Document of fl LO?N The World Bank

FOR OFFICIAL USE ONLY Public Disclosure Authorized

Report No. 2824-ZR

ZAIRE Public Disclosure Authorized

KWANGO-KWILU TECHNICAL ASSISTANCE PROJECr

STAFF APPRAISAL REPORT Public Disclosure Authorized

April 15, 1981 Public Disclosure Authorized

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS 1/

Currency Unit = Zaires (Z) = 100 Makuta (K) US$1.00 =2.9 91.00 US$0.34

WEIGHTS AND MEASURES

Metric British/US Equivalents

1 meter (m) 3.28 feet 1 hectare (ha) 2.47 acres 1 kilometer (km) 2 0.62 mile 1 square kilometer (km ) = 0.39 square mile (sq mi) 1 kilogram (kg) 2.2 pounds (lb) 1 liter (1) 0.26 US gallon (gal) 0.22 British gallon (imp. gal) 1 metric ton (m ton) = 2,205 pounds (lb) 1 long ton 2,240 pounds (lb)

ABBREVIATIONS

ARP - Agricultural Recovery Program (Programme de Relance Agricole) BDD - Bureau Diocesain du Developpement (Diocesan Development Bureau) CODAIK - Compagnie pour le Developpement Agricole Integre du Kwango-Kwilu (Kwango-Kwilu Integrated Agricultural Development Company) FAO - United Nations Food and Agricultural Organization GTZ - Gesellschaft fur Technische Zusammenarbeit (Technical Cooperation Association - Germany) INERA - Institut National des Etudes et des Recherches Agronomiques (National Institute of Agronomic Research and Studies) MPP - Mouvement du Progres Populaire (Popular Progress Movement) ONACER - Gffice National des Cereales (National Cereals Office) ONDE - Office National pour le Developpement de l'Elevage (National Livestock Development Office). ONPV - Office National des Produits Vivriers (National Food Crop Office) PAP - Programme Agricole Protestant (Protestant Agriculture Program) PRONAM - Programme National Manioc (National Manioc Program) PLZ' - Plantations Lever au Zaire PNM - Programme National Mais (National Maize Program) UNDP - United Nations Development Program

FISCAL YEAR

(Government) January 1 - December 31

1/ Exchange rate prevailing on April 15, 1981. FOR OFFICIAL USE ONLY

ZAIRE

KWANGO-KWILU TECHNICAL ASSISTANCE PROJECT

TABLE OF CONTENTS

Page No.

I. BACKGROUND ...... 1

A. Introduction ...... 1 B. Government Services to Agriculture ...... 2 C. Government Strategy for Agricultural Development 3

II. THE KWANGO KWILU SUBREGIONS ...... 5

A. Physical Description ...... 5 B. Agriculture in the Subregions ...... 7

III. THE KWANGO-KWILU INTEGRATED AGRICULTURAL AND LIVESTOCK DEVELOPMENT PROGRAM ...... 10

IV. THE PROJECT ...... 13

A. Objectives and Strategy ...... 13 B. General Description ...... 13 C. The Project Area ...... 14 D. Detailed Technical Features ...... 14 E. Costs and Financing ...... 21 F. Project Financing ...... 22 G. Procurement ...... 23 H. Disbursements ...... 23 I. Accounting, Auditing and Reporting ...... 24

V. PROJECT ORGANIZATION, MANAGEMENT AND IMPLEMENTATION ...... 25

A. Organization and Management ...... 25 B. Project Implementation Schedule ...... 31

VI. BENEFITS, RISKS AND JUSTIFICATION ...... 32

VII. AGREEMENTS REACHED AND RECOMMENDATION ...... 34

This report is based on the findings of an IDA appraisal mission to Zaire in November/December 1978, composed of D. Lallement, L. Pham, Y. Wong- You-Cheong (IDA), and L. Hunt (consultant). A team from Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ) appraised the project jointly with the IDA team.

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. LIST OF TABLES AND SUPPORTING MATERIALS

Page No.

Table 1 Project Costs ...... 37

Table 2 Estimated Financing Plan ...... 38

Table 3 Estimated Schedule of Disbursements ...... 39

Table 4 Indicative Financial Statement ...... 40

Chart 1 Implementation Schedule ...... 41

Chart 2 Kwango-Kwilu Integrated Agricultural and Livestock Development Company - Organization Chart ...... 42

Chart 3 Kwango-Kwilu Integrated Agricultural and Livestock Development Company - Organization Chart at Full Development ...... 43

List of Materials Available in Implementation Volume .44-45

Map IBRD 14469 ZAIRE

YWANGO-KWILU TECHNICAL ASSISTANCE PROJECT

I. BACKGROUND

A. Introduction

1.01 In November, 1978, the Government of Zaire requested IDA to finance an integrated agricultural and livestock development project in the Kwango- Kwilu area of Bandundu Region. Two preparation reports had previously been submitted; one report contained a proposal for an integrated crop, livestock and rural development program in the Kwango-Kwilu sub-regions, the other a proposal for a cattle ranching program, also in Kwango-Kwilu. However, the two programs had not been consolidated nor had they been presented as a single, coherent project prior to appraisal.

1.02 The present report is the result of a preparation/appraisal mission which visited Zaire in November/December 1978. This was a joint mission by IDA and the Government of the Federal Republic of Germany (FRG) composed of the following members: D. Lallement, L. Pham and Y. Wong-You-Cheong, IDA; L. Hunt, IDA consultant; R. Rahe, Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ), and A. Schoen and W. Warmbier, GTZ consultants. A post-appraisal mission composed of D. Lallement, IDA, and M. Hemrich, FRG, (part-time) visited Zaire in early October 1979. Further technical dis- cussions took place in Washington between IDA and GTZ in December, 1979, and between IDA, GTZ, and a delegation of the Zairian Government in April 1980.

1.03 Based on its field work, the appraisal mission concluded that there is undoubtedly good potential for a successful integrated agricultural and livestock development program in the Kwango and Kwilu sub-regions (para 3.01). The mission concluded, however, that a broad-based, comprehensive project would be premature under present conditions and unlikely to succeed. Because of the urgent need to revitalize the agricultural sector in Zaire and to support the efforts of both the public and private sectors, an initial technical assistance Project with an implementation period of approximately two years was proposed, to develop and subsequently test the capacity of the institutions required for the implementation of a more comprehensive develop- ment effort in the region. The Government of Zaire has reviewed this recom- mendation fully and supports the proposed approach.

1.04 The proposed Project would be the seventh IDA-supported agricultural Project for Zaire. The First Livestock Development Project (Credit 398-ZR) was approved in 1973 (US$8.0 million), the Cotton Rehabilitation Project (Credit 660-ZR) in 1976 (US$8.0 million), and the Ituri Livestock Development Project (Credit 697-ZR) in 1977 (US$8.5 million). These three projects have encountered serious implementation difficulties, due to weak institutional capacity and delays in provision of counterpart funds, but performance has now substantially improved. The Oil Palm Project (Credit 796-ZR) was approved in 1978 (US$9.0 million) but only became effective in December 1980 because of difficulties in reaching agreement with the companies and complicated co-financing arrangements; nevertheless, project implementation is well advanced. A Smallholder Maize Project (Credit 1040-ZR) was approved in June 1980 (US$11.0 million) and a Sugar Project (Credit 1080-ZR) was approved in December 1980 (US$26.4 million/ SDR 20.2); a Second Cotton Rehabilitation Project has been appraised and should be presented to the Executive Directors in FY 1982.

B. Government Services to Agriculture

Administrative Services

1.05 In Zaire, administrative Services are organized by region, sub- region, zone and, finally, by "collectivite." Regions are headed by Governors, and subregions and zones by commissioners who are politico-administrative officials appointed by the President of the Republic and who report to the Department of the Interior. "Collectivites" are governed by a "chef de collectivite" who is often the traditional chief as well as a government official. Technical Departments of the Central Government are represented at the regional, subregional and zonal levels. Their representatives report to the respective commissioners but depend on their Departments for technical support and for their salaries. These administrative services are severely constrained by inadequate financial means and logistical support, and by the relatively low technical capacity of their staff.

Technical Services

1.06 The Department of Agriculture and Rural Development is respon- sible for formulating agricultural policy, providing extension services and assisting the parastatal bodies under its control such as the National Institute for Agricultural Studies and Research (INERA) and the National Livestock Development Office (ONDE) (para 1.07). For about a year, in 1978, the Department of Agriculture and the Department of Rural Development existed separately but they were merged into one Department with two State Secretaries, one for Agriculture, and one for Rural Development, in January 1979. To date the respective responsibilities of each State Secretariat are ill-defined and coordination between them is poor. In the past, the Depart- ment of Agriculture has had very limited financial resources and staff capability. In recent years, it has developed two crop specific national programs with foreign assistance, the National Maize Program (PNM) and the National Manioc Program (PRONAM), whose objectives are to identify high yielding and disease resistant seed and plant varieties for Zaire.

1.07 A number of parastatals are active in the agricultural sector. The National Livestock Development Office (ONDE) is a Government enterprise created under Ordinance-Law No. 73-029 of August 30, 1973 as the implementa- tion agency for the IDA-financed First Livestock Development Project (Credit 398-ZR). Initially responsible solely for the management of the three project ranches in Shaba, ONDE subsequently took charge of several other ranches and livestock related operations during the nationalization and radicalization period of 1974-77. ONDE is still a partner in many livestock enterprises which were retroceded to their former owners following the 1977 denationaliza- tion period. At present, ONDE operates three ranches in Shaba (under Credit 398-ZR), two abattoirs in Ituri, a small cattle ranch in Kwango, and a small cattle farm and a poultry farm in Bas-Zaire. ONDE's performance has been limited by its managerial and technical capacity which are still being developed, and the very unstable political and economic environment in which it has had to operate.

1.08 The National Food Crop Office (ONPV) is a Government enterprise which replaced the former National Grain Board (ONACER) in 1978, assuming its responsibility for facilitating the marketing of food crops. ONPV is respon- sible for channeling imported commodities to consumer centers suffering from food shortages. It is also responsible for buying up food crops in the farming regions and for subsequently selling them to consumers at official prices. In theory, this Government agency should be self-supporting. In practice, however, like the former ONACER, ONPV is encountering serious problems as a result of its inability to compete with private tradesmen offering producers two to three times the official minimum price. Its operations on the market are, therefore, extremely limited.

C. Government Strategy for Agricultural Development

Background

1.09 In spite of the importance of the agricultural sector for the Zairian economy and for the Zairian people, overall agricultural production has declined considerably since Independence. The Government's neglect of the agricultural sector is evidenced by the low shares of the investment and operating budgets it has received. With the continuous deterioration of the Zairian economy since 1975, the international community, which holds most of Zaire's external debt, pressed the Government to take economic recovery measures. These pressures resulted in the preparation of an agricultural recovery program and an investment program. In addition, the Government has initiated other measures to improve the performance of the agricultural sector, such as the creation of economic recovery funds (para 1.12).

The Agricultural Recovery Program (Programme de Relance Agricole)

1.10 The Agricultural Recovery Program (ARP) was prepared as part of the Mobutu Plan, which was to define the general objectives for Zaire's economic recovery. ARP presented the Government's assessment of the situ- ation and its proposals for solving the major problems, including identifica- tion of the key investments necessary to stimulate agricultural production. It was discussed by the Agricultural Working Group set up in 1977 following the 1976 Consultative Group meeting. In this context, the Zaire Government and the representatives of various donors agreed on the major current bottle- necks for agricultural development and on priority investments which could be identified. These included: (i) restoring transportation links in the rural areas; (ii) raising productivity on small farms; (iii) applying simple and low cost agricultural technologies; (iv) reviewing pricing and marketing policies and marketing institutions; (v) involving the private sector in the recovery program; and, (vi) strengthening agricultural training and extension. 1.11 Since the last meeting of the Agricultural Working Group in March 1978, IDA has continued the sectoral dialogue with the Government in the context of the preparation of the investment program for 1979 - 1981, during project supervision and preparation missions, and recently during discussions held in Zaire of an Agricultural Sector Memorandum prepared by IDA and accompanied by a Project Implementation Review. In the latest draft of the investment program, the Government proposes to allocate about 4% of total government expenditures for direct agricultural activities.

Development Agreements and Economic Recovery Funds

1.12 The Government has recently acknowledged its limited capacity to revive the agricultural sector and has called more and more on the private sector to intervene directly. To stimulate participation by the private sector in the national economic recovery effort, the Government established a system of economic recovery funds in 1978. The system was institutionalized by law 79-002 of February 7, 1979. Under the law, industrial and commer- cial enterprises are to participate in the national effort for economic recovery by signing Development Agreements with the national Executive Council, whereby they are authorized to establish an economic recovery fund from the collection of a special charge added to the official sales price which must not exceed 10% of the retail value of each unit produced or sold. The proceeds are to be deposited once a month in an account with the Bank of Zaire which is to be managed by the enterprise on behalf of the Government; the enterprise is to keep separate accounts for this fund. The fund is to be used to finance development projects with priority given to import substitution projects for enterprises engaged in a productive activity. When operating in the interior of the country, the enterprises can use this fund to finance the maintenance and/or construction of transport and social infrastructure (e.g., roads, schools, dispensaries). The enterprises can implement such development projects on their own or sub-contract their implementation to other companies and to private or public organizations under implementation agreements.

