although the fee would be assessed on cotton production, process from the Fund would be used to pay for extension services promoting the development of all agricultural crops in the area. During the project development period this formula would be agreed annually between Government and IDA. Subsequent to the project development period it is probable that paymeents to each ORD account in the Fund could be prorated on the basis of the cotton production of the various ORD. Calculations (Annex 6, Table 3) show that during the project development period the Fund revenues calculated at CFAF 4,500/ton of seed cotton would be adequate to cover Government's contribution to project costs for both the West Volta Cotton Project and the proposed project. The fee levied on cotton would be subject to annual - 19 - revision, mutually acceptable to IDA and Government. After the project develop- ment period, taking into account the fewer extension workers who would be re- quired, receipts from the Fund should be adequate to pay all ORD expenses that would be incurred through maintaining the projects financed by IDA. Any new ORD activities, however, would be supported from the budget or external sources. Assurances were obtained that such a Fund be established and that during the project development period payments to each ORD account in the Fund followed a formula agreed annually between Government and IDA. A condition of credit effectiveness would be the legal establishment of the Fund. 5.08 Withdrawals from the Fund account would be within the context of annual budgets prepared by the project ORD's. 5.09 It is estimated that a fee of CFAF 4,500/ton of seed cotton equiva- lent would be initially adequate and still leave sizable profits to the Asso- ciation en Participation for distribution (Annex 6, Tables 3 and 4). First payments into the Fund would occur only in mid 1975, thus the Fund would require an advance of about CFAF 150 million to meet Government's contribu- tions to both the West Volta Cotton Project and the proposed project (Annex 6, Table 4). This advance would be reimbursed at the time of the first payments into the Fund by the Association en Participation. A condition of effectiveness would be that the Development Fund had received a CFAF 150 million advance. 5.10 BND's contribution to project costs would be the provision of credit to farmers for fertilizers and insecticides. Such financing should not create problems as BND has unused lines of credit with Caisse Centrale de Cooperation Economique (CCCE), Kredit Anstalt, and the African Development Bank (ADB). C. Procurement and Disbursement 5. 11 Procurement. Procurement would be in accordance with IDA guidelines for vehicles (US$330,000) 1/ and equipment required for well8 and road programs (US$340,000); and farm implements (US$270,0ü0) and contracte would be advertized internationally. Local manufacturers would have a 15% preference. Construction of the relatively small and scattered houses and stores totalling US$890,000 is unlikely to attract overseas bidders and contracts would be advertized locally but foreign suppliers could also bid. Local contractors would have a 7.5% preference. Vaccine and drugs (US$65,000) for the veterinary program would be obtained directly from the Laboratoire de Recherche Veteriîaire de Dakar whose products have been proven in Upper Volta. The studies for the roads (US$180,000) would be conducted by internationally recruited consultaûxt satisfactory to IDA. Farm inputs US$800,000 would be procured by CFDT using established local procurement procedures. An amount of USS1,850,000 woula be unallocated and the remaining US$5,475,000 would cover capitalized staff and operating expenses during project development. Contracts coszing below US$20,000 would be let on the basis of quotations obtained from local suppliers. 1/ Prior to contingencies. - 20 - 5.12 Diabursements. The IDA Credit would finance 100Z of the foreign exchange cost of vehlcles, equipment, aprayers, veterinary drugs, studies, scholarships, special staff training or 87Z of total expenditures, excluding fertilizers and insecticides. An estimated disbursement schedulo in at Annex 16. Expenditure would be evidenced by contracta and certified records of expenditure. Any savinga on the IDA Credit would be subject to caiiella- tion. D. Accounts and Audit 5.13 Project accounts would be kept by the Bougouriba ORD in accordance with established accounting principles. Financial statements for the project, as well as for the Development Fund and the Association en Participation accounts, would be audited by a firm of independent auditors satisfactory to IDA, and submitted together with the auditors' report to IDA within four months of the closing of the financial year. Assurances to these effects were obtained. VI. ORGANIZATION AND MANAGEMENT A. General 6.01 Under the proposed Credit the Goverament would reorganize its rural development services. The need for such reform is recognized by Government, UNDP and FAC; the latter being the major source of finance for the ORD's. So far, however, neither Government, UNDP nor FAC have made formal proposals for such reform (Annex 4). Reform is needed to enable efficient rural develop- ment within the context of an integrated national policy; to ensure effective cooperation among the technical departments of MPDET and to achieve a better integration of project objectives and national policies. It is proposed that the principal feature of the reorganization would be (see details in Annes 4): the creation under the direct responsibility of the Minister of NPDET of a coordination and evaluation unit to control and coordinate the activities of ORD's and of the Ministry's Technical Departments; its main functions would be (i) to implement the reform of the ORD's; (ii) plan and implement national and regional agricultural development programs and projects; (iii) control and evaluate ongoing projects or programs and to propose improvements; (iv) provide ORD's with technical assistance; (v) assist ORD directors to define criteria for project evaluation. Assurances were obtained that the changes would be implemented within six months after the signing of the Credit Agreement, and that a senior technical assistant, acceptable to IDA, would be recruited to assist the new unit (Annex 14, para 12). - 21 - 6.02 The project would be carried out by the Bougouriba ORD; at the outset it would receive assistance from West Volta Cotton Project management staff. The Project Director would report to the unit in MPDET; in the interim period he would report to the "Secretaire d'Etat" recently appointed as assistant to the Minister of MPDET. B. Project Organization 6.03 Project Management. The Project Manager would be the Director of the Bougouriba ORD, and his principal assistants would be: the Deputy Director and the Accountant, (see Organization Chart). The Accountant would be respon- sible for all administrative and financial services, and the Deputy Director for all technical services including livestock, the training and research cen- ters, and the wells, roads, and topographic units. Assurances were obtained that appointees to the positions of ORD Director, Deputy Director, Accountant, and heads of services, centers and units would be persons with qualifications and experience acceptable to IDA. The appointment of the Deputy Director, and Accountant would be conditions of credit effectiveness; the ORD Director has already been appointed. 6.04 Technical Services. The Deputy Director would personally and directly manage the extension services. In this function he would be assisted by an Assistant Director located at subregional headquarters at Gaoua. The other technical services would be headed by responsible executives reporting to the Deputy Director. 6.05 Road Unit. The Highway Technician provided under the West Volta Cotton Project (Credit 225-UV) would assume responsibility for the road unit and would have commitments to both projects. C. Staffing 6.06 The project would need to be run by an efficient administration team and field staff, and management at the senior level would have to be of the highest calibre. Government acknowledges this and, in view of the country's shortage of experienced personnel, is prepared to recruit and employ expatriate staff so long as there are no properly qualified and capable indi- viduals within Upper Volta to fill the post. 6.07 During negotiations the Government indicated its intention to make a special effort to assign local qualified and experienced staff to the project from other ORD's where the lack of resources does not permit the best use of existing manpower. - 22 - 6.08 The Senior Technical Assistant (para 4.04) for the MPDET would be recruited either by Government or with IDA assistance. The Government will recruit other expatriate staff through technical assistance contracts with consulting firmas, including research institutes, experienced in agricultural development in West Africa. 6.09 Total project staff would number 195 in 1974 and increase to 446 in 1977. Extension staff alone would increase from 108 in 1974 to 253 by 1977. D. Staff Training 6.10 Before assignment to the project, the village extension staff re- quired for project execution would be trained at the National Center of Matourkou where existing facilities are satisfactory (see Annex 12). For the first year of the project, extension staff would be transferred from other ORD's with excess personnel. Because the training at Matourkou is not specifically adapted to the project, the project training center would con- centrate on project oriented specialized courses and refresher courses. The training of higher level staff would be undertaken on an in-service basis and would also include scholarships and attendance at seminars. The project center would also undertake special training courses for farmers especially those selected as potential cooperative leaders. A visiting consultant, acceptable to IDA, would be retained to assist in designing and evaluating teaching pro- grams and results. Assurances to this effect were obtained. 6.11 The number of expatriates employed by the project would be reviewed yearly. Assurances were obtained that the extent of the replacement of expatriates by Voltaic Staff would be agreed annually between Government and IDA. E. Credit and Subsidies 6.12 Under the project farmers will receive credit for fertilizers, insec- ticides and equipment. Fertilizers and insecticides would be subsidized by Governmnent through AP (para 4.09); in 1974 the cost to farmers would be CFAF 33 per kg of cotton fertilizer and CFAF 420 per liter of insecticide, compared wîth farmgate coats of about CFAF 79 per kg and CFAF 740 per liter respectively. Assurances were obtained that the levels of these subsidies would be subject to annual consultation between Governnent and IDA. 6.13 At present, down-payment conditions and terms of equipment credits are too stringent, and are a constraint to farm development; BND requires a deposit of between 35% and 50% and repayment over one or two years. Under the project, credit distribution and recovery would be carefully supervised by extension staff; it would therefore be feasible to facilitate farmers' - 23 - access to equipment by easing the credit terms. Assurances were obtained that farmers with a pair of oxen would be eligible for equipment credit, and that the down-payment would be reduced to 15% of total equipment cost. Equipment would not be subsidized. 6.14 Terms for credit extended under the project would be set by BND and be in line with national agricultural credit policy (Annex 5). Current in- terest rates are satisfactory, being about 10% for seasonal credit, and vary- ing between 8% and 11% for equipment credit. Presently, BND approves equipment credit applications on a case by case basis and equipment credit operations are supervised from Ouagadougou. These arrangements are cumbersome and result in a wide range of delays and problems. Under the project BND would authorize a ceiling for equipment credit, and permit the ORD to handle medium-term credit within this ceiling as is now the case for seasonal credit. Assurances were obtained that: the interest rate on farm credit extended under the project would be in line with BND credit policy, and that changes in inter- est rates would be done after consultation between Government and IDA. F. Association en Participation 6.15 the AP contract would require amendment to permit: (a) the cost of fertilizer and insecticide subsidies to be met by AP (para 5.04); (b) payment of levies to the Development Fund (para 5.07); (c) the association to assume full responsibility for marketing cotton seed (para 7.10); (d) change in AP profit allocation formula to reflect (a) and (b). Government and CFDT have agreed on the changes and assurances were obtained that a revised AP contract incorporating the changes would be concluded. Execution of the revised contract would be a condition of credit effectiveness. 6.16 The present AP contract between Government and CFDT expires at year- end 1975. To ensure proper cotton marketing and management of ginneries it will be necessary either that this contract, once it has been amended (para 6.15) be prolonged or that Government makes alternative arrangements. Assur- ances were obtained that IDA would be consulted before the end of the present AP contract about the AP contract renewal with CFDT or about any new contract that IDA proposes to enter into. - 24 - G. Research and Seed Multiplication 6.17 The project's applied research program would form part of Upper Volta's natiornal program. This program is executed by three French research institutes (IRAT, IRKO and IRCT) under contract to Government and financed jointly by Government and France. The three institutes have their headquarters in Paris where they are members of GERDAT (Groupement d'Etudes et de Recherches pour le Developpement de l'Agronomie Tropicale). The project seed multiplication pro- gram would complement, for the project area, the national program being imple- wnented at Matourkou. 6.18 Both Upper Volta and IRAT are members of WARDA and through this have a close link with rice work executed by IRRI. Two other agencies from which the project could benefit in respect of other crops are the IAR (the Institute for Agricultural Research of Ahmadu Bello University) in northern Nigeria and IITA (the International Institute for Tropical Agriculture) in southern Nigeria. Under the project appropriate liaison and cooperation with these agencies would be strengthtened. VII. YIELDS AND PRODUCTION, MARKETS AND PRICES, FARMERS' BENEFITS AND GOVERNVENT BENEFITS A. Yields and Production 7.01 The various ethnic backgrounds of the farm families, the complexity of cropping patterns, and ecological conditions prevailing in the project area are such that yield variations are inevitable and substanti-l. 7.02 Step 3 cotton growers (para 4.0e) would comprise 7Z of the total project cotton area by 1977 and are expected to obtain yieldA of 1,200 kglha of seed cotton by using insecticides, fertilizers and ox-drawn cultivation methods. It is estimated that yields of the traditional cotton growers who ignore project advice and assistance would not exceed 400 kg/ha. The overall average seed cotton yield would increase from 400 kg/ha to 813 kg/ha by 1977. The estimated yields are conservative compared to the 2,000 kg/ha yields ob- tained in trials conducted by IRCr in Upper Volta. Cotton grovers would in- crease from 10,000 prior to the project to 16,000 by 1977, and the area under cotton cultivation from 5,000 ha to 12,000 ha. Project induced production of seed cotton would be 8,800 tons by 1978. 7.03 Category II improved sorghum growers (para 4.07) would comprise 13% of all cotton grovers by 1977 and are expected to obtain yielda of 1,700 kg/ha using improved dwarf varieties, and fertilizers. Sorghum grown in rotation with cotton would also benefit from the residual effect of fertilizers applied to cotton, and would have an expected yield of 900 kg/ha. The yields of traditional sorghum growers are expected to remain between 400 kg/ha and - 25 - 600 kg/ha. The average improved sorghum yield from project farmers would increase from 930 kg/ha in 1975 to 1,100 kg/ha in 1977. These yields com- pare with trials conducted in Northern Nigeria yielding some 3,200 kg/ha under similar soil and climatic conditions. The number of improved sorghum growers would increase from 10,000 in 1975 to 13,200 in 1977, cultivating 5,500 ha in 1975 increasing to 8,750 ha in 1977. Project-induced production of im- proved sorghum would reach 1,300 tons in 1977. 7.04 Improved maize growers would comprise 25% of all cotton growers by 1977 and are expected to obtain yields of 2,000 kg/ha using 096 (Bulk 3) im- proved varieties, and fertilizers. Traditional maize growers would continue to achieve yields estimated at 700 kg/ha. The estimated yield is not exces- sive when compared with yields of over 5,000 kg/ha obtained from trials con- ducted by the Institute of Agricultural Research (IAR) at Samaru in Northern Nigeria. The planted area is expected to increase from 25,000 ha to 27,500 ha by 1977, at the expense of traditional sorghum. Project-induced production of maize would reach 5,000 tons in 1977. 7.05 Cotton growers using animal drawn implements would improve groundnuts (13% of all cotton growers by 1977) and are expected to almost double their present yields from 450 kg/ha to 800 kg/ha. This is demonstrated by yields of over 1,000 kg/ha obtained in Senegal under similar conditions. Only minor changes in the planted area are anticipated. Project-induced production of groundnuts would be about 500 tons of unshelled groundnuts. 7.06 About 2,500 upland rice growers would be involved in the project. They are expected to obtain yields of 1,200 kg/ha of paddy rice by using im- proved varieties and fertilizers. The feasibility of achieving this is demon- strated by yields of over 2,000 kg/ha obtained by "Operation Terroir" in Koudougou ORD. Project induced production of upland rice would increase by some 200 tons. In addition some 50 ha of swamp rice would be developed by the Rural Development Fund project (317-UV) with expected yields of 2,000 kg/ha. 7.07 The livestock extraction rate would increase to 16% from the present 10.5%, by improving the health of cattle through vaccinations. The average carcass weight would increase from 100 kg per head at present to 115 kg by 1982. Similar results have been obtained under vaccination campaigns conducted by the European Development Fund in West Africa over the last few years. Project induced meat production would be 2,600 tons/year in 1982 compared to 1,100 tons/year at present. B. Markets and Prices 7.08 Agricultural crops in the project area would be marketed through the existing channels: - 26 - (a) food crops (sorghum, maize, rice) would be sold via the rural markets or by direct contract to whole- salers, and by the ORD; (b) cotton would continue to be marketed through AP and groundnuts througk the licensed agents of Caisse de Stabilisation des Prix des Produits (CSPP). 7.09 Marketing arrangements for food crops are generally poor and Office National des Cereales (OFNACER) (Annex 17) has failed to improve the redis- tribution system within the country. The project staff would take a very active part in the marketing of food crops produced within the project area. This is in accordance with Government policy which strongly supports market- ing of food crops by ORD's to enable them to generate income and become self- supporting. In addition, seasonal loans are provided by BND to the ORD's for marketing of cereals. 