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World Bank Document 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
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