1.13 Under Departmental Ordinance No. BCE/ENI 091/78 of October 25, 1978 1/ a supervisory committee is responsible for approving all the projects to be financed by an enterprise through an economic recovery fund, and for monitoring their performance. It is composed of ten members of whom two represent the enterprise, six are from the Departments of Finances, Planning, Portfolio, National Economy and Industry, and Agriculture and Rural Development, and two are commissioners from the General Accounting Office. The Department of National Economy and Industry has in practice had principal responsibility for control and coordination of private enterprise activities under Development Agreements.

1.14 To date, the experience with Development Agreements has been mixed, although on the whole it has proved positive. Several companies have signed Development Agreements with the national Executive Council and have expressed

1/ The ordinance has not been revised since the 1978 Ordinance of July 14, 1978 on Development Agreements was replaced by Law 79-002 mentioned above. - 5 - their satisfaction with the system; they have embarked on a wide range of activities including direct cultivation of maize and other crops, extension work with farmers, and development of basic infrastructure. Other companies have expressed some dissatisfaction with the system and its management. Notably, they have argued that controls on use of funds are too tight, and they are concerned about keeping the level of autonomy which they have in practice enjoyed in managing these funds. The law is not yet uniformly applied by all companies, and the success and quality of management of the projects largely depend on the individual companies establishing Economic Recovery Funds.

Other Measures

1.15 Several other measures introduced in 1978 to revitalize the economy are encouraging. Law No. 008 adopted in January 1978 invested the regions with unprecedented autonomy and responsibility for their own economic develop- ment. A network of Regional Economic Development Councils is currently being set up to serve as a consultative apparatus for the economic development of the different regions and subregions and to assume responsibility for coordinating and monitoring investment and development projects and programs.

II. THE KWANGO KWILU SUBREGIONS

A. Physical Description

General

2.01 The Kwango subregion is located in the southern and eastern corners of the Bandundu region. It is divided into five administrative zones: Kenge, Popokabaka, Kasongo-Lunda, Feshi and Kahemba. The Kwilu subregion, lying to the northeast of the Kwango sub-region and bordered by the Kasai River on the north, also contains five administrative zones: Bagata, Masi-Manimba, Bulungu, Idiofa and Gungu (Map IBR9 14469). Together, the Kwango and Kwilu sub-regions cover about 165,000 km . The population of Kwango is estimated at about 820,000 and that of Kwilu at about 1,740,000. Kikwit is the largest town of the area, with a population of about 130,000. Migration of young people away from the rural areas to urban centers such as Kikwit and Kinshasa is very marked. The area2around Kikwit already has a population density of nearly 50 inhabitants/km . The relatively high population density throughout the area is considered a positive factor in the development of these sub- regions, as ample labor is available to support development programs. Although the population of the Kwango-Kwilu has a history of economic enter- prise and adaptability, it is presently among the poorest regions of Zaire, primarily because the region was kept in relative isolation by the Central Government following the Mulelist Rebellion in 1964, which aimed at estab- lishing an autonomous regional Government.

Climate, Topography and Natural Resources

2.02 Precipitation averages 1,600 mm per year, with two distinct rainy seasons from March to April and from October to November. The main dry - 6 - season runs from May to August, with another shorter dry season from January to February of each year. There tends to be a decline in precipitation from south to north with the decline in altitude. The evaporation rate is approx- imately 2-5 mm per day. There is a soil moisture deficit during the dry season when crops with short growing cycles are not cultivated. While total precipitation is not a constraint during the wet season, the resulting moisture is not necessarily retained by the area's sandy soils. Mean temperatures vary only by +2 C approximately, between 23 and 25 degrees Centigrade.

2.03 Topography. As a whole, the subregions can be described as a narrow plateau of moderate altitude sloping relatively steeply down to a deep valley. The savannah-covered plateau which ranges from 800 to 1,200 m above sea level is crisscrossed in places by steep, deep valleys cutting into the Kwilu highlands in a south-north direction. Idiofa zone, where the Kwango and Kwilu plateaux meet, is slightly lower in altitude. Both subregions have a well-developed river system; the Kwilu river is navigable as far as Kikwit.

2.04 Generally, the natural resources of the Kwango and Kwilu subregions are suitable for crop and livestock development but soil conservation measures are urgently needed to prevent exhaustion of these resources through haphazard land use. The soils of the area can be divided into: (a) the sandy soils of the high plateau and upper slopes; and (b) the colluvial and alluvial soils of the lower slopes and valley floor (with higher clay content). The soils of group (a) are poor; they have low water retention capacity and are relatively unstable with weak cohesive force and high erodibility. They are also poor in the organic matter and nutrients needed for plant growth. Soils of group (b) are relatively richer as a result of their higher clay content. However, both the plateau and valley soils have only small reserves of nutrients and could not support intensive farming systems without the application of fertilizer.

Road System and Transportation

2.05 The Kwango and Kwilu subregions are linked to Kinshasa and Bandundu by a relatively good road network and river system. There exists, therefore, a virtually unlimited and immediately accessible market for staple foodstuffs produced in the subregions. However, the network of access roads within the area has rarely been maintained for the last 10 or 20 years and is in very poor condition. Certain dirt roads in Kwilu are totally impassable during the rainy season, while the sandy tracks of Kwango are impassable during the dry season. Road maintenance has improved slightly over the past two years as a result of the creation of independent road crews operating out of the Office des Routes. These crews, however, are few in number and often lack the necessary equipment as a result of the limited budget assigned to the Office des Routes. Certain access roads are repaired by local villagers using the most rudimentary materials and repair methods. Others are kept up by missions or private contractors. There is practically no public transporta- tion except for the boats navigating the area-s major rivers. Most people travel either by foot or private vehicle. Merchants with trucks or pick-ups often pick up passengers along the major arteries of the region. -7-

B. Agriculture in the Subregions

Farm Size and Land Tenure

2.06 Two major categories of farmers are presently distinguished by the regional agricultural extension services, the small scale farmers, termed "paysan", and the medium-scale farmers, termed "fermier." The size of the field cultivated by the small-scale farmer depends on how large an area he can cultivate using family labor. There are no accurate statistics on the average size of such holdings. The family may keep a few goats and chickens and sometimes even a few hogs. Medium-scale farmers cultivate much larger * tracts of land, emn½nying day la' rers during certain neqk seasons. Generally, the medium-scale farmer will raise cattle in audition to the smi,ler stock (goats and chickens) kept for family subsistence.

2.07 All land is Government-owned but, even today, it is still managed by traditional communities at the "collectivite" level. Small farmers cul- tivate farm land attributed to them by the "collectivite" authorities who also allocate communal grazing lands. Medium-scale farmers receive their lands by applying directly to the Government authorities. They are required to support their application by submitting a development plan for the land in question. Government officials ensure that lands are unoccupied and make the necessary arrangements with the "collectivite" authorities who, in turn, base their decisions on traditional practice. While this system has made it possible to develop a certain number of medium-scale farms, it imposes significant constraints. Notably, many young people are discouraged from farming because their maternal uncle has the right, traditionally, to take possession of their lands at any time.

Markets and Prices

2.08 Agricultural produce exported from the Project area is taken to market mostly by truck and to a limited extent by river boat. There is no established schedule of rural markets. There are a number of traditional or informal-sector markets operating in rural areas, the largest of which is in Bulungu, but most produce is consumed locally. From time to time, tradesmen from Kinshasa will travel to markets in the interior to obtain supplies, but most deal directly with the villages and then only with the most accessible ones.

2.09 In theory, the price of food and other agricultural products is established and controlled by the Government. However, shortages of food in Kinshasa have made any attempt at effective control virtually impossible. Thus, the selling prices of staple food crops such as manioc, maize and rice are actually two to three times higher than their official prices. The ratio between consumer prices in Kinshasa and farm-gate prices in Kwango-Kwilu is nearly 3.5:1, reflecting the high cost involved in transporting the goods to market as a result of the numerous risks involved, the cost of trucks and the shortage of spare parts and fuel. Food shortages in the Zairian capital and the fact that goods are resold many times by intermediaries because trade - 8 - has become one of the few activities that can provide a livelihood in the urban areas only exacerbate this situation. Most commercial activities are typically short-term operations from which the merchant tries to earn as much money as he can in the shortest possible time. Present conditions, however, make business operations far from efficient; trucks are in poor condition due to the shortage of spare parts and they have to make the long haul from Kinshasa to Kikwit empty since no consumer goods are currently available in Kinshasa for resale in the interior.

Government Services

2.10 Agricultural extension and animal production and health services operating in the subregions are generally very weak. With a total of about 70 Al and A2 agronomists and veterinarians and about 295 lower level (A3) agricultural staff (the latter working exclusively at the village level) staff numbers are adequate. However, training programs for staff members at higher and medium technical (levels Al and A2) are far more theoretical than practical and there is a definite lack of supervision and logistical support. Formal training programs available for A3-level staff are negligible and more often than not these workers find themselves entirely without the means to accomplish their tasks. Their work consists primarily of preparing agricul- tural statistics for administrative reports despite the fact that they have no methodology and no resources through which to obtain valid figures. Their work is often used for taxation purposes (legal or otherwise) and this generates hostility among the local population. Agricultural research is practically nonexistant. The research station at Kiyaka has very limited activities due to lack of funds and qualified staff.

Other Services

2.11 Bilateral and Multilateral Agencies: The Chinese Agricultural Mission (MAC) operates a small rice-growing complex in Kikwit specializing in seed production and manages an extension program to promote rice production, primarily in Bulungu zone. Their centers train both extension workers and farmers. The two main varieties of rice used are R66 (rainfed) and IR8 (irrigated). The Peace Corps has run a fisheries program for several years. To date, volunteers working as extension agents under the program have trained some 20 or 30 area farmers. Plans for 1979/80 are to expand the scope of the program through the creation of a network of small fish breeding centers, an extension service devoted exclusively to fish farming and a research center in Gandajika, in Eastern Kasai, which will also be used as a training center for extension workers. A joint UNDP/FAO rural development project has recently been initiated. The objective of this project is to develop a long-term program for the development of rural services in the A region, and it should provide a useful complement to the proposed Project.

2.12 Private Organizations. There are several non-profit, private organizations established in the Project area. Most are Catholic or Pro- testant missions or foreign volunteer organizations. The major operations within the area are managed by: (i) the Diocesan Development Bureau (BDD), in Bulungu zone; the BDD has several stockfarms through which it attempts to - 9 -

promote cattle raising, primarily through a system of metayage. 1/ It also runs several schools, including the centers at the Vanga and Lusekele missions which train extension workers and local farmers. The BDD receives most of its funds from organizations such as MISEREOR (Germany). (ii) The Protestant Agricultural Program (PAP) manages a stockfarm in Kibolo, near Kikwit, from which it has mounted a program to develop cattle and poultry raising through the creation of cooperatives, selling stock on credit. The hog raising operation had to be abandoned due to a shortage of feed. 'he PAP also operates a feed mill, an oil press and a chicken farm, all in Kikwi. The mill is operating at only 10% of its capacity and the finished product is of relatively poor quality due to a shortage of raw materials. (iii) The Popular Progress Movement (MPP), in the Diocese of Idiofa, runs certain operations extending into both Bulungu and Gungu zones. Since 1965, the MPP has been organizing differenL types of training pr_gris opera,lng ouF ^f cer- 'c ~inlaba (farming and fisheries), Mbeo (stock-raising) and Idiofa (home economics). These centers also offer certain marketing services (primarily for coffee and rice) and process agricultural produce. The MPP has begun construction of an agro-industrial complex which will include a piggery, feed mill, silos, etc. It is funded not only by the Diocese of Idiofa but also by organizations such as MISEREOR and OXFAM which has also published some high-quality exten- sion materials.

2.13 Private, Public and Mixed Capital Corporations. Before Independence, it was primarily the country's large private enterprises which had developed the resources of Bandundu region. Since the major activities were palm oil production and, more recently, coffee production and stock raising, a series of plantations and factories, supported by an extensive road network, was developed. However, many of these undertakings and much of the infrastructure were damaged, destroyed or abandonned either during the 1964 rebellion or between 1973 and 1975 as a result of nationalization measures.

2.14 PLZ Bandundu. Of the companies still operating in the Kwango-Kwilu area, PLZ Bandundu, the southern affiliate of Plantations Lever du Zaire, is by far the largest operation. PLZ Bandundu is currently a mixed capital corporation with 42% of its stock held by the Government and 58% by UNILEVER; the Government share is being paid-up from annual corporate dividends. PLZ still manages some oil palm plantations in the Kwango-Kwilu region and con- tinues to process fruit from natural palm groves, harvested by the local population; however, the productivity of the palm-oil industry continues to decline. Production from natural palm groves, which used to supply three quarters of the raw material, has been declining year after year while the production of food crops such as maize and manioc has become increasingly profitable for the peasant farmer. The productivity of the Bandundu planta- tions was never adequate to warrant significant investments. PLZ-Bandundu has already closed down several unprofitable oil mills as well as some of its other activities like its agricultural school at Lusanga. In 1978, PLZ began

1/ Under this system the farmer receives an in-calf heifer and repays with two male calves or one female calf. - 10 - converting certain plantations for growing food crops. Some 270 ha of land were cleared and planted in 1978/79, primarily with maize; trials of soybean and jute have also been undertaken. The goal of PLZ-Bandundu is not only to create jobs for its workers, who would otherwise be left unemployed as a result of the slowdown in palm oil production, but also to assist traditional farmers around the plantations by providing technical support in the form of extension services, seeds and other inputs, and marketing services for their harvests. This conversion program is being implemented following a trial-and- error approach. Funding for the program is mostly being provided from the breweries (BRALIMA and UNIBRA) economic recovery funds under agreements signed with PLZ (para 1.12). In return for their funds, PLZ has contracted to the two breweries its entire maize harvest. The selling price of maize is fixed and is adjusted each year on the basis of a weighted index (55% for labor costs and 45% for miscellaneous production costs). The basic selling price leaves PLZ with a profit margin of 28% over costs. The two major constraints to program expansion are the shortage of qualified managerial staff and the lack of foreign exchange to purchase or overhaul its equipment and to import seeds and fertilizer.