7.70 The marketing arrangements for cotton export seeds would be changed. At present the full potential of export seeds is not used as CSPP has not been able to obtain satisfactory prices on export markets and has sold to lo- cal processors at heavily subsidized prices (Annex 6). The AP through CFDT would be able to market seeds more efficiently (para 6.15). Assurances were obtained that these changes would be made and that sales to local processors would be made at world market prices less expenses that would have been in- curred had the seeds been exported. ,.11 Producer prices for cereals and meat have recently increased to levels attractive to farmers (see Annex 17) and are expected to remain at an acceptable level because of the strong demand for these commodities in Upper Volta. Producer prices for cotton remained practically unchanged between i964 and 1973, and therefore decreased in constant terms. In October 1973 they were increased from CFAF 33 to CFAF 35 per kg for first quality, and second quality remained unchanged at CFAF 28 per kg. But this increase failed to pro- vide farmers with sufficient incentives to improve production and cereals coE- manded a higher price. It was agreed that Government and IDA would review price; paid to farmers annually. In addition Government intends to increase cotton producer prices in 1974 to CFAF 40 for first quality and CFAF 33 for second quality, in 1975 to CFAF 45 for first quality and CFAF 38 for second quality, in 1976 to CFAF 50 for first quality and CFAF 43 for second quality. C. Farmers' Benefits 7.12 Farmers participating in project activities would obtain substantial direct income benefits through utilizing project services and inputs. In addition improved roads, water supplies, and marketing would indirectly benefit about 40% of all farmers in the project area. - 27 - 7.13 Estimated benefits have been calculated for two model farms (Annex 18, Tables 3 and 4); Model 1 (farm size 5.2 ha and family size 9) represents an established cotton grower in the northern part of the project area belong- ing to the Dagari ethnic group; Model 2 (farm size 5.5 ha and family size 10) represents a new cotton grower in the southern part of the project area belong- ing to the Lobi tribe. Model 1 gross income from agricultural production prior to production costs and family consumption increases by CFAF 85,000 (86%) from CFAF 99,000 before the project to CFAF 184,000. Cotton-accounts for CFAF 34,000 (40%) of the increase, maize for CFAF 43,000 (50%). Model 2 gross income from agriculturaliproduction prior to expenses increases by CFAF 69,000 (57%) from CFAF 121,000 before project to CFAF 190,000. Cotton accounts for CFAF 34,000 (49%) of the increase, maize for CFAF 27,000 (39%). Gross income from livestock would about double from CFAF 5,900 before the project to CFAF 10,500 by Year 9 in the average farm. 7.14 Model 1 net cash income after production costs, family consumption, debt service and taxes would increase from CFAF 57,000 before the project to CFAF 128,000 by Year 9, and net cash income per manday would increase from CFAF 170 to CFAF 259. Model 2 net cash income after all expenses would increase from CFAF 74,000 before project to CFAF 132,000 by Year 9 and net cash income per manday would increase from CFAF 173 to CFAF 223. The increases in net cash income would prove a strong incentive to farmers in the area where unemployment is chronic and wages of employed personnel rarely exceed CFAF 100/day before taxes and subsistence expenses. D. Impact on Government Finances 7.15 The main Government benefit would be provided under the AP contract (Annex 19). After meeting all project development and recurrent expenses annual surpluses would rise from CFAF 9 million in 1978/79 to CFAF 119 million by 1983/84. 7.16 As, to date, Government budgetary allocations to livestock services have been inadequate (Annex 3) Government has been requested to maintain its budgetary contribution to livestock services at an adequate level after proj- ect completion. Assurances to the above were obtained. VIII. BENEFITS AND JUSTIFICATION 8.01 The project's direct economic benefits would be the increase in pro- duction it generates. The economic rate of return has been calculated taking into account all future capital and recurrent costs and all future production induced by the project. Estimates of incremental production are summarized at Annex 20, Tables 1 and 2. Agricultural production is valued at World Bank economic forecast prices for 1980, which in the case of cotton, groundnuts and - 28 - rice are lower than current prices and those expected during the early years of the project. Meat production is valued at current prices which should al- most certainly increase in view of the strong demand for meat throughout West Africa. Farm family labor has been shadow priced at zero, because there is no alternative employment in Upper Volta. Only 75% of the investment in roads have been costed against the project on the assumption that road improvements would benefit non-project activities. On this basis the internal economic rate of return is 68% assuming a 10 year project life. 8.02 The internal economic rates of return of the agricultural and live- stock components considered separately are 74% and 56% respectively. A sen- sitivity analysis has been undertaken to test the project under various assump- tions which might occur (Annex 20, Table 3). As is usual for projects with low capital costs in relation to annual costs, the rate of return for the agricultural development component is very sensitive to changes in total costs and benefits. Either a 1% increase in total costs or a 1% decrease in total benefits results in a reduction in the rate of return for the agricultural development component of 1.8 percentage points. For the livestock component, the same cost or benefit change would result in a reduction of 0.3 percentage points. 8.03 Most of the project-induced cotton production would be exported, and project-induced cereals production would substitute for imports that would otherwise be required. About 30% of meat production would be exported. The annual net foreign exchange gain would be US$5.3 million starting in 1978/79. 8.04 Farmers net income after taxes and purchase of inputs would incre*se on average by CFAF 60,000 over four years (US$3.8 million for the project area). At full development, the project would improve employment opportunities for 16,000 farmers' families. 8.05 The projects indirect benefits would be substantial. It would directly affect some 16,000 families and another 16,000 families would receive benefits from improved water supplies and roads. All farmers would benefit 2 from better ha&LtIL-acLlities and other social services. In total some 360,000 people would be affected one way or another by project activities. With the considerable increase in farmers' cash incomes rural trade and small industries are likely to expand and benefit from the project. 8.06 The project's long run benefits would extend beyond the project area. The project would be the vehicle for a reorganization of rural develop- ment in the country, of the ORD system, and of the MPDET. Arrangements for marketing of cotton seed would also be improved. The project would serve as the focus for similar rural development projects once onchocerciasis has been eradicated. - 29 - IX. AGIEEI1NTS REACHED AND RECOMMENDATIONS 9.01 During credit negotiations, agreement was reached on the following principal points: (a) Government would take measures to create and operate the research and seed multiplication centers (para 4.14); (b) BND would make sufficient credit available to the ORD to finance fertilizers and insecticides (para 4.18); (c) scope of studies and terms of reference of the consultants carrying out the road studies would be acceptable to Govern- ment and IDA and IDA would receive consultants reports (para 4.19); (d) a development fund would be established, and the formula determining payments to each ORD's account in the fund would be agreed annually between Government and IDA (para 5.07); (e) the changes in MPDET would be implemented within six months after signing of the Credit Agreement, and a senior technical assistant, acceptable to IDA, would be recruited (para 6.01); (f) appointees to the positions of ORD Director, Deputy Director, Accountant, heads of services, centers and units would be persons with qualifications and experience acceptable to IDA (para 6.03); (g) a visiting consultant, acceptable to IDA, would be retained to assist in designing and evaluating training programs for the Training Center (para 6.10); (h) replacement of expatriates by qualified Voltaic personnel would be agreed yearly between Government and IDA (para 6.11); (i) input subsidies would be reviewed annually by consulta- tion between Covernment and IDA (para 6.12); (j) farmers with a pair of oxen would be eligible for receiving equipment credit, and the down-payment would not exceed 15% of total equipment cost (para 6.13); (k) the interest rate on credit extended under the project would be in line with national agricultural credit policy, and changes in interest rates would be done after consultation between Government and IDA (para 6.14); - 30 - (1) a revised contract of Association en Participation would be concluded (para 6.15); (m) IDA would be consulted before the end of AP contract and would approve any new contract Government wishes to enter into (para 6.16>; (a) Association en Participation, would market cotton seeds (para 7.10); (o) cotton producer price would be reviewed annually by consultation between Government and IDA (para 7.11); (p) Government would maintain its budgetary contribution to livestock services at an adequate level after project completion (para 7.16). 9.02 Conditions of effectiveness would be that: (a) a development fund has been legally established (para 5.07); (b) Government has made a CFAF 150 million advance to the development fund (para 5.09); (c) the Deputy Director and the Accountant have been appointed (para 6.03); (d) a revised contract of Association en Participation has been signed (para 6.15). 9.03 With the above assurances, the project is suitable for an IDA credit of US$8.0 million to the Republic of Upper Volta. UPPER VOLTA BOUGOURIBA AGRICUOLTURAL DEVELOP?DENT PROJECT GD/ 1. Ouagadougou 1966 226 109 FAC SATEC 24.2 857 2. Koudougou 1967 193 147 FAC SATEC 26.3 757 3. Kaya (North Mossi) 1966 171 149 FAC CFDT 21.6 605 4. Yatenga (Oubigouya) 1966 115 262 FED] BDPA 12.3 536 5. Dedougou (Volta Noire) 1966 125 156 FAC/IDA CFDT 29.6 1486 6. Banfora (South Wbst) 1967 135 173 FED SOTESA 18.4 218 7. Koupela (Center Fast) 1968 80 71 GOVT. CIDR 9.0 273 8. Fada N'Gourma (Est) 1968 79 70 GOVT. GOVT. 50.0 278 9. Bobo-Dioulasso 1970 120 151 FAC/IDA CFDT 28.3 332 10. Diebougou (Bougouriba) 1971 100 57 OOVT. CIDf 17.5 353 11. Dori (Sahel) Being - - (FED) - 36.9 272 established Total 7I 4.967 1/ Budget estimates as appear in the Plan, except for Dfldougou and Bobo where figures represent actual expenditures. 2/ The 11 ORD's cover 100% of Upper Volta Territory and include 90% of the Rural population Source: Plan Quinquennal de Developpement Economique et Social, 1972-76. ANNEX 4 Table 2 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMhNT PROJECT MINISTRY 0F PLANNING, RURAL DEVEL OPIONT ENVIRDNMENT AND TOURISM Minister for Planning, Rural Development, Environnent and Tourisrn State -ecreàary _ Coordinating Unit Technical Departments Support staff and Speciality teams Director for Director Director for Director for Director for Agriculture for Livestock Hydraulies Rural Forestry and Education Rural Equipment ORD ORD Director Director Director And ORD Technical Director Assistants And Technical._T Dechnical Assistants ORD's with major projects requiring additional support and coordination ANNEX 5 Page 1 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Agricultural Credit in Upper Volta A. General Organization of Agricultural Credit 1. Agricultural credit in Upper Volta is financed and regulated by Banque Nationale de Developpement (BND). Basically BND lends to the 11 Organ- ismes Regionaux de Developpement (ORD) which onlend to farmers; however, BND retains a substantial degree of control over ORD onlending. Credit Procedures 2. Credit applicants in each village are selected by a committee com- posed of the elders and the "Chef de Terre" which passes judgement on the applicants' characters and abilities to repay. Final approval is given at the sub-sector level 1/ of the ORD. Individual application forms are completed with the assistance of the ORD extension workers. Before the agricultural season starts, each ORD makes a forecast of the financing likely to be required for seasonal inputs, and BND subsequently grants a maximum ceiling for such seasonal short-term credit for each ORD. Medium-term credit financing is handled on a case by case basis, and applications are reviewed by the ORD Steering Committee. Approved applications, and the recommendations of the Committee, are then sent to BND for approval. Short-term credit records are kept by the ORD, and those for medium-term credit by BND at headquarters in Ouagadougou. Approval and handling of medium-term credit on a case by case basis by BND from Ouagadougou has resulted in many problems including delays in procurement of agricultural equipment, and has resulted in a poor control of medium-term credit repayments. Decentralization of medium-term credit approval and recording is necessary and is under consideration by BND. 3. BND has establihsed criteria to screen credit applicants, these are that the applicant must: (a) have repaid any prior debts; (b) belong to a pre-cooperative association; (c) have demonstrated in the past his willingness to follow prescribed agricultural techniques; and (d) have a proven agricultural income equal to at least three times any medium-term debt service. 1/ The ORD is divided in 5 or 6 sectors, themselves divided in 4 or 5 sub- sectors. ANNEX 5 Page 2 Io belong to a pre-cooperative association the farmer pays a one-time subscrip- tion fee of CFAF 200 if he intends to seek seasonal credit, and of CFAF 800 if he wishes to apply for medium-term credit. These subsceiptions are paid into a guarantee fund held by the ORD and which may be used to repay unpaid debts. The pre-cooperative associations have no legal status, and do not constitute mutual guarantee associations. Credit Conditions 4. 1 The ORD's are financially responsible to BND for all seasonal credit extended to farmers in their areas. As they are administrative units generating very limited profits, if any, from their commercial, mainly marketing activi- ties, they themselves are not creditworthy and Government guarantees the cre- dit they receive from BND. The guarantee is renewed every year, but the ORD must apply for it specifically. The Ministry of Finance and BCEAO 1/ have requested that Government withdraw its guarantee to the ORD. BND, however, has opposed such a move on the grounds that the ORD'8 are not creditworthy (this is correct as the ORD are basically service agencies with very limited incomes) and because restrictive lending to farmers with tangible collateral would cripple the development of agricultural credit in Upper Volta. BND has developed a rationale for its lending to ORD, and under the current system, sub-sectors and sectors with past-due debts exceeding 10 percent and 20 per- cent respectively are not eligible for credit. Terms and Interest Rates 5. BND charges the ORD 5.5 percent interest on equipment loans and seasonal loans for inputs to farmers. Repayment perioda are 12 months maxi- mrum for seasonal credit, and up to two years for equipemnt credit. For equip- ment credits farmers make a down-payment of 50 percent for loans to be repaid within 12 months, for which interest is 11 percent; and a down-payment of 35 percent for those to be repaid within two years, and the interest rate la 8 percent. Farmers pay a fixed commission of 5 percent for seasonal input credit and repay over six months, thus paying the equivalent of a 10 percent interest rate. 6. The interest rates paid by farmers are considered adequate, and although the interest spread taken by the ORD's is rather large, it reflects a relatively high cost of credit administration. BND has said that it does not intend to increase charges on agricultural credit although BCEAO recently increased its discount rate from 3.5 percent to 5.5 percent. BND believes that it can continue financing agricultural credit from its own internally generated funds or from low cost lines of credit available from CCCE. It ap- pears essential, however, that in order to stimulate medium-term agricultural credit use, the down-payment on equipment credit should be reduced if not totally removed, and the term for repayment extended to three years. 1/ Banque Centrale des Pays de l'Afrique de l'Ouest. ANNEX 5 Page 3 Collection 7. A Presidential Decree of 1968 declared non-reimbursement of agricul- tural credit as a national crime of the same order as tax-evasion. This coupled with the stiff criteria set up by BND for lending to ORD's resulted in improved collection performance compared with prior years. 8. Collection of short-term credit repayments is satisfactory because the inputs it finances are used principally for cotton growing, and credit repayments are deducted on the spot when the cotton is purchased by CFDT. Total unpaid short-term credits were 6 percent of total short-term credits of CFAF 168 million (CFAF 10 million) at March 31, 1971 and 9 percent of CFAF 122 million (CFAF 11 million) at March 31, 1972. As the closing date of the fiscal year is June 30, actual collections for the years would have been better. Col- lections of medium-term credit repayments, which have been generally satisfac- tory in the past have worsened since the recent cycle of drought began, thus in Koudougou ORD 96 percent of 1972 farmers' maturities remained unpaid versus 78 percent in 1971. At March 31, 1972, 94 percent of all 1972 BND medium-term agricultural credit maturities were overdue. While these percentages are high the absolute amounts are very small. Although some allowance must be made for the drought the serious deterioration of collections of medium-term credit have been unnecessary and reflect unsatisfactory procedures. It appears that a decentralization of mediun-term credit administration would help to improve the situation. Statistics on credit collections are at Table 2. Volume of Agricultural Credit 9. Agricultural lending was 45 percent of BND total lending volume in 1972, but only 1 percent of the agricultural credit remained outstanding at the end of BND's fiscal year (Table 3). This is because most of the credit was seasonal and had been repaid. Of the total of CFAF 954 million in agri- cultural loans (Table 4) made in 1971, CFAF 782 or 82 percent were for cotton marketing and CFAF 152 (16 percent) for the purchase of inputs. Only CFAF 18 million requested medium-term credit and of the CFAF 11 million (about $50,000) was for agricultural equipment - plows and hoes etc. These statistics indicate that a substantial effort is required to promote investment in agricultural equipment through medium-term credit. B. Banque Nationale de Developpement (BND) - General Objectives 10. BND objectives which are defined by Public Law No. 6/61/ANL of January 23, 1961, are to provide technical and financial assistance to carry out all projects capable of furthering the economic and social development of Upper Volta. Assistance is provided through participation in enterprises and through supplying credits to: ANNEX 5 Page 4 craftsmen, industry and commerce, and consumers for the purchase of semi-durable goods (appliances, furniture and vehicles); housing; public entities for investments; and agriculture. Administration and Management 11. An administrative council composed of 12 members, 8 from Government Departments and 4 from the Caisse Centrale de Cooperation Economique (CCCE), and Fonds d'Aide et Cooperation (FAC) - the French technical assistance agen- cies - and BCEAO manages BND. It is responsible for defining and implementing policies and credit programs. The Board may delegate some of its powers to sub-committees on which the shareholders are represented in the same propor- tion as on the Board. The General Manager is nominated by a three-fourths majority of the Board, and is appointed by the Government. Organization 12. BND is responsible to the Minister of Commerce, Industry and Mines. It is organized in three administrative divisions (Personnel and Material; Accountancy and Mechanical bookkeeping; Studies, Statistics and Audit) and four operational divisions (Non-Agricultural Credit; Agricultural Credit; Debt Collection; Financial Operations). BND is also responsible for supervising the accounts of the Regional Development Offices (ORD's), which it checks at regular intervals, and is responsible for assisting the ORDts to set up stand- ard accounting systems. BND is responsible for managing the Rural Development Fund project and has created a special Division for that purpose. External Control 13. External control is exercised by the Financial Controller of the Ministry of Finance and the Financial Inspector of CCCE. These two auditors are appointed by the meeting of shareholders. As agreed with the West African Monetary Union, BCEAO receives monthly statements of BND's financial and liquidity position in addition to annual reports and accounts. Present audit- ing arrangements are adequate. Staff 14. Total BND staff numbers 60, including five expatriates. BND person- nel are well trained and qualified for their tasks. Lendine Operations 15. BND's operations have quadrupled since 1967 as follows: ANNEX 5 Page 5 No. of Loans Amount (CFAF millions) 1967 3,617 544.2 1968 4,272 756.0 1969 5,588 1,475.2 1970 6,778 2,438.3 1971 71,749 2,105.0 The following breakdown of 1971 activities indicates that agriculture was the largest area of lending for BND: No. of Loans Million CFAF Percent Agriculture 38 954 45.3 Artisans 99 39 1.9 Trade 39 131 6.2 Real Estate 1,053 412 19.6 Small Equipment 6,515 244 11.6 Industry 2 93 4.4 Public Services 3 232 11.0 Total 7,749 2,105 100% Financial Results 16. BND income statements at Table 5 show a deterioration in BND's profitability. Thus although 1972 total gross income was 42 percent higher than in 1969, administrative and financial charges increased 67 percent during the same period, and 1972 total net income was 40 percent below 1969. The CCCE auditor has expressed concern at the rapid increase in administrative expenses and it is essential that BND take steps to control this. BND balance sheets (Table 7) indicate that BND is increasingly dependent upon long-term borrowing for financing its activities. Long-term and medium-term debts totalled 1.6 times equity in 1972 versus 0.9 in 1969. This debt equity ratio is still satisfactory considering the Bank's activities but should not be allowed to increase substantially. Because BND profit margins will suffer from the increased debt burden, management should pay particular attention to reducing costs. Financial Projections 17. Financial projections of BND operations have been made assuming an increase of 10 percent per year in administrative expenses, that the present debt/equity ratio remain unchanged and that the yields on loans made by BND remain constant. On that basis equity should increase by CFAF 1.5 billion by 1977 and long-term debt by CFAF 2.1 billion. ANNEX 5 Appendix 1 Page 1 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Banque Nationale de Developpement Financial Projections Assumptions 1. Outstanding Credits at September 30 It is assumed that: (a) outstanding loans made by BND will increase at an average of 25 percent per year until 1977. This increase is in line with the portfolio growth over the past eleven years; (b) BND will increase its effort in agriculture and pub- lic services which will grow to 14 percent and 15 percent of total loans, and reduce its involvement in real estate and industry, which will be reduced to 30 percent and 16 percent respectively of total loans; (c) the proportions of long-term and medium-term loans would remain unchanged. Short-term loans would double to 8 percent of the total. Current accounts which include seasonal credit for financing of crop marketing will increase within each year but be re- paid by September 30 to a level remaining constant at about CFAF 400 million. These projections are lower than those developed by BND but probably are more realistic. 