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Appraisal Report Small – Scale Irrigation Project (Sip) Republic of Zambia

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Appraisal Report Small – Scale Irrigation Project (Sip) Republic of Zambia AFRICAN DEVELOPMENT FUND ZAM/PAAI/2000/01 LANGUAGE : ENGLISH ORIGINAL : ENGLISH APPRAISAL REPORT SMALL – SCALE IRRIGATION PROJECT (SIP) REPUBLIC OF ZAMBIA COUNTRY DEPARTMENT OCDS SOUTH REGION May 2000 TABLE OF CONTENTS Basic Data Sheet, Currency and Measures, List of Abbreviations, Page List of Tables and Annexes, Project Information Sheet, Summary and Recommendations i-vi Project Matrix 1. ORIGIN AND HISTORY OF THE PROJECT.......................................................... 1 2. THE AGRICULTURAL SECTOR 2.1 Salient Features....................................................................................................... 2 2.2 Sector Structure ...................................................................................................... 2 2.3 Constraints to Agricultural Development.............................................................. 2 2.4 Policy Framework .................................................................................................. 2 2.5 Institutional Framework ......................................................................................... 3 2.6 Land Tenure and Land Use .................................................................................... 4 2.7 Rural Finance ......................................................................................................... 4 2.8 Poverty Aspects ...................................................................................................... 5 2.9 HIV/AIDS Threat to Development........................................................................ 6 3. THE IRRIGATION SUB-SECTOR 3.1 Salient Features....................................................................................................... 6 3.2 Irrigation Policies and Strategies............................................................................ 7 3.3 Irrigation Institutions .............................................................................................. 7 3.4 Experience from Irrigation Programs..................................................................... 8 4. THE PROJECT 4.1 Project Concept and Rationale............................................................................... 9 4.2 Project Area and Beneficiaries............................................................................... 9 4.3 Strategic Context .................................................................................................. 10 4.4 Project Objectives................................................................................................. 11 4.5 Project Description............................................................................................... 11 4.6 Production, Markets and Prices............................................................................ 18 4.7 Environmental Impacts......................................................................................... 18 4.8 Project Costs......................................................................................................... 19 4.9 Sources of Finance and Expenditure Schedule.................................................... 20 5. PROJECT IMPLEMENTATION 5.1 Executing Agency................................................................................................. 21 5.2 Institutional Arrangements................................................................................... 21 5.3 Supervision and Implementation Schedule.......................................................... 22 5.4 Procurement Arrangements.................................................................................. 23 5.5 Disbursement Arrangements................................................................................ 26 5.6 Monitoring and Evaluation .................................................................................. 26 5.7 Financial Reporting and Auditing........................................................................26 5.8 Aid Co-ordination................................................................................................. 27 6. PROJECT SUSTINABILITY AND RISK 6.1 Recurrent Costs .................................................................................................... 27 6.2 Project Sustainability............................................................................................ 28 6.3 Critical Risks and Mitigation Measures............................................................... 29 7. PROJECT BENEFITS 7.1 Financial Analysis ................................................................................................ 29 7.2 Economic Analysis............................................................................................... 29 7.3 Social Impact Analysis......................................................................................... 30 7.4 Sensitivity Analysis .............................................................................................. 30 8. CONCLUSIONS AND RECOMMENDATIONS 8.1 Conclusion............................................................................................................ 31 8.2 Recommendations and Conditions for Loan Approval....................................... 31 This Appraisal Report was prepared by Mr. Sami Z. Moussa, Agricultural Economist (Mission Leader), Mr. I. Samba, Environmentalist, and Mr. B. Sambe, Credit Officer, following their mission to Zambia in March 2000. Additional inquiries on this report should be addressed to Mr. D. Tripathy, Manager, OCDS.2 (Ext. 4162) and Mr. E.K. Shaaeldin, Manager OCDS.1 (Ext. 4135). CURRENCY AND MEASURES Currency Equivalents (As of March 2000) Currency Unit = Zambian Kwacha UA 1 = ZMK 3612.71 ZMK 1 = UA 0.0002768 UA 1 = USD 1.33928 Weights and Measures 1 Metric Ton (mt) = 2,200 lbs. (pounds) 1 Kilogram (kg) = 2.2 lbs. (pounds) 1 Meter (m) = 3.28 ft (feet) 1 Kilometer (km) = 0.62 miles 1 Hectare (ha) = 2.471 acres FISCAL YEAR 1 January - 31 December LIST OF ABBREVIATIONS ADF : African Development Fund AEB : Agricultural Extension Branch of MAFF ASIP : Agricultural Sector Investment Program CUSA : Credit Union and Savings Association DAC : District Agricultural Co-ordinating office DACO : District Agricultural Coordinator DC : District Council ECZ : Environmental Protection Counsel of Zambia EMP : Environmental Management Plan FAO : Food and Agricultural Organization FMU : Financial Management Unit GDP : Gross Domestic Product GRZ : Government of the Republic of Zambia IDA : International Development Agency of the World Bank IFAD : International Fund for Agricultural Development ISTT : In-Service Training Center Trust JICA : Japan International Co-operation Agency MAFF : Ministry of Agriculture Food and Fisheries MBT : Micro-Bankers Trust MEWD : Ministry of Energy and water Development MFI : Micro-Finance Intermediary MOF : Ministry of Finance NACP : National AIDS Control Program NGO : Non-Governmental Organization PACO : Provincial Agricultural Coordinator PC : Project Coordinator PRA : Participatory Rural Appraisal PY : Project Year RIF : Rural Investment Fund SIP : Small-Scale Irrigation Project SIWUP : Small-scale Irrigation and Water Users Program SMS : Subject Matter Specialist of MAFF TAF : Technical Assistance Fund TSB : Technical Services Branch of MAFF UA : Unit of Account UNDP : United Nations Development Program USD : United States Dollar WUA : Water Users’ Association VBs : Village Banks VBSC : Village Bank Supervising Committee ZESCO : Zambia Electricity Supply Corporation ZMK : Zambian Kwacha ZWB : Zambia Water Board LIST OF TABLES Number Title Page 4.1 Summary of Project Cost Estimates by Component .................................................................19 4.2 Summary of Project Cost Estimates by Category of Expenditure .............................................19 4.3 Sources of Finance .....................................................................................................................20 5.1 Summary of Project Expenditure by Component ......................................................................22 5.2 Summary of Expenditure Schedule by Source of Finance.........................................................22 5.3 Procurement Arrangements........................................................................................................25 LIST OF ANNEXES Number Title No. of Pages Annex 1. Map of Zambia with Project Sites ..........................................................................................1 Annex 2. Environmental Summary: Impact Analysis ............................................................................1 Annex 3. Provisional List of Goods and Services...................................................................................1 Annex 4. Tentative Implementation Schedule ........................................................................................1 Annex 5 Calculation of Economic Rater of Return and Its Sensitivity Analysis...................................1 * Detailed Cost Tables and Farm Budget are attached in Volume II AFRICAN DEVELOPMENT FUND 01 B.P. 1387, ABIDJAN 01 Tel: (225) 20-20-44-44 Fax: (225) 20-20-49-02 Telex: 23717 PROJECT INFORMATION SHEET Date: May 2000 The information given hereunder is intended to provide some guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods, works and services for projects approved by the Board of Directors of the Bank Group. More detailed information and guidance
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