2.15 Parastatals. In 1975, ONDE (para 1.07) was given responsibility for operating the Gungu-Katuta ranch in Gungu zone. The Gungu-Katuta ranch, covering 3,500 hectares, had nearly 900 head of cattle at the time of appraisal, primarily Ndama, with a few head of Afrikander. This ranch seems better managed than ONDE's Shaba ranches but certain pastures have been overgrazed and badly damaged; it is a full cycle (breeding to finishing) operation. Most of the infrastructure is in good condition. The Government hopes to improve the ranch, developing new areas extending as far as Kahemba (see Map 14469), the former PLZ stockraising concession which was totally destroyed during the rebellion. ONPV (para 1.08) has an office in Kikwit but its activities have reportedly been extremely limited due to lack of adequate working capital, and transport and storage facilities.

III. THE KWANGO-KWILU INTEGRATED AGRICULTURE AND LIVESTOCK DEVELOPMENT PROGRAM

3.01 During the appraisal and post-appraisal field work and discussions, it was agreed with the Government that it was imperative to define a long-term approach for the agricultural, rural, and economic development of the Kwango- Kwilu subregions. As a result, a long-term integrated agricultural and livestock development program was defined, in the context of which several projects could be ultimately designed. The Kwango-Kwilu integrated agriculture and livestock development program would have four main objectives: to develop the agricultural potential of the areas; to improve the standard of living of the population of the sub-regions; to increase food production in Zaire and to improve the supply of food produce to its main consumption market, Kinshasa; and to save the country-s scarce foreign exchange resources by replacing imports of staple food with local production. The program would be implemented over a 15-20 year period, of which the proposed two-year Technical Assistance - 11 -

Project would be the experimental phase. If successful, the Technical Assis- tance Project would be followed by several four-to-five year broad-based projects. The program would be initiated in the administrative zones of Bulungu, Idiofa, Masi-Manimba, and part of Gungu in the Kwilu subregion, and in the administrative zone of Feshi in the Kwango Sub-region. A development authority would be established to implement the program (para 3.04).

3.02 The program was essentially conceived as a production-oriented pro- gram on the assumption that improvements in the standard of living of the population could only be brought about by increasing their incomes, and hence their means for generating such income. Another consideration was that, given the extremely limited managerial capability available locally, the program concept should remain simple. However, the program should be coordinated with other develonment efforts i- the sub-regions, some of which aim mainly at improving the deiivery and availability OL social seL.ices, _^h as the UNDP/FAO project (para 2.11). Initially, the program would be limited to crop, livestock, and aquaculture development in Kwilu, and extensive cattle ranching in Kwango. If appropriate, the scope of the program could be widened at a later stage to include other aspects of rural development in addition to production.

3.03 To achieve the objectives stated above (para 3.01) the program would be composed of the following major components:

3.04 (a) The Establishment of a Development Authority for the Kwango- Kwilu sub-regions. The national Executive Council would designate the authority as responsible for planning the agricultural development of the sub-regions and defining farming systems suitable for the sub-regions; managing the sub-regional extension services; and developing adequate support services to farmers, namely marketing, credit, and possibly farming and processing machinery. This development authority--the Kwango-Kwilu Integrated Agricul- ture Development Company (CODAIK)--would be a mixed-capital company, with the majority of shares held by the Government. Shareholders other than the Government could be private or public companies or, at a later stage, farmers' associations. The initial participants and capital structure would be determined during the establishment phase of the technical assistance project (para 5.12). The Government's contribution to the capital of the Company would be financed by budgetary allocations, agricultural funds ("fonds agricoles"), and economic recovery funds (para 1.12). CODAIK would be established by Government decree and would be placed under the joint super- vision of the Department of Agriculture and Rural Development and of the Department of Portfolio, as required by Zairian administrative regulations for mixed capital companies or parastatals operating in the agricultural sector. Local authorities would participate in program implementation through the regional and zonal Economic Development Councils (para 1.15). The structure of the company would be defined in accordance with the stipulations of Law 78.002 of January 6, 1978 on public companies. At full development, it would include a board of directors, a general manager, a management committee, five technical departments (planning, training and extension, marketing and supplies, mechanical services, and finance and administration) and zonal offices (see Chart 3 and paras 5.04-5.08). - 12 -

3.05 (b) The Development of a Training and Extension Program with two major objectives: to establish an efficient and competent extension service and to define and deliver farming systems adapted to the local conditions. The target for full development would be to have one well-staffed multi-purpose (crop, livestock, and aquaculture) extension center in each "collectivite," supported by sectoral extension centers grouping several collectivites (two or three sectors per zone), and by the zonal office and the technical departments of the Development Authority (CODAIK). The training program would involve the upgrading and refresher training of existing extension staff, the training of new staff, and the development of a permanent on-the-job training system for all extension staff working for CODAIK. The extension program would consist of promoting improved farming methods, cattle and goat husbandry, and aquaculture. The technical package would consist of simple and well- known agriculture techniques, likely to be easily adopted by the local popu- lation. The present stratification of the production system dictated by the topography and the nature of soils would be respected, i.e. mainly cropping and fish farming in the valley bottoms, cropping on lower slopes, and animal husbandry on the plateaux. However, the program would aim to intensify the present production system through the improvement of land clearing and preparation methods, the use of better plant materials, the introduction of soil conservation methods (reforestation on upper slopes and planting of anti-erosion hedges with fodder grasses) and the integration of animal husbandry into the farming system. Under the program, a range of extension facilities would be built, primarily multipurpose extension centers at the "collectivite" level (para 4.24).

3.06 (c) The Development of Cattle Ranches in the Kwango Savannahs. The small ONDE cattle ranch of Gungu-Katuta would initially be developed into a breeding ranch for sale of breeding stock to the traditional sector farmers. The ranch would be progressively extended towards Kahemba (see Map 14469) and its vocation changed into a full-cycle operation with breeding carried out at Kabuba and steer finishing at Gungu-Katuta. Other ranches could be estab- lished in the savannahs towards Feshi provided that the Gungu-Katuta ranch is operating satisfactorily and that competent staff are available.

3.07 (d) The Development of Support Services which would include (i) agricultural planning and adaptive research services, including the collection of statistical data and the monitoring of farm developments in order to define progressively the inputs, crops, fish species and breeds best adapted to the area; (ii) marketing services for crops and livestock managed by CODAIK; its intervention would consist of first reestablishing regular peri- odic rural markets, and publishing minimum producer prices as appropriate, and second operating as a residual buyer of agricultural produce under certain circumstances; (iii) credit services managed initially by CODAIK, possibly, in the long-run, in coordination with SOFIDE and commercial banks represented locally; and (iv) mechanical services (chiefly ploughing), managed initially by CODAIK, with possible subcontracting to other institu- tions such as missions or, in the long-run, to farmers' associations. - 13 -

IV. THE PROJECT

A. Objectives and Strategy

4.01 The principal objective of the proposed Project would be to estab- lish and develop an institutional and managerial environment in which the integrated program for the long term agricultural development of the Kwango and Kwilu subregions (paras 3.01-07) could operate. The Project concept is that of a relatively small pilot effort designed to plan and test a technical package and an implementation strategy applicable for possible future projects within the broad development program for the Kwango-Kwilu subregions. The institutional arrangements tested should also provide experience that would assist in the design of projects elsewhere in Zaire. The Project would also include a component designed to reinforce the macro-economic planning capability of the Ministry of Planning.

4.02 The Project would be executed in two phases. The establishment phase (paras 5.12-13) would extend over a period of about four months and during that time the implementing agency, CODAIK (para 3.04), would be established with a duly appointed Board of Directors and general manager. The implementa- tion phase (para 5.14) would cover about 20 months and would be devoted to start-up activities. During this phase, the company-s organization and operations would be tested, and the activities that might be undertaken in a subsequent broad-based project would be implemented on a relatively small scale.

B. General Description

4.03 The proposed Technical Assistance Project would include the fol- lowing main components:

(i) establishment of a development authority for the Kwango-Kwilu subregions;

(ii) technical assistance for Project design and management;

(iii) development of a training and extension system for the Project Area;

(iv) development of a cattle-breeding ranch;

(v) establishment of supporting services and infrastructure for marketing and agricultural credit;

(vi) applied research and studies; and

(vii) technical assistance for the Ministry of Planning. - 14 -

4.04 The Project establishment phase would be implemented by the Depart- ment of Agriculture and Rural Development assisted by an interdisciplinary team of specialists; the Project implementation phase would be executed by the Kwango-Kwilu Integrated Agriculture Development Company (CODAIK) (para 3.04) in accordance with detailed annual work plans (para 5.09).

C. The Project Area

4.05 The proposed Technical Assistance Project would be implemented in the administrative zones of Bulungu, Idiofa, Masi-Manimba and in the part of the Gungu zone where the Gungu-Katuta ranch is located in the Kwilu sub-region and in the administrative zone of Feshi in the Kwango sub-region (para. 2.01). The administrative capital of the Project area is Kikwit (Map IBRD 14469). Bulungu, Idiofa, Masi-Manimba, and Feshi have surface areas of about 12,000 kn2, 20,000 km2, 14,000 km2, and 25,000 km2, respectively. As of 1976 (latest available figures) population in the four zones was estimated at 345,000 i5habitants (29 people per km ) in Bulungu; 445,200 inhabitants (23 people/km ) in Idiofa; 383,000 inhabitants (27 people/km ) in Masi-Manimba; and 140,000 inhabitants (6 people/km ) in Feshi. The physical conditions (climate, topography, etc.) of the Project area are similar to those described in paras 2.01-2.04 for the Kwilu and Kwango sub-regions as a whole.

D. Detailed Technical Features

Establishment of the Development Authority for the Sub-Regions

4.06 The Kwango-Kwilu Integrated Agriculture Development Company (CODAIK) which would be responsible for the implementation of the proposed development program (paras 3.01-3.07) would be established under the proposed Technical Assistance Project. This would include:

4.07 (a) The administrative, legal and financial preparatory work prior to the incorporation of the company, namely (i) the design of the corporate act and the company's statutes; (ii) the identification of the partners in the company; and (iii) the preparation of its financial structure. All these activities would be carried out during the Project establishment phase (paras 5.12-13). The Government, through the Department of National Economy and Industry, has approved the use of Economic Recovery Funds administered by BRALIMA for the initial financing of CODAIK development activities. It would be a condition of credit effectiveness that the company had been established, its statutes approved by IDA, and the general manager appointed.

4.08 (b) The setting-up and staffing of CODAIK. During the implementa- tion of the Technical Assistance Project, the company would be composed of a Board of Directors, three technical departments (planning and applied research, training and extension, and administration and finance), and two zonal direc- torates--one for Bulungu and one for Idiofa (Chart 2). The management of the - 15 -

Gungu-Katuta breeding ranch would remain with ONDE (para 2.15) under an implementation agreement (para 5.03) between CODAIK and ONDE. The main investments under the Project would include the construction or renovation of appropriate headquarters for CODAIK, the purchase of vehicles, furnishings and administrative equipment, and incremental operating costs for the company.

Short-Term Consultants' Services and Technical Assistance for Project Management

4.09 Short-Term Consultants' Services. Two types of such services would be provided under the Technical Assistance Project:

4.1C (a) Coi>.l.a:nts'ServScas to assist Governme&. Uith v±e c-;ecution of administrative, legal and financial preparatory activities. The team would include a management specialist who would also serve as team leader, a financial analyst and a lawyer (para 5.12). They would be assisted by local staff from the Departments of Portfolio and Agriculture and Rural Development who have experience with the establishment of mixed capital companies. The management specialist and the financial analyst would be recruited internationally since local capability in these fields is extremely limited, while the lqwvor woula o. recruited from a local legal firm of international standing as a detailed knowledge of Zairian corporace laws will be required (para 4.35). Candidates for all three positions should have previous experience with the setting up of private or mixed capital corporations. Fluency in written and spoken French would be required. The consultants would be recruited for a total of 16 man-months at a total cost of about US$242,000. The average man-month cost (including salary costs, fees, international travel and subsistence) is estimated at US$15,125.