2. Income Statements It is assumed that: (a) the Percentages of Interest and Commissions would remain at the present levels of: ANNEX 5 Appendix 1 Page 2 4.9 percent on long-term loans 6.9 percent on medium-term loans 11.9 percent on short-term loans 12.5 percent on current accounts and that in addition any increase in the interest rate paid on borrowings would be passed on to customers; (b) Administrative Expenses would increase 10 percent per year; (c) Financial Charges would remain at the saine percentage (2.7 percent) of long-term, medium-term and short-term borrowings; (d) Provisions would remain at 1.7 percent of outstanding long-term, medium-term and short-term credits; (e) Depreciation would increase at 10 percent per year. 3. Cash Flow Statements Inflows. It is assumed that the present financial structure would remain basically unchanged, i.e. that the respective ratios of long-term bor- rowings to long-term credit outstanding, medium-term borrowings to medium-term credit outstanding and short-term borrowings to short-term credit outstanding would remain constant. The shortfall in finances would be provided by an in- crease in equity either through increased subscription of share capital or grants. Outflows. It is assumed that the only applications of funds would be increases in credit outstanding at Table 5. UPPER VOLTA .UG J.lAXII,^A :ARICUL-JiUiL DEV CR*2iT Pl JEC'2 Interest Rates and Repaynent Terms (CFAF) -------------Total Cost--------- --One Year Credit- --Two Year Credit- One Year Two Year Down- Over Down- Over Cash Purchase Credit Credit Payent Time Pay$ent Time I. fDITERiE CREDIT A. To Farmers Rloughs 11,000 11,550 12,100 6,000 5,55° ,loo 8,ooo Down-payment as % of cost 55% 37% Interest 11% 8% Carts 24,000 25,000 25,600 13,000 12,000 8,0o0 17,600 Down-payment as % of cost 54% 33% Interest 9% 8% Sprayers 7,500 7,900 4,000 3,900 Down-payment as % of Cost 53% Interest 11% B. To ORD's Interest 5.5% 5.5% Repayment One Year Two years IL. SHORT-TERM CREDIT A. To Farmers - …-- - - …-CFAF/kg _ - Fertilizers 35 37 37 Interest 10% (Expressed as a conmmission of 5% - repaid over 6 months) H B. To ORD's Interest 5.5% Repayment One year Table,z2 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPR1EXT PROJECT Banque Nationale de Developpement Repayment of Short and Medium-Term Agricultural Credit by ORD's (CFAF mlllion> SHCRT-TERM MEDIUM-TERM 1971 1972 1972 Repay- Repaid Repay- Repaid Repay- Repaid ment in % ment in % ment in % due 3/31/71 due 3/31/72 due 3/31/72 ORD Y Ouagadougou 4.7 89 2.4 86 1.5 40 Koudougou 18.0 93 14.4 84 2.6 4 Dedougou (Volta Nioire) 63.2 99 33.4 93 3.9 48 Kaya (Plateaux Mossis) 3.1 88 2.0 71 2.7 54 Ouahigouya 2/ 6.o 87 1.2 76 0.4 77 Banfora (sud-oue~3t) 6.5 103 10.3 59 0.3 5° Diebougou - Gaouai 4.9 98 4.2 96 0.8 67 Bobo-Dioulasso 61.7 95 51.0 99 _4.0 _ Total ORD's 168.1 94 118.9 91 16.2 52 1/ Loans are made to farmers only in ORD's assisted by special development agencies (e.g. FAC, FED, CFTD, CIDR, SATEC, etc.); therefore the ORD's Koupela and Fada N 'Gourma which depend on Governuent resources are excluded from this table. 2/ In the ORD Ouahigouya farm equipment is provided only on short-term credit. SOURCEt BND UPFER VOLTA BOUGOURIBA AGRICULTURAL DEVELORFN iT ROi JU' Banque Nationale de Developpement 0--tstanding CrediVs (CFAF million) o @ September 30 1970 1971 1972 Total 1973 1974 1975 1976 1977 Total Credits by TYPe Agriuitsure 67 36 30 1% 100 300 450 800 1,100 14% Crafts 14 57 58 2% 100 150 200 300 450 6% Trade 35 66 64 2% 100 150 200 300 450 6% Real Estate 909 1,084 1,6o8 47% 1,800 1,900 2,000 2,200 2,400 30% Public Services 51 78 309 9% 400 500 700 900 1,200 15% Small Equipment ni 117 108 3% 150 200 250 300 350 4% Industry 374 563 735 21% 800 900 1,000 1,100 1,250 16% Current Accounts 374 210 378 11% 400 400 430 400 400 5% Bad Debts 74 97 132 4% 150 200 200 300 300 4% Total 2,009 2,308 3,422 100% 4,000 4,700 5,400 6,600 7,900 100% Credits by Terzl Los-Tem1 967 1,233 1,771 52% 2,100 2,500 2,900 3,600 4,300 54% Medium-Term 443 625 998 29% 1,100 1,300 1,500 1,800 2,300 29% Short-Temn 152 143 143 4% 250 300 400 500 600 8% Current Accounts 371 210 378 11% 400 400 400 400 400 5% Bad Debts 74 97 132 4% 150 200 200 300 300 4% Total 2,007 2,308 3,1422 100% 4,000 4,700 5,400 6,600 7,900 100% z v UP:R VOLTA B(OUGOURIBA AGJICILTU±IAL DEVELOPIENT PROJECT 1971 Agricultural Credit ( CFAF t 00) LONGT AND MEDIUM TERM ---SHORT TERM---- -CUFENT ACCOUNT-- ----TOTAL--- f Amount f Amount % Amount % Amount Seasonal Inputs - - - 7 151,638 98045 - - - 7 151,638 15.89 Cotton Marketing - - 6 781,700 100 6 781,700 81.94 New Plantings 4 1,188 6.48 - _ _- - - _ 4 1,188 0.13 Light Equipment 7 4,677 25.53 - 2,385 1.55 - - - 7 7,062 0.74 Heavy Equipnent 4 5,647 30.82 - - - - - - 4 5,647 0.59 Livestock 10 4,910 26.79 - - - - - - 10 4,910 0.51 Buildings - 1,900 10.38 - - - - - - - 1,900 0.20 Total 25 18,322 100 7 154,023 100 6 781,700 100 38 954,045 100 oe>n UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Banque Nationale de Developpement IncJme Statements _----________--Actuals --------------- ----------------Projections---------------- @ September 30 1970 171 1972 1973 1974 1975 1976 1977 (CFAF'000) (CFAF million Income Interest and commissions - long-term credit 44,873 64,650 83,994 103 123 142 176 211 - medium-term credit 34,337 45,o65 63,231 76 90 104 124 159 - short-term credit 17,463 17,402 17,174 30 36 48 60 71 Total Interests and Commissions 96,673 127,117 164,399 209 249 294 360 441 Interest on current accounts 42,187 33,471 40,849 48 48 48 48 48 Rentals 13,799 13,985 13,934 15 15 16 17 18 Miscellaneous income 6,873 4,o64 7,038 6 7 7 7 8 Total Gross Income 159,532 178,637 226,220 278 319 365 432 515 Expenses Staff salaries 32,924 41,598 52,479 58 64 70 77 85 Maintenance and repairs 9,813 16,678 19,699 17 19 20 23 25 Transport 3,220 2,623 2,525 3 3 4 4 4 Office runnirg expenses 6,187 10,732 12,625 il 12 13 14 16 Total Administrative Expenses 52,144 71,631 87,328 89 98 107 118 130 Financial charges Interest on depositors accounts 5,998 9,160 Interest on CCCE loans 25,516 35,689 Commissions on rediscounted paper 12,508 5,308 Other charges 1,335 640 Total Financial Charges 45,357 50,797 76,221 104 122 140 170 205 Total Expenses 97,501 122,428 163,549 193 220 247 288 335 Profit Before Provisions 62,031 56,209 62,671 85 99 118 144 180 Provisions for - bad debts 20,119 64,152 36,496 - debts under litigation 14,322 13,702 ?,795 - general risk 52,139 31,525 31,473 Less write-off of prior debts provisions (51,494) (94,760) (34,307) Total Provisions 35,086 14,619 41,457 66 78 90 109 131 Profit Before Depreciation 26,945 41,590 21, 214 19 2- 28 35 19 Depreciation 12,518 13,423 12,366 14 15 17 19 20 Total Net Income 14h ,27 28,167 8,848 5 6 il 16 29 Jan.e 26, 1973 UPPER VOLTA BOUGOUIABA AGaICUiLT'N,AL LEVELORi'DNT FROJECT Banque Nationale de Developpement Cash Flow Statements (CFAF millions) 1973 1974 1975 1976 1977 Total Inflows Total net income 5 6 U 16 29 67 Depreciation 14 15 17 19 20 85 Provisions 66 78 90 109 131 474 Total Self-Generated Cash 85 99 118 144 180 626 Increase in equity 290 150 180 460 420 1,500 Net increase in long-term liabilities 100 300 300 500 400 1,600 Net increase in medium-term liabilities 100 100 - 100 200 500 Net increase in short-term liabilities 100 - 100 - 100 300 Total Inflows 675 649 698 1,204 1,300 4,526 Outflows Increase in assets - - - 19 20 39 Increase in long-terrm credit outstanding 300 400 400 700 700 2,500 Increase in medium-term credit outstanding 100 200 200 300 500 1,300 Increase in short-term credit outstanding 150 50 100 100 100 500 Increase in bad debts 100 - - 100 - 200 Total Outflows 650 650 700 1,219 1,320 4,539 Cash at beginning of year 114 139 138 136 121 Cash for the year 25 (1) (2) (15) (20) Cash at end of year 139 138 136 121 101 (13) Table 7 UPPU V0LBL B&su NItional. d. D vlomsint bllolnce 1hoeto ----------- o) ----- ---- ------_----------------(c illi )--------------- î 2.pt_ber 30 1970 1971 1972 1973 1974 1975 1976 1977 ros. v-lue 157,847 170,641 181,705 162 182 182 201 221 (Lons doprssi.tion) (88,147) (100,262) (109,567) (124) (139) (156) (175) £L95) 4dt v,lo 69,400 70,379 72,138 58 43 26 26 26 Land 1,012 1,012 1,012 1 1 1 1 1 Tbtal VIx.d .aets 70,412 71,391 73,150 59 44 27 27 27 Inoes10.nts 69,304 74,069 75,118 75 75 75 75 75 0rsdit oustanding long-t«.r 897,326 1,233,275 1,771,066 2,071 2,471 2,871 3,571 4,271 - sdiooteu 443,262 625,117 997,620 1,096 1,298 1,498 1,798 2,298 * short-t1s, 151,585 143,039 143,178 2Y3 343 443 543 643 - curr.nt co.un=ts 370,793 209,559 37B,361 379 379 379 379 379 - bad dobt 73,900 97,318 131,490 231 231 231 331 331 Tbtal Cradit Outet-ding 1,936,8O6 2,308,308 3,1421,715 4,072 4,722 5,422 6,622 7,922 Yredit tn.Lit orodit to Volt-, 482,018 519,736 522,229 522 522 522 522 522 Ot,nr 176,142 40,459 60,78e 61 61 61 61 61 Benk and cash 79,446 238,835 113,597 139 138 136 121 101 Total aseto 2,814,138 3,252,797 4,266,597 4,928 5,562 6,243 7,428 8,708 Llobilitiés -:ity. ,îWs 0r59111 355,000 355,000 355,'6 * rservo. - 14,000 4,5,363 _ e.raod .-rplu. 14,915 29,08 9,930 - grantm 198,338 264,980 267,952 gu.rante. funds 66,936 17,130 15,042 Tht.1 kuity 635,189 680,192 693,287 988 1,144 1,335 1,811 2,260 Provisions for b.d dobts 0d debt, in litigatio- 117,331 77,854 105,192 fcr !osso& on invettnr,t 2,390 2,390 2,390 ror big repaire 12,183 13,842 14,296 for gmeral risk 128,956 142,823 174,296 Total Provisions 260,860 236,909 296,174 362 440 530 639 770 long-TCr. Liabilitiae _ to CCC0 656,804 755,816 955,k7O _ to Govrs,soot - 21,000 241,160 - to African De.volopesent Bsnk - - 90, 284 Total long-Term îiabilities 656,804 776,816 1,286,714 1,387 1,687 1,987 2,487 2,887 lbdiuro-T.r Liabiliti.s - to CCCS 114,814 217,495 273,171 - to ecAO 68,273 61,459 8,479 Total Itdiao-Term LIabulltios 183,087 278,954 281,650 382 482 482 582 782 Short-Ters Li.biliti.s - gueronte. dop3sits 18,499 23,433 20,761 _ ouato,srs currant -o0'unts 335,753 373,943 478,203 - Cwtoonse block.d sc,st. 25,000 87,781 242,253 - other 42,980 56,862 115,708 Ibttl Short-Term L,.bilitie. 422,232 542,019 856,925 957 957 1,057 1,057 1,157 Regoularization Accounts * OomiB51ons inolui i in Or-dit onnou=ts 173,998 218,171 329,618 330 330 330 330 330 £roedit Mactait 482,018 519,736 522,229 522 522 522 522 522 Tota1 tiabiliti-s 2,814,188 3,252,797 4,266,597 4,928 5,562 6,243 7,428 8,708 ANNEX 6 Page 1 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPHENT PROJECT Association en Participation (A.P.) A. The Contract 1. The contract of Association en Participation between Government and Compagnie Francaise des Textiles (CFDT) will expire on November 18, 1975 after a life of five years. The main features of the contract are: (a) CFDT develops under Government control and in coordination with the administrative authorities, the departmental services, cotton growing in Upper Volta (Article 1), by: - maintaining an adequate extension service, introducing modern agricultural methods, and multiplying and distributing seeds, and - purchasing and processing seed cotton, and selling cotton lint and by-products; (b) CFDT and Government put their commercial and industrial assets concerned with cotton production (Articles 4 and 5) at the disposal of the Association. Any new asset for cotton production acquired by either of the partners during the contract period is placed at the disposal of the Association. At the end of the contract each party will recover its assets; (c) a "Comite paritaire de Controle et de Coordination," composed of three members of Government and three representatives of CFDT is responsible for the control "a posteriori" of the operations of the Association and for coordination with Government. The Comite meets every six months, and its decisions are later approved by Government at Ministerial Cabinet meetings; (d) lint produced is allowed first priority for process- ing by local textile concerns, and second for export. The selling price to the local industry is equivalent to the world price, less any export expenses that otherwise would have been incurred. CFDT markets lint on behalf of the Association (Article 12); ANNEX 6 Page 2 (e) marketing of cotton seed is the financial responsibilïty of the Caisse de Stabilisation des Prix des Produits Agricoles (CSPP). The price for seed sold to the local oil processing industry is nat defined in the contract; (f) CFDT is paid a management fee of 2% of the cif export value of lint; 5% of the value of by-products and CFAF 1,700/ton of seeds (Article 14); (g) the Association's profits after a contribution to the expenses of extension and promotion of cotton growing are distributed as follows (Article 15): 70% Stabilisation Fund 20% CFDT 10% ORD's In case the Association incurs losses these are to be covered by the CSPP (Article 16). CFDT must reinvest in the country its 20% share of the Association's profits, and its share of profits from seed marketing (Article 18). B. Modification of the Contract 2. The proposed changes in the Association en Participation contract would be the following: (a) the Association en Participation would be made responsible for seed marketing; (b) prior to profit distribution, the Association en Participation profits would be debited of contributions to the Fonds de Productivite which would be calculated to cover at least the cost of fertilizers and insecticide subsidies for cotton producing ORD's, and of levies paid to the Development Fund; (c) remaining profits from lint sales would be distributed 80% to CSPP and 20% to CFDT. C. Financial Results 3. Income Statements. The Association's accounts reflect the favor- able world prices for both lint and seeds. Prices for lint increased 12% in 1972 over 1971 and remained at about that level in 1973. Exports accounted for 91% of lint sales in 1971 and 87% in 1972 and are expected to be 93% in 1973. The ratio of lint to seed did not improve in 1972 compared to 1971 and at 37% stood below the ratio in neighboring countries (Mali 38%). ANNEX 6 Page 3 4. Profit Distribution. CSPP has been receiving 90% of profits on seeds operations and 70% of profits on lint after allocation to fertilizer subsidies as follows: 1971 1972 Budget 1973 - - --CFAF thousands----- From Seeds 40,929 32,937 82,188 From Lint 64,434 170,324 130,536 105,363 203,261 212,724 1973 receipts should be even higher than budgeted because lint prices remained favorable. The other recipients shared about 26% of total lint and seed profits as follows: 1971 1972 1973 --- -CFAF thousands-- ORD's 9,205 24,332 18,648 CFDT 18409 48,664 37,296 Total 27,614 72,996 55,944 6. Balance Sheets. The balance sheets reflect the fact that all investments have been put up by CFDT and that current assets are financed by CFDT and the banks. The Association has no cash or bank account of its own. It uses CFDTts credit line facilities. The arrangement has provided Government with credit facilities that it would not have obtained othervise. D. Financial Projections 7. Seed cotton production is planned as follows: West Volta Cotton Black Volta Other Cotton Project Project Growing Areas Total ~~~~-… ~- ~----- -tn----- - ---- -_ 1973 20,500 1,500 4,700 26,700 1974 28,000 2,700 6,000 36,700 1975 34,000 3,800 6,500 44,300 1976 40,000 6,300 7,000 53,300 1977 on 40,000 9,800 8,000 57,800 The West Volta Cotton Project production estimate is based on last supervision forecast (dated June 14, 1973). The Bougouriba Project production forecast is at Annex 10. It is assumed that production from the ANNEX 6 Page 4 other cotton producing areas will increase 10% per year, if cotton specialists are posted to those ORD's, and producer prices increased. Lint recovery ratio is estimated at 37%. Seed for planting distributed is limited at 35 kg/ha, and wastes assumed at 10% of production. Prices for exports are as per Annex 18. Local prices are assumed to be export prices less non-incurred expenses. Seed purchasing cost will reflect quality improvement and a higher price for first quality cotton, as follows: 1973/1974 1974/1975 1975/1976 1976/1977 1977/1978 - - - - - --- -- ----(CFAF/kg) ------ - ----- First Quality 35 70% 40 70% 45 80% 50 80% 53 80% Second Quality 28 30% 33 30% 38 20% 43 20% 46 20% All other direct costs are based on 1973 per ton costs, adjusted to reflect a 6X yearly inflation. Indirect costs, depreciation and interest on long-term loans, are assumed to increase 5% per year. Farmer subsidies are calculated to maintain fertilizer costs at CFAF 35/kg. E. Development Fund 7. A Development Fund would be created as a condition of the proposed Credit, which would receive a fee presently estimated at CFAF 4,500 per ton of seed cotton, and be kept by Banque Nationale de Developpement (BND). Payments to the Fund would be made by the Association at the time of sale of cotton produce. Payments from the Fund would be allocated to cotton produc- ing ORD's on the basis of a formula to be established annually. During the project development period this formula would be agreed annually between Government and IDA. Subsequent to the project development period it is probable that payments from the Fund could be pro rated on the basis of the cotton production of the various ORD. Calculations show, see Table 3, that during the project development period receipts from the Fund would be adequate to cover Government's contribution to project costs for both the West Volta Cotton Project and the proposed Rural Development Project. After the project development period, and taking into account the fewer extension workers who would be required receipts from the Fund should be adequate to pay all ORD expenses that are incurred through maintaining the projects financed by IDA. Any new ORD activities, however, would have to be supported from the budget or external sources. lETTRB BOUGOtR1IA AGRIcULTURJA D,VELOt2ENT ROJ3CT Association e- Partioi3toion Liot Inoo=o Statonent Q Septerber 30 1973/1974 14/1975 1975/1976 197611977 1977/1978 Revenues Liat: Erport Sies (tous) 9,100 12,500 15,100 18,200 19,700 Local Sales (tons) 80o 1,100 1,30D 1,50Q 1,700 tint: EKport Pries (oif Europe/toc) 310 300 300 300 320 Loua- trio 330a 320 322 321 340 lint: Epot «eeue- s (CFAF'O00) 2,821,000 3,750,000 4,530,O00 5,460,ooo 6,304,000 L2oo-i Evosues- 264,oo0 352,000 416,00 480, ooe 578,000 Total Rreveu- s 3,085,00o 4,102,000 4,946,ooo 5,94J,000 6,882,ooo Bonenses Cotton Ssed Purchoss (tonS) 26,700 36,700 44,300 53,300 57,800 Firot Quality I8,700 25,700 35,400 42,600 46,200 Se-ond Qtuslity 8,o00 11,000 8,900 10,700 l1,60o Prise- (CFAF/tus) - Olest Qolity 35,000 4o,ooo 45,o0o 50,000 53,000 - Sseoni Ooslity 28,020 33,000 38,000 43,OO0 46,coo Dirset RaDeuses (CFAF'ooo) Cottos Seed Purehssss 878,500 1,391,000 1,931,200 2,590,100 2,982,200 Collotioo 32,000 46,600 59,6uo 76,200 87,600 Storing Peins to Faotory 11,300 16,4oo 21,000 26,900 30,800 Transport to Faot-ry 101,500 i47,800 189,100 241,200 277,300 Storing i Factory 500 1,400 1,700 2,200 2,600 Pro-ossisg sud Pa-king 51,500 75,100 96,1i0 122,500 i4o,8oo X-futory t0 oCt torops 276,300 402,300 515,100 658,000 755,100 Total Di-ret Expso.e. 1,352,000 2,o80,600 2,8i4,ooo 3,717,100 4,276,400 Indirect Rxpenses Gener-l Ad9lnls9ration 92,500 96,400 102,100 108,300 114,800 aectory Ad3isttraton 32,600 34,600 36,600 38,80e 41,200 Rsport Lipose 2,100 2,200 2,4oo 2,500 2,700 Procssitg sud Packiog 47,100 49,990 52,9o0 56,10e 59,500 Lint Storeig 11,000 11,700 12,400 13,10C 13,900 Classifying 8,100 8,oO0 9,100 9,600 10,200 Seed M5ltiplioetioa 2,500 2,700 2,800 3,009 3,200 Sesd Drs.siag 14,100 14,900 15,800 16,800 17,800 Total Indirect xp.enses 208,40o 221,000 234,100 248,200 263,300 Derelopnent Fund 120,200 165,200 199,400 239,920 260,100 Profita Befors Depreoistion 1,404,400 1,635,200 1,698,500 1,734,8o0 2,082,200 Dlepreciation 58,300 61,8oo 65,509 69,4o0 73,600 Intereæt - Ocasonal Csedit 53,500 '6,300 92,100 îiO,800 120,200 - Long Ter- Credit 28,000 29,700 31,500 33,300 35,300 Total Net Profits 1,262,600 1,467,400 1,509,4o0 1,521,300 1,853,100 Profits Allonati-,, 20% tn Spenial Prodsstioiîy Pond 252.500 290,500 301,900 304.300 370.600 To be Alloate.d 1.010,100 1,173,900 1,207,500 1,217,090 1,482.500 70% to Stabilioation