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Document of The World Bank FOR OFFICIAL USE ONLYF Public Disclosure Authorized Report No. 4 2 6 9 -MAU STAFF APPRAISAL REPORT Public Disclosure Authorized ISLAMIC REPUBLIC OF MAURITANIA SMALL-SCALE IRRIGATION PROJECT Public Disclosure Authorized March 4, 1985 Public Disclosure Authorized Western Africa Projects Department Agriculture C This document has a restricted distribution and may be used by recipients only in the performance of their officiai duties. Its contents may not otherwise be disclosed without Worid Bank authorization. CURRENCY EQUIVALENTS Currency Unit: Ouguiya (UM) US$ 1.00: UM 80.00 l'm 1,000: US$ 12.50 WEIGHTS AND MEASURES 1 kilogram (kg) 2.20 pounds 1 metric ton (t) 0.98 long tons 1 hectare (ha) : 2.47 acres 1 kilometer (km) : 0.62 mile 1 millimeter (mm) 0.04 inches 1 ton/hectare (t/ha) : 890 pounds/acre ABBREVIATIONS CSA Commissariat à la Securité Alimentaire (Food Aid Commission) CCCE Caisse Centrale de Coopération Economique (French aid loan agencc y) CCL Critical Consumption Level FAC Fonds d'Aide et de Coopération (French aid grant agency) FAO/CP Food and Agriculture Organization/Bank Cooperative Program FED Fonds Européen de Développement (EEC aid grant agency) IFAD International Fund for Agricultural Development KfW Kreditanstalt fUr Wiederaufbau (German aid loan agency) MDR Ministre du Developpement Rural (Ministry of Rural Development) OMVS Organisation pour la Mise en Valeur du Fleuve Sénegal (Senegal Valley Development Authority) PPV Petit Périmètre Villageois (Small Irrigated Perimeter) SONADER Société Nationale pour le Développement Rural (National Rural Development Authority) SONIMEX Société Nationale d'Import-Export (State trading company) FISCAL YEAR January 1 to December 31 FOR OFFICIALUSE ONLY ISLAMIC REPUBLIC OF MAURITANIA SMALL-SCALE IRRIGATION PROJECT TABLE OF CONTENTS Page DOCUMENTS CONTAINED IN PROJECT FILE ............................. iii CREDIT AND PROJECT SUMMARY ..................... iv-v I. BACKGROUND................................................. 1 A. Project Background..................................... 1 B. The Rural Sector ....................................... 1 C. Sector Strategy and Issues............................. 2 II. SMALL-SCALE IRRIGATION .. 4 A. Village Perimeters..................................... 4 B. Past Developments and Present Situation ................ 5 C. SONADER ................................................ 6 III. THE PROJECT AREA ........................................... 10 A. Physical Features ...................................... 10 B. Socio-Economic Features ................................ il C. Institutions, Infrastructure and Services.............. 12 D. Land Use and Farm Income ............................... 13 IV. THE PROJECT................................................ 13 A. Objectives and Summary Description ..................... 13 B. Detailed Features ...................................... 15 C. Preparation of Final Designs ........................... 18 D. Execution of Project Works ............................. 18 E. Agricultural Development ............................... 19 F. Operation and Maintenance of Pumping Sets .............. 20 G. Organization and Management ............................ 21 H. Cost Estimates ......................................... 21 I. Financing .............................................. 22 J. Procurement............................................ 23 K. Disbursement ........................................... 24 L. Monitoring and Evaluation .............................. 25 M. Accounts and Audit ..................................... 26 This report is based on the findings of an appraisal mission to Mauritania in April/May 1982. Mission members included Carlos G. Moret (Leader), Thomas Bredero, Jean-Claude Fayd'Herbe and David Steeds (Bank) and Charles Tribèche (Consultant). Figures were checked by Jann Masterson. The report was typed by H.G. Tran and edited by Michèle Moriarty. This document has a restricteddistribution and may be used by recipients only in the performance of their officiai duties. Its contents may not otherwise be disclosed without World Bank authorization. - il - Page V. MARKETS, PRICES AND FINANCIAL ANALYSIS ..................... 26 A. Markets ................................................ 26 B. Prices ................................................. 27 C. Financial Implications for Beneficiaries and Cost Recovery ............................................ 28 D. Financial Implications for the Public Sector ........... 30 VI. BENEFITS AND JUSTIFICATION .31 A. Project Benefits.31 B. Economic Analysis .32 C. Risks.33 VII. ASSURANCES AND RECO COENDATION .. 