4.11 (b) Consultants' Services to Assist the CODAIK with Project Imple- mentation. They would include (i) three additional man-months in quarterly two-week visits for the management expert recruited for Project preparatory activities (para 4.10) to supervise the management team, monitor the per- formance of the CODAIK's management, and set up the internal audit unit. (ii) Four man-months of an aquaculture specialist to carry out a detailed feasibility study for the aquaculture center (para 4.28), to prepare bidding documents, and to supervise its construction. (iii) Six man-months of a marketing specialist to assist CODAIK's management with the design of the Project marketing component (para 4.26) and to supervise its implementation. (iv) Six man-months of a credit specialist to assist CODAIK's management with the design of the Project credit component (para 4.27) and to supervise its implementation. (v) Two man-months for a livestock specialist to assist CODAIK and ONDE to design the operations of the Gungu-Katuta ranch (para 4.25), to start up the new management system and to supervise its performance through follow up visits. These short-term consultants' services would amount to 21 man-months and the total cost has been estimated at US$298,000. The average cost per man-month (including salary costs, fees, international travel and subsistence) has been estimated at US$14,200; this high level is due to unusually high costs for services in Zaire, accentuated by difficult working conditions and communications problems in the Project area. - 16 -

4.12 Technical Assistance for Project Management. Six internationally recruited technicians would be employed under the Project to assist CODAIK with the start-up of its operations. They would occupy the following posi- tions: the general manager, three departmental heads, and two zonal managers (para 4.08). In the selection process (para 4.35) preference would be given to nationals possessing the necessary qualifications and experience and to candidates with work experience in Kwango-Kwilu or in Zaire. The initial contracts would be for a 20-month period except for the general manager who would have a 21 month contract, or a total of 121 man-months for a total estimated cost of US$1.3 million. If the Technical Assistance Project is successful and is followed by another project, the individual contracts could be renewed for an additional two-year period, and annually thereafter, and the contracts would be drafted accordingly. Zairian nationals would be selected for managerial positions as local candidates with the necessary qualifications and skills became available. The average cost of technical assistance has been estimated at US$10,700 per man month (including salaries, fees, travel expenses, and allowances).

Training and Extension

4.13 The training objectives of the Technical Assistance Project are (i) to upgrade the existing extension staff through a refresher training program; (ii) to set up a continuous vocational training system; (iii) to test several training methods in order to define the methods best adapted to the objectives of the program; and (iv) to test the training capability of various existing institutions, e.g. missions, and to determine whether and how they should be strengthened. The training program of extension staff would cover all zones included in the Project area; farmer training would be integrated into the extension activities.

4.14 (a) Refresher Training for Extension Staff. Project management staff would prepare a test for the members of the professional staff of ex- isting agricultural extension and animal production and health services, to evaluate the vocational training needs of each staff member, their perfor- mance in the field and, in certain cases, to eliminate those members of the staff who simply do not possess the minimum qualifications or necessary skills. The refresher program would be structured to respond to different levels of need: (i) four months of theory in the form of a one-month session offered every three months over a full year, oriented to lower-level (A3) staff members with minimal academic training but who possess the necessary practical skills. Each month of theoretical or classroom instruction would be followed by two months of field work; (ii) two days of classroom instruction over a period of one full year, designed specifically for staff members at middle technical level (A2); and (iii) retraining in the form of refresher courses held twice a month and oriented to staff members at higher technical level (Al), designed primarily to introduce them to the extension methodology to be used as part of the Project. The theoretical training could be con- tracted by CODAIK to local training institutions; e.g., the missions, while the practical training would be integrated into the extension activities. At - 17 -

the end of each year of training, all level A3 and A2 staff members would be required to take another examination. Their performance in the field would also be assessed and taken into account in their final evaluation. By the completion of the Technical Assistance Project, 60 Al and A2 level and 75 A3 level extension staff would have participated in this refresher training program, which represents all the Al and A2 level and about one-fourth of the A3 level technicians presently working in the two zones of Bulungu and Idiofa.

4.15 (b) Vocational Training. Under the Technical Assistance Project, vocational training programs would be limited to the technical disciplines for the extension staff of CODAIK, as a complementary activity to the refresher training-program. Some preparatory work to extend the program to other disciplines (management, accounting, personnel management) and to all staff would be undertaken during the last six months of the Project period. The vocational training program for extension staff would essentially entail: (i) periodic meetings between zonal directors and sector heads, and between sector heads and extension workers at the "collectivite" level to review their performance and offer certain guidelines for use in implementing recommended extension methods and in introducing new technologies; and (ii) field trips to the Kiyaka research center when it is redeveloped and short-term assignmencs to othf. re-earch stations or to stouckfarmssucn as the Kazanza mission farm, plantations or other projects in Zaire or abroad. Training in aquaculture would be provided at the Gandajika center in Kasai.

4.16 The major investments for the training activities would cover the refurbishing of accommodations for trainees at the Kiyaka center (para 2.10) or at Lusanga (para 2.14), the purchase of necessary course material and the operating expenses associated with the refresher or continuous training programs.

4.17 The extension objectives of the Technical Assistance Project would be to test the proposed technical package; to test various extension methods; and to establish pilot extension centers in the Project area. During the first year of operation, CODAIK's extension program will cover the zones of Bulungu and Idiofa. If satisfactory progress is made during the first year of Project implementation, the extension program would be extended to the zones of Masi-Manimba and Feshi the second year; this increased coverage would be proposed in the second annual work plan.

4.18 The Technical Package would involve: farming methods, animal husbandry, and aquaculture.

4.19 (i) Farming Methods. Extension activities under the Technical Assistance Project would concentrate on developing simple and well- known agricultural techniques that are likely to be adopted by large numbers of farmers in the region (para. 3.05). These techniques would be combined with simple soil conservation methods and would include the use of selected, and possibly improved, seeds and plant material and the adoption of an appro- priate cropping calendar and rotation, row planting, better spacing and weeding, mulching and greater association with legumes. More advanced farmers - 18 - would be encouraged to use techniques such as ridging, contour planting, application of organic fertilizer and anti-erosion strips. Foodcropping would be limited to the less sloping land while the more sloping land would be planted with eucalyptus or pine as an anti-erosion measure and to provide firewood and timber for the rural population. These techniques would be tested during the Technical Assistance Project. The major crops would be manioc, maize, groundnuts, and rice in addition to some traditional crops such as cucurbitaceae and the earthpea, a local pulse.

4.20 The Technical Assistance Project would test, with a few selected progresive farmers, some of the long-term objectives of the farming methods improvement program. Crop rotation cycles would be shortened to increase the cropping intensity. More intensive farming methods would be introduced such as ridging and terracing, appropriate mechanization (small tractors of 16-30 HP) or chemical fertilizers. New crops such as soybeans would be tried in coordination with the appropriate research program (para 4.28).

4.21 (ii) Animal Husbandry. Animal husbandry would be integrated into the farming system in order to produce manure for on-farm use as organic fertilizer, recover agricultural waste, make optimal use of anti-erosive fodder strips, and exploit underutilized upland savannahs. Individual farm- ers would be encouraged to practice day-time herding and controlled grazing of cattle on the savannah pastures, and supplementary feeding in night-kraals with fodder and nutritional supplements such as mineral salts. The Ndama breed only would be encouraged because of its resistance to Trypanosomiasis. Regarding small stock, goat raising only would be encouraged, as poultry and pigs compete for food with the population, and their promotion at this stage of development cannot be justified. Goats would be kept tethered to avoid crop damage.

4.22 (iii) Aquaculture. Aquaculture would also be integrated into the farming system where possible. The extension agents would assist farmers with fish pond site selection (which has proved a serious problem in the past), or rehabilitation, construction specifications and maintenance, soil and water analyses, and fish feeding. Tilapia Nilotica would be the main species promoted.

4.23 The Extension Methods used under the Technical Assistance Project would essentially consist of farm visits by the extension staff, the distribu- tion of inputs, and the development of demonstration plots. Each extension worker would have a schedule of farm visits. Inputs such as seeds, tools, fingerlings, and veterinary products would be made available by the Project entity either from its own multiplication centers or purchased from other sources, but would be sold to the farmer either on a cash or on a credit basis. To procure other inputs, namely machinery, and breeding stock (cattle or goats), the CODAIK marketing service (para 4.26) could serve as an inter- mediary and they would be sold or leased to the farmers. Each extension agent would be required to develop his plot as a demonstration plot; additional demonstration plots would be developed by selected progressive farmers. Farmers would also be encouraged to group themselves into associations for the production of inputs, the marketing and storage of their crops or for the development of fish farming, and cattle raising. Several such - 19 - associations already exist in the Project area, mainly for fish farming. Other extension methods would be investigated under the Technical Assistance Project in order to design proposals for later projects under the program, in particular the possibility of developing a radio program on agriculture.

4.24 Pilot Extension Centers. Under the Technical Assistance Project, 16 pilot extension centers would be developed, in eight "collectivites" in Bulungu, and in eight "collectivites" in Idiofa, plus two sectoral extension centers, one in Bulungu and one in Idiofa, in addition to the two zonal offices. Each "collectivite" extension center would be staffed with three A3 level extension workers, for crops, animal husbandry, and aquaculture. The main investments per center would include (i) the construction of a small office with an attached warehouse for inputs and a veterinary dispensary, a treatment crush for livestock, a tree nursery, a multiplication center/demon- stration field for crops; and a fish hatchery for fingerlings; (ii) the pur- chase of inputs and equipment; and (iii) bicycles and incremental operating costs. Sectoral extension centers would be staffed with two A2 level extension staff, one agricultural technician, and an animal husbandry technician or aquaculture technician.

Gungu-Katuta Cattle Breeding Ranch

4.25 Under the Technical Assistance Project the existing ranch at Gungu- Katuta (para 2.15) would be developed from a full-cycle operation into a breeding operation (para 3.06). The objective would be to produce breeding stock which are in high demand by traditional sector farmers, and for which the supply is extremely limited. The first steps would be the reduction of the size of the herd, because of low productivity linked to pasture deteriora- tion caused by past overgrazing, and pasture improvement. Part of the herd, mostly males, would be sold in order to reduce the herd from about 900 head to 260 head. With the herd reduced, pastures could rest and be reestablished: re-seeding of the most damaged ones would be necessary. The Project would also aim to introduce improvements in the present animal husbandry management system. All stock would be Ndama, which is resistant to trypanosomiasis and more productive than the afrikander breed. Fertility testing would be used for stock selection, and forage crops would be planted for supplementary feeding in night kraals. Other basic animal husbandry practices, notably mineral supplementation and regular tick-control dipping would be maintained. The major investments would include the construction of the additional infra- structure mentioned above, the purchase of equipment and spare parts (vehi- cles, a tractor, motorbikes and bicycles), and the purchase of veterinary products. Some minor repairs of existing infrastructure would be carried out, as well as the construction of necessary additional facilities: staff housing, a water distribution system and a dipping tank. As a breeding operation, the Gungu-Katuta ranch could reach 950 head at full development after 15 years, and more than 50 heifers and 50 bulls could be sold every year to traditional sector farmers; steers would either be finished on the ranch or sold to farmers for finishing.

Supporting Services and Infrastructure

4.26 Marketing Services and Infrastructure. CODAIK's marketing con- sultant (para 4.11) would assess the existing marketing system and infra- - 20 - structure in the Project area and review the pricing system for agricultural produce, livestock and fish. He would then assist CODAIK's management with the design of a marketing program, including a proper market information system, a calendar and a system for operating rural markets, and means to improve crop collection and storage. Several rural markets would be reestab-- lished and a crop collection system tried out by CODAIK in coordination with the local administrative authorities. CODAIK would act as residual buyer to guarantee farmers the sale of their produce. CODAIK would enter into prior sales agreements with potential buyers, and would finance such crop purchases with short-term loans from local commercial banks as is currently the the practice of private traders. CODAIK could also assist selective 'collec- tivites" or farmers' associations with the construction of rural storage depots, and with the maintenance of feeder roads to facilitate their access to markets or crop collection points. The main investments would include the purchase of vehicles for the collection of crops, the construction of rural storage depots, and the maintenance of some feeder roads. The incremental costs for operating rural markets are included in CODAIK operating costs (para 4.08).

4.27 Credit Services. CODAIK's credit consultant (para 4.11) would assess the need for credit in the Project area, review existing and potential credit institutions, and assist CODAIK's management with the design of a credit program. An experimental credit program would be set up in the 16 "collectivites" with pilot extension centers, principally to sell to farmers input such as seeds, planting materials, tools, simple crop processing equip- ment (rice hullers or manioc mills), and breeding stock. Credit could be extended to farmers either on an individual basis or on a collective basis, for example, through farmers' associations. Terms of credit to farmers would also be reviewed by the consultant. A sum of US$150,000 for this experimental credit program has been included in Project costs. The incremental operating costs are included in CODAIK operating costs (para 4.08).

Applied Research and Studies

4.28 Applied Research. CODAIK would establish an applied research program to begin investigation of the crops, inputs (including fertilizer and small mechanization), and fish species best adapted to the conditions of the Project area. The research program would be limited in scope during the initial period, and would focus on major crops and farming problems. Several farming systems and sub-ecological zones would be defined, and a sample of farms would be established in coordination with the extension program and with other programs such as the Kiyaka research station, the PLZ subsistence crop program in Lusanga (para 2.14) and the MPP program in Idiofa (para 2.12). This sample would serve as the basis for collecting statistical data on production and productivity and developing a monitoring system for the proposed farming system and extension methods. The information made avail- able would be used to plan future agricultural development projects in the area. As part of the applied research program, an aquaculture center equipped with an analysis laboratory would be established at Kikwit. Fish ponds trials with various fish species and feeding and fertilization tech- niques would be developed as well as some river fishing trials. The main investments would include (i) the purchase of inputs for the field trials, mainly seeds, planting materials, fertilizer, and small mechanical equipment; and (ii) the construction and equipping of the aquaculture center. - 21 -

4.29 Studies. CODAIK would undertake the studies necessary for the preparation of future projects for the continued implementation of the inte- grated agricultural and livestock development program (para 3.01). CODAIK would hire short-term consulting services to assist its planning department with these studies, in particular for the ranching development program. A study on the economic recovery fund system would be carried out, separately, by the Government.