Fund 707,100 821,700 845,300 851,900 1,037,800 10% to D1R 101,00U ily,(40o 120,890 121,700 i48,300 20% te CFDT 202,090 234,800 241,400 243,400 296,400 May 1, 1974 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Association en Participation Seed Income Statement @ September 30 1973/1974 1974/1975 1975/1976 1976/1977 1977/1978 Revenues Seed: Export Sales (tons) 1,500 2,100 2,500 3,000 3,300 Local Sales (tons) 8,900 12,200 14,800 17,800 19,300 Seed: Export Price (fob Abidjan/ton) 25.8 30.0 33.9 37.9 42.5 Local Price 16.1 19.7 23.0 26.3 30.3 Seed: Export Revenues 38,700 63,000 84,800 113,700 140,300 Local Revenues 143,300 240,300 340,400 468,100 584,800 Total Revenues 182,000 303,300 425,200 581,800 725,100 Seed Expenses Handling and packing 3,100 4,500 5,800 7,400 8,600 Packing materials 4,300 6,400 8,000 10,200 11,900 Ex-factory to fob Abidjan 10,300 15,200 19,200 24,400 28,500 CFDT Sales Commission 17,700 24,300 29,400 35,400 38,400 Total Expenses 35,400 50,400 62,400 77,400 87,400 Total Seed Profits 146,600 252,900 362,800 504,400 637,700 Profits Allocation Stabilization Fund (90%) 131,900 227,600 326,500 454,ooo 573,900 CFDT (10%) 14,700 25,300 36,300 50,400 63,800 May 1, 1974 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Association En Particiîation Development Fund (CFAF'000) 1974/1975 1975/1976 1976/1977 1977/1978 1978/1979 1979/1980 1980/1981 I INFLOWS Cotton Seed Production 2(ons) 30,700 37,800 46,300 49,800 49,800 49,800 49,800 Levy at CFAF 4,500/ton - Total Levy 138,200 170,100 208,400 273,900 273,900 273,900 273,900 Advance from Treasury 150 ____- - - - - Total Inflows 288,200 170,100 208,400 273,900 273,900 273,900 273,900 Il OUTFLOWS Government Contribution to IDA Projects West Volta Cotton Project 93,200 50,600 50,900 - - - Bougouriba Project 38,200 75,600 84,600 101,600 Total Contribution 131,400 126,200 135,500 101,600 Covernment Services Post IDA ProLects West Volta - - - 229,000 175,600 109,500 109,500 Bougouriba - - - - 164,100 123,300 72,100 Total Govt. Services - - - 229,000 339,700 232,800 181,600 Repayment of Advance to Treasury 150,000 Total Outflows 131,400 276,200 135,500 330,600 339,700 232,800 181,600 Net Cash for the Year 156,800 (106,100) 72,900 (56,700) (65,800) 41,100 92,300 Net Cumulative Cash 156,800 50,700 123,600 66,900 1,100 42,200 134,500 1/ From West Volta and Bougouriba ORD's. 2/ Increases to CFAF 5,500 in 1977/1978. w> May 10, 1974 UP28i W LTIl ATable 1i boTJGOURIB.', AUtiUCU-NlUAL DEVRTCIUJ91`T fRItCjTC Association en Pnrticipaticn Balance Sheets 5 3eçtember 30, 1972 (CFAF'000) Assets Liabilities fA. Fiyed Assets lpper Volta Government Railway Station Buildings Gros.s Value 24,225 (Lepreciation) (4,135) FAuity Net 20,090 Upper Volte r3overnrent 20,090 ZFDT Fectories 709,7714 Vehicles 238,875 948,649 (Depreciation) (436,259) Net 512,390 CFDT 237,537) Total Ecuity 257,627) )512,390 Long-Ter-i Loans CFDT 255,056) Short-Term Loana CFDT 19,797) Total (A) 532,h4b Total. (A) 532,4a0 stocks 729,15d Current Accounts Upper Volta Governaient 4,77b Total 194,037 C. Current Assets 305,737 Current Liabilities 93,533 -easonal Credit 461i066 Profits 256,259 Total (B) and (C) 1,034,895 Total (B) and (c) 1,03L,895 Grand Total (A), (B) 1,567,375 Grand Total (;.), (B) 1,567,375 and (C) . and (c) Auvust 6, 1973 ANNEX 7 Page 1 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT WEST VOLTA COTTON PROJECT (Credit 225-W) General 1. The Bougouriba project is the continuation of a cotton production development program in West Upper Volta started in 1963 by CFDT with FAC financing. It consiste of expanding the area under cotton on some 46,000 farms, improving yields through credit and extension services, and providing processing facilities and better road communications. The project also includes provision of funds for preparing an agricultural development project in an area adjacent to the project area (this project is the subject of this report) and for detailed engineering studies for two secondary roade in the project area. 2. The Credit was signed on December 30, 1970. The closing date originally set at June 30, 1976 will be postponed to June 30, 1977. Physical Execution of the Project Production 1. When compared with other cotton producing areas of Upper Volta project results have been satisfactory. Cotton production in the project area dropped only 12% in 1970/71 from the excellent results of the preceding season, 1969/70, when yields were higher due to exceptionally favourable weather. This compared to a national average reduction of 36%, in 1971/72 production in the project area increased by 34% and by a further 14% in 1973. In 1973 the project accounted for 73% of all cotton produced in Upper Volta compared with 51% in 1970. Yields in the project area are at least 50% above the national average and have increased by an average of 24% annually since the project began (from 450 kg/ha in 1971); and the use of inputs has steadily increased. Fertilizers are now used over 33% of the total project area compared with 24% in 1971. Staffing 2. The project has had recruiting problems and has been under-staffed with relatively inexperienced personnel. An expatriate Deputy General Manager assigned to support the Voltaic General Manager was dismissed in 1972 for poor performance and has not yet been replaced. Recruitment of a highly qualified executive for this post is essential. The Director and Deputy Director of Dedougou ORD were both replaced in September 1972 ANNEX 7 Page 2 following a protracted period of disagreement between them and the Commandant de Cercle (Government's administrative authority for the area). The new expatriate ORD Director is relatively inexperienced and for some time will need strong technical support. Acccountants at both ORD's have also changed since the project started. 3. Due to a shortage of extension workers the project has not reached as many cotton farmers in the area as planned. There are 81 extension workers in Bobo-Dioulasso ORD and 76 in Dedougou ORD, compared to appraisal targets of 124 and 92 respectively. 4. Capacity of the training centre at Matourkou was 45 extension workers per year for the whole country. This was insufficient to meet requirements; Government has already corrected the situation; in 1975 the output will be 150, and the project has also started to assume some responsibility for training its own extension workers. Buildings 5. The building program planned to have been completed in 1971, will not be completed until 1974. Buildings for Bobo-Dioulasso ORD will be completed in 1973 but work in Dedougou has been postponed until 1974. An additional garage will be necessary at Bobo-Dioulasso to house ORD vehicles, as the new garage built for the road rehabilitation unit and the ORD is too small. Vehicles 6. Most vehicles were purchased in 1972, and only a few replacements are planned for 1973. The road rehabilitation unit will require one grader and two trucks additional to equipment requirements estimated at appraisal. Revolving Fund 7. The revolving credit fund created under the project to finance project farmers' seasonal and medium-term credit requirements has not grown at the pace forecast at appraisal. The fund now totals about CFAF 22 million (40%0 below appraisal estimates). Reasons for this include: a. a lower use of inputs than planned (in 1973 only 33% of farmers are using fertilizer and 38% insecticides), mainly because of the less intensive extension effort, see para 3; b. medium-term credit terms are too stringent. Most implements (ploughs, hoes, etc.) must be paid for within two years, whereas they have a life of more than five years, sprayers within one year; and the down payments required (about 50%) are too large for most farmers; ANNEX 7 Page 3 c. procedures for medium-term credit are excessively complex. The National Development Bank (BND) approves all requests for medium-term credit at its headquarters in Ouagadougou. This is resented by the ORD's who, as a result, either do not process, or hold up, applications. In 1972 no credit applications involving repayments within a period in excess of one year were granted in Bobo-Dioulasso ORD. In Dedougou medium-term credit amounted to CFAF 2 million (US$10,000) but even here because of processing delays the implements were received five months after the farmers' application. 8. BND has been requested to make proposals for decentralizing medium- term credit operations by making each ORD responsible for final approval of farmers' medium-term credit applications. BND would only approve a ceiling under which the ORD could grant individual medium-term credits; this, in fact, is the system used for short-term credit. BND was also asked to consider liberalizing its credit policy, by reducing down payments and lengthening credit repayments periods. Use of Insecticides 9. Insect pests are a serious constraint to cotton yields and currently the level of insecticide use is inadequate. The Project General Manager fhas been asked to make proposals for increasing the use of insecticides, including the purchase of sprayers to be rented out to farmers and used under the supervision of extension workers. Processing Facilities 10. The revised cotton production forecast for Upper Volta shows that the ginnery at Hounde, which is included in the project, will be needed for the 1974/75 season. Bids are to be called in October/November 1973 in order to permit civil works to start by January 1, 1974. Roads 11. Road repair and rehabilitation has been carried out satisfactorily although there was something of a slow down in 1973 due to problems with equipment, but also to a reduction in operating budget for the road repair unit. 12. Detailed engineering for the main roads Koudougou-Solenzo and Bereba-flounde provided for in the project is virtually completed. Work on the Bereba-Hounde road should start in September. ANNEX 7 Page 4 Second Stage Project 13. The feasibility study for an integrated development project was completed by Compagnie International du Developpement Regional (CIDR) in late 1972 at a cost of CFAF 15.8 million. Operating Results 14. Comparison between actual costs and appraisal estimates shows that project implementation is about one year behind the appraisal forecast. This justifies extending the project closing date by one year, and reflects the staffing problems (staff salaries are 29% below appraisal cost) and lower than expected use of fertilizer and inputs (about half of target) by farmers. Because of the delays and the thus lower than anticipated cotton production it has been possible to postpone building the Hounde ginnery from 1972 until 1974. 15. Costs. All project costs have been revised to take into account actual expenditure to date, extension of the project development period by one year, and the proposed increase in extension staff numbers. Revised costs indicate no material changes between cost items when expressed in CFAF, and the total cost of the project remains at CFAF 2.6 billion. ANNEX 8 Page 1 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Research Institutions 1. Agricultural research in the country is carried out by specialized French overseas research organizations under contract with the Government They are: (a) IRAT (Institut de Recherche Agronomiques Tropicales et des Cultures Vivrieres) which deals with food crops at three research stations: Saria, Fara Koka and Moktedo, and employs a total staff of 8 professionals; (b) IRRO (Institut de Recherche pour les Huiles et Oleagineux) conducts research on oil seed crops, especially ground- nuts, and employs 3 professionals at two centers: Saria and Niangoloko; (c) IRCT (Institut de Recherche du Coton et des Textiles Exotiques) conducts research on fiber crops, especially cotton, at two centers (Ouagadougou and Bobo Dioulasso) Where it employs 3 professionals. 2. Since June 1970 the three institutes together with five others have been federated at headquarters in Paris as GERDAT (Groupement d'Etudes et de Recherches pour le Developpement del'Agronomie Tropicale). The new federation is designed to ensure the coordination of the activities of the institutes, but institutes retain their contractual autonomy. 3. Apart from work at the above-mentioned research centers, the institutes carry out field experiments and trials at other sites in order to cover the country's various ecological zones. Up to now, however, research activity has not been carried out in the project area. Research Programs 4. Research on Sorghum is aimed at developing short stem varieties with good grain quality. Because of the low production potential of the local genetic stock, exotic varieties have been introduced and cross breeding work is underway. Seed multiplication of improved local varieties is being carried out for distribution through the ORD's. Other research deals with fertilizer requirements on various soils, soil preparation and rotations. Some attention is also given to millet, an early hybrid variety has been developed and two promising late varieties have been introduced from Mali. ANNEX 8 Page 2 5. Maize research has resulted in the development of improved local varieties capable of yielding 4 tons/hectare; seed multiplication is under- way. Introduced plant material has proved promising, with yields of over 5 tons. Hybrid lines have been developed and are undergoing field testing. Fertilizer experiments on maize have established the benefit of split appli- cations of nitrogen, and application of phosphorous and/or potassium depending on soil type. 6. Rice research has been intensified in recent years, both for irrigated and upland types. Irrigated rice varietal work emphasizes blast disease resistance. Of introduced varieties those developed by IRRI (Inter- national Rice Research Institute) have proved superior to varieties presently being promoted by extension services. IRAT participates in the cooperative variety trials carried out throughout West Africa, and organized by WARDA (the West African Rice Development Association). IRAT produces the founda- tion seed of high yielding varieties which is then multiplied by the ORD's. Fertilizer experiments have shown that irrigated rice presently responds only to nitrogen applications. The timing of such nitrogen applications is under study. Other research deals with time of transplanting and pest con- trol methods. 7. Since upland rice has a good potential in areas receiving over 900 mm of rain (such as the project area), IRAT initiated upland rice research in 1970. First results are encouraging; studies show the need for nîtrogen and phosphorous fertilization. 8. Other research carried out by IRAT aims at improving the traditional rice production in depressions (bas fonds), through improved water control techniques, varieties, crop establishment, pest control, and fertilization. 9. Groundnut research has emphasized variety work. Virus resistant crosses have been developed and proven superior to the presently recommended varieties. Fertilizer requirements have been established. Recent investiga- tions have brought to light the yield depressing effect of a nematode in southwest regions; this parasite affects groundnuts, soybeans and other beans. 10. Cotton improvement work has resulted in the development of improved local varieties. Ongoing cross breeding work is aimed at improving fiber strength, pest resistance, and of developing varieties capable of producing an edîble cotton seed meal. Other research has resulted in the extension among growers of effective fertilizer treatments and effective pest control measures. 11. Other specific lines of research are directed toward the problems of cowpeas and forage crops (IRAT) and soybean and sesame (IRRO). ANNEX 8 Page 3 Status of Research in Bougouriba Area 12. To date there have been no research activities in the project area. All three research institutes, however, have now begun to direct their atten- tion to the Black Volta Valley; IRHO has been conducting local adaptive re- search at a sub-station established at Diebougou, and other institutes will be able to use these facilities. 13. The integrated development of the Black Volta area will require an intensification of adaptive research especially varieties and cultural techniques for the most promising crops. The local sub-station created for this purpose also would be responsible for controlling the production of seed of improved varieties of cotton, maize, rice, groundnuts, sesame and other crops. Proposed Research and Seed Multiplication Center in the Bougouriba Area 14. Representatives of the three research institutes have cooperated in the production of plans for a center to serve the the agricultural develop- ment needs of the project. 15. The research program to be carried out at the proposed center would be concerned with crops exhibiting greatest potential for the project area: upland and irrigated rice, maize, cotton, groundnuts and seasame, but also forage crops (e.g. stylosanthes), and potential animal fodder such as cassava and sweet potatoes which could be used for pig production. The program will concentrate on the following: - high yielding varieties (sorghum, maize, rice, cotton, groundnuts, cowpeas, stylosanthes); variety trials will be carried out at the sub-station, and also at represent- ative locations throughout the project area to cover variuos ecological conditions. The varieties under test would be those selected or developed by the main research centers of the institutes in the country; fertilization: Trials to determine the fertilizer require- ments of the main crops and the timing of nitrogen applications to cereals will be carried out at the station and at various locations in the area; cultural methods (erosion control, soil preparation, crop establishment, weed control (Striga) timing of operation); special attention will be given to ox-drawn cultivation technics; ANNEX 8 Page 4 - pest control; especially on cotton, and rice blast disease. Disease resistance will continue to be an important aspect of the crop variety research; - rotations; with due attention to markets and economics; and - techniques for growing irrigated rice under local condi- tions (varieties, water control, crop establishment). 16. Research Organization. The Center would be about 65 ha and would be selected following a soil survey; it would include a swamp area for irri- gated rice work. 17. The officer in charge of the station and the entomologist would have three assistants responsible for research; seed multiplication; and farmer training and field demonstrations respectively. The center's research program would be established as well as carried out in close cooperation with the national programs of the three institutes. He would be called upon to participate in training programs for extension agents and farmers. 18. Seed Multiplication. Seed multiplication activities for the main crops would be carried out at two levels: (a) production of improved seeds at the center; this would be from breeder seed supplied by the main research centers of the three institutes (first level of multiplication); (b) multiplication of seeds by selected farmers under contract, who would be supervised by center staff. Initially it may prove necessary to produce registered seed at the sub-station. The center would have full responsibility for quality control, for the collection of seeds from contract growers, and for cleaning and packaging seeds. 19. Cooperation with Other Research Organizations. Both Upper Volta and IRAT (France) are members of WARDA, and through this have a close link with rice work executed by IRRI. Two other agencies from which the project could benefit are the LAR (the Institute of Agricultural Research) of Ahmadu for Tropical Agriculture) in southern Nigeria. Arrangements would be made under the project for appropriate liaison and cooperation with these agencies. ANNEX 9 Page 1 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Bougouriba ORD 1. General. The Bougouriba ORD vas established in 1971. It covers the "Cercles" of Diebougou and Gaoua, and is active in 36 "cantons" of the 39 of the region. It is managed by Compagnie Internationale du Developpement Rural (CIDR) which has been active to varying degrees in the region since 1963. Its operations have been financed principally by the national budget, but also by some charitable organizations such as OXFAM. 2. Finances. The income statements for 1972/73 (Table 1) show a surplus of CFAF 21.5 million. Although the surplus does not take into account civil servant salaries, which are paid directly from the national budget, it compares favorably with that of other ORD's. The ORD made a gross profit of CFAF 7.5 million from its marketing of agricultural products, and this compensated for the fact that national budget allocations and assistance from aid donors were inadequate to cover all ORD expenses. 3. The balance sheet at Table 2 indicates substantial liabilities to BND and BIAO totalling CFAF 30 million. Borrowings from BND of CFAF 9.8 million were used mainly for financing the purchase of agricultural products for resale. No medium-term credit was extended to farmers in 1972/73, how- ever, unpaid maturities on seasonal input credits were high as CFAF 1.8 million or 35% of the total of such short-term credit and indicates that a greater effort to recover overdue credit repayments is essential. 