34 ANNEXES 2-1 Data for the 1980/81 Season 2-2 SONADER Organization Chart 2-3 SONADER: Summary Financial Statement 3-1 Key Climatic Data 3-2 Irrigation and Pumping Requirements: Rainy Season 3-3 Irrigation and Pumping Requirements: Dry Season 4-1 Proposed Perimeters: Gourave Sector 4-2 Proposed Perimeters: Kaedi Sector 4-3 Vehicles and Equipment 4-4 Earthworks: Preliminary Quantities Estimate - Gouraye Sector 4-5 Earthworks: Preliminary Quantities Estimate - Kaedi Sector 4-6 Agricultural Inputs, Outputs and Pumping Requirements 4-7 Staff Requirements 4-8 Irrigation Development: Detailed Cost Estimates 4-9 Farming Inputs: Detailed Cost Estimates 4-10 Supporting Services: Detailed Cost Estimates 4-11 Projected Schedule of Expenditures 4-12 Projected Schedule of Disbursements of IDA Credit 5-1 Farm Budget Financial Data: By Crop 5-2 Farm Budget Financial Data: By Cropping Pattern 5-3 Farm Family Budgets 5-4 Rent and Cost Recovery Data and Indices 6 Summary of Economic Results MAP IBRD No. 16569: Location of Perimeters. - iii - ISLAMIC REPUBLIC OF MiAURITANIA SMALL-SCALE IRRIGATION PROJECT Documents Contained in the Project File A. Selected Reports and Studies on the Sector Code Ministère de l'Economie et des Finances: AI Quatrième Plan de Développement Economique et Social 1981-1985, Partie III, Chapitre VII, Développement Rural (72 pages). Situation Alimentaire 1981/82, Rapport multi-donateurs, A2 décembre 1981. B. Selected Reports and Studies Related to the Project Projet de Périmètres Irrigués Villageois, Rapport de B1 Préparation, FAO/Bank Cooperative Program, Report No. 41/81 MAU.5 of December 3, 1983. Rapport d'Activité de la Direction de la Mise en Valeur B2 et de la Production 1980-1981, SONADER, janvier 1982. Réponse à l'aide-mémoire de la mission de préparation, B3 SONADER, mars 1982. Règlement Intérieur du Croupement Coopératif. B4 C. Working Papers Etude du système de pompage. Ci Project Costs: Detailed Tables. C2 Farm Budgets and Incomes, and Project Economics. C3 - iv - ISLAMIC REPUBLIC OF MAURITANIA SMALL-SCALE IRRIGATION PROJECT CREDIT AND PROJECT SUMMARY Borrower: Islamic Republic of Mauritania Beneficiary: SONADER, the National Rural Development Agency Amount: SDR 7.7 million (US$7.5 million equivalent) Terms: Standard On-Lending Proceeds of the credit would be passed on to Terms: SONADER as a government grant. Project The project would provide for the construction and initial Description: operation of 75 small irrigation perimeters of 20-25 ha, totalling 1,600 ha, in the upstreamn zone of the Mauritanian bank of the Senegal River. It would provide: (a) pumping sets; (b) farming inputs; (c) services of eight Mauritanian professionals to provide agricultural extension, and pump maintenance and repair service; (d) housing and working facilities for these professionals; (e) service of two expatriate technical assistants to assist SONADER in supervising construction of the perimeters; and (f) vehicles and topographic/office equipment to strengthen SONADER's regional offices responsible for these perimeters. A special account would be established under the project to expedite disbursement. Benefits Annual incremental production of edible grain at full and Risks: development would be about 10,000 tons, double the country's present level of irrigated grain input. The project would significantly increase the income of 2,900 farm families. The measures designed to increase rent and cost recovery would eventually permit all existing and future perimeters to be financially independent. The risks are small: peasants are highly motivated and have proven their capacity to construct and manage their perimeters under the effective supervision of SONADER. Moreover, since each perimeter would be an independent unit, problems that might develop in one perimeter would not affect the project as a whole. -v - Estimated Costs: a/ Local Foreign Total …------ US$ million ----------- Perimeter Development 1.0 2.6 3.6 Inputs 0.0 0.5 0.5 Supporting Services 1.3 0.8 2.1 Total Baseline Costs 2.3 3.9 6.2 Contingencies - Physical 0.2 0.5 0.7 - Price 0.9 1.0 1.9 - Implementation delay 1.1 0.9 2.0 Subtotal 2.2 2.4 4.6 Total Project Costs 4.5 6.3 10.8 Financing Local Foreign Total ----------- US$ million ----------- IDA 3.1 4.4 7.5 IFAD: b/ - incremental expenditures 1.1 1.9 3.0 - non-incremental farming inputs - - 0.4 Government 0.3 - 0.3 Total 4.5 6.3 11.2 b/ Disbursement Schedule (IDA Credit) 1986 1987 1988 1989 1990 1991 1992 1993 1994 Annual 0.4 0.9 1.3 1.5 1.2 1.0 0.7 0.4 0.1 Cumulative 0.4 1.3 2.6 4.1 5.3 6.3 7.0 7.4 7.5 Rate of Return: 25% Map: IBRD No. 16569 Chart: SONADER ORGANIZATION CHART, World Bank 24028 a/ Net of taxes which would be waived. b/ Includes US$0.4 million of IFAD's contribution to SONADER's rehabilitation plan. ISLAMIC REPUBLIC OF MAURITANIA SMALL-SCALE IRRIGATION PROJECT I. BACKGROUND A. Introduction