Technical Assistance for the Ministry of Planning

4.30 IDA has been working closely with the Ministry of Planning during the past two years on preparation of the Public Investment Program. As part of this dialogue, the Government requested IDA's assistance in financing the costs of a high-level macro-economic adviser who would reinforce the Ministry of Planning's macro-economic planning capability and provide training to high level Zairian staff. In an effort to respond quickly to the Government's request, it was agreed during negotiations to incorporate this technical assistance for the Ministry of Planning into the proposed Project; this component would be implemented independently of the rest of the Technical Assistance Project.

4.31 One high-level adviser, experienced in macro-economic planning, would be employed under the Project as adviser to the Minister of Planning. The adviser would be recruited for two years at a total cost of about US$250,000; an additional US$50,000 would cover the cost of a vehicle, equip- ment, and short-term consulting services. It was agreed during negotiations that the qualifications of the consultant and the conditions of employment would be satisfactory to IDA. The terms of reference and the work program for the first year have been agreed with the Government.

E. Project Costs

4.32 Total Project costs have been estimated at US$5.9 million, including US$3.9 million or 65% in foreign exchange. Items imported under the Project would be imported free of taxes and duties, and Project cost estimates include only negligible amounts of taxes corresponding to sales taxes on locally procured goods. The following Table is a summary of these costs, with a more detailed breakdown appearing in Table 1. 22

-US'$000 … Local Foreign Total Currency Exchange

I. Establishment Phase

Technical Assistance 69.0 173.0 242.0 Vehicles 1.0 40.0 41.0 Training and Extension 30.0 70.0 100.0 Miscellaneous - 17.0 17.0

Sub-Total Establishment Phase 100.0 300.0 400.0

II. Implementation Phase

1. Establishment of Development Authority

Buildings 105.0 45.0 150.0 Equipment and Supplies 25.5 134.5 160.0 Vehicles 11.0 208.1 219.1 Operating Costs 279.5 183.5 463.0

Sub-Total 421.0 571.1 992.1

2. Technical Assistance

Short-term Consultants 30.0 268.0 298.0 Project Management Team 184.8 1,086.2 1,271.0

Sub-Total 214.8 1,354.2 1,569.0

3. Training and Extension

Investments 190.3 68.1 258.4 Operating Costs 340.4 38.7 379.1

Sub-Total 530.7 106.8 637.5

4. Gungu-Katala Breeding Ranch

Investments 53.5 86.5 140.0

5. Support Services and Infrastructure

Marketing 81.5 213.5 295.0 Credit 75.0 75.0 150.0

Sub-Total 156.5 288.5 445.0

6. Applied Research and Studies

Field Trials 20.0 20.0 40.0 Aquaculture Center 65.5 134.5 200.0 Studies 30.0 120.0 150.0

Sub-Total 115.5 274.5 390.0

7. Study of Economic Recovery Funds - 30.0 30.0

Sub-Total Implementation Phase 1,492.0 2,711.6 4,203.6

III. Technical Assistance for Ministry of Planning

Technical Assistance 25.0 225.0 250.0 Vehicles, Equipment, etc. 10.0 40.0 50.0

Sub-Total Technical Assistance for Ministry of Planning 35.0 265.0 300.0

Total Base Costs 1,627.0 3,276.6 4,903.6

Contingencies:

Physical 135.8 107.2 243.0 Price 261.4 490.0 751.4

Sub-Total 397.2 597.2 994.4

Total Costs 2,024.2 5,7Af,el.P - 23 -

The Project cost estimate was based on December 1978 costs, adjusted to esti- mated February 1981 price levels. A physical contingency of 10% was applied to all Project components, excluding technical assistance, to reflect general uncertainty about the detailed scope of Project investments. A price con- tingency of 10.5% for 1981, 9% for 1982 and 8% for 1983 was applied on a cumulative basis on the cost of all goods and services. It was assumed that the progressive devaluation of the Zaire currency will compensate for increases in local costs, according to Bank/IDA guidelines on the treatment of contin- gencies for high inflation countries.

F. Project Financing

4.33 Project costs would be financed as follows:

US$ million %

IDA 2.9 49 West German Government 1.0 17 Zaire Government 2.0 34

Total 5.9 100

A detailed financing plan is included as Table 2.

4.34 The proposed IDA credit of SDRs 2.4 million (US$ Equivalent 2.9 million) would be to the Government of Zaire on standard IDA terms. The Credit would finance about 50% of total Project costs, including about 75% of foreign exchange costs. An advance of US$300,000 to the Government of Zaire under the IDA Project Preparation Facility has been approved and has been included in the IDA credit amount; the advance would be for the implementation of the Project Establishment Phase (paras 5.12-5.13). The Government of the Federal Republic of Germany will finance US$1.0 million equivalent (D.M. 1.6 million) as a grant to the Government of Zaire. Under parallel financing arrangements, these funds will be used to finance three of the six technical assistance specialists (para 4.11) for CODAIK, the training and extension specialist, and the two zonal managers, the purchase of ten long wheel base vehicles and spare parts, and the short-term aquaculture consultant's services. The Zairian Government will contribute the equivalent of US$2.0 million to Project financing. This contribution will be financed by budgetary alloca- tions, agricultural funds ("fonds agricoles"), and economic recovery funds administered by participating private companies (e.g., BRALIMA). Funds ear- marked for the Project would be passed on to CODAIK either as a grant or as the Government's share in the company's equity, under a Subsidiary Agreement. CODAIK would open and manage a Project account with the Zairian Commercial Bank in Kikwit, into which all the foreign and local financial participations would be disbursed. CODAIK would submit the budget to the supervising Depart- ments according to the schedule established by the Department of Finance for the preparation of the national budget; each budget proposal would be supported by an annual work plan (para 5.09). Government would pay its contribution to - 24 - the Project account at least once a year, at the latest by the end of the first quarter. The initial working capital requirements for CODAIK have been estimated at US$350,000, corresponding to about 25% of the first year budget excluding the establishment phase and technical assistance costs; this would be financed from the Government's initial contribution. Assurances on the above were obtained at negotiations. The signature of the Subsidiary Loan Agreement, the opening of the Project account, the payment of Government's initial contribution, and the fulfillment of all conditions required for cross-effectiveness of the bilateral financing agreement between the Republic of Zaire and the Federal Republic of Germany would be conditions of credit effectiveness.

G. Procurement

4.35 The Government has requested proposals from three internationally qualified firms to select consultants for the establishment phase (para 5.12). The management specialist and financial specialist would be recruited from outside Zaire, with the services of a lawyer contracted locally (para 4.10). IDA would approve the contract with the consultants. Technical assistance for Project management for CODAIK (para 4.12) would be recruited internationally and employed either under individual contracts with Gesellchaft fur Technische Zusammenarbeit (GTZ) or under direct contracts with the Government (including possibly secondment arrangements with IDA), depending on the source of financing. Alternatively, the Government might engage a consulting firm to provide all or part of proposed technical assistance. GTZ and IDA would exchange information on the terms and conditions of employment and assurances were obtained during negotiations that IDA would approve final terms of reference and contracts for all technical assistance staff. The identification and pre-selection of the candidates would be made by the consultants for the establishment phase, and the short-list would be submitted to both IDA and GTZ for approval.

4.36 For supplies of veterinary products, seeds, vehicles, farm equip- ment and tools, capital equipment for offices, training and extension centers and housing facilities, all contracts for amounts exceeding US$80,000 would be awarded under international competitive bidding procedures following Bank/ IDA guidelines. Contracts for amounts less than US$80,000 for vehicles, equipment and supplies, as well as all civil works contracts would be awarded under local procurement procedures which were examined during appraisal and are satisfactory; the Project management team should, however, inquire systema- tically about the prices charged by major suppliers represented in Zaire and check suppliers' after-sales and maintenance capacity. Assurances on these procedures were obtained at negotiations.

H. Disbursements

4.37 Funds from the Credit account would be disbursed over a period of two and a half years on the following basis: - 25 - US$-OOO

(a) 100% of total expenditures for the services of CODAIK-s General Manager, the Administrative and Financial Director, the Planning and Applied Research Director, and short-term consultants 845.0

(b) 100% of foreign expenditures and 80% of local expenditures for vehicles, office equipment for CODAIK, and farm machinery or equipment for the marketing, applied research, credit and ranching components 470.0

(c) 100% of foreign expenditures and 40% of local expenditures for civil works (offices, staff housing, training and extension centers, and development of the Gungu-Katuta ranch) 290.0

(d) 65% of total expenditures for the construction and equipment costs for the aquaculture center 135.0

(e) 100% of foreign expenditures for the studies 120.0

(f) 100% of foreign expenditure for ERF study 30.0

(g) 100% of total expenditures for technical assistance for the Ministry of Planning 300.0

(h) Reimbursement of Project Preparation Facility Advance 300.0

(i) Unallocated 410.0

Total 2,900.0

An estimated disbursement schedule is included as Table 3. Disbursements against (a), (b), (e), (f) and (g) would be fully documented. Disbursements for foreign expenditures in (c) and (d) would also be fully documented; however, disbursements for local expenditure in (c) and (d) would be against statements of expenditure, certified by senior management of CODAIK, the documentation for which would be retained for inspection during project supervision missions.

I. Accounting, Auditing, and Reporting

4.38 CODAIK would keep separate accounts and ledgers to justify all Project activities. The accounting system would conform to the guidelines of the Zairian Accounting Plan as required for all public or mixed capital enterprises under Zairian law. Project accounts would be audited each year by external auditors acceptable to IDA and a certified copy of all Project accounts and financial statements, as well as the auditor-s report would be submitted to the Association within six months of the close of each fiscal year. The auditors would specifically review and comment on the procedures used for control of disbursement against statements of expenditure. A copy of all quarterly and annual reports prepared by CODAIK-s general manager for the company-s board (para 5.08(i)) would be sent to IDA. Assurances to this effect were obtained during negotiations. - 26 -

V. PROJECT ORGANIZATION, MANAGEMENT AND IMPLEMENTATION

A. Organization and Management

General

5.01 The Agriculture and Rural Development Department and the Portfolio Department would share the overall responsibility for supervising the imple- mentation of the Technical Assistance Project. The State Secretariat for Agriculture (para 1.06) would have the main coordination responsibility, while the Portfolio Department would be primarily responsible for all the tasks related to the establishment of CODAIK (para 4.07). Once established, CODAIK would be the Project execution agent, and its general manager would also be the Project director. The Government would entrust CODAIK with the management on behalf of the Government of the sub-regional extension services for agriculture, animal husbandry, and aquaculture, which would be headed by CODAIK's training and extension director, and staff would be seconded to CODAIK accordingly. CODAIK would contract some Project activities to organizations already operating in the Project area. The participation of local authorities would be assured through coordination with regional Economic Development Councils (para 1.15), and that of the local population through farmers' associations (para 5.10). The Government would execute the study of the economic recovery fund system and the technical assistance component for the Ministry of Planning.

The Kwango-Kwilu Integrated Agriculture Development Company (CODAIK)

5.02 Legal Framework. CODAIK would be established by the Government as a mixed-capital company. CODAIK's initial equity would include the Government's initial share of the paid-up capital and the other partners' participations, either from share purchases or from contributions to the company of infra- structure or equipment; the government could finance its share with the economic recovery funds administered by BRALIMA (para 2.14) or with budgetary allocations and agricultural funds (para 3.04). CODAIK would be incorporated in accordance with Zairian corporate laws. Its basic organization would follow the stipulations of Law 78-002 of January 6, 1978 on public companies, also de facto applied to mixed-capital companies. The Board of Directors (para 5.04) would replace the Government supervisory committee, normally established to control the implementation of development agreements (para 1.13). Its statutes would define its objectives, responsibilities, the role and composition of its main bodies, and its main operational procedures such as the annual work plans (para 5.09). Assurances were obtained at negotiations that the Company's statutes would be satisfactory to IDA and GTZ.

5.03 Some Project investments and activities would be subcontracted by virtue of implementation agreements (para 1.12) between CODAIK and other organizations (para 2.11-2.15). These agreements would stipulate: (a) the technical standards to be adhered to during Project execution; (b) arrangements for disbursement of funds and methods for monitoring the proper use of such - 27 - funds; (c) arrangements for supervision by CODAIK; and (d) the obligation of sub-contracting organizations to provide CODAIK with quarterly progress reports. These implementation arrangements would undertake on the basis of strict criteria related to the technical and financial management capacity of potential contractors and their willingness to comply with the standards established by the Company. The accounts for all programs financed under an implementation agreement with CODAIK would be kept separately; joint accounts for these and other operations of the organizations would not be acceptable. All such contracts would be for a term of one year, renewable at 12-month intervals, and might be terminated at any time if CODAIK considered that technical and/or financial performance was unsatisfactory. Implementation agreements would be approved by IDA and GTZ as part of the annual work plan review.