4. Production. Although endowed with probably the best soils in Upper Volta, yields and production in the Bougouriba ORD area are very low. Cereals yields average only about 580 kg/ha when 700 kg/ha usually can be attained easily under traditional conditions. In 1972 production and yields of the principle crops were as follows: Tons Yields kg/ha Cereals 102,363 580 Cotton 1,843 570 Groundnuts (Shelled) 8,743 440 Rice 2,710 875 Yams 27,018 10,700 ANNEX 9 Page 2 5. Organization. The ORD employs a total of 126 people, and is involved, apart from agriculture, in such activities as promoting female health care, savings associations, and pre-cooperative and cooperatives. Agricultural extension staff number 77, including sector chiefs, sub-sector chiefs and extension agents. Most of the 50 extension agents are part-time extension workers. They draw a salary which is about half that of a full- time agent, and are expected to demonstrate improved agricultural techniques on their own farms. The employment of part-time extension agents is part of the CIDR philosophy which aims at a closer integration of extension services and farming community than other agencies, for example CFDT or SATEC. Unfortunately because of their divided interest, part-time extension agents have not proved very efficient. This is well demonstrated by the poor production levels achieved in the ORD area. 6. The ORD has conducted a number of useful experiments in setting up pre-cooperative movements, primarily savings associations and developing a health care program. The pre-cooperative movements, at first organized for group purchases, have since begun marketing agricultural products, and have been successful. Two primary savings associations have just been created. Their purpose vill be to keep savings made by the farmers and mobilize it within his farming community. Health care is promoted by a number of expatriate female social workers who train local agents in the villages. This program sponsored by OXFAM has been successful. ANNEX9 Table 1 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPNENT PROJECT Bougouriba ORD Incone Statements (CFAF'OOO) At March 31, 1973 1972/h 973 Income Sales - Agricultural Products 22,370 - Chemlicals 26$192 - Seeds 109 - Material and Equipment 1,042 Total 49,713 Grants - National Budget 30,601 - Other 2,436 Total 33,037 Other Income 2,123 Total Income 84,873 Expenses Cost of Goods sold - Agricultural Products 14,700 - Chemicals 4,51o - Seeds 149 - Material and Equipment 2,089 - Packing and Miacellaneous 1,495 Total 22,943 Staff Expenses 11,480 Administrative and General Expenses 28,970 Total Expenses 63,393 Net Income 21s480 Am9 UPRR VOLTA BUGOJURIBA AORICULTURAL DEVELOFT IROJECT BouuroiIa ORD Balance Sheets (CFAF '000) At March 31, 1973 1972/1973 Assets Gross Fixed Asseta 48,251 Stocks 7eO05 Accounts Receivàb1e il, 897 Cash and Bank 2,731 Total Assets 69,884 Liabilities Equity 30,540 Bai* Borrowings - BND 9e,847 - BIAO 20,31L4 Accounts Payable 9,183 Total I&abilities 69,884 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Bougouriba ORD Area, Population and Number of Farms (1972) Total Area Cultivable Cultivated Total Population DensitW per Number of km2 Area (ha) Area (ha) Population Growth % km Farms ORD Sectors Dano 3,470 290,700 47,108 83,622 1.9 24 8,743 Diebougou 3,617 300,690 50,039 87,605 1.9 24 10,097 Gaoua 4 901 476,010 69,024 U8,754 1.9 24 15,296 Kampti 2,o44 183,980 20,210 33,677 1.9 16 4,812 Batie 3,416 236,520 19,258 36,294 1.9 10 3,994 TOTAL ORD 17,448 1,487,900 205,639 359,952 1.9 21 42,942 UPPER VOLTA BOUGOURIB AGRICULTURAL DEfLP0CN%T PROJBCT &MZELba OIRD Arua_ Under Drin_Ia1 Crona in 1972 (ha) Total Cultivated Cereals 1/ % Cotton % Groundnuts % Rice % Yams % Ara 0W0 8.cor: Dano 38,575 81 2,838 6 4,522 10 1,173 3 - - 47,108 Diebougou 42,1402 85 209 - 6,558 13 870 2 - - 5°0039 Gaoua 62,738 91 130 - 4,333 6 1,023 2 800 1 69,024 Kampti 16,220 80 20 - 2,452 12 18 - 1,500 8 20,210 Batie 17,002 88 20 - 2,000 10 12 - 224 2 19e258 TOTAL ORD 176,937 86 3,217 2 19P865 10 3,096 2 2,w524 205,639 1 Mainly sorghum and millet. ANNEX 1 0 Page 1 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Agricultural Development Component A. General 1. The major crops in the project area (Table 1) are sorghum and millet, cowpeas, maize, groundnuts and yams. Other crops include cotton, rice, sesame, tobacco and pepper. Data on production of cotton can be compiled from purchases by the Association en Participation, and of ground- nuts from purchases by Caisse de Stabilisation des Prix des Produits. Pro- duction data for other crops, farmers yields, farm sizes and cropping patterns were surveyed by Compagnie Internationale du Developpement Rural (CIDR) which has been operating in the project area since 1963. 2. Cultivations are carried out mainly by handhoe (Daba). However, some 100 farmers (0.2%) are reported to own work oxen and equipment. In 1971/1972 they cultivated some 230 ha mechanically. B. Farming Systems 3. Farm Size. The mean farm size is 4.8 ha. However, the farm size varies with the ethnic zone as follows: in the BWA zone 7.42 ha; in the Dagari zone 5.13 ha; in the Dian zone 5.83 ha and in the Lobi zone 4.20 ha. The Dagari and Lobi farm already cultivating cotton, averages 5.20 ha, and the Lobi farm cultivating yams averages 5.50 ha. 4. Size of Farm Family. The farm family size varies with the ethnic zone and is estimated as follows: in the Bwa zone 14; in the Dagari zone 9; in the Dian zone 11; and in the Lobi zone 10 when the family is cultivating yams, and 7 otherwise. 5. Labor Availability. Daily labor availability is estimated at 5 mandays in a Dagari family, and 6 mandays in a Lobi family cultivating yams. 6. Cropping Pattern. Intercropping is commonly practised in a variety of combinations. The cropping pattern of an average farm in the Dagari and Lobi area, on the basis of the sole crops might be as follows (ha): ANNEX 10 Page 2 Dagari Lobi Cereala 4.00 4.50 Cotton 0.50 - Groundnuts 0.30 - Rice - 0.20 Yama - 0.50 Beans 0.40 0.30 5.20 5.50 7. This pattern is expected to change as a result of the project which would promote sole cropping and the introduction of improved production practices for cotton, sorghum, maize, groundnuts, and rice. These would result in changes in areas planted, and an increase in the farm size. 8. Samples of model cropping patterns resulting from project activities are compared with the assumed traditional pattern below (in ha): - - - -DDagari--- ---Lobi -- Traditional Improved Traditional Improved Traditional Cereals 4.00 2.85 4.50 3.35 Improved Sorghum - 0.70 - 0.60 Improved Maize - 0.65 - 0.55 Traditional Cotton 0.50 - - _ Improved Cotton - 0.75 - 0.75 Traditional Groundnuts 0.30 0.30 - - Improved Groundnuts - 0.30 - - Traditional Beans 0.40 0.40 0.30 0.30 Traditional Rice - - 0.20 0.20 Improved Rice - - 0.20 Traditional Yms - - 0.50 0.50 Total 5.20 5.95 5.50 6.45 9. The anticipated effect of the project on the five crope selected for development cotton, sorghum, maize, groundnuts, rice is considered in subsequent paragrapha. Proposed improved practices are defined and their likely impact is analyzed in terms of area, number of grovers and production on a crop by crop basis. ANNEX 10 Page 3 C. Cotton Varieties 10. Cotton of the improved BJA 592 type has been grown in the project area only fairly recently and especially since 1966-1967. Production was estimated at 2,000 tons of seed cotton in 1972 (6% of total production in Upper Volta). This variety is well adapted to conditions prevailing in the West of Upper Volta and IRCT continues to improve its quality by selection. In addition IRCT introduced and tested new varieties; among them PANF3/71 is promising for the project area; under experimental conditions it gives higher yields and better lint quality than BJA. 11. Seed of improved varieties is produced at the research station of Institut de Recherche du Coton et des Textiles Exotiques (IRCT) at Bobo Dioulasso and bulked up at the two seed multiplication farms belonging to CFDT, before distribution to farmers. Pests 12. The cotton crop is attacked by a range of pests at different stages in the growing period. (a) Between germination and flowering: Aphides and Jassides may occur but seldom cause serious damage. (b) Period of boll growth: The most important pests of the flowers and bolls are red bollworm Diparopsis, the American bollworm Heliothis, Earias and Argyroploce. Improved Practices 13. Research carried out by IRCT at its stations in Upper Volta and West Africa as well as CFDT experience has given rise to a set of recommended practices for the crop. Given adherence to the full package of improved practices outlined below, average yields of seed cotton are predicted to approximate 1,200 kg/ha at the farmers' level. 14. Land should be ridged at 0.80 m (centers slightly off the contour to promote drainage), and 20-25 cm (9-10 in) high. Alternative furrows should be tie ridged to promote water retention. Ridges should be completed to allow for planting in mid-June. 6-8 seeds should be sown 2.5 cm (1 in) deep at 30 cm or 35 cm along the top of each ridge, according to soil fertility. 100 kg of 20/37/7 NPS fertilizer should be applied at planting. Plants should be thinned to two per stand about three weeks after planting and preferably after a good rain, to minimize the effects of root disturbance. Weeding and ridge maintenance should be undertaken before weed competition is serious. Normally three weedings are required. ANNEX 10 Page 4 15. Application of insecticides would be timed in accordance with pest identification in the field. A DDT, polychlorocamphene, methylparathion (S.137 B), a mocrotophos - DDT (Azodrine, DDT), a Endolsufan-Methylparathion (Peprothion) mixture or, less toxic insecticide would replace the DDT-Endrine eiulsion presently used and which proved very toxic to humans. 10.5 to 15.0 liters/ha/annum would be used. Under common practice insecticide is mixed with water and applied with a sprayer. As clean water is not often readily available in the cotton area, new advance techniques for the use of ultra low volume (ULV) spraying for insect control are being tested under farmers' con- ditions in Nigeriats northern states. The new techniques will be tried in the project area and, gradually introduced among farmers. 16. Harvesting should begin in October and be continued at regular intervals to prevent boll spoilage. Picking should aim to avoid dirt, trash and stained or damaged lint in order to qualify seed cotton for purchase as Grade 1. 17. All cotton plants should be uprooted and burnt by March 1 and from that date until June 1, no cotton may be grown. Future Production 18. Increased production id expected to derive partly from increased area planted and partly from the adoption of new techniques. 19. Area expansion over the project period is expected to be from 5,000 ha in 1973 to 12,000 ha in 1977, an increase of 35% annually. It is estimated that farmers already growing an average of 0.50 ha of cotton would increase it to 0.75 ha. New growers would increase their holdings to 0.75 ha over three years. 20. Adoption of new techniques would follow the following steps: Step 1: Use of early planting, sole cropping, and spraying for insect control. Such measures would result in yields averaging 750 kg/ha. Step 2: The addition of fertilizer at planting would lead to Step 2, averaging 950 kg/ha. Step 3: Would involve the use of ox-drawn cultivation methods. Yields would then average 1,200 kg/ha. 21. It is assumed that cotton growers would progress as followv in terme of percentages of farm families in the three categories: ANNEX 10 Page 5 Traditional Step 1 Step 2 Step 3 1973 100 1974 75 25 1975 40 50 9 1 1976 25 50 22 3 1977 10 50 33 7 Average Yield (kg/ha) 400 750 950 1,200 22. The number of grovers and corresponding acreages would increase as follows: 1973 1974 1975 1976 1977 Farmers already growing cotton Number of Farms 10,000 10,000 10,000 10,000 10,000 Area cultivated (ha) 5,000 5,500 5,750 6,750 7,500 Ha/Farm 0.500 0.550 0.575 0.675 0.750 New Growers Number of Faras 500 3,200 6,000 Area cultivated (ha) 250 2,000 4,500 Ha/Farm 0.500 0.625 0.75 Total No. of Farma 10,000 10,000 10,500 13,200 16,000 Total Area Cultivated 5,000 5,500 6,000 8,750 12,000 23. Resulting seed cotton production would be (tons): 1974 2,684 1975 3,798 1976 6,300 1977 9,756 D. Sorghum Background 24. Sharing with bulrush millet the role of traditional grain staple, sorghum is grown widely throughout the project area. The grain is normally ground to a coarse flour and eaten as porridge. It is also brewed to make a light beer. ANNEX 10 Page 6 25. Under the traditional systems of cultivation yields vary from 400-600 kg/ha in response to intensity of intercropping, soil and climatic effects. Sorghum production in the area was estimated at 94,000 tons in 1972 on an area of 141,000 ha, giving a yield of 670 kg/ha. 55% of the total cultivated land is estimated to be under sorghum. The crop is grown on all holdings alone or in a variety of mixtures. 26. Pests. Although its effects have not been quantified, the parasitic weed Striga is probably the most significant pest of sorghum. Others include a range of stalk borers, Downy Mildew, a variety of leaf diseases causing spotting and striping, and smut diseases. The latter are to a considerable extent controlled by seed dressing with copper fungicides which are readily available commercially. 27. As befits a staple grain, sorghum is normally planted on the main farns in close proximity to the compound. Land is ploughed and ridged by hand hoe or occasionally mechanically, prior to planting at approximately 0.8 to 0.9 meters between rows and varying distances (0.3 to 0.4 m) within rows according to intercropping practices. Sorghum is planted in the project area in May/June, after such crops as early millet, when the rains are firmly established. Two or three weedings and earthings-up are normally carried out. The crop flowers at the onset of the dry season, in late September/early October, and matures, utilizing residual soil moisture, by late November/December. 28. Generally the stalks are cut near ground level and stacked in the field after removal of the heads, which are bundled and stored in mud plastered granaries in the farm compound. Heads are removed from the granaries as required for domestic consumption or for sale following thresh- ing. Storage losses are variable, one estimate is that on average 20% of the crop is lost in store. 29. Although no research has been conducted in the project area, results of experimentation conducted in Upper Volta and other countries by IRAT and other research institutes notably Samaru Research Center in northern Nigeria, can apply to the project area. The main thrust of sorghum research is now directed toward production of high yielding hybrids and dwarf varieties. This work is accompanied by investigations including time of planting, spacing, and fertilizer responses. Improved local varieties grown under improved agronomie practices showed yield gains over traditional types of 6 to 25% (averaging 18.6% or about 240 kg/ha) in over 90 trials planted at different sites in main sorghum production areas up to 1970. Such increases are of little interest to farmers. The main thrust of sorghum research is now directed towards production of high yielding dwarf varieties and hybrids. Material now available has a yield potential under field condi- tions of around 2,500 kg/ha and 4,000 kg/ha from dwarf varieties and hybrida respectively. Thé grain from these types is not yet widely acceptable for human food in rural areas but it can be sold readily in urban areas for human snd livestock food. ANNEX 10 Page 7 30. Two levels of improved technology have been assumed as follows: Improved Levels of Technology Traditional Category I Category II Variety Local Local Improved Plant Population/ha 19,200 19,200 34,800 Cotton Fertilizer Residual Effect Nil Yes Yes Better Planting and Spacing Nil Yes Yes Better Timing in Cultivation Nil Yes Yes Fertilizer Application Nil Nil 50 kg of urea and 100 kg of superphosphate Average Yields (kg/ha) 700 900 1,700 31. In addition to the major elements indicated farmers would be advised on field preparation, planting methods and other improved practices by project extension staff who would be responsible for ensuring the acquisition and delivery of dressed seed and fertilizer as required. 32. It is estimated that numbers of farmers using improved sorghum production methods would increase as follows: % of Category II Category I Category II Total to Total 1974 - - 1975 9,500 500 10,000 5 1976 9,500 1,000 10,500` 10 1977 11,200 2,000 13,200 15 In percentage terms farmers using improved sorghum technology would increase from about 17% of total project area farmers in 1975 to 38% in 1978 of which about 8% would be producing sorghum at the Category II level. 33. The sorghum area is likely to be affected by promotion of maize production under the project. The area of sorghum growing under traditional methods would decline from an estimated 141,000 ha in 1973 to 29,750 ha in 1977 (9%) and total area under sorghum including improved sorghum would decrease from 141,000 to 138,500 ha (2%). ANNEX 10 Page 8 Traditional Cereals including Improved Sorghum Sorghum Category I Category II Total 1973 141,000 141,000 1974 141,000 - - 141,000 1975 135,250 5,200 300 140,750 1976 134,000 5,200 800 140,000 1977 129,750 7,150 1,600 138,500 34. Production. The expected results of the project on production of sorghum vould be as follove (in tons): Traditional Sorghum and other Improved Sorghum Cereals Category I Category II Total 1973 98,700 98,700 1974 98,700 98,700 1975 94,700 4,600 500 99,800 1976 93,800 4,700 1,400 99,900 1977 90,800 6,500 2,700 100,000 Sorghum production would increase alightly (1%) over the project period while the area under sorghum would actually decrease. E. Maize 35. Back8round. Maize is already an important crop in the project area, cultivated in association with sorghum and millet close to the compounds, and with rice on the banks of the swamps, or in the swamps themselves. Maize is not usually cultivated alone except on the most modern farms. Several traditional varieties of maize are used. A very productive long cycle type (more than 5 months) ie planted in April in the southern part of the project area and a short cycle type (3 monthe) is planted in July in the north. Maize could be cultivated in sole rotation with cotton and yam. 36. It is difficult to evaluate the area under maize because maize is usually grown in association with sorghum. Estimates for 1972 were that 25,000 ha (10%) of the total project area vas under maize; and that maize production vas 14,000 tons giving a yeild of 560 kg/ha. ANNEX 10 Page 9 37. High yielding short season maize varieties and hybrids have been developed recently by IRAT in West Africa and by IAR at Samaru in northen Nigeria. Their promising performance under Northern Guinea zone conditions (the same as in the project area) have created marked interest in maize as a grain crop. Trials at Daudawa under different levels of plant population and fertilizer rates using variety (096) Bulk 3 gave yields ranging from 2,000 to over 7,000 kg/ha of threshed grain depending on the levels of treat- ments applied. Responses under farmers' conditions in Zaria province in 1969/71 ranged from 1,400 through 2,400 to 4,000 kg/ha using comparable treatments. Planting material with further lmproved yield potential is in course of development and is likely to be available for multiplication and distribution to farmers within two years. Improved Practices 38. These facts and the observation that the yellow grained varieties produce meal which is an acceptable substitute for sorghum meal in traditional porridge indicate the probability that maize area and production could be increased markedly under the project. The chronic deficit in Upper Volta cereals production provides further justification for maize promotion under the project. Area increases are expected to be at the expense of sorghum and millet area. They would occur mainly on the farms of the progressive individuals who are expected to be affected by the project. Improved techno- logy would have the following effect: Levels of Technology Traditional Improved Variety Local Improved variety Plant Population/ha 19,200 34,800 Fertilizer (kg/ha) Nil 125 kg of urea and 150 kg of superphosphate Projected Yields (kg/ha) 700 2,000 The level of improved variety is based on field trials and practices advocated by IRAT and IAR. 40. The number of grovers using improved maize production methods is: 1974 _ 1975 500 1976 2,000 1977 4,000 ANNEX 10 Page 10 41. Maize area vill increase 10% over the project period as follows: Traditional Improved Total -ha- 1973 25,000 - 25,000 1974 25,000 - 25,000 1975 25,000 250 25,250 1976 25,000 1,000 26,000 1977 25,000 2,500 27,500 42. The expected result of the project on production of maize would be as follows (in tons): Traditional Improved Total Maize Maize Maize Production 1973 17,500 17,500 1974 17,500 - 17,500 1975 17,500 500 18,000 1976 17,500 2,000 19,500 1977 17,500 5,000 22,500 Maize production would increase 28% over the four years of the project period. F. Groundnuts 43. Background. Groundnuts (arachis hypogea) are grown throughout the project area especially in the northern part in the Dagari zone. Before the introduction of cotton 10 to 15% of Dagari farms were under groundnuts but since then this percentage has decreased. Groundnuts are presently cultivated in the areas closest to Ghana where they are exported. Varieties include a local variety not resistant to the "rosette" disease and varieties introudced by IRHO, 1/ the 48/37 and 1040. 44. The area under groundnut is estimated at some 20,000 ha (8% of total area cultivated) and the production at about 8,700 tons giving an average yield of 435 kg/ha. Groundnuts are grown primarily for food as they mature in August/September after cereals and can be stored easily. They are also sold, and the proceeds used to pay income taxes. 1/ Institut de Recherche pour les Huiles et Oleagineux. ANNEX 10 Page 11 45. Improved Practices. A long series of agronomic trials and a number of selection and breeding programs by IRHO and IAR, Nigeria have resulted in the formulation of a package of recommended practices for groundnut production. These regularly lead to a doubling of kernel yields over traditional practices. 46. The proposed level of improved technology is based on this research and would incorporate early planting, shortly after the rains on land which has been prepared for cotton. Fertilizer, single superphosphate at 75 kg/ha, should be applied as a band in the furrows. Two seeds should be planted every 23 cm on the top of the ridges i.e. a seed rate of 80 kg/ha. Weeding and earthing up should be carried out early to minimize competition. Harvest- ing should begin immediately when the crop reaches maturity. Pod damage should be avoided by careful lifting. The crop should be dried by inverting plants on the ridge i.e. with pods uppermost for about six days. Thereafter the pods should be transported to an appropriate site for decortication. Care is necessary, particularly in lifting, and drying, to avoid the creation of conditions favoring the development of fungus (aspergillus flavus) responsible for the production of aflatoxin which is a toxic carcinogen substance. Yields of groundnuts cultivated along this method should increase progressively from 450 kg/ha to 800 kg/ha. 47. Number of Growers. In view of the economic uncertainties surround- ing groundnut cultivation, the project would promote improved groundnuts only with old cotton farmers having reached Step 3 and some Step 2 of cotton development. The number of those farmers would be as follows: 1974 - 1975 333 1976 1,000 1977 2,000 48. The total area under groundnuts would remain constant as follows: Traditional Improved Total ~~ -- ha- - - - 1974 20,000 - 20,000 1975 19,900 100 20,000 1976 19,700 300 20,000 1977 19,400 600 20,000 49. The production of groundnuts would, however, increase as follows (in tons): Traditional Improved Total 1974 9,000 - 9,000 1975 8,955 75 9,030 1976 8,925 233 9,158 1977 8,767 480 9,247 ANNEX 10 Page 12 G. Rice 50. Background. Rice has been developed throughout the project area over the last five or six years, as upland rain-fed rice. Some swamp rice has also been grown where population pressure is high. It is estimated that 3,000 ha (1%) of the total project area was planted under rice in 1972. The total rice production was 2,700 tons and the average yield 900 kg/ha. 51. There are a number of local varieties (the Santane - Diofor matur- ing early and the Gambiaka which has a longer cycle). Improved varieties have been introduced or are being tested including the D-52-37 and the Chinese C-740. The "operation terroir" was initiated in the adjoining Leo district in 1971 and obtained promising yields of 2,000 kg/ha with the C-740. 52. Pests. Grasses and sedges infestation result in 20% to 30% yield losses - fungus diseases are widespread in the project area and blast Is causing severe losses. 53. Improved Practices. Swamps would be developed under the project. Recommended measures would consist of: (a) contour bunding to prevent erosion and improve the vater holding capacity of soils on upper slopes; (b) simple surface channels, causeways, culverts for drainage and inexpensive lock and spill veirs for water storage at times of erratic rainfall. Works in the swamps would be financed by the Rural Development Fund Project, under the supervision of HER and the project extension staff. Yields on swamp rice would increase from 1,000 kg/ha the first year to 2,000 kg/ha in the sixth year of development. 54. Improved practices for upland rice would include use of urea at planting (50 kg/ha), better planting and spacing, and better timing in cultivation. Yields would increase fromr 900 kg/ha at present to 1,200 kg/ha in three years. 55. The number of rice growers involved in the project would be as follows: Swamp Rice Improved Upland Rice 1974 125 _ 1975 175 750 1976 250 1,500 1977 250 2,500 ANNEX 10 Page 13 56. The area under rice would increase as follows (ha): Traditional Improved Upland Rice Upland Rice Swamp Rice Total 1973 3,000 3,000 1974 3,000 25 3,025 1975 2,850 150 35 3,035 1976 2,700 300 50 3,050 1977 2,500 500 50 3,050 57. Rice production would increase as follows (tons): Traditional Improved Upland Rice Upland Rice Swamp Rice Total 1973 2,700 2,700 1974 2,700 25 2,725 1975 2,595 135 65 2,795 1976 2,490 293 127 2,910 1977 2,350 518 149 3,017 ANNEX 10 Table 1 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Project Area Crops and Production 1972 Area Production Yield ha 1 tons k/ha Sorghun and Millet 1141000 55 93,600 660 Maize 25e000 10 149000 560 Groundnuts 20,000 8 8,700 435 Rice 3,000 1 2,700 900 Sesame 500 - - Peas 66,ooo 25 13,600 200 Yams 3,000 1 27,000 9,000 258,500 100% TJPPER VOLTA BOUGOURJBA AORIÇULTURA DEVEL!T PROJECT Total Area and Project Induced Productions (Tons) 1973/74 1974/75 1975/76 1976/77 1977/7d 197,i/79 COTTON Seed Cotton Production - Total area production 2,000 2,684 3,798 6,300 9,756 9,756 - Project induced production 1/ - 884 2,198 4,900 8,556 8,756 Lint Production ?/ - Total area production 720 993 1,405 2,331 3,610 3,610 - Project induced production - 328 815 1,818 3,177 3,249 Exort Seed Production 2/ - Total area production 870 1,213 1,707 2,919 4,750 4,750 - Projeoct induced production - 400 990 2,277 4,180 4,275 SOGHM - Total area production 98,700 98,700 99,800 99,900 100,000 100,000 - Project induced production - - 1 ,100 1,200 1,300 1,300 MAIZE - Total area production 17,500 17,500 18,000 19,500 22,500 22,500 - Project induced production - - 500 2,,000 5,000 5,000 GROTJNUNUTS - Total area production 9,OOO 9,000 903O 9,158 9,247 9,247 - Project induced production - - 30 158 247 247 RICE - Total area production 2,700 2,725 2,795 2,910 3,017 3,(17 - Project induced production - 25 95 210 31 7 31 7 Without any extesion staff the area cotton production would decrease froa 2,000 tons in 1973 to l ,000 tons by 1978 At 37% of seed cotton 3/ er deducting 35 kg/ha for seeds for planting an_D% for waste. / qWled groundnuts. ANNEX 11 Page 1 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Livestock Services Component Livestock Characteristice and Background 1. In 1970, the last year for which statistics on livestock numbers are available, Upper Volta's livestock population was estimated at 2.5 mil- lion cattle, 4 million sheep and goats, 150,000 pigs, 200,000 donkeys, 70,000 horses, 5,000 camels and some 10 million poultry. Livestock product- ivity is low, mainly due to deficiencies in quality and quantity of nutri- tion during the 5-8 months dry season, and to the prevalence of endemic disease and parasitism. As a result total annual output rate (i.e. offtake plus herd increase) is only about 11% for zebus and 13% for humpless cattle and production of carcass meat per head of cattle per year (10-12 kg) is very low. Average carcass weight observed in the abattoirs of Ouagadougou and Bobo Dioulasso is about 130 kg, and only about 100 kg for cattle slaughtered in smaller towns or villages. Dressing percentages are about 50%. Sheep are estimated to have an output rate of 25% per annum and an average carcass weight of 16 kg. Output rates of goats vary between 30 and 33% and average carcass weight between 9 and 12 kg. 2. The PC 15 campaign financed by FED to eradicate rinderpest in Upper Volta (1964-1967) and its neighboring countries was almost entirely successful; but the disease reappeared in Upper Volta in the last quarter of 1971 and in early 1972, and it has not yet been stopped. Pleuropneumonia which is endemic to Upper Volta is also spreading without check. It is estimated that some 20,000 cattle are infected with pleuropneumonia each year and that about half of them die. Short of operating funds, the veterin- ary services have only concentrated on control vaccination in infested areas. However, a systematic vaccination program is essential especially because Upper Volta is criss-crossed by cattle routes from Mali and Niger to Ivory Coast and Chana. A systematic vaccination program for cattle in the border regions with Mali and Niger has recently been proposed for FED financing. The Project Area and Animal Population 3. The proposed livestock component will be confined to the Bougouriba ORD area. Information collected by the mission gives the following approximate statistics on animal population in the project area: ANNEX 1 1 Page 2 Cattle 106,000 Sheep 136,000 Goats 155,000 Pigs 27,000 Project 4. Under the project provision would be made to undertake the follow- ing treatments in the project area: (i) vaccination of all cattle against rinderpest in each of the first two years of the project; (ii) vaccination annually of all cattle under one year of age against rinderpest after PY2; (iii) vaccination of all cattle each year against contagious bovine pleuropneumonia; (iv) vaccination of cattle, sheep and goats against anthrax, blackleg and haemorrhagic septicaemia in zones where outbreaks occur as well as treatment of calves, sheep and goats against parasitic infestations. 5. Vaccination would be conducted by veterinary staff at vaccination yards built under the project. The vaccines would come from the present supplier Laboratoire National des Recherches Veterinaires de Dakar, whose products have been successfully applied in Upper Volta. 6. Ox-drawn cultivation would be introduced progressively to the farms capable of supporting three oxen, two as work animals for three to five seasons and one for fattening after it has finished its services as a draft animal. To achieve this objective it would be necessary to some extent to reorganize landholdings so as to provide separate consolidated areas for cultivation and fallow grazing and to provide for village herding of cattle. Training of the farmers in ox-drawn cultivation would mainly be done on their farms by the extension workers who would have been trained in simple animal husbandry and ox-drawn cultivation at the training center. 7. As the native Mere breed of the area is too small and not strong enough to pull ox-drawn equipment it would be croused with larger Zebus from the north. For meat production, Baoule and Mere breeds vould be raised and selected. Unlike Zebus they are tolerant to trypanosomiasis and *treptothricosis which are very serious threats in the area. ANNEX 1 1 Page 3 Expected Results 8. The major assumptions made for the livestock component of this project are that the weaning rate would increase from 40% at present to 45% five years from nov. (A weaning rate of 40% assumes that 20% of calves die before they are one year old, and that the calving rate is 50%). Adult mortality would drop within two years from 4% to 3%. 9. The output rate would thus increase from 10.5% at present to 16% over 10 years. The total number of cattle would increase from 106,000 at present to 139,500 during the same period; and incremental livestock produc- tion induced by the project would total 12,300 head by 1983. The average carcass weight would increase from 100 kg/head at present to 115 kg/head over five years. Future Projects 10. Based on the findinge of a PMWA identification mission (June 1971) a comprehensive livestock project feasibility study, starting in October 1973, will be undertaken. It is financed by FAC and includes the ORD's of Bobo Dioulasso, Dedougou, Bougouriba and Banfora: it will include measures for rehabilitation of the animal health services, establishment of feed lots, increase in pork and poultry production, construction of livestock watering facilities and measures for pasture improvement, marketing and processing facilities. The study is estimated to last about one year. UPPER VOLTA ANNEX 1). Table i BOUIGOURIBA AGRICULTURAL DEVELOPMIENT PROJECT HIERD DFVELI)PMLNT PROJECTION ENDO0F YEAR PRE.nEv. 1 2 3 4 5 6 7 ô 9 10 Il 12-20 HERD COMPOSITIüN RREEI3ING COWS 5433I 61431I 6'2668 6"266ti 62668 62666 62664 62668 c02668 62666 62666 62666 RULLS 3000 2717 3072 3133 2507 2507 2501 2507 2507 2507 2507 2507 250? CAIVES 19000 19600 22276 25801 26947 27574 28201 2i4201 20201 k2620 28201 28201 28201 9-24 MONTH HEIFERS 4200i 912U 9506 10604 12513 13069 13373 136?7 13677 136r7 13677 13677 13677 9-24 40NTH STEERS 4000 9120 9506 10804 12513 13069 13373 13677 13677 13677 13677 136?7 13677 24-36 M047H HEIFFRS 8400 5362 5371 4241 4234 4692 5216 5106 5115 5115 5115 5115 5115 24-36 MONTH STFERS 4400 8744 8758 9129 10375 12017 12551 12842 13134 13134 13134 13134 13134 36-48 MONTH HEIFFRS 3000 5049 163 O O 0 O 0 O O O O 36-44 MONTH S7FERS 61000 8364 8397 8410 4760 9963 11540 12052 12333 12013 12613 12613 12413 48-60 MONTH STEE9S 4000 5184 7139 6923 6771 6377 7248 6395 0764 6972 9176 9176 9176 60-7? M0474 STEERS 5000 3244 4224 5748 5507l 5254 4949 5624 6515 6434 6962 7121 7121 TOTAI NUK'4FPS 106000 111273 117566 121859 125854 129616 133425 136550 13b394 139164 1395»0 139684 139644 (TOTAL 4419805) 125000O 130873 139841 147660 152802 157192 161626 164751 16ô595 167364 167731 167489 167469 TOTAL ANIMAL UNIIS 10 070 1123 176 1159 254 1261 132 5 350 1034 196 3 50 194 139684 MORTAL0IT Y RR44014G C04S 1960 1964 1630 143 1600 1666 1840 1660 1980 1640 1660 1440 1660 9U005 120 120 41 92 94 75 (5 75 75 (5 75 75 75 wEANERS O 760 544 668 774 606 827 846 d46 846 k346 846 846 9-20 MONT4 HEIFERS 370 36A 274 285 324 375 3Y2 401 410 '410 410 410 410 9-24 MONTH STEFRS 370 364 274 285 324 375 3Y2 401 410 410 410 410 410 P4-36 9ONTH HEIFFRS 340 3 52 161 16 1 1 27 1 Z7 1 41 15 6 15 3 1 13 15 3 1 53 15 3 24-36 MON7H STEEPS 350 352 262 263 214 311 361 377 345 394 394 394 394 3644 40MO7T H$EIFFRS 1 20 1 2C 15 2 5 o o 0 O 0 36-4A 904TH STFERS 240 ?40 251 252 252 263 2Y9 346 362 3(0 378 378 378 48.40 M0414 S74495 160 160 156 214 206 203 191 217 252 243 2ô9 275 275 60-72 M0N7H SOFERS ?no put0 98 127 172 165 15d 146 169 145 204 209 214 TOT4I 40 40 338 32 356 76 349 00 406 12 417 416 11 PUE2LA,CE~ME1T OF B11EDING BULL.S 94301.1 O 244 464~~~~~~~P6 75 75 52 562 5 2 562 5 0,2 56 2 5 62 5 62 PUTOt 9 6 64 750 75 52 52 562 562 52 56 52 52 SALES POOLS 300 432 527 596 408 466 46 466 46 46 486 486 486 P4-36 MONIH HEIFFRS O CI O 1358 2129 2677 2481 2770 24940 2940 2940 2940 2940 P4-36 MON7H STEERS 500 69 44 92 105 121 127 130 133 133 133 133 133 16-4A MON7H HEIFFRS COLO 3C,0 7 O O 2 72 309 3b7 3 73 362 3 91 39 1 3 91 39 1 36 -4 M0NTH HEIF4RS O O 19148 1 042 0 O O OJ 0 O o 36-4P M047H STEERS 1 70C0 354 65 8 5 89 1 01 1 17 122 12k5 127 1 27 1 27 12 7 48460 MONIH HEIFFRS COOL O 64 1 44 1u1 O O O 0 O O O 0 Aâ-60 M0N1H STEERS 1700 576 974 1222 1347 2126 2416 2794 2923 2991 3059 3059 3059 60-72 MONTH STEERS 1700 5376 3971 5274 6744 6655 6334 6207 1064 8020 4340 8534 8647 FAT1FNINA CULL FEr 4900 2352 2635 4767 6079 6647 72y5 7902 7902 7902 7902 7902 7902 TOTAL on0 9 1034 1537 75 96 91 04 17 2; 23379 2372 32 PRODUICTION 04I4 WEA1NGN RATE 8 40.00 610.00 41.00 42.30 43.00U 44 . 00 45.00 45 .00 4 5. 00 45. 00 4 5.0 0 45 .0 0 4 5. 00 ADULT MOPTALITY y 4.n3 4.00 3.00 îo 3.00 3.00 3.00 3O 3.00 3.00 3.00 3.00 3.00 3.00 EXTRACTIOiN 940E I 10.47 4.04 4.40 11.93 13.d7 14.78 14.70 15.22 15.48 16.52 16.76 16.47 16.98 TOT. üL1TPRT RATE % 1 0. 47 4 . 048 4.40 il. 93 13.67 14.74 14.70 15 .2 2 1 5.448 1 6. 52 16 .7 6 16 .487 16. 94 COWS/7TOTA HERD I 39 .20 6 1 .51 4 3.9 3 4 2.44 4 1. 01 39.4j7 38. 7 7 38.04 3Y.62 3 7. 44 3 7. 36 37 . 33 3 7. 33 RULL/C0W RATIO X 6,.C0 5.00 5.00 5.00 4.00 4.00 4.00 4.00 4.00 6.30 4.00 4.00 4.00 40W CUJLLI4G RATE % 10.00 5.00 5.00 8.00 10.00 11.00j 12.06 13J.00 13.00 13.00 13.00 13.00 13.00 ROLI C0L0114G RATE 1 0 .00 1 5. 00 2 0 .00 2 0. 00 20.00 20.00 20.00 20. 00 20 . 00 20,.40o 2 0.00 2 0.00 20.090 MEIrFR CotLt ING RATE 8 3 . .0 3.0 3.0 0 5 .00 5 .0 0 5.00 5.00 5.00 5 . 00 5 .00 5 .00 5 .0 0 5.0 0 OA300ÀSS WZIGHT (kg/IIEAD) 100 105 105 110 110 110 115 ll5 115 115 115 115 115 I/ It is assumed that taoco heifer. are so1d to ourrounding ae..a end/or serve for early cow replacoiment. 2/ M4eans birth rote rainus cRIf mcort,eliov rate. ANNEX 12 Page 1 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Training Component A. Background Senior Extension Staff 1. Formal training of agricultural technicians and field assistants in Upper Volta is carried out by the Ministry of Agriculture at its four training achools: - National Training Center of Matourkou; - School for Rural Engineering Assistants (Adjoints Techniques du Genie Rural - ATGR) at Saria; - School for Veterinary Assistants (Infirmiers Veterinaries - IV) at Ouagadougou; - School for Water and Forestry Resources Wardens (Preposes des Eaux et Forets - PEF) at Dinderesso. The number of places in these schools is limited, and is usually determined by the nunber of vacancies at the disposal of the Ministry of Agriculture; this in turn is determined by the level of budgetary allocations available. 2. The National Training Center at Matourkou is the largest of the four; it has been reorganized recently and its capacity has been increased to satisfy the needs of the country. It will train extension workers at three levels: ï) Agricultural Assistants (Conducteurs de Travaux Agricoles - CTA); ii) Deputy Agricultural Assistants (Adjoints Techniques d'Agriculture - ATA); iii) Extension workers (Encadreurs). 3. Future CTA are recruited among candidates holding the BEPC (4 years of secondary school) who have succeeded in passing the admission examination. Their training lasts five years. After graduation they are assigned to the job of sector chiefs. The annual output would be between 15 and 20. ANNEX 12 Page 2 4. Future ATA are recruited among candidates having completed three years of secondary school and who have succeeded in the admission examination. After three years, students take the examination for the Agricultural Educa- tion Certificate (Brevet drEnseignement Agricole - BEA). Those receiving the Brevet then complete a further year of study which leads to the ATA diploma. Graduates are usually assigned the job of sub-sector chiefs in the ORD or equivalent positions in the civil service (Table 1). As of 1974 the output would be between 25 and 30 per year. 5. Future extension workers are recruited among candidates having completed the primary cycle of education and holding the CEPE. Before admission they pass an examination and a test of aptitude. As no practical agricultural knowledge is required, candidates in some cases come from urban backgrounds. The courses last nine months and are designed to supplement the general knowledge of the students and to teach them the techniques they will be required to disseminate among farmers. The course cycle is divided equally between classroom and practical training. One-third of the clasaroom vork is of a general nature, and two-thirds concerned with specific technical matters. Practical work takes place on the Center's 20 ha farm where cotton, groundnuts, and cereals are grown. Forty-one extension workers were graduated in 1972 (Table 1). Capacity has been increased from about 50 to 150. Practical work is not sufficient to equip the trainees to appreciate farmers' problems and to be able to advise how these may be overcome. According to some ORD directors, their training is too general and not well adapted to specific conditions of project areas. B. ProJect Training Center 6. The project would build and equip a training center near Bobo- Dioulasso to serve both the proposed project and the West Volta Cotton Project. The center would accomodate 24 trainees and would be managed by a training specialist with qualifications acceptable to IDA. The training specialist would be assisted by a professional assistant and by project staff as and when required. He would be responsible to the Project Manager and Technical Director. 7. The training center would train Voltaic personnel to enable them to participate as project staff members in the appropriate disciplines demanded by management. It would also orientate its training program to ensure adequate training in management and administration. 8. The training center would assist in selection of project staff and would establish selection criteria for such staff. It would be responsible for organizing special courses, seminars and for the arrangements of scholar- ships. Finally, it would provide follow up supervision of project staff which would determine needs for refresher course curricula. ANNEX 12 Page 3 9. Most courses would last for 2-4 weeks and would range from simple technical courses for newly recruited extension workers to more complex in- service courses for administrative, credit and marketing staff. All the courses would be project orientated, and staff at all levels would attend courses at various levels to receive training in basic project adminsitration. 