5.04 Organization: CODAIK-s organizational structure would be as follows (Chart 2): (a) Board of Directors. The Board of Directors would have a minimum of five and a maximum of nine members. All directors would be appointed by Presidential Decree. The law on public enterprises provides for a term of office of five years, but since this would be a pilot Project, the term of office of the original members of the Board would be two years. Since the private enterprises contracting development agreements are responsible for managing the economic recovery funds on behalf of the Government, the Board would include both private-sector and Government representatives. The voting power of each Board member would be determined by the respective number of shares held in the Company's capital stock. The private-sector representa- tives would include at least one representative from each company participating in CODAIK and one representative from the local population who would be elected from among the presidents of different farmers' and stockmens associations and cooperatives in the Project area (para 5.10). Government representatives would be nominated by the supervising Government Departments but could include regional officials. The regional director of agriculture for Kwango-Kwilu should be a member. The members of the Board would elect a Chairman by a simple majority vote at their first session. The Company's general manager would participate in Board meetings in an ex officio capacity. The duties of the Board would be:

(i) to define and implement general Company policy, as well as its management and operational policy;

(ii) to appoint the general manager and approve the nominations of department and zonal directors; and

(iii) to approve the budget, annual work plan, the financial plan, the Company balance sheet and financial statements, the annual report, and all new short-term loans from com- mercial banks and transactions over Z 100,000.

5.05 The Board of Directors would invest the general manager with all powers necessary for him to manage the Company on a day-to-day basis. It could also delegate specific responsibilities to the Management Committee or individual committee members. The Chairman of the Board would attend meetings of the regional or subregional Economic Development Committees. - 28 -

5.06 The Board of Directors would be required to hold a minimum of ten meetings during the Company's first year of operation. The Company's Secretary and his staff would be responsible for preparing and keeping minutes of all Board meetings.

5.07 (b) Management Committee. The Management Committee would include the general manager, who would serve as chairman, the department directors and the zonal directors. The committee would be responsible for the day-to- day execution of decisions adopted by the Board. It would also serve as the main coordinating mechanism for the various Company activities and day-to-day operations, and would be expected to assist the general manager in preparing the annual work plan and related documentation. The Management Committee would normally meet not more than twice a month, with the general manager authorized to convene special meetings at his discretion.

5.08 (c) Administrative and Technical Management. Under the Technical Assistance Project, the Company-s administrative and technical management structure would consist of its senior management, three specialized depart- ments, and two regional offices.

(i) Senior management. The general manager would be responsible for overall Company management, as well as for selecting the department and zonal directors. He would plan, coordi- nate, monitor and supervise all Company activities and services. In addition to his operational planning and supervisory functions, he would be responsible for defining the terms of reference for each department, in collaboration with the department directors, drawing on the advice and recommendations of the Management Committee. He would systematically review the progress made by each department towards its respective goals each month on the basis of documents maintained at company headquarters, as well as through his field trips in the Project area. He would also be responsible for building-up the company's technical and managerial capacity. He would ensure liaison with the local, subregional and regional authorities, as well as with private organizations and government agencies interested in or actively participating in the Project. The general manager would visit each zone at least once a month and would be expected to cover all sectors at least twice a year, thereby formulating his own opinions of the problems encountered in the field.

The general manager would be appointed by the Board of Directors and would work in close collaboration with the Board at all times. He would submit brief written monthly reports to the Board of Directors outlining company operations and progress made with Project implementation. At the end of the first calendar year of Project implementation, he would provide the Board with an annual progress report on previously established Project targets and objectives, outlining problems, the Company-s financial position and the annual work plan for the following calendar year with related documentation. - 29 -

The internal audit unit would report directly to the general manager. It would ensure the integrity of all technical reports on work in progress, monitor the performance of sub- contractors working under implementation agreements, monitor technical or physical progress made in Project implementation and verify trips made by personnel. It would also verify accounts, physical operations, and financial transactions.

(ii) Planning and Applied Research Department. The main function of this department would be to identify the most appropriate production systems for the Project area. The department would undertake three major activities -- planning, applied research and monitoring, and studies.

The planning activity would consist of the design of new production systems, as well as their physical and geographic planning in terms of the physical and human resources to be employed in their introduction and use. It would identify optimal systems for the integration of farming, stock raising and fish farming based on availabilities of local resources and infrastructure.

Applied research and monitoring would consist of the design and coordination of applied research programs, including the development of trial plots, the design of sample production systems for use in different ecological regions or subregions within the Project area, data collection, and analysis of the major variables in the different production systems (labor, inputs, cost of inputs, yields, etc.) (para 4.28).

The studies would consist of the analysis and overall evalua- tion of Project implementation, and the analysis of the various constraints. It would also include the preparation of the monthly, quarterly and annual reports to be submitted to the Board of Directors, and feasibility studies for the further implementation of the program (para 4.29). The Department of Planning and Applied Research would be expected to work parti- cularly closely with the Extension and Training Department, which would be its major source of data and field trials.

(iii) Extension and Training Department. The role of this department would be to improve existing systems of produc- tion on the basis of the various guidelines and standards defined by CODAIK. It would train extension agents and local farmers, organize and manage specific services, particularly animal production and health services, and coordinate other services to farmers with CODAIK's technical divisions such as agricultural credit and market- ing. The Extension and Training Department would be divided into three divisions: crops, animal husbandry and aquacul- ture. Each division would be responsible for implementing the company's training and extension program within its respective field (paras 4.13-4.24). - 30 -

(iv) Administration and Finance Department. This Department would include two main divisions, for administration and finance.

The Administration Division would include the Secretariat, the personnel management section, and the technical services section. The Secretariat would keep the company s files (official records, documents, minutes of Board meetings, correspondence, contracts, etc.) and handle public relations. The Secretariat would also handle legal work related to the preparation of the implementation agreements to be signed between CODAIK and sub-contracting organizations (para 5.03). It would monitor the sub-contractors- performance, prepare evaluation reports for submission to the general manager, and the documentation necessary to settle possible disputes.

The personnel management section would prepare job descrip- tions and specifications, and design procedures for use in hiring Company personnel. It would be expected to develop an in-house refresher training program for staff (apart from the vocational training program) covering areas such as administrative training, communications development, execu- tive training, project management, budgeting and budget management, etc. The goal of this program would be to expand the career opportunities for employees both within the Company and elsewhere. It is expected that services or courses offered by the Institut d-Administration Publique (Civil Service Institute) in Kinshasa would be used.

The technical services section would be responsible for the management of mechanical services that would be hired by farmers either for farming (e.g. land clearing) or for simple crop processing (groundnut hulling, manioc or maize milling). During the implementation of the Technical Assistance Project, the Company would use garage services available locally.

The Finance Division would include the accounting and budgeting section, the procurement and marketing section, and the rural credit section. The accounting and budgeting section would prepare the company-s accounts, budgets, and financial state- ments and projections. All expenditures exceeding Z 100,000 would be approved by the Board of Directors. A simple cost accounting system for the Project-s principal activities would be developed. The procurement and marketing section would procure inputs for the extension service and manage their sale to farmers. It would also be responsible for implementing the Project's marketing activities (para 4.26). The rural credit section would be responsible for implementing the Project-s credit activities (para 4.27).

(v) Zonal Offices. The Company would have two zonal offices -- one in Bulungu and one in Idiofa. The zonal directors would be - 31 -

responsible for Project implementation in their respective zones. They would administer the agricultural extension and training services in the fields of crop production, animal husbandry and aquaculture; supervise all organizations under contract to CODAIK and, hence, be responsible for a portion of the plan of operation; and ensure day-to-day liaison with the local authorities and other agencies involved in Project imple- mentation such as INERA, PNM and PRONAM (para 1.06). They would be assisted by the zonal agronomist and veterinarian who, in addition to their tasks under the proposed Project, would also be expected to perform their current administrative duties -- provide Project officials with information on Government policies and objectives with regard to crop production and animal husbandry; prepare agricultural and veterinary statistics for zonal annual reports; issue transit permits for livestock; and control stock slaughtering. Zonal directors would be nominated by the general manager following their preselection by the consultants for the preparatory phase, and appointed by the Board of Directors. They would work directly under the general manager but might report directly to the Board on the status of the Project in their respective zones.

5.09 Annual Work Plans. A detailed program for Project implementation would be designed each year and set forth in the form of an annual work plan. This system should enable the various parties concerned with Project implemen- tation (the Zairian Government, the CODAIK Board of Directors and the external financing agencies) to monitor all work in progress and to adjust the Project design as experience is gained. Each annual work plan would be prepared by the Planning, Studies and Applied Research Department based on proposals submitted by CODAIK's zonal offices and technical departments. Annual work plans would be studied and approved by the Company's Management Committee. They would then be forwarded to IDA and GTZ for approval by November 1st of each year. They would then be submitted to the Company's Board of Directors for final approval, to be operational by January 1 of each year. Each annual work plan would consist of the proposed Project investments and activities for the forthcoming years, the company's investment and operating budgets, its financial plan, and staffing requirements. It should further specify staffing requirements including a detailed schedule of secondment and training of Government extension staff as well as new staff to be engaged. Each work plan would be supported by a technical, managerial and financial assessment of the Company's and Project's performance. Assurances on the above were obtained at negotiations.

Farmers Associations

5.10 The Extension and Training Department would encourage farmers to join forces through the organization of associations (or cooperatives) as a means of mobilizing the local population for the development effort in Kwango-Kwilu. These associations could be used to organize certain services, including seed multiplication centers, animal production and health centers, and the construction of depots for storing farm inputs or harvests. CODAIK could build on the experience of several existing organizations in the - 32 - sub-region,such as the fish farmers associationsof Kwilu, as well as in other parts of Zaire, notably the pastoralists associationsin Kivu and Ituri.

B. Project ImplementationSchedule

5.11 The proposed Technical Assistance Project would be implementedin two phases over a period of approximately24 months.

Project EstablishmentPhase (four months)

5.12 The establishmentphase would be devoted to the preparationof legal documents and instruments(articles of incorporation,development agreement, company bylaws, PresidentialDecree etc.), financial plans, arrangementsfor capitalizationof the Project implementingagency, etc. (para 4.07). By the end of this four month preparatoryperiod, the company should be legally established,with a duly appointed Board of Directors and general manager. The establishmentphase of the Project would be implementedlargely by the PortfolioDepartment with assistance from an interdisciplinaryteam composed of: a specialist in corporateorganization and management assisted by a national counterpart,a specialist in corporate finance assisted by a national counterpart,a lawyer, and a technical staff member from the Department of Agricultureand Rural Development. The team leader would be the specialist in corporate organizationand management;he would coordinateall team activities including operationalplanning, define the strategy for company organization, supervise the individualsresponsible for preparing the final versions of all documentation,and organise the recruitmentof the general manager and the preselectionof the department and zonal directors. The corporate finance specialistwould prepare all the financial documentsrequired for company incorporation,the system for issuing company stocks, as well as the amount and constitutionof its equity (an indicative financial statementhas been prepared as Table 4). He would also define the principles of financial management to be adhered to by the Board of Directors, and the financial management system and practices to be followed by the company'sadministrative and financialmanagement staff. The lawyer would prepare prepare all legal documents required for company organization,including company bylaws, legal regulationsconcerning company stock, voting procedure, meetings, etc., in collaborationwith senior officials of the Portfolio Department. The team would contact ONDE staff to benefit from their experience in establishingan agriculturaldevelopment company jointly financed by the national Executive Council and IDA.

5.13 The Project establishmentphase would be financed by the Government with assistance of an IDA Project PreparationFacility advance (para 4.34). Total costs have been estimated at approximatelyUS$400,000, including fees for consulting services and the cost of vehicles to be placed at the disposal of the team of consultants. The vehicles would subsequentlybecome company property. - 33 -

Project Implementation Phase (twenty months)

5.14 The first three months of the Project implementation phase would be devoted to Project start-up activities. The general manager would make a final selection of the company-s department and zonal directors, establish the Company-s headquarters and administration, including department opera- tional procedures, recruit the company's middle management and junior staff, and prepare the first work plan. Additional administrative and technical activities would include the purchase of office equipment, vehicles, and didactic materials; the preparation of bidding documents for the construction of Project infrastructure and for the start-up of the aquaculture center, and credit and marketing studies (para 4.26-4.28). The general manager would be assisted for two months by the organization and management consultant of the establishment phase, and progressively by the department and zonal directors as they joined CODAIK.

5.15 The following seventeen months would be devoted to the implementa- tion of Project activities as described in Chapter IV. Ten months prior to the completion of the Project, the Zairian Government, IDA and the Federal Republic of Germany would prepare a joint evaluation of all operations and achievements of the various institutions responsible for Project execution. If it is then determined that Project performance has been satisfactory and has established a sound basis for continued development, a larger-scale project to be implemented over a period of approximately four years could be appraised. The ten month period following the mid-term review should be sufficient for evaluating such a large-scale project and identifying financial sources since the technical work was completed as part of the preparation of the Technical Assistance Project.