10. As the intensity of staff training falls away, staff training courses would be replaced by courses for farmers, more specially those selected as cooperative leaders. ANNEX 13 Page 1 UPPER VOLTA BOTIGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Well Component A. Background 1. In the Bougouriba area, as in most of the cQuntry, there is an urgent need to improve rural water supplies. Presently most rural people rely on shallow wells, creeks and ponds. The shallow wells dry out towards the end of the dry season and for three to four months after this, rainfed creeks and ponds are the only water source. These sources are heavily polluted and loci for infection by bilharzia, Guinea worm, and trachoma. Women, who traditionally do the work, have to walk very long distances to fetch water towards the end of the dry season when surface supplies have not been replenished by rainfall. It has been estimated that in the Bougouriba region, they spend the equivalent of 46 days annually in carry- ing water. 2. There are about 750 villages in Bougouriba ORD, 120 of which have at least 1,000 inhabitants. Under the project one all season well would be constructed to serve each of these 120 villages. B. The Program 3. No hydrological or other technical problema are envisaged. There are proven underground water resources in most places at a depth of about 15 m, and sites for most of the wells have already been selected. 4. The project would have a well unit divided into two brigades; one brigade of eight teams would dig and line the well shaft down to the water level, and the second of four teama would dig below the water level and in- stall the filter column. This arrangement would reduce the amount of equip- ment required. Unskilled labor would be provided free by the villagers. About 300 mandays of unskilled labor would be required for each well, or an average of about 3 mandays from each family which would benefit from such a well. The organization of the unit would be as follows: ANNEX 13 Page 2 Well Specialist - Chief of Unit Brigade Chief Brigade Chief 8 teams each composed of 4 teams each composed of 1 well sinker 1 well sinker 1 assistant weli sinker 1 assistant vell sinker 2 drivers and 2 hands 2 drivers and 2 hands 1 mechanic 1 mechanic 5. Well design is based on experience acquired in Upper Volta which has benefitted from well programs financed by FAC and FED, and more recently by IDA (Credit 317-UV). Each well would comprise a reinforced concrete lined shaft of 1.80 m (5.9 ft) diameter. Where this shaft met the vater table, usually at about 15 m, a precast reinforced concrete sand filter column would be lnstalled bringing the total depth of the well to about 20 m. Surface installations would comprise a low parapet 70 cm high. No head works would be supplied, and water would be drawn by rope and bucket. Where necessary thorn fences would be established by the villagers to keep animals away from the well head. With routine maintenance every 3 years such wells are expected to have a minimum life of 30 years. 6. The ORD would be responsible for well maintenance and equipment procured under the project for construction would be retained by the ORD for this purpose. ANNEX 14 Page 1 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Road Improvement Component A. Back&round 1. The road network of the Bougouriba area comprises about 375 km of primary roads, 200 km of secondary roads and 500 km of rural tracks. Primary and secondary roads lead to the second main town of Upper Volta, Bobo Dioulasso, to the Abidjan-Ouagadougo railway, and to the cotton ginning centers of Hlounde and Koudougou. The state of primary roads is satisfactory, but that of sec- ondary roads and rural tracks poor. Many tracks are impassable even by light trucks, particularly in the rainy season, thus most goods are either head- loaded or transported on bicycles and manually drawn carte. B. The Program 2. The project would include the improvement of some 200 km of second- ary roads and 460 km of rural tracks in selected areas (Table 1) by grading and reshaping, improvement of drainage and, where necessary, building culverts and fords and other auxilliary works. 3. The worke would be carried out by the ORD with the help of a small mechanized unit based in Diebougou that would be placed under the supervision of the Highway Technician employed under the West Volta Cotton Project (Credit 225-UV). The Highway Technician would be assisted by a Chief Mechanic who would be especially employed for this purpose and who would reside in Bobo Dioulasso to work closely with the Highway Technician. The Highway Technician has adequate time available to supervise the project's road program. Under his direction he would have a reshaping team, and a team specializing in drainage improvement and construction of culverts. 4. The equipment needed for project works is listed at Table 2. ANNEX 14 Page 2 C. Maintenance 5. Maintenance of rural tracks after conclusion of the project would be carried out by the rural communities under the supervision of the ORD and with equipment acquired under the project. Maintenance of primary roads would be by the Department of Public Works. The Government i8 considering the creation of PWD branch for maintenance of secondary roads. When created, this branch vil! take over ORD's responsibilities. D. Studies 6. The project would finance preliminary engineering of the secondary road Pa Dano-Djipologo (73 ka) which is expected to have an annual traffie of about 18,000 tons by 1976. Of this traffic, 11,500 tona would be seed cotton produced in the Bougouriba area and destined for processing at Houade ginnery. The necessity of finamncing final engineering is not yet establiahed at this time. Design standards uould be: a gravel road 6 m vide and upon an 8 m embankment (estiuated coat CFAF 25 million). 7. One other road study vould also be financed under the project con- 3isting of a road survey in Leo district to establish priorities for improve- ment and extension of Leo district road network (estimated cost CFAF 20 mil- lion) and preliminary cost estimates. ANNEX 14 UPPER VOLTA BOUQOURIBA AGRIUULTURAL DEVELOP1ENT PkWJ3T Road Component Improvement Roads to be Improved DIEBOUGOU DISTRICT Eqpected Km Annmal Tonnage by 1976 A) Tracks- Dano -Kpoumane 32 2,800 Dano-Gueguere-Nakar-Tankredougou 48 4,900 Oronkua-Kankani 25 1,1400 Founzan-Kovio-Poulaba- 40 2,300 Djipologo-Zambo-Manoa 37 1i,500 Mongue-Nisseo-Loukoura-Tiankoura 38 4,000 Loukoura-Dissara 33 2,000 Subtotal 253 B) Secondary Roads Pa Djipologo 73 Nabon Fara Poura 41 Subtotal 1TM Total Diebougou 367 GAOUA DISTRICT A) Tracks Bouroum-Bouroum-Dipeo 31 1,800 Dipeo-Loropeni 37 6,200 Subtotal m B) Secondary Roads Nako-Bomoi-Malba-Dapola (PR 1/28) Loropeni-Kampti (PR 31) 21 Gaoua-Nako-Tiankoura (PR 27) 62 Batie-Malba junction 20 Batie-Volta river 15 Latara-Batie (PR 30) 63 Subtotal 225 Total Gaoua ?93 1 Grand Total 2 660 km / PR means route regionale according to the DPW classification of the road network. / ImIprovement of 375 km of primary roads is not included in that project. It is part of PWD program. November 26, 1973 82110 13 20228 0022 Tll 00000000 110001000l, 10EV00017 P0030CT Projai'. 1".. Coatîinaaar -lîFn.-,cOoa 1970,1379T 1975/1976 0961I977 1977771976 tale Total 02A2I000 109000 77A7000 US$9000 004A2000 US$00 01'00 W OR 0-off 'O-.Ot:a. ,-. 15.20: 10,10 16,900 5559 220 00,30'. 190 7,200 30 107 '.0 3~~ ~ ~~~~~11 300 l,0O. 900 - 11) 001V 102 - - 1,000 2,02Mo 10 0,700 10 30 - tooîpe-...t 1 ,8o7 - - - ~~~~~~ ~ ~~~ ~~~~~~ ~~~ ~ ~~~~~~1,921 10 1,60o 2.1 200 - E p~ ~ ~~~~~~%0 7,0 ,0 ,lo "' ,000 40 8,600 10 0,00 1 T,1,l -2,10 9,0190, 27,000 70,400 o9o 01,900 0)0c 9,100 40 Stal0 -oar.S-- ptt&t0000 5,0 1,m0 17,000 59,C0o 240 50,900 010 7,0 30 - boni ~~~~~~ ~ ~~7,130' 11,507 12,'00 01,20 44,4OO ido 39.600 16O 5,800 20 2..010036n z2,800 - - ~ ~ ~~~~~~ ~ ~~~~~~~- 32,800 1930 28,501 l010 0,90 20 Orlol', 0,100 - - ~~~~~~ ~~~~~~ ~~~ ~~~~~~~~~~~3,0 0,00 2 5,00 20 80 - î.:pan.1; 0,010 0020~ ~ ~ ~ ~ ~ ~~~~~~ ~ ~~1 MI- 5,600 o 4go0 00 70 - Opor'.oI'.J tollenoto 8000 12:00 1~~~~~~~~~~~~ll2,'00 12,000 03,030 180 79,101 150 5,600 31 Total 900~~~~~~~~~~~- 4 ' 1 0O 5,700 193,600 071 168,700 t7O 24,900 LOO Oorlo10'.rnl 7,onloOnnOO~~~~~~~~~~~., o 7 0' 12,oo 50 1B o - 01t0 01, .90 -.70 6o,7oo 073,000 00~~~~~~~~~~~~~~~~~~~~~',0 050,600 6o 2,00 9 0o,11oo;t I .73'. 07,000 01,110 9~~~511 13,600 cO îOî 22 220 5 430 - L , I650 31 570 0 80 - '.0'.>4 n~~~~~~2"OO 38,000 î4o,2Ooo 5370 12,0 x9 17,900 Bo 1' 0 1407 000 70,303 582,10 233 507,100 2,030 71,000 300 OoaOf'.nlao:o--1'.oa 100 9,iw; 20,300~~~~~~~~~~~~~~~~8'l 100 20,60 0 00 3.700 -0 0,1131070 0~~~~~~~ ~ ~~~~~~ ~ ~~~~~~~0, 32- 0500 1-0 26,300 110 4,200 00 3,313D 6,110 30 570 30 30 - 03.opo'.rt - 6,000 ~~~ ~~~~~~ ~~~ ~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~20 5,40 20 Ooo 1' 10 17 13,300 03,000 200 42,900 170 3,200 30 T, 1 l,0 30L 7 21,800 24,700 122,700 î90 120,900 .30 0,1 6î lonOf ,alarorn-enpttrlt00 ..:--,030<-,1071,700î0,001 130 10,830 113 ~~~~~~~~iDe 1 am iD ,00 20 -led <- ,~~~~~~~~~~~~~-» 02~~~~~~~~ ~ 4,0 13.010 50 il,73 47 7,3 10 11.0.0 - - - 15~~~~~~~~~~~~~l",0 0 13,3 0 1,900 1 OetcO's 1704 - - ~~~~~~ ~~~~~~ ~~ ~~~~~~~ ~~~~1,710 3,4002 t 1,10 10 0 - -ç-> 0<.'. 100~~~1, l, ,700 1 ,270 10 500 - lot'.'.,- - . 9,900 ~~~~~~~ ~~~~~~~ ~~10,100 19,900 203.30 7.3.00 270 55,500 230 10,500 40 Tot,,0 31,10 53,00 31,-30 96,000 196,.50 530 114,300 4tOI 20,200 80 0.12'.'-. osaI-I ed Y1)o'.pln'aoî n 0-,- - 0o'.n0 23,000 ~~~~1e115xo111 6,700 31 0'.'.01îoo~~~~~~~~~~~~~~~~~~~~~~~~~~~~4u ,0 70,07 100 3, 1 O-Oî. t-". 2,00~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Ic 450 0 30 000O - 30' ono ~~~~~~~~~~~~~~~~~~~~1,1)~ ,L21,7 90 3.0 10 Total 0>~~~~~~~~~~~~~~~~~~~1 42120 74. 27-? ~ 101,103 700l 26,002 110 OsaiS 4eJnrleo - .0201.1:'.;'. .3,97: ~~~~~~4,6,c ~ x 1600Cel5 1 21001 10 7.013.00'. ~~~~~~~~~~~~~~~~~~~~,17 î , 13,00, m5à 1 51 2,c 003 1 710<1-o ~~~~~~~~~~~~~~~~~~~~1 5 mi 112. 20080 20 1.00e.-.10 ~~~~~~ ~~~~ ~~~~~~~ ~~~~ ~~~~~~ ~~~~~~~~~~~-.000 140 3107 22 4703 2 '.0100 ~~~~~~~~~~-,. 1Dbc~ 36 4. 21 600 3j0 1,o qOî 29,000O 120 ,oîd 00-1 Staff :n.artta-exîatraata 90 00~~~~~~~~~~~~1~'1 4l'OC 14 1 ~12.,00 50 î,Soî 'O - local - - ~ ~~~~~~~~~~ ~~~~~ 5,11 5,800 17,0:0 70 14 400 60 2,100 10 7111-1400, - o~~~~ ~ ~~~ ~~~~~~ ~~~ ~~~~ ~~~~~~~~~~~~~,870 37 5,90ù 30 900 - 7,1 ,04 o eoPa.-'. 00 ,730 50,800 001 44,007 170 6,600 30 t07000tt 3,<.7 00 13~~~~~~~~~2,MC P,200 91,200 360 09,501 0 11700 40 T-:a 85,70 V 9206 43,ioo 079,400 720 150, 31) 630 23,000 30 Staff tatiarota-lotai - 30~~~~~~~~~~~~l"m ,~ î,6îî 4,701 20 1,100 20 60 - 00u-00ia - 130 81,00 -O 900 - 100 Opraî0 tÈl'.a - ,300 0 100 2,400 iOc 7,300 '.0 0,10 00,000 17,30- 0.00 32,901 33,300 3n0 - - 83,900 300 - Onpl'.ae'.ta 00~~~~~~~~~~~~~2- 3,9010 17,102 40,501 88,4x0 270 57,500 -230 10,90 407 ,0 Total I1,'.. 05,00 93,200 010,000 2:0,430 1,070 50,500 230 10, 90 47 121800 500 76,201 301 O t'. dlîn~~~~~~~~~~~~~~~~~~~~~~~13 1C~,m 8 03a8a - 28.701 27~~~~ ~ ~ ~ ~~~~~~ ~ ~ ~~~~~~~~,000 -, n32,000 i8c 2500 î o 4411e ~~~~~~ ~~~~~~ ~~~~~2,50 5,000 5,000 ,50 20,000 80 17409 2,000 10 Oott,tget'.îee ~~~~~~~~ ~~392.000 590,900 528,200 570,600 2,088.500 0,350--1,0'50,400 0,590 249,100 900 121.800 500 71,200 300 Y, Il,nî0n,~n1a 71,0 ,0 1 .00 200 2000 90 Il00 70 4,70 20 Otite Cantl.tge.tnlee 3/ 07,000 105,400 11800 1200 3900 ,60 39,00 1.40 59,900 220 39,600 m 240 5 artel Fraien Oa- 443,500 702,400 143,000 753.100 2.550,000 10.200 2,000,000 8,000 300,000 1.200 161,400 650 88,600 350 17 % an baîi ha einîle.-deqnîp.en. _/Oupeaed _~..allal 0904/ 1975 141 CiiIl -arI 1970/1975 181. 1975/19 76 lit 197571976 157~ 1908/1970 0.5 arY"'r 137631970 125 p-r Te- latoat 65.- er -aerateaaded. Apt,il 11, 1974 UPPER VOLTA BOUGOURIBA AGRICUL7URAL DEVELOPMENT PROJECT ANNEX 15 Proje ct Costs Table 2 Staff Salaries 1973 1974/1975 1975/1976 1976/1977 1977/1978 a »oree gn ( Cr"000) Unit alta Excnge Tes lehtie iStn,tfl 17,000 i t,,300 1 13,03( 1 13,8)0 i 16',580 68,000 3o9 77 taY hn8 0 s0 1 950 7 1 '90 1 2,1-0 1 2,300 7,430 3Ô; 76 r >1er 0~~ ~ ~~ ~~~~ ~ ~~~~~~30 1 320 1 25,0 i Sol 1 270 )O0 'Iotai leo 93 7,372 3 15,470 3 16,340 3 17,150 56,330 ORD Headuarters Director 4,000 1 3,150 1 4,410 1 4,630 1 4,860 17,050 Techmncal Director 9,000 1 7,090 1 9,920 1 10,400 1 10,900 38,310 36% 7% Accountant 5,000 1 3,940 1 5,510 1 5,790 1 6,080 21,320 36% 7% Assist-nt Accountant 500 2 790 i 2,200 4 2,320 4 2,430 7,740 Drivers 230 6 l,090 6 1,520 6 1,600 6 1,680 5,890 Clerical Pool 240 8 1,510 9 2,350 10 2,780 il 3,190 9,870 Storekeeper 370 1 290 1 410 1 430 1 450 1,580 Watchmen 130 4 410 4 580 4 600 4 630 2,220 Total Headquarters 24 18,270 27 26,940 28 28,550 29 30,220 103,980 Agricultural De,elop=net Assistant Tec-1ical Direîtor Gaoa- 1,000 1 790 1 1,100 1 1,160 1 1,280 4,330 Cottion and Cereals Sentor Chiefs 4,25 6 13,940 6 29,270 6 30,730 6 32,270 106,210 36% 7% Sector Secretaries 200 6 630 6 1,320 6 1,390 6 1,460 4,800 Sub-Sector Chinfs 340 12 2,140 24 9,000 27 10,630 32 13,220 34,990 , Extension Workers 200 63 6,620 125 27,560 150 34,730 160 38,900 107,810 Casuel Labor 100 4 210 7 390 7 410 7 430 1,640 Total Cotton and Cereals Development 91 23,540 168 67,540 196 77,890 211 86,280 255,250 Rice Development Sector Chief 4,425 1 2,320 i 4,880 1 5,120 1 5,380 17,700 36% 7% Sab-Secter Chisfs 340 - 2 750 2 790 3 1,240 2,780 Extension Workers 200 S 530 10 2,210 12 2,780 15 3,650 9,170 Casual Labor 100 10 530 20 2,210 22 2,550 22 2,670 7,960 Total Rice Development 16 3,380 33 10,050 37 11,260 41 12,940 37,610 Total Agricultural Development 108 27,710 202 78,e90 234 90,290 253 100,500 297,190 Livestock Services Veterinary Doctor 2,000 1 1,600 1 2,210 1 2,320 1 2,430 8,560 Veterinary Assistant 550 2 870 2 1,210 2 1,270 2 1,340 4,690 Vaccinator lst Class 500 2 790 2 1,100 2 1,160 2 1,220 4,270 2nd Class 350 3 790 3 1,160 3 1,220 3 1,280 4,450 Drivers 180 3 430 3 600 3 630 3 660 2,320 Clerical Pccl 240 2 360 2 530 2 560 2 590 2,040 Watchmen 130 2 210 2 290 2 300 2 320 1,120 Casual Labo, 100 2 160 2 220 2 230 2 240 850 Total Livestock Services 17 5,210 17 7,320 17 7,690 17 8,080 28,300 Training Center Chief Training Officer 8,000 1 4,200 1 8,320 1 9,260 1 9,720 32,000 36% 7% Assistant Training Officer 600 1 320 2 1,320 2 1,390 2 1,660 4,490 Drivers 180 1 90 2 400 2 420 2 440 1,350 Clerical Pool 240 2 250 3 790 4 1,110 4 1,170 3,320 Watchmen 130 2 140 3 430 3 450 3 470 1,490 Casual Labor 100 2 110 4 440 4 460 6 490 1,500 Cook 220 - 1 240 1 250 1 270 760 Assistant Cook 120 - 1 130 1 140 1 150 420 Total Training Center 9 5,110 17 12,570 18 13,480 18 14,170 45,330 July 30, 1973 JPPEd70L1V A BO2UOURIBA 1GRICULIURAL DEV8E OP,''JT FR0OJ,CT Fro-,ect Cosi Stafi SalarIat 1973 1974/1975 1975/1976 1976/1977 1977/1978 % Foreign (CFAF'o0O) Unit Salary 8 Total Exchange % Taxes l,search an Seed Yultiplication Center Chisf .5(0 7 .,a10 ~ '.1,'C ' 1.':.70 I 7.700 26,0P0 36% En-omnologist ,S01 3,410 ' 7,1,0 I 7;32i 7aOu 2o,eoe Assistants 480 2 760 3 1,590 i 1,670 3 1,750 5,770 Drivers 180 1 ,0 . 00 . 420 2 440 1,350 Clerieal Pool 240 i 179.) 270 I 2?d 1 230 1,030 Watchmen 130 2 140 2 210 2 300 2 320 1,050 Storekeeper 370 1 200 1 410 1 430 1 450 1,490 Casal Labor - Permanent 100 6 320 12 1,320 12 1,390 12 1,460 4,490 - Season.1 100 15 7'0 30 3,310 30 3,470 30 3,650 11,220 Total Research Center 30 11,310 53 21,930 53 23,000 53 24,160 78,400 Wells Program Chief 4,000 ] 2,100 1 4,410 1 4,630 1 4,860 16,000 36% 7% Chief Mechanic 1,000 - 1 1,100 1 1,160 1 1,220 3,480 Assistant Mechanic 240 - 2 530 2 560 2 580 1,670 Chief of Brigade 450 - 2 5y 2 1,040 2 1,100 3,130 Well Sinkers 300 - 12 3,`l70 12 4,170 12 4,380 12,520 Assistant Well Sinkers 180 - 12 2,35O 12 2,500 12 2,630 7,510 Drivers - Trucks 280 - 4 1,250 4 1,300 h 1,360 3,900 - Light Vehiciles 220 1 120 2 490 2 510 2 530 1,650 Watchren 130 1 70 2 290 2 300 2 320 Y80 Storel:eeper 370 - 1 3S0 1 510 1 430 1,230 Casual Labor 110 - 4 4610 4 4[ 4 510 1,460 Total Wells Program 3 2,290 43 16,250 43 17,070 43 17,920 53,530 Road Unit Chief Mechanic 3,500 1 1,050 1 3,060 1 4,050 1 4,250 15,000 36% 7% Refomning Team Team Leader 330 1 360 1 380 1 400 1,140 Dri-rers - Heavy SE,uipment 330 2 720 2 760 2 800 2,280 - Vehicles 260 3 BÔ0 3 700 3 550 2,710 Mechanic 250 1 280 1 290 1 300 870 Casual Labor 110 7 350 7 890 '7 71f0 2,680 Culvert Construction Tem Drivers - Vehicles 280 2 t20 2 650 2 680 1,950 Mechanic Helper 235 2 520 2 540 2 570 1,630 Casual Labor 120 8 1,060 8 1,110 8 1,170 3,340 Tota3 1,00 27 1`,130 2'7 ,570 27 10,060 30,600 Topographic and Resentlesment Unit Team Leader 550 i 610 1 640 1 670 1,9S20 Topographs 1o00 2 88O 2 930 2 770 2,700 'Total 3 1,40O 3 1,570 3 1,4O0 4,700 Total Staff Salaries 195 77,110 392 189,790 426 207,560 446 223.900 698,360 July 30, 19'3 UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Project Cost i3uildings 1973 1974/1975 1975/1976 1976/1977 1977/1978 % F'reign (CFAF'000) Unit Gost Totai Exchange ORD Headguarters Enclosure 2,000 1 2,000 2,000 60% Offices 6,000 1 6,000 6,000 41% Houses - Director 4,000 1 4,000 4,000 34% - Technical Director 4,000 1 4,000 4,000 34% - Acgountant 4,000 1 4,000 4,000 314% Store 500 m 8,500 1 8,500 8,500 41% Utilities 15% of cost 4,300 4,30° 60% Total ORD Headquarters 32,800 32,800 Agricultural Development Houses - Gaoua A Tech. Director 3,700 1 3,700 3,700 34% - Sector Chiefs 3,500 7 17,500 17,500 34% Stores - Sectors 200 m2 4,000 7 28,000 28,000 41% - Sub-Sectors 70 m2 1,000 - 12 12,000 12 12,000 il 11,000 35,000 21% Offices - Sectors 250 7 1,750 1,750 41% Utilities 15% of cost 7,600 7,600 60% Total Agricultural Development 58,550 12,000 12,000 11,000 93,550 Livestock Services Diebougou - Offices 145 m2 3,500 1 3,500 3,500 41% - Store 50 m2 1,000 1 1,000 1,000 41% - Doctor's House 4,000 1 4,000 4,000 34% Gaoua - Offices 133 m2 3,200 1 3,200 3,200 41% - Assistant fouse 3,500 1 3,500 3,500 34% Vaccination Yards 1,500 3 4,5°0 7 10,500 15,000 41% Utilities 15% of cost 2,300 2,300 60% Total Livestock Services 22,000 10,500 32,500 Training Center Survey and Land Clearing 500 500 50% Classroom 34 m2 ) 1 800 800 41% Dining Room 36 m2 ) 1 9 900 41i% Kit,hen - Storage 30 m2 ) 1 700 700 41% Dormitory 120 m2 ) @ CFAF 24,000/m' 1 2,900 2,900 41% Garage 25 m2 1 600 600 41% Office 60 m2 ) 1 1,400 1,400 41% Conference Room 50 m2 ) 1 1,200 1,200 41% 5 m2 Houses - Chief Training Officer 4,000 1 4,000 4,000 34% Utilities 15% of cost 2,000 2,000 60% Total Training Center 15,000 15,000 July 30, 1973 UPPER VOLTA BOUGOURIBA AGRICULTOJRA DEVELOPMENT PROJECT Project CDst Buildings 1973 1974/1975 1975/1976 1976/1977 1977/1978 % Foreign (CFAF'000) Unit Cost Total Exchange Research and Seed Multiplication Center Offices 50 mn 1,200 1 1,200 1,200 41% Store 200 m2 4,000 1 4,000 4,000 J1% Oxen Stables 100 1 100 100 41% Bouses - Chiet 4,000 1 4,000 4,000 34% Entomologist 4,000 1 4,000 4,000 34% Assistants 2,500 2 5,000 1 2,500 7,500 34% Watchmen 200 200 200 60% Utilities 25% of cost 3,300 5,300 Total Research 16,500 26,300 Wells Program Garage 100 m2 2,400 1 2,400 2,400 41% Store 200 m2 4,000 1 4,000 4,000 41% Houses - Program Chief 3,500 1 3,500 3,500 34% - Chief Mechanic 3,500 1 3,500 3,500 34% Utilities 15% of cost 2,000 2,000 60% Total welIs prograim 15,400 15,400 Road Uniit Garage 100 m2 2,400 1 2,00 2,400 41% House - Chief Mechanic 3,500 1 3,500 3,500 34% Utilities 15% of cost 900 900 60% Total road unit 6,800 6,800 Total Building Costs 144,850 54,500 12,000 11,000 222,350 July 3c), 197o July 30, 1973 c,|> B0UGOURIBA AGRICVr VELOPMENT PROJECT Vehil et Cst 11973 1974/1975 1975/19 6 298/977 19711-1978 $o. Foo-lgn (CFAF'OOO) U,,., o # 9 9/ 19 Total _cnge TecDnO ral tesistance - car î,0ûc I 1,0oo I l,000 2,000 80% ORD 817adqoeR.t7'C fLbrector - 2tatiox4 Wagon 920 1 920 1 920 1,840 80% Teolr.iial irector- 4--he.7 dr1e15 1,282 i,050 1 1,250 2,500 cOS Acovoviant - Station Wac- 920 1 920 1 920 1,840 80% Total OFO dora 3,090 3,090 6,180 80% Asieca7iFirecto.- - Picbg7 800 1 8ô0 1 800 1,600 80% Sector chiecr - Pickap 800 7 5600 7 560 U,200 80%, Truck6 - 8 tene 6,5w0 2 13,0110 2 I 1J,'X 26,000 805 3 .5 t- o s,850 1 1,850 1 1.850 3,700 BOX Total _gric.ltaral Dovelopeelt ?1,250 2tQ 25 42,500 80% Live-tock Servicos Veterinary Doctor - Station Wagon 920 1 900 i 920 1,840 80% Veterinary A..i.tant - Pickrp 800 1 800 1 800 1,600 93% Trakhs - 4-vheel dri- and trailer 1,550 1 1,550 1 1,550 3,100 Total Livestock Sereloeo 3,270 3,271 6,540 50% fradnîng Center Chief Od8ioer _ Station Wagon 920 1 920 I 920 1,840 20% ASsietant OiTicer - Pickup 8C0 1 800 1 800 1,600 80% T.ota1 Teringn Center 1,720 1.720 3,440 80% Ro.eeroh and Seed lultipltcation Center Ctloiosgtation Wa gon 9w2 1 920 1 920 1,840 805 - 2- ~~ ~ ~~~ ~~20 i 20 i 90 10082 loolotont - 20vkop 80 2 l,o00 2 1,600 3,20D Total Rvse7roh & 2;eed Multiplicati-n Centar 7.840 3,4460 b,881 80% We/lla Po00/ton in 1974 to CFAF 30,800/ton in 1980 (Table 11) at constant prices. Present producer prices of CFAF 25,750/ton for unshelled groundnuts (CFAF 42,500'for shelled groundnuts equivalent) are adequate. 24. Sorghum and Maize. Upper Volta will remain an importer of cereals for many years to come, and the production induced by the project (1,300 tons of sorghum and 5,000 tons of maize by 1978) will not marginally decrease lmports in the country now running at 30,000 tons in good climatic years. 25. Based on the world market forecast for sorghum, the economic import substitution price at farmgate would decrease from CFAF 33.1/kg in 1974 to CFAF 22.9/kg in 1980 (Table 12). This price is much higher than the price ANNEi 17 Page 6 presently paid to the farmers (CFAF 14/kg). An increase in the producer price for cereals is therefore justified. The corresponding import substi- tution farmgate price for maize would decrease from CFAP 37.7 in 1974 to CFAF 26.0 in 1980 (Table 13). 