VI. BENEFITS, RISK AND JUSTIFICATION

Benefits

6.01 If the Technical Assistance Project were successful, the principal benefit for Zaire would be institution building. The Project would have initiated the development of an institutional framework which could be applied not only for the development of agriculture in the Kwango-Kwilu, but also for the development of other sectors there and elsewhere in Zaire. At the general policy level of the central Government, the Project is expected to afford an opportunity for several agencies of Government to join efforts and resources to achieve a common objective. The Departments of Agriculture and Rural Development, Portfolio, National Economy, Finance, and Planning would collaborate to establish and support the proposed mixed-capital company. The Project would also support the Government-s efforts to mobilize the private sector, to tap its managerial capacity and to enable it to participate actively in the national development effort. In addition, the Project would test the recently established system of development agreements and economic recovery funds and the system-s effectiveness as a channel of fiscal revenues to finance investments and operating expenditures for development projects. - 34 -

6.02 In the Kwango-Kwilu area, the Project is expected to initiate a long- range planning and organizational effort for agricultural and economic develop- ment. It would support the decentralization of development responsibilities to the regions under Law 008 of January 1978 (para 1.15), promote coordination between public and private development efforts, and decentralize agricultural development responsibilities down to the individual farmer. This would be the case, in particular, if farmers organized themselves successfully in associa- tions (para 5.10). The Project would have also strengthened the agriculture and livestock extension services, with more than one hundred extension staff having participated in the Project refresher training program, and compre- hensive extension services having been established in 16 "collectivites" in the Project area.

6.03 In addition to institution building, the Project would be expected to yield important technical benefits. Adaptive research would be renewed as well as seed and plant material multiplication after an interruption of more than ten years. An improved farming system would be tested, laying the foundations for a long-term design. Because of the experimental nature of the Project, no significant increase in agricultural production would be expected, and therefore no economic rate of return for the Project was cal- culated. However, if this Project were followed by a broad-based project, it would have demonstrated the potential to improve the agricultural production of a large number of farmers in the Project area.

6.04 In addition to strengthening existing institutions and bringing technical improvements, the Project would also be expected in the long-run to create new on-farm employment, raise income levels and improve the nutrition of the farming population. Improved marketing channels would facilitate communication with the isolated rural areas of Kwango-Kwilu. For the economy, any improvement in agricultural production represents a savings of foreign exchange expenditures.

Risks

6.05 Because of its experimental nature, the Project involves certain significant risks. The context within which it is to be implemented is highly complex. The Project can be implemented only if the Government is firmly committed to it, taking specific steps to mobilize private sector partners, hire short-term consultants for the establishment phase, and establish an effective mechanism for coordination between the various branches of Government. To offset this risk, the draft appraisal report was reviewed with Government and potential partners at an early stage, and extensive assistance was provided to the Government to speed up the recruitment of consultants for the establishment phase. The success of Project operations in the field will depend in large part on the motivation of the Project management staff and on the confidence of local farmers in the extension staff. Very selective criteria and procedures for staff recruitment have therefore been devised, and performance in the field has been included among the criteria to be applied by CODAIK for the final selection of extension staff. If Project personnel are given the proper tools and are closely supervised, satisfactory performance can be expected. Project financing, particularly the financing of - 3.5- operating costs, is partially based on the system of economic recovery funds. While this mechanism seems to offer at present the only guarantee for regular transfers of fiscal revenues to the national agricultural development effort, it is, nonetheless, a parallel fiscal system and there is no indication at the present time of its long-term viability. Evidently, if the system of economic recovery funds is abolished, the Technical Assistance Project could find itself paralyzed, as experience has already demonstrated in the case of other ongoing projects dependent on budget appropriations from the central Government. To offset this risk, the Government gave assurances at negotiations that alter- native sources of funds were available, notably budgetary resources and agricultural funds (para 3.04). In addition, the Project annual work plans with the supporting financing plan and planned intensive supervision efforts should permit monitoring of the system and appropriate action to be taken.

6.06 Technical problems are not a major risk for this project. Although some recommended systems have not been fully tested in the Kwango-Kwilu subregions, their basic soundness has been demonstrated elsewhere. All are very simple technologies, partially practiced already by farmers in the area and requiring only minimal external resources to be brought into the Project area. The greater use of inputs such as fertilizer might be desirable in the future but cannot be envisaged at present on a large scale given the technological know-how and economic situation of the Project area farmers. The major constraint to the adoption of the recommended methods, as in the case of any agricultural development effort in rural Zaire, could be a shortage of labor, due to the rural exodus and the substandard living conditions in rural areas. To offset this risk Project activities will be coordinated with other projects such as the UNDP/FAO project (para 2.11) which are contemplating the establishment of health centers and recreation facilities within the Project area.

VII. AGREEMENTS REACHED AND RECOMMENDATION

7.01 During negotiations, assurances were obtained on the following:

(a) that all funds earmarked for the Project would be passed on to CODAIK either as a grant or as Government's share in the company's equity, that the Government's annual contribution to the Project account would be deposited at the latest by the end of the first quarter of each year, and that CODAIK would be able to utilize Economic Recovery Funds of partici- pating companies (para 4.34);

(b) that IDA would approve final terms of reference and contracts for all technical assistance staff (para 4.35);

(c) that procurement procedures would be as detailed in para 4.36 (para 4.36);

(d) that separate accounts would be maintained for all Project activities and that auditing of accounts would be in accordance with procedures detailed in para 4.38 (para 4.38); - 36 -

(e) that copies of quarterlyand annual reports prepared by CODAIK's general manager would be forwardedto IDA (para 4.38);

(f) that CODAIK-s statutes would be satisfactoryto IDA (para 5.02); and

(g) that the Annual work plans would be submittedto IDA for approval (para 5.09).

7.02 Conditionsof Credit effectivenesswould be that:

(a) CODAIK, the Project implementationagency, had been established, its statutes approved by IDA, and the General Manager appointed (para 4.07);

(b) a SubsidiaryLoan Agreementbetween the Government and CODAIK had been signed (para 4.34);

(c) the Project account had been opened and the Government's initial contributionof US$350,000 equivalenthad been paid up (para 4.34); and

(d) all conditionsrequired for cross-effectivenessof the bilateral financialagreement with the Federal Republic of Germany had been met (para 4.34).

7.03 The Project is suitable for an IDA Credit of SDRs 2.4 million (US$ Equivalent 2.9 million) to the Government of Zaire on standard IDA terms.

April 15, 1981 ZAIRE al

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Sdb-tota 400,1000 100 ,000 320,000 - - 400000_51 111FR-- 3000.000 75 Total Fa-s-e

0. Ostolishmec cE RUnclpsr- Acxhn-tty 1. Min -c Iacr -eg-nt-c Ac Ac-Iepen

c'ltdEng, 150,000 0O5,000 45,000 - -- 150,000 105,000 45,000 310 Foinn t tqcliesrl aod suplIes5000 14,100 35,300 110,000 IIYOY 90,000o 1060,000) 25,500 134,500 06 En-lp-nnn cbodtoe Yc,nccad oc at 7 0 11167,9000 42,400 2,Y'40,200 210,10 11002010 9Fhnie tp$c eeg h. Opr-ac-g nest 17905000 109.500 70.000 28j_500 j702000 113,900 463.000 j79_00 .300 4003 d 550,700 237,000 3110,400 4315,000 103,200 2152,700 007.100 4,21,00047 10

2. TenhoialI A-nlctacc 2. o tcr ehI a. Short-termcocciltantc' cerntec ~1017,1750 05,000 133,350 150,250 15,000 135,250 200,000 30,000 26800,50 00 a.SricIonlatnseor-xrm b. P-1-nt nic.geme. - 5a04,0009 73750 430 250 767,000 121Q0(o 656,000 1.2 1000 184 750 ia.086j2 05 b. F-oi,e A'-c-rdrcnet 651,750 o8,ooo s63,000 012,250 126,000 701,750 1,560,000 204,350 1,354.250

S,id lAOgn 51,000 42,000 0,000 140,000 12,50 0,500 105,000 176,500 10.300 10Fotrcin Eqoipmeot ~~~~~~~~~~~~~~13,0004,500 13,500 35,000 0:,150, 3625 53001,501,5 5 qlpm 5,040 250 4,700 5,320 270 5,050 10,300 520 9,0411 '0 Fhco 0. Operting ros90.260 88.430 9.830 _:0_18060 2511000 .2 8,2P9 Oo 3 ,390j~ 30_ 1730 10 . cx Alotcec 170,300 14,036,120 401,100 130,50 3R0,300 633,40 130,000

4, KogoEaI.sSecding Ranch 4. I-ehc d'lcirAingo-K-a1.t nIldinge, - 611,000 4 5,001' 15,000 40,000( 45,000 15,0cCu 25 _ _ _ tI1 lp-ot - 30,000 4,000 24,000 30,000 4,000n 24 ,000 00 Fqn"I""rcIs VhiI clan - - 473500 50,pQ0 JJ,jf0f Ž.500 95 V hlenien 140,000 53,scO 06,500 140,000 53,500 06,500

5,000 1,50~ ~ ~~~03,50 'o,SO 14,1001R) 4,000 25000 1 5,100 9,500 30lneircon Vehicles 50,000 2,5011 47,500 10,000 3,5001 hnA66500 2'0,000 4,000 11,100 05 Vch iI-r Feeder road nuceae 0,000 20,000 30.0(10 100,001,0 40004100 1001 000Oald60 EtiesIrcn-co c enet A. CredO, ~~0,0.000i&J22Q 2&.PQQ 12f0.20 6 5 00_500 1000200000 0 0b. COR 125,000 34,000 91,000 320,000 2_'o '197,500 445000T,'00 200,500

6. Ab,Iled0 1 R--eth and Stod-e 6. K-ch-ehc 'armooee tnoe A,, p led -ei--c 10,111 ,1115,000 30,('10 15,000 15,2000 40,000u 20,000 20,000 50 a.Rehe-he d'art-opegnne A'qan_In..c Ceter ~ 5 00 0 500wi 4,500 Ins, 1(01 55 ,1(1] I3c,<0l' 210,00 4350'go 1$4, 5100 037eteed'a....ie b. Scudle, - 1"O.00o ,j0,po 120.000 1 50.000 30,000 120,000 800. Etudes 25,000 11,500 0900o 365.000 l00,000 265,000 390,000 115,500l 274,500

7. OmAn~ OF-rooml R-co-e Foods 30,000 - 30,000 - - - iF(.3,()inn 7. Fintds do ,'t,tss An tunAs As resc.-

Snh-Tete1 1,564,250 5110,230 1,040,020 2,030,330 975,680 1,663,650 4,703,580 1,401,010 2,701,677 rTota Carte

ITT. Teeheisl AesItece- foe the TTI Asi,ne chieegx

2, :e,Iee AeeRsts...e 0333 01 3 ,' 'S'' 5''." "7 01, A-n se.ce.... lo 2. Sclls. rqnRen, ee- _50,0(00 1.2'" . ,"'1 o ,2ciot,ecosc.ec 1133,40 1'' '50 5' ""0 'r0c o

Total Nice Costs 2,097,550 03 3'c O' 2,8000030 992,380 1,813,650 4,003,500 ' '-1~ oa 'o,,tsdc en

Phynl-al 66,252 45,050 20,402 176,715 39lSY6 06,7 305 25 30 1) 'l,13 ~- ld - - Frie_ 187,720 59.620 _17S10 56O3i,710 201,7 5 36 L94 _51,430. 26,8 4iiliP4S Dd-xe c pci~ 253,375 105,470 140,500 040,420 29 1 ,745 440,625 45, 340, 342,215 597,175

Total Foesi 2,35 1,5720 ','' = 3,540,,50 1,204,125 2"6" ,3'S 5,032,975 0a 'i

M-rn 26, 14981 !,'6 00)51 - 38 - Table 2

ZAIRE

KWANGOKWILU TECHNICAL ASSISTANCE PROJECT PROJET D'ASSISTANCE TECHNIQUE AU KWANGO-KWILU

ESTI}ATED FINANCTNG PLAN PLAN DE FINANCEHENT ESTIMATIF (US$ '000) (US$'000)

IDA PRG GOZ Total

Establishment Phase Is Phase de mise en place

Short term consultants 173.0 - 69.0 24 2.0 Consultant a court terme Vehicles 40.0 - 1.0 41.0 Vehicules Training and Extension 70.0 - 30,0 100.0 Formation et vulgarisatton Miscellaneous (including 17.0 - - 17.0 Prais divers (y compris recruitment costs) recrutement) Sub-Total 300.0 T 400.0 Total partiel

II. Implementation Phase TT. Phase d'execution

1. Establishment of Company 1. Mise en place de la compagnie Buildings 45.0 - 105.0 150.0 Constructions Equipment and supplies 134.5 - 25.5 160,0 Equipements et fournitures Vehicles and spare parts - 220.0 - 220,0 Vehicules et pieces detachees Operating costs - 138.0 325.0 463,0 Couts de fonctionnement 17T.5 3780 455.5 T9.