26. Rice. Upper Volta will remain an importer of rice for a number of years although recent rice development projects especially in the Bobo Dioulasso ORD should help reduce the deficit which totalled 1,400 tons in 1972. Project induced production would be only 470 tons by 1977. 27. Based on the world market forecast for Burmese 43 percent broken, the import sustitution farmgate price for milled rice is CFAF 87.5/kg in 1974, decreasing to CFAF 54.5/kg by 1980 (Table 14). The 1974 import sub- stitution price la roughly five times the present producer price. Producer prices could therefore be increased substantially in the future to bring them to an economically justified level. 28. Meat. All available information points to a strong excess demand to prevail in the West-Central African region in the future which should push prices upward. In one study total overall meat deficit in the region is forecast to reach 200,000 tons by 1980. 1/ In the Ivory Coast alone, which 18 the principal market for Voltaic meat, the Ministry of Planning estimates that imports of meat would reach 60,000 tons by 1975 and 80,000 tons in 1980. There will, therefore, be no problems selling the meat production induced by the project (1,700 tons by 1983). 29. The economic price for Upper Volta beef production is partly deter- mined by the price it fetches in Abidjan where 80 percent of Upper Volta exports go. The Abidjan retail prices in December 1972 were as follows: ---___ --___---CFAF/kg-- … ---Official Prices--- --Official Prices--- Bones-In Boneless Bones-In Boneless 250 300 350 425 The economic price is also partly determined by the price of beef on the local market because the major part of meat production is consumed locally. In 1973 wholesale market prices for beef are around CFAF 200/kg of carcass weight in Bobo Dioulasso (Table 15). In addition, a Bank review of the world beef market in February 1973, 2/ included a table of "some interna- tional prices serles" shown at Table 16 for reference. The series for Hamburg frozen quarters and for average LDC exports (III and IV) which fluctuated along the same lines, would be the most likely choice as a base 1/ Supply Central West Africa wlth Meat, SEDES, Paris 1969. 2/ For the Brazil Agro-Industries Project. ANNEX 17 Page 7 for pricing production of the project. Various extrapolations of the LDC export series beyond 1970 give a price for this quality of meat ranging between US$0.90 and 1.10/kg in 1972. Such cif prices would correspond to retail prices in Abidjan ranging between US$1.2 and 1.5/kg of meat bones-in. 1/ 31. The various prices are compared in the following table. They are consistent and establish that the price of CFAF 190/kg farmgate for carcass weight used in the project in justified. UPPER VOLTA BOUGOURIBA AGRICULTURAL DEVELOPMENT PROJECT Marketing and Export of Agricultural Commodities (in tons) Commoditv 1966 1967 1968 1969 1970 1971 1972 Groundnuts Marketed 8,682 10,872 10,300 10,333 7,804 10,031 9,565 Exported 5,786 7,440 8,802 8,984 6,086 8,400 9,565 Used by Domestic Industry 2,820 2,t414 1,X467 1,564 1,718 1,631 - Sheanuts Marketed 18,658 91 20,819 14,982 19,784 13,407 15,804 Exported 15,p541 0 14,549 12,128 16,875 9,363 13,p401 Used by Domestic Industry 3,117 91 3,384 2,811 2,909 4,9044 2,1403 Cotton Seed Cotton 7,463 16,297 17,300 32,019 36,248 23,484 28,122 Exported Lint 2,522 5,725 6,232 11,469 12,387 7s545 9,716 Exported Seeds 1,900 4.,400 5,113 12,000 14,o519 8,900 9,937 Sesame Marke ted 1,659 2,635 2,897 2,730 5,200 3,450 3,501 Exported 1,659 2,280 2,897 2,730 5,200 3,450 3,501 Sources Situation Economique de la Haute Volta (1971) and Direction du Commerce. AMIIEX 17 Table 2 UPPZR VOLTA BOWGOURIBA ARCŒULTURAL DEVELOEPHDT PROJECT Number of Livo Anals ExPortO (1969-1971) Cattle Shp oat Me To Ivory Coast 1969 58,438 135,293 39,133 275 1970 59,207 137,437 541,496 2 ,115 1971 50,796 125,422 48,815 671 To Ghana 1969 20,951 13,287 24,351 _ 1970 20,665 9,604 26,639 - 1971 12,d49 15,152 26,699 - To Togo 1969 1 ,521 257 643 - 1970 2,663 1 ,267 1,951 - 1971 1 ,459 2,085 2,725 59 To Dah,oeni 1969 1 ,901 3,368 2,093 1970 585 813 1,250 1 971 251 817 61 6 To lliger 1969 - - - 495 1970 - - - 359 1971 - - - 458 Source: Situation Economique de la Haute Volta, January 1972. A}eQX 1 7 UPPER VOLTA 1EOTTlIIBA AGRICULTURAL DEVELOPMENT PROJECT Meat kroduction (1969-1971) - - - - - 1969- - - - - - - -1970 - 1971- - - - Number Carcass meat Number Tonnage Number Tonnage Tonnage Cattle 65,267 8,485 75,730 9,845 79,359 10,316 Sheep 22,321 290 32,560 423 40,011 520 Goats 75,441 981 110,067 1,,431 137,390 1 ,787 Pigs 8,525 341 10,1422 405 10,602 424 Horses 629 94 664 100 741 111 Donkeys 956 76 910 73 1,464 63 Total 173,275 10,315 230,505 12,315 269,816 13,338 Source: Situation Economique de la Haute Volta, January 1972. MMort of Meat (1 968-1971) (in tons) Cattle Sheep/doats Others Total 1968 1 ,310 220 164 1 ,694 1969 1,01 3 121 1994 1,328 1970 900 118 171 1 ,189 1971 1.,051 133 155 1 ,339 Source: Situation Economique de la Haute Volta, January 1972. UP. VOLTA BOIOURIBA AGRICULTURAL D;VELOAT PPCOJECT bport of Skin and Rides (1969-1971> Catte Sheep Goats Number of Weight Value Number of Weight Value Number of Weight Value jecea Tona '000 CFA pieces Tons '000 CFA pieces Tona '000 CFA 1969 95,800 460 24,576 45,336 26 44,520 159,900 77 19,166 1970 78,722 360 32,'158 67,300 42 8,206 276,085 117 29,260 1971. 62,477 260 23,I456 84,OOO 47 10,024 260,656 156 35,822 Source: Situat4on Ecnemomique de la H&ute Volta. UPPER VOLTA BSUJOUREU A AGRI0¶LTURAL DEVELOPMENT PROJECT CAISSE DE STA3ILIZATION DES PRIX DES PRODUITS (CSPP) ASnnua Price Support to and R-eipts from Export Products Since CSPP' s Establishment 8.1.?.?. Quantity C Pice Net CIaioîtive Exported Producer Prire Support Receipts Operations Resuats Co-modity 1,000 tons CFAF/kg CFAF m. CFAF m. CFAF m. oroundnuts i/ 2/ 1964/65 4.3 26.75--28.00 - - 1965/66 5.8 26.75 -28.00 S2 - 3/ 1966/67 7.4 26.75 -28.00 3.6 - 1967/68 8.8 26.75 -28.00 65.9 1968/69 9.0 26.75 -28.00 13.4 6.4 1969/70 6.1 25.75 -27.00 - 21.0 1970/71 3.4 25.75 -27.00 - 16.8 197i/72 9.6 25.75 -27.00 23.6 38.1 Coum tiotve Support/Receipts (108.9) 82.3 (26.6) Sùeanuts i/ 2/ 1964/65 0.2 7.00 - 7.30 - - 1965/66 15.5 7.00 - 7.30 46.2 - 1966/67 - 7.00 - 7.30 - - _967/68 14.5 7.00 - 7.30 - 60.2 1968/69 12.1 7.00 - 7.30 - 100.2 1969/70 16.9 7.00 - 7.30 - 139.0 1970/71 9.4 7.00 - 7.30 - 50.6 1971/72 13.4 7.00 - 7.30 52.5 - sunulotive Support/Receipts (98.7) 350.0 251.3 brune i/ 2/ 196L/65 2.1 26.75--28.00 - - 1965/66 1.7 26.75 -28.00 - 0.2 '966/67 2.3 26.75 -28.00 - 3.0 1967/68 2.9 26.75 -28.00 - 6.3 1968/69 2.7 26.75 -28.00 - 9.9 1969/70 5.2 26.75 -28.00 - 21.2 1970/71 3.5 26.75 -28.00 - 34.3 1971/72 3.5 26.75 -28.00 - 42.0 Coumletive Support/Receipts - 116.9 116.9 Cotton 5/ 6/ 1964/65 3.0 34 -30 - à/ 7/ 1965/6e 2.5 (1.9) 34 -30 51.2 6.J 7/ 1966/67 5.7 (4.4) 34 -30 73-3 20.1r 7/ 1967/68 6.2 (5.1) 34 -30 22.3 19.9- 7/ 1968/69 11.5(12.0) 32 -28 120.5 39.S 1969/70 12.4(14.5) 32 -28 - 178.1 1970/71 7.5 (8.9) 32 -28 - 197.3 1971/72 9.7 (9.9) 32 -23 - 343.1 Cumulative Sopport/Receipts (267.3) 804.8 537.50 '/ Ouagadoougu prices. 2/ Bobo prices. 3/ Price support paid by Franco. _V Cotton lint; between b:ackets cotton seed. 5/ Price for first quality. 6/ price for second quality. 2/ Profit from 0ott0 . eed. ANNEX17 Table6 Page 1 UPRR VOLTA BOUGOURIBA_AG11ICULTURAL DLOVl%MNT PR)JECT CSP? Statistical Price I. Sheanuts - Crop Year 1972/73 Per Metric Ton ------- CFAF ----- Scandinavia Japan Price Paid to Producer 7,000 7,000 Buyer's Commission 500 500 Handling at Point of Purchase 500 500 Price to Producer Ouagadougou 8,OOO 8,000 Shrinkage (1% of cost to warehouse, Ouagadougou) 129 129 Four months' Interest at 9% on Cost to Warehouse, Ouagadougou 385 385 Bags 596 596 Packing 1,913 1,913 Warehouse Rental, Ouagadougou 150 150 Exporter's Commission 500 500 Overhead Costs in Africa 1,200 1,200 Cost to Warehouse,. Ouagadougou 12,873 12,873 Sealing and Conditioning 130 130 Loading and Trucking 409 409 Forwarding Agents' Charges 371 371 Shipper's Charges 476 476 Rail Transport to Abidjan 2,651 2,651 Statistical Tax 54 54 Cost to Rail Station Abidjan 16,964 16,964 Transport, Handling, Loading in Abidjan 861 861 Warehouse Rental Abidjan 250 250 Waste (1% of fob Cost) 188 188 Port Duties 66 66 Lighterage 478 478 fob Cost Abidjan 18,807 18,807 Interest Charges (0.5% cif cost) 140 1144 Waste (1% of cif cost) 280 289 Financial Charges (0,5% cif cost) 140 144 Overheads (1% of cif cost) 280 289 Removal from Warehouse, Loading, Supervision 200 200 Freight 7,679 8,188 Brokerage (1% Scandinavia, 2% Japan) 280 577 Insurance (0.77%) 217 222 cif Cost Scandinavia/Japan 28,023 28,860 cif in Pounds Sterling at i CFAF 590 L 47 L 49 Adding a Security Margin } 2 L 2 cif Cost Scandinavia/Japan (L) L - L 5 Page 2 II. Groundnuts - Crop Year 1972/73 Per Metric Ton - --CFÀF -- Price Paid to Producer 25.750 Handling at Point of Purchase 250 Buyer's Commission 750 Cost, UnbagRed, on Scale, Ouagadougou 26,750 Waste, dry-cut (1% of cost to warehouse, Ouagadougou) 327 Moving to Store, grading 250 Four months' interest charges at 9% on cost to warehouse Ouagadougou 979 Bags 596 Packing 1,913 Warehouse Rental, Ouagadougou 150 Exporterts Commission 500 Overhead Costs in Africa 1,200 Cost to Warehouse, Ouagadougou 32,665 Sealing and Grading 130 Loading and Trucking 391 Forwarding Agent's Charges 355 Shipper's Charges 456 Rail Transport to Abidjan 3,640 Statistical Tax 5-4 Cost to Rail Station, Abidjan 37,691 Transport, handling, loading in Abidjan 936 Warehouse Rental, Abidjan 400 Waste (1% of fob cost) 399 Port Duties 66 Lighterage 478 fob Cost Abidjan 39,970 Interest Charges 6% for one month 253 Siste (1% of cif Cost) 506 Valuation Charges (expertise) 75 Financial Charges (0.5% on cif value) 253 Removal from Warehouse, loading, supervision 436 Freight to French Port 6,986 Overhead Charges in Europe (1% of cif cost) 506 Impurity Allowance (1.5% of cif cost) 759 Brokerage (0.5% of cif cost) 253 Insurance (1.19% of cost) 602 cif Cost French Port 50599 cif Cost French Port in FF 1 *oi1. Page 3 III. Sesame Crop Year 1972/73 Per %btric Ton '----F--- - Price Paid to Producer 26,750 Handling at Point of Purchase 250 Buyer's Commission 750 Cost, Unbatged, on Scale. Ouagadougou 27j750 Waste (1% of cost to warehouse Ouagadougou) 337 Moving to Store, grading 250 Four months' interest at 9% of cost to varehouse, Ouagadougou 1,9032 Bags 596 Packing 19913 Warehouse Rental, Ouagadougou .150 Exporter 's Commission 500 Overhead Costs in Africa 1,200 - Cost to Warehouse, Ouazadougou 33,707 Sealing and grading 130 Loading and trucking 391 Forwarding agent's chargea 371 Shipper's charges 476 Rail transport to Abidjan 3s640 Statistical tax 54 Cost to Rail Station, AbidJan 38,769 Waste (1% of fob cost) 4°09 Transport, handling, loading in Abidjan 861 Warehouse rental, Abidjan 400 Port duties 66 Lighterage 478 fob Cost Abidjan Interest charges 9% p.a. for 2 months 812 40,983 Waste (2% of cif cost) 1,083 Valuation (expertise) 75 Financial Charges (0.5% of ci! cost) 271 Removal from warehouse, loading, superviaion 200 Freight to an Italian Porb 8,174 Overhead costs in Europe (1% of cif C08t) 541 Impurity allowance (1.5% of cif cost) 812 Brokerage (1% of ci! cost) 541 In3urance (1.19% of cif cost) 644 cif Cost Italy 5A4136 UPPER VOLTA BOUG IBA AGRICULTURAL DEVEIPME PROJECT Production and Prices (1967-1972) 1967 1968 1969 1970 1971 1972 Sorghum4Çlet Production '000 tons 870 970 1,010 860 943 742 Minimuum Producer Price CFAF/kg - - - 12 12 12 ORD Buying Price CFAF/kg 1/ - - - 13 14 14 Maize Production '000 tons 64 66 69 100 55 67 Minimum Producer Price CFAF/kg - - - 13 13 13 ORD Buying Prics CFAe/kg - - - 14 15 16 Rice Production '000 tons 28 29 31 40 34 42 Minimum Producer Price CFAF/kg - - - 19 (17) 19 (17) 19 (17) 2/ ORD Buying Price CFAP/kg - - 21 (19) 22 (19) 22 (20) 1/ in Bougouria ORD. P/ First quality - between brackets second quality. .1!_ UPPER VOLTA BOUGOURIBA AGRICUJLTURAL DEVELOPMENT PROJECT Economic Prices (1974/ton) ----------------EXPORTS -------------- ----------IMPORT SUBSTITUTION--------- Groundnuts Rice CFAF L_int Cotton Seed (shelled) Maize Sorghum (milled) Export Price: Mexican SM 1-1/16" 44o,ooo Export Price From standard (7,000) fob Rangoon cif Liverpool 433,000 31,200 69,oO0 fob USA 30,000 27,500 87,500 Freight and Insurance (10,900) (4,300) (4,100) Freight and Insurance 6,200 6,200 6,200 fob Abidjan 422,100 26,900 85,700 cif Abidjan Transit - stocking Abidjan (2,800) (2,500) (12,000) Transport Abidjan - Upper Volta (6,400) (4,100) Transit and transport Upper Volta 12,000 12,000 12,000 Ex-factory price 412,900 20,300 Ex-warehouse price 73,700 Import price warehouse 48,200 43,600 105,700 Handling and transport (9,900) Warehouse to farmgate (10,500) (10,500) (10,500) Milling (7,700) Farmgate price 63,800 Farmgate 37,700 33,100 87,500 March 14, 1974 Co MONMEX 17 Tabl 97 UPIPR VOLTA BOOURIBA ARICUITURAL DEVLPEJNT PROJ? Lint ?rice ProJeetîons _____-Mexican EM 1-16/6»--- l---- r Volta Cotton Bank Projections Projections ProJectîons at Constant at Constant at Constant 1974 Prices 1974 Prices 1974 Prices ce Liverpool ci Liverpool ex-factory USO/lb OFAF/ton M/ ŒBÂi/ton 2/ 1974/1975 80 440o,00 4i2,90` 1975/1976 70 38,oa 357e 1976/1977 65 3$7,$Q0 330*400 1977/1978 59 324,5O0 297,400 1978/1979 55 302,500 275e4o0 1979A1980 50 275,000 247,900 1980/1981 47 258,500 231,400 IfyI lb 0.o43 kg- $ 1 - CFA 250 2 Per Annexc 18,. Table 8. ANEX 1 7 Table 10 UP:R VOIA BOUGOURIBA AICULTURAL DEVELOWPENT EROJECT Cotton Seed Price Projections Bank Projections Projections Projections at Constant at Constant at Constant 1974 Prices 1974 Prices 1974 Prices cif Europe cif Europe ex-Tactory US$/ m ton CFAF/m ton 1/ CFAF/m ton 2/ 1974/1975 128 31j,200 20,300 197541976 128 31,200 20,300 19764977 128 31,200 20,300 19771978 128 31,200 20,300 19784979 128 31,200 20,300 19794980 125 30,500 19,600 1980/1981 124 30,200 19,300 y. --s$ 1 - OFAF 250. 2/ Per Anmex 18, Table 8. ANNEXI1 7 Table il UPPER VOLTA BOUGO1URIBA AGRICULTURAL DEVELOPHENT PROJECT Groundnut Price Projections (SheUled Groundnuts) Bank Projections Projections Projections at Constant at Constant at Constant 1974 Prices 1974 Prices 1974 Prices cif Europe cif Europe Farmgat;e US$/m ton CFA*/m ton 1/ CFAF/m ton / 1974t 975 359 89,800 63,800 1975 t976 336 83,900 57,900 197641977 313 78,200 52,200 197741978 291 79,800 53,800 197841979 271 72,800 46,800 197941980 248 62,000 36,000 1980/1981 227 56,800 30,800 1/ US$ 1 - CFAF 250. 2/ Per Annex 18, Table 8. ANNREX 1,7 Table 12 11M VOLA BO5O3IIB A13IICUL?TL DEVlO T PROJECT Sor&hm Price Projections Bank Pro jectiona at Constant 1974 Projections at Projections at Prices Constant 1974 Constant 1974 Lob US Port Prices fob US Port Prices Farmgate Us$/mm ton CFAF/um ton 1/ MlF/m ton 2/ 1974i4975 no 27,5oo 33,100 19751976 98 214,50 30,100 19761977 85 21,300 26,900 1977A978 79 19,800 25,400 1978h979 73 18,300 23,900 1979t980 70 17,500 239100 19804981 69 17,300 22,9oo i ff$ 1 *7 250. le For hnex 18, Table 8. ANNE 17 Table 13 UPPER VOLTA BOMOURIBA AGRICULTURAL DEVELOPMENT PROJECT Maize Price Projections Bank Projections Projections at Projections at at Constant at Constant at Constant 1974 Prices 1974 Prices 1974 Prices fob US Port fob US Port Farmgate US$/m ton CFAF/m ton J/ CFAF/m ton ,/ 1974h1975 120 30,000 37,700 1975h1976 103 25,800 33,500 19761977 89 22,300 30,000 19771978 83 20,800 28,500 19784979 77 19»300 27,000 1979/1980 74 18,500 26,200 19804981 73 18,300 26,000 1 US$ 1 - CAF 250. 2/ Per Annex 18, Table 8. AN 1 T3R. VOLTA BQ OIT ARR OLiTtAL DEVl0RNT ROJECT Rice Prioe ProJections Bank Projections Projections Projections at Constant at Constant at Constant 1974 Prices 1974 Prices 1J97b Prices f ob Rar4goon f ob Rangoon Farnuate US$/n ton 1/ OFAF/m ton CFAF/m ton i/ 1974J1975 350 87,500 87,500 1975/.976 305 76,300 76,300 1976/1977 277 69,300 69,300 1977/1978 254 63,500 63,500 1978/1979 242 60,500 60,500 1979/1980 230 57,500 57,500 1980/1981 218 54,500 4e,500 Per A x FTAPT 250. 2/ Per Annex 18, Table 8. uPTER VOLTA BOUGOURIBA AGRICULTURAL IEVELOPtWNT PROJECT mlat Prices (CmAr jer kg) A. 1Wholesale Beer Prices, Carcasa WsiiZht 1969 1973 Small Urban Centers (Puytenga) 88 16o Centers of Moderate Importance (Fada) 97 180 Large Urban Centers (Ouagadougou) 101 190 (Bobo Dioulasso) 107 200 B. Retail Prices (OuaRadouou) Modern Sho, Beef Fillet 600 1o100 Beef Steak 570 1$060 Other 34L0 630 African Market Beef Fillet 450 840 Beef vith bones 150 280 Other 75 140 Table 16 UPP VOLTA BOUGOURIBA AICULTIUAL DEVEDPNT WLOJECT sojw-* ; taT;tTw-EEF PRCEŒ saEMs - in /'Kg - I II III IV F-ozen Chilled Frozen Average LC ' s B7e1e s3 jUZ .lteThc Quarters Beef ExDorts CIF-uS.i Wh'ohns3aie L_ sv-ion CIF Hazn?ourg 1960 .J.A 1.29 0.54 0. 5 '961 "N.A 1.21 0.46 0.43 1962 0.85 -.26 0.45 0.39 1963 0.8,4 1.17 O.1h5 0.41 19614 0.85 1.149 0.65 0.54 1965 0.89 1.59 0.69 0.65 1966 1.04 1.148 0.62 0.63 19967 1.05 1 .46 0.55 0.58 1968 1.09 N.A 0.53 0.62 1969. 1.23 1.55 0.57 0.62 1970 1.31 1.86 0.72 0.71 1971 1.36 2.20 N.A N.A 1 972 12 49 2.39 ..A N.A Note: with 11 = $2.4 1 lb. = 0.145 kg Source: Brazil Agro industries Project - Feb. 1973 800700llr00 00FCLCLTtClAL 00V41100017817 F103042C Fana Oud04ta Cross Incarne Cetrarn Oecenlaoeng Stages 1973 TFredaîrer ---,-- Bfora Pr aiect----- -Tradtional ----- -------- Stp 1---------- ------ ---te 2?__-------- ---------Step 3 --__-__-_ FPares A-e Yield Pr-djeti-r Aras rield P-rductirn Arcs Yld P-rd-atisa Aras Yild P-,d-raio- Aras Yield Frodarann 0400/kg ha ha/ha ~ F kg kg/ha k CR/ha kg CFAP ha ko/ha kg kg/ ha CF.F 1. Modal 1 - Farascra Crawlas Carton Paisce Fraiera (Fspa Si.a 5.2 ha - F-cily lise 5; S W-rk-rz) Trala,aonasl CarC-ls 3n 4.000 700 2,80o1 84,000 4.000.1 700 2,,811 84,000 2,950 700 2,065 61,950 2.875 700 2,013 60,390 2.850 700 1,995 q0,850 -arproaed Oerglah. 30 - - - - - - - - i.550 l.0O0 550 16,500 o0s75 1,05O 604 18,20 0.000 1,100 770 23,100 Oaprored MeIsa 33 - - - - - . a.s5o 1,2a0 h0O 19,800 0.550 1,600 880 29,040 O.tS0 2,000 1,3û0 42,900 Tradllloaal Cotton 48 0.500 4ûO 200 9,60n 0.550 4o 22?o 10.560 - - - - - - - - - - Ta,prcved Caraco 48 - - - - - - - - 0.575 750 431 20,688 0.a70 950 641 30,78û 0.750 1,200 900 43,200 Traditio-al Groaadaat 27. 0.300 450 135 3,645 0.300 450 135 3,645 - - - - laprorcd :rca__daat 27 - - - - - - - 0.300 600 18'3 4,860 0.tOû 800 4û0 12,960 0.600 800 480 12,960 TraRrii,,asI Franc hO 0.400 Z50 10 1,ùoO . t.4uo 250 100 l,OD 0,400 2510 00 1,600 0.400 250 100 1,600 0.400 250 180 1,600 Total 5.28 _ _ 9,845 5.250 - _ 99,805 5.275 - - 125,398 5.075 7 152,878 51950 - _ 183,610 --- O--eFoes Frai…--------- ---------…rediaieasî ---- - - ---- Step 1 -- -------- ----.----------- -ep 2-------_----_________ 17. d00 2 - INn (Fana Sic- .5 a.S - Foaily Si- 10; - kera) Traditrioal Cer-alS 30 4.500 700 3,150 54,500 4.500 iOû 3,150 94,500 3.500 700 2.450 73,500o 3,450 700 2,4L5 72,450 3,350 700 2,345 70,30 Taprved S-argham 30 - - - - - - - - 0.500 1,000 500 15,000 0.500 1,050 525 15,750 o,6oû 1,050 630 1l,900 Icproîod Melon 33 - - - - - - - - 0.500 900 450 14,850 0.55D 1,200 660 21,780 0.550 1,500 825 27,225 Traditicnal Cattca 48 - - - _ 0.500 4Co 200 9,600 7a,praaad Fortaar 48 - - - - - - - - 0.500 750 355 18,000 O.t25 950 594 28,512 0,750 950 /13 34,224 IradbLiaosl Bro-a 16 0.500 050 73 1,2 Reforomig Team Leader |Sub-Sector Chiefs (35) |Extension Workers (175| 1/ From West Volta Cotton Project (Credit 225-UV). 2 Numbers at full project developmenet IBRD 10628 ', URITA i -\' \ / ~~~~~~~~U P P ER V O LTA "MIA A BER\ BLACK VOLTA AGICULTURAL U l-St ",COLA J,sIVRYé/ _J JROAD NETWOR~K r+, j ATLANTIC O C E A N .A .W . _ <^~~~~~~~~~~~~~~~~~~~Koro t 4 -14 ! BI.ACK VOLTA AGRICULTURAL DEVELOPMENT PR0JECT TRACD5 TO Œ IMPROVEO WEST VOLTA COrTON PJcT: TI ROAD TO aB CONSTRUCTED -- - -- TRACKS UNDeR IMWROVEMENT NATIONAL. ROADS OUAHT DISTRICT PIOAOS ÉNÉCA OTHER ROAOS I IRAILFROADSJ - - ItNTEiNNATIONiAL BORDERS ; ( I RiVERS 4k TOUGAN 3r 21i 50 7rr 1010 Yak 1\/ \= _ sw-~~~~ 0,l~~m, ,-'Bn Felawe NOUNA S _ -Gafn 7Fc boudironcrre Ni~ on thur map do nn r Ben we NOUNA Spin rndcsemcnt or acept an j >\Z~~~~~~~~~~~~~~~~Thrb Kana KOUDOUG > lpN~~~~dorola BOROMç Kourom Ouahugy, çtr b,S a abou ( Samandi t / /) ,gHOUNDf,)LvFounzan ~~~~~~~Kankani ( /2 { (1°Samorogouean/ohouan ua~~~~~~~~~~~l BOz < ' )/ 80BO-DIOULASSOts ~ Tankrerjogou UA ç \ ~~~~~Mongué< jS~R>indou siradougou Diasia,a Nav r ~~~~ ' 02i~~~~~~angoloko )Loropon 0S~~~~~~. \ oo ~~~~~~~~~~Latara R a)p Et . t\n °EONA \ I V O R Y . ,C O A S T * /Sa- IIOUAKE IBRD-10629 14e 42f > 1973 OF CI :k'f RI 0 A m V r R tAMEY Kong 1900 Dji bu sso aya Nouna 6m-u 900 CUAGADO D ou K UGOU Soienzoc, 0 a 90, *.w koye ada Ngourma y agas ndé 60-D UL 0Léo e ougou 8LAC-K VOLTA AO NT: PROJET ua N Kompti r roa" 0 Batie kït-,ra ual rai.fall 0 e I." in 0 ers J. 1 1 (D Ft % 0 A UFPER VOLTFA Buk3i BLACK VOLTA AGRICULTURAL DEVELOPMENT LAND USE ZZZ 1Negligible Less thon 6% ~y>j6% to 25% f 25% to 50% Greater thon 50% r__ Reserved Forest Areac .*----- Arecs for Future Resetlerrent Prolect -20- 40% Onchocerciasis -t> More than 40% Onhocerci Approxiote Areos . - E_ Moîin Roods Canton Boundaries riternational Boundories \_ < ~~~~~~~~~~~~~~~~~~~~O ,_- d. .--4 jj f , \/4 o ~ ~ - y/ *UODUOU0 O A S T *-X MALI f ' -N t UPPER X ~ ~ ~ ~ ~ ~~~~1 0 Ro r> V OLTA N A '$ 1< sI B ck VO lTS AgRleulwnl Y , v E . < >. v. O / RA z .4Ô>O LU1 1 1 JC r h i { O 2 «t ro fz~~~~~~' I Sv sf .... 1Z r,.r..y .ij 7Z ~~~~~CO IT , A 9bJi Li2S T ol;e .... ...........ç