2. Technical Assistance 2. Assistance technique Short term consultant Services consultants a court- - 298,0 terme services 238.0 6Q.0 2 7 Project management team 771.0 500.0 _ 1, 1,0 Equipe d'encadrement rou9.6r560.o - M6

3. Training and Extension 3. Formation et vulgarisation Buildings 20.0 - 175.0 195.0 Construction Equipment 40.0 - 13.0 53.0 Equipement Vehicles 10.0 - 0.4 10.4 Vehicules Operating costs 40.0 - 339.1 379.1 Couts de fonctionnement r uTU 3 U377

4. Gungu Ratuta Breeding Ranch 4. Ranch d'elevage de Gungu-Katuta Buildings 15.0 - 45.0 60.0 Constructions Equipment 24.0 - 6.0 30.0 Equipement Vehicles 47.5 . 2.5 50.0 Vehicules 86.5 - 53.5 140.0

5. Support Services & 5. Services et infrastructure Infrastructures d' appui Marketing Commercialisation Infrastructure - - 25.0 25.0 Infrastructures Vehicles 114.0 - 6.0 120.0 Vehicules Feeder road maintenance 90.0 - 60.0 150.0 Entretien routes de desserte Credit 75.0 - 25.9 i150. Credit 279.0 166.0 445.0

6. Applied Research and Studies 6. Recherche d'accompagnement et etudes Field trials 20.0 - 20.0 40.0 Essais sur le terrain Aquaculture center 134.5 - 65.5 200.0 Centre d'aquaculture Studies 120.0 - 30.0 150.0 Etudes 274.5 - 115.5 390.0

7. Scud, of EcoicRecovery Fuds 30.0 - 30.0 7. de ster do foods de relence economiaue

-ub-Total 1 Sc 5 10 1 318.0 4,214 T otal Partiel

III. Techntcal Assistance for III. Assistance technique pour le the Mintstry of Planning 300.0 - - 300.0 Comsissariat general as Plan

Sub-Total 2 568.5 918.0 1418.0 4,q04.5 Total Partiel

Non-Allocated 331.5 82.0 582.0 995.5 Non-alloues

Total 2,900.0 1000.0 2,000.0 5,900.0 Total

March 26, 1981 Le 26 mars 1981 Table 3

- 39 -

ZAIRE

KWANGO-KWILUTECHNICAL ASSISTANCE PROJECT PROJET D'ASSISTANCETECHNIQUE AU KWANGO-KWILU

Estimated Schedule of Disbursements CalendrierEstimatif des Decaissements

IDA Fiscal Year Cumulative Disbursement Ann4e Fiscale de and Quarter at End ot Quarter 1'IDA et Trimestres Deboursementscumules fin de trimestre (US$'000) 1981

June 30, 1981 45.0 I/ 30 juin 1981

1982

September 30, 1981 275.01-l 30 septembre 1981 December 31, 1981 500.0 31 decembre 1981 March 31, 1982 750.0 31 mars 1982 June 30, 1982 1,025.0 30 juin 1982

1983

September 30, 1982 1,300.0 30 septembre 1982 December 31, 1982 1,600.0 31 decembre 1982 March 31, 1984/ 1,900.0 31 mars 19832, June 30, 1983- 2,230.0 31 juin 1983"

1984

September 30, 1983 2,550.0 30 septembre 1983 December 31, 19833/ 2,900.0 31 decembre 19833/

1/ These disbursementsare advances from 1/ Ces decaissementsDroviennent de the Project PreparationFacility; the l'avance de fonds pour la pre- estimated date of Credit effectiveness paration du projet; la date prevue is October 15, 1981. pour 1'entree en vigueur du credit est le 15 octobre 1981. 2/ Expected date of Project completion 2/ Date prevue pour l'achevement du projet 3/ Closing date 3/ Date de cloture

March 17, 1981 le 17 mars 1981 ZAIRE KW_CG4-KWILU TECUNLCAL 6S LSTANCE PROJECT

Indicative F'inancialStatement/Etat financier indicatif

------Year l/Annee 1------Ycar 2/Annme 2- --- Years 1-2/Annees 1-2---- Local Foreign Local Foreign Local Foreign Total Currency Exchange Total Currency Exchange Total Currency Exchange Monna4e Monnaie Monnaie Total Nationale Devises Total Nationale Devises Total Nationale Devises - - u-$usS °°'000------UsS (000 Us°-0 - - - - 00

FIXED ASSETS [MMOBILISATIONS

Buildings 1770 117 53 2'15 69 '36 375 186 189 Constructions

Equipment and Tools 70 15 55 110 11 99 180 26' 154 Materiel et outillage Transport Equipment 245 14 231 112 5 107 357 19 338 Materiel de transport

485 146 339 427 85 342 912 231 681

SUBVENTION 143 86 57 740 291 449 883 377 506 SUBVENTION

CONTINGENCIES 284 105 179 495 247 248 779 352 427 IMPREUS

WORKINGCAPITAL 1i249 363 886 1.762 677 1,085 3,011 1,n40 1,971 FONDS DE ROULEMENT 2 iL676 554 1,122 2,997 1215 1,782 4 1,769

TOTAL COSTS 7001700 1 3424 1300 2A124 5,585 2 000 35 TOTAL COUTS

SHARE CAPITAL CAPITAL ACTIONS 2,000 2000- Nominal Nominal 2000 2000 _5_ 0=0 2,000 - Subscribed 700 700 - 1 300 1,300 - 2,000 2,000 Souscrit

- 1,000 DOTATION GOVERNMENT CAPITAL 475 - 475 525 - 525 1,000 CONTRIBUTION 986 - 986 1,599 - 1,599 2,585 _ 2,585

1 A LONG TERME LOAptl5T 1980_Le - EaPRUNTS

April 15, 1980 Le 15 avril 1980 - 4,1 - EARIT/DIAGCBAME 1

ZAI RE KWANGO - KWILU TECHNICAL ASSISTANCEPROJECT rplepentnion Sdcdule

1981 1982 1983

FE8-MAVY| J | JI | A 0 N 0 J F] M A M 1 1 | S I |NID I I M A |M | J|A 1 P roasorV Pha.e _ _ _ __J - _ __. _ _ Pwostr Ph.s.s mrlsrrnsrion h.s

-P-ep n#io- Bdd,ngD - -Onrsofs

-T.d,., Subi-srods DAv-Bd * _

-rivp nalio of Pdsorarn h b-R

b) fP.oXr Ph-.nosror.

-Eb#buisnor DOmfo*O n _ _

ARomimnreGt Of Garerl MMMarn|

2 Impl msfion Pha a d - -oruir.nrof Msnoen S,RftIff

-F-1l0rr M- U -Bosr A-Oroa -Arrji Fif-noiOi,0-0 0 -Orbs, T5Ca,.ai Ass-tnt Trs,niroinGsrmnVwry l ll

Tor,. of RbfeEeno for. h Osomnopeof, ¢- T|

E, bonoa-fAnWo | * EeO.fOisfirnnt of Aarrirhtr#lnt -no t t MI I I I I I | Work PraMr for Eseh D"--nito-

| oui movnoth.0 dTraimnin tooLoia

Ofs-f

| rdCdfsTs,fiiosl MaosgsnisrO 1 P-T5,k. ., k

5,0 Cedir Sri.dis

hb Sh-n Tan Con1I-is_- s \t MO-pag.nW-rr Es n |

-F.W0 WOrk 0MM

pV-. Wr1dig m

| Ii W,kclu l l l Impnomlll -| l l |4 l

U. .sk Soin - G n, K.-o -Freld Vitin e -Sooavr,o of fnrprnemsriorl | : l l l l

-Coos-rnO T,.-Wrr sAPts

-Al ardA2

F.-53 A - _- = - o . U 0 *AqunoulTunDnvr l l l l l l l l l l l 1 1 1 1 1 1|1 1 1 1~~~25_

-0-UOOei-o f* d.* * 1

-OurIdirgo . - U~~~~~~~~~~~~~~~~~~~MmIMMWoo . MIU.

World Brk - 21532 - 4.2 - CHART2 ZAIRE Technical AssistanceProject Kwango-Kwilu Integrated Agriculture DevelopmentCompany Organization Chart

Portfolio RuralDeveopmentl Department Deprtent

Imm__ - ___mm I ~ ~ ~ ~ a

| Managementand Regi.n.1 Finani Board of Director_ Economic Development|

Plann n Training and Adninistrati.e Applied Research E.tension and Financia Department epartment Department - Planning - Applied Research - Monitoring and Studies

Crop tumeAnimal | Aquacu Administrative nance Production Husbandry si Dwision

-Secretariat I Seto

- Technical Section I I Marketig d -Personnel Manage- R upplCdieSctio Lment Section | -Rural Credit 7~~~~~~~~~~~~~~~~~~~~~~~~~~~~-- - - L _ _- io

Ouua|ther Eventual rr Bulunqu | aIdn h Zonal Offices Zonal Office I W

Gu.gu-Katut.R.nch issiOfMisce ZAssciatons

Yiorld Bank- 21bSO0 *Other zonal offices will be established eventually inye.,r2 - 43-

ZAIRE TECHNICAL ASSISTANCE PROJECT CMAT/DIAGRAMM 3 KWANGO-KWILU INTEGRATED AGRICULTURAL AND LIVESTOCK DEVELOPMENT COMPANY AT FULL DEVELOPMENT

| FORTFOLIO ~~~~~~~~~~RURALI ~~~~~~~~~~~AGRICULTUREDEVELOPMENT1ANDI DEPARTMENT~~~~~~Ir DEPARTMENTI

REGIONAL ECONOMIC BOARD OF DIRECTORS - - - _-- - - … DEVELOPMENT ;COUNCI L

TI NAGEMENTH W ES E MANNREN M R AFINANC I MANA=GEMENT LCOMMITTEE|

MONITORING~~ ~ ~EN UPPLDEATETISHTMETADF ACA

EVALUATION _ PCULTURE WAREHOUSF SECRETARIAT DIV ISI ON DIV ISION

|KGATNGUTA-|| FESHI ZONAL | | MASI MANIMBA | F WULUNGUZONAL IDIOFA ZONAL OTHER ZONAL

|RANCH I I OFFICE | I ZONALOFFICE OFFICE OFFICE OFFICES I

DIV ISIONIPLANTATIONS COOPERATIVE JUMA LEVER DU MOUVEMENTOU AVANGA ONPV SOCIETIES | MISSION | MISSIO I ZAIRE ) I PRGRES POPULAIRE |World BanOFFICE - 44 -

ZAIRE

KWANGO KWILU TECHNICALASSISTANCE

List of DocumentsAvailable in the ImplementationVolume

ANNEXES

1 The Project Area ......

Table 1 Total Areas and Production of Main Crops Culti- vated in the Bulungu and Idiofa Zones ......

2 Mixed Farming Development .o.m......

Table 1 Model IA - Without Project...... Table 2 Model IB - Without Project e Table 3 Model IIA - With Project - Crops and Fish Pond After 10 years ...... Table 4 Model II A - With Project - Crops and Fish Pond After 10 years...... Table 5 Model IIB - With Project - Crops and Small Livestock - After 10 years.... Table 6 Model IIC - With Project - Crops and Large Livestock - After 10 years Table 7 Model IIIA _ With Project - Crop Production on Ridges and Fish Culture - After 10 years Table 8 Model IIIB - With Project - Crop Production on Ridges and Small Livestock - After 10 years. Table 9 Model IIIC - With Project - Crop Production on Ridges and Large Livestock - After 10 years. Table 10 Model IV - Crops and Large Livestock (Medium Farmers - fermiers) Full Development. Table 11 Herd Projection for Models IV (stableherd of 8 cows) and V (stable herd of 80 cows).

3 Existing Livestock Production Systemr

Table 1 Model VI - Herd Composition of 1000 head cattle Ranch at Gungu-Katutat Table 2 Model VI - 1000 Head Cattle Ranch at Gungu-Katuta InvestmentCostst Table 3 Model VI - 1000 Head Cattle Ranch at Gungu-Katuta Annual Operating Costs. Table 4 Model VII - Herd Projection for the Gungu-Katuta- Katenga Ranch on 60,000 ha. Table 5 Model VII - Breeding Ranch at Gungu-Katuta-Katenga on 60,000 ha- Annual Operating Costs. Table 6 Model VII - Breeding Ranch at Gungu-Katuta-Katenga on 60,000 ha - Investment Costs ...... - 45 - ANNEXES

4 Fish Production t

Table 1 Cost Benefit: Analysis of Increasing Stages of Intensification Table 2 Nutritional Value of Various Crops and Average Yields in Crude Protein, Fat and Carbohydrates in Zalre per unit area Table 3 Rivers and Tributaries in the Two Project Zones Table 4 List of Fish Species found in Rivers of Project Area . Table 5 Model I - Application of Green Manure only . Model 2 - Application of Green Manure and Cow Dung Model 3 - Application of Model 2 and Fish Food ... Table 6 eodels.. Models ... Models .

5 Table 1 Cost Estimates for Extension and Training - Capital and Operating Costs.

6 Agricultural Research.

Table 1 Cost Estimates for Applied Research

7 Marketing.

17 REPUBLICOF ZAIRE .CSIr C KWANGO-KWILU IiINTEGRATED AGRICULTURALDEVELOPMENT PROJECT

PAROJLTDC' 9C Vt!Z0PPELMENTAGROPASTORAZ INTEGRE -orIID P~EtTPLE S DU KWANGO-KWiILUZR

A / V 9 C M B E

T KH NE A\-

~~~~~~~~~~~~1~~~~~~~~~~~~~~~~~~~

- 214d dl~~~~~~~~~~~~~~~~~~~~~~-b

BPAr 5 -Z IR

o~~~~~~~~~~~~~~~~~~~~~~~~~~~~~N PAil

~~~~peojern~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~- Thoerorehdrt a0de4 AW

C >

L,eA'* di -Og. ;*em o"rfdetIn

ow-fe my0Cfr CqrCnoCborC L47CCC OC I 0 ICefior ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~n~ ~09 ~ ~ ~ ~ ~ ~ ~ ~~ NernCr,Cnor CCIp9O~~~~~~~~~~~roO Mt CO CC ~ '4 ia